Executive Summary to 2011 Analysis of Impediments to Fair Housing Choice

Analysis and Methods

The purpose of this analysis is to identify, and make recommendations to eliminate, any impediments that currently exist in the Thomas Jefferson region (The City of Charlottesville, Albemarle County, Fluvanna County, Louisa County, Greene County, and Nelson County) to the fair housing choices made by all residents. The analysis is an important part of the HOME Consortium’s and the City of Charlottesville’s commitment to affirmatively further fair housing, and it will serve to guide activities relating to fair housing for the next several years.

The analysis contains four major components that are used to inform the final selection of impediments:

1. Data on demographics, the economy and housing

   The Thomas Jefferson region is growing more racially diverse, with growth rates for Hispanics, Asians, and individuals claiming multiple races higher than the population as a whole. The region is generally becoming more spatially integrated, although the trend toward integration is less pronounced for families with children. The number of single-parent households remains high in urban and rural areas. In 2009, there were 20,093 people with a disability in the region, and a wide range of disability types are represented.

   An economic downturn has affected the ability of households to acquire and maintain housing. The unemployment rate has doubled since 2007, with Skilled Trades jobs in particular being lost each year, although it is still below the national average. Wages have not increased much for service-sector positions. Housing costs remain elevated relative to incomes for both rental and homeownership opportunities. A foreclosure crisis has hit Louisa and Fluvanna Counties, and certain neighborhoods of Charlottesville, and homelessness continues to rise each year.

2. Input sessions to hear concerns from the community

   Between October 2010 and March 2011, nine groups were asked questions about existing impediments to fair housing in the community. Each of these groups represents protected classes under the Fair Housing Act or has an expertise that overlaps with the analysis. The topics covered by these groups ranged widely in scope. Notes derived directly from the input gathered are included in the “Context for Fair Housing” section and used to inform the final identified impediments.

3. Analysis of public and private sector influence on fair housing

   An analysis of the public and private processes surrounding housing in the region helps determine whether there are systematic issues that impede fair housing choice in the Thomas Jefferson region. Outright discrimination remains an issue. Fair housing complaints in Virginia are typically fielded by the Virginia Office of Fair Housing. Between 2005 and 2010, there were 13.2 complaints addressed per year, with about one-third being resolved in favor of the complainant. The financial markets for housing have changed dramatically in recent years. The primary problem between 2004 and 2007 was the prevalence of high-cost loans issued, particularly to minority homebuyers. Blacks and Hispanics were three times more likely to be issued a high or adjustable interest rate than a White applicant. Many of the predatory loans were issued for refinancing and home improvements, not a home purchase. High-cost loans are highly linked to foreclosures. After 2008, the conventional loan markets have tightened up and securing a loan for a new home has become much more difficult.

   Land use ordinances are enacted to preserve the health, safety, and welfare of citizens in a particular jurisdiction, although there are often trade-offs to consider in terms of housing availability and affordability. Studies at the national level have shown that some code requirements can increase the costs of providing new housing, and thus limit the options for affordability living. Local governments have undertaken many actions in recent years to facilitate the creation of affordable living options. Additionally, there are many public and non-profit institutions that have a role in providing housing, often utilizing a complex network of funding sources. Public housing providers have various methods for selecting tenants with objectivity. There are provisions in place to prevent displacement from occurring, especially as redevelopment occurs, and a range of providers have moved toward mixed-income and mixed-use projects.

   Transportation is fundamentally linked to fair housing, because transportation costs reflect the access to jobs and services of a home. A home that is located in close proximity to jobs and services is inherently less affordable. Therefore, the provision of transit and other low-cost transportation options can help to open up more housing opportunities to households. Likewise, public schools heavily influence the housing decisions of families. Public schools remain socio-economically divided according to the area they serve. More economically and racially integrated schools will likely improve performance across the boards and make more homes throughout the region attractive to families with children.

4. Review of Fair Housing Activities between 2004 and 2010

   Each of the impediments identified and objectives set in 2004 are revisited, and progress toward meeting goals is measured. This is means for assessing how well the various parties responsible for eliminating the impediment have performed in their role, and it helps determine which issues continue to need attention and which have been addressed sufficiently. Many of the goals set in 2004 continue through 2011.

   Although the affordability problem has shifted substantially since 2004, the severity of the issues has grown for many segments of the population. Accessibility of housing remains an issue, particularly for lower-income households. There have been improvements in developing mixed-income neighborhoods and the region has become more integrated, but families remain divided by race and income. Community resistance to development with affordable housing and outright discrimination are ongoing concerns.

   The Piedmont Housing Alliance is a vehicle for fair housing awareness, enforcement, and consultation in our region. They have engaged in a number of activities over the previous five years to expand fair housing choice.

Identified Impediments and Responses

Based on the results of input sessions, data collection and analysis, and review of the 2004 identified impediments, the following are determined to be the greatest impediments to fair housing in the Thomas Jefferson region for the year 2011. Each are given an objective, a measureable result, and a party responsible for accomplishing the objective. The timeline for achieving progress toward each objective is five years, after which a future AI will evaluate the state of fair housing. This will continue until all impediments are eliminated.

2011 Impediments and Plan of Action