City of Downey. Analysis of Impediments to Fair Housing Choice

Transcription

1 City of Downey Analysis of Impediments to Fair Housing Choice Community Development Department Brookshire Ave. Downey, CA TRG regional and municipal planning 1

2 Acknowledgment The Ramsay Group, LLC, would like to extend its gratitude to all the individuals and agencies that made this report possible. The following are organizations and individuals who were instrumental in assisting with the formulation of this report by lending their time and/or respected advice. We are grateful for your assistance. CITY COUNCIL Anna Marie Bayer, Mayor Luis H. Marquez, Mayor Pro Tem Roger C. Brossmer David R. Gafin Dn. Mario A. Guerra COMMUNITY DEVELOPMENT DEPARTMENT Brian Saeki, Community Development Director John Perfitt, Economic Development Director Edward Velasco, Housing Manager CITIZENS AND STAKEHOLDERS TRG regional and municipal planning 2

3 Contents Section Page Introduction... 5 What Is Fair Housing? Purpose of Report Organization of Report Reporting Staff and Data Sources Public Participation Jurisdictional Background Data Demographic Data Race and Ethnic Characteristics Income Data Special Needs Households Housing Profile Public Transit System Mortgage Lending Practices Background Legislative Protection Conventional versus Government-Backed Financing Conventional Home Loans Conventional versus Government-Backed Home Loans Subprime Lending Public Policies and Practices City Policies and Programs Affecting Housing Development Zoning, Building, Occupancy, and Health and Safety Codes Variety of Housing Opportunity Public Policies and Programs Concerning Community Development Housing Activities Moratoriums/Growth Management Development Fees/Assessments Community Representation Assessment of Fair Housing Practices Fair Housing Practices in the Homeownership Market Fair Housing Practices in the Rental Housing Market Fair Housing Services Conclusions, Impediments and Actions Conclusions and Impediments Actions TRG regional and municipal planning 3

4 List of Tables Page Table 1-1 List of Contacted Agencies Table 2-1 Population of Downey Table 2-2 Age Distribution Profile of Downey (2009) Table 2-3 Race/Ethnicity Trends in Downey Table 2-4 Household Income by Income Group in Downey Table 2-5 Household Income by Amount in Downey (2009) Table 2-6 Tenure by Household Size in Downey Table 2-7 Households with Related Children under 18 in Downey Table 2-8 Persons with Disabilities in Downey (2000) Table 2-9 Composition of Housing Stock in Downey (2009) Table 2-10 Los Angeles Affordable Housing Program County Income Limits (2009) Table 2-11 Locations of Community Care Facilities in Downey Table 2-12 LA Metro and Other Services Fare Structure Table 3-1 Home Purchase Loans by Race/Ethnicity of Applicants in Downey (2008) Table 3-2 Home Improvement Loans by Race/Ethnicity of Applicant in Downey (2008) Table 3-3 Approved Home Purchase Loans versus Population by Race/Ethnicity in Downey (2008) Table 4-1 Residential Land-Use Designations Table 4-2 Zoning Categories and Usable Densities (residential zones) Table 4-3 Residential Off-Street Parking Standards Table 4-4 Downey Goals and Programs Related to Housing Table 4-5 Fees Charged for Residential Development Table 5-1 Outreach and Education Services in Downey Table 5-2 Direct Fair Housing Services Provided in Downey Table 5-3 Direct Services by Race/Ethnicity for Downey Table 5-4 Fair Housing Inquiries by Protected Class in Downey List of Figures Page Figure 2-1 Downey Link Routes TRG regional and municipal planning 4

5 Section 1 INTRODUCTION Equal access to housing is fundamental to each person in meeting essential needs and pursuing personal, educational, employment or other goals. In recognizing equal housing access as a fundamental right, the federal government and the State of California have both established fair housing choice as a right protected by law. This report presents a demographic profile of the City of Downey, assesses the extent of housing needs among specific income groups and evaluates the availability of a range of housing choices for residents. This report also analyzes the conditions in the private market and the public sector that could limit the range of housing choices or impede a person s access to housing. As the name of the report suggests, the document reviews impediments to fair housing. Although this report also assesses the nature and extent of housing discrimination, it primarily focuses on identifying impediments that could prevent equal housing access and developing solutions to mitigate or remove such impediments. What Is Fair Housing? Federal fair housing laws prohibit discrimination in the sale, rental or lease of housing, and in negotiations for real property, based on race, color, religion, sex, national origin, familial status and disability. California fair housing laws build on the federal laws, including age, marital status, ancestry, source of income, sexual orientation and any arbitrary discrimination as the protected categories under the laws. The following definition is used for this report: Fair housing describes 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, age, marital status, familial status, source of income, sexual orientation or any other arbitrary factor. Fair Housing Legal Framework The federal Fair Housing Act of 1968 and the Fair Housing Amendments Act of 1988 (42 U.S. Code , 3631) are federal fair housing laws that prohibit discrimination in all aspects of housing, such as the sale, rental, lease TRG regional and municipal planning 5

6 or negotiation for real property. The Fair Housing Act prohibits discrimination based on race, color, religion, sex and national origin. In 1988, the Fair Housing Act was amended to extend protection to familial status and people with disabilities (mental or physical). In addition, the Amendments Act provides for reasonable accommodations, allowing structural modifications for persons with disabilities, if requested, at their own expense, for multifamily dwellings to accommodate the physically disabled. The California Department of Fair Employment and Housing (DFEH) enforces California laws that provide protection and monetary relief to victims of unlawful housing practices. The Fair Employment and Housing Act (FEHA; Part 2.8 of the California Government Code, Code Sections ) prohibits discrimination and harassment in housing practices. The Unruh Act (California Government Code Section 51) protects Californians from discrimination in public accommodations and requires equal access to the accommodations. The Unruh Act provides broad protection and has been held by the courts to prohibit any arbitrary discrimination on the basis of personal characteristics or traits, and applies to a range of types of housing. The Ralph Civil Rights Act (California Civil Code Section 51.7) prohibits violence and threats of violence and specifies that housing situations are protected under this Act, including houses, apartments, hotels, boarding housing and condominiums. Violators of the Ralph Act can be sued for actual or emotional damages, in addition to civil penalties. The Bane Civil Rights Act (California Civil Code Section 52.1) provides another layer of protection for fair housing choice by protecting all people in California from interference by force or threat of force with an individual s constitutional or statutory rights, including a right to equal access to housing. The Bane Act also includes criminal penalties for hate crimes. However, convictions under the act are not allowed for speech alone unless that speech itself threatened violence. In addition to these acts, California Government Code Sections , and prohibit discrimination in programs funded by the state and in any land-use decisions. 1 1 Fair Housing Hotline Project, Legal Services of Northern California. (2004, March). Fair Housing in California: Families with Children: A Manual for Housing Providers, Tenants and Advocates. TRG regional and municipal planning 6

7 Housing Issues, Affordability and Fair Housing The U.S. Department of Housing and Urban Development (HUD) Fair Housing and Equal Opportunity Division distinguishes between housing affordability and fair housing. Economic factors that affect a household s housing choices are not fair housing issues per se. Only when the relationship between household income, household type, race/ethnicity and other factors create misconceptions, biases and differential treatment would fair housing concerns arise. Tenant/landlord disputes are also typically not related to fair housing. Most disputes between tenants and landlords result from a lack of understanding by either one or both parties regarding their rights and responsibilities. Tenant/landlord disputes and housing discrimination cross paths when fair housing laws are violated and result in differential treatment. What Is an Impediment to Fair Housing Choice? According to HUD s Fair Housing Planning Guide, and based within the legal framework of federal and state laws, impediments to fair housing choice are Any actions, omissions or decisions taken because of race, color, ancestry, national origin, religion, sex, disability, age, marital status, familial status, source of income, sexual orientation or any other arbitrary factor that restricts housing choices or the availability of housing choices, or Any actions, omissions or decisions that have the effect of restricting housing choices or the availability of housing choices on the basis of race, color, ancestry, national origin, religion, sex, disability, age, marital status, familial status, source of income, sexual orientation or any other arbitrary factor. To affirmatively promote equal housing opportunity, a community must work to remove impediments to fair housing choice. Furthermore, eligibility for certain federal funds requires 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. Conduct an. TRG regional and municipal planning 7

8 Purpose of Report This Analysis of Impediments (AI) to Fair Housing Choice provides an overview of laws, regulations, conditions and other possible obstacles that could affect an individual s or a household s access to housing in Downey. The AI includes A comprehensive review of Downey s laws, regulations and administrative policies, procedures and practices, as well as an assessment of how they affect the location, availability and accessibility of housing, and An assessment of conditions, both public and private, affecting fair housing choice. The scope of analysis and the format used for this AI adhere to recommendations contained in the Fair Housing Planning Guide developed by HUD. Organization of Report The AI is divided into six sections: Section 1: The Introduction defines fair housing and explains the purpose of this report. Section 2: The Jurisdictional Background Data presents the demographic, housing and income characteristics in Downey. Major employers and transportation access to job centers are identified. The relationships among these variables are discussed. Section 3: Mortgage Lending Practices analyzes private activities that could impede fair housing choices in Downey. Section 4: Public Policies and Practices evaluates various public policies and actions that could impede fair housing choices in Downey. Section 5: The Assessment of Fair Housing Practices evaluates the fair housing services available to residents and identifies fair housing complaints and violations in Downey. Section 6: Findings, Recommendations and Actions provides conclusions and recommendations about fair housing issues in Downey. At the end of this report, a page is attached that includes the endorsement of the city manager and a statement certifying that the AI represents Downey s TRG regional and municipal planning 8

9 official conclusions regarding impediments to fair housing choice and the actions necessary to address identified impediments. Reporting Staff and Data Sources This report, prepared through a collaborative effort between City staff and The Ramsay Group, LLC, under contract to the City of Downey, is funded through Community Development Block Grant (CDBG) funds. The following data sources were used to complete this AI. Sources of specific information are identified in the text, tables and figures. California Department of Finance Population and Housing Estimates, 2007 City of Downey Consolidated Plan, City of Downey General Plan Home Mortgage Disclosure Act (HMDA) data regarding lending patterns in 2008 Los Angeles Regional Transportation Plan, 2005 U.S. Census Bureau American Community Survey, U.S. Census, 1990 and 2000 Public Participation This AI Report has been developed to provide an overview of laws, regulations, conditions or other possible obstacles that could affect an individual s or a household s access to housing. As part of this effort, the report incorporates the issues and concerns of residents, housing professionals and service providers. To assure that the report responds to community needs, the development of the AI includes a community outreach program consisting of a community advisory committee, a resident survey, service provider interviews and City Council public hearings. Community Advisory Meetings Downey residents and public and private agencies either directly or indirectly involved with fair housing issues in Downey were invited to participate in three community advisory meetings and two focus groups on the following dates and below locations: December 2, 2009 City Hall, Brookshire Ave., noon December 2, 2009 City Hall, Brookshire Ave., 2:30 p.m. January 20, 2010 Downey City Library, Cormack Room, Brookshire Ave., 5:30 p.m. January 28, 2010 Barbara J. Riley Community Center, Rio Hondo Room, 7810 Quill Dr., 2 p.m. TRG regional and municipal planning 9

10 January 28, 2010 Barbara J. Riley Community Center, Rio Hondo Room, 7810 Quill Dr., 5:30 p.m. The meetings provided the opportunity for the Downey community to gain awareness of fair housing laws and for residents and service agencies to share fair housing issues and concerns. To ensure that the fair housing concerns of low- and moderate-income and special needs residents were addressed, individual invitation letters were distributed via mail and , if available, to agencies and organizations that serve the low- and moderate-income and special needs community. Agencies and organizations that were invited and contributed directly to this report include the following: Agency/Organization Club Table 1-1 List of Contacted Agencies Arc of Southeast Los Angeles Assistance League of Downey Downey Council PTA HELPS Downey Unified School District Fair Housing Foundation Gangs Out of Downey Habitat for Humanity Human Services Association Josephson Institute/CHARACTER COUNTS! Los Angeles County Department of Consumer Affairs Legal Aid Foundation of Los Angeles Life Skills Educational and Vocational Inc. Rio Hondo Temporary Home Salvation Army Southeast Los Angeles County Workforce Investment Board Southern California Rehabilitation Services Su Casa Family Crisis and Support Center The Exchange Club YMCA Meeting times and dates were also placed in the Downey Patriot and posted conspicuously at the City Hall. Due to extensive outreach efforts, attendance at the public meetings included several service providers and citizen groups that work with residents considered a protected class according to HUD s definition. Participants had the opportunity to discuss community needs for the Consolidated Plan and the AI. TRG regional and municipal planning 10

11 Resident Survey To supplement the citizen advisory meetings, a Fair Housing Survey was made available to Downey residents at City Hall, online at the City s Web site via a dedicated URL on an online tool called Constant Contact and as part of the Citizen Participation Network, which is an online group set up for public tracking of the process. In addition, surveys were administered to social service organizations throughout the City. Spanish versions of the survey were provided to reflect the diversity of Downey residents. During the survey period, completed surveys were submitted by 15 Downey residents. The survey consisted of questions designed to gather information on a person s experience with fair housing issues and the perception of fair housing issues in his/her neighborhood. Service Provider Interviews Interviews were conducted with the Fair Housing Foundation subrecipient and the State Department of Fair Employment and Housing. The interviews gave in-depth context and insight into housing conditions and fair housing issues for residents in Downey. Public Review During a 30-day public review period, the draft AI document was made available at the following locations: Downey Community Development Department, Brookshire Ave. Downey Housing Division office, 7850 Quill Dr., Suite C Barbara J. Riley Community Center, 7810 Quill Dr. Downey City Library, Brookshire Ave. Downey City Web site ( Notice of public review was published in the Downey Patriot. In addition, all persons that attended the citizen advisory meetings were ed and/or faxed the location of the public review document on the City s Web site and asked to provide any further comments for incorporation. During the public review period, no comments were received on the document. TRG regional and municipal planning 11

12 Section 2 JURISDICTIONAL BACKGROUND DATA Downey was incorporated in 1956 and instituted a charter form of government in Suburban homes and factories replaced the farms after World War II. The largest employer was originally Vultee Aircraft and then North American Aviation (later North American Rockwell, then Rockwell International, which was then bought by The Boeing Co.). The North American Aviation facilities produced some of the systems for the Apollo project and the space shuttle. The 70-year history of airplane and space vehicle manufacturing in Downey came to an end when the Rockwell plant closed in The former Rockwell plant has been converted to the Downey Landing shopping complex, a Kaiser Permanente hospital, a park, a space museum and Downey Studios. Near the center of the city lies what was once one of the busiest intersections in the world, the intersection of Lakewood Boulevard (State Route 19) and Firestone Boulevard (former State Route 42). Route 19 was a major thoroughfare between Pasadena and the port at Long Beach, and Route 42 was part of the old Spanish Trail system that connected Los Angeles to San Diego. Downey received the League of California Cities Helen Putnam Awards of Excellence in 2001 for Economic & Community Development. Downey has three schools recognized as Distinguished Elementary Schools by the California School Recognition Program. The schools are C.C. Carpenter Elementary School, Edith Unsworth Elementary School and Rio Hondo Elementary School. In addition, three others received awards as Honorable Mention Schools: Alameda Elementary School, Ed C. Lewis Elementary School and Maude Price School. Downey s West Middle School also received an award in the Distinguished Middle and High Schools category. Downey is a culturally diverse community and has long been regarded as an international community. Though the population consists of multiple origins, the residents have many things in common, including a strong sense of community and family. TRG regional and municipal planning 12

13 Demographic Data The sources for the demographic data used to prepare the AI were the U.S. Census Bureau (2000), the California Department of Finance and the Los Angeles Council of Governments (COG). Table 2-1 shows the population changes from 1990 to 2009 and population projections for 2010 and An analysis of Downey s population shows a steady slowdown in overall growth since From 1990 to 2000, Downey s growth was 17.4 percent. However, the City s population slowed dramatically over the next nine years, averaging less than 1 percent growth (0.3 percent). Similar to California s population overall, Downey s has been significantly affected by the state s economy, high unemployment and foreclosure rates, thereby detouring the migration of new residents (nationally and internationally) to the state. 2 From 2010 to 2015, Downey s population is projected to have a positive growth rate, averaging 6.8 percent. Table 2-1 Population of Downey Year Population % Change , , % , % , % , % , % 2010F* 115, % 2015F* 118, % Source: U.S. Census Bureau, 1990; Claritas 2000, ; Southern California Associations of Governments (SCAG), 2010, 2015 F: Forecast *SCAG uses different formulas than the U.S. Census Bureau. Table 2-2 provides a perspective of the City s population by age distribution in The age characteristics of a community indicate current needs and future trends for housing. Because different age groups have very different housing needs, housing demand correlates to the age of residents. For example, young adult households may choose to occupy apartments, condominiums and small single-family homes because of affordability, location and no or few children. Middle-age adults may prefer larger homes in which to raise families, whereas seniors may prefer smaller units that have 2 Connell, R. (2009, May 1). California Population Growth Flattens Out. Los Angeles Times. TRG regional and municipal planning 13

14 lower costs and are more proximate to services. Age and fair housing intersect when managers or property owners make housing decisions based on the age of residents. For example, managers and property owners may prefer to rent to mature residents, limit the number of children in their complex or discourage older residents due to their disabilities. Although a housing provider may establish reasonable occupancy limits and set reasonable rules about the behavior of tenants, those rules cannot single out children for restrictions that do not apply also to adults. The 2000 U.S. Census indicated the median age in the City of Downey was 31.6 years. The median age for the County of Los Angeles was 35.3 years of age. In 2009, the two largest categories were the and age groups with 13.9 percent and 15.3 percent, respectively. These age groups were consistent with the county s largest age groups. The two smallest age groups were and 85 and older with 3.8 percent and 1.9 percent, respectively. 3 With more than one-quarter of Downey residents less than 18 years of age, a younger population might indicate a high proportion of families with young children and therefore the need for larger homes. Furthermore, this age group typically consists of students, recent graduates or adults just entering the job market. Table 2-2 Age Distribution Profile of Downey (2009) Age Group Number % of Total Age 0 4 8, % Age 5 9 7, % Age , % Age , % Age , % Age , % Age , % Age , % Age , % Age , % Age , % Age , % Age , % Age , % Age 85+ 2, % Total 110, % Source: Claritas 3 Claritas. TRG regional and municipal planning 14

15 Of the City s younger population, emancipated youth may be disproportionately affected by a lack of housing options. These are youth aging out of foster care with a high risk of homelessness. The League of Women Voters indicated that 40 percent 50 percent of transition-age youth in California are homeless within two years of emancipation. A continuous supply of very low and low-income units with support services are needed to better ensure access to fair housing choice for this group. Race and Ethnic Characteristics Table 2-3 provides a breakdown of the 2000 and 2009 racial and ethnicity distribution of the City by number and percent. From 2000 to 2009, there was one significant change in the ethnic characteristics of the City. Most notable was the decrease in the White population. In 2000, Whites were 28.7 percent. By 2009, the proportion of White residents had decreased to 20.9 percent, or a loss of 7,769 residents. Table 2-3 Race/Ethnicity Trends in Downey Race/Ethnicity Persons % of Total Persons % of Total White (non-hispanic/latino) 30, % 23, % Hispanic/Latino 62, % 74, % African American 3, % 3, % Asian/Pacific Islander 8, % 7, % All Other Groups 2, % 1, % Total 107, % 110, % Source: Claritas Downey, like most California communities, has experienced changes in the racial and ethnic composition of residents over the past several decades. Much of the growth in Downey can be attributed to immigration. According to the 2008 American Community Survey, 39,090 residents were foreign born, representing more than 33 percent of the City s population. Among foreign-born residents, more than 75 percent immigrated from Latin America. 4 Foreign-born residents may have difficulty accessing housing due to language barriers or an apartment owner s reluctance to rent housing to an immigrant. In addition, a fair housing concern could arise if a foreign-born resident owns an apartment building and advertises only in his or her native language, thus restricting access only to persons speaking that language. 4 U.S. Census Bureau, 2000 TRG regional and municipal planning 15

16 Income Data Household income is the most important factor determining a household s ability to balance housing costs with other basic life necessities. Although economic factors that affect a household s housing choice are not a fair housing issue per se, the relationships among household income, household type, race/ethnicity and other factors often create misconceptions and biases that raise fair housing issues. For planning and resource allocation purposes, HUD groups households into different income categories to assess needs and prioritize assistance. For the federal programs, HUD defines four categories in relation to the county median family income (MFI): Extremely Low Income (up to 30 percent of county MFI) Low Income (31 percent 50 percent of MFI) Moderate Income (51 percent 80 percent of MFI) Middle and Upper Income (> 80 percent of MFI) Table 2-4 shows a comparison of household income from 1990 to 2000 for the City of Downey. There was an increase in the low-, moderate- and middle- and upper-income categories over the 10-year period. The exception was extremely low income households, which decreased 1.3 percent, or 355 households. Table 2-4 Household Income by Income Group in Downey Income Group Households % of Total Households % of Total Extremely Low (< 30% of MFI) 3, % 2, % Very Low (31% 50% of MFI) 3, % 3, % Low (51% 80% of MFI) 5, % 5, % Moderate/Upper (> 80% of MFI) 20, % 21, % Total 33, % 33, % Median Family Income $41,897 $50,017 Source: Comprehensive Housing Affordability Strategy (CHAS), 2000; U.S. Census Bureau, 1990, 2000 MFI: Median Family Income Note: Totals may not add to 100% because of rounding. Combined, extremely low and low-income households are referred to as lower-income households. Virtually all federal programs provide assistance only to households in the lower- and moderate-income categories. Household income often varies by household type. In reviewing current income data, the majority (63 percent) of households in Downey earned more than 50,000, which was considered middle and upper income in TRG regional and municipal planning 16

17 However, 31.8 percent of the households were considered lower income, earning less than $35,000 (see Table 2-5). Table 2-5 Household Income by Amount in Downey (2009) Income Households % of Total < $15,000 3, % $15,000 $24,999 3, % $25,000 $34,999 3, % $35,000 $34,999 4, % $50,000 $34,999 7, % $75,000 $34,999 4, % $100,000 $149,999 4, % $150,000 $249,999 2, % $250,000 $499, % $500, % Total 33, % Source: Claritas Note: Totals may not add to 100% because of rounding. Special Needs Households Certain households, because of their special characteristics and needs, have more difficulty finding decent and affordable housing. The following discussion highlights particular characteristics that could affect an individual household s access to housing in the community. Large Households Large households are defined as having five or more members. These households are usually families with two or more children or families with extended family members such as in-laws or grandparents. It can also include multiple families living in one housing unit in order to save on housing costs. Large households are a special needs group because the availability of adequately sized, affordable housing units is often limited. To save for necessities such as food, clothing and medical care, lower- and moderateincome large households may reside in smaller units, resulting in overcrowding. Furthermore, families with children, especially those who are renters, may face discrimination or differential treatment in the housing market. For example, some landlords might charge large households a higher rent or security deposit, limit the number of children in a complex, confine them to a specific location, limit the time children can play outdoors or choose not to rent to families with children altogether, which would violate fair housing laws. TRG regional and municipal planning 17

18 According to the 2000 Census, 19.6 percent of all households, or 6,673 households, in the City of Downey were large households. Also, according to the 2000 Census, 2,608 large households were renter households, representing 39 percent of all large households and 15.9 percent of all renter households in the City. In 2008, the percentage of all households reported as overcrowded, slightly increased to 21.6 percent, or 7,039 households (see Table 2-6). Table 2-6 Tenure by Household Size in Downey Owner Renter Total Household Size Occupied Occupied Households % of Total 1 Person 3,187 3,180 6, % 2 Persons 3,474 3,821 7, % 3 Persons 3,112 2,050 5, % 4 Persons 3,808 2,925 6, % 5 Persons 2,318 1,880 4, % 6 Persons 802 1,039 1, % 7 or More Persons , % Total 17,547 15,049 32, % Source: American Community Survey, 2008 Note: Totals may not add to 100% because of rounding. Single-Parent Households Single-parent families, particularly female-headed families with children, often require special consideration and assistance because of their greater need for affordable housing and accessible day care, healthcare and other supportive services. Because of their relatively lower income and higher living expenses, female-headed families have comparatively limited opportunities for finding affordable and decent housing. Female-headed families may also be discriminated against in the rental housing market because some landlords are concerned about the ability of these households to make regular rent payments. Consequently, landlords might require more stringent credit checks or higher security deposits for women, which would be a violation of fair housing laws. According to the 2008 American Community Survey, there were 4,398 singleparent households with children under age 18 living in Downey, representing 13 percent of all households in the City. Of these single parent households, 5,240 were female-headed households, representing nearly 70 percent of the single-parent households. TRG regional and municipal planning 18

19 Table 2-7 Households with Related Children under 18 in Downey Status Households % of Total Married 9, % Male, No Wife 2, % Female, No Husband 3, % Total 16, % Source: American Community Survey, 2008 Note: Totals may not add to 100% because of rounding. Persons with Disabilities Fair housing choice for persons with disabilities can be compromised based on the nature of their disability. Persons with physical disabilities may face discrimination in the housing market because of the need for wheelchairs, home modifications to improve accessibility or other forms of assistance. Landlords/owners sometimes fear that a unit might sustain wheelchair damage or could refuse to exempt disabled tenants with service/guide animals from a no-pet policy. A major barrier to housing for people with mental disabilities is opposition based on the stigma of mental disability. Landlords often refuse to rent to tenants with a history of mental illness. Neighbors may object when a house becomes a group home for persons with mental disabilities. In 2000, there were 24,704 persons documented with disabilities in Downey, representing nearly 23 percent of all residents. Approximately 41 percent of the persons with disabilities were elderly (65+). These persons may require special housing with ramps, elevators, modified bathrooms, kitchens and doorways. To help meet the needs of the disabled population, the City permits residential care facilities that serve six or fewer persons in all residential zones (consistent with California law) and conditionally permits residential care facilities that serve seven or more persons in the R-3 zone. TRG regional and municipal planning 19

20 Table 2-8 Persons with Disabilities in Downey (2000) Disability Age 16+ Age 65+ Sensory 2,767 1,602 Physical 6,502 3,282 Mental 3,352 1,525 Self-Care 2,292 1,114 Going Outside Home* 9,791 2,581 Total 24,704 10,104 Source: U.S. Census Bureau, 2000 *Going Outside Home is a physical, mental or emotional condition lasting 6 months or more that makes it difficult to perform certain activities such as going outside the home alone to shop or visit a doctor s office. The Fair Housing Act, as amended in 1988, requires that cities and counties provide reasonable accommodation to rules, policies, practices and procedures where such accommodation may be necessary to afford individuals with disabilities equal housing opportunities. Although fair housing laws intend that all people have equal access to housing, the law also recognizes that people with disabilities may need extra tools to achieve equality. Reasonable accommodation is one of the tools intended to further housing opportunities for people with disabilities. For developers and providers of housing for people with disabilities who are often confronted with siting or use restrictions, reasonable accommodation provides a means of requesting from the local government flexibility in the application of landuse, zoning and building code regulations or, in some instances, even a waiver of certain restrictions or requirements because it is necessary to achieve equal access to housing. Cities and counties are required to consider requests for accommodations related to housing for people with disabilities and provide the accommodation when it is determined to be reasonable based on fair housing laws and the case law interpreting the statutes. To create a process for making requests for reasonable accommodation to land-use and zoning decisions and procedures regulating the siting, funding, development and use of housing for people with disabilities, the City included in its 2008 General Plan Housing Element (required under California law) a program to continue to support the rehabilitation and development of housing for special needs groups such as the elderly, the disabled and the homeless. 5 5 City of Downey Housing Element, 2009 TRG regional and municipal planning 20

21 Persons with HIV/AIDS Persons with HIV/AIDS face an array of barriers to obtaining and maintaining affordable, stable housing. For persons living with HIV/AIDS, access to safe, affordable housing is as important to their general health and well-being as access to quality healthcare. For many, the persistent shortage of stable housing can be the primary barrier to consistent medical care and treatment. In addition, persons with HIV/AIDS may also be targets of hate crimes, which are discussed later in this document. Despite federal and state antidiscrimination laws, many people face illegal eviction from their homes when their illness is exposed. The Fair Housing Amendments Act of 1988, which is primarily enforced by HUD, prohibits housing discrimination against persons with disabilities, including persons with HIV/AIDS. Data could not be found representing the HIV/AIDS community in Downey. Many smaller communities data are often lumped together due to lack of testing or voluntary information to generate statistics on the disease. In Los Angeles County at large, 52,926 cumulative AIDS cases were reported throughout the county from 1982 to October County figures show that a declining rate of transmission is coupled with a declining mortality rate. New drugs, better treatment and preventive education have reduced the number of AIDS fatalities. Persons with HIV/AIDS are living longer and require longer provision of services. The County of Los Angeles Department of Health Services funds AIDS services through Title I of the Comprehensive AIDS Resources Emergency (CARE) Act of Services include primary healthcare, mental health counseling, in-home care and treatment services, dental, case management, recreation/social services, outreach and education, and transportation services. Homeless Persons Homeless persons often have a difficult time finding housing once they have moved from transitional housing or another assistance program. Housing affordability for those who are or were formerly homeless is challenging from an economics standpoint, and this demographic group may also encounter fair housing issues when landlords refuse to rent to formerly homeless persons. The perception may be that homeless persons are more economically (and sometimes mentally) unstable. These difficulties are more severe for homeless families that need larger affordable units to accommodate children. The 2007 Greater Los Angeles Homeless Count conducted by the Los Angeles Homeless Services Authority (LAHSA) reported a population of approximately 73,000 homeless in Los Angeles County on a single night survey. The study projected that 141,737 homeless people in the Los Angeles Continuum of TRG regional and municipal planning 21

22 Care (CoC) 6 experience homelessness sometime during the year. This annual estimate of homelessness represents approximately 1.5 percent of Los Angeles CoC s total population. In the City of Downey, there is expected to be as many as 40 individuals homeless or at risk of homelessness. Homelessness in Downey does not appear to be as critical as statistics indicate for the entire Los Angeles region. 7 There are no emergency shelters or transitional housing facilities in the City of Downey. The closest emergency shelters and transitional housing facilities are the Rio Hondo Temporary (transitional) Home in Norwalk and the Salvation Army Bell (homeless) Shelter in the City of Bell. The Rio Hondo facility provides families with temporary shelter and services to help them prepare for reentering market-rate rental housing. The Salvation Army Bell Shelter provides temporary shelter and some services for individuals. Below are further details on homeless services and facilities in the area: Rio Hondo Temporary Home, Norwalk. The 110-bed Rio Hondo Temporary Home is located in Norwalk at Bloomfield Avenue. The shelter provides emergency food and transitional shelter for families with children in the Cerritos, Downey, La Mirada, Montebello, Norwalk, Pico Rivera, Santa Fe Springs and Whittier areas. There are no geographic restrictions. This facility is operated by a private nonprofit organization that is supported by independent fund-raising and City funds. It is housed in a building on the grounds of the Metropolitan State Hospital. Services are provided by professional and paraprofessional staff. Salvation Army Bell Shelter. This facility provides emergency shelter for single men and women 18 years of age and older who are homeless. This shelter is located in the City of Bell at 6500 Rickenbacker Road. There are no geographic restrictions for this shelter. This facility is operated by the Salvation Army and is funded through private donations and federal, state and county funds. The shelter is housed in a federal government building. The staff includes various paraprofessionals as well as volunteers. Catholic Charities, with an office in Pico Rivera, and the San Gabriel Valley Fair Housing Council, under a contract with the City, assist in monitoring the shelter and providing transportation and additional social service needs of the homeless. 6 The Los Angeles Continuum of Care includes all of Los Angeles County, except the cities of Pasadena, Glendale and Long Beach, which administer their own separate continuums of care (CoCs). These cities also conduct their own homeless census counts. 7 City of Downey Housing Element, 2009 TRG regional and municipal planning 22

23 To address the local homeless problem, the City is cooperating with the LAHSA and providing financial support to local service provides. Housing Profile To address the fair housing issues of a community, the existing housing market must be analyzed to distinguish local and current conditions. This section provides an overview of the characteristics of the local and regional housing markets. Housing Growth According to estimates prepared by the California Department of Finance (DOF), there were 35,127 housing units in the City in Of this total, 22,243 units (63.3 percent of the total units in the City) were classified as single-family units. Four-unit and smaller multifamily developments totaled 1,665 units (4.7 percent of the City s total housing stock). Multifamily developments containing five or more units totaled 11,026 units (31.4 percent of the City s total housing). Finally, mobile homes totaled 193 units (0.5 percent of the total housing units in the City). Table 2-9 itemizes the 2009 DOF estimates for the City. Table 2-9 Composition of Housing Stock in Downey (2009) Housing Type Units % of Total Single Family, Detached 20, % Single Family, Attached 1, % 2- to 4-Unit Structure 1, % 5 or More Unit Structure 11, % Mobile Homes % Total Units 35, % Source: California Department of Finance estimates According to the 2000 Census, the City of Downey had 34,749 total occupied housing units. By 2009, that number had increased by only 1.1 percent. Similar to other cities in east Los Angeles County, housing unit growth slowed in the past nine years because of a limited amount of available vacant land in the City and the weak economy. TRG regional and municipal planning 23

24 Tenure Tenure in the housing industry typically refers to the occupancy of a housing unit whether the unit is owner occupied or an occupied rental unit. Tenure preferences are primarily related to household income, composition and ages of the household members, and the housing cost burden is generally more prevalent among renters than among owners. However, the extremely high cost of homeownership in southern California creates high levels of housing cost burden among owners. The tenure distribution (owner versus renter) of a community s housing stock influences several aspects of the local housing market. Residential mobility is influenced by tenure, with ownership housing evidencing a much lower turnover rate than rental housing. According to the 2008 American Community Survey, 46 percent of Downey households were renters, whereas 54 percent owned their homes (see Table 2-6). The number of overall occupied units decreased by 1,393 units from 2000 to Owner-occupied units stayed relatively flat over the eight-year period, gaining only 54 households, however, the rental market lost 1,339 households. In general, housing discrimination issues are more prevalent in a tight rental housing market because renters are more likely to be subject to conditions in the housing market that are beyond their control. Housing vacancy rates the number of vacant units compared to the total number of units reveal the housing supply and demand for a city. Some amount of housing vacancy is normal to allow for people moving from one place to another. The DOF estimated an overall vacancy rate for Downey of less than 3 percent in A low vacancy rate can indicate a heightened likelihood of housing discrimination as the number of renters looking for housing increases while the number of housing units remains relatively constant. Managers then are able to choose occupants based on possible biases because the applicant pool is large. Overcrowding Overcrowding is defined as occupancy of a housing unit with more than one person per room. Severe overcrowding represents housing occupancy of more than 1.5 persons per room. (Rooms include living and dining rooms, and other habitable spaces such as family rooms or dens.) Overcrowding occurs when housing costs are so high relative to income that families have to reside in small units or double up to devote income to other basic needs such as food and medical care. However, cultural differences also contribute to the overcrowded conditions because some cultures tend to have larger household size than others due to the preference of living with extended family members. Overcrowding also tends to result in increased traffic, accelerated deterioration of homes and crowded on-street parking TRG regional and municipal planning 24

25 conditions. As a result, some landlords or apartment managers might be more hesitant to rent to larger families, thus making access to adequate housing even more difficult. According to the 2000 Census, 8,065 households, or 23.7 percent of all households in Downey were overcrowded with 5,147 of these households being renter households, representing 63.8 percent of all overcrowded households and 31.4 percent of all renter households. 8 Housing Affordability The cost of housing in a community is directly correlated to the number of housing problems and affordability issues. High housing costs can price lowerincome families out of the market, cause extreme cost burdens or force households into overcrowded or substandard conditions. However, housing affordability alone is not necessarily a fair housing issue. Fair housing concerns may arise only when housing affordability interacts with factors covered under the fair housing laws, such as household type, composition and race/ethnicity. Comparing the cost of housing in Downey to the maximum housing costs affordable to households of different income levels determines the affordability of the housing stock in the City. This information provides a picture of the size and type of housing available for each income group and indicates which households would likely experience overcrowding or a housing cost burden. HUD conducts annual household income surveys to determine the maximum payments that are affordable for different household income groups. In evaluating affordability, the maximum affordable price refers to the maximum amount that could be afforded by households in the upper range of their respective income categories. Table 2-10 shows the annual household income by household size and the maximum affordable housing payment based on the federal standard of 30 percent of household income. General cost assumptions for utilities, taxes and property insurance are also shown. 8 Ibid. TRG regional and municipal planning 25

26 Table 2-10 Los Angeles Affordable Housing Program County Income Limits (2009) Income Limit Category Very Low (below 30% of AMI) $16,650 $19,050 $21,400 $23,800 $25,700 $27,600 $29,500 $31,400 Extremely Low (31% 50% of AMI) $27,750 $31,700 $35,700 $39,650 $42,800 $46,000 $49,150 $52,350 Low (51% 80% of AMI) $44,400 $50,750 $57,100 $63,450 $68,550 $73,600 $78,700 $83,750 Moderate (81% 120% of AMI) $52,150 $59,600 $67,050 $74,500 $80,450 $86,400 $92,400 $98,350 Source: 2009 Housing Income Limits Summary for Los Angeles County AMI: Area Median Income Area Median Income: $62,100 No. of Persons Assisted Housing The availability and location of public and assisted housing may be a fair housing concern. If such housing is concentrated in one area of a community, a household seeking affordable housing is limited to choices within the area. Public/assisted housing and housing assistance must be accessible to qualified households regardless of race/ethnicity, disability or other special characteristics. Section 8 Rental Assistance The Housing Authority of the County of Los Angeles administers the Section 8 Housing Choice Voucher Program for Downey residents. The Section 8 Housing Choice Voucher Program provides rental subsidies to low-income families that spend more than 30 percent of their gross income on housing costs. The program pays the difference between 30 percent of the recipients monthly income and the federally approved payment standard. The City maintains an ongoing memorandum of understanding (MOU) with the County Housing Authority that permits the Authority to provide rental assistance programs in Downey. The City s Housing Division tracks the number of households from Downey who participates in the Section 8 program. On average, there are households that participate in this program annually. The Housing Division regularly refers and provides general qualification and program information to interested individuals. Affordable Housing Projects Apartment projects can receive housing assistance from a variety of sources to ensure that rents are affordable to lower-income households. In exchange for public assistance, owners are typically required to reserve a portion or all of the units as housing affordable to lower-income households. The lengthof-use restrictions are dependent on the funding program. In 2008, four affordable rental housing developments were located in the City, providing 142 affordable units to lower-income households. There are, however, several low- to moderate-income housing projects that have existing affordability controls. These include the following: TRG regional and municipal planning 26