Objectives: to advocate for the local workforce through creating a supply of housing that local working people can afford to either rent or purchase, with the result that they may live in, or near, the communities where they work.

Assumptions.

Due to the existing differential between the incomes of the local workforce and the cost of homes, it is reasonable to assume the following:

1) that housing in each community will need to be significantly subsidized to be affordable for much of the local workforce,

2) that the local jurisdictions will need to aggressively solicit any new California or federal housing funds that may be used to reduce or subsidize the costs of workforce housing,

3) that the local jurisdictions will need to pass ordinance(s) to take advantage of new California housing laws that permit accessory housing units, and

4) that the local jurisdictions will need to lend their authority, organizational resources, borrowing capability, and all their other powers to support and encourage a significant increase in the supply of affordable and attractive workforce housing within their jurisdictions.

Categories of potential applicants.

The following categories describe people in the local workforce who currently need subsidized housing:

a) working single parents with little or no child support,

b) workers who are also full or part-time students,

c) young adults in their first job,

d) couples who both work at entry-level or service-sector jobs and have young children, and

e) families that have very high, fixed expenses or debt due to an unavoidable circumstance, such as a prolonged illness, disability, or a special needs child.

Qualification of applicants.

The following are requirements designed to insure that the people who need subsidized workforce housing are the ones who get it:

1) The applicant must have a job in the jurisdiction where he/she applies for housing or in the adjacent jurisdiction.

2) The applicant and his/her immediate family must occupy the house and must agree not to rent it or any portion of it to anyone else.

3) The applicant may not own, in whole or part, any other residence anywhere.

Terms of the subsidy.

To assure that the cost of the subsidized housing would be, and would remain, within reach of members of the workforce, the following, basic terms would be required, among others:

1) The entity managing the subsidized housing would be either a qualified not-for-profit organization, a governmental agency, or a resident-governed common interest development group.

2) The value of the subsidized residence would not fluctuate with the market but would be fixed during the period of ownership. This would insure that the beneficiary of the subsidy would not profit from housing market appreciation, only from the opportunity to build equity.

3) Any mortgage loan held by an owner would be structured so that the down payment and monthly payments would be based on the applicant’s actual ability to pay. The subsidy program would establish mortgage cost ceilings, such as a maximum of 5% down and monthly payments not to exceed 40% of income after payroll and family medical insurance deductions.