What is affordable housing?

 The term affordable housing means any household who is paying no more than 30 or 35 percent (depending on the program) of their adjusted gross income on housing costs (principle, interest, taxes, insurance, and utilities).

Who is eligible?

Only low- to moderate-income households are eligible for affordable housing opportunities. HOME funds can provide assistance to households whose income does not exceed 80 percent of the area median income; whereas Redevelopment Agency (Agency) funds can assist households whose income does not exceed 120 percent of the area median income. Use these links for additional information:

Income Limits for Riverside-San-Bernardino-Ontario
Income Limits for HOME-assisted households

What resources are available for affordable housing projects and programs?

The City of Riverside receives the HOME Investment Partnership (HOME) Grant from the United States Department of Housing and Urban Development (HUD). The purpose of this grant is to facilitate housing opportunities for low- and moderate-income families.

In addition to HOME funds, Redevelopment Agencies are required by state law to set aside 20 percent of their gross tax increment revenue for the purpose of increasing, improving, and preserving the community’s supply of low- to moderate-income affordable housing.

I currently own rental properties in the City and need assistance to make some improvements. What programs are available?

The City of Riverside does not have a rehabilitation program for single-family rental properties. Rental properties with 1 to 4 units are eligible for FHA loans through traditional mortgage lenders.

However, the City of Riverside and Redevelopment Agency (Agency) provide financial assistance to multi-family housing projects in need of substantial rehabilitation when funding is available. In exchange for financial assistance, affordability covenants will be recorded against the property. For projects funded with Redevelopment Housing funds, the affordability covenants will remain in place for a minimum period of 55 years. For projects funded with HOME, the affordability covenants will remain in place for a minimum of 5 years up to a maximum of 15 years depending upon the amount of assistance.

How can I apply for a housing rehabilitation program grant or loan?

The Riverside Housing Development Corporation (RHDC) currently administers the Housing Rehabilitation Program for the City of Riverside. The Housing Rehabilitation program is only available to owner-occupied single-family property owners and mobile home owners. The goal of the program is to improve neighborhoods by preserving and enhancing the existing housing stock, and provide financial assistance to eligible homeowners to make necessary home improvements.

Program funds are only available for improvements such as correcting code violations, health and safety issues, upgrading electrical service, and installation of a new roof. Non-eligible repairs include room additions (not in the case of overcrowding), retaining walls, additional bathrooms, private walkways, porch enclosures, and recreational rooms. The subject property must meet all local building and zoning codes by completion of the project. Property taxes must be paid and current at the time of loan approval and closing. For more information on this program please contact RHDC at (951) 341-6511 or visit their website at www.rhdc.us/Home.

Does the City offer first-time homebuyer down payment assistance?

The City has reinstated the down payment assistance program tentatively in July 2008. Selection for the program will be on a first-come-first-serve basis. To be added to the waiting list, please send an email to housing@riversideca.gov with your name, address, and phone number. Once the program becomes operational individuals on the waiting list will be notified via U.S. mail.

What is the City’s Housing Authority?

The City of Riverside’s Housing Authority is a separate and legal entity of the City. The City’s Housing Authority is not responsible for the administration of the Section 8 program. The County of Riverside Housing Authority administers this program, for more information please contact the County’s Housing Authority at (951) 351-0700 or visit their website at www.harivco.com.

The City of Riverside’s Housing Authority engages in all housing activities related to rental or homeownership. The purpose of the Housing Authority is to increase housing opportunities for low- to moderate-income households through new construction or substantial rehabilitation of existing housing units and ensure the long-term affordability of assisted units within the City.

What is the Community Land Trust?

The purposes of a Community Land Trust are to provide access to land and housing to people who are otherwise denied access; to increase long-term community control of neighborhood resources and to preserve the affordability of housing permanently.

The City of Riverside Housing Authority will encumber land via purchase for the purpose of affordable housing. By encumbering the land its value can be eliminated from the total development costs, which will increase the affordability of any housing unit. For example, if we use standard convention the cost of the land makes up 40 percent of a property’s total value. Therefore, a home appraised for $100,000 normally would be sold for $60,000 under the community land trust. The Housing Authority will hold ownership of only the land and charge a nominal monthly lease fee to the homeowner or developer in the case of a rental project.

I currently rent in the City and my landlord wants to have me evicted for unknown reasons. Do I have any rights?

If you feel that your landlord is treating you unfairly please contact Fair Housing Council of Riverside County at (951) 682-6581 or visit their website at www.fairhousing.net. The Fair Housing Council is a non-profit organization that deals with tenant-landlord issues and cases of discrimination of any kind.

My home is currently in danger of going into foreclosure. What can I do to prevent this from happening??

If you are homeowner in danger of going into foreclosure, please contact Fair Housing Council of Riverside County at (951) 682-6581 or visit their website at www.fairhousing.net.

Does the City of Riverside have rent control?

The City of Riverside does not have rent control policies in place for apartment structures and housing rentals. However, the City does have a mobile home park rent stabilization policy that is updated on an annual basis. The rents are increased in accordance with the Los Angeles-Riverside-Orange County Consumer Price Index for the twelve month period ending August 31st of the prior year. A public hearing is held in September to announce the rental increase.

I’m concerned with what may happen to my neighborhood if affordable housing is built. What type of person qualifies for affordable housing?

The need for affordable housing in California is urgent as the cost of housing continues to increase. In California, the Fair Market Rent for a two-bedroom apartment is $1,189. In order for any household to afford this level of rent without exceeding 30 percent of their gross income, a household must earn $3,962 a month or $47,547 annually. Many entry level wage earners such as teachers, municipal workers, nurses, librarians, and police are unable to afford market rate rents, therefore its essential to focus resources on developing affordable housing opportunities for these persons.

Does someone monitor the tenants of affordable housing?

In accordance with state law, projects with 16 or more units must have on-site property management. In addition, by state and federal law, projects that have been assisted with redevelopment housing funds and HOME funds are required to be monitored on a regular basis. This ensures that residents are provided with a safe, suitable, and sanitary living environment and further ensures that rents still remain affordable to low- and moderate-income households.

How does affordable housing affect home values in my neighborhood?

Affordable single-family and multi-family units will have no adverse affect to property values within a neighborhood. In general, affordable single family homes appraise for market value. Affordability is the result of financial assistance on the part of the City to the low- or moderate-income homebuyer (or developer in the case of rental) to ensure that housing costs do not exceed 30 percent of a household’s income.

What are the eligible uses of HOME and Agency funds for housing development?

Development hard costs related to the project can include construction, rehabilitation, energy-related repairs, disability improvements, demolition of existing structures, acquisition costs, and site improvements.

Soft costs related to the project can include architectural and engineering, environmental reviews, legal fees, private lender financing fees, administration directly involved with the project and relocation costs.

What are the allowed sales prices of homes assisted with HOME and/or Redevelopment Housing Funds?

Federal regulations restrict the sales price of any single-family residence reserved for low- and moderate-income households assisted with HOME funds can not exceed 95 percent (100 percent for Agency-assisted) of the area median price for an equivalent style home