affordable housing study session AWS
AFFORDABLE HOUSING STUDY SESSION February 7, 2017
City of Half Moon Bay City Council
THE PROBLEM‐DEFINED The Jobs/Housing Gap Between 2010‐2014: 54,500 new jobs were created in San Mateo County During the same period, only 2,100 new housing units were built San Mateo County has not produced as much housing as other Bay Area Counties 2
WHAT IS THE IMPACT? A 2016 poll of SMCO residents found housing costs as top problem facing the region 34% of respondents likely to leave the Bay Area within the next few years 62% of San Mateo County commuters cross County lines
In Half Moon Bay 72.2% of people drive alone to work 6,000 workers commute out to work
3
Consequence is longer commutes and traffic congestion
WHAT DOES IT TAKE?
Median income for a family of 4 in HMB is $103,255 Median Home Price in SMCO $1.3 million for a single family home $750,000 for a townhome/condo
Median Rent in SMCO 1 bedroom $2735 2 bedroom $3409
To purchase a home you will need: $205,965 in income
To rent a 1 bedroom you will need: $79,954 in income
To purchase a townhome/condo you will need: $115,670 in income
To rent a 2 bedroom you will need: $88,903 in income
Doesn’t include: down payment, credit score, taxes, insurance, maintenance and repairs
Doesn’t include: security deposit, credit score or positive rental history
4
WHO ARE WE?
16.7% work in professional or administrative field 10% of residents work in retail
18.4% work in the arts, entertainment and food service
5
19.2% work in education, health care and social services
HALF MOON BAY BY THE NUMBERS HALF MOON BAY AVERAGE HOUSEHOLD INCOME Earn $200,000 or more 24.4%
Earn up to $49,000 24% includes housekeepers, cashiers, caregivers, food service workers, hotel reservation clerks, social service workers, clerical workers
Earn $100,000‐ $149,000 20.1% includes public safety
6
Earns $50,000‐ includes teachers, $74,999 librarians, health care workers, park rangers, 13.2% planners, maintenance workers
37.2% of households can not afford to rent a 1 bedroom apartment today
WHAT DO WE HAVE NOW? Half‐Moon Bay Resources Lesley Gardens 63 units of affordable Senior Housing Waitlist closed Half Moon Village 160 units of affordable Senior Housing Waitlist closed Main Street Park 64 units of affordable Family Housing Waitlist closed Below Market Rate Housing Ordinance requires in‐lieu fees or affordable housing development for 10 or more units Affordable Housing Fund‐ $1.8 million 7
County‐wide Resources Moving to Work Vouchers 5 year rental subsidy program
Moonridge Neighborhood
HIP Housing Home Sharing Program
120 Affordable Housing Properties
SAN MATEO COUNTY RESOURCES Developing program to fund amnesty repairs
Fund non‐profits to help with housing repairs
Developing an ADU construction funding program Leading implementation of Homes for All initiative
Producing “coffee table book” for pre‐ approved ADU plans 8
AFFORDABLE HOUSING OPTIONS
9
AFFORDABLE HOUSING OPTIONS Create Affordable Housing ˃ Partner with affordable housing developer to create multi‐family affordable units ˃ Gain affordable housing units through inclusion of BMR units in market rate developments
Housing Preservation ˃ Preservation of “naturally” occurring affordable housing ˃ Rehabilitation assistance for low‐income home owners and low‐income renters
˃ Encourage Accessory Dwelling Units Who would this help? Low income families Middle Income earners Renters who are doubled up Fixed income home owners 10
Who would this help? Fixed income home owners Low income families and seniors Renters who could be displaced Middle Income earners
Encourage Affordable Housing Activities ˃ Address short term vacation rentals ˃ Adopt fees for a continuing revenue stream ˃ Update ordinances to support creation/preservation of housing stock
Who would this help? Low income families and seniors Renters who could be displaced Middle Income earners Renters who are doubled up
CREATE AFFORDABLE HOUSING
CREATE AFFORDABLE HOUSING Partner with Affordable Housing Developer City: Identify potential site(s) Obtain Site control
12
Begin Construction Close financing
City: Help with local financing
Pull Building Permits
Get Project Entitled
Apply for tax credits
Lease Units Manage Property
Estimated time to completion: 4 years
BUILD AFFORDABLE HOUSING What can City contribution of $1.8 million buy? Local subsidies to support 40‐80 units of affordable housing
Who would this serve? Households earning less than $73,800 (approx. 37% of income earners in HMB) Homeless
13
CHALLENGES TO BUILDING AFFORDABLE HOUSING
Water Connections
Community Support
Securing Entitlements and Financing 14
MAP OF CITY OWNED PARCELS ZONED FOR HOUSING
Currently there is only one City owned property zoned for residential housing
Beachwood Property 15
CREATE AFFORDABLE HOUSING
Conforms to community vision and neighborhood character Develop an affordable ADU program Create marketing plan Affordable Housing Funds could be used to administer program Program administration done in‐house with additional staffing 16
WHAT ARE THE BENEFITS ? Home owner increases income
Affordable housing distributed
Long term flexibility on property
17
Would increase affordable and market rate housing units
Allows for aging in place
Keeps community housed Good for the neighborhood
ACCESSORY DWELLING UNITS Encourage City offers pre‐approved plans for homeowners “Coffee Table Book” Incentivize Offer low cost loans or fee waivers if agree to deed restrict ADU Promote Market legalization program to encourage bringing sub standard units to code 18
HOUSING PRESERVATION
HOUSING PRESERVATION
Partner with affordable housing developer
Secure financing
Purchase Building Make Repairs and/or Recapitalize the Building 20
Tenants stay in place Units become deed restricted when tenants vacate
HOUSING PRESERVATION
21
HOUSING REHABILITATION
Repair sub‐standard housing for low income home owners
22
Convert illegal or sub‐ standard second units to habitable units
HOUSING REHAB PROGRAM
Allows fixed income residents to stay in their homes Decreases neighborhood blight Rehabbed units could be deed restricted Staff intensive to manage program or contract May not add affordable housing units
23
ENCOURAGE AFFORDABLE HOUSING ACTIVITIES
INTERNAL POLICY REVIEW
Review Parking Ordinances
Allow single family home conversion to duplexes 25
Short Term Vacation Rentals
Clarify BMR ordinance affordability term
Reduce number of housing units to trigger BMR ordinance
Adopt Housing Impact Fees
Landlord Outreach to encourage renting to Section 8 tenants
Encourage Home Sharing Opportunities
QUESTIONS
26
PROVIDE STAFF DIRECTION ON AREAS YOU’D LIKE TO FOCUS ON FOR RETREAT Create Affordable Housing ˃ Partner with affordable housing developer to create multi‐family affordable units
Housing Preservation ˃ Preservation of “naturally” occurring affordable housing
˃ Rehabilitation assistance ˃ Gain affordable housing units through for low‐income home owners and low‐income renters inclusion of BMR units in market rate developments ˃ Encourage Accessory Dwelling Units
27
Encourage Affordable Housing Activities ˃ Address short term vacation rentals ˃ Adopt fees for a continuing revenue stream ˃ Update ordinances to support creation/preservation of housing stock
THANK YOU
City of Half Moon Bay City Council
THE PROBLEM‐DEFINED The Jobs/Housing Gap Between 2010‐2014: 54,500 new jobs were created in San Mateo County During the same period, only 2,100 new housing units were built San Mateo County has not produced as much housing as other Bay Area Counties 2
WHAT IS THE IMPACT? A 2016 poll of SMCO residents found housing costs as top problem facing the region 34% of respondents likely to leave the Bay Area within the next few years 62% of San Mateo County commuters cross County lines
In Half Moon Bay 72.2% of people drive alone to work 6,000 workers commute out to work
3
Consequence is longer commutes and traffic congestion
WHAT DOES IT TAKE?
Median income for a family of 4 in HMB is $103,255 Median Home Price in SMCO $1.3 million for a single family home $750,000 for a townhome/condo
Median Rent in SMCO 1 bedroom $2735 2 bedroom $3409
To purchase a home you will need: $205,965 in income
To rent a 1 bedroom you will need: $79,954 in income
To purchase a townhome/condo you will need: $115,670 in income
To rent a 2 bedroom you will need: $88,903 in income
Doesn’t include: down payment, credit score, taxes, insurance, maintenance and repairs
Doesn’t include: security deposit, credit score or positive rental history
4
WHO ARE WE?
16.7% work in professional or administrative field 10% of residents work in retail
18.4% work in the arts, entertainment and food service
5
19.2% work in education, health care and social services
HALF MOON BAY BY THE NUMBERS HALF MOON BAY AVERAGE HOUSEHOLD INCOME Earn $200,000 or more 24.4%
Earn up to $49,000 24% includes housekeepers, cashiers, caregivers, food service workers, hotel reservation clerks, social service workers, clerical workers
Earn $100,000‐ $149,000 20.1% includes public safety
6
Earns $50,000‐ includes teachers, $74,999 librarians, health care workers, park rangers, 13.2% planners, maintenance workers
37.2% of households can not afford to rent a 1 bedroom apartment today
WHAT DO WE HAVE NOW? Half‐Moon Bay Resources Lesley Gardens 63 units of affordable Senior Housing Waitlist closed Half Moon Village 160 units of affordable Senior Housing Waitlist closed Main Street Park 64 units of affordable Family Housing Waitlist closed Below Market Rate Housing Ordinance requires in‐lieu fees or affordable housing development for 10 or more units Affordable Housing Fund‐ $1.8 million 7
County‐wide Resources Moving to Work Vouchers 5 year rental subsidy program
Moonridge Neighborhood
HIP Housing Home Sharing Program
120 Affordable Housing Properties
SAN MATEO COUNTY RESOURCES Developing program to fund amnesty repairs
Fund non‐profits to help with housing repairs
Developing an ADU construction funding program Leading implementation of Homes for All initiative
Producing “coffee table book” for pre‐ approved ADU plans 8
AFFORDABLE HOUSING OPTIONS
9
AFFORDABLE HOUSING OPTIONS Create Affordable Housing ˃ Partner with affordable housing developer to create multi‐family affordable units ˃ Gain affordable housing units through inclusion of BMR units in market rate developments
Housing Preservation ˃ Preservation of “naturally” occurring affordable housing ˃ Rehabilitation assistance for low‐income home owners and low‐income renters
˃ Encourage Accessory Dwelling Units Who would this help? Low income families Middle Income earners Renters who are doubled up Fixed income home owners 10
Who would this help? Fixed income home owners Low income families and seniors Renters who could be displaced Middle Income earners
Encourage Affordable Housing Activities ˃ Address short term vacation rentals ˃ Adopt fees for a continuing revenue stream ˃ Update ordinances to support creation/preservation of housing stock
Who would this help? Low income families and seniors Renters who could be displaced Middle Income earners Renters who are doubled up
CREATE AFFORDABLE HOUSING
CREATE AFFORDABLE HOUSING Partner with Affordable Housing Developer City: Identify potential site(s) Obtain Site control
12
Begin Construction Close financing
City: Help with local financing
Pull Building Permits
Get Project Entitled
Apply for tax credits
Lease Units Manage Property
Estimated time to completion: 4 years
BUILD AFFORDABLE HOUSING What can City contribution of $1.8 million buy? Local subsidies to support 40‐80 units of affordable housing
Who would this serve? Households earning less than $73,800 (approx. 37% of income earners in HMB) Homeless
13
CHALLENGES TO BUILDING AFFORDABLE HOUSING
Water Connections
Community Support
Securing Entitlements and Financing 14
MAP OF CITY OWNED PARCELS ZONED FOR HOUSING
Currently there is only one City owned property zoned for residential housing
Beachwood Property 15
CREATE AFFORDABLE HOUSING
Conforms to community vision and neighborhood character Develop an affordable ADU program Create marketing plan Affordable Housing Funds could be used to administer program Program administration done in‐house with additional staffing 16
WHAT ARE THE BENEFITS ? Home owner increases income
Affordable housing distributed
Long term flexibility on property
17
Would increase affordable and market rate housing units
Allows for aging in place
Keeps community housed Good for the neighborhood
ACCESSORY DWELLING UNITS Encourage City offers pre‐approved plans for homeowners “Coffee Table Book” Incentivize Offer low cost loans or fee waivers if agree to deed restrict ADU Promote Market legalization program to encourage bringing sub standard units to code 18
HOUSING PRESERVATION
HOUSING PRESERVATION
Partner with affordable housing developer
Secure financing
Purchase Building Make Repairs and/or Recapitalize the Building 20
Tenants stay in place Units become deed restricted when tenants vacate
HOUSING PRESERVATION
21
HOUSING REHABILITATION
Repair sub‐standard housing for low income home owners
22
Convert illegal or sub‐ standard second units to habitable units
HOUSING REHAB PROGRAM
Allows fixed income residents to stay in their homes Decreases neighborhood blight Rehabbed units could be deed restricted Staff intensive to manage program or contract May not add affordable housing units
23
ENCOURAGE AFFORDABLE HOUSING ACTIVITIES
INTERNAL POLICY REVIEW
Review Parking Ordinances
Allow single family home conversion to duplexes 25
Short Term Vacation Rentals
Clarify BMR ordinance affordability term
Reduce number of housing units to trigger BMR ordinance
Adopt Housing Impact Fees
Landlord Outreach to encourage renting to Section 8 tenants
Encourage Home Sharing Opportunities
QUESTIONS
26
PROVIDE STAFF DIRECTION ON AREAS YOU’D LIKE TO FOCUS ON FOR RETREAT Create Affordable Housing ˃ Partner with affordable housing developer to create multi‐family affordable units
Housing Preservation ˃ Preservation of “naturally” occurring affordable housing
˃ Rehabilitation assistance ˃ Gain affordable housing units through for low‐income home owners and low‐income renters inclusion of BMR units in market rate developments ˃ Encourage Accessory Dwelling Units
27
Encourage Affordable Housing Activities ˃ Address short term vacation rentals ˃ Adopt fees for a continuing revenue stream ˃ Update ordinances to support creation/preservation of housing stock
THANK YOU
