"Instead of focusing on population,
environmentalists should be working with community leaders
and activists to build diverse movements to implement sustainable
development strategies. When broader reforms are developed,
population stabilization becomes just one strategy to build
sustainable and equitable societies. Other strategies would
promote race and gender equality, eradication of poverty,
empowerment of disenfranchised communities, corporate accountability,
reduced consumption, sustainable use of natural resources
and protection of the natural resources."
Santos Gomes as quoted in: Urban Ecology Number 4, 1997.
Santos Gomes is a Senior Research Associate at the Pacific
Institute {'or Studies in Development, Environment, and Security.
He serves on the National Population Committee of the Sierra
Club and the Board of the Political Ecology Group.
|
Frank Brunings has had 25 years of experience in the field of Planning
for Housing.
Frank hired on as part of the update of the 1982 Monterey County
General Plan; wrote the Greater Salinas Area Plan, which includes
the Rancho San Juan Area of Development Concentration; prepared
three Certified Monterey County Housing Elements; and was Monterey
County's first and only "Housing Coordinator." In this
position, Mr. Brunings was responsible for running the county's
Inclusionary Housing Program and developing housing policies and
programs. He now works for the Redevelopment Agency of Santa Cruz
County as Manager of Housing Programs and Projects. These "Notes
on Affordable Housing" have been taken from a talk given by
Frank Brunings on October 14, 2001.
COMPONENT 1:
MAKE JOB GROWTH A FACTOR
IN THE REGIONAL HOUSING ALLOCATION PROCESS
SOME OBSERVATIONS:
The current Regional housing needs allocation process needs repair
- the results don't make sense, for example:
|
Sand
City |
Soledad |
Population (2000) |
261 |
7,146 |
Housing units (2000) |
87 |
2534 |
Employment (2000) |
3,500 |
|
AMBAG Regional Housing Allocation (1992) |
|
|
Population/Housing Allocation ratio |
|
|
Jobs/Housing Allocation ratio |
|
|
Tax revenue per capita (2000) |
|
|
3,700
350 1191
1.34 .16
10 3.1
$7,222 $44
ß Growth in each jurisdiction should be measured by job as
well as population increases.
ß The equation for calculating the quantity of housing needed
in any jurisdiction should include jobs generated within the jurisdiction.
ß The housing prices should be commensurate with the affordability
levels as determined by wages.
ß Projected housing needs should be allocated to each jurisdiction
by housing prices or costs based on wage levels. HOW TO CHANGE THE
PROCESS FOR DISTRIBUTION
OF REGIONAL HOUSING NEEDSFIRST, A LITTLE BACKGROUND:
Government Code Section on Distribution of Regional Housing Needs
(My emphasis)
Govt. Code Section 65584 (a)
"The distribution of regional housing needs shall, based upon
available data, take into consideration market demand for housing,
employment opportunities, the availability of suitable sites and
public facilities, commuting patterns, type and tenure of housing
need, the loss of units contained in assisted housing developments,
as defined in paragraph (8) of subdivision (a) of Section 65583,
that changed to non-low-income use through mortgage prepayment subsidy
contract expirations, or termination of use restrictions, and the
housing needs of farmworkers. The distribution shall seek to reduce
the concentration of lower income households in cities or counties
that already have disproportionately high proportions of lower income
households. Based upon population projections produced by the Department
of Finance and regional population forecasts used in preparing regional
transportation plans, and in consultation with each council of governments,
the Department of Housing and Community Development shall determine
the regional share of the statewide housing need."
Government Code Section on improving the balance between employment
generating land use and residential land use in the (My emphasis)
Govt. Code Section 65890.5 (a)
The guidebook shall include the following: (1) Methodologies for
measuring the balance of jobs and housing. (2) Methodologies for
analysis of the projected needed housing supply to serve projected
employment growth. (3) Methodologies to encourage the balance of
jobs and housing. (4) Incentives which local, regional, and state
agencies may offer to the private sector to encourage developments
and design which will facilitate an improved balance between employment
generating land use and residential land use. (5) Methodologies
cities and counties may use to analyze trip generation and vehicle
miles traveled to and from employment centers.
(b) The guidebook shall seek to describe and evaluate the various
tools available to local, regional, and state governments to measure,
evaluate, and improve the balance of jobs and housing and to mitigate
the undesirable effects of any imbalance between jobs and housing.
The guidebook shall describe efforts by cities, counties, and regional
agencies to improve the balance of jobs and housing.
CHANGES NEEDED:
1. Sponsor and introduce legislation that would require a projection
for jobs by wage rates as part of calculation for distribution of
regional housing needs.
2. Connect State Govt. Code Section 65584 (a) on distribution of
regional housing needs with Govt. Code Section 65890 (5)(a) to require
jobs housing balance calculation as part of the housing demand estimate.
3. Deny Housing Element certification unless a jurisdiction can
provide adequate sites for projected housing demand generated by
job growth according to income based on wage rates.
A PROCESS FOR JOB-BASED CALCULATION OF HOUSING NEED:
Source: http://www.co.monterey.ca.us/gpu/reports/JBhousing92001-files/frame.htm
1. Job Projections by Major Economic Sector and Jurisdiction
2. Estimate Total Workers Per Household
3. Occupational Distribution Average Wages by Occupation
4. Allocate Workers to Households by Income Level for Each Jurisdiction
5. Estimate Dwelling Units Needed by Price Level for Each Jurisdiction
SOME MORE OBSERVATIONS:
Jurisdictions that cannot accommodate household demand based on
jobs and population may need to negotiate with other nearby jurisdictions
in order to relocate or transfer their housing need within a reasonable
commute shed as defined by amount of time traveled.
Existing state law allows the transfer of housing allocation between
jurisdictions and within a county and its jurisdictions providing
opportunities for reallocation. For example:
1. Govt. Code Section 65584 (5) (a)
"A city or county may transfer a percentage of its share of
the regional housing needs to another city or county, if all of
the following requirements are met.'"
2. Govt. Code Section 65584. (c) (2) (5)
"The council of governments or the department shall reduce
the share of regional housing needs of a county if all of the following
conditions are met.'"? The pressure jurisdictions receive from
a changed State Law to accommodate job based housing demand internally
may require giving incentives to nearby jurisdictions to accommodate
housing externally. For Example: recent tradeoffs between Salinas
and San Jose Re: Cisco Systems.
? Consider imposing a regional commercial/industrial impact or linkage
fee with funds collected and redistributed according to revenue
costs or benefits associated with zoning for residential, commercial
and industrial land uses - begin to induce some level of fiscal
neutrality into land use decisions.
COMPONENT 2:
USE ANNEXATIONS TO YIELD A LARGER
PERCENTAGE OF HOUSING AFFORDABILITY
SOME EXAMPLES:
ß Davis, California - 35% affordable upon annexation
ß Watsonville, California 50 % affordable upon annexation
ß Breckenridge Colorado - 80% affordable upon annexation
WHAT IS UP IN BRECKENRIDGE ?
The Following is a quote from: Breckenridge Town Council Meeting,
Tuesday, September, 26, 2000, Breckenridge Town Hall http://www.townofbreckenridge.com/cn-minutes)
(My emphasis)
"Mr. Hinton felt Mr. West had presented a compelling case that
Town benefit requirements had been met; he questioned the need to
extract "a pound of flesh ". Mr. Crispell felt the Town
should "raise the bar" when it came to annexation,' he
noted Breckenridge's appeal because of its open space and mountain
vistas and noted these probable second homeowners houses would not
contribute any social benefit to the Town (little community participation),
but merely add to traffic and put a greater strain on services.
General Council consensus was that an annexation should provide
a social benefit to the community"
The Following is a quote from: The Town of Breckenridge - Affordable
Housing Strategy (My emphasis)
Annexation Policy
"The annexation policies of the Town have been highly effective
in generating affordable housing. The policies used in the recent
past can be formalized, listing the minimum standards for future
annexations. The resources the Town brings to the annexation process
include:
ß Allowing greater densities via the transfer of development
rights within the Upper Blue Basin, including Town-owned sites
ß Deferring water tap fees
ß Waiving permit fees or other fees associated with the development
process
These resources can be used in the process to leverage the number
of affordable housing units to be constructed on the annexed sites.
A minimum of 80% of the dwelling units in a proposed annexation
should be developed as deed restricted, affordable housing. A maximum
of 20% of the units should be sold at market rates.
HOW TO USE ANNEXATIONS TO YIELD A LARGER PERCENTAGE
OF HOUSING AFFORDABILITY:
1. An urban growth boundaries determination should leave one direction
open for long-term expansion and growth and to take advantage of
creating housing affordability through annexations.
2. Direct City growth over farmland but toward mountains away from
prime farmlands.
3. Transfer the development rights and revenue streams from poorly
planned high density areas (East Salinas) toward affordable development
in annexed areas in order to relocate households and generate a
revenue source to pay for high density inner city properties (I'm
not 100% percent sure on this idea, I haven't run, or run into,
the numbers). In poorly planned high density areas demolish structures,
clean up toxics, improve infrastructure, assemble land, in-fill
with housing designed to build social capital, re-forest, set affordability
restrictions, provide pricing commensurate with wages.
4. Relocate residents of poorly planned high-density areas to affordable
developments in annexed areas to initiate a more cost efficient
urban in-fill process.
UNINTENDED CONSEQUENCE OF URBAN GROWTH BOUNDARIES IMPOSED WITHOUT
REQUIREMENTS FOR HOUSING AFFORDABILITY
The following are quotes from: A Line in the Land: Urban-growth
Boundaries, Smart Growth, and Housing Affordability Policy Study
No. 263 By Samuel R. Staley, Ph.D., Jefferson G. Edgens, Ph.D.,
and Gerard C.S.Mildner, Ph.D. November 1999 (http://www.rppi.org/ps277central.html)
(My emphasis)
"Growth boundaries also appear to be implemented without significant
attention to potential impacts on housing-price appreciation and
affordability, particularly for low-income households."
Growth Boundaries and Housing Affordability: The Case of Portland
"While considered by many as one of the most successful examples
of growth boundary implementation, the Portland case also reveals
many of the pitfalls and unintended consequences that can result
from their application. More specifically, the Portland experience
provides a useful perspective on how growth boundaries may start
with one purpose and then be transformed into a vehicle for achieving
new and sometimes unanticipated objectives. The potential impact
of a growth boundary on housing prices is also becoming clear in
Portland."
Growth versus Affordable Housing in Portland
"Metro and local-government officials have been quiet in discussing
the rise of housing prices in inner-city neighborhoods and their
gentrification by higher-income groups. Housing prices in inner-city
areas such as Southeast Portland, Northeast Portland, and North
Portland increased by 85 percent, 78 percent, and 103 percent, respectively
between 1990-95, while the suburban communities averaged 45 percent.
Inner-city gentrification, while a laudable planning goal, creates
a burden carried mainly by Portland's poor. As they are displaced
by higher-income families, poorer households are less able to find
better housing on the urban fringe and in suburban areas."
HOW HIGHER HOUSING AFFORDABILITY
REQUIREMENTS AFFECT LAND ECONOMICS
The following quotes are presented as answers to frequently asked
questions and are from: Local Government Initiatives for Affordable
Housing:/In Evaluation of Inclusionary Housing Programs in California.
By Seymour I. Schwartz and Robert A. Johnston, Environmental Quality
Series No. 35 Institute of Governmental Affairs and Institute of
Ecology, Kellog Public Service Research Program University of California,
Davis, 1981. (My emphasis)
Do higher affordability requirements raise the price of housing?
"In cases where the developer faces a loss of profit, he/she
will try to avoid this potential loss by raising the price of market-rate
units or by reducing the bid price for land to be developed In other
words, the developer will try to pass the cost of the subsidy forward
to the new home buyer or backward to the landowner. If the project
is already in progress, losses in profit cannot be passed back to
the landowner. However, in the longer term on subsequent land purchases
for development in the jurisdiction, we can expect prospective reductions
in profit to be partially passed back to the landowner in the form
of lower prices for the land."
How will landowners be affected by the lower prices for the land?
"Landowners who face a lower bid price for their land will
not sell if that price is inadequate to meet their future expectations.
If a developer is successful in passing back the potential loss
of profit in the form of reduced land prices, and landowners are
still willing to sell, the situation can be viewed as in the case
of the developers. The landowner will suffer reduced profits, but
if the price is large enough to induce a sale, we may infer that
normal profits are still being earned."
Won't higher affordability requirements put developers out of business?
"As long as returns are large enough to keep the developer's
resources employed in construction, this is evidence that he/she
must be earning a fair return. If the developer is faced with an
inadequate return, considering the risks involved, he/she will simply
move to some other location or employ his/her resources in a different
endeavor. Thus, the fact that construction activity does not appear
to decrease indicates that the program is not causing subnormal
developer returns."
What happens when the Developer can transfer the cost forward to
the buyer?
"If a prospective buyer of market-rate units buys at a higher
price after all, caused by the shining of the developer's cost (of
the "subsidy") forward, this means that the buyer's consumer's
surplus is reduced. Although the buyer is able to buy at a price
equal to or less than his/her willingness-to-pay (hence value placed
on the house), less money is available for other (less valued) items
of consumption. This is a distributional matter of concern to the
prospective buyer, and hence to the policymaker. Shifting costs
forward to market-rate housing also prices some buyers out of the
market in that jurisdiction. These prospective buyers will suffer
a loss of benefits (welfare) as a result of having to settle for
less desirable housing or a less desirable location than they would
have obtained otherwise. If the buyer who is priced out of a particular
house or jurisdiction is affluent, he/she may be able to obtain
a good quality substitute. In jurisdictions that do not have a highly
segmented market, the reduction in housing opportunity to relatively
affluent households could place pressure on the rental supply and
on lower- priced homes, and therefore affect less affluent households.
The distributional and political consequences will be different
in such a jurisdiction."
COMPONENT 3:
INFILL DEVELOPMENT: INVEST (in Fort Ord) AT THE FRONT END RECAPTURE
AT THE BACK END
In-fill, and adaptive reuse development is expensive. Here are just
a few of the reasons why:
ß Historical preservation
ß Changes to building code requirements
ß Demolition costs
ß Clean-up and disposal of any hazardous wastes, toxics
ß Infrastructure upgrades
A MODEL FOR A POTENTIAL IN-FILL INVESTMENT FUND
The following is a quote from: New Partnership Tackles Bay, Valley
Growth Questions, IRP Urges Better Jobs-Housing Coordination In
5 County Region, by William Fulton, California Planning and Development
Report, Vol. 15, No. 3, March 2000
"The most interesting idea to emerge from the IRP is the concept
of jobs housing "Incentive Zones" that would receive tax
and regulatory breaks in the same fashion as enterprise zones. The
partnership is asking the legislature to pass a bill permitting
the designation of 5 to ]0 such zones of various sizes scattered
around the region... The sites would be eligible for a slew of special
incentives, including the following.'
1. Delivery of all 100% of property tax revenue generated within
the zone to the city or county containing the zone rather than splitting
revenues among all taxing entities.
2. Streamlined environmental review within the zone under the California
Environmental Quality Act.
3. Priority for Low Income Housing Tax credits, funds from the state
infrastructure bank, and similar discretionary state funding sources.
5. Brownfield style loans for up-front planning and environmental
evaluation of the sites.
AN EXAMPLE OF WHERE A POTENTIAL IN-FILL
NVESTMENT FUND COULD BE USED
The Following is a quote from: City of Seaside Minutes Special Council
Meeting May 4, 1998 (bbs.ci.seaside.ca.us/seainfo/archive/) (My
emphasis)
Questions from Council
"Council Member Mancini asked if housing in the new development
areas would be affordable for Seaside residents. Mr. Shagrin replied.'
There are no particular development proposals before the City but
there is an expectation that whatever housing that is built at Hayes
Park will not be rental housing but owner-occupied. In general,
when housing is subject to affordability restrictions, a maximum
sales price is established for the units. That sales price is associated
with a monthly payment housing cost considered to be affordable
to people in a particular income category. The LDA does not currently
impose restrictions on sales prices or on who may buy new homes.
If the City decides to impose re-sale restrictions, it would be
easier to do so now, in the LDA. This is because it is easier for
the City to impose restrictions sooner, as the owner of the land,
than later, as issuer of land-use approvals, when there would be
legal limitations.
Council Members Amos stated that Seaside has already done enough
in terms of low-income housing and that she would like to give Seaside
residents the opportunity to move up without having to leave the
City.
In response to Mr. Choates' question, Mr. Shagrin commented that
Redevelopment Agencies, for example, are required to spend specified
amounts of tax increment monies on affordable housing for low- and
moderate-income households. He was not aware of any such requirements
imposed by FORA or any other kind of legislation on Hayes Park.
Developer Input
Danny Bakewell stated that the Kaufman & Broad-Bakewell Development
Team has done everything it had promised and more. It put up a deposit
allowing the City's costs to be deferred for hiring consultants
and to mitigate any expenses the City would have incurred on behalf
of its staff It has carried out assessments, surveys and other research.
This research proved to be invaluable as the Team assisted in City
negotiations with the Army, because the actual situation of the
land differed markedly from what the Army had claimed. There was
more asbestos and lead-based paint, for example, and the infrastructure
cannot be enhanced; it will have to be completely redone. There
are significantly more costs associated with this project than anticipated,
but the Team is still committed."
COMPONENT 4:
GO BEYOND AFFORDABILITY AND DESIGN NEW HOUSING TO ENCOURAGE DEVELOPMENT
OF SOCIAL CAPITAL AS A COMMUNITY RESOURCE
DEFINITION OF SOCIAL CAPITAL
The following are quotes from: Bowling Alone, by Robert Putnam,
2000
"In recent years social scientists have framed concerns about
the changing character of American society in terms of the concept
of "social capital." By analogy with notions of physical
capital and human capital - tools and training that enhance individual
productivity - the core idea of social capital theory is that social
networks have value. Just as a screw driver (physical capital) or
a college education (human capital) can increase productivity (both
individual and collective), so too social contacts affect the productivity
of individuals and groups."
"What is at stake is not merely warm cuddly feelings or frissons
of community pride. We shall review hard evidence that our schools
and neighborhoods don't work so well when community bonds slacken,
that our economy, our democracy, and even our health and happiness
depend on adequate stocks of social capital."
DESIGN FOR SOCIAL CAPITAL BY NON-PROFIT
AFFORDABLE HOUSING DEVELOPERS
The following is a quote from: Good Neighbors Affordable Family
Housing by Tom Jones, William Pettus, AIA, Michael Pyatok, FAIA,
1995
"As noted elsewhere, an individual's or household's inability
to afford housing is a combination of lack of earning capacity and
a speculative private market that forces up the price of housing
when people need it the most. The market responds well to those
who have high incomes; apartment rents or home prices meet their
income level or their willingness to pay. But a limited earning
capacity insures a struggle to meet housing expenses. Other services
required to help people maintain or increase their ability to work
are now being included by CDC's who traditionally supplied only
subsidized housing. These services include: child care to give parents
time to work or train themselves to improve their learning capacity;
child rearing classes to improve the next generation's chance of
avoiding the problems of poverty; educational services to encourage
prudent shopping, wise nutrition practices, and better management
of limited household finances; and counseling to help break dysfunctional
behavior patterns and top find jobs"
TYPES OF HOUSING AND RESIDENT SERVICES PROVIDED
BY NON-PROFIT HOUSING
ß Typical two-story town homes rental units at 15 units/acre
net with common open spaces.
ß On-site management
ß Permanent affordability
ß Defensible space
ß Community center facility used for:
ß Meetings, classrooms, game room, health screening, library,
polices substations, computer center, daycare and or childcare development
ß Classrooms: parenting, household budget, first time homebuyers,
ß English, after school tutorials, etc.
ß Game room: ping pong, pool, card games, air hockey, foosball,
etc.
ß Age differentiated recreation:
ß Soccer half field
ß Multipurpose recreation court (basket ball, tennis, volley
ball etc)
ß Basketball half or full court
ß Tot lots and play structures
ß Play ground and play structures
ß Community gardens, Edible landscaping, Outdoor furniture
|