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HomeMy WebLinkAboutChapter VII Fair Housing Needs City of Bakersfield Consolidated Plan 2010 VII-1 May 2005 VII. FAIR HOUSING NEEDS ASSESSMENT INTRODUCTION Equal access to housing for all is fundamental to each person in meeting essential needs and pursuing personal, educational, employment, or other goals. Recognizing this fundamental right, the federal and State of California governments have both established fair housing as a right protected by law. A. FAIR HOUSING LAW 1 The Civil Rights Act of 1968 and Fair Housing Amendments Act of 1988 are the primary federal laws which prohibit discrimination in the sale, rental, lease or negotiation for property on the basis of race, color, religion, sex, or national origin. Whereas the Civil Rights Act contained provisions protecting people from housing discrimination, amendments enacted in 1988 extended protection to families with children and people with disabilities. The Fair Housing Act also addresses requirements to accommodate disabled people. The State of California has enacted a number of statutes that mirror and, in certain cases, 2 extend fair housing protections in federal law. The Unruh Civil Rights Act of 1959 and subsequent court decisions require equal access to the accommodations, advantages, facilities, privileges or services of all business establishments regardless of protected status. The courts have interpreted this Act to prohibit any arbitrary discrimination based in any class distinction, regardless of whether or not that basis is enumerated in the Act. 3 The Fair Employment and Housing Act of 1963 is the primary state law which prohibits discrimination in the sale, rental, lease negotiation or financing of housing based on race, color, religion, sex, marital status, national origin, and ancestry. The California Fair Housing Act of 1992 brought state laws into conformity with the Federal Fair Housing Act of 1988 and added protections for people with a "mental and physical disability" and "familial status", as well as requires housing providers to allow reasonable accommodations. State law also adds 4 protections for source of income. The Ralph Civil Rights Act of 1976 provides that all persons have the right to be free from any violence, or intimidation by threat of violence, committed against their persons or property because of their race, color, religion, ancestry, national origin, political affiliation, sexual orientation, sex, age, disability, or position in a labor dispute. The Act prohibits violence or threat of the same in rental housing situations. The Banes Civil Rights Act also forbids interference by force or threat with an individual's constitutional or statutory rights in places of worship, housing, and private property. B. FAIR HOUSING NEEDS The Economic and Community Development Department (EDCD) through its Fair Housing Office administers the City’s Fair Housing program with non-HUD funding, but rather funded through tax increment resources. The Fair Housing Act of 1968 provides the legal framework for this program which is to affirmatively further fair housing choice and eliminate discriminatory practices in housing. This section outlines the education and community outreach, technical training, compliance activities, and counseling in meeting the fair housing needs of Bakersfield residents and 1 42 U.S. Code §§ 3601 et. seq. 2 California Civil Code, §§ 51 and 52 3 California Government Code§§ 12900-12906 4 California Government Code§§ 12955(a) City of Bakersfield Consolidated Plan 2010 VII-1 May 2005 housing providers. The needs assessment for this section was completed in 2004 and is called an Analysis of Impediments. C. DEFINING FAIR HOUSING AND IMPEDIMENTS The concept of “fair housing” and its practical application to local governments and the housing market has changed over time in response to state and federal laws, court decisions, and public opinion. In light of fair housing legislation passed at the federal and state levels, as well as consultation with HUD and professionals providing fair housing services, the following definition of fair housing is used for this report: Fair housing is a condition in which individuals of similar income levels in the same housing market having a like range of housing choice available to them regardless of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, source of income, sexual orientation, or any other arbitrary factor. Within the legal framework of federal and state laws and based on the guidance provided by the U.S. Department of Housing and Urban Development (HUD) Fair Housing Planning Guide, impediments to fair housing choice can be defined as the following: Any actions, omissions, or decisions taken because of age, race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, source of income, sexual orientation, or any other arbitrary factor which restrict housing choices or the availability of housing choices; or Any actions, omissions, or decisions which have the effect of restricting housing choices or the availability of housing choices on the basis of age, race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, source of income, sexual orientation or other arbitrary factor. To affirmatively promote equal housing opportunity, a community must work to remove or mitigate impediments to fair housing choice. Furthermore, eligibility for certain federal funds requires the compliance with federal fair housing laws. Specifically, to receive HUD Community Planning and Development (CPD) formula grants, a jurisdiction must: Certify its commitment to actively further fair housing choice; ? Maintain fair housing records; and ? Conduct an analysis of impediments to fair housing. ? The City of Bakersfield is dedicated to providing fair housing opportunities to all residents and ensuring compliance with all applicable laws. D. FAIR HOUSING NEEDS HUD requires jurisdictions that receive federal funding for community development activities to assess the status of fair housing in their community. The identified fair housing needs for the City are from staff analysis and a recent AI. The purpose of the AI is to identify impediments to fair and equal housing opportunities in Bakersfield. The AI provides an overview of the laws, regulations, conditions or other possible obstacles that may affect access to housing and other services in Bakersfield. The scope, analysis, and format used in this AI report adhere to recommendations of the Fair Housing Planning Guide published by HUD. City of Bakersfield Consolidated Plan 2010 VII-2 May 2005 The AI contains these five chapters: Introduction. This chapter defines fair housing and explains the purpose of this report. Community Profile. This chapter presents population characteristics, housing characteristics, and special housing needs of residents in Bakersfield. This chapter provides a broad overview and understanding of the community so that housing needs are clearly defined. Public Policies. This chapter analyzes a range of public activities that may impede fair housing choice, including governmental land use, development regulations, and community development activities. Potential impediments to fair housing choice are discussed. Fair Housing Status. This chapter identifies trends in the disposition of home loans in Bakersfield, fair housing complaints, testing results, possible barriers to fair housing choice, and public comments received from the City’s outreach efforts. Fair Housing Plan. This chapter provides a summary of recommendations to further fair housing opportunity in Bakersfield. These actions are specific, with implementing timeframes. The AI concludes with a City-signed statement certifying that the AI represents the City’s Fair Housing Plan. 1. Summary of Recommendations Based on the conclusions of the AI, if the CDBG grantee takes lawful steps to eliminate identified impediments to fair housing choice within its jurisdiction, the grantee will be determined to have taken affirmative actions to further fair housing choice. Based on the evaluations and findings contained in the AI the following recommendations were made to further promote fair housing opportunities in the City of Bakersfield. a. Home Lending Patterns Overall, analysis of lending patterns revealed that loans issued to low-moderate income and minority areas have greatly improved since the last AI was prepared, and the loan approval rates have also dramatically improved. However, minority applicants (Asians, Hispanics, and African-Americans) continue to have lower loan approval rates than similarly situated White applicants. This difference could be due to differences in employment, credit, debt-income ratios, or other factors affecting the loan approval process. The City sponsors homebuyer and credit workshops in concert with other groups active in the community. Nonetheless, the persistence of lower rates could indicate a need for continued public education and outreach on the home purchase loan process. Recommendation: 1) Continue home buying workshops and focus on reaching Asians, Hispanics, and African Americans. Coordinate these efforts with the City’s HOME entitlement funding process. 2) Review of Patterns of Occupancy in Public Housing and Section 8 Programs (Actions for the Housing Authority of the County of Kern - HACK). City of Bakersfield Consolidated Plan 2010 VII-3 May 2005 3) Continue to promote greater housing opportunities for families outside areas of low-income and minority concentration. b. Public Policies and Impediments An important part of furthering fair housing is to analyze public policies that may contribute or detract from fair housing opportunities. Public policies refer to land use regulations, housing policies, transit accessibility, and other factors that may potentially impact housing opportunity in Bakersfield. This AI reviewed land use and zoning policies, housing/administrative policies, Grand Jury reports, economic development policies, City service policies, transit services, and other public policies and administrative practices to identify actual and potential impediments to fair housing. Recommendation: 1) As a prerequisite for any recipient receiving locally administered housing assistance funds (e.g., first-time homebuyer, new construction, rehabilitation assistance), the recipients should be required to acknowledge their understanding of fair housing law and affirm their commitment to the law. c. Fair Housing Discrimination As part of this AI, rental audits were conducted to determine the prevalence of familial and disability discrimination. Of the ten tests conducted, three showed evidence of discrimination. However, the discrimination was very subtle and was due to differences in information provided to the prospective renter which could discourage the renter from proceeding with an application. The most surprising finding was that four tests showed potential evidence of discrimination based on marital status in the use of credit check policies and fees even though marital status was not the focus of the tests. In discussions with the audit firm, sometimes landlords and property managers are not aware of the added protected classes in California fair housing law and this clientele also rarely receives fair housing brochures. To address this issue, the City could increase efforts to market fair housing and management training to property owners and managers in Bakersfield. Recommendation: 1) Conduct regular workshops on the fair housing laws to educate property owners, property managers and real estate professionals about race discrimination and familial status protections. 2) Address discrimination through mediation. Mediation can help redress violations of the law without having to resort to litigation. City of Bakersfield Consolidated Plan 2010 VII-4 May 2005 City of Bakersfield Consolidated Plan 2010 VII-5 May 2005