Analysis of Impediments to Fair Housing (AI)- Complete Report

732 Pages·2012·12.04 MB·English

Analysis of Impediments to Fair Housing

California Department of Housing and
Community Development

September 2012
Analysis of Impediments to Fair Housing

State of California
Edmund G. Brown, Governor

Business, Transportation and Housing Agency
Brian P. Kelly, Acting Secretary

Department of Housing and Community Development
Linn Warren, Director
Linda Wheaton, Assistant Director for Intergovernmental Affairs

Division of Housing Policy
Glen A. Campora, Acting Deputy Director
Jennifer Seeger, Housing Policy Manager

Division of Financial Assistance
Laura Whittall-Scherfee, Deputy Director
Nicole Carr, Assistant Deputy Director
Tom Bettencourt, Federal Programs Branch Chief
Thomas Brandeberry, CDBG Section Chief
Christina DiFrancesco, Federal Programs Branch Specialist
Susan Naramore, CDBG Specialist

September 2012
BLANK PAGE
STATE OF CALIFORNIA
ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING

TABLE OF CONTENTS

EXECUTIVE SUMMARY, IDENTIFIED IMPEDIMENTS AND PROPOSED ACTIONS
DESCRIPTION OF METHODOLOGICAL APPROACH EXEC-1
SUMMARY OF FINDINGS AND IDENTIFIED IMPEDIMENTS EXEC-2
PROPOSED ACTIONS TO ADDRESS IDENTIFIED IMPEDIMENTS EXEC-3

CHAPTER 1 – INTRODUCTION, PURPOSE AND SCOPE
PURPOSE OF REPORT 1-2
LEGAL FRAMEWORK 1-2
DEFINITIONS 1-3
PROTECTED CLASSES AND DISCRIMINATORY PRACTICES 1-3
OTHER FACTORS 1-5
SCOPE OF ANALYSIS AND ORGANIZATION OF REPORT 1-6
OVERVIEW OF STATE CDBG AND HOME PROGRAMS 1-8
DESCRIPTION OF GEOGRAPHIC REGIONS USED IN ANALYSIS 1-17
DATA AND METHODOLOGY 1-20
LIMITATIONS OF ANALYSIS 1-21
SUMMARY OF THE AI DEVELOPMENT PROCESS 1-22
PUBLIC REVIEW AND COMMENT 1-22
ACKNOWLEDGEMENTS 1-23

CHAPTER 2 – STATEWIDE, REGIONAL AND COUNTY ANALYSIS
POPULATION AND PROJECTED GROWTH 2-1
AGE AND GENDER DEMOGRAPHICS 2-4
RACIAL AND ETHNIC COMPOSITION 2-6
NATIVITY AND FOREIGN-BORN ESTIMATES 2-16
LINGUISTICALLY ISOLATED HOUSEHOLDS 2-21
POVERTY RATES 2-25
HOUSEHOLDS BY TENURE 2-31
HOUSING UNITS AND VACANCY RATES 2-36
HOUSING BURDEN 2-40
SPECIAL NEEDS POPULATIONS 2-44

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CHAPTER 3 – LAWS, POLICIES AND STATE’S ROLE IN FURTHERING FAIR HOUSING
OVERVIEW OF FEDERAL FAIR HOUSING LAWS AND EXECUTIVE ORDERS 3-1
STATE FAIR HOUSING LAWS AND POLICIES 3-4
STATE HOUSING ELEMENT LAW AND THE REGIONAL HOUSING NEEDS ALLOCATION PROCESS 3-10
OVERVIEW OF STATE DEPARTMENTS ADMINISTERING HOUSING PROGRAMS 3-25

CHAPTER 4 – CONDITIONS IMPACTING FAIR HOUSING CHOICE__________________
CHANGING LANDSCAPE AND DEPLETION OF RESOURCES AVAILABLE FOR AFFORDABLE HOUSING 4-1
PROJECTED LOSS OF SUBSIDIZED HOUSING 4-5
FORECLOSURE TRENDS AND IMPACTS 4-7
PATTERNS AND AVAILABILITY OF FINANCING 4-15
PREDATORY LENDING PRACTICES AND SUBPRIME MORTGAGES 4-31
APPENDIX I – METHODOLOGIES USED IN ANALYSES 4-40
CHAPTER 5 – HOUSING CHOICE VOUCHER PROGRAM
OVERVIEW OF HOUSING CHOICE VOUCHER PROGRAM 5-2
GEOGRAPHIC DISTRIBUTION AND CHARACTERISTICS OF RECIPIENTS 5-3
FAIR SHARE UTILIZATION AMONG MINORITY HOUSEHOLDS 5-9
HOUSING CHOICE VOUCHERS AND INTEGRATION 5-15
APPENDIX I – METHODOLOGY FOR ESTIMATING VERY LOW-INCOME FAMILIES 5-18

CHAPTER 6 – FAIR HOUSING COMPLAINTS____________________________________
COMPLAINTS BY AGENCY 6-2
COMPLAINT RESOLUTIONS BY AGENCY 6-8
HOUSING COMPLAINT RATES 6-8
PRESENCE AND ROLE OF FAIR HOUSING EDUCATION AND ENFORCEMENT AGENCIES 6-17
CONCLUSION AND SUMMARY FINDINGS 6-20
APPENDIX I – DETAILED METHODOLOGY FOR HOUSING COMPLAINT CLOSURES 6-21
APPENDIX II – FAIR HOUSING EDUCATION AND ENFORCEMENT ORGANIZATIONS 6-23

CHAPTER 7 - STATE CDBG-ELIGIBLE JURISDICTIONS: ACCESS TO FUNDING
CDBG AND HOME FUNDING IN STATE CDBG-ELIGIBLE JURISDICTIONS 7-1
SNAPSHOT OF CDBG AND HOME ELIGIBLE JURISDICTIONS 7-8
EVALUATION OF POTENTIAL FAIR HOUSING IMPEDIMENTS FOR PROTECTED CLASSES 7-13
CONCLUSION AND SUMMARY FINDINGS 7-14
APPENDIX I METHODOLOGY 7-15
APPENDIX II STATE CDBG POPULATION 7-18
APPENDIX III STATE HOME POPULATION 7-27
APPENDIX IV ALL OTHER FUNDING POPULATION 7-32
APPENDIX V STATE BOND PROGRAMS 7-43
APPENDIX VI STATE LOW-INCOME HOUSING TAX CREDIT PROGRAM 7-54
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APPENDIX VII STATE LOW-INCOME HOUSING TAX CREDIT SUMMARY 7-75
APPENDIX VIII COMPARISON OF CHARACTERISTICS 7-80
APPENDIX IX ALL PROGRAMS 7-86
APPENDIX X CDBG PROGRAM APPLIED AND FUNDED BY ACTIVITY 7-111
APPENDIX XI HOME PROGRAM APPLIED AND FUNDED BY ACTIVITY 7-136
APPENDIX XII ALL OTHER PROGRAMS APPLIED AND FUNDED 7-153
APPENDIX XIII SUMMARY BY PROGRAM 7-182

CHAPTER 8 – BENEFICIARY CHARACTERISTICS OF STATE CDBG PROGRAM AND
AFFORDABLE HOUSING STOCK SURVEYS
STATE CDBG SURVEYS 8-1
AFFORDABLE HOUSING STOCK SURVEY 8-10
APPENDIX I STATE CDBG ELIGIBLE JURISDICTIONS WITH NO COMPLETED CDBG ACTIVITY 8-14
APPENDIX II SURVEY NON-RESPONDENT CDBG-ELIGIBLE JURISDICTIONS 8-15
APPENDIX III RESPONDENTS WITH NO AFFORDABLE HOUSING PROJECTS IN LAST 10 YEARS 8-16
APPENDIX IV APPLIED/FUNDED STATUS OF SURVEY RESPONDENTS 8-17

CHAPTER 9 – BENEFICIARY CHARACTERISTICS OF STATE HOME PROGRAM
YEAR ASSISTED / YEAR OF INITIAL OCCUPANCY 9-3
ACTIVITY TYPE 9-3
HEAD OF HOUSEHOLD RACE AND ETHNICITY 9-3
HEAD OF HOUSEHOLD DISABILITY 9-5
FAMILIAL STATUS 9-6
HOUSEHOLD SIZE 9-6
AREA MEDIAN INCOME LEVEL 9-7
RENTAL ASSISTANCE 9-7
SUMMARY OF STATE HOME IDIS DATA 9-7
APPENDIX I JURISDICTIONS WITH NO COMPLETED HOME PROJECTS IN 2005/06 – 2009/10 9-9

CHAPTER 10 – BENFICIARY CHARACTERISTICS OF STATE HOME TENANT BASED
RENTAL ASSISTANCE
YEAR ASSISTED / YEAR OF INITIAL OCCUPANCY 10-2
HEAD OF HOUSEHOLD RACE AND ETHNICITY 10-2
HEAD OF HOUSEHOLD DISABILITY 10-4
FAMILIAL STATUS 10-4
HOUSEHOLD SIZE 10-4
AREA MEDIAN INCOME LEVEL 10-5
SUMMARY OF STATE HOME TBRA DATA 10-5

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CHAPTER 11 – ANALYSIS OF MINORITY AND LOWER-INCOME CONCENTRATION
ANALYTICAL FRAMEWORK 11-1
ANALYTICAL RESULTS 11-2
SPATIAL ANALYSIS OF HMDA LOAN ORIGINATIONS 11-13
ROLE OF PUBLIC FUNDING IN THE HOUSING MARKET 11-16
FAIR SHARE UTILIZATION ANALYSIS 11-17
HOME AND CDBG SPATIAL SEGREGATION/INTEGRATION ANALYSIS 11-19
HOUSING CHOICE VOUCHERS 11-21
CONCLUSION AND SUMMARY OF FINDINGS 11-25
APPENDIX I METHODOLOGY FOR DISSIMILARITY INDEX 11-28
APPENDIX II METHODOLOGY FOR OVER- AND UNDER-REPRESENTATION 11-30
APPENDIX III METHODOLOGY FOR ESTIMATING VERY LOW-INCOME FAMILIES 11-32
APPENDIX IV OVER-REPRESENTATION OF VERY LOW-INCOME FAMILIES 11-34
APPENDIX V JURISDICTION HOUSEHOLDS BY RACE 11-56

CHAPTER 12 – FAIR HOUSING SURVEY: IDENTIFICATION OF FAIR HOUSING
PRACTICES AND COMPLAINTS
FAIR HOUSING SURVEY OVERVIEW 12-1
SURVEY ANALYSES 12-2
CONCLUSION AND SUMMARY FINDINGS 12-27
APPENDIX I – JURISDICTIONS NOT SUBMITTING A SURVEY 12-29

CHAPTER 13 – FAIR HOUSING SURVEY: SUMMARY OF KEY FINDINGS
STATE CDBG AND HOME FUNDING 13-1
AFFORDABLE HOUSING ACTIVITIES 13-1
ECONOMIC DEVELOPMENT ACTIVITIES 13-2
FAIR HOUSING IMPEDIMENTS 13-2
LOCAL IMPEDIMENTS 13-3
ECONOMIC IMPEDIMENTS 13-3
ENFORCEMENT PRACTICES 13-4
OUTREACH PRACTICES 13-5

CHAPTER 14 – MODEL COUNTY ANALYSIS
ANALYTICAL FRAMEWORK 14-1
KEY FINDINGS 14-3
SELECTED DEMOGRAPHIC PROFILE 14-6
ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING 14-16
RESIDENTIAL SEGREGATION 14-17
OVER- AND UNDER-REPRESENTATION 14-18
IMPLICATIONS OF RESIDENTIAL PATTERNS 14-19
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ROLE OF INCOME AND THE PRIVATE HOUSING MARKET 14-38
ROLE OF PUBLIC FUNDING AND GOVERNMENT PRACTICES 14-46
CONCLUSIONS 14-71
14-73

APPENDICIES

STATISTICAL APPENDIX APPENDIX-1

SOURCES CITED REF-1

PUBLIC COMMENT AND RESPONSE
SUMMARY OF COMMENTS RECEIVED AND RESPONSES COMMENT-1
PUBLIC NOTICES (ENGLISH AND SPANISH) COMMENT-21
PUBLIC HEARING AGENDA COMMENT-25
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Executive Summary
Identification of Impediments and Recommended Actions
______________________________________________________________________________ 

As a condition of receiving Federal community development block grant funds,
communities and states must certify that they are affirmatively furthering fairness and
equal opportunity in housing for individuals and groups protected by the federal Fair
Housing Act of 1968 and its amendments. Jurisdictions that administer or directly
receive federal funds from the U.S. Department of Housing and Community
Development (HUD) must meet this obligation by performing an Analysis of
Impediments to Fair Housing Choice (AI) as part of their consolidated planning process
for housing and community development programs under the Code of Federal
Regulations (CFR) 24 Part 91. The AI is used to identify barriers to fair housing, and to
develop and implement strategies and actions to overcome these impediments.

The California Department of Housing and Community Development (HCD), as a
recipient of federal Home Investment Partnership (HOME) and Community
Development Block Grant (CDBG) program funds has been designated as the
department responsible for the preparation of California’s Analysis of Impediments to
Fair Housing and its plan to Affirmatively Further Fair Housing.

This AI broadly analyzes actions and conditions that may have the effect of restricting
housing choice for people protected under State and federal fair housing laws. The AI
not only identifies impediments to fair housing choice, but also makes recommendations
to overcome the effects of those impediments and shall serve as the basis for fair
housing planning, providing essential information to staff, policy makers, housing
providers, lenders, and fair housing advocates, and assisting with garnering community
support for fair housing efforts.

Description of Methodological Approach

The AI process involved a thorough examination of a variety of sources related to
housing, affirmatively furthering fair housing, the housing delivery system and housing
transactions, particularly for persons who are protected under federal and State fair
housing laws.

The extensive data analysis conducted in this report revealed important information
regarding the implementation of the State CDBG and HOME programs as well as
general findings related to the implementation of fair housing laws.

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