Although the recent tech boom in San Francisco has been blamed for the increased housing demand and the lack of affordable rental housing in the City, the reality is that the shortage of affordable rental housing been steadily climbing for the last 35 years. Rent control is oftenat the center of the controversy regarding the affordable housing shortage. In response to high inflation, and escalating rents, San Francisco’s Residential Rent Stabilization and Arbitration Ordinance was passed in 1979 (Forbes, Sheridan, 1999). Rent control imposes restrictions on landlords in regards to rent increases and evictions. It is estimated that seventy percent of San Francisco’s rental units are under rent control (Marti, Shortt, 2013). Because of the limited rent increases allowed, tenants living in these rent controlled apartments seldom move out, which severely impacts the vacancy rates in the City. Although the vacancy rate among rent-controlled units is extremely low, there are occasions when a tenant may vacate a rent control unit (a job out of the area, the decision to purchase a home, etc.). When a rent-controlled unit is voluntarily vacated, the landlord is allowed to raise the rent to market rates (this is called vacancy de-control); then the rent control annual increase takes effect on the new rent. A landlord will often raise the new rent to the highest possible price the market will allow, in an attempt to recoup the financial loss he is incurring on the units still under rent control. Because of the new higher rent, the previously affordable unit is no longer considered affordable; which then impacts the inventory of affordable housing in San Francisco.
“Rent control creates incentives for owners of controlled units to move thes...
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...t of owning a rental property is more than the income it produces. The bottom line is that owning a rental property is a business, a way of making a living for most property owners, and must be viewed as such. My idea is to develop a policy that requires all residential multi-unit buildings to provide a percentage of rental units to serve the following populations: economically disadvantaged, veterans, and middle income. Resources such as low interest capital improvement loans, government subsidies to offset low income rates, allowable rent increases based on tenants length of tenancy and change in income, will be made available to property owners who offer more than the required number of units at affordable rents. The funding for these would come from the newly formed San Francisco program, Housing Opportunities Promoting Equality, known as the H.O.P.E. Program.
Those who argue in favor of rent control say that it is the only way to protect
As the lease of my apartment is coming to an end it had me thinking of achieving my own American Dream of home ownership but as I do my research I find the dream is far from coming true. I am sure that the issue of housing prices and rent rates are what most of us Bay Area residents talk about and debate. It is an issue that needs to be addressed by the officials of the area, city mayors, affordable housing committees, social justice activists,lawmakers, and even employers. Skyrocketing prices, low inventory, and investors’ bidding wars are not only pushing the middle and lower classes out of San Francisco and the Bay Area out but will completely eliminate them.
On 10/28, Clients Shantae HOH and Jennifer co-applicant reported and completed the assessment & this Initial ILP. The clients returned back to Auburn on 10/25 after being cited for curfew violation. The clients are currently eligible for full shelter services including housing assistance. Both clients are aware and understands they must seek and accept first suitable housing. HOH inquired about eligibility for the LINC and SEPS Rental assistance Subsidies. CW explained the criteria for both programs and provided them with information on SEPS. Both clients reported being employed, HOH states she has two jobs, Client works at Superdry Clothing Store & Macys Dept. Stores as a Sales Associates Co-applicant Jennifer reported she is employed
The main problem rent control can create to landlords is the case of the tenant do not move out because of the good rental price. That causes the landlords to lose money by not being able to increase the rental price of their units. Besides, the price of maintenance continues to increase, causing landlords to not earn any profit with their ...
We have struggled to find good housing that will be sustainable to house all five family members of mine but is still affordable. Due to gentrification we were forced to move out of our home since the rent prices skyrocketed. Luckily we were able to find a home that was more affordable although it is small housing for five people, it was the best we can find. Many others face this same problem and some have not been as lucky as my family to find another housing option near by. According to A Map of Gentrification In the Bay Area published by KQED News and written by Dan Brekke, “The crisis is not half over” — meaning that rising rents and home prices, along with an influx of more affluent people, increase the pressure on low-income people to move to the region’s outer suburbs.” It also states, “Fifty-three percent of of all low-income households in the region live in neighborhoods at risk of, or already experiencing, displacement.” These statistics are frightening and should not be taken lightly. This means that half of the Bay Area has already and if not it will experience displacement. This displacement can leave many homeless, and without any options of other affordable
Inclusionary zoning (IZ) is an affordable housing development program, which encourages the production of affordable housing and controls the housing prices. IZ policies in San Francisco, Boston, and Washington D.C support new residential developments to keep a certain percentage of the housing units affordable and serve to low income residents. Density bonuses are allowed to the developer to build more units, and fast-track permitting allows developers to expedite the building process. Although those programs have aided numerous residents, there is the argument followed, IZ program would cause the prices of market-rate housing to rise ultimately reducing rather than increasing affordability. To find out the truth of the IZ program, the research team in Furman Center, New York University addresses these questions.
Increase the distribution of funding by local governments for affordable housing, by developing different techniques to reap a max funding.
For those of us with warm roofs over our heads and groceries on the table the problem of affordable housing does not often surface. But for low-income families, where half the income can disappear simply trying to keep the family sheltered in an acceptable home, the problem is a daily one. President of the BRIDGE Housing Corporation Donald Terner and columnist Brad Terner argue that affordable housing is a problem that should involve everyone. From your local supermarket clerk to your child’s science teacher, the problem of affordable housing can affect us all.
The existing Inclusionary Zoning Ordinance Program should be the first option for the city’s affordable housing needs because it mixes housing options throughout different developments. The next choice would be the Irvine Community Land Trust because of its ability to oversee and monitor affordable housing and preserve it for future generation. The third option would be The Employer-Assisted Housing (EAH) program because it give the employers some responsibility for the employees they attract to the city. The Low Income Housing Tax Credit (LIHTC) would be the next choice, because of its track record in Colorado and the HOME Investment Partnerships Program would be the final option, although it provides for low-income earners it isn’t as effective
The American dream was owning a house with a white picket fence. Now this dream is impossible. Individuals and families find it more difficult to find a decent home to rent in a suitable living area. According to Huffington Post, the hourly wage needed to afford a two bedroom apartment in California is at least $26 an hour. This is more than triple the minimum wage. Eviction, relocation, and inflation are the common keywords that associate with affordable housing. I 'm hoping to persuade you to support affordable housing for all. Today, I will be discussing, one, inflation of the housing market that needs to decrease, two, eviction from homes, three having to move to communities far from their work site.
Lastly, housing first is an approach that emphasizes stable, permanent housing as a primary strategy for ending homelessness. ( “Housing First”, n.d.) An evaluation of this strategy in San Francisco found that the number of people living on the streets dropped by 41 percent in three years. More than 1,000 units of "permanent supportive housing" were established, and, of those who moved into such units, 95 percent remained housed. (Chamard, 2010)
Gentrification is a highly important topic that has not only been occurring all over the United States, but especially closer than we may have thought. San Francisco is home to hundreds of thousands of people who have been a part of how amazing this city has become. San Francisco is one of the most visited places in the world with many of its famous landmarks, endless opportunities not only for daytime fun but also has an amazing nightlife that people cannot get enough of. People come for a great time and could not be done without the help of the people who have grown up to experience and love this city for what it truly is. The cost of living in such an important city has definitely had its affect of lower income San Francisco residents. For decades we have seen changes occurring in parts of San Francisco where minorities live. We have seen this in Chinatown, SOMA, Fillmore district, and especially the Mission district.
Alejandrino, Simon V. Gentrification in San Francisco's Mission District: Indicators and Policy Recommendations. University of California at Berkeley, 2000.
In fact, Rent controls may actually exacerbate the problem as landlords are less likely to rent out accommodation at the lower prices. Furthermore, overall investment in property may decrease as potential landlords may be put off listing their property because the financial gain does not justify it. Moreover, private investment in building new homes and apartments could decrease for the same reason. A second issues with rent controls is that they push up demand for the property which is affected by the laws. People who may not have ordinarily looked to rent will be attracted by the cheaper prices thus increasing competition. This has been the case in Stockholm, Sweden where the demand for regulated housing far outstrips supply. For example, over 500,000 people have applied for accommodation resulting in a huge waiting list for rental property. It can also be argued that rent controls decrease the quality of accommodation in the market, this happens because landlords have little incentive to invest in their property. This raises moral issues because whilst families may have access to accommodation, the standard may be below what may be seen as
Nevertheless, the standard has been reduced to no more than 40% until recently. Such dramatic change of the figure has made the goal become ambiguous. Practically, the government has tried many methods in dealing with the housing problem. Housing code enforcement is a method that tries to regulate minimal conditions for rental housing. However, this method does not seem to work because it brings additional costs to the tenant. On the other hand, the government tries to help people become homeowner by benefits in kind, such as imposing tax exemption on first home down payment and low interest rate on mortgages. However, the method does not really aim at helping the poor. Moreover, the government tries to increase the supply of housing by building new shelters and buying existing apartments. Yet, none of these work efficiently. The reason that building new shelters does not work is because most of these new housing projects are expensive and time consuming.