A decline in real estate prices does not indicate that Sonoma County's affordable housing crisis is over. In fact, nothing could be farther from the truth.
There are two distinct areas of affordable housing concerns - home ownership - which tends to be a large part of the American dream - but unattainable for many, and affordable rental units for those who cannot or do not want to purchase. While lowered interest rates coupled with the deflated housing market can make it somewhat easier for those with a down payment and eligibility for a mortgage in a tighter credit market to purchase, the remainder of the populace must rely upon very scarce affordable rental housing.
Unfortunately, according to Mark Krugman, Community Development Manager with Sonoma County's Community Development Commission (CDC), "the task of getting more affordable rental stock is not different now, than it was three years ago." He cited the overall economic situation and scarcity of land as being the most difficult challenges to the CDC. The Commission works as a funding agency for local non-profit organizations and property developers.
Local governments have the discretion to emphasize ownership over rentals or vise versa. At the county level, the focus is more on rentals because, as Krugman says, "rental housing gives more long-term bang for the buck." If a development organization, such as the CDC, uses their limited funding to put, for example, $100,000 into one unit, they will not get as many years of rental restrictions (the actual cost of the housing) for dollar spent. With rental units, the funding packaged by the CDC, allows for up to fifty-five years of rent restrictions per unit.
An individually owned home can be resold and thereby taken out of the restricted market and put into the regular housing market, making that unit unavailable for lower cost purchase. Even medium to large multiple-unit properties can and do go into the housing market, as happened in Healdsburg several years ago. What were once affordable housing units available to those receiving Housing and Urban Development (HUD) subsidies through Section 8, for the elderly, low income, and disabled, were converted into upscale condominiums, far out of the reach of those who had previously lived there. Healdsburg, though, has shown initiative in remedying its past inattention to affordable housing and has recently been commended for its vast improvement.
It is evident that Sonoma County, with its wealth of service employees and agricultural workers, will continue to suffer from a dearth of affordable housing, creating a crisis for the individuals who cannot afford to live in this beautiful wine country. The affordable housing crunch is far from over and local agencies continue to struggle with short supply. Wages have not kept pace with the cost of living which creates disparity in the housing market. Those with moderate and low incomes continue to struggle to survive and maintain homes-whether owned or rented.