WORKFORCE/AFFORDABLE HOUSING

The Situation:  Lack of access to affordable housing adversely affects recruitment and retention of high quality employees in the Santa Clarita Valley.  This need is perennially identified by local businessmen as a critical factor, making the top three items of concern among business owners responding to surveys conducted by the Valley Industrial Association since 1999… and little or no progress has occurred.  Not only are businesses affected, but so are agencies that provide for the health, security, well being and safety, because most entry to mid-level health care professionals, policemen, teachers, and fire fighters cannot qualify for home loans at market value.

The Problem:  Although the situation is nearly universally acknowledged, there is no point of advocacy to effect a universal solution, partly due to the many agencies involved, and partly due to public anxiety based on the misperception that affordable housing units will devalue the neighborhoods in which they are established.

The Proposed Solution:  The Valley Industrial Association (VIA) is establishing a Workforce Housing Task Force with the aim of providing a forum through which many disparate elements may share creative ways to alleviate the shortage of affordable workforce housing.  The assumption is that the establishment of an equitable program of burden sharing and profit sharing among stakeholders and effective education of a skeptical public will bring the proper focus and resolution to this socio-economic issue.  The stakeholders and some of the factors bearing on their participation follow:

    -  Businesses

        -- ID potential candidates

        -- Consider providing subsidized funding and/or being mortgage guarantor

    -  Government

        -- Provide funding (Feds-Community dev block Grants; State-Home Investment

            Partnership Act Funds; Local-Redevelopment Agency Funds)

        -- Implement legislative changes to make affordable housing achievable

        -- Waive housing density limits (local governments) to benefit affordable units 

    -  Land Developers

        -- Identify low cost lots available

        -- Integrate projects effectively into communities

        -- Reserve a portion of land near public transit for affordable units

    -  Builders

        -- Help design cost-cutting elements into housing

        -- Identify “in-fill” lots for build-out

        -- Consider modest amount of “voluntary inclusionary housing”

    -  Mortgage Lenders

        -- Offer creative finance packages

        -- Accept businesses and others as “co-owners”

    -  Financiers

        -- View affordable housing projects as lucrative investments

        -- Gain social benefits by earmarking monies for affordable housing

    -  Charitable Foundations

        -- Earmark monies for affordable housing

            [Note:  VIA proposes to coordinate efforts with homeless housing advocates, 

             senior housing advocates, and others who might compete with workforce housing

             funds for their projects]

        -- Agree to fund long term layers of mortgages beyond standard seconds

    -  Affordable Housing Candidates

        -- Commit to proper care of assigned units

        -- Commit to financial counseling courses           

    -  The General Public

        -- Understand the affordable housing issue

        -- Provide support for bond funding and other measure   

        -- Understand that proper funding of this program has public benefits, such as

            alleviating the need for welfare assistance, holding broken families together,

            reducing transportation infrastructure needs, and aiding the environment

The Approach: VIA will convene periodic meetings of the stakeholders to discuss the possible contributions above, and, more importantly, to brainstorm creative approaches to

this matter.  Additionally, the task group will have a public relations element to convey to the public the relevant issues of the topic and the progress of the group. While the initial focus will be on the needs of the Santa Clarita Valley, VIA appreciates that this matter has regional ramifications and will reach out to adjacent areas in the region for assistance.

Toward that end, VIA has planned a Regional Executive Summit of business leaders, government officials, and other interested parties from the counties of Los Angeles, Kern, and Ventura to discuss the regional aspects of affordable housing, as well as the transportation and workforce training needs.  Additionally, VIA has a close working relationship with the Cabrillo Economic Development Corporation, which establishes and operates successful workforce housing projects in Ventura County.