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 in infill areas 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.
Affordable housing development can be supported through a combination of federal, state, regional, and local funding sources. California Department of Housing and Community Development programs provide significant resources for affordable housing construction, preservation, and associated transportation improvements. Federal resources include the HOME Investment Partnerships Program, Community Development Block Grant funds, and Low-Income Housing Tax Credits. Other potential funding sources include the Affordable Housing and Sustainable Communities Program (AHSC), Permanent Local Housing Allocation (PLHA), Local Housing Trust Fund programs, Multifamily Housing Program resources, the AB 130 VMT Mitigation Program, and other HCD housing programs. Local jurisdictions can also provide financial assistance, fee waivers or deferrals, land, development incentives, and other resources to support affordable housing projects. In Stanislaus County, the City of Modesto has successfully combined local CDBG, HOME, and PLHA funds with state AHSC funding to finance affordable housing and transportation improvements.
AHSC supports affordable housing within ½ mile of transit, integrating housing, transportation, and sustainability goals to reduce VMT
Modesto provides a broader example of how local funding can be combined with state and federal resources to produce affordable housing. The City’s housing portfolio includes projects such as Archway Commons Phase II, Parque Rio, Seventh Street Village, Vine Street, and The 1612. For example, the City reports that Seventh Street Village used $7.2 million in CDBG, PLHA, and HOME funds and leveraged approximately $33 million in AHSC funding. The City’s portfolio demonstrates how local jurisdictions can combine multiple funding sources to support affordable housing production and related infrastructure.
