Alhambra

144 Pages·2013·2.26 MB·English

City of Alhambra

Analysis of Impediments to
Fair Housing Choice

City of Alhambra
111 South First Street
Alhambra, CA 91801

May 2013

Table of Contents

Chapter Page

Chapter 1: Introduction .............................................................................................................. 1 
A.  Background ....................................................................................................................... 1 
B.  Fair Housing Legal Framework ......................................................................................... 2 
C.  Purpose of Report ............................................................................................................. 5 
D.  Organization of Report ...................................................................................................... 6 
E.  Data Sources .................................................................................................................... 6 
F.  Public Participation ............................................................................................................ 7 

Chapter 2: Community Profile ................................................................................................... 9 
A.  Demographic Profile .......................................................................................................... 9 
B.  Household Profile ............................................................................................................ 14 
C.  Income Profile ................................................................................................................. 15 
D.  Special Needs Households ............................................................................................. 20 
E.  Housing Profile ................................................................................................................ 28 
F.  Housing Cost and Affordability ........................................................................................ 33 
G.  Housing Problems ........................................................................................................... 36 
H.  Assisted Housing ............................................................................................................ 38 
I.  Provision of Services and Accessibility to Public Transit ................................................ 44 

Chapter 3: Lending Practices .................................................................................................. 50 
A.  Background ..................................................................................................................... 50 
B.  Overall Lending Patterns ................................................................................................. 53 
C.  Lending Patterns by Race/Ethnicity and Income Level ................................................... 55 
D.  Lending Patterns by Census Tract Characteristics ......................................................... 57 
E.  Major Lenders ................................................................................................................. 59 
F.  Subprime Lending ........................................................................................................... 61 
G.  Purchased Loans ............................................................................................................ 64 
H.  Review of Lending Patterns by Specific Lender .............................................................. 65 
I.  Foreclosures ................................................................................................................... 66 

Chapter 4: Public Policies and Practices ............................................................................... 69 
A.  Policies and Programs Affecting Housing Development ................................................. 69 
B.  Building, Occupancy, Health and Safety Codes.............................................................. 78 
C.  Affordable Housing Development ................................................................................... 79 
D.  Other Land Use Policies, Programs, and Controls ......................................................... 82 
E.  Policies Causing Displacement or Affect Housing Choice of Minorities and Persons with
Disabilities ....................................................................................................................... 83 
F.  Local Housing Authorities ............................................................................................... 84 
G.  Community Participation ................................................................................................. 85 

Chapter 5: Fair Housing Practices .......................................................................................... 87 
A.  Fair Housing Practices in the Homeownership Market ................................................... 87 
B.  Fair Housing Practices in the Rental Housing Market ..................................................... 93 
C.  Fair Housing Services ..................................................................................................... 99 
D.  Hate Crimes .................................................................................................................. 108 
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E.  NIMBYism ..................................................................................................................... 109 

Chapter 6: Progress since Last AI ........................................................................................ 110 
A.  Expanding Affordable Housing Opportunities ............................................................... 110 
B.  Access to Financing ...................................................................................................... 113 
C.  Fair Housing Services ................................................................................................... 115 
D.  Public Policies ............................................................................................................... 116 

Chapter 7: Fair Housing Action Plan .................................................................................... 117 
A.  Ongoing Impediments ................................................................................................... 117 
B.  New Impediments Identified .......................................................................................... 121 

Signature Page ........................................................................................................................ 122 

Appendix A: Summary of Public Outreach .......................................................................... A-1 
A.1 HCDA Public Meeting ................................................................................................... A-1 

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List of Tables

Table 1: Population Growth .......................................................................................................... 9 
Table 2: Age Characteristics ....................................................................................................... 10 
Table 3: Race and Ethnicity ........................................................................................................ 11 
Table 4: Table: English Language Ability .................................................................................... 13 
Table 5: Household Characteristics and Trends (1990-2010) .................................................... 14 
Table 6: Income Categories ........................................................................................................ 15 
Table 7: Median Household Income (2000-2010) ...................................................................... 16 
Table 8: Income Distribution (2005-2009) ................................................................................... 16 
Table 9: Housing Assistance Needs of Low and Moderate Income Households (2005-2009) .. 17 
Table 10: Income by Race/Ethnicity (2005-2009) ....................................................................... 18 
Table 11: Senior Profile (2005-2011) .......................................................................................... 20 
Table 12: Persons with Disabilities Profile (2009-2011) .............................................................. 22 
Table 13: Homeless Service Providers ....................................................................................... 26 
Table 14: Housing Stock Growth ................................................................................................ 29 
Table 15: Housing Characteristics and Trends ........................................................................... 29 
Table 16: Housing Tenure........................................................................................................... 30 
Table 17: Lead-Based Paint Estimates (2006-2010) .................................................................. 33 
Table 18: Average Apartment Rents in Alhambra ....................................................................... 34 
Table 19: Housing Affordability Matrix – Los Angeles County (2013) .......................................... 35 
Table 20: Race/Ethnicity of Voucher Recipients ......................................................................... 39 
Table 21: Assisted Rental Housing in Alhambra ......................................................................... 40 
Table 22: Licensed Community Residential Care Facilities by Type .......................................... 42 
Table 23: Alhambra Major Employers ......................................................................................... 47 
Table 24: Disposition of Home Loans (2007 and 2011) .............................................................. 54 
Table 25: Demographics of Loan Applicants vs. Total Population (2011) ................................... 56 
Table 26: Lending Patterns by Race/Ethnicity (2007 and 2011) ................................................. 56 
Table 27: Outcomes Based on Census Tract Income (2007 and 2011) ..................................... 58 
Table 28: Outcomes Based on Minority Population of Census Tract (2007 and 2011) ............... 58 
Table 29: Top Lenders (2007 and 2011) ..................................................................................... 59 
Table 30: Top Lenders by Race/Ethnicity of Applicant (2011) .................................................... 61 
Table 31: Reported Spread on Loans by Race/Ethnicity (2007 and 2011) ................................. 62 
Table 32: Percent of Purchased Loans by Race (2011) ............................................................. 65 
Table 33: Residential Land Use Designations ............................................................................ 71 
Table 34: Parking Requirements................................................................................................. 73 
Table 35: Permitted Uses in Zoning Regulations ........................................................................ 74 
Table 36: Planning and Development Fees ................................................................................ 80 
Table 37: Potential Discrimination in Listings of For-Sale Homes .............................................. 88 
Table 38: Potential Discrimination in Listings of Homes for Rent ............................................... 94 
Table 39: Clients Served (2007-2012) ...................................................................................... 100 
Table 40: Clients Served by Race (2007-2012) ........................................................................ 100 
Table 41: Clients Served by Ethnicity (2007-2012) ................................................................... 101 
Table 42: Clients Served by Income Level (2007-2012) ........................................................... 101 
Table 43: Clients Served by Household Characteristics (2007-2012) ...................................... 101 
Table 44: Discrimination Complaints by Protected Classification (2007-2012) ......................... 102 
Table 45: Findings and Dispositions (2007-2012) ..................................................................... 103 
Table 46: Selected Case Summaries ........................................................................................ 103 
Table 47: Summary of Housing Issues (2007-2012) ................................................................. 105 
Table 48: Basis for Discrimination of Cases filed with HUD (2006-2011) ................................. 107 
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Table 49: Disposition of Fair Housing Cases Filed with HUD (2006-2011) ............................... 107 
Table 50: Hate Crimes (2007-2011) .......................................................................................... 108 

List of Figures

Figure 1: Concentrations of Hispanic Population ........................................................................ 12 
Figure 2: Language Spoken at Home ......................................................................................... 13 
Figure 3: Concentration of Low and Moderate Income Population ............................................. 19 
Figure 4: Age of Housing Stock .................................................................................................. 31 
Figure 5: Median Home Prices .................................................................................................... 34 
Figure 6: Location of Affordable Housing .................................................................................... 41 
Figure 7: Location of Community Care Facilities ........................................................................ 43 
Figure 8: Public Transit and Major Employers ............................................................................ 46 
Figure 9: Distribution of Title I Schools ....................................................................................... 48 
Figure 10: Location of Foreclosures as of January 2013 ............................................................ 68 

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Chapter 1: Introduction

Equal access to housing is fundamental to each person in meeting essential needs and
pursuing personal, educational, employment, or other goals. In recognition of equal housing
access as a fundamental right, the federal government and the State of California have both
established fair housing choice as a right protected by law.

This report presents a demographic profile of the City of Alhambra, assesses the extent of
housing needs among specific income groups, and evaluates the availability of a range of
housing choices for residents. This report also analyzes the conditions in the private market and
public sector that may limit the range of housing choices or impede a person’s access to
housing. As the name of the report suggests the document reviews “impediments” to fair
housing. While this report also assesses the nature and extent of housing discrimination, the
focus is on identifying impediments that may prevent equal housing access and developing
solutions to mitigate or remove such impediments.

A. Background

Located in the San Gabriel Valley, Alhambra is a densely developed urban community
encompassing 7.6 square miles. Originally part of a large ranch owned by Benjamin “don
Benito” Wilson, the City of Alhambra incorporated in 1903. Located on the eastern edge of Los
Angeles, the City is now known as the “Gateway to the San Gabriel Valley.” The San Gabriel
Valley was one of the fastest growing regions in Los Angeles County during the last part of the
twentieth century. Surrounding communities include the cities of South Pasadena and San
Marino to the north, the city of Monterey Park to the south, the city of San Gabriel to the east,
and the city of Los Angeles to the west.

Alhambra experienced its first significant growth during the 1920s, when the population more
than tripled from 9,000 to 29,000 residents. Alhambra continued to grow much more slowly
through the next decades. Between 1980 and 1990, however, the City experienced another
growth spurt, increasing in population by almost 27 percent to 82,000 residents. Population
growth leveled off during the last 20 years, with only a slight increase (less than five percent)
between 1990 and 2000 but a decrease (three percent) in population between 2000 and 2010.

Housing in Alhambra originally consisted almost entirely of single-family homes. However, as
the City grew and vacant land became increasingly limited, higher-density housing was
necessary to accommodate a growing population. During the 1960s, modern apartment
buildings began to replace single-family residential structures, and now nearly half of the
housing stock in the City consists of multi-family housing.

Alhambra’s population has become increasingly ethnically diverse during the last two decades.
Asians represented the largest proportion of residents at the time of the 1990 Census, with a 37
percent share of the population, followed by 36 percent for Hispanics and 24 percent for Whites.
In 2000, the Census revealed that the Asian population had grown to 47 percent, while the
proportion of Hispanics remained relatively stable at 36 percent. The White population declined
the most between 1990 and 2000, decreasing from 24 percent to 14 percent of the total
population. By the 2010 Census, the proportion of Asian population grew to 53 percent, with a
corresponding decline in the White population (10 percent of the City total).

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B. Fair Housing Legal Framework

Fair housing is a right protected by both Federal and State of California laws. Among these
laws, virtually every housing unit in California is subject to fair housing practices.

1. Federal Laws

The Fair Housing Act of 1968 and Fair Housing Amendments Act of 1988 (42 U.S. Code §§
3601-3619, 3631) are federal fair housing laws that prohibit discrimination in all aspects of
housing, including the sale, rental, lease, or negotiation for real property. The Fair Housing Act
prohibits discrimination based on the following protected classes:

 Race or color
 Religion
 Sex
 Familial status
 National origin
 Disability (mental or physical)

Specifically, it is unlawful to:

 Refuse to sell or rent after the making of a bona fide offer, or to refuse to negotiate for
the sale or rental of, or otherwise make unavailable or deny, a dwelling to any person
because of race, color, religion, sex, disability, familial status, or national origin.

 Discriminate against any person in the terms, conditions, or privileges of sale or rental of
a dwelling, or in the provision of services or facilities in connection therewith, because of
race, color, religion, sex, disability, familial status, or national origin.

 Make, print, or publish, or cause to be made, printed, or published any notice, statement,
or advertisement, with respect to the sale or rental of a dwelling that indicates any
preference, limitation, or discrimination based on race, color, religion, sex, disability,
familial status, or national origin, or an intention to make any such preference, limitation,
or discrimination.

 Represent to any person because of race, color, religion, sex, disability, familial status,
or national origin that any dwelling is not available for inspection, sale, or rental when
such dwelling is in fact so available.

 For profit, induce or attempt to induce any person to sell or rent any dwelling by
representations regarding the entry or prospective entry into the neighborhood of a
person or persons of a particular race, color, religion, sex, disability, familial status, or
national origin.

Reasonable Accommodations and Accessibility

The Fair Housing Amendments Act requires owners of housing facilities to make “reasonable
accommodations” (exceptions) in their rules, policies, and operations to give people with
disabilities equal housing opportunities. For example, a landlord with a "no pets" policy may be
required to grant an exception to this rule and allow an individual who is blind to keep a guide
dog in the residence. The Fair Housing Act also requires landlords to allow tenants with
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disabilities to make reasonable access-related modifications to their private living space, as well
as to common use spaces, at the tenant’s own expense. Finally, the Act requires that new multi-
family housing with four or more units be designed and built to allow access for persons with
disabilities. This includes accessible common use areas, doors that are wide enough for
wheelchairs, kitchens and bathrooms that allow a person using a wheelchair to maneuver, and
other adaptable features within the units.

HUD Final Rule on Equal Access to Housing in HUD Programs

On March 5, 2012, the U.S. Department of Housing and Urban Development (HUD) published
the Final Rule on “Equal Access to Housing in HUD Programs Regardless of Sexual Orientation
or Gender Identity.” It applies to all McKinney-Vento-funded homeless programs, as well as to
permanent housing assisted or insured by HUD. The rule creates a new regulatory provision
that generally prohibits considering a person’s marital status, sexual orientation, or gender
identity (a person’s internal sense of being male or female) in making homeless housing
assistance available.

2. California Laws

The State Department of Fair Employment and Housing (DFEH) enforces California laws that
provide protection and monetary relief to victims of unlawful housing practices. The Fair
Employment and Housing Act (FEHA) (Government Code Section 12955 et seq.) prohibits
discrimination and harassment in housing practices, including:

 Advertising
 Application and selection process
 Unlawful evictions
 Terms and conditions of tenancy
 Privileges of occupancy
 Mortgage loans and insurance
 Public and private land use practices (zoning)
 Unlawful restrictive covenants

The following categories are protected by FEHA:

 Race or color
 Ancestry or national origin
 Sex
 Marital status
 Source of income
 Sexual orientation
 Familial status (households with children under 18 years of age)
 Religion
 Mental/physical disability
 Medical condition
 Age

In addition, the FEHA contains similar reasonable accommodations and accessibility provisions
as the federal Fair Housing Amendments Act.

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The Unruh Civil Rights Act provides protection from discrimination by all business
establishments in California, including housing and accommodations, because of age, ancestry,
color, disability, national origin, race, religion, sex, and sexual orientation. While the Unruh Civil
Rights Act specifically lists “sex, race, color, religion, ancestry, national origin, disability, and
medical condition” as protected classes, the California Supreme Court has held that protections
under the Unruh Act are not necessarily restricted to these characteristics.

Furthermore, the Ralph Civil Rights Act (California Civil Code Section 51.7) forbids acts of
violence or threats of violence because of a person’s race, color, religion, ancestry, national
origin, age, disability, sex, sexual orientation, political affiliation, or position in a labor dispute.
Hate violence can be: verbal or written threats; physical assault or attempted assault; and
graffiti, vandalism, or property damage.

The Bane Civil Rights Act (California Civil Code Section 52.1) provides another layer of
protection for fair housing choice by protecting all people in California from interference by force
or threat of force with an individual’s constitutional or statutory rights, including a right to equal
access to housing. The Bane Act also includes criminal penalties for hate crimes; however,
convictions under the Act are not allowed for speech alone unless that speech itself threatened
violence.

And, finally, California Civil Code Section 1940.3 prohibits landlords from questioning potential
residents about their immigration or citizenship status. Landlords in most states are free to
inquire about a potential tenant’s immigration status and to reject applicants who are in the
United States illegally.1 In addition, this law forbids local jurisdictions from passing laws that
direct landlords to make inquiries about a person’s citizenship or immigration status.

In addition to these acts, Government Code Sections 11135, 65008, and 65580-65589.8 prohibit
discrimination in programs funded by the State and in any land use decisions. Specifically,
recent changes to Sections 65580-65589.8 require local jurisdictions to address the provision of
housing options for special needs groups, including:

 Housing for persons with disabilities (SB 520)
 Housing for homeless persons, including emergency shelters, transitional housing, and
supportive housing (SB 2)
 Housing for extremely low income households, including single-room occupancy units
(AB 2634)
 Housing for persons with developmental disabilities (SB 812)

3. Fair Housing Defined

In light of the various pieces of fair housing legislation passed at the Federal and State levels,
fair housing throughout this report is defined as follows:

A condition in which individuals of similar income levels in the same housing
market have a like range of choice available to them regardless of race, color,
ancestry, national origin, religion, sex, disability/medical conditions, age, marital
status, familial status, sexual orientation, gender identity, source of income, or
any other category which may be defined by law now or in the future.

1 http://www.nolo.com/legal-update/california-landlords-ask-immigration-citizenship-29214.html
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