Title
Recommendation to Implement a Senior Rent Relief Program for Two Rental Units on the Mastick Senior Center Campus. (Recreation and Parks 10051431)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The Mastick Senior Center (Mastick) Senior Rent Relief Program (Program) is a new, voluntary program that seeks to prevent low-income seniors who are at risk of displacement from losing their homes. The Program allows residents to age in place by creating an opportunity to reduce their rent to an amount that is affordable and sustainable. The City of Alameda (City) has two apartments, managed by Mastick staff, that it currently rents to low income seniors. This Program allows these tenants, and future tenants, who are unable to pay market rate, the option to pay a monthly rate that is equivalent to the lesser of either market rate rent or 30% of their household income. The difference in what the City would receive under the Program compared to what the City currently receives, estimated to be $15,610, would likely be offset by opening the Thrift Shop, operated by volunteers, an additional day of the week. The units could continue to be rented at market rate or to seniors with Section 8 vouchers, based on income and eligibility.
BACKGROUND
The 2023 Alameda Community Needs Assessment found that 37% of households in the City face a significant housing burden, paying 30% or more of their income for housing. The study also found that older adults are more likely to fall below the Federal Poverty Threshold, with roughly nine percent (9%) of local adults 65 or older living below the Federal Poverty Threshold. Research conducted by the UCSF Benioff Homelessness and Housing Initiative and the Alameda County Home Together 2026 Community Plan <https://homelessness.acgov.org/reports.page><https://homelessness.acgov.org/reports.page>indicate a rapidly increase of the unsheltered, elderly population. According to research conducted by UCSF, the fastest growing homeless population are individuals over the age of 50. Many retired seniors rely on a fixed income and are unable to keep pace with the Bay Area’s rapidly rising cost of rent. The existing Section 8 Housing Choice Voucher Program is a great subsidy for families and individuals that are successful in obtaining a voucher. It allows for households to pay 30-40% of their income towards rent, making it affordable to them. However, the Section 8 program is oversubscribed, with wait lists spanning multiple years leaving many low-income individuals and families at risk of displacement.
Mastick, staffed and operated by the Alameda Recreation and Parks Department (ARPD), provides a variety of programs and services in the areas of health, education, and recreation to meet the needs of adults aged 50 and older. Mastick is highly utilized year-round, hosting recurring programs, services, and special events.
At the Mastick facility, the City owns one 2-bedroom unit and one 1-bedroom unit that are currently rented by low-income seniors. The rents for these units are set at a monthly rent of $1,522 and $1,450 respectively, including utilities and parking. However, the current rent has created a potential risk of displacement for occupants if those rents remain the same. To align with the City’s Five-Year Strategic Plan Priority to House All Alamedans and End Homelessness, staff recommends that City Council adopt a program to provide opportunities to reduce the rental burden on low-income seniors.
DISCUSSION
Detailed program guidelines for the Program are attached as Exhibit 1. Key guidelines to highlight include:
• Must live at one of the two City owned units.
• Must be 50 years or older.
• Annual tenant income verifications will be conducted.
• Must not currently hold a Section 8 Housing Voucher.
• An open application will be implemented once a unit becomes available.
• Program Administrators must defer to the Inclusionary Housing Guidelines for tenant eligibility, verification, and compliance.
Adopting the resolution to implement the Program will reduce the potential rents from both units received by the City by up to $15,610 per year if residents of both units utilize the Program. Separately, staff has been coordinating with key volunteers to open the on-site Thrift Shop an additional day per week, which will bring in additional revenue to offset this rent reduction as well as support other Mastick programs.
To utilize the Program, an individual must be a senior who is 50 years of age or older and who earns less than eighty percent (80%) of the area median income in order to specifically serve very low and low income seniors. The Program will use the maximum income limits updated annually by the State of California Department of Housing and Community Development.
|
2024 State Income Limits - Alameda County |
|
Number of Persons in Household: |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Acutely Low |
16350 |
18700 |
21000 |
23350 |
25200 |
27100 |
28950 |
30800 |
|
Extremely Low |
32700 |
37400 |
42050 |
46700 |
50450 |
54200 |
57950 |
61650 |
|
Very Low Income |
54500 |
62300 |
70100 |
77850 |
84100 |
90350 |
96550 |
102800 |
|
Low Income |
84600 |
84600 |
108750 |
120800 |
130500 |
140150 |
149800 |
159500 |
|
Median Income |
109000 |
124550 |
140150 |
155700 |
168150 |
180600 |
193050 |
205500 |
|
Moderate Income |
130800 |
149500 |
168150 |
186850 |
201800 |
216750 |
231700 |
246650 |
Mastick staff will continue to act on behalf of the City, as landlord for the two units located on the Mastick campus and will administer all tenant leases, and ensure tenants comply with all terms and conditions of the lease documents. The City, as landlord, will comply with the City’s Rent Program ordinances, including, but not limited to, Fair Housing and Tenant Protection ordinances. When a unit becomes available, applicants may apply for the Program and Mastick staff will administer the Program. This Program will also be made available to current tenants.
ALTERNATIVES
• Approve the Senior Rental Relief Program for the two apartments that are located at the Mastick Senior Center and managed by the Recreation and Parks Department.
• Do not implement the Program for the two apartments that are managed by Mastick. This will maintain the rents at market rate and may result in displacing senior residents.
FINANCIAL IMPACT
Mastick’s operating budget will be taking a financial loss of approximately $15,610 per year for the reduced rent received from the two units. To backfill the financial loss, the Thrift Shop will open an additional day per week. Currently, the shop is open twice a week with a monthly income of approximately $10,133. If the Thrift Shop is open for three days a week, it is estimated the shop will receive an additional $5,100 per month and $61,200 per year - four times the gap created from a rent reduction. The shop is staffed by volunteers.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action supports the City’s Strategic Plan priority to House All Alamedans and End Homelessness, specifically Project HH1 to address housing and human services functions and develop recommendations, Project HH2 to implement the Homelessness Strategic Plan, and Project HH3 Further the preservation, rehabilitation or construction of affordable housing in Alameda.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Implement a Senior Rent Relief Program for two rental units on the Mastick Senior Center Campus.
Respectfully submitted,
Justin Long, Recreation and Parks Director
By,
Sesina Haile, Housing and Human Services 2024 Summer Intern
Beatrice Wheeler, Housing and Human Services 2024 Summer Intern
Grecia Mannah-Ayon, Housing and Human Services Program Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Mastick Senior Center Senior Rent Relief Program Guidelines