Argus-Courier Editorial: Local housing crisis worsens

As the North Bay’s economy continues to grow following the end of a long economic downturn known as the Great Recession, one positive indicator is the rise in property values that had been spiraling sharply downward for several years. The new, sharply upward trend means that fewer people are under water on their mortgages, and are thus at reduced risk of foreclosure.

But one big downside of the rapidly rising property values is that many more people are finding it increasingly difficult to find a place to live in Petaluma, especially those with low and moderate incomes.

High demand for rental housing, brought about by an abundance of new local jobs, has combined with the general desirability of the area to create rents that many working people and families can no longer afford.

Indeed, the Santa Rosa-Petaluma metro area ranks as one of the least affordable places to live nationwide, according to a study by the National Association of Homebuilders and Wells Fargo Bank. Current apartment vacancy rates in Petaluma are hovering below 1 percent, which has pushed rental costs beyond what many people can afford to pay and making it nearly impossible for low-income families to find a place to live.

Meanwhile, the city’s limited number of low-income, subsidized housing complexes is in such high demand that they have 3- to 5-year waiting lists.

The dearth of affordable housing isn’t for lack of trying; Petaluma officials have made building low-income housing a high priority over the years and the city is ahead of many of its peers in what it offers. But there is a still a big gap between the supply and demand for low-income housing - a gap that is widening every month.

That’s because local funding for low-income housing projects dried up when the state dissolved redevelopment agencies in 2012. Petaluma’s redevelopment agency had been funneling about $3 million a year to affordable housing projects, which non-profits like Burbank Housing and Petaluma Ecumenical Properties then leveraged to get federal grants to fund new housing developments.

That’s now a thing of the past. The only apartment developments currently in the city’s approval pipeline are market-rate multi-family projects targeted at above-moderate income households.

One small glimmer of hope comes, not surprisingly, from COTS, Petaluma’s award-winning homeless prevention program. According to story this week by Argus-Courier reporter Allison Jarrell, COTS’ Integrity Home program is helping provide homes for dozens of lower-income people at risk of becoming homeless in a county where homelessness is four times the national average. The incentive for landlords to participate - besides helping others - is that COTS assumes many of the usual risks associated with renting, like maintenance, covering rent if a tenant misses a payment, or quickly replacing a tenant that moves onto other housing.

According to participating landlord Sheila Deignan, who lived in Petaluma for 25 years before deciding to rent out her home and move to Sonoma, the program is a “win-win” for her and the lower-income tenants now living in her home. “This is how you can build community,” says Deignan. “These people work in Petaluma. If you want to invest in your community, this is a way to do that.”

Mike Johnson, executive director of COTS, says more property owners are needed who want a reliable income stream, conscientious tenants and the knowledge that they are helping people avoid the risk of homelessness. COTS’ Integrity Housing program is not a total solution to Petaluma’s housing crisis, but it is a start. For more information, contact Johnson at 765-6530, or email him at mikej@cots-homeless.org.