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HomeMy WebLinkAboutChapter V Public Assisted Needs V. PUBLIC AND ASSISTED HOUSING NEEDS INTRODUCTION This section identifies the housing needs and characteristics of the local public housing authority (PHA) and other housing agencies and organizations that provide government assisted housing. A. PUBLIC HOUSING The Housing Authority of the County of Kern (HACK) operates under the responsibility of a seven- member Board of Commissioners appointed by the Kern County Board of Supervisors. Two of the seven commissioners must reside in public housing and are referred to as "Tenant Commissioners". HACK has about 108 employees, with an administrative structure headed by an Executive Director who reports to the Board of Commissioners. The mission of HACK is to improve the quality of life for low-income residents of Kern County by providing safe, affordable housing and by assisting residents to become self-sufficient and to achieve home ownership. 1. Inventory HACK owns and operates four public housing projects in Bakersfield, totaling 382 units. Two of the developments, Adelante Vista and Oro Vista, are located in southeast Bakersfield; one, Plaza Towers/Annex, is located in southwest Bakersfield; and the fourth, SunnyLane is located in the northeast. The Plaza Towers/Annex is a senior housing project with 49 handicapped- accessible units. The "family" demographic breakdown of the public housing tenants are as follows: 1) Adelante Vista - 50 unit family development with 46 families totaling 125 residents. There are 23 Hispanic families, 2 White families, 19 Black families, 1 Indian family, and 1 Asian family. 61 youth under the age of 18 reside in the complex; 2) Oro Vista - 92 unit family development with 87 families totaling 309 residents. There are 59 Hispanic families,S White families, 21 Black families, 1 Indian family, and 1 Asian family. 61 youth under the age of 18 reside in the complex; 3) Plaza Towers/Annex - Plaza Towers is a 118 senior and disabled development with 114 families totaling 120 residents. There are 30 Hispanic families, 58 White families, 24 Black families, 1 Indian family, and 1 Asian family. In the 82 unit senior and disabled (Annex) development there are 17 Hispanic families, 47 White families, 14 Black families, 1 Indian family and 3 Asian families. No youth under the age of 18 reside in the complex; and 4) Sunny Lane Village is a 40 unit elderly/disabled development with 40 tenants (all single person families). No youth under the age of 18. 20 Hispanic families, 19 White families, and 1 Asian family. Utilizing grants that allow for the improvement of the four PHA developments in the City of Adelante Vista Major rehab required for street only Bakersfield, HACK has Oro Vista Moderate rehab required for 92 units systematically rehabilitated its Plaza Towers Moderate rehab required for 118 units housing stock. At the present Plaza Towers Annex Moderate rehab required for 82 units time, housing conditions needs for these projects are reflected in the table. Public Rehabilitation Needs 2. Income Level of Families Served All families served under the Public Housing program must have incomes below 50% of the area median income for their family size. Effective with the housing law from October 1998, at least 40% of the new families selected for the public housing units must be at or below 30% of the area median income. City of Bakersfield Consolidated Plan 2010 V-1 May 2005 3. Waiting List for Public Housing As of August 2004, the waiting list for conventional low-income public housing consisted of approximately 3,374 households. The applicant households reflect a racial/ethnic distribution which has shifted significantly from the racial/ethnic distribution for low-income households (50% or less MFI) found in the 1990 census. The distribution for the current public housing waiting list is 27% Black, 42% Hispanic, 28% White, and 3% Other (Asians and Native Americans). Among low-income households in 1990, the distribution was 19% Black, 22% Hispanic, 55% White, and 4% "Other" including Asians and Native Americans. As of August 2004, the presence of Black and Hispanic families has substantially increased in public housing since 1990 (about 8% increase for Blacks and 22% for Hispanic). The table below reflects the Public Housing waiting list by bedroom size. As of August 2004, family and disability status was 76% family households (2,583), 3% elderly (105), and 21 % disabled/handicapped (686). 1 1,393 1,153 721 104 1 0 1 I Total I 3,374 I As of August 2004 .333 41 34 21 3 .333 0 .333 I 100% The waiting lists for public housing reflect a pent- up demand for small (0 to 2 bedrooms) family units predominantly by low-income Hispanic and Black families. These statistics substantiates the affordable housing needs reflected in the Housing Market Analysis and Needs Assessment chapter of the ConPlan. Bakersfield Public Housing Waiting List b Bedroom Size 4. Resident Involvement with Management HACK pursues various activities to encourage residents to become more involved with management. These activities include: meetings with residents regarding modernization needs and Comprehensive Grants plans; HACK facilitated Neighborhood watch groups; two Tenant Commissioners on the HACK Board of Commissioners; and Resident Advisory Board to advise the Executive Director on resident concerns and issues. Regarding the Resident Advisory Board, it is a jurisdiction-wide forum to assist HACK in sharing information about the agency's plans. The board is comprised of individuals who reflect and represent the residents assisted by HACK and is chaired by the Executive Director. The main role of the Board is to make recommendations in the development of its Agency Plan and any amendments to the Plan. HACK also seeks the Board's input regarding programming modifications and policy actions. The Board serves as a forum for sharing information regarding participants to voice their needs in order for their concerns to be addressed during the planning process. HACK gains essential information regarding improvements that need to be made to programs, policies, and development sites and to meet resident's self-sufficiency needs. There is no fixed tenure for service on the Board. Members serve in a voluntary capacity and are selected based on resident recommendations. Participants in both the Low Income Public Housing and Section 8 Housing Choice Voucher programs are selected to reflect and represent the residents assisted by HACK. Board members also represent all geographic areas of the County of Kern. HACK also sponsors various activities to encourage homeownership and self-sufficiency. These activities are described below. City of Bakersfield Consolidated Plan 2010 V-2 May 2005 5. Public Housing Conversions and Homeownership In 1994 HACK was awarded a Homeownership Opportunities for People Everywhere (HOPE) grant from HUD to convert 184 rental units of public housing at the Oro Vista development in the City of Bakersfield to homes for sale to the residents. The grant covered homeownership training, some structure and site improvements, and social services to assist residents to increase their income and become self-sufficient. Due to unforeseen project delays, the proposed conversion to homeownership was revised to include only 84 units at the Oro Vista development. The entire project, including replacement housing, was completed in 2004. Rental housing conversion to homeownership is still a priority. Additionally, HACK has earmarked a cluster of Section 8 vouchers for use by very low income renters for homeownership. This allows renters to use their vouchers to debt service a home mortgage. Voucher homeownership for HACK tenants is a priority. Lastly, HACK has dedicated staff to assist residents in their quest for self-sufficiency in job readiness, family support, parenting and educational opportunities. Resident social services for HACK tenants is a priority. 6. Assessment of Potential Inventory Loss HACK lost 92 units from the public housing inventory in Bakersfield the past two years. Four units were demolished and 88 units were sold to PHA tenants. HACK has already received 92 Section 8 certificates to replace these lost units. Because of a pending change in the Section 8 program to a Flexible Voucher program, there has been a periodic decrease in funding for HACK Section 8 operations. 7. PHA Disability Needs Assessment Each PHA is required to assess its rehabilitation needs and the need to address requirements of the American with Disabilities Act (ADA) as they pertain to public housing (Section 504). HACK has completed a Section 504 assessment of its public housing stock. The table below summarizes the number and type of Section 504 units in each public housing project. HACK has a designated Section 504 officer that periodically reviews units for Section 504 compliance. As of August 2004, there are no outstanding Section 504 concerns. All public housing developments have adequate and suitable handicap accessible units. B. ASSISTED HOUSING PROJECTS 1. Inventory The table on page 6 of this section identifies the City's assisted rental housing stock including housing assisted by various government assistance programs. Of the total 1,512 assisted units in Bakersfield, there are 540 HUD-assisted units consisting of Section 202 elderly and other HUD subsidized projects, and 972 units provided through State and local housing programs. The table tabulates the assisted units by size of unit. (Note: The following tables are not exhaustive nor do they purport to reflect all of the assisted rental housing stock. These tables will be updated as additional assisted rental housing information becomes available.) Seventeen of the total 27 public and assisted projects, approximately 63%, are located outside of census blocks with more than 51% low and moderate income population. 2. HUD-Assisted Housing Units In the City of Bakersfield, there are 14 HUD-assisted rental projects containing a total of 1,512 units. Family units account for 333 units and 10 projects. The three remaining projects, Joshua Tree Apartments, St. Johns Manor, and Lowell’s Senior Housing contain a total of 179 elderly units and/or SRO. These projects are subject to the provisions of three City of Bakersfield Consolidated Plan 2010 V-3 May 2005 different HUD programs which are described below. Nine of the 14 HUD-assisted projects also maintain Section 8 rental assistance, assisting a total of 398 units in these 9 projects. HUD Section 202: Section 202 provides loans to private nonprofit organizations for the construction or rehabilitation of rental or cooperative housing for elderly or disabled persons. Section 8 rental assistance is typically used in conjunction with a Section 202 loan to subsidize the rent for the elderly or disabled tenants. St. John's Manor and the newly constructed Lowell Place are examples of HUD Section 202 elderly housing projects, with the low-income use locked-in for the full 40-year mortgage term through 2025 and 2044, respectively. While the Section 8 contract will expire prior to the termination of the mortgage term, the long-term affordability of these units is fairly secure as they are owned by non-profit entities. HUD Section 221 (d)(4): Under this program, mortgages for the construction or substantial rehabilitation of multi-family rental or cooperative housing were insured by HUD. Developer of a Section 221 (d)(4) project obtains financing from a private lender but HUD insures the mortgage so that if the project goes into default, HUD assumes the loss. After the introduction of Section 236, no new Section 221 (d)(4) projects have been built. Five projects are assisted under the HUD Section 221 (d)(4) program combined with Section 8 contracts. Projects financed under the Section 221 (d)(4) program alone have no binding income use restrictions. However, affordability for these projects are controlled by the Section 8 contracts which are subject to annual renewals and rely on continued funding availability from HUD. HUD Section 2360)(1): This HUD program subsidizes the building of private rental or cooperative housing. Under this program, private developers obtain financing from private lenders and HUD subsidizes the interest of the loans. In exchange for preferential financing, the projects must be deed-restricted for low-income use for the 40-year term of the mortgage. However, the project owners may prepay the balance of the loans after 20 years in order to opt out of any affordability controls. Two projects with a total of 36 units are governed by 40-year HUD Section 2360)(1) loans, which have a 20-year prepayment option. Only the 20 units of the Villa San Dimas have a Section 8 contract that has an annual renewal. HACK received 24 additional Section 8 vouchers to provide continued assistance to the affected households when the owners of the Royal Palms Apartments, 1001 W. Columbus, opted out of the program. 3. Other Assisted Rental Housing Units HACK formed two non-profits for the purpose of providing affordable housing, Kern Affordable Housing, Inc. (KAHI) and Golden Empire Affordable Housing, Inc. (GEAHI). KAHI is a single purpose nonprofit that has acquired two HUD 236 properties within the City of Bakersfield at risk of conversion to market-rate: 1) Park Real Apartments - 16 units; and 2) Villa San Dimas - 20 units. Acquisition of these projects by KAHI will ensure units maintain their affordable housing status for the next 30 years. GEAHI operates as a housing non-profit in the Greater Bakersfield area. Under the State of California Tax Credit Allocation Program, GEAHI completed multiple multi-family and senior housing projects including the Park Place Project, and Auburn Heights project. In addition, GEAHI has also acquired the Village at East Hills and the Village at Lakeside as City of Bakersfield Consolidated Plan 2010 V-4 May 2005 rehabilitation projects using federal tax credits and Fannie Mae financed bonds. The latter projects provide an additional 394 affordable family units in Bakersfield. Other assisted units in Bakersfield include the 78-unit Bakersfield Family Apartments assisted under the Low Income Housing Tax Credit program and the previously completed single-room occupancy (SRO) project, the 90-unit(+) Green Gardens. Funding for the Tegeler House was provided in large part by the State Department of Housing and Community Development with major assistance from the City's Economic and Community Development Department and the Bakersfield Redevelopment Agency (RDA). The Shelter Plus Care (S+C) Program provides supportive permanent housing in single room occupancy units for persons who are suffering from alcohol abuse, substance abuse, mental illness, a combination of mental illness and substance abuse, and diseases of AIDS. S+C funds are being used to subsidize permanent housing costs for qualified disabled homeless individuals as in the 90-unit (+) Green Gardens complex. See the map at the end of this Section for a spatial description of government assisted sites within the City. Assisted Rental Housing Projects - Bakersfield Joshua Tree Apartments - 4948 Buckley Way K Street Apartments -2320 K Street Ming Gardens -6301 Ming Avenue Panorama Park Apartments - 401 West Columbus Park Real Apartments - 414 Real Road South Real Gardens - 1830 Brundage Lane St. Johns Manor - 900 4th Street Summerfield Place - 6300 Summerfield Drive Sundance Apartments - 6000 White Lane Villa San Dimas - 601 36th Street Lowells Senior Housing - 500 R Street California Ave Senior Housing - M and N Street Auburn Heights - 7000 Auburn Street Park Place Senior Housing - 2250 R Street Bakersfield Family Apartments - 710 Brundage P Street Family Apartments - 22 P Street Canyon Hills Senior Housing - 6701 Auburn Green Gardens Apartments - 2300 South Union Tegeler House - 1908 H Street Village at Lakeside - 1718 Panama Lane Coventry Place Apartments - 3101 Coventry Place 20 Disabled HUD Section 202/811: Section 8 12 Family 207/223(f) 75 Family HUD Section 221 (d)(4): Section 8 66 Family HUD Section 221 (d)(4): Section 8 16 Family HUD Section 2360)(1) 20 Family HUD Section 221 (d)(4): Section 8 79 Elderly/Disabled HUD Section 202: Section 8 18 Family HUD Section 221 (d)(4): Section 8 60 Family HUD Section 221 (d)(4): Section 8 20 Family HUD Section 2360)(1): Section 8 80 Senior HUD Section 202 180 Senior Capital Vision Equities: LlHTC 160 Family LlHTC 80 Senior LlHTC 78 Family LlHTC 21 Family LlHTC 74 Senior LlHTC 90 SRO Shelter Plus Care 53 SRO Shelter Plus Care 136 Family LlHTC 88 Family LlHTC 4. At-Risk Rental Units Assisted housing projects can be at-risk of conversion to market rate housing through different types of action - expiration of use restrictions, prepayment of the HUD mortgage loan, or opting out of the Section 8 contract. Two projects shown in the table are assisted under the Section 2360)(1) projects. Low- income use restrictions are placed on projects assisted under this program for the 40-year mortgage term. However, the owners have the option to prepay the remaining mortgage at the end of the first 20 years. In addition, the Wood Lane Apartments maintain Section 8 rental assistance contracts which are subject to annual renewal. City of Bakersfield Consolidated Plan 2010 V-5 May 2005 Five projects have FHA-insured mortgages under the Section 221(d)(4) program. These projects have no binding use restrictions. The affordability of these projects is governed by the Section 8 contracts At Risk Status of Assisted Projects maintained on the projects, which Housing Earliest Date Eligible Rent/FMR are due to expire during the time Development for Conversion Ratio frame of this ConPlan. Joshua Tree N/A 4/30/15 109% K Street N/A N/A St. John’s Manor is an example Ming Gardens N/A 12/21/04 114% of Section 202/811 housing Panorama Park N/A 2/7/05 85% project for seniors and the Park Real N/A N/A disabled. This project is non-profit South Real Gardens N/A 6/29/04* 110% owned and must maintain a t. Johns Manor N/A 10/1/04169% S permanent affordable housing Summerfield Place N/A 11/20/05118% status. However, the Section 8 Sundance N/A 5/6/05 116% contract associated with this Villa San Dimas N/A 12/10/04 110% project is due to expire within the Lowell Senior Housing N/AN/A time frame of this ConPlan. Coventry Place1/21/02*N/A Cottonwood Gardens, Park Place Senior Housing and California Avenue Senior Housing are projects funded with Low Income Housing Tax Credits (LIHTC). Low-income use restriction will expire at various times. 5.Conversion Potential Project-Based Section 8 Contracts: Due to the uncertain future of the Section 8 program at the federal funding level, HUD considers projects assisted with Section 8 contracts as at- risk of conversion to market rate. The Multi-family Assisted Housing Reform and Affordability Act of 1997 addresses expiring Section 8 contracts. This act provides authority to HUD to operate a “mark-to-market” program to reduce over-subsidized Section 8 contracts, restructure project financing, and provide funds for rehabilitation needs. This bill also includes tax legislation to ensure that adverse tax consequences do not deter owners from participating in the program. In exchange for favorable tax treatment, owners would preserve units at rents affordable to low and moderate income households. Eligible projects include FHA-insured projects receiving Section 8 project-based assistance for some or all units, where rents exceed fair market rents. As shown in the table above, seven of the projects shown with Section 8 contracts have rent-to-FMR ratios above 100%, making these projects eligible to participate in the mark-to-market program. Prepayment-Eligible Projects: Prepayment of Section 236 loans was regulated by the Low Income Housing Preservation and Resident Homeownership Act (LIHPRHA). LIHPRHA offered additional financial incentives for property owners in exchange for an extended commitment to maintaining the projects as affordable housing. However, LIHPRHA ended in 1996, and property owners can now prepay at any time once the project is eligible for the 20-year prepayment option. The Table also shows the date when the prepayment option first becomes available for each Section 236 project. Under HUD regulations, the property owners are required to provide a six-month notice to tenants prior to opting out of the low-income use restrictions. The 1998 California legislature passed AB 1701, requiring a nine-month notice to tenants. City of Bakersfield Consolidated Plan 2010 V-6 May 2005 C. SECTION 8 RENTAL ASSISTANCE 1. Households Assisted HACK administers the tenant-based Section 8 Housing Choice Voucher programs for the City of Bakersfield. Under this Rent Subsidy program (project and tenant based), combined rent and a utility allowance are guaranteed not to exceed 30% of the tenant's monthly income and rent and utilities for the unit must conform to a HUD-mandated Fair Market Rent (FMR) schedule for that particular unit size and geographical area, and the unit must meet HUD Housing Quality Standards (HQS). Under the Rent Subsidy program, Section 8 tenants cannot be cost burdened and can only live in shelter that is not considered generally substandard (meets HQS). Under the voucher program, the rental subsidy is based on the difference between a payment standard that is determined by HACK and 30% of the tenant's adjusted gross income. Unlike Section 8 certificates which must be applied to units registered with HACK, voucher holders can take the assistance to housing units of their choice. HUD establishes income limits annually, based on family size for the area in which HACK is located. Currently, 75% of eligible Section 8 applicant families’ income may not exceed 30% of the median area income. The remaining 25% may have income limits up to 80% of the area median. As of August 2004, the Section 8 housing inventory for Bakersfield consisted of 2,364 vouchers (104 project based, and 2,260 tenant based) which amounts to 74% of the total vouchers for HACK, and about 1,108 of the 1,500 total Section 8 landlords. As of August, 2004, HACK reported 2,364 Section 8 Housing Certificate Vouchers for households in Bakersfield. The total number of vouchers and certificates available has increased by about 20% since 1996 when HACK reported 1,946 Section 8 Certificates/Vouchers for households in Bakersfield. Section 8 tenants are generally well dispersed outside of Low/Mod Income Census tracts. There is no geographic concentration of Section 8 tenants in any particular area of the City. 2. Waiting List for Section 8 Rental Housing As of August 2004, the waiting list for Section 8 rental housing among current Bakersfield residents consisted of 4,159 households. Applicants on the waiting list consisted of: 1,107 Black; 1,412 Hispanic; 1,419 White; and 221 “Other”. The vast majority of the applicants on the waiting list were family households; very few applicants were elderly. Family and disability status for the same group of 4,159 applicants was 2,764 family households, 84 elderly, and 1,311 disabled/handicapped. This family household breakout indicates a very large need for affordable housing for disabled families. About 32% (1,311) of the Section 8 waiting list applicants were candidates for units that accommodate the disabled. Section 8 preference can be given to renters who are veterans Section 8 Waiting List by Bedroom Size and displaced from their dwelling due to a % of Total calamity or disaster such as fire or 0 Bedrooms 6 .5 earthquake. 1 Bedroom 2,157 52 2 Bedrooms 1,389 32 3 Bedrooms 528 13 Additionally, the table indicates breakout for 4 Bedrooms 77 2 bedroom size for applicants on the Section 8 5 Bedrooms 2 .5 waiting list a pent-up demand (about 84%of 6 Bedrooms 0 0 all waiting list applicants) for small family 6 + Bedrooms 0 0 units (0 to 2 bedrooms) by low-income Total 4,159 100% families. As of August 2004 City of Bakersfield Consolidated Plan 2010 V-7 May 2005 r-----------------' . ~ ~~~c'-,'r~J/ .1 C cA'ccc . . ,"I!". . v I ~ .¡, ""~' , I ~I "J . --,'/. I ~_c I c, ~. . . L -' I ~----~--~ ------ ~ -.-. Bakersfield City Limits Affordable Housing Type .. Disabled Source: City of Bakersfield, September 2004. Low and Moderate Income Areas (Greater than 51% Low and Moderate Income Population) . Family Single Room Occupancy (SRO) Senior Figure Affordable Housing Projects City of Bakersfield (Consolidated Plan 2010) City of Bakersfield Consolidated Plan 2010 V-8 May 2005