to lengthen or shorten the allotted times. East Palo Alto City Council Chambers is ADA compliant. Requests for disability related modifications or accommodations, aids or services may be made by a person with a disability to the City Clerk's office at (650) 853-3127 no less than 72 hours prior to the meeting as required by Section 202 of the Americans with Disabilities Act of 1990 and the federal rules and regulations adopted in implementation thereof.
This recommendation is primarily aligned with: Priority 3: Increaes Organizational Effectiveness and Efficiency Priority 6: Create a Healthy and Safe Community Background The City of East Palo Alto is working on an Affordable Housing Strategy to provide a
available. The key independent variables in the development of affordable housing are local political support, the availability of local gap financing, the availability of land parcels of sufficient size, and site control. The City has resources for affordable housing development. The City owns 965 Weeks St., a 2.58 acre parcel designated for affordable housing development. The City also has access to approximately 18 million in affordable housing gap financing, including the following sources included in Table 2 below:
a) Pros: Help households gain a foothold in ownership and build equity. High leverage per unit because of higher AMIs. b) Cons: Staff intensive to manage. Difficult to enforce resale restrictions. Can be expensive per unit. Do not assist low or very low-income households.
higher the affordability) the larger the local subsidy required. TCAC funds for the more valuable 9 LIHTC program are highly competitive. Projects can include new construction or rehabilitation. a) Pros: Rents are controlled at specific income levels. Skilled developers can efficiently produce large number of units. Minimal City staff resources required to manage and monitor. b) Cons: Some people may barely exceed the income limit restrictions and not qualify for the subsidized rental units. The funding structure of these types of projects are usually multi layered that may lead to multiple restrictions due to the sources of funding, which may limit the City s ability to define the qualification and occupancy criteria of the project.
the residents remain housed. Incomes typically range from 0-30 AMI. Product type can be Single Room Occupancies (SROs) or apartments. These projects are also eligible for TCAC financing. a) Pros: Provide a comprehensive and real solution for homelessness. b) Cons: Extremely expensive due to very high levels of subsidy and cost of support
households for permanent housing. Incomes typically range from 0-30 AMI. Typically apartments. a) Pros: Provide high level of subsidy and social services. Can incorporate supportive service elements of a permanent supportive housing for homeless but with defined timelines. b) Cons: Very expensive due high levels of subsidy and cost of support services. Not financially feasible without ongoing operating subsidies for social services. Potential higher neighborhood opposition to projects. General lack of affordable
housing location services and financial assistance for housing related expenses (e.g., rent arrears, ongoing rent assistance, moving costs). a) Pros: Provide housing quickly to displaced households to help prevent homelessness after displacement. Due to shorter tenancies, can assist multiple households at separate times in one unit. b) Cons: Expensive due high levels of subsidy. Might be difficult to prevent temporary re-housing from becoming permanent housing.
unless publicly subsidized. Technically not affordable because there is no income or affordability restriction. EPA Municipal Code requires that one of the units be occupied by the owner of the parcel. Often developed first for family or other non market consideration (housing for a child or in-law) a) Pros: Increases available housing units. Rents might not rise as quickly as the market because landlord might place a premium on having a good tenant due to proximity. Garage Conversions are relatively inexpensive. Allows primary homeowner to generate supplemental income. b) Cons: It is exceedingly complicated and expensive to build a legal 2nd Unit in one s back yard. High construction and rental costs per square foot due to limited construction economies of scale. The 21 Elements 2 nd
In July 18, 2017, the City Council awarded the contract to prepare the Affordable Housing Strategy to David Paul Rosen and Associates (DRA). There is a two steps process. First, the presentation of background data and key questions to the community and the City
Study session. Discrete sections of the Affordable Housing Strategy can proceed in tandem, in particular the City Council direction regarding 965 Weeks. Staff can work on a draft RFP while finalizing the Draft Affordable Housing Strategy.
outcomes and priorities. The topic of affordable housing crisis and its potential solutions is expansive. Staff have attempted to create a focused process that balances providing necessary granular information without becoming overwhelming with too many details. Staff and DRA seek Council guidance and priorities for the allocation of City affordable
specific resident populations. Staff have attempted to accomplish this by preparing a list of questions that will guide the City Council prioritization process and a potential draft strategy for discussion purposes only. The Affordable Housing Strategy (AFS) will reflect the City Council s priorities, and staff have prepared limited options and potential courses of action to focus the discussion and to provide a template of what a strategy might resemble. During the review process, it is likely that the community and/or City Council will raise additional questions.
Staff Recommendation: Pursue a large family (2 and 3 bedroom units) TCAC affordable rental project with at least 30 of the units at 30 AMI (ELI). It is exceedingly difficult to find an affordable 3-bedroom apartment. The housing market does not produce many 3
of the Homeless Analysis section of the Background Report in Attachment 2. Providing anti-displacement services (legal assistance, housing location assistance, and housing costs) is critical, but it is not enough. Housing referrals have limited value when there is simply no
5. What should the City do to encourage legal second units and bring second units without permits into compliance, if possible? Staff Recommendation: Staff recommend waiting until July/September to answer this question to consider and include the input of the 2 nd
c) Presentation on Anti Displacement Services from El Concilio d) Presentation on Code Enforcement Best Practices from San Mateo County Health Department. e) Presentation on Code Enforcement from Christopher Gale, former East Palo Alto Chief Building Official. f) Prepared a Draft Scope of Work (RFP) for Anti Displacement Assistance g) Presentation on Report from Displaced Tenants Workgroup h) Presentation from Josh Abrams, from 21 Elements on encouraging ADUs
to bring several garage conversions built without permits into compliance. The Building Division prepared a handout titled: Garage Conversion Submittal Requirement and had the group review it. As background, since 2014, the City has approved approximately 80 ADUs since the zoning
Staff Recommendation: Staff will return in July/September with the additional information requested. Staff request that additional information be related to producing actionable priorities. The topic of affordable housing is voluminous, and staff are attempting to distill the expansive topic into manageable sections that translate into actionable priorities and policies. Staff will provide the City Council with the information necessary to make an
Anti Displacement Services RV Safe Parking Program Drop In Center for Homeless (w/o housing) Emergency Shelter Transitional Housing Rapid Rehousing Permanent Supportive Housing Permanent Supportive Housing with Drop In Center for Homeless Single Room Occupancy
Without Low Income Housing Tax Credits, Highest Competitive Income Targeting, No Land Costs .................... 13 6. Estimated Sources and Uses, New Construction Rental Housing Prototypes with Low Income Housing Tax Credits, Highest Competitive Income Targeting, No Land Costs ....... 14
This study uses income limits as commonly defined by the Department of Housing and Urban Development (HUD), the Low Income Housing Tax Credit (LIHTC) Program, and most affordable housing assistance programs. These definitions as a percentage of Area Median Income (AMI) are as follows:
Because income definitions for affordable housing assistance programs vary by household size, calculation of affordable rents and sales prices requires the definition of occupancy standards (the number of persons per unit) for each unit size. For the purposes of this analysis, affordable housing cost renters is based on an occupancy standard of 1.5 persons per bedroom (1 person for studio units) or, for example, 3 persons in a two-bedroom unit. This definition is consistent with the Low Income Housing Tax Credit and tax-exempt bond programs, which are the most valuable leverage sources for affordable rental housing. For owner housing, affordable housing cost is calculated based on an occupancy standard of one person per bedroom plus one or, for example, 4 persons in a three-bedroom unit.
Affordable net rents are calculated by subtracting allowances for the utilities paid directly by the tenants from the gross rent (or renter affordable housing cost). For purposes of the gap analysis, we incorporated utility allowances effective November 1, 2017 from the Housing Authority of the County of San Mateo. d. Affordable Rents and Sales Prices
East Palo Alto s renter households have significantly lower incomes than its owner households. Over one-third of renter households in East Palo Alto had incomes at or below 30 of area median income, placing them in the extremely low income category, compared to only 12 of owner households. Nearly another third (31 ) of renter households are very low income, with incomes below 50 of AMI. Less than 17 of the City s renter households have incomes above 80 AMI, compared to 28 of owner households. (See Chart 3). 22.40 14.9 15.6 16.0 10.1 21.2
East Palo Alto has 0.23 jobs per employed resident the lowest jobs per employed resident ratio in the Bay Area. The City s tax base is shallow and lacks diversity. Both of these factors reflect East Palo Alto s limited economic development. East Palo Alto s poverty and uninsured rates are about three times higher than those of Palo Alto and Menlo Park. The unemployment rate in East Palo Alto is nearly double those of these other two cities, though it is still low at 5 .
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