Agenda 6:00 Introductions (Everyone: name, affiliation, goal for tonight) 6:05 Housing Stories (Everyone shares with person next to them; 3 or 4 people share their story with the group) 6:25 Steve Vagnini, County Assessor (Housing Costs) 6:45 MBEP Housing Initative And The 3-A’s for Understanding Housing 7:10 Pacific Grove Housing Ideas 7:30 Closing Remarks
Housing Stories
Housing Costs Steve Vagnini, County Assessor
Monterey Bay Economic Partnershp
Monterey Bay Economic Partnership
VISION A thriving region for all residents MISSION To improve the economic health and quality of life in the region
Values
Our Members: 80+ Strong and Growing
Board of Directors Supported by regional leaders who are ready to make a difference Carrie Birkhofer Dr. Gary Griggs René Mendez Nina Simon President & CEO Director, UCSC Institute City Manager Executive Director Bay Federal Credit Union of Marine Sciences Gonzales Museum of Art and History Dr. George Blumenthal Claude Hoover Nan Mickiewicz, MD Bruce Taylor Chancellor CEO CEO CEO UCSC Veritas RE Dominican Hospital Taylor Farms Lorri Koster Dr. Eduardo Ochoa Barbara Thompson Bud Colligan CEO President Senior Vice President Founder & CEO Mann Packing CSUMB Wells Fargo & Company South Swell Ventures Brad van Dam Ray Corpuz Mary Ann Leffel George Ow, Jr. President Chairman CEO City Manager Marich Chocolates Salinas MCBC Ow Family Properties Larry deGhetaldi, MD President PAMF, Santa Cruz
Our Strategies • Affect change through focused initiatives ; 2015/16 they are: (1) Workforce Development and (2) Building a Tech Ecosystem and (3) Housing • Advocate for and support the creation & retention of new jobs and businesses which support a sustainable region • Be the go-to source for tri-county data
MBEP Housing Strategy Nonprofit Private Monterey Employer Bay Advocacy Sponsored Housing Policy|Projects Housing Trust “MBEP has done much in four short months to move from conversation to action in concrete ways that will help solve the housing problem in the region.” Linda Mandolini, President, Eden Housing
MBEP Advocacy Strategy • Organize and activate a broad-based coalition to increase the supply of housing in our region – Partner with community groups and agencies like COPA, CCA, Landwatch – Work with affordable housing providers MidPen, Eden Housing, CHISPA, Habitat for Humanity – Engage private developers, real estate industry, unions, and employers around common goals – Coordinate with city and county housing and planning departments
A Basic Understanding of the Housing Need is Important for Effective Advocacy
Affordable Housing Provides Access and Opportunity ELECTIONS TRANSIT RELIGION HOME MEDICAL EDUCATION SHOPPING PARKS JOBS
Housing Development Provides Economic Stimulus Fuels the Local Economy • Generates fees & taxes for local governments • Vital construction jobs • Building materials demand • Property management jobs • Residential services & furnishings • Generates investment • Increases property values
Three Ways to Measure Housing Needs The 3 A’s of Housing – o Housing Affordability o Housing Adequacy o Housing Availability
What is an Affordable Payment? • Federal statutory standard for “affordable” housing payment is 30% of gross household income. • Same standard used in state and local programs. • Up until 1980s, standard was 25%. Over years, pressure in Congress to increase above 30%. • Moderate Cost Burden – Payment 31-50% of gross income • Extreme Cost Burden – Payment over 50% of gross income
What Income Qualifies Households for Government Housing Assistance? Based on Area Median Income (AMI) adjusted for household size, federal, state, local programs use income ranges or “bands” to determine whether gross annual income (before taxes) low enough to qualify. a. Median Income (AMI) – Gross annual income level in defined area (MSA or county), half households above, half below ( $81,400) b. Moderate Income – Gross annual income 81-120% AMI ( $97,680 ) c. Low Income – Gross annual income 51-80% AMI ( $65,120) d. Very Low Income – Gross annual income 31-50% AMI ($40,700) e. Extremely Low Income – Gross annual income <30% AMI ($24,420)
Monterey City median rent nearly twice the U.S. $2,800 Monterey $2,677 $2,600 City Median Rent (2016 dollars) $2,400 California $2,373 $2,314 $2,200 $2,137 Monterey $2,000 County $1,800 Salinas City $1,600 U.S. $1,400 $1,395 $1,200 $1,000 2011 2012 2013 2014 2015 2016 Source: Zillow Rental Index Multifamily, SFR, Condo/Co-op Time Series, January 2011 - December 2016 Monterey Bay Economic Partnership
15% of families in the Monterey County area can afford a median price home 90% % of families that can afford a median price home 80% 70% U.S. 60% 60% 50% 40% 30% 20% Salinas, CA 15% MSA 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The Housing Opportunity Index (HOI) for a given area is defined as the share of homes sold in that area that would have been affordable to a family earning the local median income, based on standard mortgage underwriting criteria. Source: National Association of Home Builders (2016). 2006-2016 NAHB - Wells Fargo Housing Opportunity Index (HOI) Monterey Bay Economic Partnership
High and low wage jobs in Monterey County $140,000 Doctors Median Annual Earnings (2015 Dollars) $120,000 Computer related $100,000 Education, training, $80,000 and library Construction $60,000 $40,000 Building and grounds maintenance $20,000 Food preparation and serving $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: American Community Survey, 1-yr estimates, 2005-2015 Monterey Bay Economic Partnership
Affordable rents by job sector in Monterey County Median Monthly Income Rent $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Median market rate rental $2,176 Public administration $5,580 $1,674 $5,189 Professional, scientific, and technical services $1,557 $4,922 Educational services $1,477 $4,359 Information $1,308 $4,212 Finance and insurance $1,264 $3,997 Real estate and rental and leasing $1,199 $3,686 Health care and social assistance $1,106 $3,510 Construction $1,053 $3,411 Manufacturing $1,023 $3,102 Arts, entertainment, and recreation $930 $2,656 Retail trade $797 Administrative, support and waste management $2,619 $786 Other services $2,586 $776 $1,969 Accommodation and food services $591 Affordable Rent rates calculated based on 30% income standard. Source: American Community Survey, 2015 5-yr estimates, Zillow Rental Index Multifamily, SFR, Condo/Co-op Time Series, January 2016 Monterey Bay Economic Partnership
What is Housing Adequacy? Conventional definition of “adequate” housing largely framed in terms of physical conditions: • Lack of plumbing, ventilation, light • Lack of water and sewer • Overcrowding • Substandard conditions, e.g., faulty wiring, leaky roof, subsiding foundation, failing materials and appliances • Need to also focus on appropriateness, e.g., family cycle- and age-related, location
What is Housing Availability? Analysis of “availability” typically located within market analyses of supply and demand. Is there an equilibrium or disequilibrium (mismatch) between what’s needed and available? Typically measured by: • Vacancy rate • # of low-income households vs. # of affordable units • # of households w/special needs v. # appropriate units
Regional Housing Needs
Pacific Grove RHNA
Advocacy Tools
Advocacy: Regional Housing Pipeline • Now Available! Regional Housing Pipeline Map
Action Center
Pacific Grove Housing Ideas
Ideas for Collaboration
Source Sites • Housing Element Opportunity Sites • Non Profit Developers – MidPen, CHISPA, Eden, EAH, First Community… • Unconventional– hospitality, churches, school districts, hospital systems, unions
Support Policies • Inclusionary Housing Ordinances • Infrastructure in Support of Housing (Water Allocations, Public Transit) • Higher Density Housing Near Transit and Services • Accessory Dwelling Units (Granny Flats) • Restrictions on Short Term Rentals • Employer Sponsored Housing Development • More Funding for Low and Moderate Income Housing (Local, State, Federal, Private sources)
Thank You Join our Action Center http://www.mbep.biz/Housing/ActionCenter.aspx Bill Peake PG Councilmember Matt Huerta MBEP Program Manager mhuerta@mbep.biz
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