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HomeMy WebLinkAbout2012-2016 Analysis of Impediments to Fair Housing Section VBBC RESEARCH & CONSULTING SECTION V, PAGE 1 SECTION V. Analysis of Impediments to Fair Housing Choice This appendix contains the City of Temecula’s Analysis of Impediments to Fair Housing Choice (AI). This AI was completed as part of the city’s 2011-2015 Consolidated Plan. This section contains:   Maps examining racial, ethnic and income concentrations in Temecula;   The findings from a fair housing survey that was conducted for this analysis;   A review of the city’s land use policies and zoning codes for barriers to fair housing choice;   An analysis of home mortgage lending data;   An analysis of fair housing complaints and legal cases; and   An identification of fair housing barriers and recommended fair housing action plan. Analysis of Impediments to Fair Housing Choice. The AI is a U.S. Department of Housing and Urban Development (HUD) mandated review of impediments to fair housing choice in the public and private sector. The AI is required for the City of Temecula to receive federal housing and community development block grant funding.1 The AI involves:   A review of a city’s laws, regulations and administrative policies, procedures and practices;   An assessment of how those laws, policies and practices affect the location, availability and accessibility of housing; and   An assessment of public and private sector conditions affecting fair housing choice. According to HUD, impediments to fair housing choice are:   Any actions, omissions, or decisions taken because of race, color, religion, sex, disability, familial status or national origin that restrict housing choices or the availability of housing choices.   Any actions, omissions or decisions that have the effect of restricting housing choices or the availability of housing choices on the basis of race, color, religion, sex, disability, familial status or national origin. 1 The city is also required to submit a Consolidated Plan for Housing and Community Development and an annual performance report to receive funding each year. PAGE 2, S ECTION V BBC RESEARCH & CONSULTING Although the AI itself is not directly approved or denied by HUD, its submission is a required component of a city’s or state’s Consolidated Plan for Housing and Community Development (Consolidated Plan) performance reporting. HUD desires that AI’s:   Serve as the substantive, logical basis for fair housing planning;   Provide essential and detailed information to policy makers, administrative staff, housing providers, lenders and fair housing advocates; and   Assist in building public support for fair housing efforts both within a city’s boundaries and beyond. Federal Fair Housing Act. The Federal Fair Housing Act, passed in 1968 and amended in 1988, prohibits discrimination in housing on the basis of race, color, national origin, religion, gender/sex, familial status and disability. The Fair Housing Act covers most types of housing including rental housing, home sales, mortgage and home improvement lending and land use and zoning. Excluded from the Act are owner-occupied buildings with no more than four units, single family housing units sold or rented without the use of a real estate agent or broker, housing operated by organizations and private clubs that limit occupancy to members and housing for older persons.2 HUD has the primary authority for enforcing the Federal Fair Housing Act. HUD investigates the complaints it receives and determines if there is a “reasonable cause” to believe that discrimination occurred. If reasonable cause is established, HUD brings the complaint before an Administrative Law Judge. Parties to the action can also elect to have the trial held in a federal court (in which case the Department of Justice brings the claim on behalf of the plaintiff).3 State of California Fair Housing Laws. In addition to the Federal Fair Housing Act, there are several California state laws that apply to Fair Housing. Unruh Civil Rights Act of 1959. This act requires equal access to the accommodations, advantages, facilities, privileges or services of all business establishments. It provides for the right to be free from discrimination in public accommodations regardless of sex, race, color, religion, ancestry or national origin. It was later amended to include all disabilities.4 Fair Employment and Housing Act of 1963. This is the primary state law which prohibits discrimination in the sale, rental, lease negotiation or financing of housing based on race, color national origin, sex, marital status, national origin and ancestry.5 Ralph Civil Rights Act of 1976: This act provides that all persons within California have the right to be free from any violence, or intimidation by threat of violence, committed against their persons or property because of their race, color, religion, ancestry, national origin, political affiliation, sexual orientation, sex, age, disability or position in a labor dispute. The Act prohibits violence or threat of 2 “How Much Do We Know? Public Awareness of the Nation’s Fair Housing Laws”, The U.S. Department of Housing and Urban Development, Office of Policy and Research, April 2002. 3 Ibid. 4 The Fair Housing Council of Riverside County. Available online at http://www.fairhousing.net/index.php?option=com_content&view=article&id=76&Itemid=68 5 I bid. BBC RESEARCH & CONSULTING SECTION V, PAGE 3 same in rental housing situations, including houses, apartments, hotel, boarding housing and condominiums.6 California Fair Housing Act of 1992: This act brings the Fair Housing Employment and Housing Act (FEHA) into conformity with the Federal Fair Housing Amendments Act of 1988. Added to current protected groups are "mental and physical disability" and "familial status." It requires that housing providers allow disabled persons to modify their premises and make reasonable accommodations to meet their needs, increases the time limit for the filing of discrimination complaints from 60 days to one year, provides minimum accessibility standards for all newly- constructed multifamily housing, bars mobile home parks from "adults only" residency unless they comply with criteria for the senior housing exemption as defined under Housing for Older Persons, and it provides representation of the victim by the Department of Fair Employment and Housing if the issue is removed to a court of law from the administrative process after determination that the law has been violated.7 Protected Class Concentrations A full demographic profile of Temecula is provided in Section I of the Consolidated Plan. This section of the AI focuses on concentrations of protected classes in Temecula. Racial concentrations. In 2010, the largest racial group in Temecula was white (71%), followed by Asian (at a much lower 10%). The slight majority of Temecula residents (57%) were non- Hispanic white and approximately one-quarter were of Hispanic origin. Figure V-1 shows the racial and ethnic distribution of Temecula in 2000 and 2010. Figure V-1. Population by Race and Ethnicity, City of Temecula, 2000 and 2010 Source: U.S. Census Bureau, 2000 Census and 2010 Census. The population proportion of all minority groups increased in between 2000 and 2010, while the non-Hispanic white population proportion dropped from 69 percent to 57 percent. Despite this increase in diversity, Temecula still has a smaller minority population than Riverside County as a 6 Ibid. 7 Ibid. Total population 57,716 100 100,097 100 Race American Indian and Alaska Native 497 0.9% 1,079 1.1% Asian 2,728 4.7% 9,765 9.8% Black or African American 1,974 3.4% 4,132 4.1% Native Hawaiian and Other Pacific Islander 174 0.3% 368 0.4% White 45,555 78.9% 70,880 70.8% Some Other Race 4,276 7.4% 7,928 7.9% Two or More Races 2,512 4.4% 5,945 5.9% Ethnicity Hispanic or Latino 10,974 19.0% 24,727 24.7% Non-Hispanic White 40,007 69.3% 57,246 57.2% Number Percent Number Percent 20102000 PAGE 4, S ECTION V BBC RESEARCH & CONSULTING whole. In Riverside County, the Hispanic population (45%) outnumbers the non-Hispanic white population (40%). One of the key components of a demographic analysis is an examination of the concentration of racial and ethnic minorities within a jurisdiction to detect evidence of segregation. In some cases, minority concentrations are a reflection of preferences—e.g., minorities may choose to live near family and friends of the same race/ethnicities or where they have access to grocery stores or restaurants that cater to them. In other cases, minority populations are intentionally steered away or discouraged from living in certain areas. Housing prices can also heavily influence where minorities live, to the extent that there are economic disparities among persons of different races and ethnicities. According to HUD, an area of racial and ethnic concentration (also called a “minority impacted area”) is defined as where the percentage of persons in a particular race or ethnic group is at least 20 percentage points higher than the percentage of persons in the category for the city as a whole. Using the above definition of concentration, block groups in Temecula have a concentration if the following exists:   A non-Hispanic white population proportion of 77 percent and more;   A Hispanic population proportion of 45 percent and more;   An Asian population proportion of 30 percent and more; and   A Black or African American population proportion of 24 percent and more. Figure V-2 shows the percentage of non-Hispanic white residents within each block group in the city. There are no block groups within city boundaries that are 77 percent or more non-Hispanic white; however one block group immediately east of Temecula is non-Hispanic white-concentrated. Figure V-2. Percent of Non-Hispanic White Population by Block Group, City of Temecula, 2010 Source: 2010 Census and BBC Research & Consulting. BBC RESEARCH & CONSULTING SECTION V, PAGE 5 Figure V-3 shows the ratio of Hispanics to total population by block group in the city. As the map demonstrates, there no block groups in the city with Hispanic concentrations. Figure V-3. Percent of Hispanic/Latino Population by Block Group, City of Temecula, 2010 Source: 2010 Census and BBC Research & Consulting. Figure V-4 shows the proportion of Asian residents by block group in the city. There is one block group in the southwestern portion of the city with a concentration of Asian residents. Figure V-4. Percent of Asian Population by Block Group, City of Temecula, 2010 Source: 2010 Census and BBC Research & Consulting. PAGE 6, S ECTION V BBC RESEARCH & CONSULTING Figure V-5 shows the proportion of African Americans by block group in the city. There are no block groups with concentrations of African Americans. Figure V-5. Percent of Population that is African American, City of Temecula, 2010 Source: 2010 Census and BBC Research & Consulting. Persons with disabilities. The 2000 Census reported that 13 percent of Temecula residents had a disability. By 2010, the percent of residents with a disability had dropped to 10 percent. The prevalence of disability decreased in each age cohort between 2000 and 2010—most dramatically in residents aged 18-34 (12% in 2000 to 5% in 2010). Figure V-6. Disability by Age Cohort, City of Temecula, 2010 Source: U.S. Census Bureau 2010 American Community Survey. The likelihood of disability increases with age and thus the distribution of disabilities is typically a function of a city’s age profile. Of the 9,374 persons with disabilities in Temecula, 30 percent were seniors, up from 26 percent in 2000. Figure V-7 shows the concentration of persons with disabilities in Temecula by block group as of 2000, the latest date of availability. A block group is concentrated when 33 percent of residents in a block group have a disability (based on the 2000 Census disability proportion for the city). There are no block groups with concentrations of persons with disabilities. However, the map indicates that block groups in the center of Temecula have a higher proportion of persons with disabilities. Age Cohort Under 5 years 161 2% 2% 5 to 17 years 1,609 7% 17% 18 to 34 years 1,089 5% 12% 35 to 64 years 3,745 10% 40% 65 to 74 years 1,256 36% 13% 75 years and over 1,514 47% 16% Total 9,374 9% 100% Percent with Disabilities Percent of Age GroupEstimate BBC RESEARCH & CONSULTING SECTION V, PAGE 7 Figure V-7. Percent of Population with Disabilities, City of Temecula, 2000 Source: U.S. Census 2000 and BBC Research & Consulting. The 2010 ACS estimates the presence of persons with disabilities in the workforce. Of persons with disabilities who are working age (18 to 64), about half were not in the labor force, 37 percent were employed and 12 percent were unemployed. Household size. The average household size (3.15) in Temecula did not change between 2000 and 2010. As is typical, the average household size of renters in Temecula is slightly smaller (3.07) than the average household size of owners (3.18). Large households, defined by the Census as having five or more persons in a household, made up 18 percent of the total occupied households in 2010. The proportion of large households has not changed substantially since 2000, but the share of renter occupied households with five or more persons increased from14 percent to 19 percent. Large households can have unique housing needs because of the limited housing stock to serve them—especially rental housing stock—as well as lack of support and understanding of familial status protections in the Federal Fair Housing Act. The map in Figure V-8 examines the location of large households within the city. Concentrated block groups are those in which large households make up more than 38 percent of households. Although there are no concentrated block groups in Temecula, block groups on the outskirts of the city tend to have higher percentages of large households. PAGE 8, S ECTION V BBC RESEARCH & CONSULTING Figure V-8. Percentage of Large Households by Block Group, City of Temecula, 2010 Source: 2009 Claritas and BBC Research & Consulting. Familial status. In 2010, half of all households in Temecula were families with children. Of these 15,806 households with children, 77 percent were husband-wife families and 23 percent were single parent households. Figure V-9 displays the city’s 2010 household composition. Figure V-9. Household Composition, City of Temecula, 2010 Note: Due to rounding, percentages may not appear to aggregate correctly. Source: 2010 Census. Single parent households—especially those with single mothers—have some of the highest rates of poverty in most communities. As such, they have needs for social services (child care, transportation) and affordable housing. Familial status is also a protected class under fair housing law and, in many communities, one of the most common reasons for fair housing complaints. Single parent households are therefore vulnerable to fair housing discrimination and often have fewer choices in the housing market because of their lower income levels. Approximately 8 percent of all households in Temecula are female-headed households with children. Based on the same definition of concentration as in the ethnicity maps, Figure V-10 shows that there are no concentrations of female-headed households with children in the city. Total households 31,781 100% Nonfamily households 5,955 19% Family households 25,826 81% Husband-wife families 20,483 64% With children 12,141 38% Without children 8,342 26% Female householder, no husband present 3,763 12% With children 2,632 8% Without children 1,131 4% Male householder, no wife present 1,580 5% With children 1,033 3% Without children 547 2% Number Percent BBC RESEARCH & CONSULTING SECTION V, PAGE 9 Figure V-10. Percentage of Female- Headed Households with Children by Block Group, City of Temecula, 2010 Source: 2009 Claritas and BBC Research & Consulting. Low Income and poverty. Figure V-11 shows the proportion of very low income households (earning less than $25,000) by block group. Approximately 19 percent of all households in Temecula earn less than $25,000, so block groups in which more than 39 percent of households are low income are considered to have low income concentrations. Low income households tend to be concentrated immediately west of I-15. Low income households are also concentrated just outside the western boundary of Temecula. The two block groups just east of I-15 with 19 to 39 percent of low income households, respectively, also had high percentages of female-headed households with children. Figure V-11. Percent of Low Income Households, City of Temecula, 2009 Source: 2009 Claritas and BBC Research & Consulting. PAGE 10, SECTION V BBC RESEARCH & CONSULTING In 2000, 7 percent of Temecula’s population, or 3,864 people, were living below the poverty level. This was substantially lower than the rest of Riverside County, the state of California and the U.S. as a whole. Between 2000 and 2010 the poverty rate in Temecula doubled to 14 percent (14,020 people). Despite this large increase, the poverty level in Temecula remained below that of Riverside County, California and the U.S., as shown in Figure V-12. Figure V-12. Poverty Rate, City of Temecula, 2000 and 2010 Source: U.S. Census Bureau 2000 Census and 2010 American Community Survey. Public Input During the development of the Consolidated Plan and AI, residents and stakeholders were consulted about fair housing barriers and housing and community development needs. A complete discussion of public input can be found in Section II of the Consolidated Plan. This portion of the AI summarizes the findings and responses relevant to fair housing choice in Temecula. Online and paper surveys of residents and stakeholders were available from November 16, 2011 through January 5, 2012. The survey was advertised for over a month on the City of Temecula website and extended into early January 2012 in order to gather additional input from the community. Potential barriers to fair housing. Residents and stakeholders rated the relative seriousness of potential barriers to fair housing in Temecula on a scale from zero to nine, where a rating of nine indicates that the factor is a serious barrier. Due to their expertise, stakeholders evaluated a more comprehensive list of barriers. As shown in Figure V-13, on average, most residents have not experienced barriers to fair housing choice in Temecula. Income, concentrations of affordable housing in certain areas and a lack of affordable housing to purchase were the top three barriers, and these were a serious problem for 10 to 17 percent of residents. 2010 2000 0% 5% 10% 15% 20% 25%30% 6.7% 14.2% 14.0% 16.3% Temecula Riverside County 100% BBC RESEARCH & CONSULTING SECTION V, PAGE 11 Figure V-13. Potential Fair Housing Barriers — Residents Note: n=148. Source: BBC Research & Consulting 2011 Temecula Resident Survey. Stakeholders evaluated a comprehensive series of potential barriers to fair housing including economic, demographic and housing factors; land use, zoning and housing policies; capacity issues; lending activities; and real estate activities. The most serious barriers in each category are below.   Income levels of minority and female-headed households had the highest average rating among economic, demographic and housing factors.   Neighborhood objections to affordable or assisted housing and neighborhood objections to group homes for persons with disabilities were the most serious barriers associated with land use, zoning and housing policies.   Among capacity issues, a lack of knowledge among residents regarding fair housing was the most serious potential barrier, followed by a lack of fair housing knowledge on the part of small landlords.   Lenders not disclosing the determination made by the private mortgage insurer was considered a serious barrier by more than 40 percent of stakeholders.   Among real estate activities, steering, denying the availability of housing and insurance agency discrimination had the highest average ratings. Housing provider refused to make reasonable accommodations for my disability Sellers of homes refused to show me their home I can’t find a real estate professional of the race, ethnicity, disability or gender I prefer My lender did not give me an appraisal of my home or property I did not get information about private mortgage insurance Real estate agents only showed me housing I could afford in certain neighborhoods My lender told me to use a specific appraisal or hazard insurance company I was given a subprime loan (higher interest rate than normal) I have poor credit Lack of knowledge among appraisers regarding fair housing Lack of affordable housing to rent Restrictive covenants by builders, developers or homeowners associations Lack of affordable housing to purchase Concentrations of affordable housing in certain areas My income level 0% 20% 40% 60% 80% 100% 0 1 2 3 4 5 6 7 8 9 A Serious Problem Not a Problem Avg. Rating 2.4 2.3 2.2 2.2 2.1 1.8 1.4 1.3 1.2 0.7 0.6 0.6 0.3 0.3 0.2 PAGE 12, SECTION V BBC RESEARCH & CONSULTING Figure V-14 identifies the top barriers (average rating of 5.9 or higher) to fair housing as rated by stakeholders. The most serious barriers across all categories include lending and real estate activities as well as NIMBYism. Figure V-14. Most Serious Barriers to Fair Housing Choice — Stakeholders Note: n=21. Source: BBC Research & Consulting 2011 Temecula Stakeholder Survey. Affordability, services and community climate. Residents responded to a series of questions about affordable housing, public transit and community climate in Temecula.   About one in 10 residents who responded to the survey had been unable to find affordable housing in Temecula. The types of housing sought included single family homes, condos and apartments.   About one in five residents who responded to the survey have tried to access public transit in Temecula and were unable to. Lack of access pertained to a number of locations within Temecula as well as limited hours of transit operation.   The vast majority of residents responding to the survey agree with the statement, “I feel that people like me and my family are welcome in Temecula.” Residents who do not feel welcome in Temecula explained that they were single parents, gay, of mixed race or not of the Christian faith and these factors made them feel unwelcome. Resident experience with housing discrimination. Residents also responded to several questions regarding fair housing and their past experience with housing discrimination, if any. Only three percent of residents responding to the survey believe they have been discriminated against in finding housing and five percent were not sure. Barrier 6.6 Lenders not disclosing the determination made by the private mortgage insurer 6.6 Neighborhood objections to affordable or assisted housing 6.3 Income levels of minority and female-headed households 6.2 Lenders steering customers to use a specific appraisal or hazard insurance company 6.1 Lenders targeting subprime, high risk borrowers 6.1 Real estate agents directing clients to rental or sale of housing only in certain neighborhoods 5.9 Lack of knowledge among residents regarding fair housing 5.9 Lenders not disclosing full appraisal reports to borrowers 5.9 Lenders offering prime customers subprime rates 5.9 Poor credit histories of minority borrowers 5.9 Housing providers falsely denying that housing is available 5.9 Insurance agency discrimination in decision to insure certain parties Average Rating BBC RESEARCH & CONSULTING SECTION V, PAGE 13 Those residents who believe they have experienced discrimination in housing offered the following descriptions of their experience:   “I felt I was being shown houses where the local predominately White community would want me to live in.”   “Realtor steering us away from certain homes.”   “Single parent.”   “We were discriminated against by a realtor (seller's agent) who was not ethical and did not present our offer to the seller.” In response to their experience with housing discrimination, only one individual reported filing a complaint with the ACLU. One wrote a letter to the California Department of Real Estate (DRE) to complain about the real estate agent’s steering practices. All residents were asked if they knew who to contact in the case that they experienced housing discrimination. As shown in Figure V-15, only one in 10 respondents stated that they knew who to contact to report housing discrimination. Figure V-15. If you ever felt you were discriminated against and wanted to report it, do you know who you would contact? Note: n=132. Source: BBC Research & Consulting 2011 Temecula Resident Survey. Those respondents who knew the organization to contact to report housing discrimination would contact Fair Housing of Riverside County, the Fair Housing hotline, HUD, CA DRE, a lawyer or search the internet. Fair housing resources. With regard to the availability and accessibility of fair housing resources in Temecula, half of stakeholders did not think sufficient information was available. Stakeholders made the following comments about the types of information, resources and training that would be helpful to them:   “Credit counseling.”   “I have never seen any leaflets, flyers, or brochures concerning Fair Housing Laws available to the general public in Temecula. If they exist, where are they hidden?”   “Advertise workshops on how to obtain housing in the area.”   “A more proactive approach in informing and educating the realtor community of availability of the information and where to send their clientele.” Stakeholders suggested a variety of methods to inform residents about fair housing issues. These included emails and websites, city and or county public meetings, industry publications, government publications, internal memos or communications and providing speakers to organizations. Yes (11%) No (59%) Don’t know (30%) PAGE 14, SECTION V BBC RESEARCH & CONSULTING Summary of public input findings. The public outreach conducted for the Consolidated Plan and AI reveal several important findings related to fair housing choice in Temecula:   One in 10 residents had tried to find affordable housing in Temecula without success, and one in five had experienced difficulty trying to access public transit.   Residents report experiencing few barriers to fair housing choice. Stakeholders rated lenders not disclosing the determination made by the private mortgage insurer; neighborhood objections to affordable or assisted housing and the income levels of minority and female-headed households to be the most serious barriers to fair housing choice in Temecula.   The majority of residents feel that people like them are welcome in Temecula. Those who did not feel welcome believe this results from their being single parents, mixed-race families or gay.   Few (3%) residents believe that they have experienced housing discrimination. Steering by real estate agents was the type of discrimination described. Only 10 percent of residents know who to contact to report housing discrimination. Housing and Land Use Policy Review This section discusses the housing and land use policies that may affect fair housing in the City of Temecula. Housing profile. A detailed profile of the city’s housing market is provided in the Community Profile and Housing Market Analysis section of the Consolidated Plan (Section I). In sum, the analysis found:   The majority of the city’s housing stock is new and in good condition—over 90 percent was built after 1980. Few residents live in substandard units and few reported living in overcrowded units.   Between 2000 and 2010 median rent and median home value in Temecula increased faster than resident incomes. Thus, both renters and homeowners lost purchasing power during the past decade.   Temecula’s median rent in 2010 was relatively high at $1,252. Only 36 percent of the city’s renters earn the $50,080 per year necessary to afford median rent without being cost burdened. Forty-three percent of Temecula residents (33% of renters) can afford the city’s 2010 median home value of $289,800.   There is a substantial shortage of rental units affordable to renter households earning less than $35,000. In 2010, 4,292 renter households in Temecula—45 percent of all renter households— earned less than $35,000. However, there are only 1,115 affordable units—11 percent of all rental units. BBC RESEARCH & CONSULTING SECTION V, PAGE 15 Zoning codes, planning and zoning commission, planning fees OR Development regulations review. BBC reviewed the City of Temecula’s zoning regulations, comprehensive plan and planning fees to assess potential fair housing concerns or opportunities resulting from the development process. This review identified two possible fair housing concerns:   Neither household nor family is defined in the city’s zoning code, which may exclude unrelated persons with disabilities from living together.   Congregate care and residential care facilities for seven or more are only addressed for the elderly, which may exclude persons with disabilities from similar living arrangements. To evaluate potential fair housing concerns within the city’s zoning code, BBC utilized a “Review of Public Policies and Practices (Zoning and Planning Codes)” form recently circulated by the Los Angeles fair housing office of HUD. This section poses the questions from this checklist, along with responses about the city’s code. Does the Code definition of “family” have the effect of discriminating against unrelated individuals with disabilities who reside together in a congregate or group living arrangement? The city’s code does not define the term “family,” nor does it explicitly state that the occupants of a single family dwelling unit must be related. It does specify the occupants of a single family unit as “one household,” which is not defined. The code allows residential care facilities and facilities for the mentally disordered, disabled, or dependent or neglected children in all residential zones provided there are six or fewer occupants. Is the Code definition of “disability” the same as the Fair Housing Act? Yes. The Code defines a “disabled person” or “person with a disability” as an “individual who has a physical or mental impairment that limits one or more of that person’s major life activities; anyone who is regarded as having such impairment; or anyone who has a record of having such an impairment. Such an impairment shall not include an individual’s current, illegal use of a controlled substance.” Does the zoning ordinance restrict housing opportunities for individuals with disabilities and mischaracterize such housing as a “boarding or rooming house” or “hotel”? No. Rooming and boarding houses, although not specifically defined in the code, are commercial and are distinct from group homes and residential care facilities, which are defined and zoned residential. Does the zoning ordinance deny housing opportunities for disability individuals with on site housing supporting services? No. Residential care facilities, which are permitted by right in all residential zones if they have six or fewer occupants, include on site support services by definition. Does the jurisdiction policy allow any number of unrelated persons to reside together, but restrict such occupancy, if the residents are disabled? The city does not specify the number of related or unrelated persons in one household. However, group homes or residential care facilities must have six or fewer people in order to be permitted in any residential zone. Congregate care for the elderly and residential care facilities for the elderly with seven or more are permitted in medium and high density residential zones and conditionally permitted in all other residential zones. PAGE 16, SECTION V BBC RESEARCH & CONSULTING Congregate care and residential care facilities with seven or more occupants that are not specifically for the elderly are not addressed in residential zoning uses. This may effectively exclude congregate care and residential care for seven or more occupants for those with disabilities. Does the jurisdiction policy not allow disabled persons to make reasonable modifications or provide reasonable accommodation for disabled people who live in municipal-supplied or managed residential housing? No. Does the jurisdiction require a public hearing to obtain public input for specific exceptions to zoning and land-use rules for disabled applicants and is the hearing only for disabled applicants rather than for all applicants? No. Public hearings are required to obtain a conditional use permit, variance or amendment to development code, but the hearing is not specific to persons with disabilities. Does the zoning ordinance address mixed uses? How are the residential land uses discussed? What standards apply? Yes. Village Centers, designated by the general plan or zoned with the application of the village center overlay zoning district, are intended to create a mixture of land uses with pedestrian orientation with plazas, open spaces and mass transit opportunities. Residential design considerations include allowing for residential density increases for those projects that offer mixed uses with a diversity of housing opportunities including the provision of affordable housing; integrating mixed uses into a single structure with retail on the lower level, office and residential on upper levels; and considering higher residential densities and intensities that will support mass transit options. Does the zoning ordinance describe any areas in this jurisdiction as exclusive? No. Are there exclusions or discussions of limiting housing to any of the following groups: race, color, sex, religion, age, disability, marital status or familial status and/or creed of national origin? No. Are there any restrictions for Senior Housing in the zoning ordinance? If yes, do the restrictions comply with Federal law on housing for older persons (i.e., solely occupied by persons 62 years of age or older or at least one person 55 years of age and has significant facilities or services to meet the physical or social needs of older people)? There are no restrictions on senior housing, per se. The definition of senior citizen housing complexes (not including state-licensed rest homes, group homes, convalescent hospitals, etc.) is consistent with federal law. Senior citizen housing complexes, or congregate care for the elderly, are permitted by right in low density, low medium density, medium density and high density residential zones. Other multifamily housing is only permitted by right in medium and high density residential zones. Residential care facilities for the elderly are defined as “housing arrangements chosen voluntarily by persons 60 years of age or over where varying levels and intensities of care and supervision, protective supervision, personal care, or health-related services are provided.” Residential care facilities for the elderly with six or fewer occupants are permitted in all residential zones. Those with seven or more are permitted in medium and high density residential zones and require a CUP in all others. BBC RESEARCH & CONSULTING SECTION V, PAGE 17 Special development standards allowing higher maximum densities apply to senior housing. Affordable housing and affordable senior housing projects are entitled to receive various density incentives and development standard concessions as outlined in section 17.10.020 of the code. Does the zoning ordinance contain any special provisions for making housing accessible to persons with disabilities? Yes. Section 17.03.065 specifically addresses reasonable accommodations. Does the zoning ordinance establish occupancy standards or maximum occupancy limits? Yes. Although family households are not subject to maximum occupancy limits, group homes are limited to six or fewer persons. (Group homes for the elderly with more than six are required to obtain a conditional use permit). Does the zoning ordinance include a discussion of fair housing? Yes. “Fair Housing Laws,” meaning the Federal Housing Act, the Americans with Disabilities Act and the California Fair Employment Housing Act, are referenced in section 17.03.065 of the code in the context of reasonable accommodations. Describe the minimum standards and amenities required by the ordinance for a multiple family project with respect to handicap parking. Section 17.24.040-D in the code discusses the minimum number of disabled parking spaces required for both non-residential and multifamily parking. Residential uses are required to provide one parking space designated for the disabled for each dwelling unit that is designated for the disabled. Ultimate authority for disabled parking requirements is deferred to the state of California and the American Disabilities Act. Does the zoning code distinguish senior citizen housing from other single family residential and multifamily residential uses by the application of a conditional use permit (cup)? In the standard zoning districts (residential, commercial/office/industrial and public/institutional) senior housing is not distinguished from other residential uses by the application of a CUP. However, there are two overlay districts (PDO-7 and PDO-10) in which multifamily housing is permitted by right, but congregate care for the elderly requires a CUP. Does the zoning code distinguish handicapped housing from other single family residential and multifamily residential uses by the application of a conditional use permit (cup)? Although handicapped housing is not distinguished by the application of a CUP, it is distinguished by omission. In residential districts, congregate care and residential care for seven or more occupants is only addressed as specific to the elderly. This effectively excludes congregate care and residential care for seven or more occupants for those with disabilities. The same is true for commercial/office/industrial zoning districts and most overlay districts. How are “special group residential housing” defined in the jurisdiction zoning code? The code defines a group home as any residential care facility for six or fewer persons which is licensed by the state. Other special group housing definitions included in the code are below.   Congregate care: apartment housing, usually for senior citizens, or for the disabled in accordance with Health and Safety Code Section 50062.5, which is arranged in a group setting that includes independent living and sleeping accommodations in conjunction with shared dining and recreational facilities. (Congregate care facilities for the elderly are permitted in L-2, LM, MH and H residential zones). PAGE 18, SECTION V BBC RESEARCH & CONSULTING Although the code definition of congregate care is not specific to the elderly, the only residential use type included in the zoning code is “Congregate care residential facilities for the elderly.” This may have the effect of excluding congregate care facilities for persons with disabilities.   Convalescent facility: a state-licensed facility which provides long-term nursing, dietary and other medical services except surgery or primary treatments customarily provided in a hospital, to convalescents or invalids. (Permitted in M and H residential zones).   Residential care facility: means any family home, group care facility, or similar facility determined by the Director of Social Services, established for 24-hour non-medical care of persons in need of personal services, supervision or assistance. (Permitted in all residential zones with six or fewer people. Residential care facilities with more than six occupants are not listed as a residential use in the code).   Residential care facility for the elderly: a housing arrangement chosen voluntarily by persons 60 years of age or over, or their authorized representative, where varying levels and intensities of care and supervision, protective supervision, personal care, or health-related services are provided, based upon their varying needs, as determined in order to be admitted and to remain in the facility. (Permitted in all residential zones with six or fewer people; conditionally permitted in all residential zones with seven to 12 people).   Facilities for the mentally disordered, disabled, or dependent or neglected children: not defined. (Permitted in all residential zones with six or fewer people; conditionally permitted in all residential zones with seven to 12 people).   Alcoholism or drug abuse recovery or treatment facility: not defined. (Permitted in all residential zones with six or fewer people; conditionally permitted in all residential zones with seven or more people).   Emergency shelter: a facility that provides immediate and short-term housing and supplemental services for the homeless. Supplemental services may include food, counseling and access to other social programs. (Permitted in M and H; conditionally permitted in all other residential zones).   Transitional Housing: not defined. (Permitted in M and H; conditionally permitted in all other residential zones).   Community care facility: any facility, place or building which is maintained and operated to provide non-medical residential care, day treatment, adult day care or foster family agency services for children, adults, or children and adults, including, but not limited to, the physically disabled, mentally impaired, incompetent persons, and abused or neglected children, and includes residential facilities, adult day care facilities, day treatment facilities, foster family homes, small family homes, social rehabilitation facilities, community treatment facilities, and social day care facilities. (Not included in residential uses listed in the code). BBC RESEARCH & CONSULTING SECTION V, PAGE 19   Senior citizen housing complexes: licensed housing for persons 62 years of age or older, or licensed housing for persons 55 years of age or older, including such housing facilities as retirement villas, apartments, condominiums, etc.; but not including state-licensed rest homes, group homes, convalescent hospitals, etc., which are regulated by other provisions of this development code. (These are considered the same as congregate care for the elderly in residential uses included in the code). Does the jurisdiction’s planning and building codes presently make specific reference to the accessibility requirements contained in the 1988 amendment to the Fair Housing Act? The specific amendment is not mentioned, but the discussion of fair housing laws upholds the Federal Housing Act, the Americans with Disabilities Act and the California Fair Employment Housing Act “as these statutes now exist or may be amended from time to time.” Is there any provision for monitoring compliance? Section 17.03.100 of the development code addresses enforcement for all violations of the zoning code. Public Housing Authority policies. The Housing Authority of the County of Riverside (HACR) serves as the housing authority for the City of Temecula, as well as Riverside County. Their mission is to “provide affordable decent, safe and sanitary housing opportunities to low and moderate income families including elderly and handicapped persons, while supporting programs to foster economic self-sufficiency.” The policies and procedures of the Housing Authority of the County of Riverside were reviewed as part of the FY2012-2016 AI. Section 8 voucher program. The HACR currently has funding to serve 8,550 families in Riverside County through the federal Section 8 voucher program. Approximately two percent, or 136 families, of those being served in Riverside County live in Temecula. The housing authority reports that it has approximately 50,000 families on the waiting list. The waiting list is currently closed, except to those who are 75 years or older or are veterans. According to the HACR, it is relatively easy for voucher holders to find a unit that accepts Section 8 vouchers, most likely due to the current housing market conditions in Riverside County (large supply of housing stock and low rents). According to the 2009 Riverside County AI, owners are more likely to accept Section 8 vouchers now than in 2003; however, some landlords who reduce their rent to gain occupancy may be anticipating a foreclosure and in several months families may be forced to relocate and forfeit their security deposits. The resulting challenge for the housing authority is screening the properties to determine their legitimacy. Once a family is awarded a voucher, the HACR encourages certificate holders to locate in nontraditional areas by showing them neighborhood maps with poverty concentrations and discussing the benefits of living in low poverty areas. However, families tend to select properties near their support network, which is often in a low income area. Affordable units. The housing authority also owns and manages 469 rental units scattered throughout Riverside County. None of these properties are located in Temecula. Seven percent of the units in Riverside County are accessible to persons with physical disabilities. The waiting list for public housing is open, but currently has 78,000 families. PAGE 20, SECTION V BBC RESEARCH & CONSULTING Client demographics. There are 136 families in Temecula receiving housing assistance in the form of Section 8 vouchers. There are another 1,412 families on the waiting list for housing services. Of those currently holding vouchers, 26 percent are Hispanic and 14 percent are African American. Eighty- four percent are elderly or disabled and 14 percent are families with children. Figure V-16 compares the characteristics of families on the waiting list for Section 8 vouchers in Temecula with the waiting list in Riverside County as a whole. Figure V-16. HACR Section 8 Waiting List, City of Temecula Source: Housing Authority of the County of Riverside. Affordable Development Temecula’s Redevelopment Agency has financed twelve affordable housing projects within the city, creating 574 multi-family rental units to serve low and moderate income families within the City of Temecula. The redevelopment agency focuses on improving blighted conditions, which are often found in under-resourced areas. As a result, most affordable development projects are concentrated in the low income portions of the city. Figure V-14. Affordable Housing and Low Income Concentration, City of Temecula, 2010 Source: 2009 Claritas, City of Temecula and BBC Research & Consulting. Waiting list total 1,412 53,688 Extremely low income <=30% AMI 69% 77% Elderly families 15% 7% Families with Disabilities 25% 21% Families with children 60% 64% Temecula Riverside County BBC RESEARCH & CONSULTING SECTION V, PAGE 21 The following figure summarizes the city’s inventory of affordable housing developments and the number of Section 8 vouchers currently being used in the City of Temecula. As of January, 2012, there are 710 families receiving some form of rental housing assistance in Temecula. Figure V-17. Affordable Housing and Section 8 Vouchers, City of Temecula, 2012 Source: Housing Authority of Riverside County and BBC Research & Consulting. Fair Lending Analysis This section contains an analysis of mortgage loan and community reinvestment data. Community Reinvestment Act (CRA) ratings and Home Mortgage Disclosure Act (HMDA) data are commonly used in AI’s to examine fair lending practices within a jurisdiction. The Federal Financial Institutions Examination Council (FFIEC)8 is responsible to facilitate public access to data that depository institutions must disclose under the Home Mortgage Disclosure Act of 1975 (HMDA) and the aggregation of annual HMDA data, by census tract, for each metropolitan statistical area (MSA). CRA compliance. The CRA is federal legislation requiring that financial institutions progressively seek to enhance community development within the area they serve. On a regular basis, financial institutions submit information about mortgage loan applications as well as materials documenting their community development activity. The records are reviewed to determine if the institution satisfied CRA requirements. The assessment includes a review of records as related to the following:   Commitment to evaluating and servicing community credit needs;   Offering and marketing various credit programs;   Record of opening and closing of offices; 8 The Council is a formal interagency body empowered to prescribe uniform principles, standards and report forms for the federal examination of financial institutions by the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) and to make recommendations to promote uniformity in the supervision of financial institutions. Rancho Creek Apts. 30 Rancho West Apts. 150 Mission Village Apts. 76 Riverbank Senior Apts. 65 Dalton Historical Building (Dalton II) 24 Palomar Heritage Building (Dalton III) 22 Temecula Reflections 11 Summerhouse 20 Warehouse at Creekside 32 Oaktree Apts. 40 Rancho California Apts. 55 Creekside Apts. 49 Total Units 574 Section 8 Voucers used in Temecula 136 Total Rental Subsidized Units/Vouchers 710 Number of Units Affordable Housing Developments in Temecula PAGE 22, SECTION V BBC RESEARCH & CONSULTING   Discrimination and other illegal credit practices; and   Community development initiatives. The data are evaluated and a rating for each institution is determined. Ratings for institutions range from substantial noncompliance in meeting credit needs to an outstanding record of meeting community needs. Only one financial institution, Temecula Valley Bank, received CRA exams in Temecula in the past five years.9 Temecula Valley Bank was most recently examined on March 2, 2009 and received a satisfactory rating. It should be noted that large banks like Wells Fargo, Bank of America, U.S. Bank, Chase, Pacific Trust and Pacific Western are examined at their regional headquarter offices; the latest CRA exams for these banks were either Satisfactory or Outstanding. Mortgage lending. HMDA data are widely used to detect evidence of discrimination in mortgage lending. In fact, concern about discriminatory lending practices in the 1970s led to the requirement for financial institutions to collect and report HMDA data. The variables contained in the HMDA dataset have expanded over time, allowing for more comprehensive analyses and better results. However, despite expansions in the data reported, HMDA analyses remain limited because of the information that is not reported. As such, studies of lending disparities that use HMDA data carry a similar caveat: HMDA data can be used to determine disparities in loan originations and interest rates among borrowers of different races, ethnicities, genders, and location of the property they hope to own. The data can also be used to explain many of the reasons for any lending disparities (e.g., poor credit history). Yet HMDA data do not contain all of the factors that are evaluated by lending institutions when they decide to make a loan to a borrower. Basically, the data provide a lot of information about the lending decision—but not all of the information. Beginning in 2004, HMDA data contained the interest rates on higher-priced mortgage loans. This allows examinations of disparities in high-cost, including subprime, loans among different racial and ethnic groups. It is important to remember that subprime loans are not always predatory or suggest fair lending issues, and that the numerous factors that can make a loan “predatory” are not adequately represented in available data. Therefore, actual predatory practices cannot be identified through HMDA data analysis. However, the data analysis can be used to identify where additional scrutiny is warranted, and how public education and outreach efforts should be targeted. The Federal Reserve is the primary regulator of compliance with fair lending regulations. When federal regulators examine financial institutions, they use HMDA data to determine if applicants of a certain gender, race or ethnicity are rejected at statistically significant higher rates than applicants with other characteristics are. The Federal Reserve uses a combination of sophisticated statistical modeling and loan file sampling and review to detect lending discrimination. 9 All state member banks, state nonmember banks, national banks and savings associations, except small institutions, are subject to data collection and reporting requirements of CRA. A small institution is a bank or thrift that, as of December 31 of either of the prior two calendar years, had total assets of less than $250 million and was independent or an affiliate of a holding company that, as of December 31 of either of the prior two calendar years, had total banking and thrift assets of less than $1 billion. BBC RESEARCH & CONSULTING SECTION V, PAGE 23 This section uses the analysis of HMDA data to uncover:   The geographic areas in Temecula where high-cost lending and loan denials are concentrated, and the correlation of these areas with concentrations of minority and low income households;   Disparities in high-cost lending and loan denials across different racial and ethnic groups. Loan applications in Temecula. During 2010, there were 4,755 loan applications made in Temecula secured by residential properties that intended to be occupied by owners. Over half (56%) of the loan applications were for refinances, 42 percent were for home purchases and the remaining 2 percent were for home improvement. About 2,900 of these loans were conventional loans and the rest were government-guaranteed loans. Two-thirds of loan applications in Temecula during 2010 were approved and originated. Fifteen percent of all loan applications in Temecula were denied. Figure V-18 displays the action taken on Temecula loan applications in 2010. Figure V-18. Loan Applications and Action Taken, City of Temecula, 2010 Note: Does not include loans for multifamily properties or non-occupants. Source: FFIEC HMDA Raw Data, 2010 and BBC Research & Consulting. Denial rates by race and ethnicity. Figure V-19 presents denial rates by race and ethnicity. It is focused on the largest racial/ethnic groups in Temecula: White, Hispanic, Asian and African American. African American applicants had the lowest denial rate at 11 percent. Both Hispanic and Asian borrowers were denied at slightly higher rates than White borrowers. Overall, the differences in denial, origination and approval rates are modest. Loan originated (64.7%) Application approved but not accepted (5.0%) Application denied by financial institution (15.3%) Application withdrawn by applicant (11.4%) File closed for incompleteness (3.5%) PAGE 24, SECTION V BBC RESEARCH & CONSULTING Figure V-19. Result of Mortgage Loan Applications by Race and Ethnicity, City of Temecula, 2010 Note: Does not include loans for multifamily properties or non-occupants. Source: FFIEC HMDA Raw Data, 2010 and BBC Research & Consulting. Another important HMDA analysis involves examining the reasons for denial by type of loan and applicant. These characteristics may help explain some of the variation in approval rates among applicants. Figure V-20 show the reasons for denials of loan applications by race and income. As the table demonstrates, Hispanics and African Americans have a much higher proportion of loans that are denied because of credit history than Whites and Non-Hispanics, and a smaller percentage of incomplete loan applications. Figure V-20. Reasons for Denials of Loan Applications by Race and Ethnicity of Applicant, City of Temecula, 2010 Note: Does not include loans for multifamily properties or non-occupants. Source: FFIEC HMDA Raw Data, 2010 and BBC Research & Consulting. Race/Ethnicity of Applicant Overall 64.7% 5.0% 15.3% White 67.4% 4.6% 14.8% African American 68.5% 3.8% 10.8% Asian 60.1% 7.3% 15.9% non-Hispanic 67.1% 4.9% 14.6% Hispanic 64.2% 5.4% 17.1% African American / White difference 1.1% -0.8% -4.1% Asian / White difference -7.3% 2.7% 1.0% Hispanic / White difference -3.2% 0.8% 2.2% Hispanic / non-Hispanic difference -2.9% 0.5% 2.5% Loans Originated Percent of Loans Denied Percent of Applications Approved but Not Accepted by Applicant Overall 23.2% 1.5% 14.8% 23.4% 3.5% 5.3% 10.9% 0.3% 17.2% White 22.5% 1.2% 13.3% 25.4% 3.7% 5.5% 11.2% 0.0% 17.2% Black or African American 26.3% 0.0% 31.6% 15.8% 5.3% 0.0% 0.0% 5.3% 15.8% Asian 31.4% 2.0% 15.7% 19.6% 5.9% 7.8% 3.9% 0.0% 13.7% Not Hispanic or Latino 23.3% 1.5% 12.7% 26.3% 4.0% 4.8% 11.0% 0.4% 16.0% Hispanic or Latino 23.7% 2.1% 20.6% 14.4% 4.1% 8.2% 6.2% 0.0% 20.6% Unverifiable Information Credit Application Incomplete Mortgage Insurance Denied Other Race/Ethnicity of Applicant Debt-to- Income Ratio Employment History Credit History Collateral Insufficient Cash BBC RESEARCH & CONSULTING SECTION V, PAGE 25 Denial rate by income by census tract. On average, 15 percent of loan applications in Temecula are denied. However, an analysis of loan applications by census Tracts reveals that one census Tract in Temecula has a much higher denial rate of 26 percent. Lenders are much less likely to approve loans for homes located in this Census tract (432.15). Figure V-21 overlays this high denial census tract with the low income concentration map. As indicated by the map, this high rate of denial occurs in the low income concentrated block group. Figure V-21. Loan Denials and Percent of Low Income Households, City of Temecula Source: 2009 Claritas, 2010 HMDA and BBC Research & Consulting. While higher denial rates are common for lower incomes, residents of all income levels within census tract 432.15 are denied more frequently than residents with similar incomes in other parts of Temecula. Figure V-22 compares the denial rates for Temecula as a whole with Census Tract 432.15 for various income levels. Even for those earning 200 percent of MFI ($130,000 or more per year), residents of census tract 432.15 are denied 21 percent of the time, compared to only 15 percent citywide. Figure V-22. Denials by Income, City of Temecula, 2010 Notes: The HUD MFI for Temecula was $65,000 in 2010. Source: FFIEC HMDA Raw Data, 2010 and BBC Research & Consulting. Income Level Overall 15.3% 26.3% 200% MFI or greater 15.3% 21.0% 150%-199% MFI 13.1% 20.8% 100%-149% MFI 13.7% 35.7% Less than 100% MFI 18.3% 53.8% Denials in Temecula Denials in Census Tract 432.15 PAGE 26, SECTION V BBC RESEARCH & CONSULTING These data suggest that it is significantly harder for borrowers who live in the city’s lowest income areas to obtain a mortgage loan, even for moderate and high income households. Subprime analysis. This section examines how often minorities in Temecula received subprime loans compared to Whites. For the purposes of this section, we define “subprime” as a loan with an APR of more than three percentage points above comparable Treasuries. This is consistent with the intent of the Federal Reserve in defining “subprime” in the HMDA data. According to the 2010 HMDA data, there were only 18 subprime loans in Temecula, of 3,077 originated loans. There was no indication that subprime loans were targeted to specific racial or ethnic groups. Complaints and Legal Review This section reviews fair housing complaint data and legal cases related to fair housing violations to highlight the prevalence of and trends in fair housing violations. Fair housing complaint data and legal cases are important to pinpoint the types of discrimination that are most prevalent and detect improvements or deterioration in fair housing conditions. HUD fair housing complaints. Residents who feel they have been discriminated against may contact HUD directly or the Fair Housing Council of Riverside County. Contacting HUD. Housing discrimination complaints filed with HUD may be done online at (http://www.hud.gov/complaints/housediscrim.cfm), by calling 1-800-669-9777 or by contacting the HUD Regional Office of Fair Housing and Equal Opportunity in San Francisco at 1-800-347-3739. When HUD receives a complaint, the department will notify the person who filed the complaint, then notify the alleged violator and allow that person to submit a response. The complaint will be investigated to determine whether there has been a violation of the Fair Housing Act. A complaint may be resolved in a number of ways. First, HUD attempts to reach an agreement between the two parties involved. If achieved, this “conciliation agreement” must lay out provisions to protect the filer of the complaint and public interest. If an agreement is signed, HUD will take no further action unless the agreement is breached, in which case HUD will recommend that the Attorney General file suit. If a person needs immediate help to stop a serious problem being caused by a Fair Housing Act violation, HUD may assist as soon as a complaint is filed. HUD may authorize the Attorney General to go to court to seek temporary or preliminary relief, pending the outcome of the complaint, if irreparable harm is likely to occur without HUD's intervention and there is substantial evidence indicating a violation of the Fair Housing Act. From January 1, 2006 through December 15, 2011, five complaints were filed by or against Temecula residents and businesses. Four complaints were brought on the basis of discrimination because of disability; the other was because of race. In Riverside County as a whole, 272 complaints were filed over the same period. Forty-six percent were brought on the basis of discrimination because of disability and 33 percent on the basis of discrimination because of race, color or national origin. Familial status accounted for another 11 percent of complaints in Riverside County followed by sex (8%) and religion (2%). BBC RESEARCH & CONSULTING SECTION V, PAGE 27 Figure V-23 displays the complaints filed in Temecula over the past six years. The most common issues cited were discriminatory refusal to rent and negotiate for rental and failure to make reasonable accommodation. Two complaints closed following a successful settlement. Two more closed after HUD found “no reasonable cause to believe that housing discrimination occurred.” 10 Figure V-23. Fair Housing Complaints, City of Temecula, 2006-2011 Notes: Complaints reported for 2011 includes those filed between 1/1/2011 and 12/15/2011. Complainants are allowed to cite more than one issue when filing a complaint. Source: HUD and BBC Research & Consulting. Contacting the Fair Housing Council of Riverside County. Residents with fair housing complaints can also contact the Fair Housing Council of Riverside County (FHCRC), a county-wide non-profit organization that seeks to affirmatively address and promote fair housing rights and further other housing opportunities for all persons without regard to race, color, national origin, religion, sex, familial status, presence of children, disability, ancestry, marital status, or other arbitrary factors. The FHCRC provides the following fair housing services to communities throughout Riverside County:   Anti-discrimination: Receive, investigate, resolve (through conciliation or referral to enforcement agency: HUD; DFEH; attorney) housing discrimination complaints; also conduct workshops, seminars; disseminate written fair housing information. In order to file a complaint a resident can call the FHCRC or complete a complaint form on their website.   Landlord-tenant: Receive, investigate, mediate, counsel renter/owner rights and responsibilities; also conduct workshops, seminars; disseminate written landlord-tenant information.   Training and technical assistance: Conduct property management training workshops and seminars; serve on quasi-government technical advisory and working groups. 10For a definition of no cause determination, please visit: http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/complaint-process Year Filed Issue(s) Cited 2006 0 2007 1 Disability Discriminatory terms, conditions, privileges and failure to make/permit reasonable accommodation Conciliated or Resolved, with compensation of $1,300 2008 1 Disability Failure to make reasonable accommodation Admin 2009 0 2010 1 Disability Discrimination in the making of loans Conciliated or Resolved 1 Race Discriminatory refusal to rent and negotiate; discriminatory advertising, statements and notices; and discriminatory acts under Section 818 No Cause 2011* 1 Disability Discriminatory refusal to rent and negotiate No Cause Total 5 Number of Complaints Reason for Discrimination Reason for Closure PAGE 28, SECTION V BBC RESEARCH & CONSULTING   Enforcement of housing rights: Conduct housing discrimination audits and tests; refer discrimination cases to HUD, DFEH or private attorney.   Administrative hearings: Conduct administrative hearings for Public Housing Authority tenant grievance and Section 8 hearings.   Special projects: The FHCRC conducts and participates in various activities throughout the year.   Foreclosure prevention: The FHCRC offers confidential one-on-one counseling with certified housing counselors for residents in fear of foreclosure. The counseling session is designed to help determine the cause of the delinquency, develop a monthly spending plan and discuss possible options to enable residents to meet their mortgage obligations.   First time buyers: HUD requires the completion of a Homebuyer Counseling Course for all borrowers receiving First Time Homebuyer Program assistance. Legal cases. As part of the fair housing analysis, recent legal cases were reviewed to determine significant fair housing issues and trends in the area. Although there have been no legal cases in the City of Temecula, there were several recent legal cases in Riverside County; these are highlighted to demonstrate regional trends in fair housing violations. The most recent case involved housing conditions in a mobile home park. One case involved age restrictions in portions of unincorporated Riverside County. The final two cases took place in the City of Riverside and involved discrimination on the basis of sex, race and/or family status. These cases were found on websites maintained by the Department of Justice, the National Fair Housing Advocate and HUD. In many cases, text was borrowed directly from the legal briefs. The United States v Harvey Duro (2009). Harvey Duro, a member of the Torres Martinez Desert Cahuilla Indian tribe operated a desert trailer park commonly called “Duroville” mobile home park, on the Torres Martinez Indian Reservation. According to a 2007 Department of Justice press release, the park consists of 300 to 400 trailers inhabited by 2,000 to 6,000 persons, predominantly migrant farm workers and their families. Based on health and safety concerns, the Bureau of Indian Affairs issued a cease and desist order to Duro in 2003 which required him to immediately stop operating the trailer park and associated businesses, and to return the property to its original condition. Duro agreed to make improvements to bring the facility into compliance with government codes and regulations but failed to do so. In 2007 the United States filed a lawsuit against Duro alleging that Duro was operating without a permit, that conditions at the trailer park posed an imminent threat to the health and safety of several thousand residents and that Duro failed to make improvements he promised to make in 2004. Some of the substandard conditions in Duroville included defective construction, faulty electrical wiring, unhealthful distribution of drinking water and a deeply flawed septic system. In 2009, the Court provided the following fundamental findings and conclusions: (1) The commercial mobile home park on its allotment to Harvey Duro, Sr., is unlawful; (2) despite recent efforts, the mobile home park is unsafe and unhealthy; (3) despite recent efforts, there is no presently available relocation facilities for the vast majority of the residents of the Park; and (4) immediate closure of the Park under current circumstances would create an unacceptable humanitarian crisis for thousands of people. BBC RESEARCH & CONSULTING SECTION V, PAGE 29 Based on these findings, the Court appointed a Receiver to administer and manage the Park for two years. The Receiver was tasked with addressing a number of health and safety concerns and encouraging park residents to relocate to safe, healthy, affordable and available housing. The court also encouraged local governmental and non-governmental organizations who had been and wished to be involved in resolving this crisis to continue their efforts to develop safe, healthy, affordable, and available housing for the residents of the Park. Gibson v. County of Riverside (1995, 1997, 2002). Since 1978, the County of Riverside has enacted ordinances imposing age restrictions on residents in certain areas within the unincorporated areas of Riverside County. Although the specific age restrictions have changed through the years, the ordinances effectively limited occupancy to seniors. In May of 1994, several residents filed a complaint against the county claiming the county's use of its zoning power to impose age restrictions on the residential use of real property violates the Fair Housing Act, the California Fair Employment and Housing Act and the California Unruh Civil Rights Act. In 1996, the Court concluded the age-restricting ordinance was null and void based on California state code which declares any zoning decision by a county to be "null and void" if it denies to anyone the enjoyment of residence because of age. After a series of appeals, in 2002 the Court held that the county’s actions in enacting ordinances imposing age restrictions on persons occupying dwelling units in certain areas violated the Fair Housing Act’s prohibition on familial-status based discrimination. United States v. Wingo (2002). In December of 2000 a complaint was filed against Wingo Properties that alleged that the owners and managers of two Riverside apartment complexes engaged in a pattern of discrimination on the basis of race, national origin, and by sexually harassing their female tenants. Apartment manager Vinnie Stancyk subjected female tenants at the complex to repeated and unwelcome sexual harassment, including conditioning the privileges of tenancy on tenants performing sexual acts. According to the Justice Department, the property owners William David Wingo and Karen Wingo Cipriano knew or should have known about this harassment and took no action to halt or prevent it. In addition, the defendants engaged in a variety of discriminatory conduct toward black and Latino apartment-seekers, including: refusing to rent to them, throwing away their rental applications, using racial epithets toward them, refusing to let them have minority guests, and evicting them because of their race or national origin. On August 8, 2002, the court entered a consent order that required the defendants to pay $35,000 in civil penalties and $355,000 into a fund to compensate victims of the defendants' discriminatory conduct. The consent order also barred the manager of the apartment complexes from working in the rental real estate business. In addition, the owners of the complexes were required to train all employees on their obligations under the Fair Housing Act, implement a discrimination complaint policy, retain an independent agency to conduct at least three fair housing tests per year at each of their properties, and submit to monitoring by the Justice Department. Smoke Tree Apartments (1997). In another Riverside case, Smoke Tree Apartments managers John and Mary Harding agreed to pay $100,000 to settle claims that it had violated the Fair Housing Act by discriminating on the basis on race and family status. Tenants originally voiced their complaints to the Fair Housing Council over the alleged segregation of families with children at Smoke Tree Apartments. Tenants claimed that the owners and managers had reserved one side of the complex for families with children and the other side of the complex for single or married adults who did not have PAGE 30, SECTION V BBC RESEARCH & CONSULTING children. The plaintiffs also claimed that young children were forbidden to cross over into the "adult" side of the Smoke Tree complex. Families with children were also allegedly denied use of some of the Smoke Tree's services and facilities. According to the suit, children were harassed by managers and unreasonable rules and regulations against children and their families were enforced at Smoke Tree. The claims of racial discrimination at Smoke Tree Apartments came from a former manager of the complex. She said in her complaint that she was ordered by the owners to apply discriminatory rental policies against minorities and families with children. The former manager said that the owners of Smoke Tree Apartments were aware that the policies were discriminatory. Fair Housing Impediments, Recommendations and Action Plan This section summarizes the impediments to fair housing choice identified in the research conducted for the FY2012-2016 AI and recommends a Fair Housing Action Plan for FY2012-2016. Fair housing choice in Temecula. As a relatively new city, Temecula does not have past cultural or institutional barriers to fair housing. Although Temecula residents predominantly identify themselves as non-Hispanic White, the city has a sizable population of residents with various other races and Hispanic ethnicity. This analysis found no geographic areas in the city with significant concentrations by race or ethnicity. Instead, the city has two areas where low income households are concentrated: The two block groups just east of I-15 contain 19 and 39 percent of low income households, respectively. These are also the areas within the city where mortgage loan denials were the highest in 2010. Even for those earning 200 percent of MFI ($130,000 or more per year), residents of one low income census tract (432.15) are denied 21 percent of the time, compared to only 15 percent citywide. About half of the city’s affordable housing developments are located in the concentrated areas. Fair housing barriers related to low income and low income household concentrations were named as the top two in the city according to residents. It should be noted, however, that all potential barriers were rated very low by residents (2.4 on a scale of 0 to 9, where 9 is the most serious barrier), including these two. Residents report low levels of past experience with housing discrimination (just three percent believe they have been discriminated against in finding housing and five percent were not sure). There were only five fair housing complaints filed in Temecula during the past five years and no fair housing lawsuits. The vast majority of residents responding to the AI survey agree with the statement, “I feel that people like me and my family are welcome in Temecula.” Stakeholders, in contrast, ranked potential fair housing barriers with higher levels of seriousness. Stakeholders named lenders’ failure to disclose private mortgage insurance company determinations and NIMBYism as the top fair housing barriers in Temecula (both with ratings of 6.6). BBC RESEARCH & CONSULTING SECTION V, PAGE 31 Impediments to Fair Housing Choice and Fair Housing Action Plan This section identifies the impediments to fair housing choice found through the research conducted for this AI. This section also presents recommended action items for mitigating the identified barriers. According to HUD, an impediment occurs only if it affects a protected class. Where a protected class is not directly affected, we have identified a fair housing “observation.” Observation No. 1—Lack of affordable housing could become a future barrier to housing choice. According to the survey completed for this AI, one in 10 residents were unable to find affordable housing in Temecula when there were looking for a place to live. Temecula’s median rent in 2010 was $1,252. Only 36 percent of the city’s renters earn the $50,080 per year necessary to afford median rent without being cost burdened. A quantitative comparison of supply and demand for rental housing in Temecula found that there is a substantial shortage of rental units affordable to low income households. In 2010, 45 percent of all renter households in Temecula earned less than $35,000, but only 11 percent of all rental units were affordable to this group. There are approximately 1,400 Temecula residents currently on the waiting list for housing services with the Housing Authority of the County of Riverside. Is this a fair housing barrier? Lack of affordable housing can lead to income, racial and ethnic segregation and may disproportionately restrict housing choices for certain protected classes. This may occur because racial and ethnic minorities have lower incomes or because persons with disabilities require specific housing accommodations and need affordable housing due to limitations on employment. Although it does not appear that the shortage of affordable rentals in the city has led to racial or ethnic segregation, continued concentration of affordable housing in certain areas of the city could lead to segregated conditions.   Action item No. 1-1. Continue to diversify housing stock. The City of Temecula should make a concerted effort to increase the number of affordable rentals located east of I-15.   Action Items No. 1-2. Address the basic needs of low income households. The city should also use CDBG and other HUD funds it may receive to preserving the safety net for its lowest income households who have difficulty finding affordable rentals and are likely cost burdened and/or at risk of homelessness. This could include supporting homeless shelters, food pantries, emergency assistance programs and social service operations. Observation No. 2—Steering may be a fair housing impediment. Anecdotal evidence from stakeholders suggests that steering by real estate agents could be a barrier to fair housing for Temecula residents. Stakeholders also rated neighborhood objections to affordable or assisted housing as one of the most serious barriers to fair housing. Neighborhood opposition to certain types of housing or residents could influence where real estate agents show their clients homes. PAGE 32, SECTION V BBC RESEARCH & CONSULTING The residents in the AI survey who believe they have experienced housing discrimination in Temecula most commonly described this discrimination as steering: h “I felt I was being shown houses where the local predominately White community would want me to live in.” h “Realtor steering us away from certain homes.” h “Single parent.” h “We were discriminated against by a realtor (seller's agent) who was not ethical and did not present our offer to the seller.” Why is this a fair housing barrier? Steering is a violation of the Federal Fair Housing Act. In addition, steering can perpetuate segregated housing conditions.   Action Item 2. Conduct fair housing outreach and education with Temecula’s real estate professionals. City staff should present the results of the AI at an event with real estate professionals and engage in a discussion about steering as a potential impediment to housing choice. The city should also consider working with a task force sponsored by the real estate community to better educate residents about fair housing rights (also see Action Item No. 5). Finally, the city may want to work with a regional fair housing organization to conduct testing about steering, especially when residential sales activities increase. Impediment No. 3—Zoning regulations could be improved to facilitate affordable housing development. Although the zoning review did not find any egregious barriers to affordable housing creation in Temecula, the review highlighted two fair housing concerns:   Neither household nor family is defined in the city’s zoning code, which may exclude unrelated persons with disabilities from living together.   Congregate care and residential care facilities with seven or more occupants that are not specifically for the elderly are omitted from residential zoning uses. This may effectively exclude congregate care and residential care of seven or more occupants for those with disabilities.   Action Item 3. The city should clarify the definition of family so that it does not exclude unrelated parties living in group home settings and add congregate care and residential care facilities with seven or more occupants to some residential zones. Why is this a fair housing barrier? Zoning regulations that could be interpreted to disallow group homes occupied by persons with disabilities in residential settings can create barriers to fair housing choice. It is in a city’s best interest to be transparent about its group home zoning regulations to avoid misinterpretations that cause unequal access to housing for persons with disabilities. Observation No. 4—High loan denials in low income areas. It is significantly harder for borrowers who live in the city’s lowest income areas to obtain a mortgage loan, even for moderate and high income households. This may be an indicator that the private market is unwilling to invest in such areas, specifically in the neighborhood immediately west of I-15. Disinvestment could lead to neighborhood decline if residents are unable to secure loans to improve and maintain their homes. BBC RESEARCH & CONSULTING SECTION V, PAGE 33 Is this a fair housing barrier? Low income residents are not a protected class under Fair Housing Law; therefore, lack of mortgage loan approvals in low income areas (if they are not also minority concentrated areas) is not a fair housing impediment. However, it is prudent for the city to address this potential issue to avoid neighborhood deterioration caused by lack of private capital invested in low income areas.   Action Item No. 4. Invest in low income neighborhoods. The city should invest in community projects in its low income areas. Such investments will mitigate neighborhood deterioration, which is particularly important given the high rates of loan denials in the areas east of I-15. In addition, public improvements in low income areas ensure that the amenities offered in these areas are comparable to amenities in higher income areas. Inequality of neighborhood amenities can become a fair housing concern if lower quality neighborhoods are predominantly occupied by members of protected classes. Observation No. 5—There is a lack of information and knowledge about fair housing. Information about fair housing is difficult to find on the city’s website and, according to the survey conducted for this AI, most residents are unaware about how to report fair housing violations. Although few residents believe that they have experienced housing discrimination, only 10 percent of residents know who to contact to report housing discrimination. Stakeholders also expressed concern about the availability of fair housing information and resources. Why is this a concern? Lack of fair housing information can become an impediment if such information is not equally available to all protected classes. In addition, an impediment could be created if inadequate fair housing information leads to lack of corrective action by housing providers and real estate professionals.   Action Item No. 5. Improve access to fair housing information. The City of Temecula should add easy to find fair housing information on its website. An example of a comprehensive website with fair housing information in a semi-rural, affluent jurisdiction in Colorado is Douglas County’s (see http://www.douglas.co.us/CDBG/Fair_Housing.html). It is critical that the city have a link to HUD’s complaint-taking website and the State of California Fair Employment and Housing Commission, where residents may file complaints if they desire.   The city should also disseminate fair housing information quarterly during the year, piggybacking on well-attended events (e.g., summer festivals, public school events. Some communities sponsor fair housing poster contests for local school children).