3A Public Hearing 2010 0315 - Laserfiche WebLink

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Support Maintenance of Existing Section 8 Assistance Certificates and Vouchers ^ Continue to support the Housing Authority of Alameda County (HACA) maintain its existing level of Section 8 housing vouchers in San Leandro (1,335 as of December 2009). The program provides assistance to very low-income tenants through rent subsidies which are paid directly to the landlords. Geo~raghic Distribution All programs listed are available to eligible households throughout the City of San Leandro. Priority: Assist low- and moderate-income first time homebuyers Priority Analysis and Obstacles to Meeting Underserved Needs The Alameda County HOME Consortium prepared in part the following analysis of first time homebuyer needs and obstacles. As a Consortium member,=the City of San Leandro subscribes to this priority and has proposed activities that meet the objective of assisting low- and moderate- income first time homebuyers. The Alameda County HOME Consortium Housing l'~eeds Analysis documents that thirty-eight percent (38%) of all owner households in the Consortium spend over 30% of their incomes on housing costs, according to the 2000 Census. While the median home prices within the Consortium area has decreased nineteen percent (19%) from $505,038 in 2004 to $410,146 in 2009, the gap between median incomes and median home prices still remain sizable because Bay Area household incomes still have not kept pace with housing costs despite the eight percent (8%) increase in the median household income from $82,200 in 2004 to $89,300 in 2009. Consequently, with households currently needing an income of at least $82,590 to afford the median-priced home only only sixteen percent (16%) of low income Alameda County residents can afford to become homeowners [Source: California Association of Realtorsj. Even moderate-income households may have difficulties becoming homeowners because of the high cost of ownership housing in the Coutny. Initial downpayment and closing costs, as well as high on- going mortgage and other costs, are significant barriers to homeownership. Homebuyers with no equity windfall from the sale of a previous home, meanwhile, are not able to accumulate enough money for a downpayment on a house. Furthermore, tighter underwriting standards and lack of available financing have become increasingly problematic for potential homebuyers in today's housing market. With unaffordable home prices, younger working households are moving farther out of the urban areas in order to afford a home. This residential migration out of the County reduces the region's economic vitality, adds to the jobs/housing imbalance, increases traffic congestion and exacerbates environmental concerns such as air pollution. Objectives Assist low- and moderate-income first-time homebuyers through the City's First Time Homebuyer Program (which includes free homebuyer seminars and a low interest second loan program), the City's Inclusionary Zoning Ordinance, and referrals of eligible homebuyers to the Alameda County's DRAFT Housing and Community Development Strategic Plan - FY 2010-14 City of San Leandro Page 11