The Critical Role of Housing Access and Affordability in Reducing Poverty
APRIL 28, 2015 | The California Housing Partnership released a new report today that highlights the connection between high housing costs and rising poverty rates throughout the state. The report, "Update on California's Affordable Housing Crisis: The Critical Role of Housing Access and Affordability in Reducing Poverty," explains how high housing costs place severe financial burden on low-income families, leaving the state's lowest income households with few resources left for food, transportation, healthcare, and other essential needs.
KEY FINDINGS:
California has a shortfall of 1.54 million rental homes for extremely low-income (ELI) and very low-income (VLI) renter households, and it affects every county in the state.
[1]
When housing costs are factored in, California has the highest poverty rate in the nation (22%).
One in four children in California lives in poverty.[2]
96% of ELI and VLI renters who don't have access to an affordable home are severely rent burdened.
On average, the state's lowest-income households spend 67% of income on housing costs.
California has the worst renter overcrowding in the country. In fact, California is home to 30% of the nation's overcrowded renters, but only 12% of the overall population.
Since 2000, median rent has increased by 21% while median renter income has declined by 8% (adjusted for inflation).
State and federal investment in the production and preservation of affordable housing in California dropped 69% since the great recession.
POLICY RECOMMENDATIONS
The California Housing Partnership offers the following recommendations to help alleviate poverty, activate California's economy, and increase the supply of affordable homes in California:
Pass and sign into law AB 1335 (Atkins), the Building Homes and Jobs Act.
Pass and sign into law AB 35 (Chiu) to increase the California Low Income Housing Tax Credit by $300 million per year.
Pass and sign into law SB 377 (Beale) to increase the value of the California Low Income Housing Tax Credit by 40%.
Make an immediate general fund investment in the state's existing Multifamily Housing Program.
Lower the required voter threshold for local funding measures from two-thirds to 55 percent.
Require the inclusion of a percentage of homes affordable to low and moderate-income households in new housing developments.
[1]This year the shortfall includes both ELI and VLI renters, rather than only looking at ELI renters as was the case last year. Including VLI renters increases the shortfall from nearly 1 million to over 1.5 million rental homes. The data source is also updated to the more current 2013 ACS PUMS data rather than 5 year CHAS data.
[2]Public Policy Institute of California and Stanford Center on Poverty and Inequality. "The California Poverty Measure: A New Look at the Social Safety Net." October 2013. http://www.ppic.org/content/pubs/report/R_1013SBR.pdf
CHPC Services for Nonprofit and Local Government Staff
CHPC provides technical assistance and training to help nonprofit and government agencies build and preserve affordable homes for California families and seniors. For more information about our preservation program, please contact Housing Policy and Preservation Associate, James Pappas at [email protected] or (415) 433-6804 x 320. For information about CHPC's technical assistance services, contact Richard Mandel at [email protected].
Like us on | Follow us on
This newsletter is made possible with support from:
