Wednesday, February 6, 2019

A Concrete Outcome from HB 4006: Lake Oswego Proposes Action to Reduce Severe Rent Burdens and Increase Housing Choice for HUD Voucher Households.


Some Background
Last December the City of Lake Oswego held a community event to discuss ways to reduce severe rent burdens as required by HB 4006, passed by the 2018 Oregon legislature. I attended as a Lake Oswego resident, as did the Mayor and several members of the City Council.  

In the discussion at the meeting I noted that 45 years after the HUD voucher program began, only about 25 of 1,500 HUD voucher holders in Clackamas County were located in Lake Oswego. (The 25 HUD voucher count for Lake Oswego is from latest HUD Picture of Subsidized Housing data). 

Updated ACS 2017 severe cost burden data (Table B25070) shows that 1,232 Lake Oswego renters had severe cost burdens; that's 11.9% of all Clackamas County severe cost burdened renters (10,389). 

If Lake Oswego had 11.9% of 1,500 vouchers in Clackamas county it would have 178 vouchers, more than 7X the current vouchers and an INCREASE of 153 vouchers. 

To address this imbalance I recommended, in a document HERE, that the city request that the Clackamas County housing authority adopt HUD maximum small area rents to increase payment standards and housing choice for HUD voucher holders in two Lake Oswego ZIP Code (97034 and 97035).  [In my December document I pointed out that if Lake Oswego vouchers were at same rate as the rest of Clackamas county, Lake Oswego vouchers would increase to 195, an even larger number than the voucher count that would result from applying Lake Oswego's share of severe cost burdened renters}. 

[The HUD Notice HERE explains that housing authorities may adopt small area rents without any required HUD approval; the Guidebook HERE goes into more detail, including establishment of payment standards in Chapter 2 (PDF page 16)]. 

In my recommendation I noted that regardless of the maximum small area rents adopted, the Housing Authority would continue to limit actual voucher rents via their rent reasonableness process. 

And So, Last Night....
Last night the Lake Oswego City Council approved sending a letter to the Clackamas County Housing Authority asking for the adoption of small area rents for zip codes 97034 and 97035. The letter is HERE and says that in addition to reducing severe rent burdens higher payment standards will 
" .. help in meeting the low income housing needs identified in Lake Oswego’s Comprehensive Plan while allowing people to live closer to where they work, reducing traffic congestion."
I commend the Mayor, the City Council, and city staff for taking prompt action following the December severe rent burden meeting prompted by HB 4006. 

I hope the Clackamas County Housing Authority responds positively and takes action to increase Lake Oswego payment standards for zip codes 97034 and 97035 and takes other actions to improve mobility counseling and expand housing choice for voucher holders. 

I am also looking forward to learning about specific concrete actions taken by the other  cities that held public meetings as required by HB 4006 around the topic of severe rent burdens.

Originally created and posted on the Oregon Housing Blog.

Thursday, January 24, 2019

Legislative District Data: Oregon Renter Median Incomes in 2017 Were 50% of Home Owner Median Incomes.

Readers may recall that I recently posted updated 2017 renter severe cost burden data for all 30 Senate and 60 House member districts HERE

Today for all districts and members I am posting a 3 page PDF HERE (and embedded below) that shows:
  • Overall household median income. 
  • Home owner household income. 
  • Renter median household income
  • The district number, the member name, the party affiliation and whether the member sits on the House Human Services and Housing Committee or the new Senate Housing Committee. 
[Note: Page 1 displays Senate data, Pages 2-3 display House district data. All source data is from ACS 5 year table B25119]. 

I also include my calculation of how much lower renter median household income is than home owner median household income. 

Statewide renter median incomes are 50% below home owner median incomes; within districts renter median household incomes range from 31% below to 67% below home owner median incomes. 

In the Senate: District 4 had the lowest median renter household income at $28,240 while Senate District 17 had the highest at $54,417. 

In the House: District 56 had the lowest median renter income of $26,547 and House District 30 had the highest at $67,382.



Originally created and posted on the Oregon Housing Blog


Wednesday, January 23, 2019

1970-2017: The Depressing Decline in Black Home Ownership Rates in Oregon and City of Portland.

A recent story in the Oregonian about changes in minority home ownership in the Portland metro area and the City of Portland prompted me to take a longer term dive into historical 1970-2017 black home ownership data for the City of Portland and Oregon. The picture that emerges is depressing. 

The 2 page PDF HERE and embedded below has a graph and a table for Oregon and the City of Portland on black households by tenure and home ownership rates for 1970,1980,1990,2010, and 2017. 

The first page graph shows the declining rate of home ownership. 

The table on the second page shows detailed percentage and numerical changes in black homeowners and renters, and home ownership rates for two periods: 1970-2017 (17 years) and 2000-2017 (47 years). 

Observations:

City of Portland
  • In 1970 the black home ownership rate in the City of Portland was 46.9%; In 2017 the City of Portland rate was 28.4% That's a decline of 39.5% (18.5 "points").
  • In 47 years the City of Portland added a total of 757 black home owners, about 16 a year. 
  • During the same period the City added 6,236 black renter households. 
  • So, for every 100 black home owners added the City added 824 black renter households. (6,236/757*100= 824).
State of Oregon
  • In 1970 the statewide Oregon black home ownership rate was  44.7%; In 2017 it was 32.2%, a decline of 28% (12.5 "points").
  • In 47 years the state added a total of 4,868 black home owners, about 104 a year. 
  • During the same period the state added 13,246 black renter households. 
  • So, for every 100 black home owners added the state added 272 black renter households. (13,246/4,868*100= 272).
  • In 2010 and 2017 the statewide black home ownership rate was HIGHER than it was in the City of Portland. [2010 Oregon 32.9.%/City of Portland 32.4%; 2017 Oregon 32.2%/City of Portland 28.4%].



Data Sources: I used Census General Housing Characteristics reports for Oregon (1970,1980, and 1990) and American Fact Finder (for 2000,2010, and 2017 data).  

Originally created and posted on the Oregon Housing Blog



Tuesday, January 22, 2019

Hispanic Homeowners and Renter Changes in Oregon 2000-2017:Hispanic Home Ownership Rates Were Up In Most Places and In Some Places The Increase in Hispanic Home Owners Was Greater than Increase in Hispanic Renter Households.

In my prior post HERE I highlighted my recent rediscovery of the 2001 report I authored when I was the HUD Oregon State Coordinator, The State of Hispanic Homeownership in Oregon, 2000.

Included in the report were counts of Hispanic home owners and renters from the 2000 census for 17 Oregon places that had more than 500 Hispanic renter households.  

I thought it would be useful to update those counts using 2017 ACS 5 year data; I added statewide counts and counts outside of these 17 places also. [Not shown, there were a total of 28 Oregon places in 2017 than had more than 500 Hispanic renters, including Bend, Forest Grove, Redmond, and Wilsonville; you can download Hispanic tenure information for 2017 for these places, states, and Oregon counties with the 5 year ACS table B25003i HERE

I prepared a table and some graphs into a three page PDF file HERE and embedded below. The PDF file layout is landscape so you may need to scroll to see the full page. 

Some observations:

In 2017 among the 17 places with 500+ Hispanic renters in 2000: 
  • The Hispanic home ownership rate increased by 18%, from 28.7% to 34%. [Note: I use actual percentage increases not percentage "point" increases, so a 20% to 30% home ownership rate increase in my data would be a 50% increase instead of a 10 point increase]. 
  • The number of Hispanic homeowners increased by 13,667, and the number of Hispanic renters increased by 21,186. 
  • So for every 100 Hispanic homeowners added there were 155 Hispanic renter households added; however there were 3 of these places ( Aloha, Springfield, and Woodburn) where the number of Hispanic home owners added was higher than the number of Hispanic renters added. 
  • Four of the 17 places had a decline in Hispanic home ownership rates: Corvallis, Hayesville, Medford, and Ontario.
  • Aloha CP had the highest Hispanic homeownership rate of 48.7%, and Tualatin the lowest at 17.8%. (Ontario ranked # 1 in 2000 but dropped to #9 in 2017).
  • Gresham's Hispanic home ownership rate increased the most (76%), but started low at 18.5% and increased to 32.5% in 2017, BELOW the average for these 17 cities and the City of Portland. 

In 2017 in the City of Portland:
  • The Hispanic home ownership rate increased by 17%, from 30.4.7% to 35.5%
  • The number of Hispanic homeowners increased by 3,664 and the number of Hispanic renters increased by 5,280. 
  • So for every 100 Hispanic homeowners added there were 145 Hispanic renter households added.
  • Portland's Hispanic home ownership rate ranked 7th among the 17 places in 2000, and 8th in 2017.

In 2017 Statewide:
  • The number of Hispanic homeowners increased by 29,128, and the number of Hispanic renters increased by 36,194. 
  • So for every 100 Hispanic homeowners added there were 124 Hispanic renter households added.
  • The Hispanic home ownership rate increased by 12%, from 37% to 40.8%; this is HIGHER than the 34% Hispanic home ownership rate among 17 cities that had 500 Hispanic renter households in 2000. 
  • The table on page 3 of the PDF attached shows that the 48.6% Hispanic home ownership rate outside of these 17 places is substantially HIGHER that the 34% Hispanic home ownership rate in these 17 places. Moreover, outside of these 17 places, the number of Hispanic home owners added (15,461) was slightly HIGHER than the number of Hispanic renter households added (15,008). 

Originally created and posted on the Oregon Housing Blog.

Wednesday, January 16, 2019

Some Historical Background Data on Oregon Hispanic Home Ownership.

In 2001, while I was serving as HUD Oregon State Coordinator, I authored two Oregon minority focused home ownership reports that included census data and data on FHA and Fannie Mae and Freddie Mac lending to minority first time home buyers. 

In each report I highlight the importance of home ownership for building intergenerational wealth, the gap between minority and white homeownership, the prominent role that FHA single family loans play in minority first time homebuyer lending, and the underrepresentation of Fannie Mae and Freddie Mac in first time home buyer loans to African Americans and Hispanics.  

A have previously posted the first, The State of African American Homeownership in 2000, HERE. (In a related 2017 post HERE I updated the 15 year equity gains that Portland home owners would have realized between 2001-2016; the gain would have been $185k vs. my 2001 estimate of $75k). 

I hadn't been able to locate the second, The State of Hispanic Homeownership in Oregon, 2000 but I recently retrieved it from one of my older computers and have posted it HERE, and embedded below.

I realize there is a whole new generation or housing advocates who may not be aware of the historical data on minority home ownership in Oregon, and these reports may provide some useful context. 

I will be highlighting some of the changes in Hispanic homeownership from 2000-2017 in a future post. 



Originally created and posted on the Oregon Housing Blog.