The California Department of Housing and Community Development (2021) defines lower income as 80 percent of area median income or below, and affordable housing as costing 30 percent of gross household income or less. Below-market-rate housing expands opportunities for lower-income families to live near job centers and transit, helping to achieve a better jobs-housing balance. It also addresses the shortage of affordable housing that often pushes residents to live farther from work or school, resulting in longer commutes.
Generally speaking low income residents tend to have lower rates of vehicle ownership and therefore are more likely to use transit and non-single occupancy vehicle modes. Integrating affordable and below market rate housing near job centers, key destinations, or transit reduces trip length. The combination of lower vehicle rates of ownership and reduced trip length can have a large impact on VMT.
For more details, see CAPCOA, T-4. Integrate Affordable and Below Market Rate Housing, pg. 80-82 for VMT reduction quantification.
Promote housing policies that reduce displacement and improve access to transit-rich areas for low-income households. Ensure below market rate housing is located near frequent transit lines, jobs, and services. Include renter protections and affordability covenants to maintain long-term access. Support partnerships with community land trusts and affordable housing developers to retain neighborhood diversity.
There are a complex set of grants for affordable housing, most of which are administered by the California Department of Housing and Community Development. Federal programs like the HOME Investment Partnerships Program and Low-Income Housing Tax Credits also contribute significantly to affordable housing development. Regional agencies can provide financing to affordable housing projects using discretionary funds or VMT mitigation programs. Local municipalities can offer financial incentives, apply for these grant resources, and often partner with local non-profits that subsidize and support the development of affordable housing projects. Other funding sources include the Community Development Block Grant (California Department of Housing and Urban Development) – and the following from the California Department of Housing and Community – the Multifamily Finance Super NOFA, Permanent Local Housing Allocation, the Local Housing Trust Fund, the Affordable Housing and Sustainable Communities Program, the Excess Sites Local Government Matching Grants Program, the HOME American Rescue Plan Program, the HOME – ARP Reentry Housing Pilot Project, the HOME – ARP Rental Housing NOFA, the Housing Plus Support Program NOFA, the Loan Portfolio Restructuring Program, the Manufactured Housing Opportunity & Revitalization Program, the Multifamily Housing Program, the National Housing Trust Fund Program, the No Place Like Home Program, the Portfolio Reinvestment Program, the Prohousing Incentive Program, and the Veterans Housing and Homelessness Prevention Program.
AHSC supports affordable housing within ½ mile of transit, integrating housing, transportation, and sustainability goals to reduce VMT
Provides $580 million for the creation and preservation of affordable housing in Alameda County. Creates or preserves 3800 affordable housing units countywide.
