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WORKING DRAFT FOR HCD REVIEW
<br />NEEDS ASSESSMENT 3-19 SAN LEANDRO HOUSING ELEMENT
<br />Table 3-11: Maximum Affordable Monthly Housing Cost in Alameda County, 2014 (including
<br />utilities)
<br />
<br /> Number of Persons in Household
<br />1 2 3 4 5 6 7 8
<br />Extremely Low $484
<br />
<br />$553
<br />
<br />$621
<br />
<br />$690
<br />
<br />$746
<br />
<br />$801
<br />
<br />$856
<br />
<br />$911
<br />
<br />Very Low $805
<br />
<br />$920
<br />
<br />$1,035
<br />
<br />$1,150
<br />
<br />$1,243
<br />
<br />$1,335
<br />
<br />$1,426
<br />
<br />$1,519
<br />Low $1,184
<br />
<br />$1,353
<br />
<br />$1,521
<br />
<br />$1,690
<br />
<br />$1,826
<br />
<br />$1,961
<br />
<br />$2,096
<br />
<br />$2,231
<br />Moderate $1,932 $2,208 $2,484 $2,760
<br />
<br />$2,982 $3,204 $3,423 $3,645
<br />Source: Alameda County HCD Income Limits: 2014. Barry J Miller, AICP 2014
<br />
<br />
<br />
<br />Subprime Mortgage Crisis in San Leandro
<br />
<br />The number of foreclosures in the United States tripled between the first quarter of 2007 and the second
<br />quarter of 2008. Several factors contributed to the problem, including declining home values in many
<br />markets, lax underwriting standards, and a growing number of sub-prime loans and adjustable rate
<br />mortgages made to higher risk borrowers. The long-term trend of rising home prices encouraged
<br />borrowers to assume such mortgages, believing they would gain equity in appreciating properties and
<br />refinance at more favorable rates later. Refinancing became more difficult once prices started to drop,
<br />and repayment became more difficult when the initial period of low interest rates ended.
<br />
<br />In the Bay Area, the rise in foreclosures led to economic hardship for many households, especially in
<br />2007-2011. It resulted in a slow down in housing construction, a loss of equity for homeowners, and the
<br />displacement of a significant number of renters living in properties owned by third parties. The state and
<br />federal governments took steps to address the crisis as it unfolded, including mortgage assistance
<br />programs, reduced loan principals, and new rules for mortgage lenders. The federal government also
<br />funded two Neighborhood Stabilization Programs (NSP) in Alameda County which enabled a number of
<br />foreclosed homes in San Leandro to be purchased, rehabilitated, and sold to lower income households.
<br />
<br />San Leandro weathered the sub-prime crisis better than many other parts of the East Bay. Sales volumes
<br />in the city during the highest-risk years (2005-2006) were comparatively low, in part because there were
<br />no large for-sale developments constructed in the city during these years.
<br />
<br />In August 2008, the website foreclosureradar.com reported 719 distressed properties in San Leandro,
<br />including 117 homes being auctioned, 238 bank-owned homes, and 364 homes in βpre-foreclosure.β By
<br />contrast, the website realtytrac.com reported that in July 2014, one in every 1,667 homes in San Leandro
<br />was in foreclosure. This equates to approximately 20 homes citywide. In 2014, the foreclosure rate in
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