2018 Southern California Symposium - Final Presentation
Group 4: Alma Castro, Denise Lopez, Elizabeth Cline, Kelly Redmond, and Nicolas Rodriguez
Team Advisor: Roberto Suro
USC Sol Price Center for Social Innovation
socialinnovation.usc.edu
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LA County Housing Crisis Solutions Symposium
1. What if Los Angeles County
Group 4: Southern California Symposium
June 1, 2018
2. 500,000 New affordable housing units needed
Overall income not keeping pace with expenses
36.2% Average person’s yearly earnings on housing
95% of yearly earnings among the poorest
3.
4. What if no one in Los Angeles County had
to pay more than 27% of their income
towards housing costs?
14. BrentwoodWhat if Santa MonicaLynwoodLong BeachEcho ParkPasadenaSilver LakeWest HollywoodComptonLos Angeles ?
Editor's Notes
Los Angeles County is a fast-growing region, a leader in the creative economy, has the nation’s largest manufacturing base, is the nation’s largest international trade industry. With 88 cities LA County is home to over 10 million people, over 220 languages are spoken and about 35% of the population is foreign born.
As the population has grown, affordable housing stock has not kept up with the needs of its residents. We are now is a housing crisis: to get back on track we need over half-a-million units to house Los Angeles County. This is a enormous, complex problem that needs players contributing at every level.
We think to help each this goal we need to innovate on the local level. Increasing density and stock is a main solution but what if instead of thinking about density as a way that destroys neighborhoods
You do not wipe away the scars of centuries by saying: 'now, you are free to go where you want, do as you desire, and choose the leaders you please.' You do not take a man who for years has been hobbled by chains, liberate him, bring him to the starting line of a race, saying, "you are free to compete with all the others," and still justly believe you have been completely fair... This is the next and more profound stage of the battle for civil rights. -President Lyndon B. Johnson, 1965
TALKING POINTS FOR SLIDE
As the region has grown in population to 10 million residents, the supply of housing has not, leading to an unprecedented housing crisis in the region.
While cities and the County of Los Angeles have worked to speed up the development of multi-family and single-family housing our region still needs over 500,000 new affordable housing units to meet the needs of residents right now.
On average, the low to moderate income families are paying 50-60% of their income on housing costs, and among the most vulnerable some are paying as much as 95%. This is unacceptable, especially for a liberal and progress region like Los Angeles County!
This amount is more than the 32% of the national average and also more than the federal housing standard of paying no more than a third of a person’s adjusted income for housing.
Spending so much on rent leaves households with very little extra monthly cash spend for other important monthly expenses like transportation and child care - annual income not keeping pace with expenses
According to a 2017 National Low Income Housing Coalition report, the inflation-adjusted median rent for Los Angeles County between 2000-2015 was up by 32 percent, while median tenant income dropped by 3 percent.
This translates to a unique set of cultural circumstances in LA County that requires a unique solution.
Everyone in California is burdened by taxes including having one of the highest sales and gas taxes, but we all carry the additional burden of the “Sunshine Tax” in Southern California.
Employers pay lower wages and salaries because their employees want to live in the sunshine in LA County and many people are underemployed and underpaid.
Everyone is California is burdened by taxes including having one of the highest sles and gas taxes, but we all carry the additional burden of the “Sunshine Tax” in Southern California.
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· When it comes to salaries and wages, there is rarely is a cost of living adjustment offered in California.
· This is paired with the fact that home values and rent prices in Los Angeles County continue to increase significantly year after year even through the Great Recession.
The citizens of LA County deserve relief from the rising housing costs. Affordability is as much of a crisis as the homelessness crisis affecting most of the population and it affects the poor and people of color disproportionately.
What if Los Angeles was a place where housing, was affordable for ALL it’s residents?
· The citizens of LA County deserve relief and even a rebate from the rising housing costs that are beyond their control.
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· Affordability is as much of a crisis as the homelessness crisis affecting most of the population and it affects the poor and people of color disproportionately.
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· What if Los Angeles was a place where housing, was affordable for ALL it’s residents?
***Possible place for interactive question (ex Who agrees, that the rent is too darn high? etc)
Los Angeles County has the opportunity to set a new national standard protecting the diversity and beauty of what makes our region special
Our strength is our economic, ethnic, and cultural diversity. Let’s show the nation that ALL people matter and that we are stronger together
What if public policy shifted to enable affordable housing for all and overturns decades of discrimination, segregation, redlining, AND provides equitable access to capital and a healthy quality life for every citizen?
To get there and to start solving our affordable housing crisis and to increase housing stock we should look local and ask all of us as Los Angeles County residents to be a part of the solution.
We believe that a solution to affordable housing, at a cost of no more that 27% of one’s income, begins RIGHT IN YOUR BACKYARD.
Let’s take a look...
A single family home with a spacious green lawn, and maybe even a pool, was the American housing dream, but for the region to thrive, to respond to the real needs of its residents we are going to have to change our thinking.
We will have move away from this turn of the century, ‘urban and suburban home model’ into what is realistic and livable in our region.
For example: In the city of Los Angeles, 28% of multifamily parcels are underutilized.
That is 306,000 opportunities to build something under current zoning.
Let’s just think about that - that could potentially be a 9% increase in overall housing units if we take advantage of those opportunities.
It’s time to GET LOCAL - we are talking about finding usable space and building there. Like available space around transit hubs, existing single family homes, or underutilized urban land zones.
When we change our way of thinking and see the potential in our backyards, and our available space in this region, we see a real resource for filling the affordability gap.
We propose taking a deeper look at ADUs - Accessory Dwelling Units-
these are a quick, vastly underutilized, low-cost permanent housing solutions, that can be built in backyards or adjoining lots.
Let’s turn them into the new model of the single or multi-family housing structure in LA County.
But to look at this new model, let’s consider the old model: The ubiquitous Craftsman house. It originated in Southern California and was most popular house style America had ever known. In fact you could mail order your craftsman bungalow from the Sears catalog.
New processes of mass-production reduced overall cost of homebuilding, which means that by 1930, Los Angeles had more single-family dwellings that any comparable city, with 94% of its families living in single-family homes.
This innovative, simple, small, single-family home that was inexpensive and easily built is some of what got us into this housing crisis, but also might hold a solution to getting us out of i. What if in your backyard was the new Craftsman of LA County?
The new craftsman could be made with affordable and eco friendly materials: for example technology is developing rapidly around 3D printing homes.
Now we see increasing density and stock is main objective, but we also want this solution change our way of thinking about density: instead of thinking about density as a way that destroys neighborhoods, can we think about density as a way to bring neighborhoods together? An opportunity to keep residents where they live and keep character of neighborhoods in tact?
This is an opportunity for individuals to take control of where they live, and their livelihood, and the right to affordable housing while helping to solve one of the region’s most pressing issues and the answer is RIGHT IN THEIR BACKYARD.
We want to make it easy: We want to bring the solution to individual and smaller nonprofit developers who have been creatively contributing to affordable housing stock in Los Angeles County for more almost forty years.
Imagine a one stop shop where municipalities went from regulators to helping homeowners navigate the process each step of the way
It would require changing the rules: We envision the future of LAC urban neighborhoods as a small town/community/multigenerational family setting- it’s no longer big developers deciding who lives in our neighborhoods.
This would put power in the hands of homeowners, neighbors, communities, and businesses. Let the homeowner lead the creation of the future stock of housing and the creation of jobs and income.
We want the money to stay in neighborhoods, to strengthen the local economy. We can change the way financing works: creating new ways to use home equity / recapitalize property (income stream..). We could fundamentally change the way we think about about capital
One such way… is through
Public & Private Social Innovation
Through the cultivations of diverse public and private partnerships, homeowners can potentially be eligible to increase their equity and home value, maximizing the economic potential of their property.
BUT --- These types of partnerships will not only promote increased a revenue stream for homeowners but importantly provide affordable housing options for renters.
And It’s investment in neighborhoods
Build a micro economy by providing homeowners with income, and family or neighbors with affordable housing, and providing jobs and training for your neighbors - Triple bottom line.
[Showcase the business owners, construction worker, and artist pics]
Possible programs
Create a CBO/nonprofit that would create, oversee this program. Imagine the local neighborhood receives training to administer, construct and rent these ADUs.
A neighborhood where that’s both diverse culturally, socially, and economically
Remove barriers to create new housing developments….
Imagine the local neighborhood receives training to administer, construct and rent these ADUs.
Additional Talking Points:
Create incentives for public private partnerships to create diverse housing options that increase density near employment hubs (Diverse investors, CBOs like NHSLAC, etc)
Enlist employers to create a workforce housing programs and initiatives that impact affordability and accessibility to rental and ownership opportunities within 30 minute commute to their workplace.
Expanding access to housing subsidies for homeownership to moderate income Angelenos up to 150% AMI.
Allowing flexibility to renters and owners to generate income for short term subletting of their rental units and houses. (One stop shop)
Incorporate workers into opportunities
We think about density as a way to increase and strengthen the social and cultural fabric of neighborhoods. For example, this ADU solution has the potential for:
Aging in place and staying close to family: A older couple who wants to stay in their neighborhood builds an ADU to live in while renting their home to a family member.
The college student looking for rent affordable temporary to long-term housing
The young professionals: A young professional who is starting out has an opportunity to rent a home near to work, with a commute less than 30 minutes.
Envision a neighborhood that is able to provide a place for each stage of someone's life that is inclusive: both ethnically and economically diverse. A neighborhood that allows its residents to stay in their neighborhood.
This is the picture you might have seen of Hollywood’s view of the “future Los Angeles.” But the future of LA County doesn’t need to be a post-apocalyptic movie.
While our ADU proposal does not solve all the housing problems in our region it’s a solution driven by residents to contribute to the collective remedy.
It’s a solution that can happen in the not so distant future.
By rethinking our views on housing, we will begin to close the housing affordability gap...by seeing ourselves as part of the solution, we will begin to identify ways to make room for everyone, and make sure housing in the region remains affordable for all…
This is a call to action for LA County.