Housing

By Gary G. Butler

Housing is a multifaceted issue. Supply in Novato and Marin is impacted by local zoning as well as numerous Federal, State and local parks and open space.

Housing is a multifaceted issue. Supply in Novato and Marin is impacted by local zoning as well as numerous Federal, State and local parks and open space. The single 101 corridor for transportation in Marin lends to traffic congestion and heightens demand for housing in locations that minimize distance between home and frequent destinations + job, recreation, school or volunteer locations.

Some have preference or aversion to affordable housing, workforce housing or subsidized housing. While a specific proposal may define these terms, many use them more or less interchangeably, but for me they have different and distinct meanings.

AFFORDABLE HOUSING

This references a measure of housing that is affordable to any given person or family based on their income. For a family making $500,000 per year, most housing in Novato is affordable; for a family making $50,000, some is, but most housing is not affordable. The state asks us to measure housing inventory in terms of affordability at various income levels. The level of affordability is based on Marin County's Median Family Income (MFI) + currently $103,000 (for 2013). The categories are moderate (81% to 120% of MFI), low income (51% to 80% MFI), very low income (33% to 50% MFI) and extremely low income (below 33% of MFI). Typically, apartment rentals and smaller home rentals are more likely to be affordable to some or all of the income categories. Market priced larger and medium homes less so. I see the discussion around affordable housing as relevant in terms of measurement.

LOW COST HOUSING

Based on affordable housing measures low cost housing can include any housing that could be afforded by household with up to 120% of Marin County Median Family Income. However, for many this term refers to housing targeted and used by bottom two or three categories. This is housing that is restricted to or designed for occupants who have low or modest income for the geographic area. Most rental housing (particularly apartments) fits into this category for low to extremely low medium income. Some housing is designed for ownership but is restricted based on income. I think rental properties are best solution for lower income households.

DENSITY

This refers to number of units per acre. For Novato this figure is now 20-23 (some refer to this range as medium density, others as high density), it used to be 30 units per acre (everyone I have ever talked to considers this high density). High density (multi story apartment buildings) is not a fit in a suburban environment.

SUBSIDIZED HOUSING

This is a practice where government or private entity lowers cost of housing from market rate through some mechanism to provide housing for individual or party. When done by private entity (non-profit or business), I support. Local examples include Habitat for Humanity or Rotary Club of Novato's Nova-Ro. It could include for profit business or private individual. I support these since the individuals or entities providing the subsidy are using their own capital and resources and making their own determination as to best use of capital. I generally do not support this activity from local government, particularly rent control solutions and subsidies, as over time (particularly rent control) do more to benefit those lucky enough to occupy protected units at the expense of those who are not lucky and cannot through friend or family occupy protected units. This often hurts new workers and young families.

WORKFORCE HOUSING

This references where housing is provided to certain employees or class of employees. This can be aimed at any level of housing cost. For example, it could be provided to lower income workers to allow them to live close to work, which might otherwise be cost prohibitive. However, it is also commonly used with high-level employees (executives at private companies or city manager are examples) as a non-cash benefit or to facilitate a quick transition into leadership role. It is also conceivable that local city government create a workforce housing for staff but I am not aware of this being done currently as it is not a good use of funds for city's. Like subsidized housing I support private and non-profit entities making their own decision on use of capital. I don't see this as a good use of funds for city financing because it is hard to imaging value for taxpayer being achieved.

MY VIEW

My view is that marketplace solutions are best for most issues involving housing. Government intervention in the marketplace often has unintended consequences so I am wary of government influences to broaden or restrict the availability of designated housing artificially. However, even though I think that the marketplace is best way to resolve housing supply and demand; there is a significant amount of federal, state and local law that has been passed that impacts housing. I respect the rule of law and have no intention to circumvent them. I will advocate for change in situations where laws from outside jurisdictions unduly impact ability of Novato to maintain local control. Currently, this is most likely with regional agencies applying California law.