PURPOSE:   

To review new information gathered as part of the City�s Analysis of Impediments to Fair Housing Choice (AI), analyze report findings and approve recommendations as added actions to Burbank�s Fair Housing Plan, and adopt a revised Plan for FY 2003-08.

BACKGROUND:

The City has an obligation to affirmatively further fair housing choice in compliance with U. S. Department of Housing and Urban Development (HUD) regulations.  �Fair housing� is defined as a condition in which individuals of similar income levels in the same housing market have a like range of choice available to them regardless of race, marital status, color, religion, ancestry, sex, handicap, national origin, arbitrary age, or any other category which may be defined by law now or in the future.

Burbank�s obligation to affirmatively further fair housing choice (AFFH) arises in connection with its receipt of federal funds and extends to all housing and housing related activities within city boundaries.  It is mandated by Section 808(e)(5) of the Fair Housing Act, and certification requirements stipulated in Sections 104(b)(2) and 106(d)(5) of the Housing and Community Development Act of 1974, as amended, and Section 105(b)(13) of the National Affordable Housing Act of 1990.

The responsibilities of fair housing planning include conducting an Analysis of Impediments to Fair Housing Choice (AI) at least once every five years consistent with the Consolidated Plan cycle; formulating actions to overcome the effects of identified impediments through a Fair Housing Plan; and maintaining records to support the AFFH certification.  The City updated its August 1996 AI in February 1999 for fiscal year (FY)1999-2003, and this year�s AI will cover the Consolidated Plan for FY 2003-08.

ANALYSIS:  

The AI is a comprehensive review of a jurisdiction�s laws, regulations, administrative policies, procedures, and practices affecting the availability, accessibility and location of housing.  It assesses conditions, both public and private, that affect fair housing choice, and serves as the substantive, logical basis for fair housing planning.

�Impediments� to fair housing choice are any actions, omissions, or decisions taken because of race, color, religion, sex, disability, familial status, or national origin which restrict or have the effect of restricting housing choices or the availability of housing choices.  A summary of facts and findings from this year�s AI is as follows:

Community Profile:

Rapid population growth, changes in the racial/ethnic composition, or location within the community, may affect a household�s access to housing or raise fair housing concerns. A person�s racial or ethnic background can affect his or her ability to find housing, obtain home financing or access to housing.  U.S. Census data for 2000 when compared to 1980, shows Burbank is more ethnically and racially diverse.  This diversity often brings changes in income levels, family types and languages that may affect housing needs and opportunities.

◘ While White residents still comprise the majority of residents at 60 percent, this proportion is down 20 percent from 1980, and Hispanics have increased from 16 percent in 1980 to 25 percent in 2000.

Families with children, especially lower-income large families, often have difficulty finding adequate and affordable housing and can face differential treatment from landlords not familiar with fair housing laws.  Also, family households with children

have unique needs, including larger housing units and child-care services, that can affect their housing choices and their access to housing.  Areas in Burbank reflecting a relatively high proportion of family households with children (50 to 100 percent) include census tracts 3105, 3107.03 and 3118.[1]

Large households (5 or more persons) face a limited availability of affordable and adequately sized housing units, particularly affecting the 3,660 low and moderate income large households in Burbank, half of which are renter households that in majority are low-income.  According to HUD data for Burbank, almost all the City�s lower income large renter households pay greater than 30 percent of their income on rent, which results in greater overcrowding to better afford housing.

◘ The U.S. Census for 2000 reflects a significant increase (11 percent) in families with children compared to 1990.  This fact combined with the growth in Hispanic and Asian households with larger sized households has resulted in increased overcrowding in rental housing.  Areas where severe overcrowded rentals exist include the Peyton-Grismer and Golden State areas.

Among other groups, special needs populations include the elderly, frail elderly, persons with disabilities, female-headed households, and large households.  These groups, because of their needs and income level, are vulnerable to discrimination or differential treatment that can limit their access to housing.

◘ Burbank has numerous households with specialized housing needs, including senior citizen households (20%), persons with disabilities (17%), single parent households (9%), and large households (9%).

◘ A substantial portion of large rental households (87%) and elderly renter households (77%) are low and moderate income.  Both groups are vulnerable to rent increases and living expense changes since many elderly are on fixed incomes, while large households have difficulty finding affordable units with an adequate number of bedrooms.

U.S. Census data (2000) indicates Burbank�s housing stock increased by less than four percent from 1990 to 2000 adding approximately 1,600 new units.  The citywide residential vacancy rate fell to 2.9 percent for all housing units (2.0 for rental units) compared to the 4.9 percent vacancy rate in 1990.

◘ The greater scarcity of rental units caused rental rates to increase dramatically resulting in 40% of renters overpaying for housing and forcing some renters to move to lower cost areas.  As of 2003, however, interviews and discussions with local realtors seems to indicate that rental rates are beginning to stabilize as continued low-interest mortgage rates lure renters into homeownership.

◘ Limited rental vacancies, combined with market rent levels well above fair market rents (FMR) established by HUD, had made it difficult for Section 8 tenants to find available units.  However, a recent increase granted the Housing Authority to 110% of HUD�s FMR allows tenants a greater ability to find housing.

◘ There is a scarcity of rental units that are both affordable and of adequate size for low/moderate income (<80% median family income) large families.

Fair Housing Profile

Burbank contracts annually with the Fair Housing Council of the San Fernando Valley (FHC) to provide a variety of services which assist the City in meeting its federal certification to affirmatively further fair housing choice.  FHC provides landlord/tenant information and housing discrimination assistance to Burbank residents, and other services, including investigation of allegations or complaints regarding unfair housing practices, community outreach and education, fair housing audits and testing, monitoring local lenders and real estate practices/advertising, and providing counseling or referrals to

other agencies when individuals may have been victims of discrimination.

In rendering services, FHC directs special emphasis towards areas of concentrated low income and/or minority populations.  Funds expended during fiscal year 2002 totaled $17,000.  A FHC report for 2002-03 is detailed in the City of Burbank Fair Housing Planning Actions Summary Report (Attachment 1).  From this report and interviews/discussions with FHC, the 2003 AI makes the following conclusions:  

◘ Small property managers/owners are generally the major violators of fair housing laws and may not be adequately trained in fair housing issues.

Recommendations and actions to alleviate this condition are cited in Table 1 � City of Burbank Fair Plan (FY 2003-08) under Education and Outreach.

◘ Familial status issues continue to comprise the largest proportion of fair housing complaints and cases in the City.  Familial status generally refers to differential treatment towards families with children or single parent households with children.

◘ Due to their specific housing needs, persons with disabilities are vulnerable to discrimination by landlords, who may not be familiar with Fair Housing Act protections.  Given the rise in discrimination complaints from disabled households, the FHC cites the need to identify accessible units and ensure landlords make reasonable accommodations.  FHC will survey the City and develop a preliminary list with the cooperation and assistance of the Community Development Department, Burbank Housing Authority, Burbank Advisory Council on Disabilities, Burbank Housing Corporation, and local realtors.

Review of Potential Impediments

Public policies may affect the pattern of housing development, availability of housing choices, as well as access to housing.  Various public policies that may impact fair housing choice include local zoning, building and occupancy codes, public and

administrative policies affecting housing activities, moratoriums or growth management plans, residential development fees, and community representation on planning and zoning boards and commissions.  Private sector impediments to fair housing include real estate and apartment association practices, mortgage lending practices and covenants.

Potential Public Sector Impediments

Due to the unique characteristics of larger (more than six persons) community care facilities, most jurisdictions require a Use Permit to ensure neighborhood compatibility in establishing these facilities.  While the Burbank Zoning Ordinance now includes a definition of community care facility and provides for facilities with six or fewer occupants by right (Lanterman Act) in all residential zoning districts, the Ordinance makes no specific reference to facilities with more than six persons.

◘ The Burbank Zoning Ordinance does not contain explicit provisions for community care facilities with more than six persons.  While such uses could be accommodated through the City Planner Classification general use regulation, it

may be difficult for these unique uses to comply with the required conditions.

◘ Housing affordable to Burbank�s growing low/moderate income workforce is not being produced in the market without Redevelopment Agency assistance.

Potential Private Sector Impediments

Of the City�s top 25 lenders, six are identified as subprime lenders[2] in HUD�s 2001 Subprime and Manufactured Home Lender list.  Of the top 50 lenders, 16 are categorized as subprime representing a 60 percent increase when compared to 2000 when ten of the top 50 were subprime lenders.

◘ The continued rise in subprime lending[3] activity is a concern given the higher interest rates associated with these loans, and since predatory lending is considered a subset of the subprime market.

◘ The higher level of subprime lending activity among both African Americans and Hispanics is a concern, particularly if these households would normally be eligible for loans from prime lending institutions.

◘ The high level of withdrawn or incomplete applications among some major prime lenders active in Burbank suggests a lack of education or confusion about the lending process among lower income and/or minority applicants.

Comparison with 1999 Fair Housing Study Findings

The 1999 AI first covers the institutional practices related to fair housing issues. Institutional practices refers to the entire process by which families and individuals search for housing, identify prospective housing units, apply as purchasers or tenants, and ultimately move in.  The 1999 AI found a variety of impediments in this area:

Ethnic Issues

● Clustering and segregation of ethnic groups

● Discrimination between ethnic groups, and not just along �white/black� lines

● Ethnic steering in the competitive process of finding housing

Enforcement Issues

● The difficulty of prosecuting fair housing violations, especially those involving discrimination

● Tenants� fear of legal recourse being used against them

● The multi-dimensional nature of discrimination, especially problems of access for families with multiple children and for handicapped people

◘ The 2003 AI found that most of the ethnic and enforcement issues present in 1999 still exist, although evidence of ethnic steering and discrimination among ethnic groups were not observed directly as part of the study.

In 1999, the AI secondarily involved the analysis of residential credit-market outcomes and financial patterns, and partly concluded:

● The pool of applicants for home loans in Burbank had an unexpected ethnic make-up; there were fewer minorities than the Los Angeles County[4] experience would suggest

● Evidence of several kinds were found, suggesting that credit-market discrimination against minority borrowers, especially Hispanic, African American and Native American borrowers may exist in the City.  This evidence included several descriptive statistics and a simple econometric model

◘ Concerning residential credit market outcomes and financial patterns, the analysis of 2001 mortgage lending practices contained in the current AI found some of the same financial patterns.  However, the analysis also found distinct differences regarding the type of lending institutions and the type of lending activity when compared to the 1999 study, including:

● For home loans, Whites were over-represented when compared to their percentage of Burbank residents while Hispanics were under-represented.

● Over 290 lending institutions were active in Burbank in 2001; however, approximately 20 percent of all borrower loan applications were made to subprime lenders.

Burbank�s 2003-08 Fair Housing Plan [Actions and Activities]

A fundamental HUD goal is to make housing choice a reality through fair housing planning.  Based on the 2003 AI findings and the recommendations for addressing potential impediments (Part V � Conclusions and Recommendations), the City�s

2003-08 Fair Housing Plan will continue and expand actions and activities to affirmatively further fair housing choice in the areas listed below and detailed in 2003-08 Fair Housing Plan attached to this report.  Some actions and activities will occur annually while others will be planned and implemented over the five year period.  A yearly Fair Housing Plan will be incorporated as part of the annual update of the Consolidated Plan:

1.                  Education and Outreach Activities

2.                  Enforcement Activities

3.                  Monitoring Lending, Housing Providers, and Local Real Estate Practices

4.                  Investigative Testing and Auditing Local Real Estate Markets

5.                  Land Use Policies to Affirmatively Further Fair Housing

6.                  Increasing Geographic Choice in Housing

The recommendations of 2003 AI have been reviewed by applicable City staff from Community Development (Redevelopment, Housing, and Planning) and the City Attorney.  In order to receive public comment, the AI was distributed to the Community Development Goals Committee and was on file for citizen review at City Hall, the Joslyn Adult Center, and all City libraries, but no written comments were received.  AI recommendations and actions to add to the City�s existing Fair Housing Plan are detailed below (Table I).  These recommendations are intended to help the City to better educate, promote, train, enforce, monitor and increase housing choices for all its residents.

FISCAL IMPACT:   

Actions and activities required to implement AI recommendations and the City�s Fair Housing Plan will be funded with regular CDBG administration funds, and therefore, will not have any fiscal impact.  Actions and activities undertaken in 2002 are detailed in the City of Burbank Fair Housing Planning Actions Summary Report (Attachment 1).

RECOMMENDATION:     

Approve the FY 2003 Analysis of Impediments to Fair Housing Choice (AI) findings and recommendations and approve the Fair Housing Plan for FY 2003-08 contained in this report.

Exhibit List:

● Attachment 1: City of Burbank Fair Housing Planning Actions � A Summary Report

                           for Fiscal Year (FY) 2002-03

● Table 1: City of Burbank Fair Housing Plan FY 2003-08

● City of Burbank Analysis of Impediments to Fair Housing Choice � November 2003

go to the top