The city of Anaheim plans to create affordable workforce housing by lowering rents on more than 1,000 apartments in the area.
The project will convert three apartment complexes into reasonably priced units for working class individuals.
Anaheim City Council member Trevor O’Neil told Inside the Issues rent has stabilized since the pandemic began, but an average two-bedroom apartment still costs around $1700 per month in the area.
While there are resources available for those on the lower-end of the economic spectrum throughout Anaheim, he explains many residents weren’t able to meet these qualifications.
“What we were trying to appeal with the projects that we had approved was what we refer to as the missing middle, those individuals who might be making too much money to qualify for some sort of state or federal housing assistance, but were still struggling to pay the rent along with all of their other bills,” O’Neil said.
The city’s new affordable housing project expands housing assistance to middle-income tenants. He says Anaheim residents making between 80 and 120% of the area’s median income will qualify for the reduced rent.
“It’s people like teachers, first responders, nurses, entry-level police and firefighters, managerial service workers,” O’Neil added. “It’s a broad spectrum of folks who you would not typically consider when you think of those who would be qualifying for low-income housing.”
Anaheim is the first city in California to create this type of affordable workforce housing. The new program was created last summer when the city teamed up with the California Statewide Community Development Authority.
O’Neil explains the state agency issued Anaheim tax exempt bonds for buildings reserved for workforce housing, so the city is not subject to property taxes on these apartment complexes.
“The property tax that would otherwise have to be paid by somebody who owns the building essentially provides the delta to be able to reduce the rents in the apartments and have them at this subsidized amount,” O’Neil added.
While he doesn’t yet know the specific rent amounts of these affordable workforce apartments, he says it will definitely be less than the current market rate.
O’Neil also says the city will essentially own the buildings after a 15-year period. At that point, Anaheim plans to refinance the buildings and use the money to make up for lost property tax revenue.
“We’re looking at a short term tax exemption and a long term financial gain, all the while creating affordable housing in the process without cost to taxpayers,” O’Neil said. “This solution that we found is really a unique way to provide the necessary affordable housing, which enables us to do our part without punishing developers and without burdening taxpayers.”
The Councilman notes Anaheim’s affordability workforce project is certainly a step in the right direction for the city, but says the root of California’s housing crisis is ultimately an issue of supply and demand that must continue to be addressed.
“We need to do everything we can to increase the supply of housing at all levels, not just affordable housing, but throughout the spectrum, up and down the ladder, and the best way to really figure out what those challenges are is to have those stakeholders involved and to sit down and listen to them and craft solutions together,” O’Neil said.
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