CITY COUNCIL CONSENT CALENDAR SUBJECT:

Transcription

1 CITY COUNCIL CONSENT CALENDAR JULY 18, 2016 SUBJECT: INITIATED BY: RESOLUTION AMENDING THE SCHEDULES FOR THE INCLUSIONARY HOUSING PROGRAM HUMAN SERVICES & RENT STABILIZATION DEPARTMENT (Elizabeth Savage, Director) <UU-- (Peter Noonan, Rent Stabilization and Housing STATEMENT ON THE SUBJECT: The City Council will consider adopting a resolution amending the schedules for the lnclusionary Housing Program setting rent limits, income requirements, and sale prices. RECOMMENDATIONS: Adopt Resolution No. 16- "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD AMENDING THE INCLUSIONARY HOUSING SCHEDULES BACKGROUND I ANALYSIS: Each year the City Council sets the eligible income limits, and maximum rent and sale prices for units in the lnclusionary Housing Program. The adjustment accounts for inflation based on the Consumer Price Index (CPI) for All Urban Consumers in the Los Angeles-Riverside-Orange County Area. On August 19, 2002, the City Council directed that rent levels, income requirements and sale prices be adjusted annually based on the May CPI instead of the June CPI and that a two-tier system (Schedule A and Schedule B) be established. Schedule A sets rents for tenants who signed an inclusionary housing lease after July 1, 2002 based on updated figures from the 2000 Census. Schedule B sets rents for tenants who signed an inclusionary housing lease prior to July 1, 2002 based on the 1980 Census. The attached resolution establishes income limits and rent and sales schedules for existing inclusionary units and any new inclusionary units completed in the next 12 months. There are 187 units in the City's lnclusionary Housing Program, 149 are operated by private landlords and 38 by non-profit housing providers. Currently, there are 136 additional units under construction. Page 1 of 3 AGENDA ITEM 2.W.

2 Affordable Housing Rent - Increase of 1.09% Each property with inclusionary units has an "Agreement Imposing Restrictions on Real Property" establishing that the monthly rent for an affordable unit may be increased one time per year as of September 1 of each calendar year. The maximum increase in monthly rent shall not exceed 75% of the change in the Consumer Price Index between May of the current year and May of the previous year. The CPI change for the 12-month period ending May 2016 was 1.45%. Therefore, the rent levels for inclusionary units will increase by 1.09% this year. Affordable Housing Income Limit - Increase of 1.45% Household income limits for the City's lnclusionary Housing Program are adjusted each year by 100% of the change in the CPI. For a one-person low income household, this is an increase of $678 in the maximum annual income requirement; increasing the eligible annual income from $46,708 to $47,386. Affordable Housing Sales Price Sale prices of inclusionary units cannot exceed 2.5 times the annual income limits or the sale price at which the applicant qualifies for a loan, whichever is less. For a low income one-bedroom unit, the maximum sales price has been adjusted to $77,002, which is an increase of $1, 101 from $75,901. The maximum sales price for a moderate income onebedroom has been adjusted to $118,464, which is an increase of $1,694 from $116, 770. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: This item is consistent with the Primary Strategic Goal(s) (PSG) and/or Ongoing Strategic Program(s) (OSP) of: PSG-2: Affordable Housing. In addition, this item is compliant with the following goal(s) of the West Hollywood General Plan: H-1: Provide affordable rental housing. H-3: Encourage a diverse housing stock to address the needs of all socioeconomic segments of the community. H-6: Promote equal access to housing for all. EVALUATION PROCESSES: Income limits, and maximum rent and sale prices are increased annually to keep pace with inflation. Page 2 of3

3 ENVIRONMENTAL SUSTAINABILITY AND HEAL TH: Housing that is affordable is a major component of environmental sustainability and health, particularly in a dense, transit-oriented, urban context. COMMUNITY ENGAGEMENT: N/A OFFICE OF PRIMARY RESPONSIBILITY: HUMAN SERVICES & RENT STABILIZATION DEPARTMENT I RENT STABILIZATION & HOUSING DIVISION FISCAL IMPACT: None ATTACHMENT: Attachment A - Resolution Amending the lnclusionary Housing Schedules Page 3 of 3

4 RESOLUTION NO. 16- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD AMENDING THE INCLUSIONARY HOUSING SCHEDULES. WHEREAS, in order to maintain affordability of the inclusionary units as defined in Chapter of the West Hollywood Municipal Code, the City Council requires that the rental rates be adjusted annually to reflect seventy five percent (75%) of the change in the Consumer Price Index for all Urban Consumers in the Los Angeles-Riverside-Orange County area and income requirements be adjusted to reflect one hundred percent (100%) of the change in the CPI. These adjustments are set forth in Exhibit A and B; WHEREAS, the City Council adopted an lnclusionary Housing Program, including eligibility requirements, rent level, income guidelines, and other factors by Resolution No. 184 on April 17, 1986 and amendments to the program by Resolution No on September 6, 2005; and WHEREAS, changing conditions in the housing market, and experience with the lnclusionary Housing Program have indicated that certain aspects of the Program be clarified and adjusted to address these changing conditions; THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD DOES HEREBY RESOLVE AS FOLS: SECTION 1. The rent levels and income guidelines set forth in Exhibit A, and attached hereto and incorporated by reference, will serve as the lnclusionary Housing Program Affordable Housing Schedule for all tenants and property owners who have entered into an lnclusionary Housing Lease Agreement on or after July 1, 2002 SECTION 2. The rent levels and income guidelines set forth in Exhibit B, and attached hereto and incorporated by reference, will serve as the lnclusionary Housing Program Affordable Housing Schedule for all tenants and property owners who have entered into an lnclusionary Housing Lease Agreement prior to July 1, ATTACHMENT A

5 Resolution No. 16- Page 2 PASSED, APPROVED AND ADOPTED THIS 18th day of July, ATTEST: LAUREN MEISTER, MAYOR YVONNE QUARKER, CITY CLERK

6 EXHIBIT A SCHEDULE A THE CITY OF WEST HOLLYWOOD AFFORDABLE HOUSING SCHEDULE INCLUSIONARY HOUSING PROGRAM Median Income (one person household): $59,232 Change in Consumer Price Index (CPI): 1.45% General Rent Adjustment (75% of CPI): 1.09% MAXIMUM RENT For tenants with leases signed on or after July 1, 2002 Bedrooms Very Low Low Moderate OBR $426 $617 $851 1 BR $485 $704 $974 2BR $644 $1,029 $1,286 MAXIMUM INCOME* (prior to occupancy of a unit) VERY Number of Persons (50% of Median) l $29,616 2 $31,985 3 $34,355 4 $36,724 5 $39,093 (80% of Median) $47,386 $51,176 $54,967 $58,758 $62,549 (100% of Median) $59,232 $63,971 $68,709 $73,448 $78,186 MAXIMUM INCOME* (maximum allowable after move-in, can be exceeded for up to 2 years) VERY Number of Persons (75% of Median) l $44,424 2 $47,978 3 $51,532 4 $55,086 5 $58,640 MAXIMUM SALE PRICE** Number of Bedrooms 0 l (120% of Median) $71,078 $76,765 $82,451 $88,137 $93, x 65% of Median) $67,376 $77,002 $91,439 $104,433 $117, % of Median) $88,848 $95,956 $103,064 $l10,i72 $117,279 (2.5 x Median) $103,656 $ll8,464 $140,676 $160,667 $181,398 * Income limits are adjusted by household size using the one-person income limit as the base. ** Sales price is adjusted by a bedroom factor. Person 1 Person 2 Person 3 Person 4 Person 5 Person Adjustment Percentage Base 108% 116% 124% 132% Bedroom Adjustment Factor 0 Bedroom Bedroom bedroom Bedroom Bedroom 1.225

7 EXHIBIT B For tenants with leases signed before July 1, 2002 SCHEDULEB THE CITY OF WEST HOLLYWOOD AFFORDABLE HOUSING SCHEDULE INCLUSION ARY HOUSING PROGRAM Median Income (one person household): Change in Consumer Price Index (CPI): General Rent Adjustment (75% of CPI): $46, % 1.09% MAXIMUM RENT Bedrooms Very Low Low Moderate ORR $360 $522 $722 1 BR $413 $595 $826 2BR $565 $854 $1,129 MAXIMUM INCOME * IVERY Number of Persons (50% of Median) 1 $23,156 2 $25,008 3 $26,861 4 $28,713 5 $30,566 MAXIMUM OCCUPANCY INCOME* IVERY Number of Persons (75% of Median) 1 $34,734 2 $37,513 3 $40,291 4 $43,070 5 $45,849 MAXIMUM SALES PRICE (DOES NOT APPLY) (80% of Median) $37,050 $40,014 $42,978 $45,942 $48,905 (120% of Median) $55,574 $60,020 $64,466 $68,912 $73,358 (100% of Median) $46,312 $50,017 $53,722 $57,427 $61,132 (150% of Median) $69,468 $75,025 $80,583 $86,140 $91,698 * Income limits are adjusted by household size using the one-person income limit as the base. Person 1 Person 2 Person 3 Person 4 Person 5 Person Adjustment Percentage Base 108% 116% 124% 132o/o