09 - Laserfiche WebLink

Nexus-Based Affordable Housing Fee Analysis for For-Sale Housing Draft Report 02/26/18 attributable to a Consumer Expenditure Survey category, EPS estimated the proportion of expenditures associated with each Economic Census category. After determining the amount of the household's expenditures that were used for employee wages, EPS estimated the number of employees those aggregate wages represent. EPS calculated the number of workers supported by that spending using the average wage per worker (also from the 2013 Economic Census). These wages ranged from a low of roughly $11,900 per year for workers in the personal laundry services industry to a high of more than $134,700 average salary for data processing, hosting, and related services industry. This methodology recognizes that a range of occupations and incomes exist in a given industry sector. For instance, the methodology used to generate Tables A-1 to A-6 in Appendix A distinguishes between the typical incomes of workers in different types of retail stores (e.g., "food and beverage stores" versus"general merchandise stores"), rather than assuming all retail sector workers earn the same income. However, the average wage is used for each sub- category of industry employment and represents a reasonable proxy for the range of incomes in that group: while some employees will have higher wages and require lower subsidies, others will have lower incomes and require higher subsidies. Using the average approximates the total housing subsidy needed by workers in that industry. To calculate the number of households supported by the expenditures of market-rate housing units, EPS estimated the employees' household formation rates. Importantly, employees generated from the increase in housing units do not all form households; some employees, in the retail and food services industries in particular, are young workers and do not form households. Data from the Bureau of Labor Statistics indicates that 12.5 percent of retail/restaurant workers are age 16-19, but an average of only 1.9 percent of workers in the workforce overall. EPS applied these discounts to household formation by type of business to get a more accurate calculation of households formed by the employees and the average total incomes of those households. To get the overall households' income rather than the individual workers', the wages of workers forming households were multiplied by the average of approximately 1.67 workers per working household in Pleasanton.4 This assumption implies the workers in a given household will have roughly equivalent pay per hour. While certainly there will often be some variation in wages per employee within a household, on average this assumption is reasonable because it implies comparable levels of education and training among all workers in a household. The average household incomes then are allocated to various income categories to estimate the number of affordable housing units demanded in each income category (50 through 120 percent of AMI). A simplified example of these calculations follows: A. Number of Households (prototype project) 1,000 B. Average Household Income (in the project) $125,000 C. Aggregate Household Income (A x B) $125 million D. Average Income Spent on Food Away From Home 4 Workers per working household based on American Community Survey (ACS) Census data. Although ACS data reported is based on historical figures, these figures can vary somewhat based on ongoing revisions to the ACS data. Economic& Planning Systems, Inc. 15 P 1510005 1511110�santonFa ReportWfordablejlcusIngF,s1„F,e,onozzb,e,o,saka«,