INDICATOR

 STATUS

In 1998, 86% of controlled rental units in the city had rents affordable to very-low and low-income households. These households represented 4-person families making up to approximately $40,000 or less annually. In 2006, that figure had dropped to 41% of the units had rents affordable to those in similar circumstances.

Looking, specifically, at very-low income households reveals an especially precipitous decline in the affordable housing situation. In 1998, 25% of rent-controlled units were affordable to very low income households. By 2005, that figure had dropped to 8% of similar households.

Methodology
The city defines very low-income households as those earning between 0 and 50% of the Los Angeles County Median Family Income. Low-income households earn between 51 and 80% MFI. Moderate-income households earn between 81 and 120% MFI. Upper income households earn above 120% MFI. LA County Median Family Income during the relevant period has ranged from $51,300 to $56,200 annually. The Rent Control Board then assesses how many rent controlled units are affordable at given income levels, assuming that 30% of annual income is applied to rent.

Prognosis for Improvement
Since 1999, the affordability to low and very-low income tenants of more than half of the city’s rent controlled housing units has been lost due to state-mandated vacancy decontrol.   The controlled housing stock affordable to low and very-low income residents continues to decrease from 86% before state-mandated vacancy decontrol in 1999 to 41% in 2006. This factor, combined with sustained upward pressure on real estate prices, has severely reduced the availability of affordable housing.  However, the city’s progressive legal protections, such as the just-cause eviction protections in rent controlled units, have contributed to keeping some 40% of the controlled units affordable to low and very-low income tenants. 

In addition to preserving the existing stock of affordable rental units, the city is investing in the development of new affordable housing. The Housing and Redevelopment Division financed almost $16 million for the production of more than 60 units of affordable housing in three projects.  Design development for the Civic Center Village is underway and will include at least 160 affordable housing units. Though this development is at least 2 years from completion, it represents a positive step towards addressing affordable housing issues in Santa Monica.