One of many articles about the Affordable Housing issue.
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What is shown below is the letter sent by Fred Weis to the Arcata Planning Commissioners for their February 28, 2023, meeting. To this date (May 24, 2023) there has been no response to this letter. [Updated: No response as of August 5, 2023.] 

Before something can be discussed, it must be defined. This is to ensure that we’re all talking about the same thing. In the case of “Affordable Housing” there are at least four known definitions — and possibly there are a few more too.  (This conversation is not including housing for the homeless, permanent supportive housing, housing developmentally disabled housing, and many other housing needs important for our community.)

On the one side of the spectrum are homes that are government subsidized, for low- and very low-income persons, couples, and families. While the existence of this form of housing is absolutely crucial, it does not fill the needs for workforce persons.

The City’s FAQ page for the Gateway Area Plan has this:

“The City’s Housing Element goes into greater detail, but in short, the City must plan for housing that is affordable to all economic segments of its population. Housing affordability categories are based on Area Median Income (AMI), and the City is responsible for providing sufficient land to accommodate housing for all income levels.”

And from the Draft Gateway Area Plan:

The Gateway Area provides a substantial solution to the City’s unmet and future housing needs, with thousands of housing units that are environmentally sustainable and affordable to people in all income ranges. Residents live within a broad range of housing densities and types, including rental and owner‐occupied options, in a vibrant, walkable, near‐downtown neighborhood.

It is my opinion that the Arcata is making a show of planning for housing that is affordable. But in terms of the practicalities of what will actually get built, the City is not doing what it takes to make the creation of affordable housing available to the people who live here.

Here is the February 28, 2023, letter to the Planning Commissioners.

What is Affordable Housing?

At the Planning Commission study session on February 11, 2023, David Loya said “We’re going to have an agenda item on affordable housing.” [Then] Vice-Chair Scott Davies said “I think I think that is the piece where the rubber meets the road for the things we want as a Planning Commission and the things that everyone in the audience thinks they want. Because I think there’s a disconnect between our collective stated goals about building affordable housing.”

One concern at this time, with the discussions about Community Benefits – both options and requirements — is to what extent these may add to the cost of the project, and have the effect of increasing the rents.

This document can serve as starting point — to get your input and continue this conversation.

Definitions of the word “Affordable”

First, we need to define what we are talking about.

The word has been used to mean four different things by Staff, Commissioners, and speakers at the Planning Commission and Council level. I think it’s a complete misrepresentation to call an apartment “affordable” – when what is meant is that it is less expensive than other apartments. That does not make it actually affordable.

To get the conversation going, here are four definitions (at least four) of the word “affordable” – as I’ve heard the word used by Staff and the Planning Commissioners. The Commissioners may want to modify or add to this list.

1. Deed-restricted affordable.
   There are strict guidelines on this. Often set at 50% (very low) or 60% of median income levels. An example is the Sorrel Place apartments on 7th Street.
2. Affordable by federal guidelines.
   Rent + utilities not more than 30% of gross (pre-tax) income.

   We can also call this “Workforce Affordable” or “Affordable for the Missing Middle.” We can base this level of affordability on the notion that someone with a job who is earning $20 or $25 an hour should be able to be able to find and have housing.

   As an example, $25 per hour is $4325 per month and $52,000 per year, pre-tax. Taking 30% of that is $1270 for rent and utilities, for one person. That $1270 might translate to $1150 for rent and $120 for PG&E (if the landlord pays for water) or $1050 for rent (if the landlord does not). (We can note that on an after-tax basis, this is 44% of the take-home salary.)  At a $20 per hour salary, the 30% guideline becomes $1015 for rent and utilities – or about $900 for rent.

   A medical administrative assistant, or a vocational nurse (not a registered nurse), might earn $19-$25 per hour. So while there are plenty of people who make less than $25/hour, it can be a starting point for the discussion.

   In conjunction with this is using the HUD guideline of 80% of median income as a basis for that 30% figure. The State has set the 2022 income limits for Humboldt County of “Low Income 80%” as:

   1 person in the household:   $43,650       = $1,090 for rent and utilities
   2 persons in the household:  $49,850       = $1,250 for rent and utilities
   3 persons in the household:   $56,100      = $1,400 for rent and utilities
   4 persons in the household:   $62,300      = $1,560 for rent and utilities

If the landlord is not paying for water/sewage, the minimum water bill in Arcata is now $88. A “reasonable” gas/electric bill might be $100/month on a year-average basis.

3. “Market Price” affordable.
   This, of course, is somewhat subjective, but can be agreed upon within a range based on direct and anecdotal experience. What is considered as “affordable” might be at the lower end of the market rate. As an example, a 400 sq.ft. one-bedroom apartment, in today’s climate, might be $1250 plus PG&E, or about $1350-$1400 total. So this is currently a bit higher than the 30% guideline. This figure can be used as a point of reference, to gauge a rent that is higher than that point. Example: A 1-bedroom apartment at a rental price of $1500 would not be considered reasonably affordable by a typical working person. [Estimated costs as of February-March, 2023.]

4. “Affordable by Design.”
   To me, this is a terrible phrase and should be removed from our use entirely. To say that something is “affordable by design” — because it is smaller than an apartment that is larger, and therefore the larger one would cost more and the smaller one would cost less — is a misleading argument. That it is “less expensive” than if it were larger does not impart actual affordability. Also, what we are talking about is the cost to the developer being lower. There is no guarantee that the developer will pass that lower cost on to the renter. We can agree that developers are in business to earn a profit, not to be nice necessarily.

   There are two differing definitions of “affordable by design.” One, as has been used by David Loya and in the draft Gateway Plan, is that a smaller unit, by definition, costs less to construct than a larger unit.

   But also there is this: “Affordable by Design” occurs when the developer uses innovative design or innovative construction techniques – and that by using that technique a lower cost is achieved. Examples would be modular factory-built kitchens or bathrooms, or lower-cost materials, or quicker construction methods (stacked modular units).

   In my view, true affordable by design (by the first definition) comes from shared housing. A 3- or 4-bedroom, 1 or 2 bath is both 50-60% of the cost to build and 50-60% cost for rent and utilities, on a per-person basis when compared with one-bedroom or studio housing.

What does the City of Arcata mean by “Affordable” ?

From the City’s SIRP Frequently Asked Questions page, in the SIRP section. (Highlighting added.)

Q: WHAT DOES THE CITY MEAN WHEN IT SAYS AFFORDABLE HOUSING?

A: Affordable housing means one of three things depending on the context. We use the term

1) in relation to what is affordable at the household level,
2) to describe state mandated policy objectives, and
3) within the context of our affordable housing regulatory programs.

Affordable housing at the household level means the household is not overpaying for housing costs. Generally, housing is considered affordable if the household is paying 30% or less of its income towards rent or less than 38% of its income towards a mortgage.

From a policy perspective, affordability is defined at the population level. The City’s Housing Element goes into greater detail, but in short, the City must plan for housing that is affordable to all economic segments of its population. Housing affordability categories are based on Area Median Income (AMI), and the City is responsible for providing sufficient land to accommodate housing for all income levels.

Commissioners:

Is what is stated here being done?

Is the City planning for housing that is affordable to all economic segments of our population?

Is the City providing sufficient land to accommodate housing for all income levels?

See on the City of Arcata’s website:

FREQUENTLY ASKED QUESTIONS FOR THE ARCATA GATEWAY AREA PLAN https://www.cityofarcata.org/964/Frequently-Asked-Questions
About three-quarters of the way down through the FAQs is:
Q: WHAT DOES THE CITY MEAN WHEN IT SAYS AFFORDABLE HOUSING?