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3. Housing Affordability and the "Affordability Gap" HUD defines "affordable" housing as housing which requires no more than 30% of a household's gross monthly income, including the cost of rent or mortgage payments, homeowner's fees, and utilities. Current data from ACS indicates that the percentage of overpaying renters in San Leandro was 50% in 2006. The ACS also reported that 36% of homeowners paid more than 30% of their incomes on housing in 2006. In San Leandro, lower income renters are more likely to overpay for housing than other households. The ACS suggests that this percentage rose to 85% by 2006. The significant gap between "affordable" rents and "market" rents for lower- income households in San Leandro is illustrated by the following examples: • A single mother in San Leandro with an income of $28,000 a year would need to spend 55% of her income to live in a typical two - bedroom apartment or 45% of her income to live in a typical one - bedroom apartment. • A family of four with a combined income of $52,000 a year would need to spend 40% of their income to rent a typical 3- bedroom, 2 -bath house in San Leandro. • A senior citizen on a fixed income of $14,000 a year would need to spend 60% of her income to live in a typical studio apartment. The housing market in San Leandro has seen both positive and negative changes in the last seven years. For renters, the City is more affordable today than it was seven years ago, although the inventory of rental units remains very tight, especially for large families. For owners, the City became increasingly unaffordable between 2001 and 2006, shutting more moderate - income families out of the for -sale market. Affordability has improved dramatically since 2006 as prices have come down due to the recent mortgage crisis, but with a downside in the form of lost equity and an increased rate of foreclosure for buyers who entered the market after 2004. 4. Jobs - Housing Balance Employment in a community can affect the demand for housing and the type of housing that is needed. Ideally, the number of jobs and employed residents should be balanced, since this reduces commute costs and provides more money for housing and other expenses, as well as other benefits like less congestion and greater productivity. The most commonly used indicator of jobs- housing balance is the ratio of jobs to households. In 2000, there were 1.45 jobs per household in San Leandro, but by 2008, the ratio fell to 1.36 jobs per household. The closer to a 1.0 ratio, the more favorable the jobs- housing balance. (Source: ABAG Projections 2007) Looking forward, ABAG projects that San Leandro will add 2,650 jobs between 2010 and 2015 while adding 550 households. Creating a true balance between jobs and housing will require two courses of action first, producing housing at a rate that keeps pace with projected job growth, and second, producing more rental housing and affordable ownership housing so that those who work in the City can afford to live here. San Leandro Redevelopment Agency 2010 -2014 Implementation Plan Page 20