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HomeMy WebLinkAbout2004-05-11 - AGENDA REPORTS - FAIR HOUSING (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT: Agenda Item: _ ID CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: May 11, 2004 Dennis Luppens SUBMISSION OF THE ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Administrative Services RECOMMENDED ACTION City Council approve the Assessment of Impediments to Fair Housing Choice (AI) as written. Authorize the Mayor to sign the AI for submission to the Department of Housing and Urban Development. BACKGROUND As a Community Development Block Grant (CDBG) entitlement city, Santa Clarita is required to write and submit an Assessment of the Impediments to Fair Housing Choice (AI) every five years. The Al includes a profile of the community, an assessment of fair housing practices, and recommendations to address any impediments identified. The attached Executive Summary outlines the information contained in the plan. The plan was developed using the most recent data available to the City and by taking input from the community and stake holders. A notice for public comment on the plan was published on April 5, 2004. The comment period is now closed, and staff received no comments. The plan was also provided to the Fair Housing Council of the San Fernando Valley for comments, and no comments were received. The plan is a good source of demographic information and will be made available on the City's web site after approval by City Council. ALTERNATIVE ACTIONS 1. Do not approve the Assessment of Impediments to Fair Housing Choice. 2. Other actions as approved by the City Council. FISCAL IMPACT No direct impact. ATTACHMENTS Executive Summary - Assessment of Impediments to Fair Housing Choice CITY OF SANTA CLARITA EXECUTIVE SUMMARY The City of Santa Clarita has prepared a new Analysis of Impediments to Fair Housing Choice (AI) as a requirement to receive federal Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The Al is a review of impediments to fair housing choice in the public and private sectors, and involves: ➢ A comprehensive review of Santa Clarita's laws, regulations, and administrative policies, procedures, and practices; ➢ An assessment of how those laws affect the location, availability, and accessibility of housing; and ➢ An assessment of conditions, both public and private, affecting fair housing choice. HUD defines fair housing as follows: Fair housing is a condition in which individuals of similar income levels in the same housing market have a like range of choice available to them regardless of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, or any other arbitrary factor. The Santa Clarita Al consists of the following major components: ➢ Community Profile ➢ Fair Housing Profile ➢ Review of Potential Impediments ➢ Conclusions and Recommendations Each of these sections is summarized below: A. COMMUNITY PROFILE ➢ Santa Clarita remains one of the fastest growing areas in Los Angeles County, with City projections anticipating a 2030 population of 226,000, an increase of 75,000 residents above 2000 levels. ➢ Approximately one-fifth of the City's population is now of Hispanic origin. On average, the City's Hispanic households have larger household sizes, ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE E-1 EXECUTIVE SUMMARY CITY OF SANTA CLARITA a higher incidence of renters, and lower median incomes. While Hispanic residents reside throughout the community, three primary areas of concentration exist, all of which coincide with low and moderate -income neighborhoods. ➢ As less of the City's new housing development is priced within levels affordable to young homebuyers (25 to 44 years), the proportion of young adults in the community has declined. In addition, the proportion of college age (20 to 24 years) students has also declined. Both these groups provide the foundation of Santa Clarita's growing workforce, and providing affordable rental and ownership opportunities are critical to allow them to remain in the community. ➢ The City's senior population (65+) has continued to grow, with nearly 45 percent of this group earning low to moderate incomes, and 40 percent having some type of disability. Providing a variety of housing options for this group will continue to be an important need in the community. ➢ The 2002 Homeless Advisory Task Force survey counted 175 homeless in Santa Clarita, and 1,600 adults and children at -risk of homelessness seeking services during a given week. The Task Force identified a transitional housing facility for families and singles as the top priority need for the area's homeless population. ➢ Severe household overcrowding, defined as greater than 1.5 persons per room, impacts nearly ten percent of renters in Santa Clarita. Two concentrations of severe rental overcrowding exist - East Newhall (within the Redevelopment Project Area) and Canyon Country near Whites Canyon Road. Each of these areas corresponds to areas of ethnic and low and moderate -income concentration. ➢ A substantial portion of large renter households and elderly renter households are low and moderate -income. Both the elderly and large renter households are particularly vulnerable to rent increases and other changes in living expenses. Many elderly are on fixed incomes, while large households often have difficulty finding affordable units that have an adequate number of bedrooms. ➢ While the young age of the City's housing stock contributes to overall good quality housing conditions, isolated substandard conditions nonetheless exist. A windshield housing condition survey identified the highest levels pf deterioration in the older neighborhoods of Newhall and Canyon Country. However, the types of code violations identified were EXECUTIVE SUMMARY ANALYSIS OF IMPEDIMENTS E-2 TO FAIR HOUSING CHOICE CITY OF SANTA CLARITA typically relatively minor, related to items such as peeling paint, weed and trash -filled yards, and inoperable vehicles. ➢ Over forty percent of the City's renters spend more than 30 percent of incomes on rent (State and Federal standards for overpayment), with twenty percent spending more than half their incomes. This level of overpayment is fairly comparable to County -wide averages, and indicates that despite overall higher incomes in Santa Clarita, high market rent levels still result in significant levels of overpayment. ➢ Rental rates have risen dramatically in Santa Clarita over the past several years, with current rents for two-bedroom apartments averaging around $1,200. Market rents are beyond the level affordable to most low and moderate -income (<80% MFI) households. ➢ The home sales market remains strong, with over 300 homes sold during September 2003, and the median sales price in most Santa Clarita communities falling between $350,000 to $400,000. The escalation in sales prices has made it difficult for moderate -income households utilize the City's $60,000 in second mortgage assistance as they are unable to qualify for first mortgage financing on even the lowest priced available units. ➢ Market rent levels are well above fair market rents (FMR) and the payment standards established by HACoLA, making it difficult for Section 8 tenants to find available units in Santa Clarita. Rising rents and low vacancy rates are providing a disincentive to landlords to participate in the program. In addition, the absence of a local Section 8 office serves as a barrier to both landlords and prospective Section 8 tenants. ➢ An over -concentration of residential care facilities can be a fair housing concern if that over -concentration is limited to a certain area of the City. Residential care facilities are generally dispersed throughout Santa Clarita, providing these types of supportive housing services in most areas of the community. ➢ The City is generally well served by public transit. Most major employers, community facilities, and assisted housing are located within close proximityto transit routes. B. FAIR HOUSING PROFILE ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE E-3 EXECUTIVE SUMMARY CITY OF SANTA CLARITA ➢ The City Administrative Services Department, Fair Housing Council of the San Fernando Valley (FHC), Southland Regional Association of Realtors, and Apartment Owner's Association conduct extensive fair housing education and outreach. However, FHC case studies document continued fair housing violations among both small and large property managers/owners in Santa Clarita, indicating the need for expanded fair housing training. ➢ Due to their specific housing needs, persons with disabilities are vulnerable to discrimination by landlords, who may not be familiar with the reasonable accommodation protections contained in the Fair Housing Act. Given the continued prevalence of discrimination complaints from disabled households, the FHC cites the need to identify accessible units in the City and to ensure landlords make reasonable accommodations. ➢ Issues concerning familial status also comprise a significant portion of fair housing complaints and cases in Santa Clarita. Additional outreach on the rights of families with children in rental housing is needed. C. REVIEW OF POTENTIAL IMPEDIMENTS Public Sector Impediments ➢ The Santa Clarita Unified Development Code currently requires a conditional use permit for community care facilities with fewer than six persons in multi -family zoning districts, providing a disincentive for the provision of such uses. ➢ While the City has utilized the density bonus ordinance to facilitate affordable housing, current ordinance requirements for preliminary project approvals, fiscal impact statements, and project proximities appear to conflict with state density bonus law. ➢ The City's recently adopted second unit ordinance establishes reasonable standards to facilitate the creation of second units, while ensuring neighborhood compatibility. However, requirements that the combined residential density maintain General Plan thresholds will significantly limit the number of parcels eligible to add a second unit. Private Sector Impediments ➢ The continued rise in subprime lending activity in Santa Clarita is a concern given the higher rates associated with these loans. This is also EXECUTIVE SUMMARY ANALYSIS OF IMPEDIMENTS E-4 TO FAIR HOUSING CHOICE CITY OF SANTA CLARITA an area of concern since predatory lending is considered a subset of the subprime market. ➢ The higher level of subprime lending activity among both African Americans and Hispanics is a concern, particularly if these households would normally be eligible for loans from prime lending institutions. ➢ The high level of withdrawn or incomplete applications among some major prime lenders active in Santa Clarita suggests a lack of education or confusion about the lending process. This may indicate a need for greater outreach and education, especially in minority and other underserved communities that may not be familiar with the lending process. ➢ Analysis of the reasons for denial of home purchase loans among Hispanics and African Americans indicates that unlike Whites and Asians, debt -to -income ratio is not a major factor in loan denial among these groups, further indicating the need for targeted homebuyer education. D. RECOMMENDATIONS FOR ADDRESSING IMPEDIMENTS The recommendations listed below are directed to the City, its Fair Housing Service Provider, lending institutions, and other service agencies that assist Santa Clarita residents. Education and Outreach Activities Action 1.1: In partnership with the FHC, continue multi -faceted fair housing outreach to Santa Clarita residents, real estate professionals, apartment owners/managers, bankers and advocacy groups. Expand media outreach to include the Santa Clarita Signal and the City's quarterly newsletter. Action 1.2: Conduct focused fair housing outreach to both larger property management companies active in the City, as well as to small property owners/landlords. Send fair housing literature to Section 8 landlords and managers of County bond -financed projects, and other property managers/owners utilizing FHC's database. Invite these entities to attend a free apartment manager training to be offered through FHC in the City, and advertise additional training available through the Apartment Association of Greater Los Angeles (AAGLA). Action 1.3: Conduct training at the Housing Authority of the County of Los Angeles (HACoLA) to educate staff involved with Section 8 and County bond - financed projects regarding fair housing issues and requirements. ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE E-5 EXECUTIVE SUMMARY W CITY OF SANTA CLARITA Action 1.4: Initiate discussions with HACol-A about the need for establishing monthly office hours in Santa Clarita to improve tenant and landlord access to Section 8. Coordinate with HACol-A in conducting focus groups with property owners and managers to discuss the benefits of participating in the Section 8 program. Action 1.5: Coordinate with the Southland Regional Association of Realtors on fair housing education and outreach to the local real estate community. Make periodic presentations to the Association to discuss current fair housing issues and trends in the community, as well as available City housing programs. Action 1.6: Collaborate with the Southland Regional Association of Realtors in sponsoring a "homebuyers workshop" to educate prospective purchasers on favorable home purchase tools. Action 1.7: In conjunction with lenders, the FHC, and other local consumer service agencies, provide education and outreach to Santa Clarita residents about the lending process. Educate residents about the lending market, including both prime and subprime markets. Use these workshops to raise awareness about the lending process, the dangers of predatory lending, and the resources available to residents. Action 1.8: Conduct targeted outreach to minority groups and the elderly in Santa Clarita to educate them about the lending process, especially about the risks of subprime lending. Solicit assistance from the County Community Service Center and the Santa Clarita Valley Committee on Aging. Action 1.9: Continue open representation on Santa Clarita's Commissions and Committees which address housing and related community development issues for residents to voice their concerns. These bodies include: Newhall Redevelopment Committee — Housing Subcommittee; Planning Commission; and the Parks, Recreation and Community Services Commission. Enforcement Activities Action 2.1: Continue to provide investigation and response to allegations of illegal housing discrimination through the FHC. For cases which can not be conciliated, refer to the Department of Fair Housing and Employment (DFEH), U.S. Department of Housing and Urban Development (HUD), small claims court, or to a private attorney, as warranted. EXECUTIVE SUMMARY ANALYSIS OF IMPEDIMENTS E-6 TO FAIR HOUSING CHOICE CITY OF SANTA CLARITA Action 2.2: Continue to review FHC quarterly discrimination reports to assess Santa Clarita trends and patterns over time, and tailor fair housing education and outreach accordingly. Action 2.3: Continue to provide general counseling and referrals over the phone regarding tenant -landlord issues through the Santa Clarita Administrative Services Department and the FHC. Action 2.4: Coordinate review of hate crime data on an annual basis between the Los Angeles County Sheriff's Department and the FHC to evaluate as a potential fair housing issue. Continue to promote appreciation of cultural diversity through activities of the Human Relations Forum, and provide coordinated response to victims of hate crimes. Monitoring Lending, Housing Providers, and Local Real Estate Practices Action 3.1: Contract with the FHC to conduct quarterly monitoring meetings at banks with Community Reinvestment Act (CRA) commitments. Meetings will focus on review of home mortgage lending activity, loan programs/products for underserved areas and populations, subprime lending, branching/acquisition issues, first time homebuyers and fair lending policies. Action 3.2: Continue to monitor the reasons for denial of home purchase loans among Hispanics and African Americans. As income is not currently the primary factor in loan denial among these groups, work through the FHC and California Reinvestment Committee (CRC) to urge lending institutions to provide additional education and outreach on the loan approval process, how to improve credit ratings, and available favorable home purchase tools. Action 3.3: Monitor the marketing and advertising efforts of subprime lenders to ensure they are not targeting minority or other underserved groups. Monitor advertising and outreach to ensure that it is balanced and informative. Action 3.4: Urge lending institutions to adopt fair housing guidelines that ensure, among other items, that those who are eligible to receive a prime loan based on their credit rating do so. Action 3.5: Continue to monitor real estate advertisements in the local newspapers for content and compliance with HUD fair housing guidelines. Action 3.6: Include non-discriminatory and fair housing language in all City and Redevelopment Agency affordable housing contracts and agreements. ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE E-7 EXECUTIVE SUMMARY CITY OF SANTA CLARITA Investigative Testing and Auditing Local Real Estate Markets Action 4.1: Support the FHC in conducting an accessibility audit of post - March 1991 rental housing, and, as necessary, develop recommendations to bring buildings into Fair Housing Act and California Title 24 compliance. Work with the FHC in developing a comprehensive inventory of accessible housing in Santa Clarita for use as a resource by interested parties. Action 4.2: As appropriate, conduct audits to evaluate apparent patterns of discrimination in Santa Clarita, such as issues related to familial status. To the extent such audits reveal significant discrimination, widely publicize the results to serve as a deterrent to other property owners and landlords. Land Use Policies to Affirmatively Further Fair Housing Action 5.1: Amend the Unified Development Code to permit community care facilities with six or fewer occupants by right in multi -family zoning districts (RM, RMH, RH). Action 5.2: Ensure that CUP (or MUP) conditions placed on community care facilities with seven or more occupants, transitional housing and emergency shelters are focused on neighborhood compatibility and ensuring proper management and licensing, and do not act to constrain the provision of such facilities. Action 5.3: Amend the City's density bonus ordinance to allow affordable housing density bonuses "by right", eliminating current requirements for preliminary approvals, fiscal impact statements, and project proximities to specified services. Promote among the development community through creation of an Affordable Hosing Brochure, and through advertisement with the Building Industry Association (BIA). Action 5.4: In conjunction with advertisement of the revised density bonus ordinance, highlight opportunities for developers to take advantage of available fee reductions/waivers in exchange for provision of affordable units. Action 5.5: Review the current requirement that second units not exceed the allowable density of the parcel in conjunction with the City's General Plan update, and revise as appropriate to facilitate the creation of second units while ensuring neighborhood compatibility. EXECUTIVE SUMMARY ANALYSIS OF IMPEDIMENTS E-8 TO FAIR HOUSING CHOICE CITY OF SANTA CLARITA Increasing Geographic Choice in Housing Action 6.1: Facilitate the provision of affordable housing throughout the community through the following Housing Element programs: ➢ Newhall Infill Sites Program ➢ Re -designation of Key Sites to Multi -family Development ➢ Mixed Use Overlay Along Designated Commercial Corridors Action 6.2: Provide Redevelopment Agency support of affordable housing through site assembly and financial assistance. Action 6.3: Continue to offer homebuyer assistance to low and moderate income households on a citywide basis, and participate in programs offered through outside agencies which can also assist middle income households. Coordinate with the Southland Regional Association of Realtors in conducting a homebuyers workshop in Santa Clarita. Action 6.4: Continue to implement a residential rehabilitation program as a key tool to sustaining neighborhoods. 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