May 16, 2006

SUBJECT: Update of the Analysis of Impediments to Fair Housing Choice and Amendment of the City of Sunnyvale Consolidated Plan 2005-2010

REPORT IN BRIEF

This report recommends that Council approve an amendment to Sunnyvale’s Consolidated Plan 2005-2010, approved by City Council in May 2005 and accepted by the U.S. Department of Housing and Urban Development (HUD). The amendment updates the Analysis of Impediments to Fair Housing Choice (AI) including Appendix A Affirmative Marketing Policies and Procedures for Affordable Housing.  Sunnyvale is required to affirmatively further fair housing and complete an AI every three to five years, or as demographic changes or other changing conditions occur. The Consolidated Plan, adopted last year, documented rather dramatic demographic changes that had occurred as indicated by Census data; it is these demographic changes, and specifically the large increase in persons of limited English proficiency, which require that an update to the AI be undertaken.  For the purpose of updating the AI and preparation of this report, all data contained in the AI is limited to federal 2000 Census Data and does not include references of current population data from the State of California Department of Finance.  Staff recommends that the City Council approve the attached AI which updates and replaces the City’s current AI, which initially covered the period July 1, 2000 to June 30, 2005 and was last amended on January 28, 2003. 

BACKGROUND

HUD requires that Sunnyvale, an entitlement jurisdiction, prepare an Analysis of Impediments to Fair Housing Choice (AI) to meet the requirements of 24 CFR 570.904(c)(1) in Part IV of the Department of Housing and Urban Development Community Development Block Grant Programs; Final Rule.  The AI is a review of impediments to fair housing choice in the private and public sector.  The AI was last amended in 2003, when the City collaborated with other entitlement jurisdictions in Santa Clara County to ensure a coordinated regional approach.  The resultant study, entitled Fair Housing in Santa Clara County - - An Assessment of Conditions and Programs 2000-2002, determined the fair housing needs in Santa Clara County and the extent to which jurisdictions were responding to those identified needs. The study looked at a broad range of factors that affect fair housing in Santa Clara County, including perceptions of members of various racial and ethnic groups, responses of the fair housing agencies to enforce federal and state fair housing laws, and the behavior of local lending institutions.  The study was also a first attempt to look comprehensively at conditions throughout the County and to use data collection to evaluate the elements of fair housing; i.e., demographic change, lending patterns, residential attitudes, land use practices, and the performance of fair housing agencies. 

As required, the City then conducted a fair housing assessment.  A subcommittee of the Housing and Human Services Commission was formed to review the AI and to participate in the development of strategies to address fair housing issues. The countywide Fair Housing Study recommendations were reviewed for inclusion in the City’s AI.  The amendment of the AI was approved by City Council on January 28, 2003 (RTC 03-030).

The City continues to support the purpose and goal of fair housing through consistent allocation of CDBG funding for fair housing services.  The City contracted with Project Sentinel in fiscal years 2003, 2004 and 2005.  The contract is a collaborative effort with the cities of Mountain View and Palo Alto. The services include information and referral, community outreach and education, audits, discrimination complaint checking and investigation, legal referrals and assistance resolving complaints. 

Project Sentinel has been an active partner by participating in expanding activities including conducting training sessions, such as a series of five workshops attended by 300 Sunnyvale mobile home park occupants.  This workshop covered fair housing issues, predatory lending, and mobile home law and credit issues.  Staff of Project Sentinel has also played a key role in the ongoing efforts of the Countywide Fair Housing Task Force.  This group has taken on the implementation of issues identified in the study completed in 2002, and continues to initiate review of emerging issues throughout the county. 

In May 2005 the City prepared and adopted the Consolidated Plan for 2005-2010, which incorporated the AI as amended in 2003.  The Consolidated Plan is a five-year strategic planning document that identifies Sunnyvale’s overall housing and community development needs, and outlines a strategy to address those needs.  The Plan examined a number of community trends, characteristics and conditions to reach a conclusion regarding community needs and conditions.   The demographic analysis contained in the Consolidated Plan was the primary factor in determining the necessity for the currently proposed amendment to the AI.  

The demographic profile in the Consolidated Plan comparing recent and historical Census data found that from 1990 to 2000, the proportion of non-Hispanic White residents decreased from 64.6% to 46.6% of the City’s population.  In contrast, the proportion of Asian residents increased significantly during the same period, from 19% to 32.6%, and the share of Hispanic residents also increased from 12.8% to 15.2%.  Asians are currently the second largest racial/ethnic group in the City. 

The diversity of the local population supports a rich multicultural atmosphere, but it also creates some special needs in terms of service provision.  Census data in 2000 estimated 27,932 foreign-born residents in Sunnyvale, which comprises approximately 33.0% of the total population.  Of the foreign-born population, approximately 35.0% entered the United States between 1990 and 2000.

Approximately 45.0% of Sunnyvale’s population age five and older speaks a language other than English at home, and 9,231 adults reported that they speak English “not well” or “not at all.”  Households that speak English not well or not at all may become “linguistically isolated” from the mainstream culture. Language and cultural barriers must be bridged in an effort to ensure that all residents have equal access to, and have an understanding of available housing opportunities.

The 2000 Census indicates that, of the 9.2% of Sunnyvale households that speak Spanish (4,863 households), 22% (1,081 households) were linguistically isolated.  Of the 22.1% of Sunnyvale households that spoke an Asian or Pacific Island language (11,618 households), 30.2% (3,514 households) were linguistically isolated.  This aspect of linguistic isolation affecting over 5000 households in Sunnyvale was unknown at the time of the AI update in 2003.   The analysis of the data clearly indicated that, although many of the goals and actions described in 2003 are still current and relevant to issues in Sunnyvale, actions to address issues related to “linguistically isolated” households must be included in the AI.

EXISTING POLICY

Housing and Community Revitalization Sub-Element

GOAL G: Provide equal opportunity for housing for all people regardless of their ethnicity, race, religion, marital status, disability, gender, sexual orientation or age.

Council has been proactive in developing and implementing strategies that lead to greater participation by Sunnyvale’s multicultural populations.  In June 2004, Council approved five broad strategies for outreach to multicultural populations (RTC- 04-206):

1. Expand representation and participation of multicultural populations at all levels of City government and in community life.

2. Increase the awareness and responsiveness of City government to multicultural issues with the community.

3. Acknowledge, value and celebrate Sunnyvale’s multicultural populations.

4. Facilitate an increased “sense of community” with Sunnyvale.

5. Communicate more effectively with populations speaking limited English.

DISCUSSION

Federal fair housing laws prohibit discrimination in the sale, rental, lease or negotiation for real property based upon race, color, religion, sex, national origin, familial status, and disability.  California fair housing laws add marital status, ancestry and “any arbitrary discrimination” as additional protected categories under the laws.

Fair Housing is defined by HUD to mean the ability of persons of similar income levels to have the same housing choices regardless of race, color, religion, sex, handicap, familial status or national origin.  Discrimination in the sale or rental of housing is prohibited against these protected classes.

Impediments to fair housing choice consist of the following:

• Any actions, omissions, or decisions taken because of race, color, religion, sex, disability, familial status, ancestry, national origin, marital status, or any other arbitrary factor that restrict housing choices or the availability of housing choices; or
• Any actions, omissions or decisions, policies, practices, or procedures that have the effect of restricting housing choices on the basis of race, color, religion, sex, disability, familial status, ancestry, national  origin, marital status, or any other arbitrary factor.

To affirmatively promote equal housing opportunity, a community must work to remove impediments to fair housing choice.  HUD interprets a jurisdiction’s obligations to include the following:

• Analyze and eliminate housing discrimination in the jurisdiction.
• Promote fair housing choice for all persons, including those with limited English proficiency.
• Provide opportunities for racially and ethnically inclusive patterns of housing occupancy.
• Promote housing that is physically accessible to and usable by, all persons, particularly persons with disabilities.
• Foster compliance with the nondiscrimination provisions of the Fair Housing Act.

On August 11, 2000, Executive Order 13166, titled “Improving Access to Services by Persons with Limited English Proficiency”, was issued.  The Executive Order emphasizes that people who are otherwise eligible, but who have limited English proficiency (LEP), must have reasonable and meaningful access to federally funded programs and activities; and it requires all entities providing federal financial assistance to evaluate their programs, and issue guidance on the provision of meaningful access to programs and activities to persons with LEP consistent with the regulations.  It places greater emphasis on the existing Title VI requirements to protect persons based on national origin.

In order to improve access to services (including affordable housing opportunities) for all residents including LEP persons and households, policies and procedures are required by HUD so that affirmative marketing policies and procedures are assured when implementing federally funded activities.

Staff has updated the existing Analysis of Impediments to Fair Housing Choice (Attachment 1) to include new activities that will continue to expand fair housing goals and add support to efforts to improve access by LEP residents to services and housing opportunities.  Section VI of the AI,   Recommendations, includes expanded education and awareness of persons with LEP, by providing education to service providers on their obligations to LEP clients by expanding their work programs to include required responsiveness, and by conducting an assessment of housing and service providers to evaluate the ability of persons with LEP to access sponsored services, programs, and activities. 

Appendix A to the AI “Affirmative Marketing Policies and Procedures for Affordable Housing” (Attachment 2) provides specific methods for informing the public, owners and potential tenants about Fair Housing Laws and a description of the requirements for property owners and the City to affirmatively market housing assisted with CDBG, HOME and/or City funds.  This document identifies specific resources to insure that outreach efforts to LEP persons and households in Sunnyvale are successful.

FISCAL IMPACT

No fiscal impact on General Funds will result from the approval of the update to the Analysis of Impediments.  The ongoing activities to further fair housing choice and to address impediments to fair housing choice are budgeted annually from Community Development Block Grant (CDBG) funds.

Conclusion

The demographic profile in the Consolidated Plan comparing recent and historical census data found that from 1990 to 2000, the proportion of non-Hispanic White residents decreased from 64.6% to 46.6% of the City’s population. The proportion of Asian residents increased significantly during the same period, from 19% to 32.6%; Hispanic residents increased from 12.8% to 15.2%.  Asians are currently the second largest racial/ethnic group in the City.

2000 U.S. census data identified 14,432 Sunnyvale residents over the age of five as linguistically isolated.  This is approximately 12% of the population over the age of five.  59% of this linguistically isolated group spoke Asian/Pacific Island languages, 26% spoke Spanish, 12% spoke Indo-European languages and 3% spoke other languages. 

Federal regulations and Executive Order 13166, titled “Improving Access to Services by Persons with Limited English Proficiency”, emphasizes that people who are otherwise eligible, but who have limited English proficiency (LEP), must have reasonable and meaningful access to federally funded programs and activities; and it requires all entities providing federal financial assistance to evaluate their programs, and issue guidance on the provision of meaningful access to programs and activities to persons with LEP consistent with the regulations. 

The promulgation of the Executive Order and the recently released Census data showing a substantial number LEP residents and households triggered the need to update the AI and to develop affirmative marketing policies and procedures.

PUBLIC CONTACT

Public input and the review process of the Analysis of Impediments (AI) began on March 29, 2006 with a presentation of the draft AI to the Housing and Human Services Commission.  

On April 13, 2006, the Housing and Human Services Commission reviewed and commented on the initial Draft Analysis of Impediments to Fair Housing Choice (AI) and recommended that Council approve the update of the AI, and amend the City of Sunnyvale Consolidated Plan 2005-2010.

As required by Sunnyvale’s Citizen Participation Plan, a public notice was published in the Sunnyvale Sun on March 29, 2006, the notice contained a thirty-day public comment period commencing on March 29, 2006 and continuing through April 28, 2006. No formal comments have been received. 

Public contact was made through posting of the Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the Library and the City Clerk’s Office. 

ALTERNATIVES

1. Approve the update of the Analysis of Impediments to Fair Housing Choice (Attachments 1 and 2) and Amend the Consolidated Plan 2005-2010 to incorporate the updated AI.

2. Approve a modified Update of the Analysis of Impediments to Fair Housing Choice and Amend the Consolidated Plan 2005-2010 to incorporate the modified AI.

3. Take no action. 

RECOMMENDATION

Staff recommends Alternative 1- Approve the Update of the Analysis of Impediments to Fair Housing Choice (Attachments 1 and 2) and Amend the Consolidated Plan 2005-2010 to incorporate the updated AI.

The Housing and Human Service Commission concurs with the staff recommendation. 

Staff believes that the new information on the large increase in person of limited English proficiency, and the promulgation of Executive Order 13166, require the update to the AI as drafted by staff in Attachments 1 and 2.

Reviewed by:

Robert Paternoster Director, Community Development Department

Prepared by: Annabel Yurutucu, Housing Officer

Approved by:

Amy Chan

City Manager

Attachments

1. City of Sunnyvale-2005-2010 Analysis of Impediments to Fair Housing Choice  (.pdf)

2. Appendix A- Affirmative Marketing Policies and Procedures for Affordable Housing (.pdf)

3. Draft Minutes of the Housing and Human Services Commission Meeting of April 13, 2006