Housing Needs in Modesto, Stanislaus County

For decades, towns all across the state of California have been experiencing a massive shortage in affordable housing, and the city of Modesto is no exception.

 

An August 2018 article from the Modesto Bee reported that Stanislaus County is in need of around 30,000 rental options for lower-income households. Currently, there are only 10,000 that are considered affordable for very low and extremely low-income families in the county. At the median rate of $1,350 per month for a two-bedroom apartment, renters would need to earn $27 per hour to be able to afford one comfortably. Considering the current minimum wage is $11 an hour in California, this makes the median rental properties in the county unattainable for many families.

To be considered “affordable” a home is often described as costing less than 30% of a household’s total income. For many Californians, as much as 58% of their income is spent on housing, leaving less than half for other expenses, like food, clothes, and other necessities.

Fortunately, however, there are affordable housing nonprofits and coalitions making strides in bringing more affordable homes to Stanislaus. Additionally, there is a great deal of cooperation among many different groups, including developers, local government, lenders, and more who are all working to ensure affordable housing is within reach.

 

With the Focus on Prevention initiative in place, as well, ten sectors of the community are coming together specifically in hopes of intervening and successfully preventing homelessness and other issues throughout the county.

Avena Bella and Archway Commons are two properties that EAH Housing owns and manages in Stanislaus County. Other communities can be found on the EAH Housing website.

Sustainability and Green Practices

The national loss of affordable housing was not and still is not an issue that will be solved any time soon, so EAH Housing is striving to ensure that its communities not only continue to grow and prosper, but is setting them up to do so for years to come. A large part of this is attributed to adopting green energy practices.

EAH Housing is working to incorporate more environmentally-friendly practices in its buildings. Already, seven of its properties are LEED (Leadership in Energy and Environmental Design) Certified, or are seeking LEED certification. Together, along with another 120 organizations, EAH Housing has adopted the White House Better Buildings Challenge, retrofitting 40% of properties and auditing 100% of them.

Already, these adjustments in properties are making a noticeable difference in the environment and CO2 emissions by consuming a quarter less energy and generating more than 30% lower greenhouse gas emissions. Not only are these changes improving the air quality both outside and inside for residents, but by using renewable energy, it is possible to save energy while lowering operating costs.

Most recently, EAH was able to renovate two low-income senior housing committees, Mackey Terrace (Novato, California) and Walnut Place (Pt. Reyes Station, California). Not only were these communities designed with seniors in mind, but they were also retrofitted with Energy Star appliances and LED lighting. EAH also carefully installed green features including low-flow water fixtures, solar photovoltaic (PV) panels, high efficiency water heaters, and drought-tolerant landscaping, to name a few.

It is extremely exciting to take part in these improvements as the world becomes more familiar with alternative energy resources, and they show how even small adjustments can make a huge impact on both residents’ lives and the environment on a whole. EAH Housing is truly leading the way in showing that homes can be affordable and friendly to the environment with each community it builds.

Proposition 10

This November marks a significant vote for California residents preparing to consider proposals on a wide variety of topics. Least of all, housing is slated to account for a great part of the discussion.

Propositions 1 and 2 are on the ballot, both of which work together to combat California’s housing crisis and homelessness. Proposition 1, also known as the Veterans and Affordable Housing Bond Act of 2018, would give the state the authority to put $4 billion towards the construction and preservation of affordable housing, as veterans are a large segment of the demographic of people suffering from or at imminent risk of homelessness.

Proposition 2, also known as the No Place Like Home initiative, would act in a similar fashion. The $2 billion allocated for Proposition 2 will be specifically for people experiencing mental illness who are homeless or at risk of becoming so.

Proposition 10, as well, has renters anticipating what the impact will be, as the proposition includes repealing the 1995 Costa-Hawkins Act. As it stands, the Costa-Hawkins act limits how California cities can utilize rent-control restrictions. If Proposition 10 passes, local jurisdictions would have more of an ability to implement localized rent measures, potentially including newer properties constructed after Costa-Hawkins was initially passed.

If passed, California Civil Code will be modified to reflect this change: “A city, county, or city and county shall have the authority to adopt a local charter provision, ordinance or regulation that governs a landlord’s right to establish and increase rental rates on a dwelling or housing unit.”

For more information on the housing initiatives on tomorrow’s ballot, check out the official voter information guide, and educate yourself before Election Day arrives on November 6, 2018.

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Looking Back: EAH Housing Through the Years

EAH Housing has come a long way in its fifty years serving the western United States.

Founded in 1968, EAH Housing was originally formed by a group of ordinary citizens seeking to better the lives of low-income families in Marin County, California. The Ecumenical Association for Housing, as it was called, came together as a response to Dr. Martin Luther King, Jr.’s assassination.

When twenty-four local organizations organized themselves later that year to establish the first office, EAH was born. Volunteers took to various roles and flourished. Whether they were donating land to develop affordable housing communities or simply welcoming low-income families by advocating that they turn their own neighborhoods into affordable housing, each job played an important role in expanding EAH Housing and its influence in the community.

1971 saw the the unveiling of Pilgrim Park, the inaugural affordable housing community developed by EAH in conjunction with a local church. Pilgrim Park was the first affordable housing community in its county, funded by federal programs, that was not government-owned public housing.

The efforts of EAH were so successful that it soon spread to other counties and across two states: California and Hawai`i, serving more than fifty municipalities today. Residents ages one to ninety-eight have all found homes with EAH Housing, an accomplishment that speaks to its level of dedication and evolution as a nonprofit. What started out as a means for social justice has since bloomed into a comprehensive organization that seeks to increase public engagement and cement progress in housing low-income seniors, families, veterans and the disabled.

Kalani Gardens and Kukui Tower were two of the first affordable housing communities EAH acquired in Hawai`i, preserving 499 rental housing apartments for low-income families in the most underserved state in the country for affordable housing. These two communities were only the start of many more to come, as EAH Housing continues to transform and create communities along the Pacific Ocean.

In recent decades, EAH has been excited to make strong progress in the introduction of renewable energy resources into the communities it owns so that they continue to thrive, such as Crescent Park, Villages of Moa`e Ku and the upcoming Estrella Vista. The technology initiative to bridge the digital divide and the resident services StayWell! initiative are also two exciting new EAH initiatives that ensure for residents that a roof is just the beginning.

As an organization, EAH Housing president and chief executive officer Mary Murtagh guides a staff of over 475 people and manages more than 100 properties with over $680 million in active development projects.

Each day, EAH continues to strive towards social justice through dedication and empathy as it serves California and Hawai`i citizens alike.

What Is Affordable Housing?

In simplest terms, affordable housing is generally defined as rental housing that does not overburden residents in relation to their income and expenses, including utilities; typically these apartments are rented below market rate. Funding mechanisms that finance affordable housing development with the goal to serve households making less than the area median income (AMI) often influence how low the rent levels are set.

The issue is so severe that currently nowhere in the United States can a family with only one full-time worker earning the minimum wage afford the local fair-market rent for a two-bedroom apartment. There are a number of programs across the country committed to addressing the issue of affordable housing scarcity. EAH Housing is one such nonprofit organization, working to provide housing for households in California and Hawaii, where the cost of living is especially high.

Affordable housing can refer to either owning or renting a home, depending on the program. While some organizations, such as Habitat for Humanity, help provide homeownership opportunities, EAH operates in high-cost housing markets to provide affordable rental apartments. EAH continuously works to build more affordable multifamily rental communities and preserve additional units that are kept affordable in perpetuity.

Rents set below market rate are made possible by government or private subsidy, bonds, set-asides and through local government policy to accommodate households that make less than the AMI for a given region. Each market area has varying costs of living and income levels, so the AMI is determined annually and by area. For example, the cost of living differs in rural parts of the Central Valley than in the middle of downtown Honolulu or downtown San Jose.

In the United States, a general rule of thumb is that housing costs should not take more than 30% of a household’s income so that the other 70% can be used for food, clothing, transportation, and other necessities. Levels above 30% indicate to the government that a household is “overburdened” and potentially eligible for affordable housing to assist with living costs.

Affordable housing can look very different from place to place, and is reflective of the needs of each community. The services that affordable housing provides extend beyond the physical structure of a housing unit — adding value and community, and creating a welcoming, livable space for households who otherwise would not have the same opportunity.