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Home My WebLink AboutR45-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SUBJECT: Recommended Allocations of 2006/2007 Community Development Block Grant (CDBG) Funds; Emergency Shelter Grant (ESG) Funds, HOME Funds and Amendment of the 2005-2010 Consolidated Plan and 2005-2006 Annual Action Plan ---------.--------------------------------------------------------------~-------_.._---------------------------------------------------------------------------------. FROM: Maggie Pacheco Executive Director DATE: May 8, 2006 ORIGINAL SvnoDsis of Previous Commission/Council/Committee Action(s): On April 18, 2006, Redevelopment Committee Members Estrada and McGinnis voted unanimously to recommend approval of the CDBG allocations per Attachment I (b), with Committee Member Johnson abstaining with regard to funding for the Boys & Girls Club to avoid the perception of conflict of interest. Committee Members Johnson, Estrada and McGinnis. voted unanimously to recommend approval of the HOME appropriations and Committee Members Estrada and McGinnis voted to recommend approval on the ESG appropriations with Committee Member Johnson voting no on the ESG appropriations. Recommended Motion(,): OPEN/CLOSE HEARING (Mavor and Common Council) A: Resolution of the Mayor and Common Council of the City of San Bernardino I) Approving the 2006-2007 Community Development Block Grant (CDBG) and Emergency Shelter Grant (ESG) appropriations and HOME categories; 2) Approving the Year 2006-2007 Consolidated Annual Action Plan; 3) Authorizing the Mayor to execute and submit to HUD necessary documents and take all necessary actions for the execution of any contracts; and 4) Approving the Five (5) Year Impediments to the Fair Housing Plan B: Resolution of the Mayor and Common Council of the City of San Bernardino amending the 2005-2010 Consolidated Plan and the 2005-2006 Annual Action Plan related to prior HOME allocations for specific affordable housing projects Contact Person(s): Project Area(s) Maggie Pacheco Phone: (909) 663-1044 Supporting Data Attached: All Ward(s): All o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letters o Other Attachments Federal Community Development Block Grant (CDBG); Emergency Shelter Grant funds Source: (ESG); and Federal HOME funds FUNDING REQUIREMENTS Amount: $ 8, I 08,329 Budget Authority: 2006-2007 CDBG funds, ESG funds, and HOME funds SIGNATURE: ;{ C~( ~ ~il/k ~ Barbara Lindseth, Admin. Services Director --commissi;;;;ico-;;-;;~ii-Not;s~---m-mm------.-..-------------_________________________m_______________________________-------------.------------------- Re:3l). ~:1 ~};:=~~~.--------------------------------------m---.---___________________________________________m__________--------------~ P:lAgendas\Comm Dev Commission\CDC 2006\05-15-06 CDBG. ESG & HOME Reallocations.doc COMMISSION MEETING AGENDA Meeting Date: 05/15/2006 R~5 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT -------------------------------------------------------------------------~--~~-~-~-~----~~-----~---------------~---------------------------------~--- RECOMMENDED ALLOCATIONS OF 2006/2007 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS; EMERGENCY SHELTER GRANT (ESG) FUNDS, AND HOME FUNDS BACKGROUND: The City receives an annual allocation of Federal funds from HUD for the purpose of implementing and administering the following programs: Community Development Block Grant (CDBG); HOME Investment Partnership; and Emergency Shelter Grant (ESG). The City will receive approximately $3,647,079 in Community Development Block Grant (CDBG) funds, $1,563,059 in HOME Investment Partnership Act (HOME) funds, $22,321 in American Dream Down Payment Initiative (ADDI), and $155,870 in ESG funds for a totalof$5,388,329, in federal funds for fiscal year 2006/2007. This year's funding amounts were significantly impacted by the Department of Defense, Emergency Supplemental Appropriations to address the hurricanes in the Gulf of Mexico and the Pandemic Influenza Act, which dictated an across-the-board cut. The City's CDBG allocation was cut by 13%. The HOME Investment Partnership Act, and Emergency Shelter Grant (ESG) programs were reduced by less than 1%. CURRENT ISSUE: 1. CDBG - Fiscal Year 2006/2007 In October 2005, Staff solicited Request for Proposals to receive applications for CDBG funding for the provision of "public services" only. A total of twenty-five (25) applications were received from local nonprofit agencies that provide services ranging from childcare, youth programs, crisis intervention, job training, homeless services, medical and dental services, and services for seniors. All proposals received were evaluated by EDA Staff for program eligibility and to determine if each proposal met the Mayor and Common Council's priorities and goals that were approved in December 2004 as follows: High Priority #1: Preservation and Rehabilitation of Existing Single Family Dwellings; High Priority #2: Expand Homeownership Opportunities and assist Homebuyers with the Purchase of Affordable Permanent Housing (Existing and New Construction); High Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing; High Priority #4: Assist Homeless and "Special Needs" Persons with Supportive Services; High Priority #5: Expansion of "Affordable" Housing through New Construction; High Priority #6: Promotion of Economic Development and Employment Opportunities for Low-and Moderate-Income Households; High Priority #7: Improve and Expand Infrastructure to Meet Current and Future Needs; and High Priority #8: Elimination of Identified Impediments to Fair Housing through Education, Enforcement, and Testing. On February 24, 2006, the Community Development Citizens Advisory Committee (CDCAC) convened to conduct interviews from project proposals that were deemed eligible and listen to oral testimony from agencies' representatives that were in attendance. The CDCAC Committee is appointed by the Mayor and Common Council, as a means to reach out to the community and obtain citizen input. The Committee _~~~_~.i~!~_QL)_l.~~!!I.!?~~~~.~_~_~~~_~_~_~_~~.9.f c;:.9.!!..:!~JL~9i~~S._9~~__m_~~!!!~~ fo!.~ tota!.9.f.~~~~~_m P:\Agendas\Comm Dev Commission\COC 2006\05.)5.06 CDBO. ESG & HOME Reallocations doc COMMISSION MEETING AGENDA Meeting Date: 05/15/2006 Agenda Item Number: -'l. 'IS' Economic Development Agency Staff Report CDBG, ESG & HOME Reallocations Page 2 and the Mayor appointing the other (6) members. The CDCAC Committee usually meets once a year to review proposals and prepare funding recommendations to the Mayor and Common Council. For the 2006- 2007 CDBG program year, the CDCAC Committee recommended funding for twenty-one (21) agencies. The CDCAC did not recommend CDBG funding for four (4) public agencies for reasons including, but not limited to agencies duplicating existing services, incomplete proposals, or lack of sufficient information about program objectives, etc. Proposals not recommended for 2006/2007 CDBG funding are as follows: Salvation Army (Bus Pass program), Arrowhead United Way for Mama's Wellness Program (Note: the Mama Wellness project was originally submitted through the Inland Empire United Way (IEOW). (However, due to IEUW's By-laws, they cannot seek funds outside of their jurisdiction. San Bernardino's Arrowhead United Way has accepted the responsibility of being project sponsor and fiscal agent), Inland Valleys Justice Center Community Mediation Program and Lorine's Learning Academy. Neighborhood Housing Services of the Inland Empire (NHSIE) was one of the agencies recommended for funding in the amount of $10,000. However, on March 28, Neighborhood Housing Services submitted a letter to the Agency withdrawing their application. Staff recommended allocating the $10,000 to the Section 108 Loan Program; however, at the April 18, RDA Committee meeting, the Committee recommended to fund two (2) additional public services projects: 1) Arrowhead United Way (Mama's Wellness program) at Monterey Elementary School, and 2) Lorine's Learning Academy. RDA's recommendations are noted in Attachment I (b). The CDCAC Committee's recommendations are listed in Attachment I (a). Attachment II provides a summary description of each recommended agency and the type of services they will provide to the community. Upon subtracting the $255,000 budgeted for public services, the balance of the 2006/2007 CDBG funds is $3,392,079. The RDA Committee recommended that the remaining funds be allocated as outlined in Section "B" of Attachment I (a): Code Enforcement; City's ten (10) year commitment for fire equipment leases and the purchase of ancillary fire equipment; National Development Corporation (NDC); Small Business Development Corporation (SBDC); Mandatory Fair Housing, and the Section 108 Loan Program ($7.5 Million loan is proposed for previously proposed projects (1) Redevelopment of Arden Guthrie; (2) Redevelopment of the 2" and "K" Street EI Tigre site. The specific HUD requirements are forthcoming). 2. HOME Grant Funds In fiscal year 2006-2007, the City will receive $1,563,059 in federal HOME funds and $22,321 in American Dream Down Payment Initiative (ADD!) funds. Staff proposes that HOME funds be allocated as follows for the new program year: 10% ($156,305) for EDA's HOME Administration; 15% ($234,459) to qualified Community Housing Development Organizations (CHDO's) who aid in the provision of affordable housing in the community; and 5% ($78,153) for CHDO operations and capacity building. The $22,321 of ADD! funds will be used to provide up to $10,000 grants/loans to qualified low-income buyers with the purchase of their first home, per HUD regulations in addition to the Agency's Homebuyer Assistance Program. The remaining $1,094,142 will be used for the provision or preservation of affordable housing, which benefits low-income persons (80% and below median income). HOME funds can only be used for housing activities, i.e. rehabilitation of single-family housing, rehabilitation, or construction of multi-family housing; homebuyer programs; acquisition of land; public improvements to facilitate affordable housing and transitional housing. HOME funds will be used to augment the Redevelopment Agency's annual Housing Fund. --------------------------------.-.---------------------------------------------------- P:\Agendas\C01l'Wll Dev Conunission\CDC 2006\05-15.()(i CDBG, ESG & HOME RealJocation!;.doc COMMISSION MEETING AGENDA Meeting Date: 05/15/2006 Agenda Item Number: ~ Economic Development Agency Staff Report CDBG, ESG & HOME Reallocations Page 3 3. Emerl!encv Shelter Grant (ESG) The Emergency Shelter Grant Program (ESG) is designed to help increase both the number and quality of emergency shelters and transitional housing facilities for homeless individuals and families. ESG funds can be utilized to provide essential social services to aid in the prevention of homelessness. ESG funds can be allocated for the following activities: I) Essential Services. This activity includes: case management, . counseling, job training, education and childcare. 2) Shelter Maintenance & Operations. This activity includes maintenance, rent, repair, security, utilities, relocation, and equipment. 3) Homeless Prevention. This activity can assist with short-term mortgage/rent, utilities, security deposits, first month's rent and tenant legal services. ESG regulations allows 5% for Program Administration, which includes the preparation ofHUD reports and monitoring of the ESG contracts. Due to the need and small allocation that the City receives, no amount is allocated for this activity. In addition, ESG funds must be matched by "Other" funding sources, i.e., "In-Kind", donations of "Goods and Clothing", or "Cash". Agency Staff reviewed and evaluated the eight (8) ESG proposals as detailed in Attachment III. Each proposal was evaluated on their project narrative, past experience, cost effectiveness, and ability to leverage with other funding. Seven (7) of the eight (8) proposals are programs that serve a large number of the City's homeless and hungry. One new proposal is being recommended, Time for Change Foundation. This program provides shelter and job training to women who are released from prison and also offers a transitional housing program for women and their children. For Program Year 2006-2007, $155,870 of ESG funds is available and the following agencies are recommended: A~encv I) Central City Lutheran Mission 2) Foothill AIDS Project (FAP) 3) Frazee Homeless Shelter 4) Mary's Mercy Center 5) Option House, Incorporated 6) Salvation Army - San Bernardino 7) Time for Change Foundation 8) New House, Inc. Amount Recommended $12,000 $ 9,000 $12,000 $20,000 $19,870 $65,000 $ 8,000 $10,000 Total: $155,870 As part of the City's commitment to provide ESG funds to these recommended grantees, Staff will continue to participate with the Community Action Partnership of San Bernardino County and other agencies in working to resolve the homeless problem with a goal of adoption of a viable Homeless Strategy. Please refer to Attachment III for a program description for each of the above recommended providers. Impediments to Fair Housinl! As a recipient of federal grant funds from HUD, the City is required to submit a certification affirmatively furthering fair housing by undertaking fair housing planning as follows: a) completion of an Analysis of Impediments to Fair Housing Choice (AI); b) actions to eliminate identified impediments; and c) maintenance of fair housing records. The AI document includes information that defines fair housing, a community profile of the City; a fair housing profile that includes an overview of the housing industry in governing fair housing, a lending profile that reviews lending practices of financial institutions and access P:\Agendas\Comm Dev Commission\CDC 2006\05-1 S..Q6 CDBG, ESG & HOME Reallocations.doc COMMISSION MEETING AGENDA Meeting Date: 05/15/2006 Agenda Item Number: Il.. t.J S Economic Development Agency Staff Report CDBG, ESG & HOME Reallocations Page 4 to financing for all households, and public policies that can affect housing development in the community. The AI provides recommendations and actions for addressing the fair housing issues. The recommendations are noted in Attachment IV. AMENDMENT OF CITY'S CONSOLIDATED 5 YEAR PLAN (2005-2010) and 2005-2006 ANNUAL ACTION PLAN Relative to Motion B, in August 2005, the Mayor and Common Council approved $2,720,000 of HOME funds for the acquisition of certain properties, including relocation expenses for four (4) properties located at: 151, 161, 167 East 2nd Street and 156 E. King Street for reuse and development of single-family homes in the Meadowbrook Park area. As part ofHUD's procedures, anamendment to the existing Five-Year (5) Consolidated Plan and 2005-2006 Annual Action Plan is required. This Amendment will ratify the prior approvals and actions of the Mayor and Common Council. ENVIRONMENTAL IMP ACT: All National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA) actions will be addressed prior to release of funds for the projects/programs to be funded. FISCAL IMPACT: All fiscal impacts are highlighted in this Staff Report and corresponding Attachments. RECOMMENDATION: That the Mayor and Common Council adopt the attached resolutions. ~~-- Maggie Pacheco, xecutJve DIrector P:\Agendas\Comm Dev Commission\CDC 2006\05-15-06 CDBG, ESG & HOME Reallocations.doc COMMISSION MEETING AGENDA Meeting Date: 05/15/2006 Agenda Item Number: IJ.J/S ATTACHMENT I (a) (CDCAC Recommendations) A. Community Development Block Grant Public Service Prol!:rams/Activitv Name-CDCAC Recommendations 1. AI-Shifa Clinic, Inc. 2. Asian-American Resource Center 3. Assistance League of San Bernardino 4. Boys & Girls Club of San Bernardino 5. Central City Lutheran Mission 6. Child Advocates of San Bernardino County 7. Children's Fund 8. Frazee Community Center 9. Highland Senior Center 10. Home of Neighborly Service, Inc. 11. Legal Aid Society of San Bernardino 12. Libreria Del Pueblo, Inc. 13. Mary's Mercy Center 14. New House, Inc. 15. Option House, Inc. 16. St. Bernardine Medical Center 17. San Bernardino Sexual Assault Services 18. San Bernardino YMCA 19. Time for Change Foundation 20. YWCA of San Bernardino B. 1. 2. 3. General ProDosed Proiects-CitvlEDA Recommendations City Code Enforcement City Fire Department Leases Business Assistance (EDA) a. Small Business Development Corporation (SBDC) b. National Development Corporation (NDC) Fair Housing (Mandatory) (EDA) Section 108 4. 5. P:\Agendas\Agenda Attachments\Ex.hibits\2006\5-1 5-06 Reoommended 06-07 CDBG Allocations Attachment I (a),doc SUB-TOTAL SUB-TOTAL TOTAL Amount $15,000 $14,000 $14,000 $10,000 $10,000 $14,000 $14,000 $14,000 $10,000 $14,000 $14,000 $10,000 $14,000 $14,000 $10,000 $10,000 $14,000 $10,000 $10,000 $10.000 $245.000 Amount $2,250,300 $534,200 $20,000 $50,000 $45,000 $502,579 $3,402,079 $3.647.079 2006-127 ATTACHMENT I (b) (Redevelopment Committee's Recommendations) A. Community Development Block Grant Public Service Prol!:rams/Activitv Name-CDCAC Recommendations 1. AI-Shifa Clinic, Inc. 2. Asian-American Resource Center 3. Assistance League of San Bernardino 4. Boys & Girls Club of San Bernardino 5. Central City Lutheran Mission 6. Child Advocates of San Bernardino County 7. Children's Fund 8. Frazee Community Center 9. Highland Senior Center 10. Home of Neighborly Service, Inc. . II. Arrowhead United Way (Mama's Wellness Program) (Originally submitted under Inland Empire United Way) 12. Legal Aid Society of San Bernardino 13. Libreria Del Pueblo, Inc. · 14. Lorine's Learning Academy 15. Mary's Mercy Center 16. New House, Inc. 17. Option House, Inc. 18. St. Bernardine Medical Center 19. San Bernardino Sexual Assault Services 20. San Bernardino YMCA 21. Time for Change Foundation 22. YWCA of San Bernardino B. General Proposed Proiects-CitvlEDA Recommendations 1. City Code Enforcement 2. City Fire Department Leases 3. Business Assistance (EDA) a. Small Business Development Corporation (SBDC) b. National Development Corporation (NDC) 4. Fair Housing (Mandatory) (EDA) · 5. Section 108 . 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'" <= <= <= 0; - '" '" 2: ~ '" tB"E c '" .9 ~ ~.S u ~ := ~ 0.._ ~S ...c o;n :; vi l5 ~.~ .- ..... .... < '" " ii (,,) (fJ UlC-o ~.9 5 8rtjq;;; .- ): 0 c: .~ al ~ ~o ca..:u ~~o ..J~t) o(j '0 t 5c{g .- 0 01,} 108- bb8t' .- C':l'- EE Q. 5- " C - .....- ~ = ! '~ " o .. ;; 2 " o ~ Q U ~ ~ ~ ~ 1 , i " ~ ~ ~ ." ~ i ~ . . < <= <= 00 ~... Clogg ;:~ 0""'00 ~Eo.-<'::::;;t: ==0::J0\0 Uz-cn = "" Q,I o +l'<t: 'S ~ g:c ~UO Cl.I -= Cl) t:: ... . .(=- &: rJJ g::c -] ~.9 Q) M a 0 01;; E.j; "''' '" .;:: 0> "... tU;:> o:l . .E-c> .- \0 (oj 0::" ...J....'" ~ o . .~ ~ ~ ~ .... N ATTACHMENT III 1. Salvation Army - Requested amount: $113,944 (Maintenance & Operations). Salvation Army Hospitality House provides a full spectrum of homeless services that include: Shelter for 100 women including children; 3 hot meals daily. There are counseling and employment services. There is a "savings program" where the participants that are staying in the shelters can save up to $2,000 for housing costs as they leave the shelter facility. 2. Central City Lutheran Mission - Requested amount: $]6,556 (Maintenance & Operations). Central City Lutheran Mission (CCLM) opened its doors in 1996 as a community based organization working in the central part of the city reaching out to the City's "at-risk" and hard-to-reach populations. Clients residing at one of CCLM's facilities receives comprehensive supportive services. CCLM collaborates with many county and private agencies in order to service their clients. 3. Mary', Mercy Center - Requested amount: $32,430 (Essential Services). Mary's Mercy Center offers' emergency services to the homeless population that include: food bags, emergency baby and hygiene needs, and shower and laundry facilities. Mary's began providing emergency showers in 1997. ESG funds will be utilized to pay a portion of staff salaries and 0 off-set the costs of utilities. 4. Option Honse, Inc. - Request amount: $41,702 (Essential Services). Option House, Inc. provides shelter to domestic violence victims in the city. Option House can accommodate up to 14 women and their children for up to 60 days. There is a resident in-house program that each client must finish. ESG funds are being requested to assist with paying a portion of staff salaries and assist with paying for a portion of utilities. 5. Frazee Homele,s Shelter - Requested amount: $18,000 (Maintenance & Operations). Frazee Community Center provides a homeless shelter for men. Most of Frazee's clients are homeless veterans and up to 17 can be assisted. The shelter provides job search assistance, transportation when needed and support groups are brought in for counseling. Frazee also provides assistance in the areas of securing social security and Veterans benefits. ESG funds will be utilized to pay a portion of utilities and consumable supplies. 6. Time for Change Foundation - Requested amount: $23,000 (Maintenance & Operations). Time for' Change began their transitional housing program in September 2002. This transitional facility is for women who are exiting drug rehab programs or prison. Time for Change incorporated in October 2003 as a non-profit organization and expanded its service delivery to include full re-entry services to women and their children. The facility is very well maintained and each participant is required to be in a program that will assist them in obtaining ajob and independent living. 7. Foothill AIDS Project - Requested amount: $16,000 (Homeless Prevention). Foothill AIDS Project (F AP) began their operations in 1987 in the city of Pomona. Their mission is to improve the lives of those affected by or at risk for HIV / AIDS through comprehensive support services and to help prevent HIV infection through education or outreach. In 1999, F AP expanded their services to San Bernardino County. In 2000, F AP created a housing department and partnered with the Housing Authority of San Bernardino County to provide Home Opportunities to People with AIDS (HOWPA) to assist them with transition into affordable housing rental subsidy. 2006-2007 ESG proposal is for the provision of assisting homeless individuals and families who are homeless or on the 'verge' of becoming homeless. Funds will be for security deposits and short-term rental subsidies. 8. New Hou,e, Inc. - Requested amount: $25,000 (Homeless Prevention). Incorporated in 1978, New. House, Inc. is one of the first state certified residential treatment facilities for substance abuse located in San Bernardino County. New House, Inc. is the first residential treatment facility in California to allow children in treatment with their parent(s). ESG funds are being requested for the provision of providing security deposits and short-term subsidies to clients who are living in and participating in New House's Sober Living Programs. New House has two (2) triplex buildings in one common area. Each client is prescribed a treatment phase that focuses on emotional, spiritual and mental needs. A recovery plan is developed for each participant - a 12-step process. P\Agendas\Agenda Attachments\Exhibits\2006\5-1 5-06 Rewmmellded 06-07 CDBG Allocations Anachment Jll.doc ATTACHMENT IV l. EXDandinl!: Affordable Hou,inl!: Opportunitie, a. The City will continue to provide homeownership opportunities in the community by promoting the First Time Homebuyer Program. The City will focus its outreach efforts for lower income households. b. The City will continue to facilitate the development of housing for all income groups within the community. To meet this need, the City will focus on facilitating affordable housing development through a combination of financial and regulatory assistance. The City will work to provide affordable housing throughout the community. 2. Rehabilitation As,istance a. The City will continue to provide rehabilitation assistance for owner-occupied and rental single-family housing in the community. Existing programs include the Mobile Home Repair Grant, Elderly/Special Needs Minor Repair Grant Program, Single-Family Beautification Grant Program, and Home Improvement Deferred Loan. The City will ensure that information about these programs are included in the City's brochures, advertisements, and website. The City will also continue its Code Enforcement efforts to improve the conditions of the rental housing stock. b. The City will ensure that Spanish speaking staff are available to assist residents in the City regarding code enforcement, housing rehabilitation, and other housing services. 3. Public Policies and Prol!:rams Affectinl!: Housinl!: Development a. To expand housing opportunities for a wide spectrum of City residents that includes large families and persons with disabilities. b. The City will continue to pursue affordable housing development programs identified in the Housing Element. 4. Outreach to Lenders a. The City will work with local lenders to provide outreach to low- and moderate-income residents about government-backed financing. The City will encourage local lenders to provide information in both English and Spanish. b. The City will encourage home buying and credit counseling workshops to be held in San Bernardino. These workshops will be held in both English and Spanish. 5. Fair Hou,inl!: Services and Outreach a. The City will encourage the fair housing service provider to conduct fair housing workshops for residents, real estate professionals, apartment owners, and property managers. Efforts should be made to expand community participation among single-family homeowners, lenders, property managers, and real estate agents. b. Expand efforts in distributing brochures and placement of advertisements in order to inform the public of the fair housing law and their rights. Provide links to fair housing and other housing resources on the City's website. Public counters should also prominently display fair housing information. c. The City will continue to work with a qualified fair housing service provider to ensure that an increased number of fair housing testing be performed in the City. d. Target fair housing education and outreach materials to segments of the population most affected by limited- housing choice. This can include the minority households (particularly Blacks and Hispanics), the disabled, and families with children. 6. HMDA Monitorinl!: a. The fair housing service will continue to monitor complaints regarding unfair lending, and assess lending patterns using the Home Mortgage Disclosure Act Data (HMDA) and other data sources. P:\Agendas\Agenda AllactunenlslExhibits\2006\5-15-06 Recommended 06.07 CDOG Allocations AttachmentlV.doc ~ 2 3 4 5 6 7 8 9 10 II '- 14 ~ <co~y RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO: 1) APPROVING THE 2006-2007 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND EMERGENCY SHELTER GRANT (ESG) APPROPRIATIONS AND HOME CATEGORIES; 2) APPROVING THE 2006-2007 CONSOLIDA TED ANNUAL ACTION PLAN AND ANALYSIS OF IMPEDIMENTS (AI); 3) AUTHORIZING THE MAYOR TO EXECUTE AND SUBMIT TO HUD NECESSARY DOCUMENTS AND TAKE ALL NECESSARY ACTIONS FOR THE EXECUTION OF ANY CONTRACTS; AND 4) APPROVING THE FIVE (5) YEAR IMPEDIMENTS TO THE FAIR HOUSING PLAN WHEREAS, the City of San Bernardino is an entitlement city and eligible to participate in the United States Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG), HOME and Emergency Shelter Grant (ESG) Programs for 12 Program Year 2006-2007; and 13 WHEREAS, the Mayor and Common Council desire to submit to HUD the City's Consolidated Annual Action Plan 2006-2007; and 15 WHEREAS. the Mayor and Common Council desire to execute Contracts to provide a variety of community services through cet1ain public service agencies for the 2006-2007 CDBG 16 and ESG Program Year; and 17 WHEREAS, the Mayor and Common Council desire to approve the Five-Year (5) 18 Analysis ofImpediments (AI) to Fair Housing Choice, 19 20 NOW. THEREFORE. IT IS HEREBY RESOLVED, DETER..,\1INED AND ORDERED BY THE MA YOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 21 22 Section 1. That the Mayor and Common Council hereby approve the " ." recommendations noted in Attachment l(b) to the May 15,2006 Staff Report pertaining to the allocation of 2006-2007 Community Development Block Grant (CDBG) funds, Emergency Shelter (ESG) Grant and the HOME funds. 24 25 -I- P:'Agtl1dn\Rt~olulions\Re.lolulions\Zl106\05-1~-06 CDUG Rec I\ICC ReslI A.doc -- 2 3 4 5 6 7 8 9 Section 2. That the Mayor and Common Council hereby approve the 2006-2007 Consolidated Annual Action Plan and Analysis of Impediments (AI) attached hereto. Section 3. That the Mayor is authorized to execute and submit to the U.S. Department of Housing and Urban Development, (HUD) all appropriate documents and to take all necessary actions to implement the City's 2006-2007 Annual Action Plan, including, but not limited to, the preparation and execution of CDBG and ESG standard Agreements with the respective public service agencies, as prepared and approved by the City Attorney and/or 10 Agency Counsel, a copy of which is on file with the Agency Secretary, and incorporated herein by reference as though fully set forth at length. Section 4. This Resolution shall take effect upon its adoption and execution in the II manner as required by the City Charter. 12 1/1 13 -- / ,I / 14 11/ 15 III 16 III 17 I' , II 18 1// 19 //1 20 /// 21 //1 22 III 7- III _J c4 III ill c5 III ,,-- III -2- P:\Agellda~\ReiOlullo"s,Re,oIUlil)lll\200G\O~15-06 (DOG Ret .\lCe Rno A_doc I I I I '- ~ 3 4 5 6 7 8 9 10 II 12 13 ~' 14 15 16 17 18 19 .- RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO: 1) APPROVING THE 2006-2007 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND EMERGENCY SHELTER GRANT (ESG) APPROPRIATIONS AND HOME CATEGORIES; 2) APPROVING THE 2006-2007 CONSOLIDATED ANNUAL ACTION PLAN AND ANALYSIS OF IMPEDIMENTS (AI); 3) AUTHORIZING THE MAYOR TO EXECUTE AND SUBMIT TO HUD NECESSARY DOCUMENTS AND TAKE ALL NECESSARY ACTIONS FOR THE EXECUTION OF ANY CONTRACTS; AND 4) APPROVING THE FIVE (5) YEAR IMPEDIMENTS TO THE FAIR HOUSING PLAN I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 2006, by the following vote to wit: Council Members: Navs Abstain Absent Aves ESTRADA BAXTER MCGINNIS DERRY KELLEY JOHNSON ?\1C CAMMACK Rachel G. Clark, City Clerk 20 The foregoing resolution is hereby approved this day of ,2006. 21 22 Patrick J. Morris. Mayor City of San Bernardino =3 24 A proved as to Form: , /, -:; . /~'Y\-. res F. Penman. City Altorney 25 -3- P:\Agf"da~\Resolulions\R~solu(ionl\2006\05-15-06 CDBG Rrc ,'\Ice Ruo A.doc ....- 12 13 '..h_' 14 15 16 - t~~1f RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING THE 2005-2010 CONSOLIDATED PLAN AND THE 2005-2006 ANNUAL ACTION PLAN RELATED TO PRIOR HOME ALLOCA TIONS FOR SPECIFIC AFFORDABLE HOUSING PROJECTS 3 4 5 6 WHEREAS, the City of San Bernardino is an entitlement City and eligible to participate 7 in Title II of the Cranston-Gonzalez National Affordable Housing Act (HOME) for Program 8 Year 2005-2006: and 9 WHEREAS, the HOME Program is the largest Federal block grant to State and loca 10 governments designed exclusively to create and to preserve affordable housing for low-incom II households; and WHEREAS, the Mayor and Common Council desire to amend the 2005-2006 Actio Plan and 2005-2010 Consolidated Annual Action Plan and authorize $2,720.000 of HOME fund for acquisition of certain properties and for the payment and tenant relocation. 17 't'-iOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 18 Section 1. That the Mayor and Common Council hereby approve amending the 2005 19 2006 Action Plan to allocate 2005-2006 HOME funds, and approve and ratify the appropriatio 20 of HOME funds for acquisition of certain properties including tenant relocation located at: 151 161 and 167 East 2nd Street and 156 East King Street in the City of San Bernardino. 21 y, Section 2 This Resolution shall take effect upon its adoption and execution in th " _0 manner as required by the City Charter. 24 /1/ 25 / .I / -1- P:'l.\gend:l.s\RfIGJuliolls\Re~0)Iuliollli\2006\O!'-IS-06 COBG Ru MCC Reso 8.dllC 7 thereof, held on the 8 Council Members: 9 ESTRADA BAXTER 10 MCGINNIS II DERRY 12 KELLEY 13 JOHNSON -- 14 MC CAMMACK is 16 -- "--, 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING THE 2005-2010 CONSOLIDATED PLAN AND THE 2005-2006 ANNUAL ACTION PLAN RELATED TO PRIOR HOME ALLOCATIONS FOR SPECIFIC AFFORDABLE HOUSING PROJECTS 3 4 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an 6 Common Council of the City of San Bernardino at a meeting day of , 2006, by the following vote to wit: Aves .t-!ill Abstain Absent Rachel G. Clark. City Clerk 17 The foregoing resolution is hereby approved this day of ,2006. 18 19 20 21 Patrick J. Morris. l\layor City of San Bernardino c, A roved as to Form: ~ 3 t?; . Ii.t.-~ 24 es F. Penman. City Attorney ..:;. -2- P,\_-\~elldas\Resolulion.l\Res"lutiQ"s',2006,U5_15.06 CDBG Rec :'lIce Reso B.dOf CONSOLIDATED ANNUAL ACTION PLAN FOR PROGRAM YEAR 2006-2007 "- Introduction ........ ......................................................................................................... ............ ......1 I. Strategy Implementation................................................................................ ........... .............2 A. Funding Sources and Available Programs....................................................................3 B. Support of Applications by Other Entities ...................................................................5 C. Priority Investment Plan........................................... ................................................. ...6 D. Non-Housing Community Development Needs......................................................... 1 1 E. Geographic Distribution .............................................................................................19 F. Service Delivery and Management.............................................................................20 H. Other Actions..................................................................................................................... .20 A. Public Policies.................................................................................................. ...... ....20 B. Institutional Structure ................................................................................................ .20 C. Public Housing Improvements ...................................................................................21 D. Public Housing Resident Initiatives ...........................................................................21 E. Lead Based Paint Hazard Reduction ..........................................................................21 HI. IV. ""'- V. VI. Anti-Poverty Strategy...................................................................................................... ....21 Coordinating Services.................................................................................................. .......21 Program/Project Moniloring............................................................................................ ....21 Program Requirements................................................................................................... .....22 A. Specific CDBG Grant Program Submission Requirements .......................................22 B. Specific HOME Submission Requirements ...............................................................23 C. Specific ESG Submission Requirements ...................................................................24 NOTE: On file with Agency Secrelary APPENDIX A - Listing of Proposed Projects APPENDIX B - Required Certifications APPENDIX C - Public Comments APPENDIX D - Public Notice ",-. APPENDIX E - Grants Application Forms (Form 424) CDBG HOME ESG APPENDIX F - Analysis of Impediments (AI) - CONSOLIDATED ANNUAL ACTION PLAN FOR PROGRAM YEAR 2006-2007 INTRODUCTION The City of San Bernardino has provided leadership in developing community strategies for providing decent, affordable housing, a suitable living environment and expanded economic opportunities for all households within our City. The City has developed viable partnerships with the private sector that include: financial institutions, real estate professionals, developers and private businesses. San Bernardino has been at the helm in developing strong collaboration with for-profit and nonprofil organizations to access federal and state programs to increase housing opportunities for low- and moderate-income households, eliminate blight, and provide necessary public support services for families or individuals in need of assistance, as well as address needed public facilities, infrastructure improvements and entice economic development activities. -- The City has established its approach of developing goals and objectives that will have a long- term stabilizing impact on City neighborhoods through the concentration of resources on eight specific citywide priorities detailed in I. Strategv Implementation. The City involves its citizens in determining needs, issues and the designing of programs and activities to address those needs and issues. The City coordinates the efforts of its City Departments to meet the identified housing needs, and utilizes housing programs and projects to create sufficient visual impact intended to stimulate additional private investment in the City's housing stock and diversified neighborhoods. For 2006-2007 Program Year, the City will be awarded federal entitlement funds in the amount of $5,388,329 under the following programs: Community Development Block Grant (CDBG) Program, $3,647,079; the HOME Partnership Investment Act (HOME) Program, $1,563,059; American Dream Downpayment Initiative (ADDI), $22,321; and $155,870 in the Emergency Shelter Grant (ESG) Funds. The Annual Action Plan contains the following seclions: I. Strategv Implementation Strategy Implementation details the City's investment plan for Fiscal Year 2006-2007. The investment plan includes funding sources and available programs, a matrix chart that details funding levels and number of households to be assisted under each priority; the geographic allocation of resources; and a plan for delivery service and management. 11. Other Actions Other Actions states the City's proposed actions to ameliorate the negative impacts of public policies, to examine and modify, if necessary, the institutional structure that will improve service delivery, to improve public housing, to undertake public housing resident initiatives and to reduce the hazards associated with lead-based paint. III. Anti-Povertv Strategv The Anti-Poverty section contains the City's strategy to reduce the number of households with incomes below the poverty line. '."'......... I P \FORMS'.,HOUSING FORM$',CO"'SOLlDATED PLAN'.2006-20072006-2007 CONSOLIDATED ANNUAL ACTION PLAN DOC Citv of San Bernardino - Consolidated Plan - FY 2006-2007 IV. Coordinating Services This section describes the City's plan to increase and improve _ coordination between public and private housing and social service agencies located in the City of San Bernardino V. ProgramIProiect Monitoring This Section describes the process the City will undertake to ensure sub-recipients of federal funds are in compliance with federal and local regulations and requirements. VI. Program Requirements Program requirements contain two required certifications that the City will affirmatively further fair housing and is following a residential, displacement and relocation plan. VII. Summarv of Citizen Comments Citizens Comments summarizes written comments received during the public review period and describes how comments were addressed, if applicable. I. STRATEGY IMPLEMENTATION The mission of the City of San Bernardino is to actively and aggressively improve, develop and maintain quality neighborhoods and provide housing opportunities throughout the City of San Bernardino. The City has identified eight priority areas to pursue and focus on in the Five-Year Consolidated Plan (2005-20 I 0). The Eight Priorities are: Priority #1: Preservation and Rehabilitation of Existing Single Family Dwellings -- Priority #2: Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of Affordable Housing Permanent (Existing and New Construction) Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing Priority #4: Assist Homeless and Special Needs Persons with Supportive Services Priority #5: Expansion of "Affordable" Housing Opportunities New Construction Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and Moderate-Income Households Priority #7: Improve and Expand Infrastructure to Meet Current and Future Needs Priority #8: Elimination of Identified Impediments to Fair Housing through Education, Enforcement. and Testing The City's strategy is to effectively utilize and aggressively seek federal, state, redevelopment, local and private resources to operate and implement a number of programs to assist households in each of the eight Priority Areas. The following is a detailed chart of funding sources and a summary of each of the "'_ priorities listed in the Five- Y ear Strategy section of the Consolidated Plan. Also included are One Year Objectives that have been established by the City and a proposed plan for service delivery and management. 2 p "fOR:-'1S\HOL'SING FORMS'COSSOLlDATED PLAN.2006-200i.200o.2007 CONSQLlDATED ANNUAL ACTION PLAN DOC City orSon Bernardino - Consolidated Plan - FY 2006-2007 - A. Fundin2 Sources and Available Pro2rams 1. Funding Sources Anticipated to be Available for Programs and Activities. The financial resources expected to be available to carry out and implement projects and activities identified for the 2006-2007 fiscal year are: FEDERAL SOURCES ,,-. Prol!rams Community Development Block Grant (CDBG) CDBG Program Income HOME Investment Partnership (American Dream Downpayment Initiative [ADDI]) HOME Program Income Emergency Shelter Grant ESG HUD Section 202 Program (AHEP A Senior Housing) AHEP A RDA Low/Mod Funds Continuum of Care & Shelter Plus Care San Bernardino Housing Authority Housing Choice Voucher Program San Bernardino Housing Authority Public Housing HUD Section 108 Loan (Mercado Santa Fe and Arden Guthrie RetaiVCommercial Projects) TOTAL Resources $ 3,647,079 -0- 1,563,059 22,321 330,000 155,870 11,000,000 840,000 5,071,425 16,890,432 4,834,128 7.500.000 $51.854.314 LOCAL RESOURCES Prol!rams RDA Tax Increment Funds (Approximately) RDA 20% Housing Funds City General Fund and State Funds (Refer to Table 7) TOTAL Resou rces $23,671,000 4,734,200 24,589.400 $52.994.600 NONPROFIT AND FOR PROFIT SOURCES Prol!rams Non Profit Partners In-kind Donations (Approximately) Developer Investment (Approximately) Private Lending Institutions (Approximately) TOTAL Resources S 7,382,616 140,000,000 50.384.000 $197.766.616 ""-" ~ 3 P '.FORMSIHOUSING FORMS,(,01"SOllDATED PLAN'200f:>_2007\2006_2007 CONSOLIDATED ANNUAL ACTIOI' PLAN DOC Cit)'ofSan Bernardino - Consolidated Plan - FY 2006-2007 2. Available Programs for whicb tbe City Does Not Intend to Apply. The City of San Bernardino will not apply for the following federal resources during FY 2006/2007: "-" Rural Homeless Housing The City will not apply for Rural Homeless Housing Funds because there are no rural areas localed within the City. Competitive Programs Table Support of Applications on the following page indicates that the City will support applications made by other entities for federal grant funds with tbe exception of Rural Homeless Housing. 3. Circumstances under which the City would not certify that applications of other entities are consistent with the Con,olidated Plan: During fiscal year 2006-2007, the City shall support the efforts of San Bernardino County agencies, non-profit and other entities in their applications for funding from all available funding sources. However, the City will not support agencies' applications, if such applications are not consistent with the City's 2005-2010 Consolidated Plan. The circumstances under which the City will not support such applications are: a. There is no demonstrated ability by the applicant to carry out the activity/project in a timely manner. b. Type of activity, size of proposed project, and lack of implementation plan to successfully complete and maintain the project. - 4. Plan for Leveraging Private and Non-Federal Funds by Use of Federal Funds. Local funds will be leveraged to the greatest extent possible by using it as "seed money" or local match for programs funded by state or federal government and/or private enterprise. Financial assistance may be provided as grants or loans, and may include equity participation. 5. Matcbing Fund Requirements. The City was notified that for Program Year 2006-2007, the City is exempt from Matching Fund Requirements relative to the Federal HOME Program. Emergency Shelter Grant (ESG) Program. In-kind resources and private donations will be utilized by the non-profit service providers with the ESG Grant. Other eligible public/private sources will be actively pursued when feasible. .....,-~- 4 P \FORMSIHOUSING FORMS',CONSOllDATED PLANI:OOI)-!007';006.2007 CONSOLIDATED ANSL!AL ACTION PLAN DOC Ot\' o{San Bernardino - Consolidated Plan. FY 2006-2007 B. Support of Applications by Otber Entities ......- U.S. Department of Housing and Urban Development CPD Consolidated Plan Support of Applications by Otber Entities Report Fundin!: Source Support Application by Otber Entities? Formula/Entitlement Programs ESG y Public Housing Comprehensive Grant y Competitive Programs HOPE 1 y HOPE 2 y HOPE 3 y -- ESG y Supportive Housing y HOPW A y Safe Havens y Rural Homeless Housing N Sec. 202 Elderly y Sec. 811 Handicapped y Moderate Rehab SRO y Rental Vouchers y Rental Certificates y Public Housing Development y Public Housing MROP Public Housing CIAP y y -- LIHTC y 5 p \FORMS\HOU5ING fORMS\CO~SOLlDATED PLA""',~006.2007\1006-2007 COl"SOLlDATED ANNUAL ACTION PLAN DOC Cir... orSon Bernardino - Consolidated Plan. Fr 2006-2007 C. Priority Investment Plan ~ The following illustrates activities the City of San Bernardino expects to address and allocate federal funds and other resources in fiscal year 2006-2007. The City will undertake priority needs in tenus of local objectives that were identified in the City's Five-Year Consolidated Plan. Priority #1: Preservation and Rehabilitation of Existing Single Family Dwellings Under Priority # I, the City seeks to actively maintain, improve and develop quality neighborhoods and housing opportunities throughout the entire City. The program activities are described in detail in the Five-Year Consolidated Plan. The following table provides the funding source, amount of planned funding, households to be assisted, and activity to be undertaken. -. TABLE I CITY OF SAN BERNARDINO Priority #1: Preservation and Rehabilitation of Existine Simde Familv Units Activity Funding Planned Household, Undertaken Source Fundin~ to be A"i,ted Housing Improvement Program Single Family RDA Housing Fund $1,280,00 130 units and mobile homes/Neighborhood 0 Housing Service (NHS) Neighborhood Improvement Program (NIP) $300,000 20 Senior Old Timers Grant RDA Housing Fund $75,000 220 Utility Assistance Program RDA Housing Fund $65,000 Households Sources: City of Sail Bernardino Staff Estimates. Priority #2: Expand Homeownership Opportunities and Assist Homebuyers with the Purchase of Affordable Permanent Housing (Existing and New Construction) The City will concentrate a portion of its affordable housing funds on providing low- to moderate- income households with the opportunity to own their own home. This effort will be approached with the programmatic tools discussed in the Five-Year Consolidated Plan. Table 2 lists the amount of funding, the Funding Source, and projected number of households to be assisted. American Dream Downpayment Initiative (ADD!) - ADD! was signed into law on December 16, 2003. ADD! funds are used to increase homeownership among lower-income and minority households at 80% and below of area median income. The amount of assistance provided to any family will not exceed the greatest of six percent of the purchase price of a single-family housing unil or $10,000. The City will receive $22,321 in ADD! funds and will use these funds in tandem with HOME funds allocated for homeownership assistance. -...".".....- 6 P '"FORMS\HOUSING FORMS\CO:'>lSOUDATED PLAN\2006-2007\2006-2007 CO:-':SOI..IDATED ANNUAL ACTION PLA!'; DOC _. ~. "'- City orSon Bernardino - Consolidated Plan - FY 2006-2007 TABLE 2 CITY OF SAN BERNARDINO Priority #2 - Expand Homeowner,hip Opportunitie, and As,i,t Homebu}'ers with the Purcha,e of Affordable Hou,inp Permanent IExi,ting aDd New Construction) Activity Funding Planned Households Undertaken Source Funding to be Assisted Mortgage Assistance Program (Existing/New RDA Housing Fund $2.400,000 17 Construction- MAP Programs, Cal State Fedetal HOME Funds $400,000 University San Bernardino Professor's Private Investment $10 Million Homebuyer Program) TELACU Development Corporation TELACU $3 Million 13 (491h Street Single-Family Developmenl) HOME Funds $1.000,000 Homebuyer Education HOME $130,000 225 Meadowbrook Park Homes (Single Family) Private Investment $2,000.000 4 HOME Funds $1,500,000 RDA Housing Fund $2,000.000 AGA Properties. LLC Private Investment $8,400.000 24 6th and glh (24 Townhomes) HOME Funds $1.000,000 RDA Housing Fund $4,000,000 Arroyo Development Company Private Investment $1.2 Million 4 HOME Funds $550,000 Habitat for Humanity HOME Funds $60,000 I Private Investment Old Towne Housing Development HOME Funds $600,000 6 (Creati\'e Housing Solutions) Private Investment $3 Million RDA Housm2 Fund $200,000 Sources: City oj San Bernardino Staff Estimates. Private Developers Estimates. Priority #3: Provide Rental Assistance and Preserve Existing Affordable Rental Housing Under Priority #3, the City, with the assistance ofthe Housing Authority of San Bernardino County, will assist very low-, and low-income households with rental payments to alleviate rent burden, overcrowding and unsafe or unsanitary living conditions. In addition, the City plans to facilitate the development of new senior rental housing projects for low-income seniors. According to San Bernardino's County Department of Human Services, 64,262 households living in the City of San Bernardino relied on some form of public aid, i.e., Cash Aid, Food Stamps and/or MediCal during the year 2005. In addition, according to San Bernardino Unified School District's Research and Statistical Department, of the 59, I 05 students enrolled, 82% qualify for the District's "Free and Reduced Lunch Programs." Two factors that contribute to this steady increase are: I) the declining of "affordable housing" in Los Angeles and Orange Counties causing families to migrate to San Bernardino County; and, 2) the impact of economic opportunities that plague our local economy. As a consequence, the City projects a high level need for housing assistance during the 2006-2007 Program Year. Table 3 summarizes the activities to be undertaken, funding sources, funding amounts and projected number of households to be assisted. 7 P \FORMS',HOUSING FORMS"CONSOLlDATED PLAN'~006-2007,2006.2007 CONSOLIDATED ANNUAL ACTION PLAN DOC '- 0_ - City of San Bernardino - Consolidated Plan - FY 2006.2007 TABLE 3 CITY OF SAN BERNARDINO Prioritv #3: Provide Rental A,si,tance and Pre,erve Exi,tin2 Affordable Rental Hou,in2 Hou,ehold, or Activity Funding Planned Unit' to be Undertaken Source Fundin2 As,i,ted Housing Choice Voucher Program Section 8 $16,890,432 2,636 Highland Lutheran Senior Housing Section 8 $1 Million 50 RDA Housing Fund $115,000 Rental Assistance Program RDA Housing Fund $500,000 125 St. Bernardine's Senior Housing Section 8 $2 Million 150 Ramona Senior Housing RDA Housing Fund $113,000 42 AHE? A Senior Housing Section 8 $1.2 Million 50 Cooperative Senior Housing Section 8 $1 Million 75 TELACU Senior Housing I, 11 & III Section 8 $6 Million 225 Sources: CiJY of San Bernardino Staff Estimates; County oj San Bernardino Housing Authority Estimates. Private Dewloper Estimales. ~ IIPrioriry #4: Assist Homeless and Special Need Persons with Supportive Services Under Priority #4, the City provides housing assistance and supportive services to San Bernardino's homeless population, "at-risk" population, and other "special needs" population identified by the City and its service providers. Priority #4 includes the City's strategies for transitional and emergency shelters for the homeless, the prevention ofhomelessness and helping the homeless make a transition to permanent housing. Other services to be funded include child care, senior services, job training, crisis intervention, counseling, medical assistance and after school programs. The following table details the funding sources, planned funding amounts and households to be assisted through various social service programs in fiscal year 2006-2007. The entitlement amount for the 2006-2007 Emergency Shelter Grant (ESG) Program is $155,870. The City also allocated $65,000 in CDBG public service funds for homeless or transitional housing programs. Exisling programs that have proven their performance and effectiveness will continue to be a priority for ESG funding during Program Year 2006-2007. The following have been recommended: Central City Lutheran Mission, 1139 Perris Street $12,000 for the provision of providing Essential Services for the treatment and counseling of substance abuse. This program services homeless individuals in need of medical treatment and/or counseling. Participants can remain in the program as long as treatment and programs are being followed. ESG funds will be used to pay for a portion of staff salaries. 8 P 'FORMS'HOL'SING FORMS\CONSOLlDATED PlAN-,200b-2007200b-2007 CONSOLIDATED ANNuAL ACTION PLAN DOC Ot\' olSan Bernardino - Consolidated Plan - FY 2006-2007 Foothill AIDS Project (FAP), 362 Orange Show Lane - $9,000 for the provision of Homeless Prevention. This project will assist individuals who are homeless or at risk of becoming homeless. The organization works in collaboration with County Housing Authority. The F AP organization will utilize ESG funds as a "one-time" assistance to individuals or families who need "move-in" assistance, i.e., first month's rent, security deposit, utilities, etc. A Housing Service Plan will be developed and other supportive services will be provided. Frazee Homeless Shelter, 1413 Kendall Avenue $12,000 for the provision of Maintenance & Operations for shelter services. The Frazee shelter provides services to homeless men. The Kendall Avenue site can serve eight individuals at any time. The minimum stay is one (I) night; the maximum stay is six (6) months. Each person enters into a plan to get them back to work or is assisted in securing permanent benefits, i.e., Social Security, veteran's pension, etc. Ninety (90%) of their clients are veterans. ESG funds will be used for utilities and consumable supplies. Mary's Mercy Center, 641 Roberts Avenue $20,000 for the provision of providing Essential Services for a day shelter that includes showers, laundry facilities and emergency food bags. Mary's Mercy Center provides a facility for homeless and low-income individuals by offering a drop-in "day center", showerslhygiene, meals, clothing, infant emergency needs and bus passes. Counseling services are provided on a weekly basis. ESG funds will pay for staff and consumable supplies for the day shelter. - Option House, Incorporated - P.O. Box 970 $19,870 for the provision of providing Temporary Crisis Intervention Program. Option House is a family/domestic violence intervention and prevention services agency. Program houses up to fourteen (14) women and their children for up to 60'days. Residents live in a "home-like" environment and focus on putting their lives back on track. Option House also has a satellite office in the County Courthouse. ESG funds will assist with staff salaries and utility costs. Salvation Army - 845 W. Kingman $65,000 for the provision of providing Maintenance & Operations for the Salvation Army's Emergency Shelter. The Salvation Army's shelter can accommodate seventy-four (74) individuals per day. The City's Police Department, social services and hospitals "refer" or "take" clients to the Salvation Army for emergency shelter. A job referral program is also offered. Clients who secure employment are allowed transitional living at the shelter for an extended period of time. ESG funds will be used for staff salaries and consumable supplies. New House, Inc. - 2075 North Arrowhead Avenue $10,000 Incorporated in 1978, this organizalion is one of the first State certified residential treatment facilities for substance abuse. This is the first treatment facility in California that allows children in to accompany their parents. ESG funds will assist with security deposits and short-term subsidies to clients who are living in and participating in New House's Sober Living Programs. - 9 P \FORMSIHOUSING FORMS\CONSOLlDATED PLAN\2006.:Q07'2006.2007 CONSOLIDATED ANNUAL ACTION PLAN DOC Ci/v o/San Bernardino - Consolidated Plan - FY 2006-2007 Time for Change Foundation - 2130 North Arrowhead Avenue, #104B - $8,000 Time for Change began their transitional housing program in September 2002. This transitional housing facility is for women who are exiting drug rehab programs or exiting from prison. In 2003, this organization became a non-profit and expanded its service delivery to include full re-entry services to women and their children. ESG funds will be utilized for utilities and a portion of consumable supplies. New programs that will close gaps in San Bernardino's continuum of care are also a funding priority. Emergency Shelter Grant (ESG) projects recommended for funding are consistent with the priorities and needs established in the City's 2005-2010 Five-Year Consolidated Plan. The City will continue to leverage non-HOO funding sources, i.e., City General funds, Redevelopment Set-Aside funds, Cal- Works funds, as well as state, county and private funding. The City will continue to collaborate closely with Community Action Partners of San Bernardino County, a private, nonprofit, public benefit corporation whose mission is to reduce the causes and conditions of poverty and to develop and implement a coordinated plan to address homelessness in San Bernardino County. Grants for shelter and care programs have been awarded to sixteen (16) entities for 2005. These awarded projects will provide homeless services throughout San Bernardino County. The entities are identified as follows: I) Institute for Urban Research and Development $2,192,400; 2) Community Action Partnership of San Bernardino County $750,477; 3) Community Action Partnership of San Bernardino County $1 ,995,040; 4) Morongo Basin Mental Health Services Association, Inc. $87,606; 5) __ Central City Lutheran Mission $76,794; 6) Inland Temporary Homes $69,402; 7) Foothill Family Shelter, Inc. $34,125; 8) Inland Behavioral and Health Services, Inc. $367,063; 9) New Hope Village, Inc. $66,675; 10) Knotts Family Agency $420,000; II) Luvlee's Residential Care, Inc. $912,150; 12) The Salvation Army $158,522; 13) Frazee Community Center $26,250; 14) Victor Valley Domestic Violence, Inc. $276,379; 15) Central City Lutheran Mission $17,672; 16) St. John of God Health Care Services $311,960. Clients will be educated on how to access services available in their community, including public health programs and other social service organizations. "- TABLE 4 CITY OF SAN BER."lARDINO Priority #4: Assi,t Homele" and Soecial Need Person, with Sunnortive Services Activity Funding Planned Households Undertaken Source Fundin~ to be A"isted Emergency Shelter Grant Program ESG $155,870 2.100 (Emergency/Transitional Programs) CDBG $72,000 Central City Lutheran Mission, Frazee In-Kind Private $6,500,000 Homeless Shelter, Mary's Mercy Center, New Donations House, Incorporated, SalvatIOn Army, Foothill AIDS Project and Option House, Inc. Community Action Partnership, Frazee Shelter + Care $7,762,515 450 Community Center, Saint John of God COC Healthcare, Salvation Army of San Bernardino, New Hope Village, Inc., Fontana Native American Center, Central City Lutheran Mission. Provisional Educational Services. Inc. Sources: Cin' of San Bernardino Staff Estimates, Non-Pr-;;fu Orf;!anizations 10 p FORMS<HOUSI~G FORMS'.CO~SOLlDATED PLA!>;\:OOf,.2007.2006.2007 CONSOLIDATED AN:>;l'Al ACTlO~ PLAN DOC City orSon Bernardino - Consolidated Plan - FY 2006-2007 IPriority #5: Expansion of Affordable Housing through New Construction ........ Under Priority #5, the City will concentrate on the development and construction of affordable housing units for families earning less than one hundred twenty percent (120%) of area median income (AMI). The programs to be utilized under this priority are described in the Five- Y ear Consolidated Plan. The following table indicates the funding sources, funding amounts and number of households to be assisted. TABLE 5 CITY OF SAN BERNARDINO Priority #5: EXDan,ion of Affordable Housing Oonortunitie, tbrouflh New Con,truction Activity Funding Planned Households Undertaken Source Funding to be A"isted TELACU Single Family In-fill Private Investment 53 Million 13 (49th Street Project) HO~E Funds $550,000 AHEPA Senior Multi-Family Housing HUD 513 Million 90 HOME Funds 5840,000 Mary's Mercy Expansion of Veronica's Private Investment 5600,000 20 Home HOME Funds $800,000 HUD $1.700,000 Sources.' City of San Bernardino Staff Estimates, Prj~'ale Developer Estimates. ""'--' D. Non-Housing Community Development Needs As previously noted in the Non-housing Community Development Needs Assessment, the availability of Community Development Block Grant (CDBG) monies and other resources, will enable the City to allocate funds to specific low-income neighborhood areas that are prone to neighborhood decline and dilapidation. Through this effort the City reduces the risk of obvious delineation of lower income neighborhoods; thereby promoting pride of homeowners hip and residency in all geographic areas within the City limits and in turn, encouraging the economic empowerment of its low- and moderate-income residents. Priority #6: Promotion of Economic Development and Employment Opportunities for Low- and Moderate-Income Households Two of the City's highest priorities are: (I) to attract industries and employers that provide higher- paying jobs and a wider range of employment opportunities, and (2) to assure that local residents have the necessary skills to fill those jobs. To implement said priorities, the City, in collaboration with other public agencies, such as San Bernardino Employment and Training Agency (SBET A) and private enterprise developers, will pursue strategies that promote the growth of production industries whose goods or services are sold to state, national, or global markets to bring outside income into the community. '-.)..,."....... II P \FORMS'HOlJSIl"G FORMS\CO!\SOLlDATED PLAN 2006.200712006.2007 rONSOLlDATED ANNUAL ACTION PLAN DOC Citv orSon Bernardino - Consolidated Plan - FY 2006-2007 SBET A's mission is to train the work force to business specifications and to increase jobs for residents. -- SBET A partners with industry to produce a competitive work force. The SBET A Agency is under the direction of the Mayor and the Workforce Investment Board, composed of business leaders and educators. SBET A serves both the employer seeking trainable employees and City residents seeking employment opportunities. The primary entity to implement these priorities is the City's Economic Development Agency (EDA). During the 2006-2007 fiscal year, the City's EDA will continue to support job creation, job retention, training, education, downtown revitalization, and infrastructure improvement efforts. Federal assistance in the form of a Section 108 loan, float loans, economic development initiatives and other financing such as redevelopment funds will be the resources that will be sought or used to assist the City in Priority #6. Table 6 details the organizations that the City will contract with for the promotion of economic and job creation. -- TABLE 6 CITY OF SAN BERNARDINO Priority #6: PromotioD of Economic Development and Employment Opportunitie, for Low- and Moderate-Income Hou,ehold, Businesses Activity Funding Planned to be Assi,ted Undertaken Source Fundinl! or Jobs Created Small Business Development Corporation In-Kind; Private $500,000 6 Institution and CDBG $20,000 National Development Corporation - Grow San In-Kind; Private $1,250,000 20 Bernardino Institutions and Redevelopment Funds CDBG $50,000 Business Incentive & DO\vntov.m Revitalization! Redevelopment Funds $250,000 20 Fa<;ade Program Private Business $500,000 Contributions Sources: City of San Bernardino Staff Estimates, Private Business Owners Estimates. The Economic Development Agency's mission is to enhance the quality of life for the citizens of San Bernardino by attracting and retaining businesses and jobs, eliminating physical and social blight, and developing a balanced mix of quality housing. The Community Inveslment Corporation Loan Program offers up to $25,000 for entrepreneurs to expand an existing business or start a new business. These funds can be used as working capital, to make tenant improvements, to purchase machinery and equipment and other business necessities. Other programs offered by other agencies, such as the Inland Empire Small Business Financial Development Corporation, Grow San Bernardino Fund SBA 7 (a) Loan Program and the Small Business Administration 504 Loan Program offer larger loan amounts for small businesses to expand their businesses or entrepreneurs to start a new business. -- The principal tool used by the Agency in its eleven project areas is governed by redevelopment law and consists of Owner Participation Agreements known as OPA's and Disposition and Development Agreements known as DDNs. An OPA or a DDA can provide financial assistance to a project or development over a number of years to be paid out of tax increment. Each one of these agreements is unique to the specific project and intended to make redevelopment of a blighted condition economically viable as well as act as a catalyst for future development in lhe area. 12 P \fORMS',HOL'SING FORMS\CONSOllDATED PLAN\2006.2007\2006-2G07 CONSOLIDATED AN!,;UAl ACTION PLAN DOC City of San Bernardino - Consolidated Plan - FY 2006-2007 Another program offered by the Economic Development Agency is the Business Incentive Grant, which "~" seeks to restore economic vitality and investment confidence to the City of San Bernardino. The program offers financial assistance to help business owners and tenants enhance the curb appeal of their businesses by financing exterior improvements to their business properties. The program also provides grants to help business owners retain their current employment levels or expand their current employment levels. The program offers grants reimbursements that are noHo-exceed $10,000. The applicant will be required to match this grant dollar for dollar and will be reimbursed at the completion of all pre-approved improvements. Additional programs offered by the Agency to foster economic growth in the City are as follows: The Business Utility User's Tax Rebate Program rewards new and expanding businesses who create jobs for City residents, increase sales tax revenues and/or increase property values. The program rebates a percentage of the City's utility tax levied on electricity, gas, video and telephone communication services to the business over a period of ten years. The Economic Development Action Team, also known as EDA T, assists larger projects that will add a significant number of new jobs or significantly increase tax revenue for the City. EDA T is the best tool for a fast, efficient passage through the City's Development process. The Development/Environmental Review Committee or the D/ERC is a team of specialists from various City Departments who review the detailed technical needs and requirements of projects to ensure that the project will comply with all applicable rules and regulations. For many projects, the D/ERC is the review authority and can save time and money for the developer or applicant. The Business Liaison "- Program assists businesses who encounter difficulties dealing with a City requirement midway through their development or simply need help in interpreting the, at times, complicated development process. The Business Liaison Program helps guide applicants through the City entillement process. BizNet was created by the Economic Development Agency and is a state-of-the-art technique utilizing information technology, specifically online and CD-Rom databases, to promote business expansion revenue generation, and job-creation. This program, administered in collaboration with the school of Business and Public Administration at California State University, San Bernardino, helps companies gain a better understanding of customers and competitors, botl) existing and potential, thus gaining a more competitive edge in the market arena. In addition, the Agency and the City will facilitate the development of the following proposed economic projects: 1. Commercial/Entertainment Center - Proposed project is the development of a Starbucks Coffee Shop to be located at the following location: 4th and "E" Streets. The Agency is in negotiations to sell the commercial 20,000 square foot site. It is estimated that 12jobs will be created and private investment is estimated at $1.5 million. 2. Anita's Restaurant and Bakery - Anita's Bakery is an existing small business that includes a bakery and restaurant. The owner may be purchasing a 7,000 square foot vacant lot from the Agency to construct a building that will create 5 new jobs and increase restaurant capacity. Private investmenl is estimated at $1.5 million. 3. LNR Development - This project involves the purchase of an existing downtown Mall and the development of a mixed-use project. The housing component is the proposed construction of "living lofts", tovmhomes and condominiums. Total private investment is estimated at $284,000,000. '- 13 P 'FORMS'.HOUSING FORMS\CONSOLlDATED PLAN,2006-2007\200b-2007 CONSOLIDATED ANNUAL ACTION PLAN DOC City of San Bernardino - Consolidated Plan - FY 2006-2007 4. Century Crowell Vintage Homes (Bice Property) - Proposed project is the disposition of Agency land and the development of 65 acres of vacant land to be subdivided for the construction of 2 79 single-family dwellings. Private investment is estimated at $100,000,000. -- 5. La Placitas Center - This project includes the proposed development of an approximate 96,000 square feet into a commercial center that will include a major grocery store. The existing structures will be demolished and replace with the new center. It is estimated that six (6) new businesses will be established and 100 new jobs will be created. Private investment is estimated in excess of $15 million. 6. Hillwood Development (Culligan Property) - Proposed project is the construction of a 1.2 million square foot warehouse and distribution facility to be located on University and close to the Interstate 215 freeway. Private investment is estimated at $50 million and potentially 100 jobs will be created. 7. ICO Investment Offices - Proposed project consists ofa 2 to 3 story county office to be located on the southwest comer of 4th and Waterman. The proposed facility is approximately 45,000 square feet and approximately 45 jobs will be retained. Private Investment is estimated in excess of$12 million. The Agency will sell to developer approximately 5 acres of vacant land for the development of County offices. Business Incentive Grant Program _. The Business Incentive Grant Program assists business owners, tenants, and property owners to enhance the "curb appeal" of their business storefront by providing funds to complete exterior improvements. The Agency anticipates providing assistance up to twenty (20) businesses with their storefront improvements. Public funds allocated for the Program is projected to be $250,000 with private investment funds projected at $500,000. Utility User's Grant Program The Business Utility User's Tax Rebate Program rewards new and expanding businesses who create jobs, increase sales tax revenues, or increase property values by refunding a percentage of the City's utility taxes paid on electrical, gas, cable, and telephone services to operate their businesses. During program year 2006-2007, the Agency anticipates to process up to five (5) businesses applications utilizing the Utility User's tax rebate. California Theatre The Agency owns and contracts out the maintenance of the Historic California Performing Arts Theatre (the 'Theatre"). Plans to begin phase 11 is slated for program year 2006-2007. The renovation improvements include, but are not limited to the following items: upgrading of the first floor men and women's restrooms and installation of a fire protection sprinkler system for the entire Theatre. In excess of $600,000 for this phase of construction is anticipated. ~ The above-referenced economic development projects will facilitate the creation, promotion, and retention of over 500 employment opportunities for City residents. 14 P \FORMS\HOUSI:-iG FORMS,COr-.;SOllDATED PlAN',200o-;!007.2006.2007 CONSOLIDATED ANNVAL ACTION PLAN DOC City of San Bernardina - Consolidated Plan. FY 2006-2007 IPriority #7: Expand and Improve Existing Infrastructure to Meet Current and Future Needs - The City's existing five-year Capital Improvement Program (2004-2009) represents a key community and economic development tool to implement the priorities detailed in the Consolidated Plan. The Capital Improvement Program allocates funding for targeted public investments that support revitalization of the City's older neighborhoods and downtown San Bernardino as well as new development projects that will create employment for local residents. The San Bernardino Development Services Department is responsible for the maintenance and improvement of the traffic control system, parks and recreation, public facilities such as fire stations, storm drains, and sewers. Due to recent heavy rain events, some repair work on the City's storm drains and sewer system will be required. - During the 2006-2007 fiscal year, the City proposes to spend $24,589,408 on capital improvements detailed in Table 7. The Capital Improvements are funded from a variety of sources that include: Sales Tax Fund, State Funds, Traffic Fees, Developers' Fees, Traffic Systems Fee Fund, Sewer and Storm Drain Fund, Park Fee Funds, as well as the City's General Fund and Federal CDBG Funds. Community Development Block Grant (CDBG) funds will be utilized to fund payment on fire equipment leases and Code Compliance, for the continued effort towards reducing neighborhood blight and substandard living conditions to work in concert with the Redevelopment Agency's housing revitalization program. Many of the City's low-income neighborhoods have higher incidents of code violations. There are a number of factors that influence this higher rate, including an older housing stock, lack of return on income investment, lower income residents with limited or fewer resources for housing maintenance. The City will commit CDBG funds carryover for the clearance and demolition of substandard structures. TABLE 7 CITY OF SA-1\! BER.'iARDINO Prioritv #7: EXDand and Imnrove Existiug Infra,tructure to Meet Current aDd Future Need, The Capital Improvement Program is divided into six major sections as follows: I. General Buildings 2. Streets and Street Lights 3. Sewer 4. Storm Drains 5. Traffic Controls 6. Parks and Recreation l, GENERAL BUILDINGS .......-- Proiect De,crintion FundiDl! Source FundiDl! Amount Fire Stations Repair Restrooms General Fund $75,000 City Yard Pavement Rehab Refuse $50,000 General Fund City Yard Building Restoration Work General Fund $100,000 City Yard Block Wall (Phase 11) General Fund $75,000 Code Compliance Enforce City's Code in Target CDBG $2,250,300 Areas (8 target areas) General Fund $1,000,000 TOTAL $3 550.300 15 P \FORMS'.HOL'SING FORMS,COl'OSOLlOATED PLAN\:006-2007',200tl.2007 CONSOLIDATED ANNUAL ACTION PLAN DOC . City o(San Bernardino - Consolidated Plan - FY 2006-2007 2. STREETS AND STREET LIGHTING .......",...,.... Proiect Description Fundinp Source Fundim, Amount Pavement Rejuvenation Slurry Seal at Various Areas Gas Tax Fund $225,000 (Annual) Miscellaneous Infrasnucture Repair Structures in the Street Right- Gas Tax Fund $50,000 Repairs (Annual) of-way Bus Stops (Annual) Install Concrete Bus Pads at Bus y,~ Sales Tax Fund $25,00 Stops School of the Month Program Gas Tax Fund $50,000 (Annual) Guard Rail Repair (Annual) Repair Guard Rails at Various y,~ Sales Tax Fund $100,000 Locations Residential Street Repairs Repairs at Various Locations Gas Tax Fund $50,000 (Annual) State Street Construction Bridges at Lytle Creek $5,000,000 (Phase 4) 40" Street Widen Street from Acre Lane to I !2~ Sales Tax $500,000 Electric A venue Fund Hunts Lane Grade Separation Grade Separation on Hunts Lane at Street Construction $1,000,000 RR Tracks South of Redlands Blvd.. Funds (SanBAG) State Street'University Avenue Grade Separation on University/State Street Construction $1,000,000 Grade Separation Sl., Cajon Blvd. at RR Tracks Funds (SanBAG) Palm A venue Grade Grade Separation on Palm Ave. and Street Construction $1,505,000 Separation Cajon Blvd. at RR Tracks (City) Fund Old Towne San Bernardino Repair Streets and concrete with-in Gas Tax Fund $50,000 the down town area Lena Rd. ~ Mill Street to Extend Lena Road 1!2~ Sales Tax $10,000 Orange Show Road Fund Frontage Road Along 1-215 Construct New Road from Little Street Construction $600,000 League Dr. going along Flood Control Funds Channel Tippecanoe Avenue Pavement Rehab from San Ana River $1,000,000 to Mill Sl. Mountain View Ave.l31s1 Pavement Rehabilitation $3,050,000 Street to north end Tippecanoe Ave. 1-10 Interchange PSR (Local match) $4.000,000 Construction (Local match) "H" Street Widen from Kendall Drive to 40" $350,000 Street Marshall Blvd. from "E" Pavement Rehabilitation Gas Tax Fund $50,000 Street to Little Mountain Ave. TOTAL S18615.000 - - 16 P FORMS\HOl'SI!\'G FORMS'COl'-iSOLlDATED PlAN,;OOb-:007'.:006.:007 CONSOLIDATED ANt-<UAL ACTION PLAt-< DOC . City orSon Bernardino - Consolidated Plan - FY 2006-2007 3. SEWERS ~ Proiect Descrinlion Fundine Source FUDdine Amount Sewer Main Extensions In excess of 300" for SFR Sewer Line $150.000 Development Construction Fund Sewer Main Extension of Mains and Line Sewer Line $100,000 extension engineering Construction Fund Rehabilitate Manholes Repair or reconstruct failing Sewer Line $50,000 manholes City Wide Construction Fund TOTAL $300.000 4. STORM DRAINS """... Project Descrintion Fundine Source Fundine Amount Cross Gutters and Various Locations Storm Drain $50,000 Drainage Inlet Repairs Construction Fund Box Culvert Repairs Various Locations Storm Drain $50,000 Construction Fund Vision Creek Combination linear Park with Storm Drain $] .666,000 Streams, Ponds & Business Park Construction Fund State Street Storm Drain Install Master Plan Storm Drain Storm Drain $30S,400 from the 1-210 Freeway Construction Fund Install Storm Drains at Orange St., Highland A ve. to Love $] 50,000 Various Locations Lane & Love Lane, Orange St. to Victoria Ave. Install Storm Drain at "E" Along Railroads Tracks "G" Street $250,000 Street to Lytle Creek ! TOTAL $2 474.400 5. TRAFFIC CONTROLS "-"" Project Description Fundine Source Fundine Amount Traffic Signal and Upgrade Traffic Signals and Signal Traffic Systems $150,000 improvements and Improvements (05/06) Fee Fund Rialto A venue and Install New Traffic Signal Traffic Systems Fee $SO,OOO Meridian A venue Fund Mt. Vernon Avenue Install Interconnect & PPB from Traffic Systems Fee $250,000 Mill Street to Highland A venue Fund I "E" Street and Orange Install New Traffic Signal Traffic Systems Fee I $90.000 Show Lane Fund Sterling A venue and 6'" Install New Traffic Signal Traffic Systems Fee $100,000 Street Fund University Loop Ramp Traffic Systems Fee $150,000 Fund Sierra Way & 21" Street Install New Traffic Signals $120,000 TOTAL $940 000 17 P 'fORMS\HOlJSJNG FORMS\CONSOLlDATED PLA;';'.:006.2007,2006.2007 C01\SOLlDATED ANNUAL ACT]ON PLAN DOC Ot" of San Bern.1rdino - Consolidated Plan. FY 2006-2007 ""-- 6 PARKS AND RECREATION Pro;ect De,crinlion Funding Source Funding Amount Verdemont Master Park Construction Park Bond Funds $250,000 and Trail Plan Miscellaneous Parks Park Construction $25,000 Construction Fee Funds Identify & Design Five $50,000 (5) Pocket Park Sites throughout the City Fiscallini field - Upgrades $200,000 Design for two (2) New AT Delmann Heights & Nicholson $100.000 Gymnasium Facilities Center Fifth Street Senior Center Design for a Therapeutic Pool $60,000 Facility Palm Irvington Funding TBD $40,000 Neighborhood (4 acres) Park Al Gobin Park Baseball $500,000 Fields TOTAL S 1 22 5.000 Source: City of San Bernardino Capital Improvement Program 2004-2005. _. Priority #8: Elimination of Identified Impediments to Fair Housing through Education, Enforcement, and Testing To support the City's efforts in increasing housing availability and accessibility for low- and moderate- income households, for 2006-2007 the City has allocated $45,000 ofCDBG funds for a Fair Housing contract with the Inland Fair Housing Mediation Board of San Bernardino County (IFHMB). The IFHMB will provide $455,000 of private funds for administration. The City supports a number of programs and services to promote fair housing, including: · Education workshops on State and federal fair housing laws. . Mediation and complaint resolution. · Moniloring of compliance by individuals and organizalions involved in the sale, financing, renting, advertisement, and management of housing. · Financial assistance and economic development programs to lI1crease lI1comes for low- and moderate-income households. """-. · Provide homeownership opportunities in the community promoting the first time homebuyer program. 18 P FORMS\HOUSING FORMS'CQl\SOLlDATED PLAN',2006-:007.Z006.2007 CONSOUDATEO ANNUAL ACTION PLA1" DOC Ot)' o{5an Bernardino - Consolidated Plan - FY 2006-2007 Current studies of impediments to fair housing and monitoring of compliance have concluded that the '"-, primary difficulties faced by low- and moderate-income households relate to their financial circumstances. Most complaints submitted to the Inland Mediation Board involve Fair Housing and landlord-tenattt disputes, The complaints filed involve tenants' rights, evictions and security payments and property maintenance issues. There appears to be a disproportionate number of complaints filed by female-headed households with children, which could indicate that some single mothers experience difficulties in obtaining suitable housing for their families. In light of these findings, the City will continue to implement programs and support efforts by other agencies to improve economic opportunities for low- and moderate-income households, increase housing availability (particularly homeownership), assist other agencies in providing child care and supportive services for families with children, and ensure that single parents are not unreasonably restricted in their housing choices, TABLE 8 CITY OF SAN BERNARDINO Prioritv #8: Elimination of ImDediments to Fair HousiD" tbroul b Education Enforcement and TestiDP Activity Funding Planned Households Undertaken Sou ree Fundinp * to be Assisted Fair Housing/Landlord/Tenant Program In-Kind $220,000 2,550 Education Seminars In-Kind $120.000 5 Enforcement - Advertisement In-Kind $80,000 5 Sources: City of San Bernardino Staff Estimates, Inland Mediation Board Staff Estimates. . /ncludes $45,000 oJeDBG Funding _. The impediments identified in the City's Analysis are: · Lack of knowledge and awareness of Fair Housing Laws makes it impossible for residents to recognize discriminatory practices by housing providers and lenders. · Recommended Action: Increase the level of education thrqugh various means such as newsletters, workshops, paid public announcements on the radio, community billboards, and personal interviews on local cable television. · Lack of housing opportunities for a wide spectrum of City residents that include large families. · Recommended Action: The City will continue to pursue affordable housing development programs as identified in the Housing Element. E. Geol(rapbic Distribution The City's Economic Development Agency (EDA), administrator of the federal programs and other redevelopment housing programs, will concentrate most of its rehabilitation and preservation programs and activities on a citywide basis through the Single-Family unit and Mobile Home Maintenance Grant __ Programs for low- and moderate-income owners. 19 I' FOR!'.lS,HOUSI~G FORMS\CO:-.iSOLlDATED PLAN\2006.2007'.2006_2(J07 CONSOLIDATED ANNUAL ACTION PLAN DOC 01)' orSon Bernardino - Consolidated Pion - FY 2006-2007 F. Service Delivery and Mana2ement ""''"'~-' The EDA has the lead responsibility for the development and implementation of the City's comprehensive housing affordability strategy. The current five-year strategy incorporates all anticipated funding sources: federal, state, tax increment, local funding, redevelopment, and private financing. These funds create single and senior multiple housing and other identified special needs construction. The lypes of housing which will receive the greatest level of advocacy by the City will be housing for the elderly, handicapped, special needs populations and low- and moderate-income families. EDA will continue to focus on all of these new construction, rehabilitation and special needs housing issues in fiscal year 2006-2007. Numerous projects require the need to involve private developers, as well as non-profit developers, in order to enhance affordable housing in the City. EDA is able to develop and implement agreements with developers and provide gap financing, construction financing, and silent Second Deeds of Trust for first time homebuyer programs. This is coupled with the implementation of housing rehabilitation programs, grants for mobile home parks, infill housing, senior housing, and new construction that provide affordable housing opportunities in lhe City. II. OTHER ACTIONS A. Public Policies ___ The City and EDA will continue dialogue and project coordination with various public/private agencies involved in implementing the City's housing goals and continue to provide input on regulations, codes, and ordinances that could potentially have adverse effects on the development of affordable housing. B. Institutional Structure The City and EDA will continue to aggressively attract housing development to ensure that all development will be completed in harmony with the State Housing Element and Consolidated Plan's goals. During FY 2006-2007, specific actions will be taken to achieve cooperation and coordination amongst state, local, and private agencies and institutions in implementing activities. The City and EDA will continue to coordinate the execution of a regional homeless assistance plan with a countywide Homeless Coalition and Community Action Partners of San Bernardino County. These groups include: non-profit service providers, City of San Bernardino Police Department, County Board of Supervisors, County Department of Public Social Serviccs, County Department of Mental Health, County Department of Public Health, Realtors, the AFL-CIO, Veterans, the Building Industry Association, Habitat for Humanity, local colleges and job training groups. The participation of the City and EDA in this cooperative effort enables and facilitates delivery of homeless services and resources through effective networking. In addition, any development of homeless services outside the city limits serves to lessen the City's homeless problems. .......-./ 20 P \FORMS,HOL'SJ~G FORMS\CONSOLlDATEO PLA~,2006.20072006-2007 CONSOLIDATED ANNL'AL ACTION PLAN DOC Cir)' orSon Bernardino - Consolidated Plan - FY 2006-2007 C. Public Housinl( Improvements '- The Housing Authority of the County of San Bernardino ("Authority'") owns and manages about 800 units of public housing within the City limits, and nearly 2,000 countywide, for occupancy by very low- income families who pay no more than 30 percent of their monthly income for rent. The Authority's public housing program includes a mixture of single-family housing (scattered sites), multifamily housing, and special needs housing (such as for seniors and individuals with disabilities) funded under several state and federal housittg programs. According to the Authority, there are currently 15,000 applicants on the waiting list for Public Housing Programs. Because the waiting list is currently closed, the number of households eligible for, and desiring assistance, is undoubtedly much larger than documented. D. Public Housinl( Resident Initiatives Due to the size of San Bernardino County, the Authority divided its service area into seven districts. Authority Staff coordinated and monitored the election of a jurisdiction-wide Resident Advisory Council to represent the voice of the resident population in lhese districts. The Resident Advisory Council's overall purpose is to improve the quality of life and resident satisfaction within assisted housing. It also participates in self-help initiatives to enable residents to create a positive living environment for their families. E. Lead Based Paint Hazard Reduction "__ The Lead Based Paint Hazard Reduction Strategy is detailed in the Five- Y ear Consolidated Plan. It is summarized as follows: (I) Coordinating public and private efforts to reduce lead-based paint hazards and protect young children; (2) Integrating lead hazard evaluation and reduction activities into existing housing programs; (3) Public awareness through educational materials and programs; and (4) Education and advocacy and (5) lead base eradication to the extent finances are available. III. ANTI-POVERTY STRATEGY The City has set forth a comprehensive Anti-Poverty Strategy in lhe Five- Y ear Consolidated Plan that it plans to implement over the five-year period. IV. COORDINATING SERVICES The City of San Bernardino will continue to meet with public and other housing providers, private and governmental health, mental health, and social service agencies to use all available resources to their maximum levels of effectiveness to provide for San Bernardino's needy. Meetings between these parties will occur regularly throughout the fiscal year to endorse applications for funding and to discuss cooperative ventures as they present themselves. V. PROGRAMlPROJECT MONITORING '<-~ The City will undertake annual reviews of all agencies it provides financial assistance to in confonnance with 24 CFR 91.230. Findings will be provided as part of the CAPER Report due to HUD annually. 21 P 'FORMS,HOl'SING FORMS',CONSOLIDATED PLAN',:006-:007'.:006.:007 CONSOLIDATED ANNL'AL ACTION PLAN DOC City orSon Bernardino - Consolidated Plan - FY 2006-2007 The report will describe the current status and success of planned activities as described in the Plan and ,,~. other information that describes progress and successes of activities. The Five-Year Consolidated Plan priorities will be evaluated through comparison of goals, set out for the fiscal year compared with productivity characteristics and completion data for each program or activity set for accomplishments of those goals. The numbers with the objective presented in the Report will state each program and priority's overall effectiveness. VI. PROGRAM REQUIREMENTS "CPD Consolidated Plan System Listing of Proposed Projects" identifies the City's Priority Description and One-Year COBG Funds Investment Plan for non-housing community development activities for the City of San Bernardino. Proposed non-housing activities include public facility improvements such as the rehabilitation of public service facilities including but not limited to senior centers and emergency shelterlhomeless facilities, park/playground improvements, installation of lighting within low- and moderate-income neighborhoods, as well as the funding of a multitude of public services/agencies. A majority of the public service agencies funded provide counseling, food, job training, child care and serve the City' seniors, children/adolescents, youth programs, shelters, etc., and households in general. A. Specific CDBG Grant Pro2ram Submission Requirements 1. CDBG - Other resources that may become available in addition to annual grant include redevelopment low/mod funds in the amount of$4,734,200. ~- a. Program income estimated and expected to be generated during the Program Year- $400,000. (I) The amount estimated and expected to be generated by and deposited to revolving loan funds - None (2) The total amount estimated and expected to be received from each new float- funded activity that is included in the Plan - None (3) The amount estimated and expected to be received during the currenl program year from float-funded activities described in a prior statement or plan. CinemaS tar - $260,308 b. Program income received in the preceding program year that has not been included in a statement or plan - None (I) Proceeds from Section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified itt the strategic plan- $7.5 million. '""",,,., (2) Surplus funds from any urban renewal settlement for community development and housing activities - None 22 P \FORMS',HOL'SJI"G FORMS_CONSOLIDATED PLA~'.2006.2007\2006.2007 CONSOLIDATED ANNL'AL ACTION PLAN DOC Citv orSon Bernardino - Consolidated Plan - FY 2006-2007 (3) Any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan - None .........,..." 2. Float-funded Activities - None 3. Section 1 08 Activities - the City is presently obligated to repay one Section 108 loan, the CinemaSlar for a total of$5,560,000. EDA currently uses the revenue stream (lease payments) to pay the debt service on the loan. This project continues to provide jobs for the low- and moderate-income population of the City of San Bernardino, as well as provide a reliable revenue source to the City in the form of sales tax and property taxes, which are reinvested in the community in the form of services and the provision of public improvements. On March 5, 2005, the City was notified of an award of$7.5 million in Section 108 HUD Loan Program. a. North Arden-Guthrie - Retail/Entertainment Shopping Center ',,"" Acquisition of 24 privately owned residential structures or vacant parcels; relocation of approximately 80 residential tenants; demolition of approximately 20+ residential structures; development of over 17 acres containing between 122,000 to 186,000 square feet of retail, restaurants, entertainment and recreational shopping center together with infrastructure such as parking, and on and off site street improvements. Total project costs are estimated at $ 1 0 million (includes land acquisition) and development costs are estimated at $ 1 7 million. The sources of funds for this project are as follows: Developer EquitylFinancing contribution of approximately $22 million and $5 million in resources from the Redevelopment Agency and Section 108 Loan Guarantee Funds. 4. Urgent Needs - N/A B. Specific HOME Submission Requirements 1. Resale Provisions - The City's resale or recapture provision ensures the affordability of units acquired with HOME funds in compliance with 24 CFR 92.254(a)(4). Specifically, homebuyers agree that for a fifty five (55) year period commencing on the date of recordation of the Agency Deed of Trust and the Affordable Housing Covenant to notify the Agency not less than thirty (30) days prior to: (i) the sale of the New Home, (ii) the transfer of any interest in the New Home, or (iii) any refinancing of the lien of the First Mortgage Lender to which the lien of the Agency Deed of Trust is subordinate. This is a shared appreciation formula between EDA and homebuyer based on a declining scale. 2. HOME Tenant Based Rental Assistance - N/A 3. Other Forms of Investment - Private Resources from Community Housing Development Organization (CHDO) Partners. 23 P 'FORMS\HOUSING FORMSICONSOllDATED PLAN',2006.2007\2006-2007 CO-"lSOLIDATED ANNUAL ACTION PLAN DOC '><--,,", -- Otl' of San Bernardino - Consolidated Plan - FY 2006-2007 4. Affirmative Marketing - The City will use combine efforts of CHDOs, realtors, newspaper advertisement and flyers to affirmatively market homes to all residents and prospective buyers regardless ofrace, color, gender, marital status, religion and disability. 5. MinoritylWomen's Business Outreach - The City's outreach effort is fully described in the M/WBE Plan which includes actions thai will be taken to establish and oversee the inclusion, to the maximum extent possible, of minority and women, and entities owned by minorities and women, including without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services, in all contracts, entered into by the City with such persons or entities, public and private, in order to facilitate the activities to provide affordable housing under the HOME Program in compliance with 24 CFR 92.351.(b). 6. Program Income - Approximately $350,000 7. Refinancing - N/A In fiscal year 2006-2007, the City will receive $1,563,059 in HOME funds of which $22,321 is American Dream Down Payment Initiative (ADDI). HOME funds will be allocated as follows for the new fiscal year: 10% ($156,305) for EDA HOME administration; 15% ($234,459) to qualified Community Housing Development Organizations (CHDO's) who aid in the provision of affordable housing in the community; 5% ($78,153) for CHDO operations and capacity building. The ADDI Program was signed inlo law by the President in December 2003. Together with HOME funds, these limited funds will assist low-income families to become first-time homebuyers. The remaining $1,094,142 will be used for the provision or preservation of affordable housing which benefits low-income persons (80% and below median income). The type of the activities that may be funded include, but are not limited to, rehabilitation or construction of multiple housing; homebuyer programs; acquisition ofland, public improvements to facilitate affordable housing and lransitional housing. These funds will be used to augment the Economic Development Agency's annual Housing Fund. C. Specific ESG Submission Requirements The City solicited and made funding recommendations based on experience, ability to provide service and the number of households expected to benefit from the program. Match grant funds were also identified in each recipient's application from fund raising, in-kind donations and volunteers labor donated. Staff together with a representative from San Bernardino's County's Community Action Partners, Incorporated assisted in reviewing and rating the ESG proposals. Each proposal was evaluated on: project narrative, past experience, cost effectiveness, leveraging and overall quality of proposal. P FORMS'HOUSING FORMSICO!,;SOLlDATED PLA~Z006.2007 2006.2.D07 COt-;SOLJDATED ANNUAL ACTION PLAN DOC 24 """,,,.,.," '-' ~.... '- . ;. ....""".... City of San Bernardino Analysis of Impediments to Fair Housing Choice - April 2006 Consultants to the City P & D Consultants 800 E. Colorado Blvd., Suite 270 Pasadena, CA 91101 8279.02 -- "-- Table of Contents Chapter 1. "..,~- 2 2.3 24 2.5 "".~- Introduction. Page .1-1 11 Purpose of Report.. ......1-1 1 2 State and Federal Fair Housing Laws.. 1.21 Federal Laws.. 1.2.2 California Laws... 1.2.3 Fair Housing Defined.. 1.24 Impediments Defined. .... ...1-1 .1-1 ........1-1 .1.2 .. ....1-3 1 3 . .. 1-3 Scope of Analysis .. 1.4 Organization of Report.. ..... 1-3 1.5 Preparers of Report and Data Sources.. ........1-4 16 .. .. .. 1.4 ..... ....1-4 ....1.5 ..... 1.5 Public Participation. 1.6.1 Service Agency Interviews.. 1.6.2 Community Meeting. 1.6.3 Public Review of Draft AI.. Community Profile.. .2-1 2.1 . . . .. . .. . ......... ....... ......... ...~1 2-1 2.2 . ................ ...2.3 Demographic Profile. 2.1 1 Population. 2.1.2 Age Composition 21.3 Race and Ethnlclly.. 22 ... ..... .......2.6 Income Profile.. Household Characteristics. 2 3.1 Large Households. 2.3.2 Large Household Profile.. 2.33 Elderly. 2.3.4 Persons with Disabilities. 2.3.5 Persons with HIV/AIDS. . 2.3.6 Homeless Persons. .. 2-8 .. .. . .. .........2-8 .......................................2~ .... 2-9 ................. ................ 2-10 . ........... ....... .....2.11 .... ........2-11 Housing Profile. 2.4.1 Housing Growth. 2.4.2 Tenure and Vacancy. 2.4.3 Housing Type.. 244 Housing Cost and Affordability.. 2.4.5 Housing Condition.. . .2.12 .2-12 .....2-12 2-14 . .. ...2-14 .... ...........2-17 Affordable Housing.. 2.5.1 Public Housing. . ........... ........2-17 ... 2-17 Page TOC-l CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice a e of Content Chapter 2.5.2 2.5.3 Tenant.Based Rental Housing Assistance... Project-Based Rental Housing Assistance.... Page ............. ..... ......2.18 ............ ............2-18 2.6 Licensed Community Care Facilities.. ......2-20 2.7 Accessibility of Public Transit.. 2.7 1 Public Transit.. . 2.72 Major Employers. ..... .....2-22 ......2.22 .. . ............ .... ...2.22 3. Fair Housing Profile.......... ........ ..... .... ...... .......... .................. ......... ...... .......... ............ 3-1 4. 43 3.1 Fair Housing Practices.. . .........3-1 3.1.1 Fair Housing Practices in the Homeownership Market... ........3.1 31.2 Agency Coordination in the Homeownership Market .................. .... ...3.3 3.1.3 Fair Housing Practices in the Rental Market ..3-4 3.1.4 Agency Coordination in the Rental Market.. ..............3-5 3.2 . . ...........3-6 .......3-6 . ..3-7 ......3.10 .. ..............................3.12 Fair Housing Services.. . 3.2.1 Fair Housing Service Providers. 3.2.2 Discrimination Complaints.. 3.2.3 Hate Crimes.. 3.2.4 Fair Housing Services and Programs.. Lending Profile ........................... ...........................4-' 4.1 LegislatIve Protection.. 4 1.1 Community Reinvestment Act. 4 1.2 Home Mortgage Disclosure Act.. .........................4-1 ........4-1 ... ........ .....4-1 42 Conventional Loans. 4.2.1 Income of Applicants.. 4.2.2 Race Differences by Income of Applicant ... ...4-2 ... ..4.3 .......................................4~ Conventional Home Improvement Loans. 4.31 Race of Applicants.. 43.2 Income of Applicants.. . ..4-5 . .. .... .... ...4-5 . ..4-6 44 Conventional Financing by Lender.. .......4-6 4.4.1 Home Purchase Loans and Home Improvement Loans ...... ....................4-6 4.5 4.6 City/County-Sponsored Home Assistance and Rehabilitation Programs 4.5.1 Homeownershlp Programs. 45.2 Home Improvement Programs... .... ..... ....4-9 . . . ..4-9 ..4.10 Government.Backed Home Loan Applications ... 4.6.1 Home Purchase Loans.. . ... . ..........4.11 ...... .. . . ...... ...... .....4-11 4.8 4.7 Lending in Low/Moderate Income and Minority Neighborhoods ............ ......4.12 ..........4-13 "",,,,..~ ' Subpnme Lending Market.. PJge TOC.2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice a e of Content Chapter Page 5. 5.3 6. 4.9 Predatory Lending.. 4-14 4.10 Home Insurance Loan Outcomes.. ...4-15 Public Policies and Programs............ .5-1 5.1 General Plan and Development Policies.. 5.1.1 General Plan Land Use Element 5.1.2 General Plan Housing Element. 5.1.3 Moratoriums/Growth Management. ...................5.1 ......... 5.1 ................................~1 . .....5-2 5.2 Zoning and Building Codes. 5.2.1 Development Code.. 5.2.2 Infill Housing Development. 5.2.3 Building Codes. ....5-2 . ....5.2 ....5-5 ....5-6 Community Representation. 5.3.1 Planning Commission.. ............................................ .........~6 ........................... ............................... ..~6 61 Impediments and Recommendations 6-1 Appendix A: Appendix B Potential Impediments and Recommendations.. ... ..6-1 6.1.1 Expanding Affordable Housing Opportunities.. . ......6-1 6.1.2 Rehabilitation Assistance.. ......... .... ....6.2 6.13 Public Policies and Programs Affecting Housing Development. .......6-2 6.1.4 Access to Financing. . ... .......6-3 6.1.5 Fair Housing Services and Outreach. . . .6-3 Service Provider Interviews Signature Page CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page TOC.3 ,..u Table 2-1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2-11 2.12 2-13 2-14 2-15 2.16 2.17 3.1 3.2 3.3 3-4 4.1 4.2 4.3 4.4 4.5 4.6 4-7 4.8 4-9 4.10 4.11 4-12 5.1 5.2 a e of Content List of Tables Page Age Composition. . ............. ..... ...... .....2.2 Race and Ethnicity by Person and Householder 2000. .... ....2-4 HUD Income Definitions. .. ......2-6 Household Income by Race/Ethniclly: 2000.. ....2-6 Household type and Size: 2000 ... ............2-8 Large Household Profile. ......2-9 Elderly Profile... ......................... .......2-10 Housing Growth... . ..............................2.12 Housing Tenure. . ..2.13 Overcrowding by Tenure.. ......2-14 Housing Type: 2005.. ..................2-14 Median Home Prices. .............2.15 Housing Affordability Matrix: San Bernardino County -2004 ..' . ....2-16 Housing Cost Burden by Tenure.. .. .....2-16 Age of Housing Stock: 2000. .... ..... ..2-17 Rent.Restricted Multi.family HOusing.... . ..............2.19 Licensed Community Care Facilities. .... 2.20 Race and Ethnlcity of Beneficiaries... . ............ 3.7 Discrimination Complaints filed in San Bernardino From FY 2002/03 to 2003/04.... .. .......3-8 Discrimination Complaints Received by DFEH. ..........3-9 Hate Crimes per 100,000 Population. 2001.2003. ................3-11 Disposition of Conventional Home Purchase in Ctty of San Bernardino Loan Applications by Race of Applicant. Disposition of Conventional Home Purchase Loan Applications by Income of Applicant.. Approval Rate of Conventional Home Purchase Loan Applications by Applicant Race and Income. Disposition of Conventional Home Improvement Loan Applications by Race of Applicant Disposition of Conventional Home Improvement Loan Applications by Income of Applicant. Disposition of Conventional Loan Applications by Lending Institutions. Lending Institutions Community Reinvestment Act Ratings.. Comparison of Conventional and Government-Backed Home Purchase Loan Applications. . ...... ...4.11 Disposition of Government-Backed Home Loan Applications by Race of Applicant... .....4-12 Disposition of Government-Backed Home Purchase Loan Applications by Income of Applicant. Lending to Low/Moderate Income and MinOrity Neighborhoods .... Approval Rate for Conventionally Financed Home Mortgage Insurance in San Bernardino. 2003.. . . .. . ........... ........4.16 Residential Zone Districts. 5.3 Parking ReqUirements by HOUSing Type. . ... .. . .. . 5.5 ....4-2 ... ..... 4-3 .. . .....4-4 .....4-5 . .4.6 . ........... .. .4-7 .. . .. . . ...4-8 .. ........4-12 . .......4-13 CI rv Of SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page TOC.4 a e of Content List of Figures Figure page 2-' Age Distribution of Population: 1990 and 2000.. .............. ....................... ...........2-2 2-2 Race and Ethnicity by Person: 1990 and 2000.... .......2.3 2-3 Concentration of Minority Households... . .........................2.5 2-4 Low and Moderate Income Areas ......... .. ......................................................... 2.7 2-5 Licensed Community Care Facilities Map... ..... 2-21 2-6 Major Employers Map ..... ......... ..................... ................. ................. ........ 2.23 3-1 IFHMB Discrimination Complaints by Race... .. . .... .................................... .........3-8 3-2 Hate Crimes Recorded inSan Bernardino. 1998 to 2003 ......... ....... ... ... ............ 3.10 ".""...,.." CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page TOC.5 Cater Introduction 1.1 Purpose of Report The City of San Bernardino is committed to promoting equal opportunity in housing for all of the community 5 residents. Furthermore, as a recipient of housing and community development grants from the US Department of Housing and Urban Development HUD. the City IS required to submit a certification affirmatively furthering fair housing by undertaking fair housing planning as follows: Completion of an Analysis of Impediments to Fair Housing Choice AI . Actions to eliminate identified impediments and Maintenance of fair housing records. This Analysis of Impediments to Fair Housing Choice AI serves as the City of San Bernardino s assessment of imtJediments to fair housing choice. This report is a comprehensive review of both public- and private-sector conditions and the effect of regulations, administrative policies, procedures, and practices of the City on locatIon and availability of housing. 1.2 State and Federal Fair ousing Laws Fair housing IS a right protected by both federal and State of California laws virtually every housing unit in California is subject to fair housing practices. ith these laws. 1.2.1 Federal Laws The Fair Housing Act of 1968 and Fair Housing Amendments Act of 1988 42 US Code 3601. 3619. 3631 are federal fall housing laws that prohibit discrimination in all aspects of housing. such as the sale. rental, lease. or negotiation for real property. The Fair Housing Act prohibits discrimination based On race, national origin. and religion. In 1988, the Fair Housing Act was amended to extend protection to familial status. sex, and people with dIsabilities mental or physical. In addition, the Amendment Act provides for reasonable accommodations, requiring a property owner to allow structural modifications for persons with disabilities. if requested. at their own expense. and sets housing code standards for new multi-family dwellings to accommodate the physically disabled. 1.2.2 California Laws The State Department of Fair Employment and Housing DFEH enforces California laws that provide protection and monetary relief to Victims of unlawful housing practices. The Fair Employment and Housing Act FEHA prohibits dlscrrmination and harassment in housing practices. including: ",., CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 1 - 1 C a te r ntrod tion -,.,,,-,,, . Advertising . Application and selection process Unlawful evictions . Terms and conditions of tenancy Privileges of occupancy Mortgage loans and insurance . Public and private land use practices zoning . Unlawful restrictive covenants The following categories are protected by FEHA: . Race or color . Ancestry or national origin Sex . Marital status . Source of income . Sexual orientation Familial status households with children under 18 years of age Religion . Mental/Physical Disability . Medical condition Age In addition, the FEHA requires housing providers to make reasonable accommodation in rules, policies, practices, and services to permit persons with disabilities to use and enjoy a dwelling. The law also allows persons with disabilities, at their own expense, to make reasonable modifications of the premises. -"""'~- The Unruh Civil Rights Act provides protection from discrimination by all business establishments in California. including housing 3nd accommodatIons, because of age, ancestry, color, disability, national origin, race, religion. sex, or sexual orientation hi Ie the Unruh Civil Rights Act specifically lists sex, race, color, religion. ancestry, national origin. disability, or medical condition as protected classes, the California Supreme Court has held that protections under the Unruh Act are not necessarily restricted to these characteristics Furthermore, the Ralph Civil Rights Act forbids acts of violence or threats of Violence because of a person s race, color, religion, ancestry, national Origin, age, disability, sex, sexual orientation, political affiliation, or position In a labor dispute California Civil Code section 51.7. Hate violence can be verbal or wrrtten threats, phYSical assault or attempted assault, and graffiti. vandalism. or property damage. 1.2, Fair ouslng efined in light of the various pieces of fair housing legislation passed at the federal and State levels, fair housing throughout this report is defined as follows Fair housing is defined as a condition in which individuals of sirmJar income levels in the same housing market have a like range of choice available to them regardless of racc, calor, ancestry, nalional ongh?, religion, sex, disability. arbitrary age, manta/ status, familial status, sexual orientation, source of income, or any other category which may be defined by law now or in [he future. Page '-2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r ntrod tlon 1.2. Impediments efined ithin the legal framework of federal and State laws and based on the guidance provided by t'le HUD Fall Housing Planning Guide. impediments to fair housing choice can be defined as: Any actIOns, omissions, or deCIsions taken because of race, color, ancestry, national origin, religion, sex, disability, arbitrary age, marital status, familial status, sexual orientation, source of income which restnct housing choices or the availability of housing choices: or Any actions, omissions, or decisions which have the effect of restricting housing choices or the availability of housing choices on the basis of race, color, ancestry, national origin, religion, sex, disability, arbitrary age, marital status, familial SlaWS, sexual orientation, source of income, To affirmatively promote equal housing opportunity, a community must work to remove impediments to fair housing choice. Based on the conclusions of this AI. the City of San Bernardino will take lawful steps to eliminate or reduce the identified impediments to fair housing choice. 1. Scope of Analysis ThiS AI provides an overview of laws. regulations. conditions or other pOSSible obstacles that may affect an individual or a household s access to hOUSing In the City of San Bernardino. The AI involves' A comprehenSIVe review of San Bernardino s laws, regulations. and administrative policies, procedures, and practIces An assessment of how those laws. regulations, and administrative policies, procedures. and practices affect the location, availability, and acceSSIbility of housing and An assessment of conditions. both public and private, affecting fair housing choice. The scope of analysis and the format used for this AI adtlere to recommendations contained in the FBlr Housing Planning GUide developed by the US Department of HOUSing and Urban Development HUD 1. rgani ation of Report The AilS divided Into chapters as described below: 1. IntroduClion defines fair hOUSing and explains the purpose of the report. 2. Community Profile presents the demographic, housing, and income chaiacteristics in Corona. Major employers and transportation access to job centers are identified. The relationships among these variables are discussed. 3. Fair Housmg Profile evaluates existing public and private programs. services. practices. and activities that assist in providing fair housing in San Bernardino and analyzes fair housing CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 1.3 C a te r ntrod tion '- complaints and violations in San Bernardino. Trends and patterns of impediments to fair housing, as Identified by public and private agencies. are Idenlifled. 4. Lending Profile assesses the access to financing for different groups and examines the fair housing practices of lenders, realtors, and other housing associations. 5 Public Policies analyzes public policies and actions that may impede fair housing choice in San Bernardino, including: . Public policies and actions affecting the construction of publicly assisted housing and Administrative policies concerning community development and housing activities. 6. Conclusions and Recommendations provides conclusions and recommendations to further fair housing in San Bernardino. 1.5 Preparers of Report and ata Sources Th[s report, prepared through a collaborative effort between City staff and P D Consultants. Inc. under contract to the City of San Bernard[no, is funded by Community Development Block Grant CDBG general planning and administration funds The following data sources were used to complete this AI. Sources of specific information are identified in the text. tables, and figures. 1990 and 2000 Census 2005.2010 San Bernard[no Consolidated Plan City of San Bernardino General Plan City of San Bernardino Hous[ng Element Cfty of San Bernardino Development Code California Department of F[nance DOF Population Housing Est[mates, 2005 San Bernardino County Housing Authonty. Section 8 and Public HOUSing data Home Mortgage Disclosure Act HMDA data regarding lending patterns [n 2003 Data uick housing sales actiVity data California Association of Realtors housing market data HUD Multi-Family HOUSing Inventory, 2005 . State of Cal[fornia Department of Social Services Community Care Licensing DIVision, 2005 1.6 Public Participation Public and private agencies either dIrectly or indirectly involved with fair housing issues in San Bernardino were contacted during the course of research for the AI. including non.profit fair housing services providers, local housing and social services providers, financial institutions, residential developers, and County government agencies. 1.6.1 Service Agency Interviews In preparing this AI. informal telephone interviews were conducted to obtain input on housing issues in the community_ The follOWing agencies were Interviewed: P age '.4 CITY OF SAN !:H.RNARDINQ Analysis of Impediments to Fair Housing Choice Cater ntrod tion . Home of Neighborly Service Inland Regional Center . Mary s Mercy Center Veronica s Home of Mercy Asian American Resource Center . Perris Hill Senior Center The interviews with the above listed service agencies provided insight into the following issues: Affordable hOUSing opportunities in the City are limited. Affordable housing that can accommodate persons with disabilities is even harder to find. Clients face various housing issues, such as poor housing conditions or maintenance issues and evictIons. . There is a perception that discrimination complaints based on familial status and disability are increasing. Summary notes for each interview are included in Appendix A. Appropriate Input from these agencies has been incorporated in the AI. 1.6.2 Community eeting On February 23. 2005. the Economic Development Agency conducted a Consolidated Plan community meeting for residents as well as public and social service providers. A variety of service agencies serving the general public and populations with special needs were invited to the workshop. No residents attended the public meeting However, the following organizations participated in the community meeting: . ASA Learning Center . AI-Shifa CliniC Asian American Resource Center . Assistance League of San Bernardino . Boys and Girls Club . Central City Lutheran Mission . Foothill AIDS Project Frazee Community Center Highland Senior . Home of Neighborly Service Inland Fair Housing/Mediation Board Legal Aid Society liberia Del Pueblo . Mary s Mercy Center Miracle Homework Center Option House . San Bernardino Child Advocacy Program San Bernardino Sexual Assault St Bernadine Medical Foundation . Victory Resource Center . Y CA. The Y Academy The City of San Bernardino s Community Development Citizens AdVisory Committee CDCAC chaired the community meeting. The agencies listed above were provided the opportunity to present their agency and to elaborate on the nature and extent of needs addressed by their agency. Agencies commented on the need for affordable housing and hOUSing options for persons with disabilities and other special needs as primary housing-related issues. 1.6. Public Review of raft AI The Draft AI was available for public review for a 30-day period and was placed at the San Bernardino City Hall public counter and the following public libranes: Norman F. Feldheym Central CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 1.5 C a te r ntrod tion Library. Dorothy Branch Library'. Inghram Branch Library, Howard M. Rowe Branch Library. and Paul Villasenor Page 1.6 CITY Of SAN BERNAROINO Analysis of Impediments to Fair Housing Choice Cater Community Profile A key goal for fair housing IS to foster an inclusive environment. one where people from all walks of life have the opportunity to live in a decent and suitable home. Fair housing is thus concerned with ensuring that: 1 a range In types and prices of housing is available and 2 all people are treated equally in the rental. sale. or occupancy of housing. This chapter discusses the population and housing characteristics of San Bernardino that may affect the ability of households with similar incomes, in the same housing market. to have a like range of housing choices. The City s demographic profile. income distribution. housing stock characteristics. and access to public transportation are analyzed. By assessing this information, the development of housing patterns within the City, in relation to race, ethnicity, income and other characteristics, can be determined. Due to the comprehensive scope and complexity of data presented in this chapter. various data sources have been utilized. For each section the most appropriate and current data is used. For example. data from Census 2000. the HUD-developed Comprehensive Housing Affordability Strategy CHAS. and the Population and Housing Estimates from the California Department of Finance may be used in the same section. The use of different sources may result in data that differ slightly however, the differentials are insignificant 2.1 emographic Profile 2.1.1 Population As the County seat of San Bernardino County. the City of San Bernardino encompasses approximately 60 square miles along the foothills of the San Bernardino Mountains. One of California 5 oldest communities, San Bernardino evolved from a semi-rural farming community to an enterprise city with large railroad companies and an economy based primarily upon retail commercial businesses. manufacturing. and distribution centers. In the last 30 years. the City population grew from 100.000 people to almost 200.000 as of 2005. According to the Census. the population grew by approximately 13 percent between 1990 and 2000. lower than the countywide increase of 21 percent during the same period Table 2-1 In 2000. San Bernardino remained the largest city in the County with a population of 185.401. just ahead of the cities of Fontana. Ontario. and Rancho Cucamonga Between 2000 and 2005. the San Bernardino City population grew another 8 percent. slightly more than half the countywide growth of 14 percent. CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 2.' C a te r Co n i ty rofi e Table 2.1 Population rovvth: 1 - 2 5 Total Population Percent Change urisdiction 1990 ! 2000 2005 1990-2000 2000-2005 City of San Bernardino 164.164 185.401 199.803 12.9 7.8 City of Fontana 87,535 128.929 160.015 . 47.3 241 City of Ontario 133.179 158.007 170.373 18.6 78 CIty of Rancho Cucamonga 101.409 127.743 161.830 260 267 San Bernardino County 1.418.38Oi 1.709.434 1.946.202 210 13.9 Source: 2000 Census 2.1.2 Age Composition Housing demand is affected by the age characteristics of a community, as different age groups have very different housing needs. Typically. young adult households may occupy apartments. condominiums. and smaller single-family homes because of household size and/or affordability Middle-age adults may prefer larger 110mes as they begin to raise families, while seniors may prefer condominiums, mobile homes, or smaller single-family homes that are lower cost and have less extensive maintenance needs. ~"""'Y Figure 2-1 illustrates the age distribution of San BernardinO residents in 1990 and 2000. There has been a slight decrease in median age from 28.2 In 1990 to 27.6 in 2000. and the City continues to have a younger population compared to the County as a whole. whiCh had a median age of 30.3 in 2000. However, similar to the County. San Bernardino has a sizable elderly population. In 2000. elderly residents comprised approximately 8.6 percent of both the City and the County residents. Figure 2.1 Age istribution of Population: and 2 18%l -, 17% 16% r- 15%---._._-~~'-~ : 0 1990------..-- I 14% , -iD20Q9.._ i 11% 12% r-10% -11% I I J,;' 10% ,'~ 8% i'; , ,~ ... 6% ~~ 13% -10%-- 9% 9% 10% 8% 7% 8% 7% 1 0% 1 0 % ~ .. '" ~.\i < ~: .;..; " i j-,. ..... ~ .~, ,.,.., ,<>- , ;~~~ ~, ". . '.f '}; 10% ; 80/~ 8% 9% ; <!" "0 4% ii 2% c(. it. 0% 04 , ~ . ii 1: ~" 'j; ..'<.. j~ } ~) -:-' '",i f~~ :~, , ;' ~.. .~) '-", - t i 5-9 10.14 15-19 20-24 25.29 30-39 4049 50-64 65 + Sources: 1990 and 2000 Census. P Cl 9 e 2 - 2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r Co ni ty rofi e - In 2000. 38 percent of the residents in San Bernardino were 19 years of age or younger. Tllis age structure typically signifies a family-oriented community. The most significant population change was for residents age 25.29 and 40.49. In 1990. the group at age 25-29 represented 10 percent of the population in the City. In 2000. this group dropped by three percentage points The proportion of the group age 40-49. however. rncreased three percentage points between 1990 and 2000. 2.1. Race and thnicity Race and ethnicity have implications on housing choice in that certain demographic and economic variables correlate with race. Therefore. race and ethnicity have implications on the development of the City New estimates from the U.S. Department of Housing and Urban Development HUD. based on Urban Institute research, indicate that while discrimination persists against Blacks and Hispanics searching for homes in major metropolitan areas. its incidence has generally declined since 1989. I According to the study. when Blacks and Hispanics visit real estate or rental offrces to inquire about the availability of advertised homes and apartments. they face a significant risk of recelvrng less information and less favorable treatment than comparable hite customers. Despite signs of progress, significant discrimination remains. This discrimination raises the cost of housing searches for Blacks and Hispanics, creates barriers to homeownership and housing choice. and helps perpetuate involuntary racial and ethnic segregation. --- Between 1990 and 2000, San Bernardino became increasingly diverse in its race and ethnic makeup Figure 2-2. In San Bernardrno. the hite population constituted 46 percent of the City population in 1990 but dropped to 29 percent in 2000. In contrast. the proportion of HispaniCS increased from 35 percent in 1990 to 47 percent In 2000. ThiS trend follows County. state. and national trends. Between 1990 and 2000. the Hispanic population in the United States experienced a 58-percent growth compared to a 40-percent growth of the remaining population.' In 2000. the Black population was the third largest racial/ethnic group in the City at a distant 16 percent. ASian and other raCial/ethnic groups constituted only small proportions of the population 44 percent and 3 percent, respectively Figure 2.2 Race and thnlclty by Person: and 2 50% 45% c 40% , 2 7ii 35% '3 ~ 30% 0 a. 25% '0 C 20% . u 15% I :;; a. 10% 5<l' ., 0% L 460/ 47~ r----l y 0 .. I 0 1 990 = -~- ;,i- r ~/ 0 2000 - ::(~ , 35% V 29% c ~, t; 'i: ..-- , " L_ t: .'."'. " 1 5% 16% .-', - -.::~ 1/ ;.:';.:, -. ,~~ - R1i _J.':, 4% 4% 3% V - 1- .. "!'j;> 1" --!_;j -..;." ~ EGj ',~~"-', .. - ., .. . o' / White Hispanic Black Asian Other Sources: 1990 and 2000 Census. - iscrim/nation In etro oMan Housing arkets National Results from Phase I of HDS2000, Margery f~ustin Turner, Stephen l. Ross. George Galster, ohn Yinger. Urban Institute 2002 1990 and 2000 Census CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 2 3 C a te r Co nity rofi e ~..... Comparing the racial/ethnic composition of the population with that of the householders indicates that 39 percent of households in San Bernardino were headed by hites and only 37 percent by Hispanics in 2000 see Table 2-2. The larger proportion of Hispanic population 47 percent compared with the smaller proportion of Hispanic households directly refiects the larger average household size of Hispanic households. Table 2-2 Race and thnlcity by Person and ouseholder 2 Persons Households San San San Bernardino San Bernardino Bernardino Countv Bernardino County hite 28.9 44.0 39.1 54.6 Hispanic 47.5 392 36.9 29.3 Black 16.0 8.8 17.0 8.8 AsianlPI 4.4 4.8 3.9 4.4 Other 32 32 31 2.9 Total I 100.0 100.0 100.0 1000 Source: 2000 Census -- Racial thnic Concentrations Areas with concentrated minority residents may have different needs, Figure 2.3 shows the concentration of minority households. Concentration IS defined as Census block groups with above the County average of minority households 56 percent. Minority populations are located mostly in the southern area of the City. with small pockets along Interstate 215. - P age 2.4 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice I i 1 I <) I '( l )~ < 1 ~ I ~ , t, ( \.Il , r' , , ~ : ~ y. , I \_ ,,-...too 7 ,~ _,f y''''~ ,/t'i:/' .., \ '-;': t~ . /-~!_--- )",,- /.. ----->, i 'I' / \...~ --,//__/' -, ,'/--1---... ........ , . '- - .. o. "(:.5: 0" " . ,,~ i----~~ 1...J . : .. _!-.,----~--~--;t~,.." , I ; <Ii ' I/~ \;' , ; : 0: (' \ 'y , .--- ~ l~ 'j/\ -j-~-" r--~ ~---'-~-~-/~~/< ( _-0: _~ _. _I ~-~t;~ 'I' ,I C\/~~, ( \ 'r' "-0 ,---" r."J- -r-, ')./y")" 1)/3 1i ,/ I' I "'V -" \ ,___ I""o's / .'. I ~,.,.: ~ v -' :E r-'~' -, I .. \ \ ~--y r : - - ,":g \,;x: ...._~......--....--..--..-(~---------""f~---~~~~-, \ r--- : f\ -"a^V~Wled- : / j . 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A stable income is the means by which most individuals and families finance current consumption and make provision for the future through saving and investment. The level of cash income can be used as an indicator of the standard of living for most of the population. hi Ie economic factors that affect a household s housing choice are not a faIC housing issue per se, the relationships among household income, household type, race/ethnicity, and other factors often create misconceptions and biases that raise fair housing concerns. To the extent that affordability issues disproportionately impact a particular group that is protected by fair housing laws, faIC housing concerns may also arise According to the 2000 Census. San Bernardino households had a median Income of 31.140. or just 74 percent of the countywide median income of 42,086. Middle/Upper Table 2- Income efinitions of Area MFJ 0.30 31.50 51-80 81 For purposes of housing and community development resource programming. HUD has established income definitions based on the Median Family Income MFI for a given Metropolitan Statistical Area MSA These income definitions are presented in Table 2.3. Based on these definitions. almost 35.1 percent of the City s total households in 2000 were within Extremely Low Income 30 percent MFI and Low Income 50 percent MFI levels. and 19.5 percent were within Moderate Income 80 percent MFI level. Figure 2-4 illustrates those block groups with 51 or more of the population earning incomes less than 80 percent of the Area MFI. Income GrauD Extremely Low Income Low Income Moderate Income Note: Federal housing and community development resources are typically not available for households with above 80 of the Area MFI. percent In San Bernardino. households with lower and moderate income comprrsed 54.7 percent of the total households. As shown in Table 2.4. the proportion of households with lower and moderate Income was highest among Black 639 percent and HispaniC 62.6 percent. compared to hite 43.3 percent households Table 2. ousehold Income by Race thDlClty: 2 of of of Extremely Low Moderate Middle/Upper Total of Total Low Income Incomes Income Incomes Households Households Households 0-30 MFI 31.50 MFI 51.80 MFI 80 MFI hite 22.085 39.1 14.1 109 18.3 56.7 Hispanic 20.523 36.9 I 21.8 17.5 233 37.4 Asian/PI 2.158 39 25.3 15.1 139 45.8 Black 9.459 170 317 16.1 161 36.1 Other 1.875 3.1 17.5 88 21.1 52.6 All Households 56.100 100. 208 14.4 19.5 452 . Source: 2004 HUD CHAS Data, based on 2000 Census. P age 2.6 CiTY OF SAN BERNARDiNO Analysis of Impediments to Fair Housing Choice . , < . , " i c - ~ . 01 - . to > " 0 ] < ~ ; e , 0 .. 01 ~ ~ " 0 "0 '" 0 , " < 0 ,) ~ , 0 to , E ~ 01 ~ ~ w ~ ~ ~ > 0 1 , , < C' " ~ ; ; "0 01 . "; C ~ N to E c i " 0 " "; 5 ~ (.,I 0; ~ ~ > '" 0 ~ c . c C u: ... z ;) 'Jl / \ , \ ',< \ . ) -: ~! I ~ ~ \,." . r' _'1__c{ \ , >~ . I ,_ \- ,'-" 7 ,'"' ....' -.;, , ",.',J ../~ t...' , ( .../ '. . L..,J )' ,~ ;",..... r ~"f I I' i I hH . I ~ -r--Ji -'~'''''''I 0----: : I II ~ i (. \V i-h' ~ I 1- ~ ,,' /' +---T, ' ~-+Lh---'j-{~+/ \ , I! \l-Jjll ,/ 1_"'--.:-'-',;_'__;1 r':lL'-'ffil !T.i)' , ,i}:/:a / LJ . ,'g\/\ j'O~.- ~ r 1Jl~: =6 \ '\ .- - -~ :i (Zj /1 ~ 'X _'-~'-----------r-'fi}--------:~--! ' f-~ --\' I 'I . -+-f'^:L~ ~ ,_______!~_, ,) I ' I! . ' : /--' 1-, I r-----,-f " :! ,/'--L.- I' / ~ I ~ / I r :~ --i-~t ~ i ~ g a: E~' 01 , ~ t--",r- -T ~' -........,--- ~. o. E.E: 0" o . ~w L ! r ~- i ''y 'y', , , - " ,0 0<:';;; ~l o o i' . ,0 .' o 0' Q' o " . ~ i/r';+ _ ~-~ 1ii^~'~lfOUlf:faCill I -----...... 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'I' ~-r----- ------ I c:: I I : I , I I ~ 1C---j.J-.,-.-"---'----,--1 I i, L-, ,I L~ '------j~-.-!i I I 1-'-':' r" : --+---+-~_.' I 1,____;____J.___i..___~: .J ,~- /. ' -...:... -"'-- I' ,;~~---~~~ 'I~' / '.', - ~/,':;-- . '-~".. " ,-...........- ...... -- Cater Co oity rofi e - 2. ousehold Characteristics Household characteristics are important when analyzing housing needs. Households with different characteristics have unique housing needs and may face different impediments in the housing market. For instance, families with children may face housing discrimination by landlords who fear that children will cause property damage. or the landlords have cultural biases against children of opposite sex sharing a bedroom. Discrimination can manifest itself in many forms, including higher security deposits and outright refusal to rent to families with children. This section details the various household characteristics affecting fair housing choice. The number of households in San Bernardino increased three percent between 1990 and 2000, from 54.482 to 56.330 households As shown In Table 2.5. a majority of households in San Bernardino were families 73 percent. About 21 percent of all households were female-headed households with children, much higher than the County average 15 percent. The average household size in San Bernardino Increased from 2.90 people in 1990 to 3.19 people in 2000. San Bernardino also has a considerable elderly population. Among all family households, approximately nine percent were headed by an elderly person, while eight percent of all non.family households i.e. living alone or with unrelated roommates were headed by an elderly person. Table 2-5 ousehold Type and 5i e: 2 - Female- Average Families Elderly Elderly headed household with Family Non-Family households size Families children Households Households wI children San Bernardino 3.19 730 I 262 9.0 8.1 211 San Bernardino County 3.15 76.5 I 31.0 I 9.5 11 14.8 Source 2000 Census 2. .1 Large ouseholds Large households often face discrimination in the housing market. particularly in the rental market. Property owners and managers may be concerned with the potential increase in wear and tear and liability issues related to large households, especially those With children. In addition, large households also have a higher cost of liVing and need larger homes. hile the cost of housing itself is not a fair housing issue, the competition for lower-priced housing and the scarcity of larger, low-rent units may create an enVironment where fair housing violations may occur. Many ethnic minority groups Ilave a younger age prorile and tend to have larger families than the hite population. Having more children translates into a higher cost of living and the need for larger homes. The 2000 Census reported 12,582 households Wit/l five or more members in San BernardinO. representing approximately 22 percent of the total households. The comparable figure for the County in 2000 was 20 percent. In the City. large owner.households were slightly more prevalent 12 percent than large renter-occupied households 10 percent. --- P age 2 - 8 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r Co nity rofi e - The special Census tabulations for HUD Table 2-6 further Indicate that among the large households In the City. approximately 74 percent experienced some form of housing problems, which include overcrowding, cost burden, or substandard housing conditions. This Illustrates that San Bernardino has a need for affordable housing units with three or more bedrooms. Furthermore. interviews with service providers Appendix A indicated that families with children sometimes face discrimination is the rental market. Table 2-6 Large ousehold Profile Percent of Low/Moderate Special Need Group Population' Income2 Housina Problems2 Large Households 22.4 60.9 74.4 All Households 100.0 54.8 499 Sources: 2000 Census and HUD CHAS. 2004. 2, ,2 Single-Parent ouseholds Single-parent households are likely to have special needs for housing near day care and recreation facilities and to have access to public transportation. Female.headed l1Ouseholds with children in particular tend to have lower incomes, thus limiting housing availability for this group. Also, women in general are disproportionately responsible for housetlOld.supporting activities. such as trips to the grocery store or accompanying young children to and from schools. omen using public transit are often forced to look for employment near home that will allow them time to complete these household-sustaining trips] -- In 2000, households headed by women comprised approximately 24 percent 9.544 households of all households in San Bernardino. Of these households, 2,033 female-headed households 21percent included children. Female-headed households also comprise a disproportionate number of families that are living in poverty. In the City, approximately 52 percent of the families living below the poverty level were female-headed families. SpeCifically, 91 percent of these female-headed families living In poverty Included children. CountYWide. 45 percent of the families living in poverty were female-headed families, and 91 percent of these female.headed families had children. 2" Iderly Elderly households householders 65 years or older are vulnerable to housing problem and discrimination due to limited income, prevalence of physical or mental disabilities. limited mobility, and high health care costs. In a tight housing market, the elderly, particularly those with disabilities, often face increased difficulty in finding housing accommodations. Their low income status limits ttleir ability to balance the need for housing and other necessities such as health care. Subsidized hOUSing and Federal housing assistance programs such as Section 8 are increasingly challenging to secure and often involve a long waiting list -- Blumenberg. Evelyn. Reverse Commute Transit Programs and single Mothers on elf are A Policy Mismatch Institute of TransponJtion Studies. Volume 1. Number 2: December 2002 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 2 9 C a te r - Co ni ty rofi e According to the Census, approximately 15.266 elderly persons resided In San Bernardino in 2000 and represented 8,2 percent of the total population, Approximately 7.282 persons were considered elderly with a disability. A larger proportion of senior households had low and moderate incomes 59 percent compared to allhousellolds 55 percent, hile 35 percent of the elderly l1Ouseholds experienced one or more hOUSing problems such as overpayment or inadequate Ilousing, compared to the citywide average of 50 percent, elderly residents are often less able to rnake improvements to their housing due to their limited incomes and disabilities. Table 2- Iderfy Profile Special Need I Percent of I itha Low/Moderate I Housing Groun PODulation 1 Disability' Income2 Problems2 Elderly I 82 I 47.7 58.9 35.1 All Households I 100.0 I 22.4 54.8 49.9 Sources: 2000 Census and HUD CHAS. 2004. San Bernardino has a number of affordable senior apartment developments that are income restricted: . . . . . . -- . . . . . . . . Arrowhead oods, 1650 est 16'" Street, 51 units Arrowhead Vista. 24317 East 4th Street. 40 units Casa Bernardino Retirement Center, 1589 North aterrnan Avenue, 241 Units Casa Ramona Senior Complex. 1519 est 8'" Street, 44 units Foothill Villas, 2613 est 2nd Street, 239 units effery Court Senior Apartments, 3677 Central Avenue. 184 units Laurel Place. 363 East Gilbert Street, 70 units Light s Rancho Linda. 1642 est 27" Street 50 units Mayfield Park Apts, 347 est 44th Street. 84 units Pioneer Park Plaza. 540 North F Street 161 units San Bernandlno Senior HOUSing. 1530 est Baseline Street, 74 units St Bernardlne Plaza, 584 est 5Th Street. 150 units TELACU I Sierra Vista Senior Apartments. 650 est 6'" Street. 75 units TELACU II Monte Vista Senior Apartments, 451 North H Street, 75 unrts TELACU III Buena Vista Senior Apartments. 365 East Commercial Road. 75 units The Plaza, 555 North G Street. 160 units The Villas. 2985 Nortll G Street. 97 units As identified later in Table 2.16, 21 state-licensed elderly reSidential facilities With a capacity of 597 beds are located in the City, with the ability to accommodate 35 persons with dementia. In addition. five adult day care facilities With a capacity of serving 250 reSidents. including the elderly. 2, .5 Persons with isabilities F air housing choice for persons with disabilities can be compromised based on the nature of their disability. Persons wittl physical disabilities may face discrimination in the housing market because of the use of wheelchairs. need for home modifications to improve accessibility. or other forms of assistance. Landlords/owners sometimes fear that a unit may sustain wheelchair damage or may refuse to exempt disabled tenants with service/guide animals from a no'pet policy. A major barrier to housing for people With mental disabilities is opposition based on the stigma of mental disability. Landlords often refuse to rent to tenants with a history of mental illness. Neighbors often object when a house becomes a group home for persons with mental disabilities. hi Ie housing '- P age 2.10 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r Co n ity rofi e '........ discrimination is not covered by the Americans with Disabilities Act ADA, the Fair Housing Act prohibits housing discrimination against persons with disabilities, including persons with HIV/AIDS. An estimated 36.635 San Bernardino residents over five years of age had one or more disabilities. comprising about 22.4 percent of the City population over five years of age' This compares to 19.8 percent for San Bernardino County. According to the 2000 Census, of the 27.014 working age 16. 64 years residents with disabilities, 45 percent were employed. Specifically, according to the 2000 Census, 14.465 persons, or 7.8 percent of the population or 40 percent of those with disabilities in San Bernardino indicated they had a physical disability. Similarly, 7 percent of the population had a physical disability, representing 39 percent of those with a disability. countywide. As part of this AI study, the Inland Regional Center was interviewed Appendix A. Representative of the Center Indicated that there is a shortage of affordable housing options for persons with disabilities. The Americans With Disabilities Act ADA of 1990 and amendments to the Fair Housing Act. as well as state law, require ground-floor units of new multi-family construction with more than four units to be accessible to persons with disabilities. However, units built prior to 1989 are rarely accessible to persons with disabilities. Furthermore, not all new construction may have the range of modifications needed by specific Individuals. Older units. particularly older multi-family structures. are very expensive to retrofit for disabled occupants because space is rarely available for elevator shafts. ramps, widened doorways, etc In addition to changes to the units. the site itself may need modification to widen walkways and gates, and to install ramps. 2, ,6 Persons with AI S - Persons with HIV/AIDS face an array of barriers to obtaining and maintaining affordable. stable hOUSing. For persons living With HIV/AIDS. access to safe, affordable housing is as important to their general health and well.being as access to quality health care. Stigmatism associated with their Illness and possible sexual orientation can add to the difficulty of obtaining and maintaining housing. Persons with HIV/AIDS also require a broad range of services, including counseling, medical care, in-home care, transportation and food provision. According to the County of San Bernardino Department of Public Health, 2.351 San Bernardino County residents With AIDS were reported to the Center for Disease Control during the period of 1983 to 2000.5 Specifically. the City of San Bernardino accounted for 24 percent 562 of the cases. ranking the City third among all County jurisdictions in terms of prevalence of cases on a per 100.000 baSIS 303 cases per 100,000. At 518 cases per 100,000, Moreno Valley had the highest rate of AIDS cases, followed by oshua Tree at 428 cases per 100.000 and San Bernardino at 303 cases. 2. . I~ omeless Persons Formerly homeless persons have a very difficult time finding housing and moving from transitional housing or other assistance program to permanent housing. Housing affordability for those were forme.ly homeless is challenging from an economics standpoint, but thiS demographic group may also encounter fair housing issues when landlords refuse to rent to formerly homeless persons. The perception may be that they are more economically and sometimes mentally unstable. Because of the transient nature of the homeless population and the regional nature of the homeless issues, countywide statistics provide a more reliable view of the homeless problem. Like many areas of California. San Berna. dino County has a growing homeless population, due largely to the -- The Census estimates of disabilities include temporary disabilities that lasted for more than six months. San 8ernardlno AIDS Program Report, anuary 2003. CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 2 1 1 C a te r Co nity rofi e - lack of affordable housing. According to the San Bern,'1ino County 2003 Homeless Census and Survey, between 14,861 and 23,549 unduplicated San Bernardino County residents experience homelessness in a given year. This range represents between 0.8 percent and 1.3 percent of the County s total population. This count may include persons living on the streets, in shelters, in a garage. or sleeping from sofa to sofa of a friend s house. Specific information on the homeless population in the City of San Bernardino is not available. In general, national estimates place the horneless population at approximately one percent of the population. Using this figure. an estimated 1.850 homeless persons may reside in the City of San Bernardino. 2. ousing Profile This section addresses characteristics of the housing supply in the City of San Bernardino. including type. age, condition. costs. and availability. Household characteristics strongly infiuence housing preferences and needs. For instance, single-person households often occupy smaller apartments or condominiums, such as one-bedroom units. Married couples often prefer larger single-family homes. particularly if they have children. These patterns underscore the need to provide a diversity of housing opportunities that allow different types of households the opportunity to live in San Bernardino. 2. .1 ouslng rowth '- The 2000 Census reported 63.535 housing units in San Bernardino. representing an increase of eight percent since 1990 Table 2-13. This level of growth was greater than that experienced by the cities of Colton and Redland, while Fontana and Loma Linda accounted for the largest growth among the surrounding cities. The countywide increase was 11 percent during the same period. Table 2- ouslng rowth HousinQ Units Percent Change urisdiction 1990 2000 1990-2000 City of San Bernardino 58.804 63.535 8.0 City of Colton 14.767 15.680 6.2 City of Fontana 29.383 35.908 22.2 City of Highland 12.562 14.858 18.3 City of Lorna Linda 6.524 8.084 239 City of Redlands 23.189 24.790 6.9 City of Rialto 23.836 26.045 9.3 San Bernardino County 542.332 601.369 109 Source , 990 and 2000 Census 2. .2 Tenure and acancy The tenure distribution owner versus renter of a community 5 housing stock influences several aspects of the local housing market. Residential stability is influenced by tenure. with ownership housing evidencing a much lower turnover rate than rental housing. Housing overpayment cost burden. while faced by many households regardless of tenure. is far more prevalent among renters. Tenure preferences are primarily related to household income. composition. and age of the householder. The City of San Bernardino s tenure distribution is almost evenly divided between '-' P age 2.12 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r Co nity rori e -- owner- and remer-occupied units, with 52 percent of households being owner-occupied and 48 percent renter-occupied, Vacancy rates are an indicator of the availability of housing In a community. Vacancies help moderate the cost of housing. but low vacancies lead 10 rent escalation and inflating home values. Generally. an optimal vacancy rate is 1.5 10 2 percent in the for-sale market and 5 10 6 percent in the rental market. At these rates, vacant units are available to facilitate mobility, and property owners should be able 10 increase rents moderately without placing undue burden on tenants. hen vacancy rates drop below these thresholds. the increased demand and reduced supply allow rental rates to rise. The vacancy rates in San Bernardino are slightly above optimal vacancy rates for the for-sale market and slightly below for the for-rent market. Specifically. the for-sale market showed a vacancy rate of 3 percent and the rental market a vacancy rate of 4.5 percent Table 2- ouslng Tenure 2000 Tenure Vacancv urisdiction Owner Renter Vacant San Bernardino 52.4 47.6 1105 San Bernardino County 64.5 35.5 11.86 Source: 2000 Census and California Dept. of Finance, 2005 Estimates - vercrowding Overcrowding is an important Indicator of household need. Unit overcrowding is typically caused by the combined effect of low earnings and high housing costs in a community. The State HCD and HUD define overcrowded households as households with more than one person per room. excluding bathrooms. kitchens. hallways. and porches. Severely overcrowded households are households with more than 1.5 persons per room. Overcrowding accelerates deterioration of homes and infrastructure, and results in a shortage of on-site parking. As indicated by the 2000 Census. 21 percent of the households In San Bernardino were overcrowded. The incidence of overcrowding in San Bernardino was much higher than countywide average 15 percent _ The percentage of severely overcrowded households in San Bernardino was 12 percent in 2000. also higher than the County at 8 percent Table 2-10. Table 2-1 vercrowding by Tenure of of of All Owner Occuoied Units Renter Occuoied Units Housin Units Citv Countv Citv Countv Citv Countv Overcrowded 7.2 5.3 121 10.3 9.5 7.0 101.1.5 persons/room Severely Overcrowded 83 4.9 15.4 12.5 11.7 7.6 1.5 oersons/room Total Overcrowded 15.5 10.2 27.5 228 21.2 14.6 1.0 person/room Source: 2000 Census. -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 2 . 1 3 Cater Co ni ty ro fj e -- The prevalence of overcrowding varies signif~cantly by Income, type, and size of household. Generally, lower income houoeholds and large families are disproportionately affected by overcrowding. However, cultural differences also contribute to the overcrowding condition since some cultures tend to have larger household sizes. Overcrowding IS typically more prevalent among renters than among owners. Of the City s renter-households in 2000, approximately 28 percent lived in overcrowded conditions compared to16 percent of the City 5 owner-households. 2.. Dusing Type The City s housing stock IS comprised primarily of single-family homes. According to the California Department of Finance estimates, slngle.family housing accounted for 63 percent of the housing stock In the City and multl.family housing accounted for 30 percent in 2005 Table 2-11 ith the exception of Colton and Loma Linda. other surrounding jurisdictions all had greater proportions of single-family housing. The County had 74 percent single-family housing compared to only 19 percent multi-family hOUSing. San Bernardino and Rialto had the highest percentage about 7 percent of mobile homes compared to surrounding jurisdictions. Table 2-11 ousing Type: 2 5 - Housina Tvoe Single Multiple Mobile urisdiction Familv Familv Home Total Units San Bernardino I 630 I 30.1 6.9 64.553 Colton l' 62.7 I 32.2 5.1 16.057 Fontana I 80.6 ! 17.3 2.1 42,144 Highland : 779 , 170 5.1 16.017 I Lama LWlda 50.4 I 43.1 , 65 8.661 Redlands 680 I 28.5 3.5 25.984 Rialto I 73.3 19.9 68 26.603 San Bernardino County I 74.4 19.0 6.6 645.639 ~ Source: CJilfornla Department of Finance 2005 2,. ousing Cost and Affordability wnership Dusing Costs According to the Data ulck Information Systems. the median price for a home in San Bernardino rose 37 percent between une 2004 and une 2005 Table 2-12. Home prices in two surrounding jurisdictions increased at higher rates than In San Bernardino -- Adelanto 45 percent and Barstow 56 percent. Between une 2004 and 2005, the countywide increase was 31 percent. The median home price in San Bernardino 247,500 was among the lowest in the County, and was 72.500 less than the County median home price of 320,000 Only two junsdlctlons Adelanto and Barstow had lower home prices. '- Page 2 -14 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a Ie r Co nity ro fi e - Table 2-12 edian ome Prices , Change Units uno Location Sold Median Home Prices 2004-2005 San Bernardino 388 247,500 37.2 Adelanto 68 218,000 45.3 Barstow 55 132.000 55.6 Big Bear Lake 77 349.000 35.8 Colton 86 300,000 22.7 F oma na 425 370.000 240 Grand Terrace 18 355.000 30.3 Highland 86 . 330,000 32.0 Lorna Linda 22 372.000 15.3 Redlands 91 410,000 23.6 r::ialto 168 358. 500 27.9 - r ucaipa 72 348.000 16.3 San Bernardino County 3.414 320,000 30.6 Source: Ddta ulck Information Systems, 2005 - Rental ousing Costs As previously stated, San Bernardino is nearly evenly split between renters and owners. Given the importance of the rental market in the City. It is cntical to evaluate the affordabillty of the rental hOUSing stock. Furthermore. the number of people priced out of the homeownership market IS steadily increasing. Consequently, there has been a noticeable shift in tenure trends, with an increasing number of people remaining in the rental market exacerbating the competition for scarce affordable housing units The following are current December 2005 rental rates based on internet search of rental listings in the City of San Bernardino: . Studio: 846 - 1,250 . One-bedroom: 775 - 1,450 . Two-bedroom: 915 - 1,750 . Three-bedroom: 1,245. 2.500 Dusing Affordability hile affordability is not a fair housing concern, it does affect housing choice. Fair housing concerns may also arise when housing affordability issues disproportionately affect groups that are protected by fair housing laws. Housing affordability is dependent upon income and hOUSing costs Using updated income guidelines, current housing affordability can be estimated for various income groups Table 2-13. Given the median home prices presented in Table 2-12. homeownershlp is beyond the reach of lower and moderate income households, Similarly. lower and moderate income households cannot afford market rents in the City of San Bernardino. '- CITY OF SAN BERNAROINO Analysis of Impediments to Fair Housing Choice Page 2 15 C a te r Co oity rori e '- Table 2-1 ousing Affordability atnx: San Bernardino County - 2 Maximum Affordable Income Levels Housin Costs Annual I Affordable Taxes Income Grouo Income Payment Utilities Insurance Home Rental Extremely Low 0-30 MFI One Person 11.400 285 50 200 6.153 235 Small Family 14.650 366 50 200 20.436 316 Large Family 17.600 440 50 200 33.400 390 Low 31.50 MFI One Person 19,000 475 50 200 39.553 425 Srmll Family 24.450 611 100 200 54.715 511 Large Family 29.300 733 150 200 67.240 583 Moderate 51-80 One Person 30,400 760 50 200 89.653 710 Small Family 39.100 978 100 200 119.098 878 Large Family 46.900 1.173 , 150 200 144,587 1.023 Notes 1. Small Family 3 persons large Families 5 or more persons 2 Utility costs for renters assumed at 50! lOOt 150 per month 3 Monthly affordable rent based on payments of no more than 30 of household mcome 4 Property taxes and Insurance based on a'IIerages for the region 5. Calculation of affordable home sales prices based on a down payment of 10 ,annual mterest rate of 6,5 ,30- year mortgage, and montllly payment of gross household income 6 Median Family Income In 2004 for San Bernardmo County 54.300 - ousing Cost Burden State and Federal standards for housing cost burden are based on an income-ta-housing cost ratio of 30 percent and above, Households paying more than 30 percent of their income on housing have limited remaining income for other necessities. Upper income households generally are capable of paYing a larger proportion of Income for hOUSing therefore. estimates of hOUSing cost burden generally focus on low and moderate income households. Table 2-14 shows the distribution of overpaYing households in the City of San Bernardino, A higher percentage of renter- households 48 percent were affected by cost burden than all households in the City 38 percent, Table 2-14 Housing Cost Burden by Tenure City of San Bernardino San Bernardino County Percent of Percent of Housina Problem Number Households Number Households Cost Burden All Households 21.318 38,0 176.990 33,5 Owner. Occupied 8,544 29,0 100.247 29.4 Renter-Occupied 12.789 480 77.189 412 Source: HUD CHAS Data 2004 - P age 2.16 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r Co n ity fO ri e '-- 2. .5 Dusing Condition The age of housing is commonly used by state and Federal housing programs as a factor to estimate rehabilitation needs in communities. Typically. most homes begin to require major repairs or have significant rehabilitation needs at 30 or 40 years of age. Approximately 46 percent of the City s housing stock IS over 30 years old. indicating the potential need for rehabilitation and continued maintenance for more than half of the City s housing Table 2-15. Interviews with service providers Appendix A Indicated that some landlords do not upkeep the units and tenants have difficulty getting repairs done and have to report the conditions to the City s Code Enforcement or County Health Department Table 2-15 Age of ousing Stoc : 2 -- Number of Units I Percent of T atal San Bernardino San Bernardino Year Built San Bernardino Countv San Bernardino County 1939 or earlier 4.605 23.701 7 4 19401949 6.637 29.612 10 5 19501959 12.750 75.800 20 13 1960.1969 10.334 82.983 16 14 19701979 11.078 120.138 17 20 1980 1 989 11.946 165.036 '9 27 19902000 I 6.064 1 04 099 10 17 Total I 63.414 601.369 100 100 Source: 2000 Census 2.5 Affordable ouslng The availability and location of public and assisted hOUSing may be a fair housing concern. If such housing IS concentrated In one area of a community. a household seeking affordable hOUSing IS limited to choices within that area. In addition. public/assisted housing and Section 8 assistance should be accessible to lower income households regardle.ss of race/ethnicity. disability or other special needs populations. 2.5.1 Public Dusing The Housing Authority of the County of San Bernardino HACSB operates the Public Housing program throughout the County. The Public HOUSing inventory IS comprised of 2.395 units owned and/or managed by the HACSB. In the City of San Bernardino. the HACSB maintains 26 scattered slles of conventional public hOUSing 140 units and two non-scattered conventional housing complexes 550 units. totaling 690 conventional public hOUSing units The HACSB also owns three affordable housing developments one is a seOlor complex that total 102 units. Among these 792 units, 138 are one-bedroom units. 334 are two. bedroom units, 226 are three-bedroom units. 74 are four.bedroom units, and 20 are five-bedroom units. The racial/ethnic breakdown of public housing tenants IS: 43 percent Black, 39 percent Hispanic, 9 percent Asian, 8 percent hite. and less than 1 percent others ....... CITY OF SAN BERNARDIN;') Analysis of Impediments to Fair Housing Choice Page2-17 C a te r Co ni ty rofi e "'- 2.5.2 Tenant-Based Rental Dusing Assistance HACSB also administers the Section 8 Housing Choice Vouchers Program Section 8. Section 8 is a rent subsidy program that helps low income families up to 50 percent MFI and seniors pay rents in private units. Section 8 tenants pay a minimum of 30 percent of their income for rent and the Housing Authority pays the difference up to the payment standard established by the Housing Authority. The program offers low income households the opportunity to obtain affordable. privately owned rental housing and to Increase their housing choices. The Housing Authority establishes payment standards based on HUD-establlshed Fair Market Rents. The owner s asking price must be supported by comparable rents in the area. Any amount in excess of the payment standard is paid by the program participant. As of 2004. 8.729 households received Section 8 assistance in San Bernardino County. The City of San Bernardino has the largest proportion of vouchers 2.680. Of the vouchers administered by the HACSB. more than half the vouchers are used by Black families. followed by hite and Hispanic families with more than 20 percent each. Most Section 8 recipients rent two-bedroom units. followed by three- and one-bedroom units. Almost 1.700 vouchers were in use by elderly families. and 65 percent were In use by extremely low income less than or equal to 30 percent MFI families. Because of the large number of families waiting for rental assistance. the wait list for the Section 8 program has been closed for over two 2 years. and there are no plans to reopen the list in the Public Housing Agency Plan period 2005-2009. Federal policies and budgetary constraints may also have a drastic effect on the provision of Section 8 In the next few years. Interviews with service providers Appendix A indicated that the long walt is an impediment to many lower income households. '- 2.5. Pro ect-Based Rental ousing Assistance In addition to public housing and Section 8 assistance. 24 publicly assisted housing projects proVide affordable housing to 2.795 110useholds. All of these developments maintain proJect. based Section 8 rental assistance or other subsidies to ensure affordabllity of the units to low income 11Ouseholds up to 50 percent MFI. Table 2-15 proVides data on the Citys rent-restricted multi. family housing stock. "-' Page 2.18 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice C a te r Co ni ty rofi e - Table 2-15 Rent-Restricted ulti-family ousing '- I Potential Earliest Project Total Units Assisted Units Proqram Expiration Arrowhe.3d Vista 40 40 Section 202/8 3/25/2005 24317 East 4th Street Arrowhead oods 51 51 -.. ... 1650 est 16\1"1 Street Beautiful Light Inn 100 100 Section 202/8 2/24/2004 1365 N. aterman Ave. Casa Bernardino Retirement Ctr 241 241 ... ... 1589 North aterman Avenue Casa Ramona Senior Complex 44 44 ..- ... 1519 est 8'1"1 Street Foothill VIllas 239 239 Section 8 5/31/2004 2613 est 2"" Street Foothill Villas 239 239 Section 8 11/30/2005 2613 est 2nd Street effery Court Senior Apts. 184 184 ... -.. 3677 Central Avenue Laurel Place 70 70 -.. ... 363 East Gilbert Street Light s Rancho Linda 50 50 ... ... 1642 est 2]1t. Street Little Zion Manor 125 125 Section 8 6/30/2021 2000 ubilee Court Mayfield Park Apartments 84 35 Section 8 9/30/2004 347 est 44\h Street Meadowbrook Tower Apts 305 210 Section 8 6/30/2004 191 est 2flf1 Street Pioneer Park Plaza 161 160 Section 8 9/30/2007 540 North F Street Pioneer Park Plaza 161 161 I Section 8 3/31/2006 540 North F Street San Bernardino Senior Housing I 74 I 74 Section 202 I 9/1 5/200 7 1530 . Baseline Street San Bernardino Village Green I 240 65 Section 8 3/31/2008 2122 Chestnut Street St. Bernardine Plaza 150 148 Section 202 3/22/2006 584 est 5\1"1 Street Sterling Village 80 80 Section 8 4/28/2013 7630 Sterlinq Avenue TELACU I Sierra Vista Senior Apts 75 74 Section 8 11/30/2008 650 est 6\h Street TELACU II Monte Vista Senior Apts. 75 74 Section 8 11/30/2008 451 North H Street TELACU III Buena Vista Senior Apts. 75 74 Section 8 11/30/2008 365 East Commercial Road The Plaza 160 160 ... -.. 555 North G Street The Villas I 97 97 ... ... 2985 North G Street Total J 3.120 2,795 Source: HUD Multi-Family Housmg Inventory. anuary 2005 and City of San Bernardmo. March 2006. -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page2 19 C a te r Co ni ty rofi e -- 2.6 Licensed Community Care Facilities Persons with special needs such as the elderly and those with disabilities must also have access to housing in a community. Community care facilities provide supportive housing environment to persons with special needs in a group situation. Restrictions that prevent this type of facilities from locating in a community impede the equal access to adequate housing for special needs groups. According to the State of California Department of Social Services. Community Care Licensing Division, 112 licensed community care facilities are located in the City of San Bernardino. Table 2- 16 summarizes these facilities by type and by capacity. The majority of community care capacity in San Bernardino is for homeless persons, 652 beds or 33 percent. and elderly persons. 597 beds or 31 percent age 60 and above. However, residential care facilities for persons with disabilities are limited. According to the Service Provider Interviews Appendix A , development of such facilities is often met with animosity. Figure 2-6 shows the geographic distribution of these facilities in relation to low and moderate income areas in San Bernardino. Although there are ciusters of facilities in various areas throughout the City, no concentration in the low and moderate income areas is evident. Chapter 4 describes public policies in relation to siting requirements for community care facilities. Table2-16 Licensed Community Care Facilities -- Total I Canacit number of beds or oersons Number of I Developmentally Tvoe of Facilitv Facilities Total Disabled Dementia Adult Day Care 5 250 250 i 0 Adult Residential Facility I 38 323 0 0 Alcohol! Drug Residential 7 N/A 0 0 Group Home 19 132 0 0 Residential Care for the Elderly 21 597 01 35 Small Family Homes 1 6 01 0 Emergency Homeless Shelters 4 94 0 0 Permanent Supportive Homeless Shelters 4 136 0 0 Transitional Homeless Shelters 13 422 0 0 Total I 112 1,960 250 35 Source: Stale of California Department of Socia) Services Community C<lre licenSing DIVISion. 2005 NOles: 1 The specialized care columns are not mutually 8xclusive. For el<.ample. a facility may have a talal capacity of 10 beds, with 8 beds for de'Jeloprnentally disabled children and 4 of the 10 beds are deSigned to accommodate non-ambulatory children 2 Group homes provide specialized treatment for persons under age 18 Group home residents are referred by the Department of ChIldren and Family Services as well as the Probation Department. 3. Small family homes provide care to children m licensees own homes. Small family residents are usually children on prObatIon. developmentally disabled children. children wllh other special needs. and some foster children. 4 Adult residential facilities provIde cafe for persons age 18 to 59 years includmg both developmentally disabled adulls and persons suffering from mental illness or psychiatriC disorders. 5 Elderly reSidential facilities provide care for persons age 60 and above. - P age 2.20 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice - o , i . E .. t , e o ~ , = ~ .. c U "' N ~ ~ ~ ~ '" :~ -u .. ... OJ ~ .. U "" OJ '" C OJ u ;:; _~'L-------- '~ \~ ~ . o .!i .......--,........-1.. . I j l v( ) ~ ...,.>",- u; <(0 'i-j /'1, 'I ' ,..' ~. ') \ ..-", " ,~ - . /~' > ; " ~ ~ 0 ~ , 0 f 0 = , u co e '" e "' o ~ r~' , , cc, "0 ---- --' s\ "- ~. .- = eO e< , . ~~ -, ~~) ,/ -, ......'--' '-"i ~ y,r' "----..---' .~ ~ '- ~ 0' .l .? ." . " ~. .' o ,,-..).. /-' ~ " I.....~- , .....--- I 1"/ /' ----" ),ii" // ,....., -'v.' 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Many lower income, elderly, and disabled persons depend on public transportation to reach community facilities such as hospitals and clinics, community centers. libraries, and shopping centers. Housing for the elderly and disabled should be located near transit routes, or alternative transit should be available for persons with special needs. 2. ,1 Public Transit Omnitrans provides public transportation services to the City of San Bernardino and surrounding areas of San Bernardino County. Twelve fixed-route bus lines Routes 1, 2, 3/4. 5, 7, 8, 9. 10. 11, 14, 15, and 90 provide transportation services to residents of the City of San Bernardino. Omnitrans also offers a demand.response service, called Access, for persons With disabilities ADA certified. Access provides curb-to.curb service to complement the Omnitrans fixed.route bus system. The Access service area is defined as up to 3/4 mile on either side of an eXisting bus route. Access is available Monday through Fridays and reservations must be made at least one day in advance. '- 2. .2 a or mployers This section discusses the accessibility of public transit to major employers from lower income housing locations. These relationships help indicate whether those persons who may be dependent on public transit have convenient access to the community, including its job opportunities, commercial centers, and public facilities. San Bernardino has a variety of large businesses, institutions, and agencies that provide both local and regional employment opportunities. Major employers in the City include San Bernardino County Sheriff s Department, Grand Terrace Police Department, Transportation Department. Community Hospital, and California State University San Bernardino. Figure 2.6 illustrates the relationship between public transit routes and major employers i.e., with 500 or more employees. As shown, most major employers in San Bernardino are located along or WIthin a quarter mile of transit routes. -- Page 2.22 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice 'E c E 1: "C "- i :: - '0 .. - 0 '" > ~ . ~ ~ 1 :; .. '" .., 0 . >- '" '" , ~ . 0 ~ 5 i . , - ] , ::s ~ - ~ c. f 0 , ~ 0 CO ~ S ~ :: <:t: ; . "' W - . ~ N ~ -:;; ~ 0 ~ '0 ~ '" :: c , .. 0 > '" ::t ~ ~ E '.:i u:: i- ~ 0 - -- .. . . -eE ~ Q.. .- ~ ,. ,0 i' o ~ <-'" o o " < ,0 ~o o 0" (.t_ j? /-\4.lf / L~ , .o' " '-' ,I , '7 -~~~~ / --......_-_.._~..-=-- '''''"'\ '-'\. , '...., ~ ~ . , 1 " - , ~ , ~ " ~ . C c ,. ~ " C , " < , 0 [ , ~ ~ < v > , 5 " , C V. o O__]~~ ~ 0: ~ 1 ::! Cl:: (i. c i 5 ~ _ ~ c ~ " ~ <::. - E" c: z: J ..f: 0": 2 a:: < < ::. <::.. , - > o \... - :: ; , 1 ~ ii5 ii5 ii5 ~ 0 0 < < , ,. 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B . o --, B . ~ ,MIt $npe ~---- , ! . o .. ~ I ... 9I<,,-JI13':) r -f-- f.- II =1 l ":"~i- "- Cater Fair Dusing Profile Fair housing laws are covered by federal and state regulations and court decisions that prohibit discrimination in the rental. sale, negotiation, advertisement, or occupancy of housing on the basis of protected classes. Implementation of fair housing practices is achieved through a network of housing professionals, organizations, fair housing providers, government agencies. and the courts This chapter provides an overview of the housing industry in governing fair housing practices of its members. fair housing services available to residents within the City of San Bernardino, and recent fair housing complaints. violations, and suits to determine trends throughout the City. .1 Fair Dusing Practices .1.1 Fair ousing Practices in the omeownership ar et '-.. Part of the American dredm involves owning a home in a safe neighborhood near community amenities. Horneownership is believed to enhance one s sense of well-being. help accumulate wealth, and strengthen neighborhoods, because residents with a greater stake in their community will be more active in decisions affecting their community. Ensuring equal access to housing is an important way to help residents achieve that American dream. ome Buying Process Purchasing a home presents many challenges. One of the main challenges in buying a home is the process. The time reqUired to find a home. the major legal and financial implications surrounding tile process, the number of steps required, and financial issues to be considered are overwhelming. The process IS costly. and fair housing Issues may surface in many ways and dunng each stage of the process Advertising: AdvertiSing has become a sensitive issue In the real estate and rental housing market because it may indicate preferences for certain buyers. Recent litigation has held publishers. newspapers, Multiple Listing Services. real estate agents, and brokers accountable for discriminatory ads. Advertising can suggest a preFerred buyer in many ways: by suggesting preferred residents, using models. publishing in certain languages, or restricting media or locations for advertising. The key is whether the advertisement appeals to one segment of the housing market and unduly alienates other groups. Advertisements cannot include discriminatory references that describe current or potential residents, the neighbors or the neighborhood in racial or ethnic terms, or other terms suggesting preferences eg, adults preferred. Ideal for married couples with kids, or conveniently located near a Catholic church. Lending: ualifying for a loan entails a number of steps and providing various information, including: an application, credit check. ability to repay, amount eligible for, and choosing the type and terms of the loan, etc. Applicants are requested to provide sensitive information. including their gender, ethnicity. income level. age. and familial status. This information is reqUired to be gathered by the Community Reinvestment Act and the Home Mortgage Disclosure Act however, it does not guarantee that individual loan officers or underwriters will not misuse the information. "- CITY OF SAN BERNARDINO Analysis or Impediments to Fair Housing Choice P age 3.1 Chapter 3: Fair Housing Profile '-- A report on mortgage lending discrimination by the Urban Land Institute describes four basic stages in which discrimination can occur: . Advenising/outreach stage. Lenders may not have branches in certain locations. not advenise to cenain segments of the population. or violate advenising rules with respect 10 fair housing . Pre-application stage. Lenders may not provide applicants of different racial and ethnic backgrounds the same types of information as other preferred groups, or may urge some 10 seek another lender, . Lending stage. Lenders may treat equally qualified individuals in a different manner, giVing different loan terms, preferred rates, or denying a loan based on a factor not related to ability 10 pay and risk. . Loan administration. Lenders may treat minorities in harsher terms, such as initiating foreclosure proceedings If any payment is late. or by making loans at terms that encourage defaults. Appraisals: Banks order appraisal reports to determine whether or not a propeny is worth the amount of the loan requested. Generally, appraisals are based on the comparable sales of properties surrounding the neighborhood of the subject property. Other faclOrs such as structure age. improvements made, and location are also considered. Homes in some neighborhoods with higher concentrations of minorities and poveny concentrations may appraise lower than like properties in neighborhoods with lower concentrations due to the perception of crime and declining neighborhood attractiveness. This causes lower property values in a given neighborhood, restricting the amount of equity and capital available to those residents. Disparate treatment in appraisals is difficult to prove since lOdividual appraisers decide the appraisal amount and exercise a certain amount of discretion. -.. Real state Agents and Sellers: The agent will find the home that fits a homebuyer s needs and budget. Real estate agents may also intentionally or unintentionally discriminate, such as steering a potential buyer to particular neighborhoods by encouraging the buyer 10 look into certain areas otllers may choose not 10 show the buyer all choices available. Agents may also discriminate by who they agree to represent and who they turn away Even if a real estate agent is following fair housing practices, a seller may not want to sell his/her house to certain purchasers or they may want 10 accept offers only from a preferred group. The Residential Listing Agreement and Seller s Advisory forms that sellers must sign disclose their understanding of fair housing laws and practices of discrimination. Yet. enforcement is difficult. because a seller may have multiple offers and choose one based on bias. Insurance: Insurance agents have underwriting guidelines which determine whether or not a company will sell Insurance to a particular applicant. Currently. underwriting guidelines are not public information however, consumers 11ave begun to seek access to these underwriting guidelines to learn if certain companies have discriminatory policies. Some states have begun to require companies to file the underwriting guidelines with the state department of insurance, making the information public. Texas mandates this reporting and has made some significant findings regarding discriminatory insurance underwriting gUidelines. Many insurance companies have applied strict guidelines. such as not Insuring older homes, that disproportionately affect lower income and minority households that can only afford to buy in older neighborhoods. A California Department of Insurance CDI survey found that less than one percent of the homeowners insurance available in California is currently offered free from tight restrictions. The CDI has also found that many urban areas are underserved by insurance agencies. - P age 3.2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 3: Fair Housing Profile --- .1.2 Agency Coordination in the omeownership ar et Many agencies are involved in overseeing real estate industry practices and the practices of the agents involved. A portion of this oversight involves educating practitioners on fair housing laws and monitoring compliance. The following organizations have varied levels of oversight within the real estate market, and some of their policies. practices, and programs are described. ational Association of Realtors AR The National Association of Realtors NAR IS a consortium of realtors which represent the real estate industry at the local. state. and national level. Locally, the Inland Valley Association of Realtors BAR IS the main professional real estate association within the City of San Bernardino. As a trade association, members receive a range of membership benefits. However, to become a member, NAR members must subscribe to its Code of Ethics and a Model Affirmative Fair Housing Marketing Plan developed by HUD. The term realtor identifies a licensed real estate professional who pledges to conduct business in keeping with the spirit and letter of the Code of Ethics. Realtors subscribe to the NAR s Code of Ethics, which Imposes obligations upon realtors regarding their active support for equal housing opportunity. Article 10 of the NAR Code of Ethics provides that Realtors shall not deny equal professional services to any person for reasons of race, color. religion. sex. handicap, familial status. or national Origin. Realtors shall not be a party to any plan or agreement to discriminate against any person or persons on the basis of race, color, religion, sex, handicap. familial status. or national origin. Realtors shall not print. display or circulate any statement or advertisement with respect to the selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion. sex, handicap, familial status, or national origin. - iverslty Certification: The NAR has created a diverSity certification. At Home with Diversity: One America to be granted to licensed real estate professionals who meet eligibility requirements and complete the NAR At Home with Diversity course. The certification signals to customers that the real estate professional has been trained on working with the diversity of today s real estate markets. The coursework provides valuable business planning tools to assist real estate professionals in reaching out and marketing to a diverse housing market. The NAR course focuses on diversity awareness, building cross-cultural skills. and developing a bUSiness diversity plan. California Association of Realtors CAR The California Association of Realtors CAR IS a trade association of realtors statewide. As members of CAR realtors follow a strict code of ethics. CAR holds three meetings per year for its general membership, and meetings typically include sessions on fair housing issues. Realtor associations are generally the first contact for real estate agents who need continuing education courses. legal forms, career development. and other daily work necessities. The frequency and availability of courses varies amongst these associations, and local association membership is generally determined by the location of the broker for which an agent works Complaints involving agents or brokers may be filed with these associations. Monitoring of services by these associations is difficult as detailed statistics of the education/services the agencies provide or statistical Information pertaining to of the members is rarely available. The Inland Valley Association of Realtors is the main association serving the City of San Bernardino. -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 3-3 Chapter 3: Fair Housing Profile ...,....,... California epartment of Real state R The California Department of Real Estate ORE is the licensing authority for real estate brokers and salespersons. ORE has adopted education requirements that include courses in ethics and in fair housing. To renew a real estate license. each licensee is required to complete 45 hours of continuing education, including three hours in each of the four mandated areas: Agency, Ethics. Trust Fund. and Fair Housing. The fair housing course contains information that enables an agent to identify and avoid discriminatory practices when providing real estate services. ORE investigates written complaints received from the public alleging possible violations of the Real Estate Law or the Subdivided Lands Law by licensees or subdividers. ORE also monitors real estate licensees conducting bUSiness as mortgage lenders and mortgage brokers. If an inquiry substantiates a violation, ORE may suspend or revoke a license, issue a restricted license, or file an Order to Desist and Refrain. Violations may result in civil injunctions. criminal prosecutions, or substantial fines. The Department publishes monthly a list of names of persons and businesses which have been conducting real estate activities without a license DRE reviews Covenants, Conditions, and Restrictions for all subdivisions of five or more lots, or condominiums of five or more units. The review includes a wide range of issues, including compliance with fair housing law. CC Rs are restrictive covenants that involve voluntary agreements, which run with the land they are associated with. In the past. CC Rs were used to exclude minorities from equal access to housing. ORE reviews CC Rs and they must be approved before issuing a final subdivision public report. This report is required before a real estate broker or anyone can sell the units. and each prospective buyer must be issued a copy of the report. They also maintain fair housing and ethics information on their website, including the licensure status of indIvidual agents. ~"." .1. Fair Dusing Practices in the Rental ar et hile the process of renting an apartment or home may be less expensive and burdensome up front than the home-buying process, potential renters may still face discrimination during various stages of the rental process. Some of the more notable ways In which tenants may face discriminatory treatment are highlighted below. Rental Process Renting a home, while may not be as complex as purchasing a home, may also expose prospective tenants to various discriminatory practices. Advertising: Similar to advertiSing for the sale of a home. rental advertisements may not suggest preferences. Furthermore, given the tight rental housing market and the ease of renting out a unit, rental vacancies are sometimes advertised only by posting a sign outside the building or through word-of-mouth announcements. Such forms of advertising often preclude potential renters who do not frequent a particular neighborhood or do not already have friends or relatives living in the buildings. These practices tend to perpetuate the concentration of minorities in specific neighborhoods. iewing the nit: Viewing the unit is the most obvious stage where the potential renters may encounter discrimination because landlords or managers may judge a potential tenant based on race or disability. or appearance. For example, if a student is wearing a T-shirt with a heavy metal band on the front design, a landlord may be suspect of the potential for loud music to be played. If a prospective tenant arnves with many children, the landlord may be concerned that the children may disturb other renters. The prospective tenant may also have an accent or wear religious symbols or Jewelry which may be a deCiding factor on whetller the landlord prefers to rent the Unit. '- P age 3.4 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 3~ Fair Housing Profile ",-. ualifying for the Lease: To qualify for the lease. landlords may ask potential renters to provide credit references, list of previous addresses and landlords, and employment history/salary. The criteria for tenant selection, if any. are typically not known to those seeking to rent. A security deposit is usually required. To deter less-than.desirable tenants. a landlord may ask for a security deposit higher Ulan for others. Tenants may also face differential treatment when vacating the units. The landlord may choose to return a smaller portion of the deposit to some tenants, claiming excessive wear and tear. Admimstration of the Lease: Most apartments are rented under either a lease agreement or a month-to-month rental agreement. A lease is favorable from a tenant s point of view for two reasons: the tenant is assured the right to live there for a specific period of time and the tenant has an established rent during that period. Most other proVISions of a lease protect the landlord. Typically, the lease or rental agreement is a standard form completed for all units within the same building. However. the enforcement of the ruies contained in the lease or agreement may not be standard for all tenants. A landlord may choose stnct enforcement of the rules for certain tenants based on arbitrary factors, such as race. presence of children, or disability. Since the recent escalation of hOUSing prices throughout California. complaints regarding tenant harassment through strict enforcement of lease agreements as a means of eVicting tenants have increased. - uring the Tenancy: During tenancy, the most common forms of discrimination are based on familial status, race, national origin, sex, or disability. Usually these types of discrimination appear in differential enforcement of rules, overly strict rules for children, excessive occupancy standards, refusal to make a reasonable accommodation for handicapped access, refusal to make necessary repairs, eviction notices, illegal entry. very frequent rent increases, or harassment. These actions may be used as a way to force undeSirable tenants to move on their own without the landlord having to make an eviction. In some cases. landlords have the ability to raise rents as frequently as possible if not in conflict with a lease agreement state law, or done in retaliation. .1. Agency Coordination in the Rental ar et Many agencies oversee the apartment rental process and related practices. This oversight includes ensuring that fair hOUSIng laws are understood and complied with. The following orgamzations have limited oversight within the rental housing market. and some of their policies are described. California Apartment Association CAA CAA is the country s largest statewide trade association for rental property owners and managers. CAA represents rental housing owners and professionals who manage more than 1.5 million rental units. CM has developed the California Certified ReSidential Manager CCRM program to provide a comprehensive senes of courses geared towards improving the approach, attitude, and professional skills of on-site property managers and other interested individuals. The CCRM program consists of 31.5 hours of trallling that includes faIr housing and ethics along with other courses. Apartment Association of reater Inland mpire The ^partment Association of Greater Inland Empire AAGIE serves Riverside and San Bernardino Counties and parts of Los Angeles County. AAGIE members are persons and companies who own or manage any number of rental housing Units in the AAGIE service area. AAGIE provides education and training. business networking opportunities, and legislative advocacy. It offers CCRM courses, including fair housing and ethics. AAGIE also offers a monthly magazine to its members, which -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 3.5 Chapter 3: Fair Housing Profile '- provides updated information i.e. laws, issue';;., new changes about the housing industry, as well as books and other educational materials. ational Association of Residential Property anagers ARP NARPM promotes the standards of property management business ethics. professionalism and fair housing practices within the residential property management field. NARPM is an association of real estate professionals who are experienced in managing single-family and small residential properties. In addition to services mentioned above. NARPM certifies members in the standards and practices of reSidential property management industry and promotes continuing professional education. NARPM offers designations to qualified property managers and management firms: Residential Management Professional. RMP . Master Property Manager. MPM . and Certified Residential Management Company, CRMC . These certifications require educational courses in fair housing practices. .2 Fair Dusing Services Fair housing services include investigating and resolving housing discrimination complaints, auditing and testing. education. and outreach. Landlord/tenant services involve informing landlords and tenants of their rights and responsibilities under fair housing law and consumer protection legislation. and mediating disputes between landlords and tenants. This section reviews the fair housing services available in San Bernardino, the nature of fair housing complaints, and results of fair housing testing/audits. - .2.1 Fair Dusing Service Providers Inland Fair ousing and ediation Board IF B The Inland Fa" Housing and Mediation Board IFHMB is the primary proVider of fair housing services in San Bernardino. The City contracts witlllFHMB to administer and monitor all fair housing efforts. including providIng information and education, mediation, investigation, or referral of hOUSIng discrimination complaints Established in 1980, .IFHMB has worked to combat housing discrimination primarily by educating both tenants Jnd landlords as to their rights and responsibilities according to fair housing law IFHMB sponsors public fair housing educational activities, fair housing outreach activities, and fair housing referral activities. IFHMB assists with fair housing plans, offers ORE accredited training, prepares and disseiTIinates information to members of the housing industry, provides technical information for conciliation, participates in area trade shows, conducts training conferences for attorneys and advocates, and conducts tests and audits to investigate possible discrimination. epartment of Fair mployment and ousing F The Department of Fair Employment and Housing DFEH investigates complaints of employment and housing discrimination based on race, sex, religious creed, color, national origin, medical condition cured cancer only, ancestry, physical or mental disability, mantal status, or age over 40 only. OFEH also investigates complaints of housing dIscrimination based on the above classes, as well as children/age. and sexual onentatlon. Fair housrng service proViders work in partnership with HUD and DFEH. Mediation/conciliation is offered as a viable alternative, to litigation. The State of California recently adopted a new mediation program which offers free services within a reasonable time frame. Offices are located throughout California. However in some cases where litigation is necessary. the case may be resolved via administrative filing with HUD or DFEH referral for consideration to the Department of ustice, Civil Rights Division. Housinq and Civil Enforcement Section or referral to a private attorney for possible litigation -- P age 3.6 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 3: Fair Housing Profile '"- .2.2 iscrimination Complaints During a three. year period FY 2001/02 10 FY 2003/04 . IFHMB assisted 282 households, with 824 individuals beneficiaries potentially affected by housing discrimination. Overall, 147 of these households were female heads of households. ith respect to income, approximately 54 percent were extremely low income residents, 32 percent were very low income residents. and 9 percent were low income residents. IFHMB clients included all racial/ethnic groups in San Bernardino. Table 3-1 shows the racial and ethnic characteristics of all beneficiaries for FYs 2001/02 10 2003/04. Of all of the racial and ethnic groups in the City. Black residents were overrepresent['d as beneficiaries. As shown below in Figure 3-1. Black residents represent 24 percent of all renters, but represented 52 percent of all beneficiaries for IFHMB services. Hispanics were underrepresented. comprising 38 percent of all renters. but represented 23 percent of all beneficiaries hite renters comprised 32 percent of all renters, but represented 22 percent of all beneficiaries. These figures may indicate a couple of patterns: Blacks experience hOUSing discrimination disproportionately HispaniCS are either less likely to experience housing discrimination or they Simply do not know how and where to file for complaints. Table -1 Race and thniclty of Beneficiaries "- 2001-2002 2002-2003 2003-2004 hite 52 73 54 Black 184 176 72 HispaniC 66 66 58 Asian 16 1 0 Ottler 3 0 3 Total 321 316 187 The Total number of benefiCiaries does not reflect the total of the numbers fOf the categories above due (0 the way racial and ethniC statistics are calculated. Begmnmg in 2004. IFHMB beQan to record Hispanic as an ethnicity. Beneflclanes were still able to s-elect a race as well. Therefore. the numbers for each category In 2004 have some double counL which has been accounted fOf by taking away the double count 111 the total fur f:5C31 year 2003-04 -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 3-7 Chapter 3: Fair Housing Profile - Figure 3-' IFHMB Discrimination Complaints by Race Discrimination Complaints By Race 60 1 i i 50 i I I I ~ 40 1- ; C 30 I I~ I~ , a.. 20 10 10 Percentage of renters bY] Race Ie Percentage of IFHMB I Beneflclares 1_ o White Black HispaniC Asian Other Basis of iscrimination Complaints Between 2002/03 and 2003104, complaints declined 29 percent In number, from 114 complaints in 2002/03 to only 59 complaints in 2003/04. As indicated in Table 3-2, the greatest number of housing discrimination complaints were for race/color/national origin/ancestry 45 percent, disability 35 percent, and family status 7 percent. Information on the nature of each complaint was only available for FYs 2002/03 and 2003/04. ...,,~.,,- Table -2 Iscrimination Complaints filed in San Bernardino from F 2 2 to 2 Discrimination Cateaorv 2002-2003 2003-2004 Total Calls Calls Source of Income 4 6 10 5.8 Age 1 1 2 1 2 Race/Calar/Nat I Origm/Ancestry 45 33 I 78 45.1 Gender 7 3 ! 10 5.8 Marital Status 4 0 I 4 2_3 Family Status 8 3 11 6.4 Disability I 46 14 60 34.7 Religion 1 1 2 1_2 Sexual Orientation 4 0 4 23 Total 114 59 173 100_0 I Percent of The total number of complamts does not I eflect the total of the numbers for the categones above due to the fact that people filing a complaint could file for multiple categones. For Instance. one complaint In 2003104 was filed for both source of Income and national origin. One count was added to both of these categories above. but IS represented as only one complaint In the total category - isposition of Complaints The tracking of complaints is not a simple matter Often, when a complaint is filed with the IFHMB, the case is either mediated, litigated, referred to other agencies, or the complainant IS provided with information regarding how to pursue this issue further. Cases may take years to mediate or P age 3.8 CITY OF SOAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 3: Fair Housing Profile ...........- litigate and outcomes of the settlements are confidential. hen cases are referred to other agencies, the complainants must sign a release form with those agencies to release the information to IFHMB. hen the complainants are provided information or directed to document evidence, many do not pursue the matter further. Therefore, the disposition of complaints cannot be tracked on a year.to-year basis, as an open case may not have resolution until five or ten years later, In general. about 40 percent of the complaints are mediated, 30 percent are referred to other agencies, and 30 percent are provided with information. iscrimination Cases from F According to the Department of Fair Employment and HOUSing DFEH, 64 discrimination cases were filed in San Bernardino from 2000 through 2004. The bases for diSCrimination from 2000 through 2004 are presented in Table 3.3. DFEH allows respondents to indicate more than one basis for discnmination and prohibited act primary and secondary therefore, the total number of bases and acts exceeds the total number of complaints. ith respect to bases for discrimination, the main issues were race 40 percent, disability 20 percent, family status 15 percent, and national origin 11 percent. ith respect to prohibited discriminatory acts, the main issues cited were eviction 39 percent, harassment 23 percent, refusal to rent 14 percent, and unequal terms 14 percent. Table . iscrimination Complaints Received by F City of San Bernardino 2 .2 TOTAL COMPLAINTS BASIS OF COMPLAINT 2000 15 2004 8 Total Percent of Total 100.0 -- 64 Familia! Status 4 1 2 4 0 11 14.7 Race 4 9 6 5 6 30 40.0 Disability 4 4 5 1 1 15 20.0 National Ongin 3 3 01 0 2 8 10.7 Sex 0 0 2 0 0 2 2.7 Association 0 1 1 1 0 3 4.0 Retaliation 0 0 1 1 01 2 2.7 Source of Income 0 0 0 0 1 1 1.3 Marital Status 0 0 3 0 0 3 4.0 Total Bases of Complaints 15 18 20 12 10 75 100.0 ALLEGED ACT Refusal to Rent 0 4 6 0 2 12 138 Eviction 9 7 7 8 3 34 39.1 Refusal to Show 0 1 0 0 0 1 1.1 Denied Reasonable Accommodation 0 1 3 0 1 5 5.7 Unequal terms 2 2 3 2 3 12 138 Harassment 7 4 3 4 2 20 no Unequal Access 2 0 0 0 1 3 3.4 Total Alleged Acts 20 19 22 14 12 I 87 100.0 Source: Depanment of Fair Employment and Housmg -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 3.9 -........ Chapter 3: Fair Housing Profile Of the 64 total cases. 31 cases 48 percent cases were found to have no probable cause to prove that there was a violation of fair housing laws. An additional 26 case 41 percent were settled before a decision had been made about the merits of the complaint. In six cases 9 percent, the complainant was not available, the processing of the claim was referred to another agency, or the complaint was withdrawn without resolution. One case 2 percent was still open. Of the total 64 cases, no final decisions were made that there was in fact discrimination. ,2, ate Crimes Trends and Statistics To a certain degree, hate crimes are an indicator of the environmental context of discrimination. Hate crimes are violent acts against people, property, or organizations because of the group to which they belong or Identify with. The Federal Fair Housing Act makes It illegal to threaten, harass, intimidate or act violently toward a person who has exercised their right to free housing choice. On the other hand. a hate incident is an action or behavior motivated by hate, but protected by the First Amendment nght to freedom of expression. Examples of hate incidents can include name calling, epithets, distribution of hate material in public places, and other acts. Freedom of speech allows such acts that do not interfere with civil rights. Hate crimes are typically not reported to the police and very little information is available. Unlike hate crimes, however, the FBI does not keep statistics on the number of hate incidents. From 1998 through 2003, 27 hate crime cases were filed in San Bernardino' As shown in Figure 3. 2, race/ethmcity-based hate cnmes comprised the majority of CrImes 80 percent, followed by sexual orientation 11 percent, and religion 9 percent. The number of hate cnmes in the San Bernardino did not follow a discernable trend between the years of 1998 and 2003, as shown with the wide range of numbers shown in Figure 3-2. Many communities across tile country reported a high number of hate crimes in 2001, attributable to the public fallout following the terrorist attacks of September 11, 2001. However, San Bernardino recorded similar numbers of hate crimes in both 2000 and 2001. Other years recorded comparatively smaller numbers of hate CrImes --- ,- I 14, I ::E~- 8t""" J/ o :h rj"iI'.:i. .~_".L2J\,..,... 1998 1999 2000 2001 2002 2003 Figure .2 ate Crimes Recorded in San Bernardino to 2 !. Dlsabillt;---" 10 Ethnlclty I: i 0 Sexual Orientation II!!l Religion , 10 Race , Umform Cnme Reports. Federal Bureau of Invesligatlon. 1991>-2003. --- Page 3.10 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 3: Fair Housing Profile ""-" To provide a measure of how San Bernardino fares with other similarly sized communities. hate crimes were compiled for 20 different cities with a population ranging from 130,000 to 500,000. Statistics were gathered for calendar year 2001, 2002, and 2003 from the FBI Uniform Crime Reports. Results are summarized in Table 3-4 Of the 19 comparable jurisdictions in population, San Bernardino ranks as the 7" city with the most hate crimes on a per-lOO,OOO population basis_ Tabie - ate Crimes per 1 Population: 2 1-2 "-- Hate Crime Statistics Population Crimes Crimes/100,000 urisdiction in 2004 2001-2003 Population Rank Riverside 277.030 117 42.2 1 Palmdale 131,295 41 31.2 2 Sacramento 440,976 107 24.3 3 Lona Beach 487,112 102 20.9 4 Fresno 456,143 74 16_2 5 Glendale 205,341 32 15.6 6 San Bernardino 196,273 27 13.8 7 Modesto 206,188 26 126 8 Garden Grove 171,042 21 12.3 9 Fremont 209,080 25 12.0 10 Pasadena 144,004 17 11.8 11 BakersfIeld 279,672 27 9.7 12 Stockton 269,147 25 93 13 Fontana 154.789 11 71 14 Chula V,sta 209,133 11 5.3 15 Ontario 167,921 6 36 16 Rancho Cucamonaa 154.780 5 32 17 Sa nta Ana 349,123 8 2.3 18 Anatlelm 343.046 8 2.3 19 Source: FBI Uniform Crime Reports City of San Bernardino Police Policy The City Police Department defines hate crimes to include any act of intimidation. harassment, physical force, or threat of physical force directed against any person, group, family, community organization, or their property or advocate motivated in whole or in part by hostility to their race, ethnic background. national origin, religious beliefs, gender. age, disability, sexual orientation, or political affiliation with the intention of causing fear, injury, or intimidation or to deter the free exercise or enjOyment of any rights protected by federal and California laws. .- In recogmtion of the Importance of protecting City residents against hate crimes, the City of San Bernardino Police Department adopted standard operating procedures for bIased-motivated hate crimes. Specifically, the Police Department adopted a policy to safeguard the constitutional protections guaranteed under federal and State laws for all people regardless of race, ethnic background, national origin, religious beliefs, gender, age, disability, sexual orientation, or political affiliatlon_ hen these rights are Violated or infringed upon by violence or threats of violence or other forms of harassment. the Police personnel should use every necessary resource to rapidly and decisively identify and apprehend those responsible. All acts of biased-motivated violence will be viewed as serious, and the investigation will be given priority attention. Biased-motivated acts generate fear and concern among victims and the public. The policy calls for demonstrated CITY OF SAN BERNAROINO Analysis of Impediments to Fair Housing Choice Page 3.11 . . Chapter 3: Fair Housing Profile '- sensitivity toward the victims to help alleviate feelings of helplessness and hopelessness, and avoid perceptions of callous indifference or lack of concern by the Police personnel. ,2, Fair Dusing Services and Programs IFHMB continues to educate both tenants and landlords as to their rights and responsibilities under fair housing laws. IFHMB intakes and investigates discrimination complaints and works in partnership with HUD and DFEH In addressing diScrimination in housing. The following are some of the services IFHMB provides: --- - . Fair ousing: Provides services mandated by Federal and State Fair Housing laws. These laws prohibit the discrimination of individuals in the sale or rental of housing. Services include providing information and education, mediation, investigation, or referral of housing discrimination complaints. . ducation utreach: Education is believed to be one of the most important tools in ensuring that fair housing opportunities are provided and therefore, is one of the most important components of fair housing services. Residents with an understanding of fair housing issues can understand their rights and responsibilities, recognize discrimination, and are able to locate resources to file a complaint or obtain general assistance_ The IFHMB provides extensive and comprehensive educational outreach services to residents and housing professionals in San Bernardino County in both proactive and reactive manners. IFHMB S outreach methods include the following: . Mails outreach materials . Annual fair housing conference held every April . Conducts fair housing workshops . Fair Housing uarterly newsletter with current news and court decisions affecting the rental bUSiness, dlstnbuted to approximately four thousand management/propertyowners . Monthly est End Senior News, containing health, travel. and local activities information, distributed to approximately 15 hundred tlouseholds not county.wide . Bilingual informational Public Service Announcements PSAs on radio stations and cable television . Training meetings offered to realtors association? and apartment associations . Operates telephone question and information line . Landlord Tenant ediation: Provides information on landiord and tenant rights and responsibilities under the California Civil Code. In addition, the staff will offer to mediate conflicts between tenants and landlords. Housing mediation is a useful tool to promote resolutions to problems and avoid needless litigation in the rental housing industry. . Certified Comprehensive Counseling: Provides counseling to homeowners who are delinquent on FHA loans regarding options available_ Conducts pre-purchase and first time home buyer education workshops to inform potential homebuyers of the home-buying process and their rights and responsibilities as homeowners. Counsels senior citizens who are interested in reverse equity mortgage programs. . Senior Services: Actively and successfully mediates conflicts between seniors and Social Security, Medi-Cal. utility companies, collection agencies, neighbors, and other areas in dispute. Provides care referral services. Offers help in filing for HEAP and Homeowner/Renter Assistance. P age 3 -, 2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 3: Fair Housing Profile '"- . Alternative ispute Resolution A R: California Dispute Resolution Act of 1986 provides the authority for mediation in the legai court system. IFHMB has a contract with the County of San Bernardino to provide mediation with small claims and unlawful detainer lawsuits in all of the courts in San Bernardino County_ . obile ome ediation: Specialized problem solving based on Mobile Home Residency Law that reflects the dual ownership and a unique life style of the mobile home community. Conducts workshops for education and to assist residents to file for refunds on utility and property tax burdens. . iscrimination Testing: IFHMB conducts discrimination testing in the City of San Bernardino to determine if there was a pattern or practice of steering or providing unfavorable treatment to prospective renters in San Bernardino based on certain characteristics of prospective renters_ IFHMB conducted 25 discrimination tests between the years of 2001 and 2005_ 10 tests were conducted based upon race, g tests were conducted based upon family status, 3 were conducted based on national origin, and 3 were conducted based on disability. IFHMB was unable to provide the results of these tests because they keep the mediation process of their testing confidential. "-....-.,- -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 3.13 "-- Cater Lending Profile A key aspect of fair housing choice is equal access to credit for the purchase or improvement of a home. This chapter reviews the lending practices of financial institutions and the access to financing for all households, particularly minority households and those With very low- or low- incomes. Lending patterns in low- and moderate-income neighborhoods and areas of minority concentration are also examined. .1 Legislative Protection In the past. credit market distortions and other activities such as redlining were prevalent and prevented some groups from having equal access to credit. The Community Reinvestment Act CRA in 1977 and the subsequent Home Mortgage Disclosure Act HMDA were designed to improve access to credit for all members of the community and hold the lender industry responsible for community lending. ,1,1 Community Reinvestment Act -- The Community Reinvestment Act eRA is intended to encourage regulated financial institutions to help meet the credit needs of communities. including the needs of low- and moderate-income households_ CRA ratings are provided by the Federal Reserve Board FRB, Federal Financial Institutions Examination Council FFIEC, Federal DepOSit Insurance Corporation FDIC, and Office of the Comptroller of the Currency ace. Depending on the type of institution and total assets, a lender may be examined by different supervising agencies for its eRA performance. However, the eRA rating is an overall rating for an institution and does not provide insights regarding the lending performance at specific locations by the Institution. ,1,2 ome ortgage isclosure Act In tandem With the eRA, HMDA requires lending Institutions to make annual publiC disclosures of their home mortgage lending activity. Under HMDA. lenders are required to disclose information on the disposition of home loan applications and on the race or national origin, gender, and annual income of loan applicants. - This chapter examines detailed 2003 HMDA data for tile City of San Bernardino. Two types of financing conventional and government-backed are discussed. Conventional financing refers to market-rate loans provided by private lending institutions such as banks, mortgage companies, savings and loans, and thrift institutions Government-backed financing refers to loans, typically Issued by private lenders that are guaranteed by federal agencies, at below market interest rates. Tllese loans are offered to lower and moderate-income households who may experience difficulty in obtaining home mortgage financing in the private market due to income and equity issues. Several federal government agencies offer loan products that have below-market interest rates and are insured backed by the agencies_ These include the Federal Housing Administration FHA, the Department of Veterans Affairs VA, and the Rural Housing ServiceslFarm Service Agency RHAIFSA Although government-backed loans are usually offered to consumers through private CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Pa 9 e 4 -, Chapter 4: Lending Profile '-- lending institutions, loans backed by local jurisdictions and state agencies such as silent second loans by cities and counties and loan programs offered by the California Housing Finance Agency are not covered under HMDA. HMDA data provide some insight into the lending patterns that exist in a community. However, HMDA data are only one indicator of potential problems. The data cannot be used to conclude definite red lining or discrimination practices due to the lack of detailed information on loan terms or specific reasons for denial. ith regard to this analysis, it should be noted that differences in lending outcomes do not necessarily constitute discriminatory treatment. Many factors play into the loan application and approval process, including credit, employment history, and debt-income ratiO, among other factors. .2 Conventional Loans According to HMDA. 10,746 households applied for conventional home purchase loans in San Bernardino in 2003 Table 4-1 _ Tile overall approval rate for conventional home mortgage loans was 69 percent and the denial rate was 20 percent. Table -1 isposition of Conventional ome Purchase In City of San Bernardino: Loan Applications by Race of Applicant '- ! I ithdrawn or Total Anoroved Denied Closed of of of of Race Total Total Total Total Native American 55 1 I 40 73 13 24 15 4 Asian 598 6 451 75 99 17 137 8 African American I 941 9 610 65 232 25 315 11 Hispanic I 4,295 40 2.870 67 925 I 22 I 1,301 12 hite i 2,682 25 1,988 74 431 16 633 10 oint 278 3 203 73 54 19 74 7 Other 190 2 I 139 73 39 I 21 47 6 Not Available 1.707 16 T 1 100 64 371 I 22 551 14 Total 10.746 100 I 7.401 69 2.164 I 20 3.073 11 Source: Home Mortgage Disclosure Act HMDA. 2003 Among all applicants within tile City of San Bernardino, Hispanic applicants 40 percent constituted the largest racial/ethnic group, followed by hlte applicants 25 percent and African American applicants at almost nine percent. Asian applicants constituted six percent of aU applicants, with Native Americans comprising less one percent of applicants, However, race and ethnlcity lllformatlon is not available for 16 percent of all loan applications in San Bernardino. Examining the racial and ethnic make-up of San Bernardino as a whole indicates that the share of hite, Hispanic, African Arnerlcan, and Asian applicants filing for home loans is generally representative of the overall raciallethnic proftle of the community. However, approval and denial rates varied considerably among different raciallethnic groups Asian and hlte applicants had the highest approval rate at 75 percent and 74 percent, respectively In contrast, HispaniC and African American applicants had the lowest loan approval rates at 67 percent "'..... P J 9 c 4 2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 4: Lending Profile "--- and 65 percent respectively. Among the applicants in which no racial information is available. the approval rate was 64 percent .2.1 Income of Applicants Generally, applicant income and credit history are the primary factors in determining conventional loan approvals. In San Bernardino, approximateiy 41 percent all home loan applications came from households with an income of greater than 120 percent of MFI Table 4-2. Significantly fewer loans originated from households that earned between 100 to 120 percent of the MFI 16 percent and households that earned between 80 and 100 percent of the MFI 18 percent. Approximately 22 percent of all loans originated from households that earned lower and moderate incomes less than 80 percent of the MFI . Table -2 isposition of Conventional ome Purchase Loan Applications by Income of Applicant '- ithdrawn or Total Annroved Denied Closed Applicant Income of of of of ofMFI Total Total Total Total Low: 50 412 4 222 S4 134 33 56 14 Moderate: 50 to 80 1,915 18 1,232 64 458 24 225 12 Middle: 80 to 100 1,901 18 1,302 69 421 22 I 178 9 Middle 100 to 120 1,699 16 1.177 69 340 20 182 11 Upper: 120 4,354 41 3,166 73 735 17 453 10 Not Available 465 4 302 65 76 16 87 19 Total 110.746 100 7.401 69 2.164 20 1,181 11 Source: Home ~"lortgage DisClosure Act HMDA. 2003 Typically, an inverse relationship exists between denial rates and the income of applicants. In San Bernardino, the approval rates among upper income applicants earning above 120 percent of the MFI was the highest among all income groups, at 73 percent In comparison, low and moderate income households had significantly lower approval rates. Moderate income households earning between 50 to 80 percent of the MFI had an approval rate of 65 percent whiie low income households earning [es5 than 50 percent of the MFI had an approval rate of 54 percent. _2_2 Race ifferences by Income of Applicant hile income and affordability are important factors in determining access to financing, as isolated factors they present no fair housing concerns. To dissect the lending pattern in the community, further analysis was conducted to examme lending patterns by race and income level. As indicated to Table 4-3, among upper income applicants 120 percent of MFI , ASian and hite applicants had the higher approval rates among all racial groups in the City at 80 and 77 percent. respectively. This was a noticeably higher approval rate than HispaniC households 70 percent and African American applicants 66 percent in the same income group. Among middle income househoids, hite and Asian applicants continued to have higher approval rates than other applicants. However, the rates did not vary as greatly. -- CITY OF SAN BERNAROINO Analysis of Impediments to Fair Housing Choice P age 4 - 3 Chapter 4: Lending Profile .- Among applicants that earned between 50 to 80 percent of the MFI. hite, Asian, and Hispanic applicants had similar approval rates that are much higher than that achieved by African American applicants_ For the low income applicants less than 50 percent MFI , Asian applicants were singled out with a significantly higher approval rate than other groups. However, the iimited number of Asian applicants in this income group might have skewed the results. Table - Approval Rate of Conventional ome Purcha5e Loan Applications by Applicant Race and Income hite Hisoanic African American Asian Applicant Income of of of of ofMFI Total Total Total Total Low: 50 38 53 125 S7 16 50 8 73 Moderate: 50 to 80 215 66 723 65 72 56 38 68 Middle: 80 to 100 259 73 649 68 123 71 S6 67 Middle: 100 to 120 323 78 454 67 118 67 79 73 Upper: 120 1,089 77 797 70 265 66 264 80 Not Available 64 65 122 0.5 16 55 6 50 Total Approved 1,988 74 2,870 67 610 6S 4S1 75 Source: HMDA data tabulated using Peertrax software by the Centrax Group. 2003 Ole A licants who filed Oint a IJ(:atlons can be of different raCial ethnic backgrounds: however. H A data does nor rovide a means of identlfymg (he raCial efhmc backgrounds of oint a /icants '-' According to a 2002 nationwide study completed by HUD,' African American and Hispanic homebuyers in California and the nation face a significant risk of unequal treatment when they visit mainstream mortgage lending institutions to make pre-application inquires. The extensive study was based on 4,600 paired tests, conducted in 23 metmpolitan areas nationwide dUring the summer and fall of 2000. The study utilized paired testing for determining whether minority home buyers receive the same treatment and information as hites in the pre-application phase of the mortgage lending process Discriminatory treatment at this early stage In the lending process has the potential to discourage some minorities from continuing tlleir housing search, to limIt their search to lower cost homes, and to prevent them from choosing the most favorable loan products Although testing was not conducted within San Bernardino County, the study included paired testing within the nearby counties of San Diego and Los Angeles ith respect to HispaniC and African American homebuyers. the study identified the following key issues: In 2000, non-HispaniC hites were consistently favored in 20 percent of tests. In particular, non-Hispanic hites were more likely to receive information and assistance with financing. and to be shown homes in non-Hispanic neighborhoods than comparable Hispanic home buyers. However, discrimination against Hispanic home buyers has declined in 2000 compared to similar study that was conducted 1989. . African Americans were offered less coaching than compamblc were more likely to be encouraged to consider an FHA loan. hite home buyers, and '-' All (her hmgs etng ual A Paired eSling ludyof ongage Lending Institutions, HUD 2002 P age 4.4 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 4: Lending Profile ~- Conventional orne Improvement Loans Approximately 53 percent of the housing units in the City of San Bernardino are older than 30 years of age.' This Significant proportion of older homes indicates a need for ongoing home improvement financing in the community. This section assesses the availability of home improvement financing in San Bernardino. , ,1 Race of Appl icants In 2003, 1,626 households applied for conventional loans from private lending institutions for home repairs and improvements see Table 4-4. The largest racial/ethnic group was Hispanic applicants 28 percent followed closely by hite applicants 24 percent _ Approximately ten percent of home improvement loan applications were from African American households, followed by Asian households at two percent. However, race/ethnicity information for 32 percent of all applicants was not available. At 39 percent, the overall level of home improvement loan approval rate in the City of San Bernardino vias much lower than that for home purchase loans 69 percent -' Among all racial and ethnic groups, hite and Asian applicants had the highest approval rate, at 44 and 43 percent. respectively. Hispanic households had a slightly lower approval rate of 40 percent. African American applicants had the lowest approval rate among all racial and ethnic groups at 34 percent_ However, due to the limited number of applications from Asian and Native residents, an accurate level of approvals and denials is difficult to determine. ---- Table - isposltion of Conventional ome Improvement Loan Applications by Race of Applicant I ithdrawn or Total Aooroved Denied Closed of of I of of Race Total Total I Total Total Native American 7 0.4 3 43 1 14 3 43 Asian 30 2 13 43 13 43 4 -13 African American 161 10 54 34 81 50 26 16 Hispanic 449 28 179 40 207 46 63 14 hlte 386 24 170 44 156 40 60 16 oint 36 2 23 64 10 28 3 8 Other 35 2 12 34 17 49 6 17 Not Available 522 32 176 34 220 42 126 24 Total 1,626 100 630 39 705 43 291 18 ote A I1cants who filed omt a lications can be of different faCIal ethmc backgrounds, however, H A data does not rovide a means of idem/fying (he raCIal ethniC backgrounds of oint a /tcants Source: HMDA data tabulated using Peeruax software by the Centrax Group. 2003 - 2000 Census Many homeowners, who already have mortgage loans. may find It hard to qualify for home improvement loans due to the high debt.to-income ratio CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 4.5 Chapter 4: Lending Profile ~- , ,2 Income of Applicants Similar to home purchase financing, most of the home improvement loan applications were filed by households earning over 120 percent of the County MFI Table 4-5. Approximately 37 percent of these applications in the City were filed by upper-income households 120 percent MFI , while only 30 percent were from low and moderate income households 80 percent MFI. Lower and moderate income homeowners would most likely incur too high a debt.to.income ratio with the mortgage loan to qualify for additional financing. Also, home improvement may not be a priority for lower and moderate income households. Similar to home purchase loans, approval rates were correlated with income levels. The approval rate for upper-income households was approximately 50 percent. compared to 28 percent for moderate-income households and 27 percent for low- income households. Table -5 isposition of Conventional ome Improvement Loan Applications by Income of Applicant - I ithdrawn or Total Aooroved Denied Closed Applicant Income of of I of of ofMFI Total Total Total Total Low: 50 142 9 38 27 82 58 22 15 Moderate: 50 to 80 344 21 98 28 175 51 71 21 Middle: 80 to 100 280 17 98 35 130 46 52 19 Middle: 100 to 120 245 15 92 38 103 42 50 20 Upper: 120 600 37 299 50 211 35 90 15 Not Available 15 1 5 33 4 27 6 40 Total 1,626 1005 630 ! 39 705 43 291 18 Source: HMDA data tabulated using Peertrax software by the Centra)( Group, 2003 lthdrawn applications are files Withdrawn by the applicant during the lending process Closed applications are files closed by the lender for Incompleteness Conventional Financing by Lender , ,1 ome Purchase Loans and ome Improvement Loans In 2003, the top five home loan lenders received approximately 26 percent of all the home purchase loan applications in the City of San Bernardino. These top five lenders had an average approval rate of 79 percent. considerably higher than the 69 percent approval rate recorded by all of the financial institutions combined. Among the top lenders, First Franklin had the highest loan approval rate at 83 percent, followed by Countrywide Home Loans with a loan approval rate of 81 percent and ashington Mutual Bank with a rate of 75 percent. BNC Mortgage and Fremont Investment and Loan had slightly lower approval rates at 74 percent each. Countrywide Home Loans had the smallest proportion of denied applications at seven percent In contrast, BNC Mortgage and Fremont Investment and Loan had the largest proportion of denied applications 24 percent _ Only one percent of home loan applications were withdrawn from First Franklin Financial Corporation while Countrywide Home Loans had the greatest proportion of Withdrawn or closed '- P age 4 - 6 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 4: Lending Profile '-.. loan applications due to incomplete information at 11 percent. The potential concern with applications closed because of Incomplete information is to what extent applicants are given adequate assistance. Table -6 isposition of Conventional Loan Applications by Lending Institution Lender Home Purchase Loans Total Loan A lications Percent A roved Percent Denied ithdrawn or Closed First Franklin Financial Corporation 883 83 16 1 Countrywide Home Loans 603 81 7 11 ashington Mutual Bank 459 78 20 5 Fremont Investment and Loan 448 74 24 2 BNC Mortgage 357 74 24 2 0 Lenders 2,750 79 17 4 alaI afket 10.7 46 69 20 11 0 arker hare 26 29 22 10 Home Improvement Loans '-- Beneficial 279 33 44 23 Greenlight Financial Services 154 56 21 23 GMAC Mortgage Corporotlon 189 35 43 22 Household Finance Corporation 331 17 55 28 eybank USA, NA 112 50 49 1 0 Lenders 1,065 34 44 22 alaI afker 1,626 39 43 18 0 afker hare 65.5 57 67 81 Source: HMDA data. Peertrax software, MarqUIS Software Solutions Inc. 2003 Ithdrawn Indicates files withdrawn by the applicant during the lending process Closed indicates application files closed by the lender ror incompleteness Also shown 10 Table 4-6 are the top five lenders for home Improvement loans in the City of San Bernardino. These top five lenders received 66 percent of all applications submitted for home improvement loans in the community. The top lenders approved approximately 34 percent of loan applications, slightly lower than the 39 percent approval rate for all lenders in the City. Among the top lenders, Greenlight FinanCial Services had the highest approval rate at 57 percent, followed by eybank USA at 50 percent. and GMAC Mortgage Corporation at 35 percent. Household Finance Corporation had the lowest approval rate with only 17 percent of all loans approved. Consistent with the institution s high approval rates, Greenlight Financial Services had the smallest proportion of denied applications at 21 percent. while Household Finance Corporation had the greatest proportion of denied applications at 55 percent. Only one percent of all loan applications processed by eybank USA, NA were withdrawn or closed. In contrast, 28 percent of all loan applications through Household Finance Corporation were withdrawn or closed due to incomplete information. The Community Reinvestment Act eRA is intended to encourage regulated financial institutions to help meet the credit needs of entire communities, including low and moderate income neighborhoods. CRA ratings are provided for the main or regional headquarters 01 the financial ~ CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Pa 9 e4. 7 Chapter 4: Lending Profile '- institutions Only three of the top five lenders received eRA ratings recently. Among the top ten lenders active in the City, half received ratings from the FFIEC: ashington Mutual Bank, Freemont Investment Loan, BNC Mortgage, ells Fargo Home Mortgage, and Long Beach Mortgage Company_ Table 4-7 illustrates the rating received by each financial institution_ These institutions received either Outstanding or Satisfactory ratings. Table Lending Institutions Community Reinvestment Act Ratings Supervising I Year Rated I Ratino Institution Name State Aqencv ashington Mutual Bank. FA CA aTS 92, 94, 96 Outstanding F reemont Investment Loan CA FDIC 94, 96. 00, Outstanding! 03 Satisfactory BNC Mortgage Multiple acc 95, 96, 97, Satisfactory 99, 04 ells Fargo Home Mortgage CA acc 94, 96, 98, Outstanding' 00 Satisfactory Long Beach Mortgage Co. CA OTS, acc 90, 93, 94 Outstanding! Satisfactorv Source: Federal FinanCial Institutions Examination Council 5 FF1EC eb site. 2005 '--- A common obstacle for first-time homebuyers in achieving homeownership is the difficulty in saving adequate funds for a downpayment Among the five top lenders - three offer special mortgage programs that allow first-time homebuyers to contribute three percent or less for down payment. Countrywide offers a variety of downpayment assistance programs, including no- down payment options and low-down payment options The era awn Plus L program provides an opportunity for potential homebuyers that have little cash for tlleir down payment and good credit There is no downpayment required. ClOSing costs can be Financed up to an additIonal three percent of the loan 5 value. Countrywide slow downpayment loans options include the F A Flex program for potential home buyers that have little cash for their downpayment and have good credit. There is a three percent down payment required, but It can come from alternative sources such as gifts from immediate family members, grants from non-profit agencies and community assistance programs. Closing costs can be covered by those same sources, seller contributions or through a slightly higher rate. There are no income/earning restrictions. ashington utual offers a Low Down Payment loan that provides first time homebuyers and low to moderate income households the ability to borrow up to 252,000 towards the purchase a home With as little as a three percent down payment. The down payment can also come from a variety of sources including a credit care advance, or a gift from a family member as an unsecured personal loan. . First Fran lin offers a zero-down payment program for homebuyers with higll credit scores. The maximum loan amount is up to 500,000 for this program and a maximum dept ratio of 50 percent is allowed for first-time homebuyers. -- P age 4.8 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 4: Lending Profile ".~- .5 City County-Sponsored Rehabilitation Programs orne Assistance and In addition to the programs offered by commercial lenders, the City and County of San Bernardino also offer a number of homeownership assistance and rehabilitation programs. ,5,1 omeownership Programs Homeownership assistance programs available to San Bernardino City residents include: . ortgage Assistance Program AP The City of San Bernardino s Economic Development Agency s Mortgage Assistance Program MAP provides down payment/closing costs assistance to qualified first time buyers with incomes not exceeding 120 percent of MFI. The eligible homebuyer must buy a home, condominium, or townhouse, or a lender/HUD foreclosure house In the City_ The Agency can assist with 20 percent of the purchase price of the home, but the homebuyer must contribute no less than 1,000. In addition, the home buyer must attend a 16-hour homebuyer education program offered by the Neighborhood Housing Services. . omebuyer ducation and Financial Counseling -- This project. operated by the Neighborhood Housing Services of Inland Empire, lnG., provides homebuyer education and financial counseling services to low and moderate income households embarking on the purchase of a home. The counseling teaches participating families about basic household budgeting, the importance of savings, and major repairs and other regular household malntenance_ Applicants for funding under the City S Mortgage Assistance Program are required to complete the 16-hour Homebuyer Education and Financial Counseling course . Lease-to- wn Program Through a oint Powers Authority known as the Riverside-San Bernardino HOUSing and Finance Agency, the City participates In a Lease-to-Own Program that is marketed to renters earning up to 140 percent MFI. A participating renter may lease a single-family home for up to three years, With rental payments credited toward the purchase of the home. After three years of timely payments, the participant can receive title to the property and assume the mortgage payrnents . Section omeownershlp Program The Section 8 Homeownershlp ASSistance Program provides the option for qualified families/individuals to choose between rental assistance and homeownership assistance. The program will assist eligible low Income families or individuals to purchase a home within the jurisdiction of the Housing Authority of the County of San Bernardino HACSB_ In order to increase the level of affordable homeownership, the Section 8 Homeownership Assistance Program enables families to qualify for mortgage loan payments that would not otherwise be affordable for the households based upon their income. ~ CITY OF SAN 8ERNARDINO Analysis of Impediments to Fair Housing Choice P age 4 - 9 Chapter 4: Lending Profile ._,.....-". ,5,2 ome Improvement Programs Rehabilitation assistance programs available to San Bernardino City residents include: . obile ome Repair rant This program, operated by the City of San Bernardino Redevelopment Agency, provides grants of up to 5,000 to mllbile home owners with incomes not exceeding 60 percent of MFI to make minor repairs and improvements per local and state codes_ If the owner sells or changes registered ownership within one year after the work is complete, the funds are 100 percent repayable. Iderly Special eeds inor Repair rant Program The Oldtimers Foundation, a non-profit corporation, working under contract with the City of San Bernardino Redevelopment Agency, makes minor repairs for low income homeowners 80 percent and below MFI. The repair amounts cannot exceed 750 per house_ To be eligible for this program, the applicant must be either a senior age 60, disabled, or a recipient of SSI. . Single-Family Beautification rant Program This program IS intended to assist homeowners occupying Single-family dwellings to make improvements to their homes. Improvements may include: roof replacement. exterior painting, landscapmg, plumbing, flooring, structural deficiencies, etc. A homeowner must own their home for not less than one year and may earn not more than 120 percent of the MFI. A homeowner must agree to live in the home for at least one year following completion of work or the Grant must be repaid. This program is administered by Neighborhood Housing Services of Inland Empire, Inc. NHSIE IP orne Improvement eferred Loan and Beautification rant The City of San Bernardino Economic Development Agency in cooperation with Neighborhood Housing Services of the Inland Empire, Inc. NHSIE offers a program that helps income-eligible households In the Neighborhood Initiative Program NIP Target Areas improve their homes. Low interest deferred loans and grants are available to help finance housing improvements. Eligible households must live In the City of San Bernardino NIP Target Areas, and own their home for at least one year, need repairs, and meet the required income guidelines. Assistance includes: ome Improvement Loan: Provides up to 35,000 for needed improvements available at three percent simple interest. This loan is deferred and is repaid only when tile property is sold, transferred, rented, leased or refinanced. A Deed of Trust is used to secure the loan lien on property. Beautification rant: In conjunction with the 35,000 loan, owners may receive a grant of up to 10,000 to enhance and beautify the extenor of their home and improve neighborhood conditions, such as, painting, fencing and landscaping. - Page 4.10 CITY Of SAN BERNAROINO Analysis of Impediments to Fair Housing Choice Chapter 4: Lending Profile -.- .6 overnment-Bac ed ome Loan Applications Government-backed financing represents an alternative to conventional financing. Sources of government-backed financing include the Federal Housing Administration FHA, the Department of Veterans Affairs VA, and the Rural Housing ServlceslFarm Service Agency RHS/FSA. _6,' orne Purchase Loans In the City of San Bernardino, 2,039 housellOlds applied for government-backed financing to achieve homeownershlp, compared to 10,746 households that applied for conventional home purcllase loans. As is typically the case, approval rates for government-backed loans were higher 75 percent than conventional finanCing 69 percent see Table 4-8. The denial rate for government-backed finanCing was also considerably lower 12 percent compared to conventional loans 20 percent . As was the case for the conventional home loan market. Hispanic households were the biggest user of government-backed financing, representing 52 percent of the applications. The second biggest user of government-backed financing were hlte households, which comprised one quarter of all applicants. hen Tables 4-1 and 4-9 are considered together, a greater proportion of Hispanics 52 percent relied on government-backed fmancing Ulan conventional financing 40 percent. In contrast, the same proportion of hites 25 percent relied on conventional home purchase loans and government-backed financing ....- Few low income households utilized government-backed financing and even fewer got approved for their loans Table 4-10. As discussed before, many low income households most likely cannot afford to maintain both mortgage and improvement loans Approval rate for low income households for government-backed financing was noticeably lower than the rates for other groups Moderate and middle income households were generally the biggest users of this resource. Table - Comparison of Conventional and overnment-Bac ed ome Purchase Loan Applications Disposition Loans Approved Denied Closed. ithdrawn Total Conventional Government-Backed of of of of Applications Total Applications Total 7,401 69 1,530 75 - --------..------.. ----- 2,164 20 239 12 1,181 11 270 13 ----------- - ~--~--- 10.746 100 2,039 100 Source: HMDA data tabulated using Peertra)( software bi the Centra)( Group. 2003 ittldrawn applications are files Withdrawn by the applicant dUring the lending process Closed applications are files closed by the lender for incompleteness -~ CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 4.1 1 Chapter 4: Lending Profile "',- Tobie - ispositlon of overnment-Bac ed 6me Purchase Loan Applications by Race of Applicant I I ithdrawn or Total Annroved Denied Closed of of of of Race Total Total Total Total Native American 5 1 3 60 0 0 2 40 Asian 47 2 31 66 10 21 6 13 African American 177 9 121 68 28 16 28 16 Hispanic 1.058 52 767 72 146 14 145 13 hite Sll 25 428 84 31 6 52 10 OInt 63 3 49 78 4 6 10 16 Other 22 1 17 74 1 S 4 18 Not Available 156 8 114 73 19 12 23 lS Total 2,039 100 1,530 75 239 12 270 13 Source: Home Mortgage Disclosure Act HMDA. 2003. Table -1 isposition of overnment-Bac ed ome Purchase Loan Applicatlon5 by Income of Applicant - I ithdrawn or Total ADOroved Denied Closed Applicant Income of of of of ofMFI Total Total Total , Total Low: 50 159 8 108 68 29 18 22 14 Moderate: 50 to 80 I 642 32 489 76 67 10 86 13 Middle 80 to 100 T 488 24 358 73 56 12 74 15 Middle 100 to 120 I 329 16 261 79 32 10 I 36 11 Upper: 120 i 3ZZ 16 2S1 78 38 12 33 10 Not Available I 99 5 I 631 64 ! 17 17 19 19 ! Total ! 2.039 i 100 1.530 75 I 239 12 270 13 Source: Home Mortgage Disclosure ACl HMOA. 2003. Lending in Low eighborhoods oderate Income and inority Analyzing lending patterns by neighborhood characteristics is also important to determine whether loans are being issued to neIghborhoods with lligher concentrations of minonties or lower income applicants_ The lack of home purchase loans to one or more neighborhoods has been the subject of alleged practices of redlining. To analyze differences between income groups, census tracts were classified into three income categories low-moderate, middle, and upper, as well as three levels of minority concentrations, representing low, medium. and high concentrations of minorities. Table 4-11 displays the approval rate for conventionally financed home loans in San Bernardino by neighborhood income level and concentration of minority households. Almost half of home loan applications in S,:m Bernardino were filed for homes in Middle income census tracts. Moderate Income census tracts accounted for 28 percent of all applications, wllile 15 percent of all - P age 4.' 2 CITY OF SAN BERNARDINO Analysis or Impediments to Fair Housing Choice Chapter 4: Lending Profile "- applications were for homes in Low income census tracts. Only 1 0 percent of all home purchase loan applications were for homes in Upper income areas, possibly due to the fact that fewer tracts in San Bernardino are considered as Upper income. Table -11 Lending to Low oderate Income and inority eighborhoods Percent of Loan A Iications Loan Approval Rate Neighborhood Income level Low. 50 percent of County MFI 15 64 Moderate - 50-80 percent of County MFI 28 63 Middle - 80-120 percent of County MFI 49 72 Upper- 120 percent of County MFI 10 78 Minority Neighborhoods Less than 20 Low 2 69 20 to 50 Moderate 22 77 50 High 76 67 Source: Home Mortgage Disclosure Act HMDA, 2003. '-- Overall. home purchase Joan applications for homes in higher income census tracts had higher approval rates than applications for homes in lower income tracts. Approval rates ranged from 78 percent in Upper Income census tracts to 64 percent approval rates in Low income areas_ Only two percent of the loan applications were for areas with low concentrations of minorities. Census tracts with high concentrations of minority households accounted for more than three-quarters of all home loan applications in the City. These neighborhoods had an approval rate of 67 percent However, neighborhoods with just moderate concentrations of minority households had a much higher loan approval rate of 77 percent Subprime Lending. ar et In general, lending institutions are divided into two categories based on the type of loans or mortgages they offer: nme and sub rime. According to the Federal Reserve, prime mortgages are offered to persons with excellent credit and employment history and income adequate to support the loan amount. Subprime loans provide financing to persons who do not satisfy standard underwriting guidelines due to self employment. variable income, or less than perfect credit In general, the quality of the loan defines the loan as subprime. Subprime loans usually have an interest rate of at least one to six percentage points above that of a prime mortgage. Another important distinction IS the lack of regulatory oversight of many lending institutions that originate subprime loans. According to a Federal Reserve report. many subprime lenders are not owned by regulated finanCial institutions. Unlike banks and savings and loans, which must submit regular regulatory compliance audits and whose activities are overseen by a variety of institutions, m3ny subprime lenders are not subject to rigorous oversight Indep2ndent mortgage companies do most of the subprime lending in the United States, and only the Federal Trade Commission, which has limited resources for the immense market it monitors, regulates subprime lenders. However, in recent years, an increasing number of large banks such as Citibank, Countrywide, and ashington Mutual have entered the subprime market directly or through the acquisition of other financial institutions. - CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 4-' 3 Chapter 4; Lending Profile Though the subprime lending market usually foliows the same guiding principles as the prime market. specific risk factors have been associated with this market According to a joint HUDlDepartment of the Treasury report, sub prime lending generally has the following characteristics:' higher risk and loan defaults lower loan amounts higher costs to originate loans faster prepayments and overall higher loan fees. Moreover, a recent study on subprime lending throughout California concluded that more than one-third of borrowers included in the study may have been victimized by predatory lending and that many experienced aggressive marketing techniques, change in loan terms for the worst at closing, higher prepayment penalties, and points and fees exceeding five percent of the loan amount.5 Among the top lenders in the City of San Bernardino, many are identified by HUD based on 2002 HMDA data as subprime lenders: Freemont Investment Loans BNC Mortgage, Inc., Long Beach Mortgage Company First Franklin Financial Corporation Household Financial Corporation Beneficial Corporation and eybank USA However, this is not to say that these lenders practiced predatory lending, Just than borrowers potential exposure to predatory lending practices may be increased.6 Predatory Lending - Predatory lending has become a growing issue in California due to the state s tight housing market, high home costs, and large minority and elderly population. Predatory lending occurs when potential buyers are looking to purchase a new home or when existing homeowners refinance their home to consolidate current debts. Predatory lending involves abusive loan practices usually targeting minority and/or low-income homeowners or those with less-than-perfect credit history. Predatory lending is difficult to define since a 15 percent interest rate on a loan to one person could be predatory while it might be appropriate for another based on the borrower s risk factors. Predatory lending Includes at least 39 different types of practices from the origination to collection of the loan_ These practices typically target and steer low-income, minOrities, or the elderiy to high- rate lenders. According to the Federal Home Loan Mortgage Corporation, predatory lending practices include high interest rates more than seven or eight points above market rates. excessive upfront fees. negative amortization repayment schedules whereby the monthly payment fails to payoff accrued interest and actually increases the original amount borrowed, balloon payments, high loan-to-value loan, mandatory arbitration clauses, and high-pressure sales tactlcs_ HUD has raised concern about two categories of improper or predatory lending practices. The first type involves blatant fraud or acts of deception such as forging signatures or obtaining signatures on blank documents, falsifying loan applicant income or appraised value of the property, or employing bait and switcll tactics. A second type, often more difficult to identify, involves various manipulative practices that cause borrowers to enter into abusive loans Common abusive loans include: . uity Stripping: This type of practice occurs when a loan IS based on the equity of a home rather than the borrower s ability to repay. This type of loan often has high fees, prepayment penalties, and different terms and conditio:1s than <3 regular home 16an. --- U.S, Department of Housing and Urban Deveiopment and the U,S, Department of Treasury. Curbing Predatory Home ortgage Lending. une 2000. to/en ealth. /ne uities In California s ub rime ortgage arket. California Reinvestment Committee November 2001. Subprime and Manufactured Home lenders liSt, HUD. 2003. www.HUDuser.org P ag e 4.14 CiTY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Chapter 4: Lending Profile . Pac ing: This involves the practice of adding credit Insurance or other extras into the loan. The supplements to the loan are often very profitable to the lenders and are typically financed in a single up-front or balloon payment. . Flipping: This practice is a form of equity stripping and happens when a lender convinces a borrower to repeatedly refinance a loan within a short period of time_ The lender typically charges high points and fees each time as part of the mortgage. Predatory lenders receive some scrutiny under the Fair Housing Act of 1968, which requires equal treatment in the terms and conditions of housing opportunity and credit regardless of race, religion, color, national origin, family status, or disability. The Equal Credit Opportunity Act of 1972 also requires equal treatment in loan terms and availability of credit for all of the above categories, as well as age. sex, and marital status. Lenders would be in violation of these acts if they target minOrity or elderly households to buy higher-priced loan products, treat loans for protected classes differently, or have practices that have a disproportionate effect on the protected classes. In addition, the Truth in Lending Act T1LA reqUires lenders to inform the borrower about payment schedules, loan payments, prepayment penalties, and the total cost of credit. In 1994, Congress amended TILA and adopted the Home Ownership and Equity Protection Act. This Act requires that lenders offering high-cost mortgage loans disclose information if the annual percentage rate APR is ten points above the prime or if fees are above eight percent of the loan amount. prohibits balloon payments for short-term loans and, for longer covered loans, reqUires a warning if the borrower could lose the home If they default on the loan payment. - In 2001, California became the second state to pass a law banning predatory lending, codified as AB489 and amended by AB344. The law provides protections against predatory lending to consumers across the state with respect to financing of credit insurance, high loan and points, steering and flipping, balloon payments, prepayment penalties, call provisions, interest rate changes upon default. or encouragement to default when a conflict of interest exists. The law enables state regulators to enforce and levy penalties against licensees that do not comply with the provisions of this bill. .1 orne Insurance Loan utcornes For many indiViduals and families, soaring home prices have made It too difficult to afford a home without down payment assistance. Lenders typically require private mortgage insurance on conventional home loans when the downpayment is less than 20 percent of the sales price of the home. Mortgage insurance is typically required on most conventional mortgages because experience reveals a strong correlation between borrower equity and default. Private mortgage insurance is a financial guaranty that protects lenders against loss in the event that a borrower defaults. - CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 4 -, 5 . Chapter 4: Lending Profile '"~.'~ Unlike the CRA reporting requirements for home purchase, refinance, and improvement loans, financial Institutions Issuing mortgage insurance have fewer requirements. The FFIEC reached an agreement with the Mortgage Insurance Companies of America MICA to allow eight private mortgage insurers to collect HMDA data beginning in October 1993. Each year, the partiCipating insurers disclose their mortgage insurance activities. As a small sample, MICA data represents less than 20 percent of the records in HMDA data. Table 4.12 analyzes the approval rates for private mortgage insurance for conventional home purchase loans and conventional refmance loans by race and ethnicity. TI18 approval rate for private mortgage insurance remJined relatively the same regardless of race or ethnicity. hlte and Hispanic applicants for conventional home purchase loan insurance had the same high approval rate of 95 percent Asians and African Americans had slightly lower approval rates of 93 percent Home mortgage insurance approval rates for home loan refinancing also had very little fluctuation based on race or ethnicity. Table -12 Approval Rate for Conventionally Financed ome ortgage Insurance In San Bernardino 2 RacelEthnicity Conventional Home Purchase hlte Applications Percent Approved - Hispanic 647 9S Afrlcan-!\merICan 4.947 93 Asian 913 93 Ottler 12,814 95 Total I 25.628 94 , 6,307 95 Conventional Refinance hite HispaniC African-American ASian Other Total 5,455 i 564 I 2,8521 394 I 8,6541 17.919 94 94 94 93 95 95 Source Mortgage Insurance Companies of America - Pa 9 e 4.16 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice . Cater Publ ic Pol icies and Programs Public policies can affect housing development and therefore, may have an impact on the range and location of housing choices available to residents. Fair housing laws are designed to encourage an inclusive living environment and active community participation. An assessment of public policies and practices enacted by the City can help determine potential impediments to fair housing opportunity. To identify potential impediments to fair housing choice and affordable housing development. the City s Housing Element, General Plan, Development Code, Consolidated Plan, and other documents have been reviewed and presented in this chapter. 5.1 eneral Plan and evelopment Pol icies 5,' " eneral Pian Land se lement .",- The City of San Bernardino General Plan sets forth the City s policies for guiding local development. These policies, together with existing loning, establish the amount and distribution of land to be allocated for various uses throughout the City. The residential land use categories identified in tile General Pian are outlined In Table 5-1. The City is currently undertaking a comprellensive update to its General Plan As part of this update, land use policies regarding residential opportunities will be evaluated. 5,',2 eneral Plan DUSing lement The 2000-2005 Housing Element extended to 2008 by legislation Identifies the following goals: 1. Facilitate the development of a variety of types of housing to meet the needs of all income levels In the City of San Bernardino 2. Conserve and Improve the condition of the eXisting affordable housing stock and revitalize neighborhoods containing a substantial percentage of deteriorated dwelling units 3. Assist in the development of adequate housing to meet the needs of low and moderate income households 4. Assist the proviSion of housing for residents With special needs 5. Reduce the adverse effects of governmental actions on the production, preservation, and conservation of hOUSing, particularly for low and moderate income households 6. Promote equal hOUSing opportunity for all residents of the City of San Bernardino -- CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice P age 5.1 - Chapter 5: Public Policies and Programs '---- To implement these housing goals, ttle Housing Element included a number of programs: . omeownership pportunities: To expand homeownership opportunities for households interested In purchasing their first home, the City offers the Mortgage Assistance Program MAP that provides deferred loans of up to 10 percent of the purchase price of the home to first time homebuyers. ousing Rehabilitation: The City offers several housing rehabilitation programs for single- family developments. These programs include the Slngle-Famiiy Dwelling Maintenance Grant Program, the Mobile Home Grant Repair Program, the Elderly/Special Needs Minor Repair Grant Program and the Neighborhood Initiative Program - Home Improvement Deferred Loan and Beautification Grant . obile ome Rental Assistance Program: The City utilizes Redevelopment Set-Aside funds, when available, to provide financial assistance in paying mobile home space lease costs to eligible low income seniors. Infill ousing Program: This program was designed to create high quality housing on unimproved vacant infill sites within established neighborhoods throughout the City The City works with local developers and lending institutions interested in Joint ventures to create affordable housing opportunities for first-time home buyers. - xpand Affordable ouslng pportunitles: The City works with non-profit developers to provide affordable housing opportunities in the City. The City assists affordable housing developers with financial and technical assistance, including offsetting development fee costs, proViding set-aside funds, financing infrastructure and other regulatory incentives. An important component of the State Department of Housing and Community Development HCD approval of any housing element includes a determination that the local jurisdiction 5 policies do not unduly constrain the maintenance, Improvement. and development of housing for all income levels. The 2000-2005 City of San Bernardino Housing Element has been certified by the State Department of Housing and Community Development HCD as In compliance with State laws. ThiS certification status affirms that the City has evaluated Its publiC poliCies as potential constraints to the maintenance. improvement and development of housing and has adequately addressed all potentIal constraints through housing poliCies and programs. 5,1_ oratoriums rowth anagement San Bernardino does not have building moratoriums or growth management plans that limit housing construction. 5.2 oning and Building Codes 5,2.1 evelopment Code Higher density housing reduces land cost on a per-unit basis and thus facilitates the development of affordable housing_ Restrictive zoning that requires unusually large lot and bUilding size can substantially increase h.ousing costs and can impede housing production. -- P age 5.2 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice , . Chapter 5: Public Policies and Programs -- The City of San Bernardino General Plan and Development Code provide for a variety of residential zones, Jot sizes, and density levels to facilitate a diverse mix of housing types. Maximum densities range from 1 unit per acre in the Residential Estate zone RE to 31 units per acre in the High Density Residential RH zone. The Development Code also provides for a wide range of hOUSing types, including mobile homes, factory-built housing, second units, group care facilities and senior housing. For senior housing development in the downtown area can receive a significant density increase to 150 units per acre pursuant to Housing Element Policy 1.1.3. The City also allows up to 50 percent increase above the permitted denSity in all multi-family districts for senior housing_ State legislation mandates the inclusion of mobile home/manufactured housing in a city s land use policy. Mobile homes on permanent foundation are treated as regular single-family homes and are permitted in all residential districts where single-family residences are permitted_ Mobile home parks are permitted in all residential zones subject to a Development Permit. Table 5-1 outlines the development standards by zoning district and correlates zoning with General Plan designations. The table also describes the types of reSidential use permitted in each zone. Table5~1 Residential one istricts General Plan Maximum Maximum Minimum Lot Zone Densitv Heinht Size Tvnical Residential Tvoe state Residential RE 1 dulacre 45 ft. 1 acre Single family homes on large lots - Single Family Residential Low Density Residential RL 13.1 du/acre '35 ft 10,800 sq. ft Single-family detached homes RS 4.5 du/acre 35 ft 7,200 sq It Single-family detached homes RU-1 8 dulacre 35 It 7,200 sq. ft Single-family detached and attac~led homes, duplex. RU-2 18 dulacre ,35 ft 7,200 sq. It mobile home parks. senior housing , I Medium Density Residential RM 12 du/acre 142 It. 14.400 sq. It Single or low-den~jty multl.family dwellings With one or more dwellinas on the same lot RMH 21 du/acre i 42 ft 20,000 sq It. Medium high multi. family dwellings High Density Residential RH 31 dulacre 56 ft. 20.000 sq. It Multi.family dwellings including apartments and duolexes Residential Student Housing overlay district located RSH 20 dulacre 56 It. 5 acres within 500 feet of California State University San Bernardino designed to allow student housing complexes Sources' City or San Bernardino Development Code Notes: Senior Citizen and Senior Congregate Care housing is permitted in the RU. RM. RMH. and RH districts, If'! the multl- f3mily d'st~icts, the development of senior citizen and senior congregate care housing is permitted at a density up to 50 percent greater than allowed in the district with a marketing feaSibility study and conversion plan. 2 Second dwelling units are permltted in aJt districts except RSH districts subject to a Development Permit - CITY Of SAN BERNARDINO Analysis of Impediments to Fair Housing Choice Page 5.3 . Chapter 5: Public Policies and Programs ''"'''''- The Development Code also contains provisions to facilitate development of housing for special needs groups. These include: . efinition of a Family: A community can potentially restrict access to housing for relations failing to qualify as family by the definition specified In the zoning ordinance or development code. For instance, a landlord may refuse to rent to a nontraditional family based on tile zoning definition of a family_' If the definition of family includes a specified number of unrelated persons in a household, a landlord may also use thiS as an excuse to refuse renting to a household WIUl unrelated individuals such as students living together. California court cases2 have ruled that an ordinance that defines a family as: 1 an individual 2 two or more persons related by blood, marriage or adoption or 3 a group of not more than a specified number of unrelated persons as a single housekeeping unit. is invalid. Court rulings stated that defining a family serve no legitimate or useful objective or purpose recognized under the zoning and land planning power of the jurisdiction, and therefore violates rights of privacy under the California Constitution. A zoning ordinance also cannot regulate residency by discriminating between biologically related and unrelated persons. Furthermore, a zoning provision cannot regulate or enforce the number of persons constituting a family. Current, the San Bernardino Development Code defines a family as follows: An individual, or or more a grou of not more than housekee ing unit. ersons related by blood, marriage or legal ado tfon, or ersons who are not so related living together as a single - However, the City does not apply thiS definition during approval or review of residential deveiopment. In future updates to the Zoning Ordinance, the City may conSider removing this definition from the Ordinance. Community Care FaCilities: The Lantcrman Developmental Disabilities Services Act Sections 5115 and 5116 of the California elfare and Institutions Codc declares that mentally and physically disabled persons are entitled to I,ve ,n normal residential surroundings. The use of property for the care of six or fewer disabled persons is a residentml use for the purpose of zoning. A State-authorized, certified or licensed family care home, foster home, or a group home serving six or fewer disabled persons or dependent and neglected children on a 24-hour-a-day basis is considered a residential use that is permitted in all residential zones for single-family dwellings. No local agency can impose stricter zoning or building and safety standards on these homes. The City of San Bernardino Development Code permits day care and 24-hour long-term and short-term care facilities in CO-l, CO-2, CG-" CG-2, CG-5, and CR-2 zones subject to the approval of a Conditional Use Permit. A Conditional Use Permit typically takes four to six months to process. According to the State California Department of Social Services, Community Care Licensing DiVision. there arc 112 licensed community care facilities in the City of San Bernardino, with a total capacity for 1,960 persons Section 2.7. As part of thiS AI study, several service providers were Interviewed AppendiX A. Representatives of these service providers commented a general perception that development of group homes for persons with disabilities is often met with animosity. - Most zoning oralnance that define families limit the definition to two or more IndIViduals related by kinship. marriage, adoption. or other legally recognized custodial relationship. City of Santa Barbara v. Adamson 1980 < City of Ctlula Vista v. Pagard 1981 . among others P age 5 - 4 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice . ~ Chapter 5: Public Policies and Programs ""."". Second nits: Second units are attached or detached dwelling units that provide complete independent living facilities tor one or more persons including permanent provisions for living, sleeping, cooking and sanitation_ According to the San Bernardino Development Code, second units are permitted on all lots for single-family use or multiple-family use which are compatible subject to a Development Permit. Secondary units are only permitted if the lot has an eXisting primary residence, the applicant is the owner of the property and occupant of primary residence and the total area of floor space for the second unit cannot exceed 30 percent of the existing living area of the main dwelling if the second unit is attached or 1,200 square feet if the second unit is detached. Recent changes In State law require that the approval of second units be ministerial if the applicant meets the City s established conditions and standards_ The standards and conditions cannot be more restrictive than State standards. Current City policy requires a public hearing for review of the Development Permit application. The City may need to revise its Development Code to comply with State law. . ensity Bonuses: The California Government Code Section 65915, as amended, requires that a local government grant a density bonus and additional incentives, or financially equivalent incentives to a housing developer who agrees to construct housing that includes qualified affordable units_ Par ing Re uirements: The City s parking requirements are presented in Table 5-2 below: Table 5-Z Par ing Re uirements by ousing Type - Housing Type Single-Family Residence Multi.F amily Residence Studio or '-bedroom Two-bedroom Three-bedroom or larger Mobile Home Spaces Required 2 spaces in enclosed garage Second Unit Senior Apartment Senior Congregate Cafe Housing Unit 1.5 covered spaces 1 uncovered guest spacel5 units 2 covered spaces 1 uncovered guest spacel5 units I 2.5 covered spaces 1 uncovered guest spacel5 units 2 covered spaces may be tandem 1 uncovered guest sDace/unit 1 covered space per bedroom 1 covered space 1 uncovered guest spacel5 units 0.75 covered space These standards are fairly comparable to parking requirements in the region. Furthermore, housing developments that include an affordable housing component, meeting the density bonus requirements are eligible to use State parking standards that require few parking spaces. 5_2_2 Infill ousing evelopment Infill development involves the development or redevelopment of vacant, bypassed, or underutilized parcels of land as a result of continuing urban development 3 Infill hOUSing development conserves the City s resources of undeveloped land and it often provides lower associated development costs since the sites are already served by public services and infrastructure. Currently, infill development is primarily occurring in the southern area of the City. In addition, the City actively pursues -- ^ Glossary of Laning. Development and Plannmg Terms Eds. Michael DaVidson and Fay Dolnick 1999. CITY OF SAN BERNARDINO Analysis or Impediments to Fair Housing Choice P age ~. 5 , . '-- """""" """""" Chapter 5 Public Policies and Programs revitalization of the downtown Jrea where additional affmdable housing opportunities may be feasible. 5.2. Building Codes The City has adopted the State Uniform Building and Housing Codes. These codes are considered to be the minimum necessary to protect the public health, safety, and welfare. No local amendment has either been Initiated or approved that directly affects housing standards or processes. 5. Community Representation 5, .1 Planning Commission The Planning Commission reviews and makes decisions on a variety of land use matters such as subdivisions, conditional use permits, community plans, design reviews, and variances The Commission also reviews and makes recommendations to the City Council on issues pertaining to the General Plan, Specific Plans, zone changes, annexations, ordinances and policy issues regarding development. Decisions are reached at public hearings, and residents. business community members, and concerned citizens are encouraged to attend and participate in the discussion and decision process. The Planning Commission may be comprised of up to 11 members there are currently a few vacancies_ Each City Council member appoints a resident from ttleir ward 7 members, and the Mayor appoints two members and two alternatives to the Planning Commission This process of appointing Planning Commissioners is typical in California. Furthermore, all meetings are subject to the Browns Act to protect the public s right to access information. Page 5-6 CITY OF SAN BERNARDINO Analysis of Impediments to Fair Housing Choice ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): S- 16- ()I", Item # 1< 4-5 Resolution # -,f A51--a.i~ "only Vote: Ayes I-I; Nays Abstain '7 c:20x::, -/.,). 7 Absent Change to motion to amend original documents D Companion Resolutions NulINoid After: days I / Resolution # On Attachments: g/' Note on Resolution of attachment stored separately: D PUBLISH D POST D RECORD WICOUNTY D By: Date Sent to Mayor: (J'5-)&-Ch Date of Mayor's Signature: DS-~)(-I:J; Date ofClerk/CDC Signature: :5 I rxc, Reso_ Log Updated: ~ Seal Impressed: Reso, # on Staff Report D Date MemolLetter Sent for Signature: I" Reminder Letter Sent: Date Returned: 2"d Reminder Letter Sent: Not Returned: D Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433,10584, 10585, 12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): Yes ./ No By_ No /' By_ No~ By_ NO--L- By_ No / By_ Yes Yes Yes Yes Copies Distributed to: cI Animal Control D EDA Information Services D City Administrator D Facilities D Parks & Recreation D City Attorney D Finance D Police Department D Code Compliance D Fire Department D Public Services D Development Services D Human Resources D Water Department D Others: Notes: Ready to File: _ Date: Revised 12/18/03 ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): 05-1 S-- Q;:., Item # R l/ 5" Resolution # Vote: Ayes / - Ct Nays Abstain c2 OO~- /~F{ Absent '1 Change to motion to amend original documents D Companion Resolutions Null/Void After: days/ Resolution # On Attachments: D Note on Resolution of attachment stored separately: D PUBLISH D POST D RECORD W/COUNTY D By: Date Sent to Mayor: Os - 1(:,- Oee, Date of Mayor's Signature: O::;/;g )OCe:, , . Date ofClerk/CDC Signature: Reso, Log Updated: Seal Impressed: ~ D Reso_ # on Staff Report D Date Memo/Letter Sent for Signature: I" Reminder Letter Sent: Date Returned: 2nd Reminder Letter Sent: Not Returned: D Request for Council Action & Staff Report Attached: Yes No By_ Updated Prior Resolutions (Other Than Below): Yes No By_ Updated CITY Personnel Folders (6413,6429,6433, 10584, 10585, 12634): Yes No By_ Updated CDC Personnel Folders (55:57): Yes No By_ Updated Traffic Folders (3985, 8234, 655, 92-389): Yes No By_ Copies Distributed to: Animal Control D EDA D Information Services D City Administrator D Facilities D Parks & Recreation D City Attorney D Finance D Police Department D Code Compliance D Fire Department D Public Services D Development Services D Human Resources D Water Department D Others: Notes: Ready to File: _ Date: Revised 12/18/03