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Transit and the
Bay Area’s Housing
Shortage
Rail~Volution
Dallas, Texas
October 26, 2015
Steve Heminger, Executive Director
How Hot Is the Bay Area Economy?
2
$2,864
$1,344
$1,213
$955
$526
Source: Franchise Tax Board, 2013
3
Home sale Prices: National Context
Source: Zillow (1996-2014); inflation-adjusted to November 2014 dollars
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
January1,1998
January1,1999
January1,2000
January1,2001
January1,2002
January1,2003
January1,2004
January1,2005
January1,2006
January1,2007
January1,2008
January1,2009
January1,2010
January1,2011
January1,2012
January1,2013
January1,2014
AdjustedforinflationMedianHomePrice
(In1000ofdollars)
Bay Area
Los Angeles
New York
Washington DC
Miami
Philadelphia
Chicago
Atlanta
MEDIAN HOME PRICES BY METRO AREA
Bay Area Housing Shortage –
A 2+ Decade Crisis
 Bay Area has underbuilt housing for low and moderate
income households since the 1980s
 Since 1990 – just 35% of the Region’s Moderate Income Housing and
only 40% Low Income Housing Need has been built
 Limited supply of Greenfield Sites
 State eliminated Redevelopment and Affordable Housing
Funding
 Rapid Job Growth, Technology Boom and Foreign
Investment
 Bay Area is the Nation’s most expensive housing market
4
5
Urbanized land
PDAs
■ < 5% of region’s land
■ 80% of new homes
■ 66% of new jobs
Non-urbanized land
 Priority Development Areas
 Locally-nominated areas for development
 Frequent transit service
 Nearly 200 PDAs in
the region
 No change to local authority over
land use decisions
Build on an
Existing Framework
PDA Planning Program
 Comprehensive neighborhood-level
planning
 Links local community aspirations
and regional objectives
 Include programmatic EIRs to
simplify development process
 51 projects funded to-date
 60,000 + housing units
 103,000 + new jobs
 26 million sq. ft. commercial development
6
OneBayArea Grant (OBAG)
Program
Rewards jurisdictions that
produce housing near transit
and create healthy communities
 Eligible Projects
 Streetscapes
 Bicycle and pedestrians
 Safe routes to schools
 Local streets and roads
OBAG County Distribution Formula
8
* Draft RHNA 2014-2022
** Housing Production Report 1999-2006, ABAG
OBAG Requirements
 Flexibility in distribution, but OBAG requires:
 Counties
 70% of funds to be spent in PDAs
 Development of PDA Investment
and Growth Strategies
 Cities
 Housing element adoption
 Complete streets resolution
or consistency with general
plan
9
Transit Oriented Affordable
Housing Program (TOAH)
 $90 million revolving
Loan Fund
 Projects located in PDAs,
transit accessible
 Loan products for affordable
housing, mixed income &
mixed-use projects
10
Architect's rendering of the Eddy + Taylor Family Housing
project slated for construction in San Francisco
Historical Trend for Housing
Growth in the Bay Area
11Source: Source: Construction Industry Research Board (1967-2010); California Homebuilding Foundation (2011-2013)

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RV 2015: America's Affordable Housing Crisis: The Role of Transit by Steve Heminger

  • 1. Transit and the Bay Area’s Housing Shortage Rail~Volution Dallas, Texas October 26, 2015 Steve Heminger, Executive Director
  • 2. How Hot Is the Bay Area Economy? 2 $2,864 $1,344 $1,213 $955 $526 Source: Franchise Tax Board, 2013
  • 3. 3 Home sale Prices: National Context Source: Zillow (1996-2014); inflation-adjusted to November 2014 dollars $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 January1,1998 January1,1999 January1,2000 January1,2001 January1,2002 January1,2003 January1,2004 January1,2005 January1,2006 January1,2007 January1,2008 January1,2009 January1,2010 January1,2011 January1,2012 January1,2013 January1,2014 AdjustedforinflationMedianHomePrice (In1000ofdollars) Bay Area Los Angeles New York Washington DC Miami Philadelphia Chicago Atlanta MEDIAN HOME PRICES BY METRO AREA
  • 4. Bay Area Housing Shortage – A 2+ Decade Crisis  Bay Area has underbuilt housing for low and moderate income households since the 1980s  Since 1990 – just 35% of the Region’s Moderate Income Housing and only 40% Low Income Housing Need has been built  Limited supply of Greenfield Sites  State eliminated Redevelopment and Affordable Housing Funding  Rapid Job Growth, Technology Boom and Foreign Investment  Bay Area is the Nation’s most expensive housing market 4
  • 5. 5 Urbanized land PDAs ■ < 5% of region’s land ■ 80% of new homes ■ 66% of new jobs Non-urbanized land  Priority Development Areas  Locally-nominated areas for development  Frequent transit service  Nearly 200 PDAs in the region  No change to local authority over land use decisions Build on an Existing Framework
  • 6. PDA Planning Program  Comprehensive neighborhood-level planning  Links local community aspirations and regional objectives  Include programmatic EIRs to simplify development process  51 projects funded to-date  60,000 + housing units  103,000 + new jobs  26 million sq. ft. commercial development 6
  • 7. OneBayArea Grant (OBAG) Program Rewards jurisdictions that produce housing near transit and create healthy communities  Eligible Projects  Streetscapes  Bicycle and pedestrians  Safe routes to schools  Local streets and roads
  • 8. OBAG County Distribution Formula 8 * Draft RHNA 2014-2022 ** Housing Production Report 1999-2006, ABAG
  • 9. OBAG Requirements  Flexibility in distribution, but OBAG requires:  Counties  70% of funds to be spent in PDAs  Development of PDA Investment and Growth Strategies  Cities  Housing element adoption  Complete streets resolution or consistency with general plan 9
  • 10. Transit Oriented Affordable Housing Program (TOAH)  $90 million revolving Loan Fund  Projects located in PDAs, transit accessible  Loan products for affordable housing, mixed income & mixed-use projects 10 Architect's rendering of the Eddy + Taylor Family Housing project slated for construction in San Francisco
  • 11. Historical Trend for Housing Growth in the Bay Area 11Source: Source: Construction Industry Research Board (1967-2010); California Homebuilding Foundation (2011-2013)