City of Pasadena Analysis of Impediments to Fair Housing Choice March 2013 City of Pasadena Housing Department 649 North Fair Oaks, Suite 202 Pasadena, CA 91103 Signature Page I, Michael J. Beck, hereby certify that this 2013 City of Pasadena Analysis of Impediments to Fair Housing Choice (AI) was approved by the City Council on May 20, 2013 and that it represents the City of Pasadena’s conclusions about impediments to fair housing choice, as well as actions necessary to address any identified impediments. ___________________________ ___________________ Michael J. Beck Date City Manager City of Pasadena, CA Table of Contents Signature Page Chapter 1: Introduction .............................................................................................................. 1 A. Purpose of Report ......................................................................................................................... 1 B. Legal Framework .......................................................................................................................... 1 C. Organization of the Report .......................................................................................................... 5 D. Data and Methodology ................................................................................................................ 6 Chapter 2: Community Participation ...................................................................................... 7 A. Public Meetings ............................................................................................................................. 7 B. Fair Housing Survey ..................................................................................................................... 8 C. Public Review of Draft AI .......................................................................................................... 11 Chapter 3: Community Profile ............................................................................................... 12 A. Demographic Profile ................................................................................................................... 12 B. Household Characteristics ......................................................................................................... 20 C. Income Profile .............................................................................................................................. 26 D. Housing Profile ........................................................................................................................... 30 E. Housing Cost and Affordability ............................................................................................... 35 F. Housing Problems ...................................................................................................................... 38 G. Assisted Housing ........................................................................................................................ 42 H. Parks and Recreation Facilities.................................................................................................. 50 I. Accessibility to Public Transit ................................................................................................... 53 Chapter 4: Lending Practices................................................................................................... 59 A. Background .................................................................................................................................. 59 B. Conventional Home Loans ........................................................................................................ 62 C. Government-Backed Home Loans ........................................................................................... 69 D. Major Lenders Serving Pasadena ............................................................................................. 70 E. Lending by Census Tract and Tract Characteristics .............................................................. 72 F. Subprime Lending ...................................................................................................................... 73 G. Purchased Loans ......................................................................................................................... 75 H. Predatory Lending ...................................................................................................................... 76 I. Refinancing .................................................................................................................................. 78 J. Foreclosures ................................................................................................................................. 79 Chapter 5: Public Policies ........................................................................................................ 84 A. Policies and Programs Affecting Housing Development ..................................................... 84 B. Building, Occupancy, Health and Safety Codes ..................................................................... 96 C. Affordable Housing Development ........................................................................................... 98 D. Other Land Use Policies, Programs, and Controls ............................................................... 100 E. Policies Causing Displacement or Affect Housing Choice of Minorities and Persons with Disabilities .................................................................................................................................. 103 F. Equal Provision of and Access to Government Services ..................................................... 105 City of Pasadena Analysis of Impediments to March 2013 i Fair Housing Choice G. Local Housing Authority ......................................................................................................... 108 H. Community Participation ........................................................................................................ 109 Chapter 6: Fair Housing Profile............................................................................................ 111 A. Fair Housing Practices in the Homeownership Market ...................................................... 111 B. Fair Housing Practices in the Rental Housing Market ........................................................ 118 C. Fair Housing Services ............................................................................................................... 124 D. Fair Housing Statistics .............................................................................................................. 125 E. Hate Crimes ............................................................................................................................... 138 F. NIMBYism.................................................................................................................................. 139 Chapter 7: Progress Since Previous AIs .............................................................................. 141 A. 1996 City of Pasadena AI ......................................................................................................... 141 B. 2000 City of Pasadena AI ......................................................................................................... 144 Chapter 8: Impediments and Recommendations.............................................................. 157 A. Continued Impediments and Recommendations from Previous AIs ............................... 157 B. New Impediments and Recommendations ........................................................................... 160 Appendices: Appendix A: Fair Housing Survey Appendix B: Public Notices Appendix C: Public Comments Received City of Pasadena Analysis of Impediments to March 2013 ii Fair Housing Choice List of Tables Table 1: Community Meeting Locations ................................................................................................. 7 Table 2: Location of Discrimination....................................................................................................... 10 Table 3: Basis of Discrimination ............................................................................................................. 10 Table 4: Reason for not Reporting Discrimination .............................................................................. 11 Table 5: Age Characteristics and Trends .............................................................................................. 14 Table 6: Race and Ethnic Trends ............................................................................................................ 14 Table 7: Racial Integration ...................................................................................................................... 17 Table 8: English Language Ability ......................................................................................................... 18 Table 9: Household Characteristics ....................................................................................................... 20 Table 10: Income Categories ................................................................................................................... 26 Table 11: Household Income Distribution ............................................................................................ 26 Table 12: Income by Household Type ..................................................................................................