“Affordable” Housing in Marin: What’s the “Affordability Gap” and how can we address it?
Everyone knows that housing is very expensive in Marin and many Marinites want more affordable housing.
But how do we accomplish this? When we speak up for housing, we hear concerns about whether proposed projects have enough affordable housing or whether they are affordable enough. In this month’s Perspective, we look at the various programs that address housing affordability, how they interact, and who qualifies for them.
First, we’ll start with a definition – what is “affordable housing.” Policy makers consider housing that costs no more than 30% of a household’s gross income to be “affordable.” This definition of “affordable” refers solely to housing costs (such as rent or mortgage payments) relative to income, regardless of the type of housing.
Most of Marin’s housing stock consists of single family homes. With a median price tag of $1.7 million, single family home ownership is way beyond the means of most residents who do not already own a home. We do not have sufficient rental housing to serve residents who can’t afford to own or rent a single family home. Most rental housing is more than 40 years old and priced to serve moderate to above-moderate income residents. This impacts most potential residents as well as many current residents who are at risk of displacement if they lose their housing. There is no place to go that they can afford.
In short, there is a gap between what Marin residents can afford and the housing we have available. For many comfortably-housed residents, especially homeowners, this enormous gap is not obvious. Many long-time homeowners have mortgages — and property taxes — that are a small fraction of current market rates.
The Affordability Gap
About 43,000 households in Marin are considered “low-income.” (This is defined is 80% or less of the Area Median Income (AMI) in Marin County). There are few housing options for low-income residents in Marin. Affordable housing programs close this gap by subsidizing what the family can afford, subsidizing the cost of developing and providing housing, or both.
With an annual household income of $113,000, the family’s monthly housing budget should not exceed $2,825. How do we fill this gap?
A. Subsidize residents
These programs supplement what residents can pay for housing. Theoretically, they provide residents with the broadest array of housing options. However, existing programs have many exceptions and are greatly underfunded.
HOUSING CHOICE VOUCHERS (HCV) (“Section 8 Vouchers”) are the most common form of rent subsidy. The property owner receives the same total rent, which may be market rate, but the voucher holders pay only 30% of their income. The remainder is paid by the federal government, via Marin Housing Authority. Vouchers are issued by HUD (the US Department of Housing and Urban Development), and are highly regulated, controlled, and limited. The average income for voucher holders is just $1,861/month. The average subsidy is almost $3,000/month, reflecting the high cost of housing in Marin. Vouchers are sometimes tied to specific affordable housing projects, or are applied to make an affordable housing unit even more affordable for a low income household. Vouchers are the best solution for extremely low income households, as the amount of rent subsidy is directly tied to income. Although landlords are not allowed to discriminate based on source of income, units that accept HCV must be approved by the County and not all landlords choose to go through the approval process. Currently, the waitlist for vouchers in Marin is closed, and it is unclear when it will reopen.
SHALLOW RENT SUBSIDIES. Shallow rent subsidies are locally funded and locally controlled rent subsidies to help targeted populations, such as workforce, veterans, or seniors, remain in their housing. These subsidies are much lower than what’s available with HCV.
DOWN PAYMENT ASSISTANCE. The high cost of rent and high housing costs makes it very difficult for first time buyers to amass a down payment. Down payment assistance helps first time buyers bridge this gap. Down payment assistance is sometimes used with Below Market Rate homes.
B. Subsidize housing costs
These programs reduce the amount that housing providers charge, either through public subsidies or developer incentives. These programs include both rental and ownership programs.
100% affordable projects, 2,748 units. Publicly subsidized, privately operated housing projects, often by non-profit developers or community land trusts. Public and philanthropic funding covers part of the cost of developing the housing and enables lower rents which are deed-restricted. Federal tax credits (LIHTC) to investors are the largest source of funding, but most projects require 6-8 different, layered funding sources in order to be built and operated. These projects are more expensive to build and harder to finance than market rate projects because of the regulations and requirements of multiple funding sources.
Public housing, 496 units. Housing owned by the government. Golden Gate Village is the largest public housing project in Marin. California doesn’t build public housing anymore.
Inclusionary housing, 400 rental units, 320 ownership units. Privately developed housing projects that include deed-restricted affordable housing units (typically 10-20% of units). No public funds are used. The inclusion of affordable units allows developers to access incentives which reduce the cost per unit. The market rate units subsidize the affordable units.Inclusionary housing, 400 rental units, 320 ownership units. Privately developed housing projects that include deed-restricted affordable housing units (typically 10-20% of units). No public funds are used. The inclusion of affordable units allows developers to access incentives which reduce the cost per unit. The market rate units subsidize the affordable units.
What other options exist?
Affordable housing programs serve about 6,000 households. How do the other 37,000 low income households in Marin bridge the gap?
Unsubsidized Affordable Housing (UAH). 9,564 units.
These are typically older multi-family apartments rented at lower prices. Half of these units are at risk of becoming unaffordable in the next 5 years.
Overcrowding. 7,436 households.
These are households doubling up, sharing space to share costs.
Substandard housing.
Many families live in substandard housing that is not counted in the housing inventory, for example, in West Marin.
Long-time homeowners.
There are many low-income, fixed-income, long-time homeowners in Marin who are severely challenged to maintain their homes. Habitat for Humanity provides maintenance assistance to help these homeowners stay in place.
Roommates.
Home Match helps match up willing homeowners with roommates.
Homelessness.
About 1,090 people are homeless in Marin. The vast majority lived in Marin before becoming homeless.
Displacement. 4,000 in 2023.
Marin’s low income population is falling rapidly due to inability to find housing. As low income families are forced to leave Marin, their housing is rented or sold to much higher income individuals. This ongoing squeezing of low-income residents is a key reason why our Average Median Income is rising so quickly.
Who qualifies for affordable housing?
Affordable housing programs are complex and highly regulated. Income eligibility is determined by the Federal Government (HUD) based on percentage of the Area Median Income (AMI). Most affordable rental programs require that income be 80% of AMI or less, although some allow up to 120% of AMI. Units are often allocated for specific groups, such as seniors or veterans. Many programs are limited to citizens or permanent residents. There are many more eligible residents than available units, and many people who need help are not eligible. For a table of Marin County HUD Median Family Income Schedule, click here >>.
We cannot address our housing crisis by relying on programs and policies currently in place.
Because our current affordable housing programs serve fewer than 6,000 people, while we have a low income population of 43,000, we simply need more affordable housing. We also need to be far more aggressive in building housing for moderate income households. Lastly, we need to be far more generous in funding programs that both subsidize low income residents and that subsidize affordable housing projects.
MEHC continues to advocate for solutions.
SB 79 OVERVIEW — MEHC SAYS YES! SB 79 is one of the most discussed housing laws this legislative session. This California bill allows multi-family housing to be built within a half mile of specific types of transit stops, otherwise known as “Transit Oriented Development” (TOD). The US Environmental Protection Agency (EPA), the Sierra Club, the Greenbelt Alliance and the State of California all advocate for TOD as a strategy to reduce emissions and improve communities. The bill tiers transit stops and applies different levels of allowable density by tier. Marin County’s SMART train and ferry stations are considered Tier 3 transit stops, and would be subject to SB 79. The law only applies to existing transit stops. New stops not under development are not included. The default zoning for Marin SMART train and ferry landings would allow multi-family developments on any residential or commercially zoned lot, with the following height limits: • 7 stories for projects adjacent to the transit stop. • 5 stories for projects within 1/4 mile of the transit stop. • Local height limits for projects between 1/4 and 1/2 mile of the transit stop. These projects are eligible for SB 423 streamlining standards if they meet the law’s affordability, labor and environmental standards. Communities have the option of creating their own TOD plans, as long as the plans provide the same additional housing capacity. Through this, local jurisdictions can vary heights and densities from the default state standards. They would have until July 2026 to have these plans approved by HCD. SB 79 has changed significantly since it was first introduced. Earlier versions of the bill did not allow the same local control or affordability incentives. Transit stops in more urban counties have higher density requirements allowed. |
| Join Us for the 2025 Marin Senior Fair Sept 17, 9–3pm, Marin Center Exhibit Hall Celebrate the vibrant lives of Marin County’s older adults at the upcoming Marin Senior Fair! This annual event is the perfect opportunity to explore a wealth of resources, services, and activities tailored to seniors and their families. From health and wellness booths to live entertainment, there’s something for everyone to enjoy. Connect with community organizations, discover new hobbies, and make meaningful connections while celebrating the golden years. Don’t miss this inspiring day of discovery and fun—join us and make the Marin Senior Fair an event to remember! |
| R E S O U R C E S Explore the broad library of resources on our website including news, policy statements, advocacy, upcoming meetings, fact sheets and backgrounders on affordable housing – and the lack of it – in Marin. If you have any questions or suggestions, contact us here>> |
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