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SR-11-27-2012-9BCity of City Council Report Santa Moniea° City Council Meeting: November 27, 2012 Agenda Item: To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Analysis of Impediments to Fair Housing Choice Recommended Action Staff recommends that the Council review the attached Draft Analysis of Impediments to Fair Housing Choice and hold a public hearing, receive public comment and approve the Draft. Executive Summary An Analysis of Impediments to Fair Housing Choice (AI) provides a review of public and private sector regulations, policies, procedures, practices and laws to determine the associated impact on access to fair housing choice. A variety of pubtio and private stakeholders and practitioners associated with housing in Santa Monica were consulted during the preparation of the draft Al discussed in this report. The draft Al is the culmination of this effort over the last year and identifies 15 potential public and private sector impediments to fair housing choice and 27 actions that can be taken to address them. Background The City of Santa Monica receives federal Community Development Block Grant and Home Investment Partnership Program grant funds from the United States Department of Housing and Urban Development (HUD), which require an analysis of impediments to fair housing to be conducted every five years as a part of the Santa Monica Consolidated Plan for housing and, if impediments are identified, a plan to address impediments to fair housing. HUD defines fair housing as • a condition in which individuals of similar income levels in the same housing market have a like range of choice available to them regardless of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, or any other arbitrary factor. 0 HUD defines impediments as: ® Any actions, omissions, or decisions taken because of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, or any other arbitrary factor which restricts housing choice or the availability of housing choices; or ® Any actions, omissions, or decisions which have the effect of restricting housing choices or the availability of housing choices on the basis of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, or any other arbitrary factor. Community Process Staff began working with Karen Warner Associates in September 2011 to gather information for the Al. Presentations were made before the following five City Commissions in November and December 2011 to communicate that the Al process was underway and to seek input regarding potential impediments to fair housing choice: • Housing Commission • Social Services Commission • Commission on the Status of Women • Disabilities Commission • Commission for the Senior Commission Commissioner concerns and comments were incorporated into the Al. To ensure that the AI captured community concerns, a workshop was conducted to gather input from public and private agencies. The workshop was attended by affordable housing providers, agencies representing special needs populations, the real estate community and staff from key City Departments. Interviews were also held with key service providers, housing industry representatives and the five most active mortgage lenders in Santa Monica. Additionally, staff provided a preliminary draft of the Al to the Legal Aid Foundation of Los Angeles for review and comment. After the draft Al was prepared, a public notice was published on the City website and in the Santa Monica Daily Press. The draft Al was made available for a 30 -day review and comment period from August 22, 2012 to September 20, 2012. As part of the public 2 review process, the Housing Commission conducted a public hearing as an additional forum for public comment. Comments received during the 30 -day public review, including this public hearing, will be incorporated into the Al. Discussion The draft Al contains a comprehensive community profile of Santa Monica with demographic information, including household composition, income, growth trends, housing types, affordability, employment and transportation. Highlights of the Santa Monica community profile include: • Senior citizens comprise 20 percent of Santa Monica's households. Sixty percent of the City's senior households live alone, 58 percent are renters, and 40 percent of seniors have a disability. Almost one -third of seniors earned extremely low or very low incomes. • An estimated 16 percent of Santa Monica's population has some type of disability, encompassing physical, mental and developmental disabilities • The City has a very high proportion of single individuals living alone, comprising 48 percent of all households in the community. • In the 2010 Census, Santa Monica had 1,419 large households of five or more members of which just under half (47 percent) were renter households. It is estimated that Santa Monica has 7,004 owner - occupied units and 2,735 renter - occupied units of three or more bedrooms. • Approximately 45 percent of Santa Monica renters pay over 30 percent of their income for housing, compared to 40 percent of owners. Renter households earning less than $50,000 were the most impacted by overpayment both in terms of the number (11,700) and proportion (70 percent -91 percent) of households. • Prior to Costa Hawkins, 82 percent of Santa Monica's rental units were affordable to low- income households (less than 80 percent Area Median Income); by 2010, only 17 percent were affordable to households earning low incomes. • Santa Monica's population remains predominately White (70 percent in 2010) and different racial and ethnic groups evidence areas of concentration, defined as census block groups exceeding the countywide average of a particular group. The draft AI also provides an assessment regarding the effect of local laws on the location, availability and accessibility of housing, and further examines how public and 41 private practices and access to employment and transit affect fair housing choice. The Al identifies 15 public and private sector impediments to fair housing choice, including: • With the dissolution of the Redevelopment Agency, redevelopment funds will no longer be available to support Santa Monica's affordable housing activities, impeding the City's efforts to expand housing choice among lower and moderate - income households. • The City's zoning code does not contain a definition of disability or have written procedures in place to allow for deviations from development standards, building codes or permit procedures to provide a reasonable accommodation for persons with disabilities. • When rent controlled apartments are vacated, the subsequent rents are roughly double the previous rents, and above the level affordable for very-low and low - income households. • A review of loans over the past five years identified four census tracts in Santa Monica characterized by high minority or low and moderate- income population which experience loan denial rates above Citywide averages. • Despite the City's continued urging, the Santa Monica Daily Press and the Santa Monica Mirror do not currently publish a fair housing disclaimer in their classified sections. Neither the LA Times nor these two local newspapers include any disclaimer in advertised rental units regarding exceptions to pet prohibitions for disabled persons requiring a service or companion animal. Finally, Section E of the draft Al (Executive Summary, pages E -7 to E -10) outlines recommended actions to further fair housing choice in Santa Monica, including: • Continue the proactive fair housing outreach and education, including reasonable accommodation issues, to Santa Monica residents, apartment owners, managers, and realtors, conducted through the City's Consumer Protection Unit. • Continue to offer counsel to tenants and landlords regarding rights and responsibilities under State and City codes through the City's Consumer Protection Unit. • Incorporate the following definition of "disability" within the Zoning Code consistent with the Fair Housing Act: "individuals with physical or mental impairments that substantially limit one or more major life activities; has a record of such impairment; or is regarded as having such impairment." • Continue to provide financial and regulatory incentives to facilitate the provision of affordable housing throughout the community, particularly in locations near transit and services that promote walkability M • Provide affordable and accessible housing to special needs populations, including the disabled, seniors and persons at risk of homelessness. • Conduct rental audits and /or testing to evaluate apparent patterns of discrimination related to race, familial status and disability. Conclusion and Next Steps Staff recommends that the Council hold a public hearing, receive comments, and approve the Draft Analysis of Impediments. Once adopted, the City will continue addressing the actions identified by the Al to further fair housing choice in Santa Monica. Financial Impacts & Budget Actions There is no financial impact to reviewing the Draft Al. Prepared by: Barbara Collins, Housing Manager Andy Agle, Director 0 Housing and Economic Development Forwarded to Council: Rod Gould City Manager Attachment A: Draft Analysis of Impediments to Fair Housing Choice i'� Attachment available for review in the City Clerk's Office.