City of Pasadena

FIVE YEAR CONSOLIDATED PLAN (2000 - 2005)

ANNUAL ACTION PLAN (2000 - 2001)

CITY COUNCIL

Bill Bogaard, Mayor

Bill Crowfoot, Vice Mayor

Steve HaderleinChris Holden

Paul LittleSteve Madison

Joyce StreatorSidney F. Tyler, Jr.

CITY MANAGER

Cynthia J. Kurtz

HOUSING AND DEVELOPMENT DEPARTMENT

Richard J. Bruckner, Director

Gregory Robinson, Housing Administrator

Eunice Gray, Program Coordinator

CONSULTANT

The Institute for Urban Research and Development (IURD), Pasadena, CA

June 5, 2000

EXECUTIVE SUMMARY

A.Background

The City of Pasadena is experiencing significant economic prosperity; the economy is growing, unemployment is low, and house prices and rents are escalating. The City is a very desirable place to work and live and has a world-class reputation. This prosperity is not shared by all of its citizens and is increasing the demand on the housing market and making it more difficult for residents with limited income and skills to continue to afford to live in Pasadena.

The new economy is creating well paid jobs and expensive housing for the highly educated who live or are migrating to Pasadena. Those with limited income are finding it more difficult each day to locate housing and other necessities within their means.

These households are not distributed equally throughout the community. Fifty percent (50%) of the households residing in three census tract are extremely low or low income.

The Consolidated Plan is designed to enable the City of Pasadena to establish an action plan which can address some of these priority needs. It offers the City the opportunity to shape its various housing and community development programs into effective, coordinated, neighborhood and community development strategies. The Consolidated Plan approach is also the means to meet the application requirements for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Shelter Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) formula programs.

The federal statutes for the formula grant programs set forth three basic goals against which the Consolidated Plan and the City of Pasadena's performance will be evaluated by the U.S. Department of Housing and Urban Development (HUD). The City of Pasadena's Consolidated Plan states how it will pursue these goals for community development programs and housing programs. The goals are:

DECENT HOUSING includes assisting homeless persons with obtaining affordable housing; assisting persons at risk of becoming homeless; retention of affordable housing stock; increasing the availability of affordable permanent housing in standard condition to low-income and moderate-income families, particularly to members of disadvantaged minorities without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability; increasing the supply of supportive housing which includes structural features and services to enable persons with special needs (including persons with HIV/AIDS) to live in dignity and independence; and providing affordable housing that is accessible to job opportunities.

A SUITABLE LIVING ENVIRONMENT includes improving the safety and livability of neighborhoods; increasing access to quality public and private facilities and services; reducing the isolation of income groups within areas through spatial deconcentration of housing opportunities for lower income persons and the revitalization of deteriorating neighborhoods; restoring and preserving properties of special historic, architectural, or aesthetic value; and conservation of energy resources.

EXPANDED ECONOMIC OPPORTUNITIES includes job creation and retention; establishment, stabilization and expansion of small businesses (including microbusinesses); the provision of public services concerned with employment; the provision of jobs to low-income persons living in areas affected by those programs and activities, or jobs resulting from carrying out activities under programs covered by the plan; availability of mortgage financing for low-income persons at reasonable rates using non-discriminatory lending practices; access to capital and credit for development activities that promote the long-term economic and social viability of the community; and empowerment and self-sufficiency for low-income persons to reduce generational poverty in federally assisted housing and public housing.

B.Purpose

This executive summary describes the key elements of the Consolidated Plan. These elements include the needs assessment, priority needs, specific goals and objectives, and how activities will address identified needs. These elements include:

  1. Housing and Homeless Needs Assessment
  2. Housing Market Analysis
  3. Strategic Plan
  4. Action Plan

1.Housing and Homeless Needs Assessment

This section contains the statistical and analytical information that provide an overall picture of the City's housing and homeless needs for the ensuing five-year period (2000 - 2005) and supports the strategy described in the Strategic Plan as well as the annual activities outlined in the Action Plan. The significant data and trends are as follows:

a.Population

  • Since 1990 the city's population increased 8.3%--from 131,591 in 1990 to 142,500 in 1999;
  • It is expected that the increase in population growth for 2000 - 2005 will continue to be close to the annual rates of increase during the past decade. The average annual percentage increase during that period was .7%. Based on this percentage, the city's total population in 2005 is estimated to be 148,589.
  1. Employment
  • In 1998, the city’s unemployment rate was 5.6% -- significantly below the 6.3% unemployment rate in 1990;
  • Pasadena’s employment base has been restructured over the past decade, with the total number of jobs declining by approximately 7%. Job losses were concentrated in three sectors: construction sector, manufacturing sector, and wholesale trade, with average declines from 35% to 63%. These losses were slightly offset by increases in Finance, Insurance and Real Estate (FIRE), retail trade and transportation/public utilities.
  • Many of the new job opportunities have occurred within the field of computer technology. The rising demand for information, further automation of offices and factories, advances in health and medicine and continuing scientific research has stimulated the demand for skilled programmers. However, there is a labor shortage for technology employment in Pasadena. Low unemployment rates have contributed to a dwindling pool of qualified candidates for these job opportunities. Employers will be required to spend additional resources training workers to gain the skills necessary to meet the new job demand.

c.Housing Units

  • In 1999, the City of Pasadena had a total of 54,236 housing units. This represents an increase of 1,204 housing units or 2.3% since 1990. Of these housing units, 52.9% were single family attached and detached units, 47.3% were multi-family units, and the remaining units (.004%) were mobile homes and miscellaneous quarters.

d.Households

  • In 1999 there were 52,826 households compared to 50,199 in 1990. This represents an increase of 2,627 households or 5.2%;
  • There has been a shift among household categories by income. The percentage of households above middle income (49.1%) in 1999 is nearly 10% lower than the percentage of households above middle income (58.9%) in 1990. Conversely, moderate-income and middle-income households increased by 7.65% and extremely low and income-income households increased by 2.15%;
  • The percentage of renters (53.7%) occupying housing units and the percentage of owners occupying housing units (46.3%) was about the same in 1999 as it was in 1990.
  • There are a significant number of households with special affordable and/or supportive housing needs. These populations include:
  1. Large households - in 1997, 5,699 households representing 11.1% of all households had five members or more;
  1. Seniors - in 1997, 17,430 residents representing 12.5% of the total population were ages 65+ and of these persons 4,584 were extremely low or low income persons and 1,537 were living in assisted housing;
  1. Persons living with HIV/AIDS - in 1998, there were 195 persons living with HIV/AIDS;
  1. Substance Abusers in Recovery - in March of 2000, there were 482 persons living in substance abuse recovery facilities;
  1. Single female-headed households - in 1997, 8,123 (23.4%) households were single-female headed households and of these households 2,136 were extremely low or low income households;
  1. Public Assistance Recipients - in 1998 there were 22,919 households receiving public assistance;
  1. People with Developmental Disabilities - in 1998 there were 846 persons with developmental disabilities living at home or in community care;
  1. Homeless persons - on January 26, 2000 there were 873 homeless persons living on the streets or in homeless facilities in Pasadena; during the 30-day period between January 6 and February 4 there were 1,743 homeless persons living on the streets or in homeless facilities;
  1. Homeless women - in 1998 women made up 34% of the homeless population compared to 15% in 1992;

2.Housing Market Analysis

This section focuses attention on the causes of the housing and homeless needs described in the Housing and Homeless Needs Assessment. More specifically, this section highlights primarily three issues 1) housing availability, 2) housing affordability, and 3) housing accessibility. Findings for this section are divided under related sub-sections.

a.Income

  • The median household income in 1997 was $54,707, which represents an increase of 55.8% from the median household income of $35,103 in 1990.

b.Demand

  • Based on a projected population to household formulation ratio of 2.701 there will be 55,012 households in Pasadena in 2005. This represents an increase of 2,186 households (4%) of the households (52,826) in 1999;
  • Assuming that each new household equals an additional housing unit, there will be a demand for 2,186 additional housing units.

c.Supply

Of the 2,757 units that are currently under construction or planned

  • 403 (14.6%) will be affordable to extremely low, low, and moderate-income households while 2,354 (85.4%) will be for households at market rate cost;
  • 614 (22.2%) will be for ownership and 80 (13%) of them will be available for extremely low, low, and moderate-income households;
  • 1,828 (66.1%) will be rentals for non-seniors and 98 (5.4%) units will be available for extremely low, low, and moderate-income non-senior households;
  • 315 (17.2%) will be rentals for seniors and 225 senior units (72.3%) will be available for extremely low, low, or moderate-income senior households.

d.Housing Affordability - Rentals

  • Rents have steadily increased during the past fifteen years. One-bedroom rentals increased from $435 in 1985 to $569 in 1995 representing an increase of 30.8%, while two bedroom rentals increased 40.7% and three bedroom rentals increased 43.5% during the same time period. Rentals also increased from 1995 to 1999 A one-bedroom rental increased in cost $569 to $650, representing a 14.2% increase. During the same period, two bedroom rentals increased by 1% and three bedroom rentals increased by 20.5%;
  • Extremely low, low, and moderate-income households, in varying degrees, experienced “housing overpayment” which caused them to spend more than 30% of their income for housing in 1997. Extremely low-income households paid more than 30% of their median income in housing costs for one, two, or three bedroom rentals. Low-income households paid 30% or less of their income for a one-bedroom rental but more than 30% for two or more bedroom rentals. Moderate-income households paid 30% or less of their income for one and two bedroom rentals but their cost for three or more bedroom rentals was greater than 30%.

The following tables illustrate the relationship between income and housing affordability. As depicted, extremely low or low-income households could not afford the average rent.

30% Rental Housing Affordability Gap for Extremely Low, Low, and Moderate Income Households

Household Characteristics / Total Households / Unit
Size / 30% of
Monthly Income / Monthly* Rental Cost / Affordability
Gap
# / %
Extremely Low Income
(30% of Median Income
was $16,412) / 7,835 / 15.1 / 1 Bedroom / $410 / $650 / -$240
2 Bedroom / $410 / $782 / -$372
3 Bedroom / $410 / $1,150 / -$740
Low Income
(50% of Median Income
was $27,353) / 6,035 / 11.6 / 1 Bedroom / $684 / $650 / +$34
2 Bedroom / $684 / $782 / -$98
3 Bedroom / $684 / $1,150 / -$466
Moderate Income
(80% of Median Income
was $43,766) / 10,178 / 19.6 / 1 Bedroom / $1,094 / $650 / +$444
2 Bedroom / $1,094 / $782 / +$312
3 Bedroom / $1,094 / $1,150 / -$56
Total Households / 24,048 / 46.3

*Source: Beven and Brock Realtors, Pasadena CA

40% Rental Housing Affordability Gap for Extremely Low, Low, and ModerateIncome Households

Household Characteristics / Total Households / Unit
Size / 40% of Monthly
Income / Monthly Rental* Cost / Affordability
Gap
# / %
Extremely Low Income
(30% of Median Income
was $16,412) / 7,835 / 15.1 / 1 Bedroom / $547 / $650 / -$103
2 Bedroom / $547 / $782 / -$235
3 Bedroom / $547 / $1,150 / -$603
Low Income
(50% of Median Income
was $27,353) / 6,035 / 11.6 / 1 Bedroom / $912 / $650 / +$262
2 Bedroom / $912 / $782 / +$130
3 Bedroom / $912 / $1,150 / -$238
Moderate Income
(80% of Median Income
was $43,766) / 10,178 / 19.6 / 1 Bedroom / $1,459 / $650 / +$809
2 Bedroom / $1,459 / $782 / +$677
3 Bedroom / $1,459 / $1,150 / +$309
Total Households / 24,048 / 46.3

*Source: Beven and Brock Realtors, Pasadena CA

e.Housing Affordability - Home Ownership

  • The median price of homes increased modestly during the past ten years. The median price of a home declined to its lowest level in 1996, from $270,000 in 1990 to $227,000 in 1996, decrease of $43,000 or 15.9%. Since then, however, the price has increased significantly. By 1999 the median price of a home was $280,000 representing a rise of $53,000 or 23.3% since 1996;
  • Thirty percent (30%) of the Pasadena median income did not equal the required monthly payment (principal and interest) for the median home price in 1990, 1996 (when the median price of a home was at its lowest during the past decade), or 1999. Forty percent (40%) of the median income did exceeded the monthly payment for the median price of a home in 1996 but did not do so in 1990 and 1999. Additionally, the estimated monthly payment did not include mortgage insurance, hazard insurance, taxes, homeowner association fees, etc., which would substantially increase the total monthly housing costs well beyond 30% of the median income.

30% Monthly Income, Maximum Home Price and Affordability Gap

Household
Income
Category / Total Households / 30% of Monthly Income / Maximum* Home
Price / Monthly Principal & Interest Payment for Median Home Price of $280,000 / Affordability
Gap
# / %
Extremely Low Income
(30% of median income
was $16,412) / 7,835 / 15.1 / $410.00 / $51,000 / $1,849.00 / -$1,439.00
Low Income
(50% of median income was $27,353) / 6,035 / 11.6 / $684.00 / $85,000 / $1,849.00 / -$1,165.00
Moderate Income
(80% of median income was $43,766) / 10,178 / 19.6 / $1,094.00 / $137,000 / $1,849.00 / -$755.00
Total Households / 24,048 / 46.3

*Maximum home price and **monthly payment is based on a 30 year loan term at 8% interest and a down payment of 10%.

40% Monthly Income, Maximum Home Price and Affordability Gap

Household
Income
Category / Total Households / 40% of Monthly Income / Maximum
Home
Price / Monthly Principal & Interest Payment for Median Home Price of $280,000 / Affordability
Gap
# / %
Extremely Low Income
(30% of median income -$16,412) / 7,835 / 15.1 / $547.00 / $68,000 / $1,849.00 / -$1,302.00
Low Income
(50% of median income -s $27,353) / 6,035 / 11.6 / $912.00 / $114,000 / $1,849.00 / -$937.00
Moderate Income
(80% of median income -$43,766) / 10,178 / 19.6 / $1,459 / $182,000 / $1,849.00 / -$390.00
Total Households / 24,048 / 46.3

*Maximum home price and **monthly payment is based on a 30 year loan term at 8% interest and a down payment of 10%.

  • The table above shows the maximum home price households could afford based upon 30% and 40% of their monthly income. Extremely low-income households were able to afford a maximum home price of $51,000 based upon 30% of their monthly income and $68,000 based upon 40% of their monthly income. Low-income households were able to afford a maximum home price of $85,000 based upon 30% of their monthly income and $114,000 based upon 40% of their monthly income. Moderate-income households were able to afford a maximum home price of $137,000 based upon 30% of their monthly income and $182,000 based upon 40% of their monthly income.

f.Housing Affordability - Within Census Tracts

  • There are three (3) census tracts with nearly 50% extremely low and low-income of households;
  • There are nine (9) census tracts with more than 50% extremely low, low, and moderate-income households;
  1. Strategic Plan

The primary goal of the strategic plan is to summarize the priorities and specific objectives to be addressed during the next five years, and to identify the proposed housing and community development activities to be undertaken. The principal objectives are as follows:

Housing

  1. Increase, improve and preserve the supply of affordable housing opportunities for 1,376 extremely low, low and moderate-income families through new construction, rehabilitation, rental and homeownership assistance;
  1. Provide emergency shelters, homeless prevention, and supportive services for 4,365 individuals and families with special needs;
  1. Provide housing with related supportive services for 3,000 individuals including, persons with severe mental illness, physical disabilities, HIV/AIDS, substance abuse, youth, and the elderly;

Nonhousing Community Development

  1. Provide quality public services which meet basic human needs including health care, education, transportation and employment training for 25,000 persons;
  1. Provide technical and financial assistance to small businesses (including micro-enterprises), business incubators, and other commercial ventures through the provision of 250 loans and creation/retention of 500 jobs;
  1. Renovation or repair of 20 public facilities to provide safer and more efficient services, and make facilities more accessible for persons with special needs;
  1. Ensure compliance with federal regulations governing the provision of projects and services including fair housing, equal opportunity, project monitoring and reporting requirements.

4.Action Plan

The City is required to submit an annual action plan for each year of the five-year plan. This section identifies the activities the City plans to undertake during the first year. The activities are as follows:

a.Description of Public/Human Service Activities Planned with Federal Funds

Seventeen (17) activities will be implemented with Community Development Block Grant and Emergency Shelter Grant funds. Thirteen (13) activities focusing on health care, mental health care, senior services, education, and employment will be achieved with $389,480 in Community Development Block Grant funds and four (4) activities concerning homeless services (shelter, food, and employment) will be achieved with $89,000 in Emergency Shelter Grant funds and a match of $89,000 in local Low and Moderate Income Housing Trust Funds.

  1. Description of Non-Public Service Activities Panned with Federal Funds

Eight (8) activities will be implemented with Community Development Block Grant (CDBG) funds. The total amount of CDBG funds for these activities is $2,207,055. These activities will focus on capital improvements, economic development, housing, code enforcement, and planning and administration. It is anticipated that approximately $11 million in CDBG funds will available for these activities over the next five years.

Similarly, eleven (11) housing activities will be implemented with HOME Investment Partnership (HOME) funds. The total amount of HOME for these activities is $1,153,000. These activities will focus on homeownership assistance, homeownership and rental housing rehabilitation, tenant-based rental assistance and special needs housing.