Increase Access to Stable and Affordable Housing

Increase Access to stable and affordable housing

This document provides context and information related to housing for homeless and at risk population in San Francisco. As the Local Homeless Coordinating Board prepares a new strategic plan to end homelessness, this chart will inform the planning committee as it drafts the section of the Plan related to increasing access to stable and affordable housing.

The following chart provides a high level overview of recent homeless planning initiatives surrounding the issue of housing. Goals are drawn from the following three plans: Toward Ending Homelessness in San Francisco, the city’s most recent 5 year plan; the San Francisco Plan to Abolish Chronic Homelessness, the city’s 10 year plan; and Opening Doors, the federal strategic plan to prevent and end homelessness.

Toward Ending Homelessness in San Francisco 2008-2013 / San Francisco Plan to Abolish Chronic Homelessness ("10 Year Plan") / Opening Doors: Federal Strategic Plan to Prevent and End Homelessness 2010
Priority 1: Increase the supply of permanent housing that is subsidized as required to be affordable to people who are experiencing homelessness, that is accessible and that offers services to achieve housing stability. / Increase local, state and federal resources to sustain and increase San Francisco's investment in permanent supportive housing / Objective 3: Provide affordable housing to people experiencing or most at risk of homelessness
Maintain high quality and cost effective supportive housing that is responsive to the needs of residents
Eliminate unnecessary tenant selection criteria that impede the access of chronically homeless individuals and families to supportive housing
Create an additional 3000 supportive housing units or beds for the chronically homeless by 2014 / Objective 4: Provide permanent supportive housing to prevent and end chronic homelessness
Increase affordable housing options with support for people with mental health/behavioral problems so as to avoid behavioral issues.
Create supportive housing options that are available to chronically homeless persons with criminal records

Background and Context

This section of this document contains a variety of information about the local and Federal landscape relating to homeless housing, including housing costs, affordable housing production goals and funding, the homeless housing pipeline, and Federal funding.

San Francisco Real estate Market

San Francisco was the second fastest growing metropolitan area in California between 2011-2012 according to the US Census, and despite the fact that the Bay Area has seen construction above normal levels, the rental market remains highly competitive.[1] Although the market appears to have plateaued in January, San Francisco remains the most expensive rental market in the nation with an average monthly rent of $2,741.[2]

HUD FY2013 Fair Market Rates

A significant gap exists between the city’s rental market and fair market rate as determined by the Department of Housing and Urban Development. This disparity exacerbates the challenges local HUD-funded housing providers face in their attempt to provide an adequate inventory of deeply affordable housing.

San Francisco County, California is part of the San Francisco, CA HUD Metro FMR Area, which is comprised of the following counties: Marin County, California; San Francisco County, California; and San Mateo County, California.

Final FY 2013 FMRs by Unit Type
Efficiency / Studio / One Bedroom / Two Bedroom / Three Bedroom / Four Bedroom
$1,093 / $1,423 / $1,795 / $2,438 / $2,948

Housing Production Goals

Pursuant to California law, the Association of Bay Area Governments (ABAG) develops Regional Housing Needs Plans that determine how many housing units, including affordable units, each community must plan to accommodate. San Francisco’s portion of the plan is implemented via the Housing Element of the city’s General Plan.[3]

2007-2014 San Francisco Housing Production Goals

Households’ Income as Percent of Average Median Income / Unit Goal / Percent of Total
Extremely Low Income (<30% AMI) / 3,294 / 10.6%
Very Low Income (31% - 49% AMI) / 3,295 / 10.6%
Low Income (50% - 79% AMI) / 5,535 / 17.7%
Moderate Income (80% - 120% AMI) / 6,754 / 21.7%
Market (> 120% AMI) / 12,315 / 39.5%
Total / 31,193 / 100%

Development and Funding Sources for Affordable housing

The San Francisco Redevelopment Agency (SFRA), the Mayor’s Office of Housing (MOH), and the San Francisco Housing Authority, have been the main funders of affordable housing in San Francisco. In December 2011, the California Supreme Court upheld the state’s authority to eliminate redevelopment agencies, significantly changing the financing for affordable development in CA.[4]

Funding for affordable housing development has been provided largely by gains in property tax revenues that result from redevelopment, bonds, affordable housing fees charged to developers, inclusionary affordable housing built by developers, Federal and State tax credits, and financing provided by HUD.[5]

Funding Sources for Affordable Housing in San Francisco

Source of Financing / Total Financing FY2002-03 through FY2010-11 / Percent of Total
Tax Increment Revenues and Bond Proceeds / $460,130,116 / 24%
City Affordable Housing Fund / $95,961,640 / 5%
Developer Contributions and Housing Income / $73,371,353 / 4%
City Hotel Tax or Contributions in Lieu / $47,623,208 / 2%
City General Fund / $30,000,000 / 2%
City Proposition A Affordable Housing Bonds / $18,053,081 / 1%
City and Local Total / $725,139,398 / 38%
State Propositions 46 and 1C Affordable Housing Bonds / $286,129,994 / 15%
State Tax Credits / $57,654,092 / 3%
California Department of Housing and Community Development / $8,190,000 / 0%
California Housing Finance Agency / $4,100,000 / 0%
State Total / $356,074,086 / 19%
Federal Tax Credits / $634,609,090 / 33%
Federal CDBG, HOME and HOPWA Grants / $194,768,626 / 10%
Federal Total / $829,377,716 / 43%
Total / $1,910,591,200 / 100%
SOURCE: Performance Audit of San Francisco's Affordable Housing Policies and Programs, January 2012

SOURCE: Performance Audit of San Francisco's Affordable Housing Policies and Programs, January 2012

Proposition C

San Francisco voters passed Proposition C in the November 2012 election, approving a $1.5 billion investment in low and moderate-income housing construction and related programs over 30 years. Proposition C created a trust fund which will receive $20 million in its first year, with increasing amounts contributed each year up to $50 million annually by year 12. Although the bulk of these funds would be used to develop units targeted at households earning up to 120% of the area’s median income, it also will be a source for the 8,000 units already in the Mayor’s affordable housing pipeline, which are targeted to households earning 60% area median income and below.

MOH Development Pipeline for Permanent supportive housing units

The Mayor’s Office of Housing created a permanent supportive housing pipeline in response to the San Francisco Plan to Abolish Chronic Homelessness goal of creating 3,000 permanent supportive housing units for chronically homeless individuals by 2014. Although the pipeline has identified 2,958 new supportive housing units by 2014, 99% of its goal, few additional projects are scheduled to come online after that date.
Projects still under development are listed below, totaling 563 units.
Project / Sponsor / Projected Completion / CH Units / Running Total
Transbay Block 11 / Bridge / CHP / October 2013 / 120 / 120
1075 Le Conte / Mercy / Providence / September 2013 / 72 / 192
Edward II / CHP / July 2014 / 24 / 216
1180 4th Street / MHC / August 2014 / 25 / 241
1100 Ocean (Phelan Loop) / BHNC/MHC / December 2014 / 25 / 266
121 Golden Gate Senior Community / Mercy / September 2014 / 18 / 284
Broadway/Sansome / CCDC / January 2015 / 18 / 302
1500 Page Street / Mercy / July 2014 / 15 / 317
Booker T. Washington / BTWCSC/JSCO / TBD / 24 / 341
Caroll Ave. Senior / BVHP/MBS / September 2014 / 25 / 366
Rosa Parks II / TNDC/SFHA / February 2015 / 20 / 386
Eddy and Taylor / TNDC / TBD / 30 / 416
Parcel U (Homeless Youth) / TBD / TBD / 30 / 446
Mission Bay South Parcel 3 / TBD / TBD / 97 / 543

Sequestration

On March 1, 2013, the President was required by law to issue a sequestration order canceling approximately $85 billion in budgetary resources across the federal government for the remainder of the federal fiscal year.

Sequestration will result in slightly more than five percent cuts to nearly all programs within the Department of Housing and Urban Development (HUD). The cuts will have a more immediate impact on programs that are not funded through yearly grants, such as Section 8 Housing Choice Vouchers and Public Housing. ESG funding recipients can expect a five percent reduction from the FY 2013 level for which they are eligible. CoCs and CoC Program recipients will be impacted via the FY 2013 CoC Program Competition that will begin later this year. Sequestration will not impact the FY 2012 CoC Program awards since that funding was already appropriated (FY 2013-2014 CoC grants will not be reduced by sequestration). The cuts will also have impacts on the Housing Opportunities for Persons with AIDS (HOPWA), HOME Investment Partnerships, and the Community Development Block Grants (CDBG) programs, among others. HUD VASH funding is exempt from sequestration.

Program / Total FY 2012 Amount (approximate) / ~5% Cut / New Funding Amount
CoC / $23,337,418.00 / -$1,166,870.90 / $22,170,547.10
ESG / $1,609,318.00 / -$80,465.90 / $1,528,852
CDBG / $16,204,214.00 / -$810,210.70 / $15,394,003.30
HOME / $3,961,797.00 / -$198,089.85 / $3,763,707.15
HOPWA / $9,731,577.00 / -$486,578.85 / $9,244,998.15

PLANNING FOR Permanent Housing FOR HOMELESS POPULATIONS

This section of this document provides information about the Federal and local planning efforts regarding housing for homeless populations.

Expanding the supply of affordable permanent housing has been a top city priority and a crucial step towards meeting United States Interagency Council on Homelessness’ goal of ending chronic homelessness by 2015.[6] In order to be accessible to those experiencing homelessness, this housing must be deeply subsidized and affordable to people who have extremely low incomes, 0-30% of the area median income (AMI).[7]

Permanent housing provides the essential base of stability and security required to address the underlying causes of homelessness. Securing housing facilitates subsequent efforts to improve client health and well-being, maximize self-sufficiency and foster community integration.

For many people who are homeless, in particular those who are repeatedly homeless and/or suffering from a disabling condition, the housing must be linked with services.[8] The Opening Doors calls on communities to provide an adequate supply of permanent supportive housing to prevent and end chronic homelessness.[9]

In the 2008 LHCB plan, which incorporated the San Francisco plan to end chronic homelessness, strategies to enhance the City’s supply of affordable permanent housing and permanent supportive housing for homeless people included:[10]

• Development of new deeply subsidized units by both non-profit and for-profit developers;
• Enhancing access to existing housing through subsidies, master-leasing and making tenant selection criteria more flexible;
• Preservation of existing units.

What qualifieD as permanent housing?

According to the 2008 LHCB plan, permanent Housing in San Francisco should meet the following standards:[11]

• Each unit is equipped with:
• A place to sleep
• A place to cook
• A bathroom
• Residents have rights of tenancy
• Buildings and units are designed to ensure universal accessibility
• Buildings and units meet codes for safety
• Rental rates do not exceed 30% of the tenant’s income
• Supportive Housing: the unit is linked to voluntary and flexible support services that meet the needs and preferences of the tenant so the tenant remains house

Note: Not all current permanent housing and permanent supportive housing units meet these standards. At a minimum, all units should afford the resident the right to tenancy and comply with codes for safety.[12]

INITIATIVES RELATING TO INCREASING HOUSING SUPPLY

• Increase the number of permanent deeply affordable housing units for homeless individuals and families. Supportive services should be available as needed to assist tenants in maintaining their tenancies.[13]
• Increase access for homeless individuals and families to permanent housing that is affordable to them despite citizenship/ immigration status, and despite eviction, credit and/or criminal histories.[14]
• Preserve existing permanent deeply affordable housing units for individuals and families.[15]
• Support actions that increase resources for the creation of permanent housing.

EFFECTS OF LOCAL PLANNING EFFORTS ON HOUSING FOR HOMELESS POPULATIONS

The following charts show the changes in number of beds for homeless and chronically homeless persons in San Francisco over the past several years, and related, the number of chronically homeless people enumerated in the biannual point-in-time count.

SOURCE: Housing Inventory Chart, Human Services Administration

HomeBase| Advancing Solutions to Homelessness1

[1] US News, 4 Trends for Spring Home buying Season, March 29, 2013

[2] San Francisco Chronicle, S.F. apartment market is hot, January 31, 2013

[3]Performance Audit of San Francisco Affordable Housing Policies and Programs, January 2012.

[4]ibid

[5] ibid

[6] Opening Doors: Federal Strategic Plan to Prevent and End Homelessness, 7.

[7] Toward Ending Homelessness in San Francisco, 13.

[8] Toward Ending Homelessness in San Francisco, 13.

[9] Opening Doors: Federal Strategic Plan for Ending Homelessness, 38-39

[10] Toward Ending Homelessness in San Francisco, 14.

[11] Toward Ending Homelessness in San Francisco, 14.

[12] Toward Ending Homelessness in San Francisco, 14.

[13] Toward Ending Homelessness in San Francisco, 14. See San Francisco Plan to Abolish Chronic Homelessness, 56, 58, 61.

[14] Toward Ending Homelessness in San Francisco, 15. See San Francisco Plan to Abolish Chronic Homelessness, 36, 60.

[15] Toward Ending Homelessness in San Francisco, 16. See San Francisco Plan to Abolish Chronic Homelessness, 57.