With housing prices climbing dramatically this year, the Los Angeles region's expanding transit corridors may offer the best opportunity for the development of new workforce housing that can help bridge a widening affordability gap faced by a majority of middle-class families, according to a new UCLA Anderson School of Management report.

To identify areas in the county with the greatest market potential for development near transit stations, Anderson lecturer Paul Habibi of the Ziman Center for Real Estate and his team created an index that ranks 104 station areas according to six key demographic and market indicators: population, housing density, income, employment, transit ridership and land values. These factors are used to evaluate whether a given market can support the type of mixed-use, mixed-income and higher-density development that comprises livable communities.

The Opportunity Index classifies station areas as hot, warm, or cool markets for livable community development. Areas identified as "hot" are dispersed throughout the county, demonstrating great potential for affordable development region-wide.

Housing experts consider the development of moderately priced new housing to be critical to addressing the affordability gap faced by most Los Angeles renters and homeowners, especially middle-income earners who do not qualify for public assistance. The latest UCLA Anderson report estimates that more than 60 percent of renters and 50 percent of homeowners are burdened by housing costs that exceed 30 percent of household income — a  key indicator of housing affordability.

"Quality housing that families can afford is critical to L.A.'s ability to compete against other cities and attract and retain job-creating businesses," said LABC President Mary Leslie.

But high land and construction costs are impediments that highlight the need for public-sector support to make these projects financially viable, the authors emphasized.

  "I'm committed to spurring development of sustainable and livable communities in Los Angeles, especially for residents who struggle to find affordable options," said Los Angeles Mayor Eric Garcetti. "As we bring jobs and economic development to neighborhoods across Los Angeles, housing — particularly workforce housing — is a vital component. Moreover, we will continue to explore catalysts for more livable community development, like mobility hubs."

Creating mobility hubs, the study’s authors said, can extend the reach and impact of public transit on the communities surrounding each station. Habibi cites the Long Beach Transit Mall in Downtown Long Beach as a model. That transportation center includes a street closed to automobile traffic, with the Blue Line light rail running down the centerline, as well as bus-only lanes, landscaped pedestrian sidewalks and buffered bicycle lanes.

There are other areas in the region that offer opportunities as well as challenges for development strategies, including the Orange Line's Van Nuys station and the upcoming Crenshaw Line's Florence/La Brea station in Inglewood.

The Van Nuys Orange Line station, for example, has significant upside potential for the development of up to 3,000 units of workforce housing within a half-mile area, according to the UCLA Anderson project team. "The pieces are there for a mobility hub that could extend the reach of the station by at least a half mile, encompassing 125 acres of land," Habibi said. And Metro owns a site at the Van Nuys Orange Line station that could yield up to 344 units of new housing.

The area is well-suited for a mobility hub, the authors point out: It is near a bike path and several north-south bus routes along Van Nuys Boulevard, and has available property for bike parking, bike-share facilities and pedestrian connections to the bus stops and commercial buildings along Van Nuys Boulevard.

In Inglewood, the future Crenshaw Line project also presents significant opportunities for workforce housing development. The UCLA Anderson team believes the catalyst for development is a prime 3.5-acre site adjacent to the Florence/La Brea station already owned by the City of Inglewood.

"This is a transit gateway to the surrounding community," said Inglewood Mayor James T. Butts. "We embrace the report's conclusion that this site can spur retail and housing development within a half mile of the station, providing a great opportunity for new housing for thousands of residents nearby in the years ahead."

The study proposes a variety of policy recommendations for local cities and county government to incentivize private investment and narrow the financial gap that constrains the development of workforce housing. Among them are:

•    Project Finance — Establish a dedicated source for housing trust funds in L.A. County. Pursue creative use of existing funding sources. Establish financing districts to recapture benefits to land. •    Development Incentives — Utilize mobility hubs to catalyze livable development. Increase density bonuses for mixed-income development. Reduce parking requirements near transit. Reduce development fees for livable community development.

"We need to stop thinking in terms of development projects and start thinking about building sustainable neighborhoods and communities for working families," said Los Angeles Councilmember Mike Bonin, chair of the Los Angeles Transportation Committee and a member of the Los Angeles County Metropolitan Transit Authority Board. "We need to envision and build communities where people are free to choose to leave their cars behind and walk, bicycle, or commute to work or play by bus or train." ____________________________________________________________________________________