Preserving Affordable Housing Near Transit
A Project of the Housing the Workforce Working Group
as Part of the Bay Area Regional Prosperity Plan
October 3rd, 2014
Non-Profit Housing Association of Northern California Conference
James Pappas, Housing Policy and Preservation Associate
The California Housing Partnership
Project Purpose
Land use and Transportation planning in California must now
be integrated in Sustainable Community Strategies that
demonstrate reductions in GHG emissions from auto use.
The Bay Area, like other regions of the state, is emphasizing
residential and job growth in Priority Development Areas
(PDAs) centered around transit to reduce GHG emissions.
The PDAs contain a significant portion of the existing housing
affordable to lower income households so preserving this
housing stock and preventing displacement are essential.
Priority Development Areas
San
Francisco
Oakland
Fremont
San Jose
• Centered around
present and future
transit
• Focus on established
urban and suburban
centers
• Support infill
development
• Eligible for additional
planning and
infrastructure funds to
facilitate growth
Preserving Affordable Housing Near Transit
Project Scope and Schedule
Regional Analysis (Months 1 - 3)
• Identify where there are concentrations of vulnerable affordable housing
stock in the Bay Area in relation to: existing and future transit system,
places most likely to see growth—the PDAs, and vulnerable
communities (Communities of Concern).
Local analysis and policy recommendations (Months 4 - 19)
• Work with local jurisdictions to create policy mechanisms to preserve
affordable housing in vulnerable locations. (San Jose, Fremont,
Oakland)
Preservation Toolkit (Months 19 - 21)
• Scale local findings and recommendations to regional scale, designed
as a guide for jurisdictions with varying capacity and preservation
needs.
Regional Analysis
Restricted Affordable Housing
Risk Factors
HUD Funded and Financed Properties:
• Expiration date of HUD Rental Assistance Contract
• Maturity of HUD subsidized mortgage, or
prepayment
LIHTC properties:
• Risk based on remaining years of regulatory use
agreements
Ownership Type:
• For-profit owners
• Small non-profits
6
Assessing the Bay Area’s Restricted
Affordable Housing
- 100,479 total affordable units in the
region in nearly 1250 properties
- 74,841 units with LIHTC
- 31,017 units with HUD Rental
Assistance
- 9,347 at-risk units in 128 properties the
vast majority belonging to small
nonprofits or for-profit companies
Source: HUD, TCAC, USDA
7
Existing Transit
(Bus and Rail)
• ~64,000
affordable housing
units near transit
• 64% of all
affordable units in
the region
• 10% are at-risk
(~6,500)
• 69% of all at-risk
units
Major New
Transit
Investments
• ~16,000
affordable housing
units
• 16% of all
affordable units in
the region
• 9% are at-risk
(~1,500)
• 16% of at-risk
units
Market Pressures
10
Local Preservation Analysis: 3 Cities
Project began with focus on 2 cities set to
receive major transit investments, San
Jose and Fremont, to look at preservation
need. Both will have new rail stations as
part of the BART to Silicon Valley project.
In addition, through the regional analysis,
Oakland, was selected as a third focus for
preservation analysis.
11
Methodology for Identifying
Preservation Priorities at the
Local Level Case Study :
San Jose
Risk Assessment of San Jose’s Affordable Units
• 169 total properties with 18,690 Units, ~15,000 LIHTC
and 3,600 HUD
• 11 at-risk properties are older, HUD funded properties
with rental assistance
• Of 6 small nonprofits with “at-risk” properties, outreach
revealed that nearly all are stable and plan to preserve
long term affordability
• All 5 at-risk for-profit owned properties are owned and/or
managed by the same company
13
Restricted Affordable Properties
hhh
in Relation to Transit
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San Jose Rent Control
• Rent Control (max. 8% Annual increase if built before 9/8/79)
• Rental Rights and Referrals Program (Housing Dept.)
• Code Enforcement
Geography
Rent Control
Properties
Near Transit
3,003
Future Transit
San Jose (all)
Rent Control
Units
Properties with
25 - 50 units
Properties with
> 50 units
24,962
125
16
269
2,289
10
1
4,851
40,577
211
32
Identifying Priority Preservation Neighborhoods
• Spatial Analysis:
• Restricted Affordable Housing
• Naturally Occurring Affordable Housing
• Transit and Transportation Investments and
Planning Efforts
• Demographics and Neighborhood Change
Housing Affordable to Households
Earning 50% of AMI or Less
PDAs in San Jose
Areas with Major Transit
Investments or Planning Focus
Areas with 50% or more
Renter Households
Gentrification
Areas with Neighborhood
Change 1990-2000
Areas Susceptible to
Gentrification
Area of Overlap: Priority
Preservation Area
Building a Preservation Toolkit
San Jose Existing and Proposed Affordable
Housing Supportive Policies
•
•
•
•
Rent control
Rental Rights and Referrals Program
Code Enforcement
Ongoing monitoring of Restricted Affordable Properties
and owner outreach
• Inclusionary Housing Policy currently being litigated
before California Supreme Court
• Housing Impact fee currently under study
San Jose Affordable Housing Supportive
Policies: Possible Additional Tools
• Increased rent control monitoring
• 1-for-1 replacement of rent controlled and restricted
affordable units in event of redevelopment
• Grants for tenant organizing and education
• Landlord education program
• Increased code enforcement
• Local Preservation Ordinance
• Dedicated Preservation Funding
• Condo Conversion limits especially in priority pres. areas
• Targeted Acquisition Strategy by Location & Building Type
• Subsidy in exchange for new or extended affordability
restrictions
• Land Value Recapture
Regional Preservation Toolkit could include….
• Methodology of how to identify key areas for
preservation focus- could help prioritize preservation
efforts and resources
• Examples of current local tools and how cities are
working to preserve subsidized and market rate housing
stock.
• Recommendations derived from local work as models for
other jurisdictions.
• Database of at-risk subsidized properties near existing
transit, future transit, in PDAs.
Thank you!
For more information contact us:
James Pappas, Housing Policy and Preservation Associate
California Housing Partnership Corporation (CHPC)
[email protected] (415) 433-6804 x 320
Elizabeth Wampler, Associate Initiative Officer
Great Communities Collaborative
of the San Francisco Foundation
[email protected] (415) 733-8573
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James Pappas - Non-Profit Housing Association of Northern California