2012 LA Mayoral Housing, Transportation & Jobs Summit - UCLA Anderson School of Management and UCLA School of Law professor Paul Habibi presents his centerpiece report, "Livable Communities: Enhancing Economic Competitiveness in Los Angeles County." For more information or to contact us, please visit www.grayslakeadvisors.com.

1. BUILDING LIVABLE COMMUNITIES:
Enhancing L.A. County’s Economic Competitiveness
Paul Habibi
UCLA Anderson School of Management
Richard S. Ziman Center for Real Estate
Los Angeles Business Council
2012 Mayoral Housing, Transportation and Jobs Summit
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2. Objectives of this Report
1. Update the 2008 Workforce Housing Scorecard
2. Identify the Jobs-Housing Balance in L.A. County
3. Assess the availability of workforce housing (for households
earning 50% to 120% of AMI) near jobs & transit facilities
4. Recommend policy strategies for encouraging additional
investment in workforce housing & livable communities
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3. HOW DID WE GET HERE?
TRENDS FROM 2008 - 2012
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4. 2008 Workforce Housing Scorecard
The 2008 Scorecard concluded:
Jobs and housing should ideally be co-located, at healthy ratio of 1.5:1
Varying degrees of mismatch in L.A. County’s 88 cities
Need more workforce housing in jobs-rich communities, and vice versa
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5. Since then, a lot has changed…
Renewed focus on rental housing is a secular trend
Housing crisis and downward spiral of prices
Tightened lending standards
Changed views on homeownership
Renewed focus on rental housing
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6. Owning and Renting Both Remain Unaffordable
55% of owners, 59% of renters considered “cost burdened” by HUD
Median Existing Home Price, L.A. County
$600,000
$500,000
$400,000
$300,000
$200,000 120% AMI
Affordability
$100,000
Threshold
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: U.S. Census Bureau American Community Survey
• Median rent is $1,797/mo, median household can afford $1,325/mo
• Gap is expected to increase given strong rent growth projections
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7. If You Could Afford to Live Here, You’d Be
Home By Now…
Real housing costs are increasing, and affordability gap between L.A.
and other regions is widening
CPI Housing Index for Select Metro Areas (2000-2011)
150.0
145.0 Los Angeles CMSA
140.0
135.0 Los Angeles CMSA
130.0 New York CMSA
125.0 Seattle CMSA
120.0
Dallas CMSA
115.0
110.0 San Francisco CMSA
105.0 San Diego MSA
100.0
Chicago CMSA
Source: U.S. Census Bureau American Community Survey
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8. THE NEED FOR
WORKFORCE HOUSING
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9. Workforce Housing Remains Undersupplied
SCAG
2012
Regional
Housing
Needs
Assessment:
L.A.
County
WORKFORCE
HOUSING
Moderate
Above
Moderate
Very
Low
Income
Low
Income
Income
(80
to
Income
(>120%
Total
(<50%
AMI)
(50
to
80%
AMI)
120%
AMI)
AMI)
2014
–
2021
45,720
27,497
30,074
76,779
180,070
Annually
5,715
3,437
3,759
9,597
22,509
2012
Level
13,100
9

10. Workforce Housing Remains Undersupplied
SCAG
2012
Regional
Housing
Needs
Assessment:
L.A.
County
WORKFORCE
HOUSING
Moderate
Above
Moderate
Very
Low
Income
Low
Income
Income
(80
to
Income
(>120%
Total
(<50%
AMI)
(50
to
80%
AMI)
120%
AMI)
AMI)
2014
–
2021
45,720
27,497
30,074
76,779
180,070
Annually
5,715
3,437
3,759
9,597
22,509
2012
Level
13,100
• To accommodate workforce, an average of 22,509 new
units/year will have to be built
• Including 7,196 new workforce units/year
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11. Workforce Housing Remains Undersupplied
SCAG
2012
Regional
Housing
Needs
Assessment:
L.A.
County
WORKFORCE
HOUSING
Moderate
Above
Moderate
Very
Low
Income
Low
Income
Income
(80
to
Income
(>120%
Total
(<50%
AMI)
(50
to
80%
AMI)
120%
AMI)
AMI)
2014
–
2021
45,720
27,497
30,074
76,779
180,070
Annually
5,715
3,437
3,759
9,597
22,509
2012
Level
13,100
• Most affordable housing programs target households
earning less than 80% AMI, leaving much of workforce
housing as the “donut hole” in the middle of the market
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12. Foster Private Development – And Capitalize On It
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13. Foster Private Development – And Capitalize On It
Density Allow additional density in target areas by-right
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14. Foster Private Development – And Capitalize On It
Density Allow additional density in target areas by-right
Increase & Streamline Identify and help provide developers with new
Public Funding sources of funds
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15. Foster Private Development – And Capitalize On It
Density Allow additional density in target areas by-right
Increase & Streamline Identify and help provide developers with new
Public Funding sources of funds
Categorical exemptions, Master EIRs, and
CEQA Updates
streamlined review/appeal process
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16. Foster Private Development – And Capitalize On It
Density Allow additional density in target areas by-right
Increase & Streamline Identify and help provide developers with new
Public Funding sources of funds
Categorical exemptions, Master EIRs, and
CEQA Updates
streamlined review/appeal process
Leverage Catalytic Cities should reap the benefits of private
Projects investments near transit
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17. High Risk Project = High Price Points
Value Chain
Risk Required Return
Site Acquisition
Higher Higher
Entitlements: Planning and Design
Permits and Bidding
Construction (Rough and Finish)
Lower Sales and Marketing Lower

18. Filling the Void of RDAs: Empower Public Agencies to
Act as Development Agencies
• Land Acquisition & Assemblage
To shoulder predevelopment risk
• Public Agencies Thinking Like Developers
Expansion on Metro’s existing development platform
• JVs as Income Streams
Joint ventures can create cash flow for future projects
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19. LIVABLE COMMUNITIES
Developing Transit Corridors to Connect Jobs and
Housing
19

20. Transit Alleviates Jobs-Housing Dislocation
Measures R & J Provide Much-Needed Connectivity
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21. Using Transit to Connect Jobs and Housing
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Legend
Owner Occupied Housing Price
Below $160,000
$160,000 -­$ 240,000
CO
$240,000 -­ $400,000
SANTA
$400,000 -­ $560,000 MONICA
Above $560,000
No Data Available
CO
CO
Jobs-­Housing Ratio >1.5
Expo Line Phase 1
Expo Line Phase 2
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22. Using Transit to Connect Jobs and Housing
The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
Legend
Owner Occupied Housing Price
Below $160,000
$160,000 -­$ 240,000
CO
$240,000 -­ $400,000
$400,000 -­ $560,000
Above $560,000
No Data Available
CO
Jobs-­Housing Ratio >1.5
Expo Line Phase 1
Expo Line Phase 2
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23. Using Transit to Connect Jobs and Housing
Legend
Owner Occupied Housing Price
Below $160,000
$160,000 -­$ 240,000
CO
$240,000 -­ $400,000
$400,000 -­ $560,000
Above $560,000
No Data Available
CO
Jobs-­Housing Ratio >1.5
Expo Line Phase 1
Expo Line Phase 2
Keys to Livable Corridors:
Develop mixed-income housing near transit facilities
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24. Using Transit to Connect Jobs and Housing
Legend
Owner Occupied Housing Price
Below $160,000
$160,000 -­$ 240,000
CO
$240,000 -­ $400,000
$400,000 -­ $560,000
Above $560,000
No Data Available
CO
Jobs-­Housing Ratio >1.5
Expo Line Phase 1
Expo Line Phase 2
Keys to Livable Corridors:
Don’t forget about employment generating land uses
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25. Invest in the Development of Livable
Corridors Along Transit
Use transit assets to connect jobs-rich neighborhoods to areas where
workforce housing can be developed more easily
Target new investment in close proximity to transit
Targeted Investment
lines
Use transit station plans & community plans to
Land Use Planning
allow denser mixed-use development near transit
Shift focus from single-project TODs to livable
TOD to Transit Corridor
community development
Connections expand the developable footprint
First / Last Mile
around transit nodes
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26. Importance of Development Near Transit
Share of Residents and Workers Using Rail, Subway, or Streetcar
12%
10%
8%
6%
4%
Residents
Workers
2%
0%
under 1/4 mile 1/4-1/2 mile 1/2-1 mile 1-2 miles 2-3 miles 3-5 miles 5-10 miles beyond 10
miles
Distance to nearest transit node
Source: Public Policy Institute of California
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27. Developing Livable Corridors Along
Transit
Example: Utilize new transit assets + first mile / last mile systems to
increase developable footprint and create workforce housing connected to
jobs through livable corridors.
27

28. Developing Livable Corridors Along
Transit
Example: Utilize new transit assets + first mile / last mile systems to
increase developable footprint and create workforce housing connected to
jobs through livable corridors.
28

29. Developing Livable Corridors Along
Transit
Example: Utilize new transit assets + first mile / last mile systems to
increase developable footprint and create workforce housing connected to
jobs through livable corridors.
29

30. Developing Livable Corridors Along
Transit
Example: Utilize new transit assets + first mile / last mile systems to
increase developable footprint and create workforce housing connected to
jobs through livable corridors.
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31. 1. Invest in the Development of Livable
Corridors Along Transit
Report
Recommendations
2. Foster Private Development – and
Capitalize On It
3. Emphasize Development of Mixed-
Income Housing Near Transit
4. Plan for Employment Generating
Land Uses
5. Empower Public Agencies to Act as
Development Agencies
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