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ADMINISTRATIVE REVIEW DRAFT Table 3-11: Maximum Affordable Monthly Housing Cost in Alameda County, 2001 (including utilities) Income NUMBER OF PERSONS IN HOUSEHOLD Category 1 2 3 4 5 6 7 8 Very Low $626 $716 $805 $895 $966 $1,039 $1,110 $1,181 Low $942 $1,076 $1,211 $1,346 $1,454 $1,561 $1,669 $1,776 Moderate $1,503 $1,719 $1,932 $2,148 $2,319 $2,493 $2,664 $2,835 Source: Barry Miller, AICP, 2001 Table 3-11 indicates the upper limit of "affordable" monthly housing payments for households of one to eight persons in Alameda County in 2001. "Affordable" housing for a family of four earning $53,850 a year would be $1,346 a month. Assuming $100 to $150 a month for utilities, this would equate to a monthly rent or mortgage payment of about $1,200. Although there may be rental apartments in San Leandro available at this price, they are typically one or two bedrooms and would not be well suited for a family of four. In fact, a review of recent rental listings indicated no three -bedroom apartments available for rent in San Leandro. Measuring the "Affordability Gap"for Renters and Owners in San Leandro Comparing Tables 3-9 and 3-11 indicates a significant gap between "affordable" rents and market rents for lower income households in San Leandro. The following examples illustrate the depth of this gap: • A single mother in San Leandro with an income of $28,000 a year would need to spend 56 percent of her income to live in a typical two -bedroom apartment or 47 percent of her income to live in a typical one bedroom apartment. • A family of four (including two working parents and two school aged -children) with a combined income of $52,000 a year would need to spend 41 percent 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 75 percent of his income to live in a typical studio apartment. These examples highlight the need for programs which provide more affordable options for lower income renter households. Market rents in San Leandro are typically $50 to $400 a month higher than HUD guidelines for low income households. At this time, only moderate and above moderate income households would not be considered "cost -burdened" in San Leandro's rental market. In fact, the National Low Income Housing Coalition estimated that only 48 percent of the households in Alameda County could afford the median priced two -bedroom apartment (September, 2000). HOUSING ELEMENT 3-13 SAN LEANDRO GENERAL PLAN q�6