County Report Cites Housing Affordability Crisis

Finding an affordable place to live will become nearly impossible in the next ten years unless state and local governments create nearly 100,000 homes, apartments, and Accessory Dwelling Units (ADU), according to a county housing report. 

The 114-page report released last week by the Alameda County Housing and Community Development Department is a culmination of housing reports filed by 14 cities and towns in the county. The main finding is that the county needs 92,833 new affordable housing units for low-income households and 2,200 new shelter beds for the homeless. Experts say the county needs to generate up to $27 billion in local investment to meet that goal. 

“Affordable housing is getting harder and harder to find, particularly for our lower-income residents,” County Housing Director Michelle Starratt told the Forum. “Homelessness is historically high, production of affordable housing has lagged behind need for decades, and more than a third of all households pay more than 30 percent of their income towards the cost of housing. The vast majority of the households impacted are of lower income, and, with rents increasing faster than incomes, more and more of these households will lose housing or be displaced.”

Starratt noted that the public is now invited to provide feedback and submit comments for six weeks. The 45-day comment period is expected to culminate with a community housing summit in Castro Valley on September 17, sponsored and likely moderated by County Supervisor Nate Miley to review his district's needs and discuss options.

Recommendations in the report for funding these affordable housing needs include general obligation bonds such as Measure A-1, which voters passed in 2016. Inclusionary housing fees are also suggested. Contra Consta and Marin County have established similar measures, but Alameda County would require new planning codes county-wide; Alameda County could also impost impact--or linkage--fees. While it would boost unincorporated areas like Castro Valley and the Eden Area, it would be difficult to pass, considering it would impose costs on new commercial development.

According to the report, another source of income would be an enhanced infrastructure financing district (EIFD) plan. While it would not require voter approval, the county must decide the type of new development to be subject to possible EIFD annexation. Of course, there is the traditional Sales Tax Ballot measure. These taxes add percentages to general purchases and could generate about $150 million annually. This tactic would be in addition to the current Measure W, which county voters passed in 2020.  

Other novel revenue ideas include a residential vacancy tax on properties that have been vacant for more than 182 days. Finally, there is a Transient Occupancy Tax that requires voter approval to generate additional funds for affordable housing.

To access the report, visit the website at https://www.achcd.org/reports.

And to leave your comment, access this form: https://forms.office.com/g/Dp03cBBRPT.