An Urban Fabric of Housing and Jobs
In Los Angeles today, only 40 percent of residents can afford to own a home. For many families the only option for securing their portion of the American Dream has involved locating in the distant suburbs where housing prices are far less than they are in the city.
The trade-off is long commutes to their jobs and several hours a day in their cars. The tangible effects of that are obvious: more pollution as more cars clog our streets and freeways, increased gasoline use with an accompanying drain on family budgets as pump prices shoot out of site.
But don’t forget the less tangible: The stress of the long drive, the disruptive effects on the family, the loss of work time caused by traffic jams and the like.
This lack of affordably priced house near job centers - workforce housing - is a growing issue in Southern California and across the country. In Los Angeles’ Harbor Area, which is projected to need nearly 10,000 new homes by 2010 to keep pace with demand, Bisno Development is offering one solution to the workforce house crisis. One of the primary objectives of the Ponte Vista at San Pedro development is to provide opportunities for homeownership to a wide range of buyers with special purchasing programs designed for teachers, police officers, fire fighters and working families so that they can live in the communities they serve.
This blog is intended to be a source of information on the growing crisis in workforce housing and solutions to it.
The smart-growth “Blueprint” for Sacramento
A story by Ana Campoy in the July 7, 2008 Wall Street Journal discusses how the high price of gasoline is likely to transform American cities. Campoy cites the Blueprint Plan adopted by the Sacramento Area Council of Governments. She says the plan ”backed by a strange-bedfellows coalition of ordinary citizens, politicians, developers and environmentalsts — shows signs of working nonetheless.” Campoy reports: “While the Blueprint is still only a guide and local governments have the final word on development, many have begun incorporating its principles into their local laws, giving them real teeth.” Mike McKeever, head of the Sacramento Area Council of Governments was the driving force behind getting the Blueprint adopted. ”It sounds hokey, but it’s about making democracy work,” he told the Journal. read more…
Challenges and Meeting Them
Defining the challenges to creating more workforce housing is the first step to overcoming them. Where should workforce housing be built? How can workforce housing be made financially feasible? How can the regulatory process be improved to encourage workforce housing. How can the design and production of housing be changed to encourage the development of workforce housing? The non-profit Urban Land Institute discusses these and related issues at a policy forum.
Red Tape Adds to the Costs
Studies have shown that excessive regulations can add tens of thousands of dollars to the price of new homes, driving them farther beyond the reach of working families. U. S. Department of Housing and Urban Development Secretary Alphonso Jackson addressed the issue before the U. S. Conference of Mayors, calling on communities across the country to re-examine their regulations and reduce barriers to workforce housing.
Creating Workforce Housing Brings Other Benefits
For working families who will finally be able to give up the stress of long commutes, the benefits of workforce housing close to jobs are obvious. But the economic benefits for the community are just as real. For instance, it is estimated that Bisno Development’s Ponte Vista project will bring in $100 million in additional spending on goods and services every year. And those are goods and services being purchased locally. In addition, the community will create more than 900 jobs and nearly $32 million in salaries, and it will result in $5 million in new revenues for the city of Los Angeles.
Los Angeles Scorecard Addresses “Brain Drain”
According to the Los Angeles Business Council, one of the greatest threats to the Southern California economy is a “brain drain:” the increasing number of young workers leaving the region because of high housing costs and intolerable commutes. The Council has developed a “Workforce Housing Scorecard” to rank the region’s cities on how well they provide housing for their workforce.
Ponte Vista Project Meets Needs of “Jobs-Rich, Housing-Poor” Area
According to the Southern California Association of Governments, the regional planning agency, Bisno Development’s Ponte Vista project in San Pedro is a good example of a “project that brings higher density homes to a jobs-rich, housing poor area of the region” while at the same time remaining consistent with transportation goals.
Apartments Can Play a Role in Workforce Housing
Many of our inner cities contain housing that is under-utilized. Former California Treasurer Phil Angelides and ex-basketball star Earvin “Magic” Johnson have joined forces with investors to buy and improve more than $2 billion worth of urban apartment complexes to create secure housing for firefighters, police officers, teachers and other workers.
Density is a Solution, Not a Problem
Many critics of initiatives to create more work force housing cite the increased housing density that would result. But more and more experts are coming to the conclusion that high-density urban living may be a solution to more than just the affordable housing crisis. As a recent Wired magazine article points out, urban living is much kinder to the environment than the suburban lifestyle that for so long as been central to the American dream.
Density Doesn’t Mean Lack of Open Space, Nature
Bisno Development’s Ponte Vista at San Pedro community is a good example of how providing affordable workhouse doesn’t mean giving up amenities. The development will dedicate 40 percent of the community to open space and parks, will have a Waterscape Concourse flowing through the center of the community and include a natural habitat project featuring native plants near its senior housing village.
Workforce Housing is Element in Addressing Climate Change
According to the Urban Land Institute, workforce housing and other compact development can result in significant reductions in carbon emissions, the major greenhouse gas that is affecting the earth’s climate. Since workers will have to drive less to reach their jobs, the amount of vehicle miles traveled is reduced. But in addition, such compact, near-to-work developments will mean that less infrastructure such as streets, highways and sewer lines will have to be built and maintained.