Based on some practical assumptions, we have estimated the potential savings to society when social services are applied to meet critical needs. While we recognize the hypothetical nature of these findings, the underlying principal of working today to ensure a better tomorrow becomes obvious when looking at these extrapolated figures. We call this “The Other Bottom Line” and we welcome comments on this exercise.

• What is the scope of the current housing crisis?
• How large is the housing deficit in Los Angeles?
• What is Keith v. Volpe?
• What is the organizational relationship between the Court, Century’s board of directors and its staff?
• Why was the original housing program privatized?
• What is Century’s Commitment to the community?
• What is More Than Shelter?
• Where does Century finance housing developments and its other More Than Shelter programs?
• What types of developments does Century finance?
• What types of loans does Century make?
• How can my project be financed by Century?
• Whom should I contact to discuss a project?
• How does Century support other nonprofit housing and community development organizations?
• How does Century support housing and community development advocacy efforts?
• What is the definition of “workforce housing”?

Q. What is the scope of the current housing crisis?

A. The housing crisis in the Los Angeles metropolitan area is vast and multifaceted, with issues of crowding, quality, affordability, urban sprawl, traffic congestion, and safety all adding to the challenge of housing our population. Homeownership is out of reach for most Los Angeles residents: it takes an annual salary of $139,937 just to be able to afford a median priced home, while the average family income is only two-thirds that amount. And while ownership rates across the country are climbing—now at 66%—only 39% of Angelinos own their own home. Renting is not much better. It takes roughly double the minimum wage to rent a one-bedroom apartment at Fair Market Rent (FMR) in L.A. County. To rent an FMR two-bedroom unit requires an annual salary of $44,960. And of the 10 U.S. large communities with the most crowded housing, all of the top seven are in Southern California, with Santa Ana topping the list.

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Q. How large is the housing deficit in Los Angeles?

A. Los Angeles is more than a quarter million housing units short of the current need, with the population and the shortage growing greater every year. The deficit is increasing by 12,000 to 14,000 units per year.

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Q. What is Keith v. Volpe?

A. Keith v. Volpe is the 1972 lawsuit presided over by Judge Harry Pregerson, U.S. Court of Appeals, 9th Circuit, that charged construction of the new I-105 Century Freeway in Los Angeles would be detrimental to environmental and housing concerns. The resolution of the case in 1979 led to a consent decree—which is still in effect—that established the Century Freeway Housing Program, which privatized into the nonprofit Century Housing Corporation in 1995.

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Q. What is the organizational relationship between the Court, Century’s board of directors and its staff?

A. The Court appointed Century’s 10-member Board of Directors, which includes individuals with substantial experience in the fields of affordable housing, real estate, finance, public policy implementation, banking and real estate law. Judge Harry Pregerson, who oversees the lawsuit and the Consent Decree, appointed the Board once the State-administered Century Freeway Housing Program was privatized. As with all corporations, the Board of Directors is responsible for establishing the Ends of the organization, while acting in compliance with its bylaws and articles of incorporation. The President/CEO, G. Allan Kingston, is responsible for the Means by which the corporation reaches its Ends, and reports to the Board regarding management of business operations; he also manages the staff, which assists in implementing the Means, or business activities, of the organization.

Century’s President/CEO is a voting member of the Board of Directors. Century’s Mission and Ends are determined based on community needs and the federal court consent decree in Keith v. Volpe. Century is a party to the Consent Decree, and is committed to its mission as a matter of corporate policy. Century’s mission and purpose are set out in its Mission Statement. Its Ends set forth what results it intends to accomplish, for whom, and at what cost.

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Q. Why was the original housing program privatized?

A. A number of objectives were achieved with the privatization:

Privatizing the program allowed Century to retain funds for the creation of additional much-needed affordable housing in Southern California. Under the privatization order, it is intended that Century continue to exist and recycle its funds in order to provide affordable housing opportunities in for years to come.

Century now has more flexibility in its approach to creating affordable housing, both in the types of eligible projects and the financing methods.

Proposals are accepted and reviewed on a year-round basis, making funds available when needed, as opposed to creating artificial deadlines or competition periods that do not coincide with borrowers’ needs or other financing deadlines.

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Q. What is Century’s commitment to the community?

A. Century is committed to providing affordable housing—from transitional housing for the homeless to ownership housing affordable to working families—combined with More Than Shelter services to families and individuals of low and moderate income. In our 26-year history, Century (and its predecessor) has created more than 12,000 units throughout the greater metropolitan Los Angeles area.

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Q. What is More Than Shelter?

A. More Than Shelter is a 501(c)(3) nonprofit dedicated to raising operating and capital dollars to perpetuate the much-needed social service programs developed by Century throughout Southern California.

Century’s primary mandate is to increase the stock of affordable housing in Southern California, while ensuring that the housing we finance is providing More Than Shelter amenities such as quality child development facilities and wellness programs for seniors.

In some cases, Century has developed its own social programs to fill this need for More Than Shelter. Century, for example, is one of the largest private developers of child care centers in the Southland. The Century/LIFT tutoring program is recognized by the State of California as being a “No Child Left Behind” provider. The Century Community Training Program—an 8-week construction pre-apprenticeship course—has received grants from both State and Federal government agencies. And the More Than Shelter For Seniors program is routinely recognized for its life-enriching activities and classes.

With an expert staff and the high opinion of the community, Century is equipped to expand these and other life-enhancing services with More Than Shelter.

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Q. Where does Century finance housing developments and its other More Than Shelter programs?

A. The geographic area in which Century is focusing its operational activities is the greater metropolitan Los Angeles area, including but not limited to Los Angeles and Orange Counties. Century has also financed affordable housing developments in Ventura County and the Inland Empire.

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Q. What types of developments does Century finance?

A. We will consider financing any multifamily rental or single-family ownership residential development, which incorporates amenities compatible with our More Than Shelter philosophy. We have also participated in mixed-use projects and service-rich transitional housing.

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Q. What types of loans does Century make?

A. Century welcomes proposals from developers seeking loans for new construction, preservation, land acquisition, predevelopment and bridge financing. The fees and rates are negotiable and will be based on a number of factors, including the total financing package, the development type, and the proposal’s responsiveness to solving community social issues.

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Q. How can my project be financed by Century?

A. Century’s flexibility permits it to accept, review, and approve projects on a year-round basis. The process is initiated by submitting a proposal setting out the details of the project, its location and its present condition, the financing requirements, and the amount and type of assistance sought from Century. If the development can be made feasible with Century’s assistance, then we will proceed to the underwriting process, administrative evaluation, loan committee review and, if approved, issue a commitment.

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Q. Whom should I contact to discuss a project?

A. Please contact Aaron Wooler, Vice President of Financial Products, at (310) 642-2019 or e-mail awooler (at) centuryhousing.org, or Stephen Peelor, Senior Vice President of Lending, at (310) 642-2034 or e-mail speelor (at) centuryhousing.org.

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Q. How does Century support other nonprofit housing and community development organizations?

A. As part of Century’s commitment to More Than Shelter activities, we have supported the activities of organizations that advocate for and provide child development, after-school tutoring, job placement, health and lifestyle enrichment, and housing in many ways. Century has structured financial assistance to these organizations as part of project loans, has contributed staff time and direct financial assistance in the form of grants, and has assisted organizations in their efforts to attract government and charitable donations.

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Q. How does Century support housing and community development advocacy efforts?

A. Century supports efforts to provide additional resources for affordable housing and related More Than Shelter activities both directly, by urging local, state and federal legislators, and also by providing financial and other support to advocacy and educational groups. Century also encourages and supports its staff members, managers and Board of Directors to actively participate in advocacy organizations. One or more Century representatives have contributed their time as Directors of the National Housing Conference, the National Coalition for Homeless Veterans, the Center for Housing Policy, the National Association of Affordable Housing Lenders, the California Association of Local Housing Finance Agencies, Housing California, the California Housing Consortium, Shelter Partnership of Los Angeles, the Housing Partnership Network, LINC Housing, and other organizations.

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Q. What is the definition of “workforce housing”?

A. Workforce housing has become a critical issue as housing becomes less and less affordable to middle income families. Century defines workforce housing as housing for families earning between 60% and 120% of an area’s median income. For Los Angeles County, that means between $39,300 and $78,600 for a family of four.

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