1. Housing Department Affordable Housing Workshop William Huang 2.7.11

2. Housing Department 2 Discussion Issues 1.Funding Priorities 2.Inclusionary Housing Modifications 3.Project Housed 4.Permanent Sources

3. Housing Department 3 Working Principles Affordable housing is a right Economic and ethnic diversity is critical to a dynamic city Affordable housing is a Pasadena priority Projects need to be geographically dispersed Resources are targeted to lowest income households Resources are highly leveraged Solutions should be innovative and effective Design and property management should be of the highest quality

4. Housing Department 4 Affordable Housing Programs Rental Assistance  Section 8  Shelter Plus Care  Supportive Housing Housing Production  Affordable Housing Development Assistance  Inclusionary Housing  First Time Homebuyer  Single Family Rehab Homeless Prevention & Rapid Re-Housing www.PasadenaHousingSearch.com

5. Housing Department #1 Funding Priorities

6. Housing Department 6 Housing Needs

7. Housing Department 7 Housing Production Affordable Housing Development  Completed Units  996 Rental, 204 Ownership  1,003 VL/L, 197 Mod  Pipeline Units  171 Rental, 40 Ownership  198 VL/L, 13 Mod

8. Housing Department 8 Housing Production Non-City Assisted Units  871 Rental Inclusionary & Density Bonus Units  308 Rental, 50 Ownership  189 VL/L, 169 Mod First Time Homebuyer Loans  145 Total Loans (1999 - present)

12. Housing Department 12 HOUSING PRODUCTION Affordable Housing Inventory

13. Housing Department 13 Arrival of Senior Bubble Senior Bubble In 2008, 3.2 million boomers became eligible for Social Security 7,000-10,000 boomers turn 65 everyday 17 more years of boomers to come LA County Elder Index Senior renter required income: $23,000 54% age 65+ (312,000 seniors) in LA Co. have less income Insight & UCLA Ctr. for Health Policy Research

14. Housing Department 14 Prelim Funding Priorities 1. Permanent Supportive Housing  Chronic Homeless Individuals  Formerly Homeless Families  At-Risk of Homeless Families & Individuals  Need defined by annual homeless count 2. Very Low and Low Income Units  Seniors  Families  Needs defined by RHNA numbers

15. Housing Department 15 Prelim Funding Priorities 3. Pipeline Projects  Predevelopment  Boadway Apts  Heritage Square  Nehemiah Court  Herkimer Arms  Douglas Oaks  Lamanda Park  Construction  Hudson Oaks  Parke Street  Washington Classics

16. Housing Department #2 Inclusionary Housing Modifications

17. Housing Department 17 Inclusionary Housing Basic Requirements  10 units or more  Rental requires 10% low and 5% mod  Ownership requires 15% mod Options  Build on or off site  Pay In Lieu Fee  Land Donation

18. Housing Department 18 Inclusionary Housing Inclusionary & Density Bonus Units  308 Rental, 50 Ownership  189 VL/L, 169 Mod In Lieu Fees Paid  9% Rental Projects  91% Ownership Projects

21. Housing Department 21 HOUSING PRODUCTION Inclusionary In-Lieu Fees

22. Housing Department 22 HOUSING PRODUCTION In-Lieu Fees w/ Leveraging

23. Housing Department 23 HOUSING PRODUCTION Inclusionary In-Lieu Fees

24. Housing Department 24 Inclusionary Preliminary Ideas Incentivize building units over in lieu fee option Restrict in lieu fees to production of low and very low units Adjust rental requirement to 15% low (i.e., eliminate 5% mod) Provide larger credit for very low units Increase inclusionary requirement in TOD’s to 20% Follow the impacts of the Palmer Case

25. Housing Department #3 Project Housed

26. Housing Department 26 Homeless Count 2011 Homeless Count was conducted on 1/26/11 2010 point-in-time count is 1,137 persons 20% decrease between 2005-2008, 17% increase between 2008-2010 57% of persons counted were homeless 1 year or more 28% are disabled

27. Housing Department 27 Project Housed Chronic Homeless Humane Economical  Emergency Rooms  Courts  Jails Vulnerability Index

28. Housing Department 28 Vulnerability Index Dr. Jim O’Connell, Healthcare for the Homeless, Boston, MA: “The painfully obvious lesson for me has been the futility of solving this complex social problem solely with new approaches to medical or mental health care…I dream of writing a prescription for an apartment, a studio, an SRO, or any safe housing program, good for one month, with 12 refills.”

29. Housing Department 29 Vulnerability Index Identify & house the most fragile persons  More than three hospitalizations in a year  More than three emergency room visits in the previous three months  Aged 60 or older  Cirrhosis of the liver  End-stage renal disease  History of frostbite, immersion foot, or hypothermia  HIV+/AIDS  Tri-morbidity: co-occurring psychiatric, substance abuse, and chronic medical condition

30. Housing Department 30 Vulnerability Index Partner with Common Ground  LA Skid Row  Santa Monica  San Diego  Hollywood

31. Housing Department 31 Project Housed Proposed Next Steps Identify nonprofit organization with capacity and funding to be program manager Utilize Vulnerability Index Find scattered sites housing similar to Shelter Plus Care Program  67 currently housed  83% in housing after 1 year Permanently house the top 15 - 20 persons

32. Housing Department #4 Permanent Sources

33. Housing Department 33 Anticipated Available Funding

34. Housing Department 34 Redevelopment Tax Increment Housing Set Aside Funds

35. Housing Department 35 Documentary Transfer Tax $744,238 in FY 2010 at $0.55 per $1,000 $3.86M would have been raised at LA rate of $4.50 32 estimated units (if $3.86M allocated to affordable housing) 2/3 rd voter approval

36. Housing Department 36 Permanent Funding Sources Commercial Linkage Fee  $0.64 - $1.06 /SF in West Hollywood  $1.69 - $2.11/SF in Sacramento  $4.79/SF in Santa Monica  $19.00 - $20.00/SF in San Francisco  If located in Santa Monica, IDS would have generated $766,400 for affordable housing