Under the affordable housing provisions of the Gateway Area Plan, buildings over 14 units are required to have 14% or 16% of the apartments be affordable. But the rent amounts that are proposed wind up being higher than what renters are paying now. How can this be considered as affordable?
Summary
Arcata’s Housing Element called for 20% of the apartments built in the Gateway area to be at “Low-Income” levels. The Gateway plan, for buildings bigger than 15 units, calls for 10% of the apartments built to be at “Median Income” levels, plus 6% to be built at “Low-Income” levels. (Or instead of those 6% low-income units, it can be 4% very-low income.)
For the Housing Element rents versus the Gateway Plan rents, in real-dollar terms, what does this mean to the people who are paying the rent?
| Household size: | 1 | 2 | 3 | 4 | 5 | 6 |
| Apartment size: | Studio | 1-bedroom | 2-bedroom | 3-bedroom | 4-bedroom | ?? |
| For the averaged blend — 6% low and 10% median, | ||||||
| you would pay: | $195 | $225 | $250 | $280 | $300 | $320 |
| more per month | more per month | more per month | more per month | more per month | more per month | |
| For 10% of the units, | ||||||
| you would pay: | $310 | $355 | $400 | $445 | $480 | $515 |
| more per month | more per month | more per month | more per month | more per month | more per month | |
(Rents shown are based on a water/sewer/gas/electric allowance of $120 per month. Figures are rounded to the nearest $5.)
Background
Arcata’s current Housing Element was adopted in December 2019 and approved by the California Department of Housing and Community a month later. It is part of the General Plan 2045, as one “element” or chapter.
From the Housing Element, page 86, Appendix A, describing the Gateway area.
Ultimately, this is estimated to generate between 2,500 and 5,000 new units of housing, of which 20 percent will be deed restricted for residents with income below 80 percent of the area median income.
We can note that the Housing Element does not say “with an attempt to provide 20% deed restricted for 80% area median income households.” Or “with a goal of providing 20%….”
No, it says clearly and plainly: “…of which 20 percent will be deed restricted…” and based on 80% of Area Median Income. This is what the people wrote, and this is what the State approved.
The “Inclusionary Zoning” percentages now in the draft Gateway Area Plan
The current percentages in the Gateway Plan are:
| What the Housing Element calls for: | ||
| 20% of the housing built | At Low-income level: 80% of Area Median Income | |
| What’s in the Gateway Area Plan: | ||
| Either: 4% of the housing built | At Very-Low level: 50% of Area Median Income | |
| Or: 6% of the housing built | At Low-income level: 80% of Area Median Income | |
| Plus: 10% of the housing built | At Median Income level: 100% of Area Median Income | |
The Math
For the apartment buildings constructed in the Gateway Area, for buildings of 15 units and larger, 10% of the number of apartments have to have a rent that is based on “Area Median Income” level or lower.
Arcata’s Housing Element specified that the 20% of the apartments would be at a rent based on 80% of Area Median Income.
How much of a difference does this make?
| Household size: | 1 | 2 | 3 | 4 | 5 | 6 | |
| Apartment size: | Studio | 1-bedroom | 2-bedroom | 3-bedroom | 4-bedroom | ?? | |
| What the Housing Element calls for | |||||||
| That 20% of the units built be rented for these amounts or less: | |||||||
| $1,035 | $1,200 | $1,365 | $1,530 | $1,660 | $1,795 | ||
| What’s in the Gateway Area Plan | |||||||
| That either 4% of the units be very-low, or 6% of the units be low-income. We’ll use the low-income numbers. | |||||||
| That 6% of the units built be rented for these amounts or less: | |||||||
| $1,035 | $1,200 | $1,365 | $1,530 | $1,660 | $1,795 | ||
| That 10% of the units built be rented for these amounts or less: | |||||||
| $1,345 | $1,555 | $1,765 | $1,975 | $2,140 | $2,310 | ||
| Note: Based on 2023/2024 rents, $1,345 for a studio or $1,555 for a 1-bedroom can not considered affordable housing — by the standards of the people who are paying the rent. And yet the Gateway Plan allows $1,345 for a studio and $1,555 for a 1-bedroom, and still have it fall into the category of “affordable” and be part of the 10% Inclusionary Zoning. | |||||||
| An averaged blend of 6% low-income and 10% median income: | |||||||
| $1,230 | $1,425 | $1,615 | $1,810 | $1,960 | $2,115 | ||
| For studio, 1-bedroom, and 2-bedroom apartments, these figures are higher than what renters currently pay (2023/2024 prices). | |||||||
| And how much more rent would you be paying? | |||||||
| The Housing Element rents versus the Gateway Plan rents |
|||||||
| For the averaged blend | $195 | $225 | $250 | $280 | $300 | $320 | |
| more per month | more per month | more per month | more per month | more per month | more per month | ||
| For 10% of the units | $310 | $355 | $400 | $445 | $480 | $515 | |
| more per month | more per month | more per month | more per month | more per month | more per month | ||
| Rents shown are based on a water/sewer/gas/electric allowance of $120 per month. Figures are rounded to the nearest $5. | |||||||