Transcript City of San Jose

The Obama Administration’s
Public Housing and Rental Assistance
Agenda
Santa Clara County Median Income in
2010
• Eligible Incomes Vary by Household Size
• Hypothetical Household of Four (Median Income
of $105,500):
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–
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Moderate-Income: $127,320 (up to 120% of Median)
Low-Income: $84,900 (up to 80% of Median)
Very Low-Income: $53,050 (up to 50% of Median)
Extremely Low Income $31,850 (30% of Median)
Local Housing Problems
• Housing is not affordable. Although median
incomes are high, people on fixed incomes and
earning minimum wage cannot afford decent
housing
• Lack of housing supply. Insufficient supply of all
housing, particularly affordable housing.
• Overcrowding is common. Two or three families
often squeeze into small apartments.
Housing problems (cont’d.)
• Some housing in need of repair.1960s and 1970s
housing is showing signs of disrepair and need for
rehabilitation
• Homelessness continues to be a problem. An
estimated 7,500* people are homeless in San
Jose.
• Section 8 Wait List has 55,000+ households. 500
vouchers available per year from turnover.
* Figure provided by City of San Jose
Least Affordable Metropolitan Statistical
Areas (MSAs)
MSA Housing Wage for Two Bedroom Rent
• San Jose, CA $35.02
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San Francisco, CA $34.13
Stamford-Norwalk, CT $28.71
Oakland, CA $27.31
Boston, MA-NH $27.29
Santa Cruz-Watsonville, CA $25.79
Nassau-Suffolk, NY $25.46
Westchester County, NY $24.88
Orange County, CA $23.46
Washington, DC-MD-VA $23.42
Statistics from National Low Income Housing Coalition (2003)
Housing Authority Programs
and Services
• Section 8 Rental Assistance Program
• Affordable Housing Development Using
Tax Credit Equity and Commercial Debt
• Property Management
• Community Services
Obama’s Public Housing Agenda
(Proposed FY 2011 Budget)
• Operating Fund close to last administration
• Capital Fund @ $2B with $30B in deferred
improvements
• No PBA vouchers for public housing (PH
Dispo)
• HOPE VI @ $0, with new program “Choice
Neighborhood Initiative” at $250M
What works and should be expanded:
Public Housing Disposition
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Transfers public ownership to non-profit entity.
Provides PBA vouchers that increases NOI.
Allows use of private equity and debt
Generates significant upfront capital to
rehabilitate
• Provides funds for services
Rincon Gardens
Rincon Senior Housing
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200 Unit Senior Housing
Built in 1981
Capital and Operating Funds Inadequate
Serious deterioration
Highly inefficient energy systems
Limited funds for services
Structural Beam Failing
Major Issues Prior to Rehab
• Communication with tenants, neighbors, public
officials about upcoming changes
• Coordination of real estate activities and tenant
eligibility process
• Careful handling of requirements by public and
private entities
• Clear tracking of expenses, timelines and key project
events
• Compliance with dozens of laws, rules and
regulations.
Substantial Rehabilitation Required
Housing as Economic Stimulus
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Construction Jobs
Material Suppliers
Professional Services
Development Fees for Local
Government
• Investment Community
Receives Market Returns
Housing = Jobs
Project created
400 jobs over a
2 year period.
Housing = Economic Activity
Results Expand Support for
Affordable Housing
Results Expand Support for
Affordable Housing
Results Expand Support for
Affordable Housing
Community Leadership’s
Positive Reaction
What needs to be done….
• Ambitious Housing Production Program
• Significant Effort to Improve Public
Housing
• Reform of HUD rental assistance programs
• Support Regulatory Relief
• Connect federal efforts on housing and
social services
Conclusion:
Affordable
Housing Can
Contribute to
Nation’s
Economic
Recovery