General Plan - Moreno Valley

CHAPTER 8 – HOUSINGMORENO VALLEY GENERAL PLANTABLE 8-16Existing Transitional Housing UnitsTransitional Housing Program Number of Units/Beds Target PopulationLutheran Social Services 22 one-bedroom apartments Women with childrenU.S. Vets 120 beds MenConcerned Family 200 beds Women with childrenTotal22 units / 320 beds8.3.17 Units at Risk of ConversionDuring the past thirty years, manyaffordable housing units were developedwith low interest mortgages or rentsubsidies, from the State or the Federalgovernments. In return, the owners wererequired to maintain rents affordable to lowincomeand very low-income households.However, many of the mortgages allowedprepayments, or opt outs, of rent subsidycontracts that would allow an owner tocharge market rents. Many of the assisteddevelopments built in the last thirty yearshave had the option to prepay, and/or optout of, affordability restrictions. Theprospect has created considerable alarm,both on the part of tenants, as well asCongress and housing advocates. To avertmass displacement of low-income tenants,Congress passed the Low-Income HousingPreservation and Resident HomeownershipAct (Title VI of the National AffordableHousing Act of 1990 (LIHPRHA). Theobjective of LIHPRHA is an extension oflow-income use restrictions while offeringowners alternative means of realizing areasonable return on their investment.In December of 1992, the City of MorenoValley had a total of 1,286 units, in fivedevelopments, financed with proceeds frommulti-family revenue bond issues. Pursuantto the regulatory agreements that governthe developments, 20% of the units had tobe leased or made available for lease tolower income households. A total of 257units were setaside in the fivedevelopments. However, only the MountainView Apartments had a requirement, per itsregulatory agreement, to maintain rents atlevels affordable to lower incomehouseholds.According to the Department of Housingand Urban Development (HUD), theaffordable rent for a lower incomehousehold (80% of median) seeking to renta three-bedroom apartment is $1,028.Based on rental survey of sixteen largerental complexes in the city, market rents inMoreno Valley range from $485 for a onebedroomapartment, up to $775 for a threebedroomapartment. Households at 80% ofmedian can afford the market rents inMoreno Valley based on the affordable rentranges as established by HUD. Again,according to HUD affordability guidelines, athree-bedroom apartment affordable tovery-low and low-income households shouldrent for $643. However, the results of thelocal rent survey illustrate that very lowincome(50% of median) and low-income(60% of median) households cannot afforda three-bedroom apartment at the MorenoValley market rate of $775.As of December of 1992, the inventory of atrisk units in Moreno Valley consisted ofmortgage revenue bond projects with userestriction that expired between 1995 andPage 8-29 July 11, 2006