Housing Price Declines Fail to Stem Workforce Housing Crisis; Los Angeles Working Families Continue to Struggle with Cost, Quality of Life

LA Business Council Report Highlights Continued Affordability Gap, Proposes
Employer Assisted Housing Programs to Meet Local Housing Needs in the Short-Term
LOS ANGELES--(Business Wire)--
Despite recent declines in Los Angeles County`s median rental and home prices,
the local workforce continues to face overwhelming challenges finding affordable
housing near employment centers, which undermines the competitiveness of
businesses and diminishes the quality of life for area residents, according to a
report issued today by the Los Angeles Business Council (LABC).

This report finds that falling rents and a nearly 14 percent decline in LA
County`s median home prices since 2008 have not significantly affected the
affordability of workforce housing, given that housing costs rose by more than
150 percent between 2000 and 2008 and have not fallen substantially in many of
the job-rich areas of the county. The high cost of workforce housing impairs
businesses` ability to recruit and retain employees, causes long commutes and
traffic congestion and adds to the burden of families now struggling with
declining incomes, tight access to credit and an unemployment rate nearing 13
percent.

A number of California employers - from Google to UCLA to LAUSD - have
determined that the high-cost of housing is something that their businesses can
no longer afford, and have instituted housing assistance programs for employees,
which range from company-developed housing to financial education programs to
down payment assistance and rent subsidies.

The LABC report, titled the Los Angeles Employer Assisted Housing Handbook,
highlights these efforts, collectively termed Employer Assisted Housing (EAH),
arguing that EAH programs can play a pivotal role in improving regional economic
competitiveness and jobs/housing balance in the short-term, and work as part of
a long-term economic development strategy that includes encouraging smart
growth, investing in public transportation and building a vibrant clean-tech
economy.

To help spur the adoption of EAH programs, the LABC is working with the National
Housing Conference to advocate for the passage of H.R. 1850, Housing America's
Workforce Act, which would provide a $0.50 tax credit to any employer for every
eligible dollar of housing benefit made available to their employees.

"Closing the housing affordability gap for our region will require close
cooperation between the public and private sectors, but local businesses are not
waiting any longer for government solutions to meet immediate housing needs for
their employees," said LABC President Mary Leslie. "The LABC is working to
expand the number of businesses offering housing assistance programs in our
region and urging policymakers to leverage public incentives and programs, like
those contained in Housing America's Workforce Act, with innovative
private-sector efforts already underway to create more affordable workforce
housing in Los Angeles County."

Public and private employers across California have adopted a range of EAH
programs to meet the needs of their employees and improve their bottom line.
UCLA, for example, owns and operates about 3,000 off-campus apartments and
homes, including 200 designated for faculty recruitment, and is currently
examining the feasibility of developing more workforce housing on or near
campus.

"UCLA`s array of housing assistance programs are essential tools in overcoming
the challenge of recruiting and retaining top faculty and staff in a high-cost
housing market like Los Angeles," said Sam Morabito, an Administrative Vice
Chancellor at UCLA.

UCLA also administers an innovative low-interest rate loan program that has
provided faculty members with approximately $400 million in financing for
housing since the late 1980`s. "These programs are financially self-sustaining -
and ultimately produce tremendous cost-savings for UCLA by reducing employee
turnover and increasing the productivity of our workforce," Morabito said.

Other employers offering EAH programs range from Los Angeles Unified School
District, which unveiled a program to convert underutilized land assets into
below-market rental apartments for its staff, to Google, which operates a
shuttle service that transports 1,500 employees living throughout the Bay Area
to its Mountain View headquarters.

A counterpart to last year`s Workforce Housing Scorecard for Los Angeles, which
quantified the severity of LA County`s jobs/housing imbalance, the LABC`s new
report will be the subject of in-depth discussion at the LABC`s Mayoral Housing,
Transportation and Jobs Summit, taking place on Friday, October 30th, at UCLA`s
Anderson School.

The Mayoral Summit will feature speeches and panel discussions by major
policymakers and business leaders on subjects such as federal housing policy and
the impact of stimulus dollars; transportation and transit-oriented development;
and innovative ways that developers are building and financing affordable
housing. Featured speakers include Mercedes Marquez, Assistant Secretary for
Community Planning at HUD; Stuart Gabriel, Chairman of the UCLA Ziman Center for
Real Estate; Los Angeles City Council President Eric Garcetti; and Los Angeles
Mayor Antonio Villaraigosa.

Copies of the Los Angeles EAH Handbook and an agenda for the LABC Housing,
Transportation and Jobs Summit can be found at labusinesscouncil.org.

About the Los Angeles Business Council

The Los Angeles Business Council is an advocacy and educational organization
dedicated to serving local businesses while informing and impacting positive
change at multiple layers of government. For over 70 years, the council has been
an influential link between business and government and has had a major impact
on public policy related to education, housing and environmental
sustainability.

Los Angeles Business Council
Nate Miller or Jason Greenwald, (310) 689-7535

Copyright Business Wire 2009