Attachment No. 1
City of Norwalk
Analysis of Impediments to
Fair Housing Choice
2025-2030
DRAFT
Public Comment Period (English and Spanish):
<<<OCTOBER 18, 2024, to NOVEMBER 18, 2024>>>
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 2 of 76 Table of Contents
CHAPTER 1: Introduction................................ ................................ ................................ .................... 7
1. Purpose of the Report ................................ ................................ ................................ ..................... 7
2. Methodology & Organization of the Report ................................ ................................ ..................... 7
3. Legal Framework ................................ ................................ ................................ ............................ 7 A. Federal Fair Housing Act 1968 ................................ ................................ ................................ .... 8 B. California Employment and Fair Housing Act ................................ ................................ .............. 8 C. Other Fair Housing Legislation ................................ ................................ ................................ .... 9 CHAPTER 2: Public Participation ................................ ................................ ................................ ..... 11 A. Public Participation Activities and AI Review ................................ ................................ ............. 11 B. Community and Stakeholder Survey ................................ ................................ ......................... 11 C. Public Meetings ................................ ................................ ................................ ........................ 11 D. Stakeholder One-On-One Interviews ................................ ................................ ........................ 12 E. Housing Summit ................................ ................................ ................................ ........................ 12 E. Public Review ................................ ................................ ................................ ........................... 15 CHAPTER 3: Community Profile ................................ ................................ ................................ ....... 16
1. Local Context ................................ ................................ ................................ ................................ 16
2. Demographic Profile ................................ ................................ ................................ ..................... 16 A. Population ................................ ................................ ................................ ................................ . 16 B. Age Distribution ................................ ................................ ................................ ......................... 17 C. Language Spoken ................................ ................................ ................................ ..................... 17 E. Race/Ethnicity ................................ ................................ ................................ ........................... 18 F. Household Type ................................ ................................ ................................ ........................ 18 G. Special Needs Populations ................................ ................................ ................................ ....... 19 H. Families with Children ................................ ................................ ................................ ............... 20 I. Large Households ................................ ................................ ................................ ...................... 20 J. Homeless Population ................................ ................................ ................................ ................. 21
3. Housing Profile ................................ ................................ ................................ ............................. 23 A. Housing Unit Growth ................................ ................................ ................................ ................. 24 B. Housing Unit Type ................................ ................................ ................................ .................... 24 C. Housing Unit Conditions ................................ ................................ ................................ ........... 24 D. Housing Tenure – Owners, Renters, and Vacant Units ................................ ............................. 25 E. Housing Costs and Affordability ................................ ................................ ................................ 26 F. Housing Cost Burden ................................ ................................ ................................ ................ 30
4. Race and Segregation ................................ ................................ ................................ .................. 32 A. Dissimilarity Index ................................ ................................ ................................ ..................... 32
5. Racially or Ethnically Concentrated Areas of Poverty ................................ ................................ ... 33
6. Income, Workforce, and Employment Profile ................................ ................................ ................ 35
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 3 of 76 A. Median Household Income ................................ ................................ ................................ ........ 35 B. Income by Household Characteristic ................................ ................................ ......................... 36 C. Income by Race/Ethnicity ................................ ................................ ................................ ......... 37 D. Employment ................................ ................................ ................................ .............................. 37 C. Unemployment ................................ ................................ ................................ .......................... 39
7. Transportation Profile ................................ ................................ ................................ ................... 40 A. Public Transit ................................ ................................ ................................ ............................ 40 B. Train Servies ................................ ................................ ................................ ............................. 40 CHAPTER 4: Lending Practices ................................ ................................ ................................ ........ 42
1. Laws Governing Lending ................................ ................................ ................................ .............. 42 A. Community Reinvestment Act (CRA) ................................ ................................ ........................ 42 B. Bank Regulators for the CRA ................................ ................................ ................................ .... 42 C. Federal Reserve’s Role ................................ ................................ ................................ ............ 42
2. Home Mortgage Disclosure Act (HMDA) ................................ ................................ ....................... 43
3. Government-Backed Loans ................................ ................................ ................................ .......... 43 A. Federal Housing Administration ................................ ................................ ................................ 43 B. Veterans Administration (VA) Home Loans ................................ ................................ ............... 43 C. Rural Housing Services/Farm Service Agency (RHA/FSA) ................................ ....................... 44
4. Conventional Loans ................................ ................................ ................................ ...................... 44
5. Lending Findings ................................ ................................ ................................ .......................... 44 A. Refinancing ................................ ................................ ................................ ............................... 46 B. Home Improvement................................ ................................ ................................ ................... 46 C. Demographics of Loan Applicants ................................ ................................ ............................. 46 D. Income of Loan Applicants ................................ ................................ ................................ ........ 47 CHAPTER 5: Public Practice ................................ ................................ ................................ ............. 51
1. Housing Element Law and Compliance ................................ ................................ ........................ 52
2. Land Use Element ................................ ................................ ................................ ........................ 53
3. Zoning Ordinance ................................ ................................ ................................ ......................... 54 A. Zoning Definitions ................................ ................................ ................................ ..................... 54 B. Zoning Consistent with Fair Housing ................................ ................................ ......................... 56 C. Zoning Conflict with Fair Housing: ................................ ................................ ............................. 56 D. Recommended Zoning Changes................................ ................................ ............................... 56 E. Other Conflict Considerations ................................ ................................ ................................ ... 57 CHAPTER 6: Fair Housing Profile ................................ ................................ ................................ ..... 58
1. Homeownership – Private Sector Practices ................................ ................................ .................. 58 A. Home Purchase Process ................................ ................................ ................................ .......... 58 B. Real Estate Advertisement ................................ ................................ ................................ ........ 58 C. Real Estate Agents ................................ ................................ ................................ ................... 59
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 4 of 76
2. Rental Housing Process ................................ ................................ ................................ ............... 59 A. Advertisement for Rental Units ................................ ................................ ................................ .. 59 B. Fair Housing Complaints and Enforcement ................................ ................................ ............... 60 CHAPTER 7: Fair Housing Process Since 2020-2025 AI ................................ ................................ . 61 CHAPTER 8: Fair Housing Action Plan 2025-2030 AI ................................ ................................ ...... 65
1. Data Collection and Engagement Conclusions ................................ ................................ ............. 65
2. Setting Fair Housing Goals and Priorities ................................ ................................ ..................... 66
3. Contributing Factors to Fair Housing Issues ................................ ................................ ................. 67
4. Priority Goals and Actions................................ ................................ ................................ ............. 68 A. Affordable Housing Contributing Factors: ................................ ................................ ............. 68 B. Housing Services Contributing Factors: ................................ ................................ ................ 68 C. Homeless Housing Contributing Factors:................................ ................................ .............. 68 D. Employment & Income Contributing Factors: ................................ ................................ ........ 68 E. Fair Housing Education Contributing Factors: ................................ ................................ ...... 69 F. Goals ................................ ................................ ................................ ................................ .... 69
5. Regional Collaboration ................................ ................................ ................................ ................. 73 Appendix A – Federal Fair Housing Laws ................................ ................................ ........................ 74 Appendix B – Community Engagement Summary ................................ ................................ .......... 76
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 5 of 76 Figures
Figure 1. Location Map - Norwalk ................................ ................................ ................................ ........ 16 Figure 2. Cost Burden Percent ................................ ................................ ................................ ........... 300 Figure 3. Median Earnings by Industry Source 2018-2022 5-Year Estimates ................................ ..... 399 Figure 4. Norwalk Transit - Source: Norwalk.org ................................ ................................ .................. 40 Figure 5. Norwalk - General Plan Land Use Map ................................ ................................ ............... 544
Tables
Table 1: Regional Population Increase ................................ ................................ ................................ 17 Table 2: Regional Population Percentage Increase ................................ ................................ ............. 17 Table 3: Age Characteristic ................................ ................................ ................................ .................. 17 Table 4: Language Spoken at Home ................................ ................................ ................................ .... 18 Table 5: Current Race & Ethnicity Comparison ................................ ................................ .................... 18 Table 6: Household Type and Size - City ................................ ................................ ............................. 19 Table 7: % Elderly Population ................................ ................................ ................................ .............. 19 Table 8: Persons with Disabilities Profile ................................ ................................ ............................. 20 Table 9: Families with Children ................................ ................................ ................................ ............ 20 Table 10: Single Parent Households ................................ ................................ ................................ .... 20 Table 11: Household Size – Comparison ................................ ................................ ............................. 21 Table 12: Occupants Per Room ................................ ................................ ................................ ........... 21 Table 13: Homeless Point-In-Time Count ................................ ................................ ............................ 23 Table 14: Homeless Point-In-Time Count ................................ ................................ ............................ 23 Table 15: Demographics Summary ................................ ................................ ................................ ...... 23 Table 16: Housing Unit Growth ................................ ................................ ................................ ............ 24 Table 17: Housing Characteristics ................................ ................................ ................................ ....... 24 Table 18: Year Unit Built – City ................................ ................................ ................................ ............ 25 Table 19: Year Unit Built- County v. California ................................ ................................ ..................... 25 Table 20: Household Tenure – Owner v. Renter ................................ ................................ .................. 25 Table 21: Housing Unit Tenure Comparison ................................ ................................ ........................ 26 Table 22: Housing Unit Size by Tenure ................................ ................................ ................................ 26 Table 23: Changes in Value, Rent, and Income for Norwalk ................................ ................................ 26 Table 24: HUD Fair Market Rents (FMRs) ................................ ................................ ........................... 27 Table 25: Affordability Rent & Mortgage Combined ................................ ................................ ............. 28 Table 26: Affordable Rental Housing Units in Norwalk ................................ ................................ ......... 28 Table 27: Days On the Market ................................ ................................ ................................ ............. 29 Table 28: Median Home Sales Prices ................................ ................................ ................................ .. 30 Table 29: Monthly Market Report June 2024 - City of Norwalk, CA ................................ ...................... 30 Table 30: Housing Cost Burden Overview ................................ ................................ ........................... 31 Table 31: Income by Cost Burden (Owners and Renters Combined) Households ............................... 31 Table 32: Income by Cost Burden – OWNERS ................................ ................................ .................... 31 Table 33: Income by Cost Burden – RENTERS ................................ ................................ ................... 32 Table 34: Index of Dissimilarity ................................ ................................ ................................ ............ 32 Table 35: RCAP Block Groups (38) ................................ ................................ ................................ ..... 34 Table 36: ECAP Block Groups (42)................................ ................................ ................................ ...... 35 Table 37: Median Household Income ................................ ................................ ................................ ... 36 Table 38: 2024 HUD Median Income Limits ................................ ................................ ......................... 36 Table 39: Household Income ................................ ................................ ................................ ............... 36
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 6 of 76 Table 40: Household Tenure & Income Limit Bracket Comparison ................................ ...................... 36 Table 41: Median Household Income Per Race/Ethnicity ................................ ................................ ..... 37 Table 42: Top Employers ................................ ................................ ................................ ..................... 37 Table 43: Workforce by Industry ................................ ................................ ................................ .......... 38 Table 44: Occupation - Full-Time ................................ ................................ ................................ ......... 39 Table 45: Average Salary Per Gender ................................ ................................ ................................ . 39 Table 46: Unemployment ................................ ................................ ................................ ..................... 40 Table 47: CRA Rating for LA County ................................ ................................ ................................ ... 43 Table 48: CRA Rating for Norwalk ................................ ................................ ................................ ....... 43 Table 49: Selected Census Tract from the 2022 FFIEC HMDA ................................ ............................ 45 Table 50: Loan Type - Total Applicants ................................ ................................ ................................ 45 Table 51: Action by Lender ................................ ................................ ................................ .................. 45 Table 52: Loan Application, Denials, Percentage ................................ ................................ ................. 46 Table 53: Purpose of Loan Applied For ................................ ................................ ................................ 46 Table 54: Current Race & Ethnicity Comparison % of Total Population ................................ ............... 47 Table 55: Racial Demographics of Loan Applicants ................................ ................................ ............. 47 Table 56: Ethnic Demographics of Loan Applicants ................................ ................................ ............. 47 Table 57: Top Reasons for Denial ................................ ................................ ................................ ....... 48 Table 580: Lenders with Highest Denial Rates ................................ ................................ .................... 49 Table 591: Top Ten Lenders ................................ ................................ ................................ ................ 50 Table 602: Potentially Discriminatory Language in Listings of For-Sale Homes ................................ ... 59 Table 613: Potentially Discriminatory Language in Rental Listings ................................ ...................... 60 Table 624: Past Impediments and Actions ................................ ................................ ........................... 64 Table 635: Contributing Factors to Fair Housing Issues ................................ ................................ ....... 68 Table 646: Goals & Action Steps ................................ ................................ ................................ ......... 72
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 7 of 76 CHAPTER 1: Introduction
1. Purpose of the Report
The Housing and Community Development Act of 1974 mandates that communities receiving Housing and Urban Development (HUD) funds must actively promote fair housing and are required to:
• Proactively combat housing discrimination by actively addressing discrimination within their jurisdiction;
• Promote fair housing choices for all individuals;
• Provide opportunities for all individuals to live in any housing development, regardless of race, color, religion, gender, disability, familial status, or national origin; • Promote housing that is accessible to and usable by persons with disabilities; and • Comply with the non-discrimination requirements of the Federal Fair Housing Act (the Act).
The preparation of an Analysis of Impediments to Fair Housing Choice (AI) meets HUD requirements.
An AI report thoroughly examines a jurisdiction’s laws, regulations, and administrative policies, procedures, and practices that impact housing location, availability, and accessibility. By identifying and addressing impediments, communities can promote fair housing for all individuals.
Additionally, an AI serves as an assessment of both public and private conditions that impact fair housing choice. An impediment to fair housing choice is any action, omission, or decision that limits or restricts housing options for members of protected classes. This AI will:
• Evaluate population, household, income, and housing characteristics by protected classes; • Evaluate public and private sector policies that impact fair housing choice; • Review previous AI progress of the City and County;
• Identify blatant or de facto impediments to fair housing choice where any may exist; and • Recommend specific strategies to overcome the effects of any identified impediments.
2. Methodology & Organization of the Report
The AI was written using quantitative data analysis, qualitative research, and community engagement to identify and address impediments to fair housing. A thorough and inclusive assessment was made by integrating demographic studies, policy reviews, stakeholder consultations, and community input.
The report is organized as follows: legal framework ; public participation; data collection and analysis of the community profile; lending and public practices; and fair housing profile. Next, it reviews the progress made in fair housing activities since the last AI cycle, identifies current impediments, and concludes with actionable recommendations and implementation strategies. This structured approach not only highlights existing challenges but also provides a clear roadmap for fostering equitable housing opportunities for all residents.
3. Legal Framework
Fair housing choice enables individuals to select their preferred place of residence. To ensure equal access, the federal government and the State of California have enacted laws prohibiting housing discrimination.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 8 of 76
HUD’s Office of Fair Housing and Equal Opportunity has played a lead role in enforcing an Act since its adoption in 1968. The Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status (presence of child under the age of 18 and pregnant women), and or disability.
Due to the critical role of housing choice in personal development, achieving fair housing is a shared goal for government, public officials, and private citizens if social equity is to become a reality.
A. Federal Fair Housing Act 1968
The Fair Housing Act provides federal -level protection against discrimination in housing. After a protracted legislative battle, urban riots, and the assassination of Dr. Martin Luther King Jr., the Act was enacted in 1968. It expanded the nondiscriminatio n safeguards outlined in the 1964 Civil Rights Act to encompass the housing market. Specifically, the Act prohibits housing discrimination based on race, color, religion, gender, disability, familial status, or national origin. Additionally, on February 3, 2012, HUD issued a Final Rule that bars entitlement communities, public housing authorities, and other recipients of federal housing resources from discriminating based on actual or perceived sexual orientation, gender identity, or marital status. Individuals protected by fair housing laws are commonly referred to as members of the protected classes.
The Act applies to "dwellings," which are described as buildings intended for living or plots of land where a residence is planned. This term is quite inclusive, covering everything from homeless shelters to vacation homes. However, there are certain exceptions to the Act, such as buildings with up to four units that are owner -occupied, single-family homes that are sold or rented directly by the owner without a broker, and housing managed by organizations or private clubs that restrict access to their members.
Equal access to housing is a basic civil right that allows people in protected classes, as defined in the Act, to pursue their personal, educational, and professional goals. Ensuring fair housing is essential for personal growth and requires the commitment of government, public officials, and private citizens to achieve social equity.
B. California Employment and Fair Housing Act
The California Civil Rights Department (CRD), effectively renamed as of July 2022, formally known as the State Department of Fair Employment and Housing (DFEH), enforces California laws that offer protection and financial compensation to victims of illegal housing practices. The Fair Employment and Housing Act (FEHA) (Government Code Section 12955 et seq.) prohibits discrimination and harassment in housing, including:
• Advertising
• Application and selection process
• Unlawful evictions
• Terms and conditions of tenancy
• Privileges of occupancy
• Mortgage loans and insurance
• Public and private land use practices (zoning)
• Unlawful restrictive covenants
The following categories are protected by FEHA:
• Race or color
• Ancestry or national origin
• Sex
• Marital status
• Source of income
• Sexual orientation
• Gender identity/expression
• Genetic information
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 9 of 76 • Familial status (households with children under 18 years of age) • Religion
• Mental/physical disability
• Medical condition
• Age
Additionally, state laws include comparable, reasonable accommodations and accessibility requirements as those found in the federal Act.
C. Other Fair Housing Legislation
In October 2019, Senate Bill 329 became law, prohibiting landlords from denying rental applications solely based on a person's source of income. This law allows families with housing assistance, including Section 8 vouchers, to apply for and secure affordable housing in their desired neighborhoods, provided they meet the qualifications.
The Unruh Civil Rights Act safeguards against discrimination by all business establishments in California, including housing and accommodations, based on age, ancestry, color, disability, national origin, race, religion, sex, and sexual orientation. Although the Act specifically mentions "sex, race, color, religion, ancestry, national origin, disability, or medical condition" as protected classes, the California Supreme Court has held that protections under the Unruh Act are not necessarily restricted to th ese characteristics.
Additionally, the Ralph Civil Rights Act (California Civil Code Section 51.7) prohibits violence or threats of violence based on race, color, religion, ancestry, national origin, age, disability, sex, sexual orientation, political affiliation, or involvement in a labor dispute. Hate violence incl udes verbal or written threats, physical assault, or attempted assault, as well as graffiti, vandalism, or damage to property.
The Bane Civil Rights Act (California Civil Code Section 52.1) protects individuals in California from having their rights, including equal access to housing, infringed upon through force or threats of force. It also imposes criminal penalties for hate crimes, but convictions are only applicable if the speech involved directly threatened violence, not just any speech alone.
California Civil Code Section 1940.3 prohibits landlords from asking potential tenants about their immigration or citizenship status. While landlords in most states can inquire and reject applicants based on their immigration status, this law also prevents local jurisdictions from requiring landlords to make such inquiries.
Fair Employment & Housing Act California law protects people from discrimination, harassment, and retaliation in jobs and housing based on race, color, religion, sex, gender identity, sexual orientation, national origin, disability, and age.
FEHA Regulations implement and interpret the provisions of FEHA. They cover various topics, including definitions, employer responsibilities, and harassment prevention training requirements.
Department’s Procedural Regulations outline the procedures and policies that departments must follow to ensure compliance with state and federal laws. They include guidelines for rulemaking, enforcement, and administrative processes.
California Family Rights Act (CFRA) provides eligible employees with up to 12 weeks of unpaid, job - protected leave to care for their own serious health condition, a family member’s serious health condition, or to bond with a new child. It applies to employers with five or more employees.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 10 of 76 Civil Code Section 5.9 Prohibits sexual harassment in business, service, or professional contexts outside of traditional employment relationships.
Disabled Person Act This act ensures that individuals with disabilities have the same rights as the general public to access public places, services, and accommodations. It prohibits discrimination based on disability in various aspects of public life.
California Trafficking Victims Protection Act offers protections and services to human trafficking victims. It allows the State to sue for damages and ensures their communications with caseworkers remain confidential.
In Addition to these acts, Government Code Sections 11135, 65008, and 65580 -65589.8 prohibit discrimination in state-funded programs and land use decisions. Recent changes to state law also require local jurisdictions to provide housing options for special needs groups. • Housing for persons with disabilities
• Housing for homeless persons, including emergency shelters, transitional housing, and supportive housing
• Housing for extremely low-income households, including single-room occupancy units • Housing for persons with developmental disabilities
Appendix A – Federal Fair Housing Laws provides additional Federal laws related to Fair Housing.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 11 of 76 CHAPTER 2: Public Participation
City staff worked with outside consultants, MNS Engineers and Michael Baker International , to provide technical assistance and guide the AI planning process. The City and its consultants undertook a robust consultation process with Michael Baker International as the lead in the public participation process, as well as the data research and analysis required to complete the AI report and Consolidated Plan.
A. Public Participation Activities and AI Review
Public Participation was completed to concurrently cover and review both the AI and the 2025 -2030 Consolidated Plan. A community engagement program was undertaken, including:
1. Community and Stakeholder Survey
2. Community Meeting
3. Social Services Meeting
4. Stakeholder Interviews
5. Housing Summit
6. Public Review period
The following sections of this Chapter detail each activity. As a result of the participation activities, summaries were prepared, and the AI report was completed. City staff provided comments which were incorporated into the AI report. A draft of the AI was made available for community stakeholders and the general public to review and comment. The housing summit was advertised in advance as w ell as the 30-day public review period and public hearing.
B. Community and Stakeholder Survey
A Community and Stakeholder Survey was conducted as part of the 2024 AI process and 2025-2030 Consolidated Plan process. From May 1 to October 15, 2024, the City hosted an online and paper survey made available on its website and distributed to community members and stakeholders throughout the City. The survey was conducted to solicit the community’s input on the City’s most pressing needs, particularly in the areas of housing, community facilities, homelessness, neigh borhood improvements, community services, and affordable and fair housing. Respondents identified the top issues that limit housing options and affordability in the City. The City received 353 responses in English and 84 responses in Spanish, with a grand total of 437 responses. The Community Needs Summary is included in Appendix B – Community Engagement Summary.
C. Public Meetings
As part of the public engagement process, two community meetings were held on June 6, 2024, at 10:00 AM at the Norwalk Senior Center, located at 14040 San Antonio Drive, and at 6:00 PM at the Social Survey Highlights
• Majority of respondents were homeowners.
• Respondents stated Norwalk has a fair amount of affordable housing available to residents.
• Respondents feel somewhat informed of their rights and responsibilities as a tenant or homeowner.
• Respondents do not agree that Norwalk has areas which lack high -speed internet service or connectivity.
• Respondents do not agree that Norwalk is vulnerable to flooding or other natural disasters.
•
•
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 12 of 76 Services Center, located at 11929 Alondra Boulevard. A public meeting was noticed and held on November 14, 2024, at 11:00 AM at City Council Chambers, located at 12700 Norwalk Boulevard. These meetings were held to inform the public about the AI planning process and solicit public input on community housing and housing discrimination. The attendees worked in small groups to answer the Stakeholder one -on-one interview questions provided above. A public meeting summ ary has been included in Appendix B – Public Outreach.
D. Stakeholder One-On-One Interviews
The planning process included several stakeholder interviews with City staff, government officials and other nonprofit social service agencies doing business in the City. A summary was prepared and analyzed as part of the AI and Consolidated Plan policies and recommendations. A Stakeholder Summary is included in Appendix B – Public Outreach. Common interview questions include:
a) What do you feel are your agency’s (or City)
top priorities?
b) How do you envision the affordable housing
landscape evolving over the next five years
within our community?
c) What specific challenges or barriers do you
see for low- and moderate-income residents
in attaining affordable housing within the
city?
d) What strategies or initiatives do you believe
are most effective in increasing access to
affordable housing in the city?
e) How can we ensure that the needs of the
city’s vulnerable populations, such as low -
income families, seniors, and individuals with
disabilities, are adequately met?
f) Do you feel there is local support for
broadband access and technical literacy?
g) How do you feel the City should spend their
annual CDBG allocation?
E. Housing Summit
On behalf of the City of Norwalk, the Community Development Department hosted a housing summit on Wednesday, September 25, 2024, from 9:00 AM to 12:00 PM at the Norwalk Arts & Sports Complex, Stakeholder Concerns:
• Rising housing prices
• Rising rental rates
• Limited number of vouchers
• Permanent housing for those with mental
and physical disabilities
• Homeless prevention
• HUD program compliance is difficult
• Case management is short-term
• Limited number landlords accepting
Section 8 and non-citizen
• High cost of fair housing legal assistance
• Those needing assistance are income
ineligible
• Rental deposits are high, and application
reviews are stringent.
• Limited number of larger family rental
units
What community facilities are most
needed?
• ADA curb cuts and sidewalk safety
• Trails at parks
• Senior center is at capacity, expansion is
needed
What homeless housing services are
most needed?
• Housing rehab program is very important
• Air conditioning where seniors live
Economic Development Needs:
• Commercial property owners are not maintaining their properties. • Business owners are not creating attractive buildings and or storefronts • Traffic is impacting pedestrian safety
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 13 of 76 Rich Rehearsal Hall (MPR), 13200 Clarkdale Avenue, Norwalk, CA 90650. The summit addressed key topics, including fair housing law and discrimination, permanent supportive housing, interim and permanent supportive services, affordable housing development, a nd program management, and workforce development in Norwalk and Los Angeles County.
The event was attended by 40 participants from 22 social service agencies, local and county governments, and private sector partners interested in housing issues in Norwalk. Five (5) speakers delivered presentations, providing current and insightful inform ation on each topic. Following the presentations, attendees engaged in small group sessions to complete workbook table discussions, network, and seek consensus on potential solutions to current housing challenges.
The following agencies attended:
• City of Norwalk • Norwalk-La Mirada Unified School District (NLMUSD)
• Norwalk Social Services Commission • Helpline Youth Counseling • Weingart • LA CADA
• Soroptimist Village Foundation • KW Realty
• Primestor • Hope Inc.
• Assurance Learning Academy • Kingdom Causes Bellflower (KCB) • Los Angeles County Homeless
Initiative
• Norwalk Housing Authority (NHA)
• LA County • Fair Housing Foundation (FHF)
• SELACO WDB • Mercy House
• Women’s & Children’s Crisis Center
(DV Shelter)
• US Department of Housing and Urban
Development (HUD)
• Jovenes, Inc. • Global Urban Strategies
The following lists the Keynote Speakers for the Housing Summit:
Keynote Speakers Speaker Topic
Martha Torres, Fair Housing Foundation
• Fair Housing Law and Discrimination
• Complaints and discrimination cases in
Norwalk
Ed Holder & Michael Raley, Mercy Housing
• Site and build affordable housing
• Challenges and constraints of building
affordable housing
• Funding nuances
Jeff Gaddes, Dignity Moves • Interim Housing Needs
• Successful Models of Interim Housing
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 14 of 76 Ben Rosen, Weingart
• Advocacy for interim and supportive housing
services
• Resident stabilization
• Transition to permanent housing
Omar E. Hernandez, Global Urban Strategies
• Affordability funding gap
• First Time Homebuyer Programming
• Funding assistance
• Special needs for disabilities
Guest speaker participated in a panel discussion. Attendees were encouraged to ask questions, and the speakers provided responses. The discussion was engaging with the panel responding to the same questions or topics. Two major questions were brought to light after the speakers’ presentations:
• How do we push against the stigma of affordable low -income housing and housing for the homeless to fulfill that need for housing?
• What are the plans for vulnerable intellectual and disabled populations?
The third segment of the housing summit, enabled attendees to work with one another to complete the “Housing Summit: 2024 Attendee Workbook.” Each participant received a Workbook containing two questions per topic presented by the speakers. Attendees discussed workbook questions with their table mates and recorded their responses in the Workbook. Below are the questions and the consensus reached during the table discussions.
Topic Question
Fair Housing Law and Discrimination
1. In your opinion, what factors contribute to housing
discrimination (i.e. race, ethnicity, gender, etc.)?
2. What methods do you feel will reduce housing
discrimination from occurring?
Permanent Supportive Housing
1. How should supportive housing programs work to
ensure family stability, preventing individuals’
return to homelessness?
2. Who do you feel are the most vulnerable
populations that most need permanent supportive
housing? (i.e. co-op, familial, veteran, etc.)
Interim and Permanent Supportive Services
1. In your opinion, what types of supportive services
are needed as part of interim housing? Please
explain.
2. What are some creative ways to provide housing to
individuals experiencing homelessness?
Affordable Housing Development
1. What types of affordable housing units are most
needed in Norwalk? (i.e. small apartments, large
family, senior, accessible)
2. Affordable housing development is expensive!
What types of assistance do developers need the
most?
Program Management
1. What do you feel are the challenges for low -and
moderate-income households in becoming a
homeowner?
2. How can these challenges be addressed?
Workbook Questions: A workbook summary can be found in Appendix B.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 15 of 76 E. Public Review
A 30 -day public review period , beginning October 21, 2024, and ending November 21, 2024, was provided to receive any outstanding comments from agencies and the general public. A public meeting noticed and held on November 14, 2024, at 11:00 AM at the Norwalk City Council Chambers, located at 12700 Norwalk Boulevard. Any written public comments received, and any discussion items raised during the public review period and/or hearing were directly addressed as part of AI (TBD).
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 16 of 76 CHAPTER 3: Community Profile
1. Local Context
The City of Norwalk, incorporated
in 1957, is located in the eastern
side of Los Angeles County and
has a population of 101,893. The
City is a residential suburb located
17.5 miles from Downtown Los
Angeles and closer to the Orange
County border.
2. Demographic Profile
This section explores the City's
demographics as they relate to
housing choice and affordability.
The demographics assessed are
the population age distribution,
spoken languages , race/ethnicity,
household types, and special
needs populations.
Analyzing trends in the population
regarding these characteristics and
then comparing them to the
housing market can indicate places
or people who may not be served
and who need assistance.
This section explores the City’s
most recent data gathered by the
American Community Survey,
2018-2022 ACS 5-Year Estimates.
To provide context, it will compare
with previous years and the
County.
A. Population
The number of people in Norwalk directly impacts the housing needs. The City has seen a decrease in population recently. Between 2022 and 2020, the population decreased by 0.86%. Los Angeles County saw a similar decrease in population during the same time period (0.77%).
Figure 1. Location Map - Norwalk
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 17 of 76 Table 1: Regional Population Increase
The City’s Total Population of individuals was 105,549 in 2010 and 102,773 in 2020 , which is a 2.63% decrease. In comparison, the County of Los Angeles reported 9,818,605 individuals in 2010 and 10,014,009 individuals in 2020. This represents a 1.99% increase in total population. The State of California had 37,253,956 individuals in 2010 and 39,538,223 in 2020. This represents a 6.13% increase.
In all, the City of Norwalk had no significant changes in population.
Regional Population Percentage Increase
Area 2000-2010 % Chg 2010-2020 % Chg 2000-2020 % Chg
City 103,298 105,549 2.18% 105,549 102,773 -2.63% 103,298 102,773 -0.51% County 9,519,338 9,818,605 3.14% 9,818,605 10,014,009 1.99% 9,519,338 10,014,009 5.20% State 33,871,648 37,253,956 9.99% 37,253,956 39,538,223 6.13% 33,871,648 39,538,223 16.73% Source: 2000 DEC U.S. Census; 2010 DEC U.S. Census; 2020 DEC U.S. Census Table 2: Regional Population Percentage Increase
B. Age Distribution
Different age groups may have different needs and accessibility when it comes to housing options. For example, education, family situation, or income can impact the housing needed. The City and the County have about the same (within +/ - 0.5%) portion of their age populations except for two of the categories below. The City’s population has 1.92% more children than the County’s population overall. This may mean that Norwalk has more children than neighboring cities in LA County. The other age group with a noticeable difference in population is 45-64. Norwalk differs from the County overall in this category by -
1.76%.
Age Characteristic
Age City % of Total
Population County % of Total
Population
Under 18 24,689 23.62% 2,178,559 21.70%
18-24 10,031 9.60% 952,944 9.49%
25-44 31,334 29.98% 3,002,523 29.90%
45-64 24,558 23.50% 2,536,515 25.26%
65 or older 13,912 13.31% 1,370,141 13.65%
Total: 104,524 100.00% 10,040,682 100.00%
Median Age 35.3 years old 36.7 years old
Source: 2016-2020 ACS 5 -Year Estimates
Table 3: Age Characteristic
C. Language Spoken
People who have a limited ability to read, write, speak, or understand English, otherwise known as limited English proficiency (LEP), can face unique challenges when finding housing in Norwalk. Recipients of HUD funds, including the City , are required to provide assistance to LEP citizens in increasing accessibility to housing programs. This is especially relevant to the City of Norwalk, where 63.8% of the population speak a language other than English at home. The majority of the City (51.5%) speak Spanish at home. Of the entire city population, excluding children under 5 years old, 22.5% report speaking English less than “very well.”
Regional Population Increase
Total Population 2010 2020 2022 % Change (Chg) 2020 & 2022 City 105,549 102,773 101,893 -0.86%
County 9,818,605 10,014,009 9,936,690 -0.77%
State 37,253,956 39,538,223 39,356,104 -0.46%
Source: 2010 DEC U.S. Census; 2020 DEC U.S. Census; 2018-2022 ACS 5-Year Estimates
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 18 of 76 Language Spoken at Home
(persons 5 years old and older)
City Number %
Population 5 years and over 97,122 100.0%
English only 35,147 36.2%
Language other than English 61,975 63.8%
Speak English less than "very well" 21,811 22.5%
Spanish 49,635 51.1%
Speak English less than "very well" 16,745 17.2%
Other Indio-European languages 1,941 2.0%
Speak English less than "very well" 653 0.7%
Asian and Pacific Island languages 10,012 10.3%
Speak English less than "very well" 4,240 4.4%
Other languages 387 0.4%
Speak English less than "very well" 173 0.2%
Source: 2016-2020 ACS 5-Year Estimates
Table 4: Language Spoken at Home
E. Race/Ethnicity
Race is defined as a group of people connected by common descent or heredity, while ethnicity refers to a social group sharing a unique culture, religion, language, or similar traits. Therefore, individuals from different ethnic backgrounds often have specific preferences when selecting housing types.
As of 2022, the Hispanic (of any Race) population makes up the majority of the City’s resident base, standing at 69%, a decrease of 4% since 2020 . The population that elected “some other race” is the highest group (of Race) , with approximately 39% of the Total Population (101,893) , an increase of 2% since 2020. The White population is the second highest group (of Race), with approximately 27% of the total population, and the Asian population is 13% of the total population, an increase of 35% since 2020.
Current Race & Ethnicity Comparison
City County
Race/Ethnicity 2020 2022 %Chg 2020 2022 %Chg
White 20,680 27,892 35% 3,259,427 3,937,901 21%
Black or African American 4,178 4,617 11% 794,364 780,993 -2% American Indian and Alaska Native 2,426 1,711 -29% 163,464 111,096 -32% Asian 14,038 13,691 -2% 1,499,984 1,473,634 -2%
Native Hawaiian & Other Pacific Islander 451 692 53% 24,522 23,400 -5% Some other race 39,327 40,237 2% 2,784,180 2,253,956 -19% Two or more races: 21,673 13,053 -40% 1,488,068 1,355,710 -9% Total 102,773 101,893 -1% 10,014,009 9,936,690 -1%
Hispanic 73,548 70,692 -4% 4,804,763 4,837,594 1%
Non-Hispanic 29,225 31,201 7% 5,209,246 5,099,096 -2%
Source: 2010 DEC U.S. Census; 2020 DEC U.S. Census; 2018-2022 ACS 5-Year Estimates Table 5: Current Race & Ethnicity Comparison
F. Household Type
From 2020 to 2022, the total number of households decreased in Norwalk by 240. During the same period, Family Households decreased while non-family households increased. Additionally, 46.4% of all households have individuals over 60 years old.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 19 of 76 Household Type and Size – City of Norwalk
2020 2022 % % Change
Total Households 26,748 26,508 -0.9%
Family Households 22,279 21,735 -2.4%
With own children under 18 yrs 9,198 9,008 -2.1%
Married couple with family 14,862 14,613 -1.7%
With own children under 18 yrs 6,567 6,339 -3.5%
Female householder, no husband present 4,960 4,418 -10.9% With own children under 18 yrs 1,635 1,553 -5.0%
Nonfamily households 4,469 4,773 6.8%
Householder living alone 3,262 3,685 12.9%
Householders 65 years and over 1,600 1,656 3.5%
Households with individuals under 18 years 11,823 11,478 -2.9% Households with individuals over 60 years 11,903 12,300 3.3% Average household size 3.81 3.74 -1.8%
Average family size 4.13 4.11 -0.5%
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 6: Household Type and Size - City
G. Special Needs Populations
The special needs population includes elderly individuals (defined by HUD to be 62 and older), frail elderly, those with mental, physical, or developmental disabilities, people struggling with addiction, and victims of domestic violence, dating violence, sexual assault, and stalking.
Although age isn’t a protected class under the Fair Housing Act, information about elderly households is relevant for local programs. Since the Fair Housing Act protects families with children and individuals with disabilities from discrimination, it is important to compare the location patterns of publicly supported housing for families with children versus housing for elderly populations and those with disabilities.
According to the 2018-2022 ACS 5-Year Estimates, elderly persons accounted for approximately 13.5% of the City’s population. Since 2020, the elderly population (65+ years of age) has decreased by 0.3%.
However, the elderly population specifically (85+ years of age) has increased by 0.43%.
% Elderly Population
City Percent of Population
Age 2010 2020 2022
65-74 5.35% 8.22% 8.13%
75-84 3.30% 3.89% 3.26%
85 and older 1.23% 1.63% 2.06%
Total 9.88% 13.73% 13.45%
Source: 2010 DEC U.S. Census; 2020 DEC U.S. Census; 2018-2022 ACS 5-Year Estimates Table 7: % Elderly Population
Disabled individuals often earn less than their non -disabled counterparts. This creates a need for affordable housing tailored to their needs. Physically disabled people require accessible housing, such as wheelchair-friendly accommodations. Under fair hou sing law, disability is a protected class. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination against people with disabilities in federally funded programs. Studies reveal that disabled individuals face discrimination more frequently than other protected classes. Public education is crucial to prevent discrimination against physically and mentally disabled persons.
According to the 201 6-2020 ACS 5 -Year Estimates, 10.2% of the population (103,364 total noninstitutionalized civilian population) who lived in the City reported a disability.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 20 of 76 Persons with Disabilities Profile
% of Population by
City
(total
noninstitutionalized
civilian population)
Hearing
Disability
Vision
Disability
Cognitive
Disability
Ambulatory
Disability
Self-Care
Disability
Independent
Living
Disability
10.2% 2,685 1,939 4,796 5,440 2,823 4,981
Source: 2016-2020 ACS 5-Year Estimates
Table 8: Persons with Disabilities Profile
H. Families with Children
The Fair Housing Act prohibits discrimination in housing against families with children under 18 years, pregnant individuals, or those in the process of obtaining legal custody. It ensures that housing providers cannot refuse to rent to families with child ren, evict them once a child joins the family, or impose overly restrictive rules related to children’s use of common areas. Familial status is a protected class under this law, covering families with children, pregnant persons, and those securing legal custody of a minor child.1
According to the 2016 -2020 ACS 5 -Year Estimates, 34.4% of the total households have children reported, and of the total households with children (18 years of age and younger), 17.8% are reported as Female-Headed households only. Single-parent households are reported to be 38% of all reported households in the City, 10% less than that of the County’s.
Families with Children
All Families
with Children
Female-Headed Households
with Children
Jurisdiction Total
Households Number % of Total
Households Number % of all Families
with Children
City 26,748 9,198 34.4% 1,635 17.8%
County 3,332,504 919,959 27.6% 207,136 22.5%
Source: 2016-2020 ACS 5-Year Estimates
Table 9: Families with Children
Single Parent Households
City County
Total Households 26,748 3,332,504
# of Single Parent Households 10,149 1,607,188
% of Single Parent Households 38% 48%
Source: 2016-2020 ACS 5-Year Estimates
Table 10: Single Parent Households
I. Large Households
A large household typically includes five or more occupants. Such households may sometimes indicate overcrowding, which can be associated with factors like ethnicity, age, immigration, and poverty. The 2018-2022 ACS 5 -Year Estimates identified households in the City with five or more persons, representing 28% (7,353) of all households. Of all the large households, 70% are owner-occupied, 30% are renter-occupied.
Overall, large households and persons who own and rent have increased 4 % between 2020 and 2022.
The number of large households accounted for 26% of total households in 2020 and 28% of total households in 2022. The U.S. Census defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens). Units with more than 1.5 persons per room are considered severely overcrowded. The Occupant Per Room Table 12 shows that approximately 15% of housing units are experiencing overcrowding.
1 Discrimination Against Families with Children | HUD.gov / U.S. Department of Housing and Urban Development (HUD)
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 21 of 76 Household Size – Comparison
2020 2022
Number % Number %
Total Occupied Housing Units 26,748 100.0% 26,508 100.0% Owner Occupied 17,680 66.10% 17,929 67.64%
Renter Occupied 9,068 33.90% 8,579 32.36%
Owner & Renter Occupied 19,665 73.5% 26,508 100.0%
1 person HH 3,262 12.20% 3,687 13.91%
2 persons HH 5,965 22.30% 5,334 20.12%
3 persons HH 4,898 18.31% 5,024 18.95%
4 persons HH 5,540 20.71% 5,110 19.28%
5 persons HH 3,642 13.62% 4,061 15.32%
6 persons HH 2,078 7.77% 1,812 6.84%
7 or more persons HH 1,363 5.10% 1,480 5.58%
Owner Occupied 12,738 72.05% 17,929 100.00%
1 person HH 1,837 10.39% 2,179 12.15%
2 persons HH 4,160 23.53% 3,788 21.13%
3 persons HH 3,162 17.88% 3,263 18.20%
4 persons HH 3,579 20.24% 3,551 19.81%
5 persons HH 2621 14.82% 2848 15.88%
6 persons HH 1,394 7.88% 1,241 6.92%
7 or more persons HH 927 5.24% 1,059 5.91%
Renter Occupied 6,927 76.39% 8,579 100.00%
1 person HH 1,425 15.71% 1,508 17.58%
2 persons HH 1,805 19.91% 1,546 18.02%
3 persons HH 1,736 19.14% 1,761 20.53%
4 persons HH 1,961 21.63% 1,559 18.17%
5 persons HH 1,021 11.26% 1,213 14.14%
6 persons HH 684 7.54% 571 6.66%
7 or more persons HH 436 4.81% 421 4.91%
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 11: Household Size – Comparison
Occupants Per Room
Occupant Per Room Occupants % of Total Occupied Housing Units
1.00 or less occupants per room 22,548 85.1%
1.01 to 1.50 occupants per room 2,698 10.2%
1.51 or more occupants per room 1,262 4.8%
Total Occupied housing units 26,508 100.0%
Source: 2018-2022 ACS 5-Year Estimates
Table 12: Occupants Per Room
J. Homeless Population
In 2018, the County of Los Angeles introduced the ‘City Plan to Prevent and Combat Homelessness: A Guide for Local Municipalities” to serve as a model for addressing homelessness by securing and enhancing income and promoting a variety of subsidized housing opportunities. The City of Norwalk took initiative and developed their own homeless strategic plan, titled “From Streets to Stability: A Strategic Action Plan to Address Homelessness in the City of Norwalk” in 2023. This report considered homeless counts, individual/familial needs, and housing inventory. This comprehensive report identified several key challenges in addressing homelessness:
• Resource Allocation – There is a significant need for financial resources to support homeless services and housing.
• Community Opposition – Residents are concerned after safety, loitering, and the impact on local businesses in areas relative to homeless shelters.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 22 of 76 • Coordination and Collaboration – The City ensures to coordinate with involving organizations and departments. However, it was found that effective collaboration is necessary to provide comprehensive support to individuals experiencing homelessness. • Data and Understanding – There is a need for accurate data collection in order to develop effective strategies and to allocate resources efficiently. • Legal and Policy Barriers – Navigating legal and policy barriers can complicate efforts to develop new housing and services for individuals experiencing homelessness.
Thus, the City identified five strategies to overcome the challenges in addressing homelessness:
• Enhanced Resource Allocation – Securing additional funding and resources through partnerships and grants will provide support to homeless services and housing initiatives. • Community Engagement – There is importance in increasing public awareness and education about homelessness. Strategies include community meetings, workshops, and campaigns to foster understanding and support for homeless initiatives. • Improved Coordination – A centralized system for managing resources and services among city departments, service providers, and community organizations ensure efficient and effective support for individuals experiencing homelessness.
• Data-Drive Approaches – The plan proposes using comprehensive data to understand the needs and demographics of the homeless population better, which will inform targeted interventions and resource allocation.
• Policy and Legal Reforms – The plan advocates for revising local policies and regulations to facilitate the development of homeless shelters and supportive housing. This includes addressing zoning laws and other legal barriers that may hinder the establishment of said facilities.
In all, the City of Norwalk aims to create a more supportive and effective system for addressing homeless, with the aim of permanently housing individuals.
Specific to homeless count, the Point-in-time counts are performed annually for Service Planning Area 7 (SPA 7). SPA 7 combines the City’s sheltered and unsheltered homeless population with that of surrounding cities. The homeless population in 2024 is 166. The largest majority of the homeless gender is Males, 68%; Hispanic, 71%; and Adults aged 25-54, 59%. These percentages are similar to those of January 2019 Point-in-time count reported in Norwalk’s prior AI (2020 -2025). The homeless population numbers in Norwalk have experienced fluctuations from 202 1 to 2024, which can be attributed to the spread of the Coronavirus Disease 2019.
Annual Total Homeless Point-In-Time Count
Year Total
2017 316
2018 262
2019 200
2020 168
2021 N/A2
2022 311
2023 101
2024 198
Source: 2017 through 2024 Los Angeles County PIT
2 The U.S. Department of Housing and Urban Development (HUD) exempted the Los Angeles Continuum of Care from conducting a 2021 PIT Count due to the spread of Coronavirus Disease 2019 (COVID -19). For context, the Los Angeles County Department of Health implemented curfews and Governor Gavin Newsom issued stay-at-home orders which hindered LAHSA’s efforts to safely conduct the 2021 PIT Count.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 23 of 76 Homeless Point-In-Time Count
Sheltered Unsheltered Total
Persons 12 89 101
Households 0 0 0
Source: 2023 Los Angeles County PIT
Table 13: Homeless Point-In-Time Count
Homeless Point-In-Time Count
Number Percent
Persons in Cars 7 9.09%
Persons in Vans 3 3.90%
Persons in RVs or Campers 0 0.00%
Persons in Tents 5 6.49%
Persons in Makeshift Shelters 22 28.57%
Persons on the Street 40 51.95%
Total 77 100%
Source: 2023 Los Angeles County PIT
Table 14: Homeless Point-In-Time Count
Demographics Summary
Number Percent
Gender
Male 4450 68%
Female 2053 32%
Transgender 15 0%
Gender Non-conforming 6 0%
Questioning 2 0%
Race/Ethnicity
Hispanic/Latino 4633 71%
Black/African American 696 11%
White 981 15%
American Indian/Alaskan Native 88 1%
Asian 41 1%
Native Hawaiian/Other Pacific Islander 11 0%
Multi-Racial/Other 61 1%
Age
Under 18 556 9%
18-24 837 13%
25-54 3870 59%
55-61 810 12%
62+ 438 7%
Source: 2023 Los Angeles County Service Planning Area 7 PIT Count Table 15: Demographics Summary
3. Housing Profile
Demographic trends provide context for identifying impediments to fair housing choice. To understand these impediments fully, we must consider home ownership, rental patterns, and settlement distribution.
Housing market conditions, including price -to-income ratios and supply availability, also play a crucial role. By analyzing housing costs, affordability, physical characteristics, and location, we can identify and address impediments to fair housing choice, especially for protected classes. This chapter ex plores
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 24 of 76 baseline housing market conditions and contextualizes impediments affecting household choices in different areas of the City.
A. Housing Unit Growth
As of 2022, the total number of housing units decreased by 3.33% since 2010. Although the total number of housing units increased, the specific number of units decreased by 4.59% (1,307 units) after 2020.
Insufficient housing supply contributes to rising costs, affecting affordability for low -income households in the City.
Housing Unit Growth
2010 2020 2022 % Change
(2010-2020)
% Change
(2020-2022)
% Change
(2010-2022)
28,083 28,455 27,148 1.32% -4.59% -3.33%
Source: 2010 DEC U.S. Census; 2020 DEC U.S. Census; 2018-2022 ACS 5-Year Estimates Table 16: Housing Unit Growth
B. Housing Unit Type
As of 2022, the City’s housing stock primarily consists of single-family (SF) homes (76%), a decrease of 75 single-family homes from 2020. Between 2020 and 2022, 2-to-4-unit dwellings increased by 18% (117 units), while larger five -plus units decreased by 9% (417 units). Overall, the number of housing units decreased by 2% , which may impact housing availability and demand. The population decreased by
0.86%. The persons per household declined by 2%; smaller households might indicate changing demographics or housing preferences. Lastly, the vacancy rate decreased by 34%. A lower vacancy rate suggests increased occupancy and potentially a competitive rental market.
Housing Characteristics
2020 2022
1-unit, SF detached 20,572 20,497
1-unit, SF attached 1,176 1,051
2 to 4 units 643 760
Five Plus units 4,853 4,436
Mobile home 422 352
Boat, RV, van, etc. 35 52
Total housing units 27,701 27,148
Occupied units 26,748 26,508
Vacancy Rate 3.44% 2.27%
Persons per Household 3.77 3.69
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 17: Housing Characteristics
C. Housing Unit Conditions
The age of a housing unit can indicate its condition. A majority of the City’s occupied homes, 85.2%, were built between the years 1940 and 1979. It is important to note that many homes built before 1978 have lead-based paint, which would mean almost all of the homes in Norwalk were potentially impacted3.
Only half a percent of homes were built in 2014 or later. The County’s percentage of homes built in 2013 is more than 3 times that of Norwalk’s, and the State is almost 5 times as much, percentagewise. This shows that Norwalk is building newer homes at a slower rate.
3 Real Estate Disclosures about Potential Lead Hazards | US EPA
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 25 of 76 Year Unit Built – City of Norwalk
Owner-Occupied Renter-Occupied Occupied
Year Unit Built Number % Number % Number %
2014 or later 117 0.7% 27 0.30% 144 0.5%
2010 to 2013 202 1.1% 66 0.73% 268 1.0%
2000 to 2009 208 1.2% 251 2.77% 459 1.7%
1980 to 1999 800 4.5% 1,647 18.16% 2447 9.1%
1960 to 1979 2,694 15.2% 3,121 34.42% 5,815 21.7%
1940 to 1959 13,271 75.1% 3,714 40.96% 16,985 63.5%
1939 or earlier 388 2.2% 242 2.67% 630 2.4%
Total 17,680 9,068 26,748
Source: 2016-2020 ACS 5-Year Estimates
Table 18: Year Unit Built – City
Year Unit Built- County v. California
County California
Year Unit Built Number % Number %
2014 or later 59,345 1.67% 339,245 2.39%
2010 to 2013 45,617 1.28% 254,491 1.79%
2000 to 2009 187,719 5.27% 1,551,054 10.91%
1980 to 1999 648,748 18.22% 3,701,494 26.05%
1960 to 1979 1,016,041 28.54% 4,368,510 30.74%
1940 to 1959 1,080,793 30.36% 2,712,219 19.09%
1939 or earlier 521,527 14.65% 1,283,932 9.03%
Total 3,559,790 100.00% 14,210,945 100.00%
Source: 2016-2020 ACS 5-Year Estimates
Table 19: Year Unit Built- County v. California
D. Housing Tenure – Owners, Renters, and Vacant Units
Housing tenure encompasses the right to live in a house or apartment. It includes owner -occupancy, where the occupant owns their home, and tenancy, where rent is paid to a landlord. Other forms, like public housing and squatting, also exist. Tenure prefere nces often correlate with household income, composition, and the age of the head of the household.
Household Tenure – Owner v. Renter
Tenure 2022 % of total households
Households 26,508 100%
Owner-Occupied 17,929 67%
Renter-Occupied 8,579 32%
Source: 2018-2022 ACS 5-Year Estimates
Table 20: Household Tenure – Owner v. Renter
In 2022 there were 27,148 housing units and 26,508 households in Norwalk. Of the total housing units ,
66.04% are owner-occupied, and 31.60% are rentals. Only 2.36% of units are vacant, down from 3.44% in 2020. Low vacancies mean more limited housing options, plus more demand for housing, which can put households in vulnerable positions.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 26 of 76 Housing Unit Tenure Comparison
Year: 2020 2022
Tenure Type # of Units % of total # of
Units # of Units % of total # of
Units
Owner Occupied 17,680 63.82% 17,929 66.04%
Rental 9,068 32.74% 8,579 31.60%
Vacant 953 3.44% 640 2.36%
Total 27,701 27,148
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 21: Housing Unit Tenure Comparison
Housing Units with 4 or more bedrooms are occupied by owners approximately 5 times as much as renters. Alternatively, units with 1 or no bedroom are occupied by renters more than 5 times as much as owners. The majority of occupied units in Norwalk ( 76.84%) have 2 or 3 bedrooms. This size of unit is also the most occupied for both owners and renters in the City.
Housing Unit Size by Tenure
Tenure Type: Owners Renters
Unit Size Number % Total of
Owner Units Number % of total # of
Renter Units
No bedroom 326 1.82% 674 7.86%
1 bedroom 199 1.11% 1,861 21.69%
2 or 3 bedrooms 13,777 76.84% 5,277 61.51%
4 or more bedrooms 3,627 20.23% 767 8.94%
Total 17,929 8,579
Source: 2018-2022 ACS 5-Year Estimates
Table 22: Housing Unit Size by Tenure
E. Housing Costs and Affordability
The cost of housing can directly impact daily living because it often determines how much money is left for other household expenses, such as food and healthcare. Norwalk has seen an 11% increase in median gross rent from 2020 to 2022. The median household income increased by 18% in the same timeframe; however, the housing value grew by 29%. The value of homes increases exceeding the increase in income , which has made the gap wider for potential homebuyers whose income did not increase by the same percentag e or more. Overall, in 2022, while the City’s median gross rent for 3 - bedroom apartments and larger units exceeded the affordability threshold, studios and 1- and 2-bedroom apartments remained affordable for households earning the stated median income.
Changes in Value, Rent, and Income
2020 2022 % Change
Median Housing Value $ 461,000 $ 593,100 29% Median Gross Rent $ 1,678 $ 1,860 11% Median Household Income $ 77,425 $ 91,259 18% Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 23: Changes in Value, Rent, and Income for Norwalk
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 27 of 76 Median Gross Rent Prices by Bedrooms (2020 and 2022)
Studio 1-Bedroom 2-Bedroom
2020 2022
%
change
2020-
2022
2020 2022
%
change
2020-
2022
2020 2022
%
change
2020-
2022
City $1,289 $1,349 4.65% $1,197 $1,458 21.80% $1,624 $1,809 11.39% County $1,150 $1,374 19.48% $1,307 $1,565 19.74% $1,681 $1,948 15.88% State $1,198 $1,436 19.87% $1,342 $1,611 20.04% $1,623 $1,903 17.25%
3-Bedroom 4-Bedrooms
2020 2022
%
change
2020-
2022
2020 2022
%
change
2020-
2022
City $2,052 $2,356 14.81% $2,313 $2,563 10.81%
County $1,966 $2,286 16.28% $2,222 $2,573 15.80%
State $1,834 $2,144 16.90% $2,193 $2,531 15.41%
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 24: Median Gross Rent Prices by Bedrooms (2020 and 2022)
The tables below show fair market rent s (FMRs) and housing affordability, according to HUD. For comparison purposes to that of FY 2023 income limits, effective May 15, 2023, through May 31, 2024, The FY 2023 FMs are also displayed in the table below. FY 2023 FMRs “were developed and updated starting with the formation of the FMR Areas from the metropolitan Core-Based Statistical Areas (CBSAs) as established by the Office of Management and Budget, the newly available 2016 -2020 American Community Survey (ACS) 5-year data and updating to FY 2023 including information from local survey data”4.
For a family of four who make less than 30% of the median household income, an affordable rent is $946 per month. FY 2024 Fair market rent for a 3-bedroom home is $3,263. The gap in affordability is $2,317.
An affordable home is $282,921 for an individual who makes between 80% and 120% of the median household income. The Changes in Value, Rent, and Income table shows that the median housing value in 2022 was $593,100. The gap in affordability is $310,179, or more than twice as much as what is considered affordable. This indicates that the average salary in Norwalk is less than half what is needed to afford the average home in recent years.
To afford the median rent in Norwalk of $1,860 without paying more than 30% of income on housing, a household must earn $6,200 monthly or $74,400 annually. Assuming a 40 -hour work week, 52 weeks per year, this income level translates into an hourly wage of $35.77. For individuals making minimum wage, unemployment, or other government programs, the average housing cost is not affordable.
HUD Fair Market Rents (FMRs)
2020 2023 2024 % Change between
2023 & 2024
Efficiency $1,279 $1,534 $1,777 16%
1 bedroom $1,517 $1,747 $2,006 15%
2 bedroom $1,956 $2,222 $2,544 14%
3 bedroom $2,614 $2,888 $3,263 13%
4 bedroom $2,857 $3,170 $3,600 14%
Source FY 2020, 2023, 2024 HUD Fair Market Rent; Los Angeles-Long Beach-Glendale, CA Table 24: HUD Fair Market Rents (FMRs)
4 Fair Market Rents (40th PERCENTILE RENTS) | HUD USER
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 28 of 76 Affordability Rent & Mortgage Combined
Affordable Mortgage/Rent Amounts
1 Person 2 Persons 3 Persons 4 Persons
Extremely Low (0%-30%)
Annual Income $26,500.00 $30,300.00 $34,100.00 $37,850.00 Monthly Income $2,208.33 $2,525.00 $2,841.67 $3,154.17
Affordable Purchase Price $84,566.00 $98,026.00 $111,486.00 $124,768.00 Affordable Monthly Rent $662.50 $757.50 $852.50 $946.25 Very Low (30%-50%)
Annual Income $44,150.00 $50,450.00 $56,750.00 $63,050.00 Monthly Income $3,679.17 $4,204.17 $4,729.17 $5,254.17
Affordable Purchase Price $147,083.00 $169,398.00 $191,713.00 $214,028.00 Affordable Monthly Rent $1,103.75 $1,261.25 $1,418.75 $1,576.25 Low (50%-80%)
Annual Income $70,650.00 $80,750.00 $90,850.00 $100,900.00 Monthly Income $5,887.50 $6,729.17 $7,570.83 $8,408.33
Affordable Purchase Price $240,947.00 $276,722.00 $312,497.00 $348,094.00 Affordable Monthly Rent $1,766.25 $2,018.75 $2,271.25 $2,522.50 Moderate (80%-120%)
Annual Income $82,500.00 $94,300.00 $106,050.00 $117,850.00 Monthly Income $6,875.00 $7,858.33 $8,837.50 $9,820.83
Affordable Purchase Price $282,921.00 $324,717.00 $366,336.00 $408,132.00 Affordable Monthly Rent $2,062.50 $2,357.50 $2,651.25 $2,946.25 Source: FY 2023 HUD Income Limit Area; Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area Table 25: Affordability Rent & Mortgage Combined
As of 2021, there are 8,524 affordable rental housing units in Norwalk, a 316 -unit decrease from 2020.
Of the affordable housing units, less than 10% are $999 or less. More than half of the affordable housing units rent between $1,000 and $1,999, and almos t one-third of affordable housing units rent for $2,000 or more monthly. The number of units that rented for $2,000 or more increased by 412 from 2020 to 2021.
Affordable Rental Housing Units in Norwalk
2020 2021* % Change between
2020 & 2021
# of Units difference
between 2020 & 2021 Units # % # %
Less than $500 319 3.61% 291 3.41% -9% -28
$500-$999 615 6.96% 548 6.43% -11% -67
$1,000 to $1,999 5521 62.45% 4888 57.34% -11% -633
$2,000 or more 2,385 26.98% 2,797 32.81% 17% 412
Total 8,840 100.00% 8,524 100.00% -4% -316
Source: 2016-2020 ACS 5-Year Estimates; 2017-2021 ACS 5-Year Estimates* (ACS's most current Gross Rent Year is 2021)
Table 26: Affordable Rental Housing Units in Norwalk
While rising housing costs aren’t discriminatory themselves, the shortage of affordable housing limits where residents can live. In the month of June 2024, homes were on the market for less than a month’s time, consistent with the median time on the market for the state and regional county homes. The current median price in Norwalk (See table 29) is about six times ( 6x) that of a 4 -person household's annual income in the moderate (80%-120%) income bracket. Table 28 shows in detail the median home sales prices for the region, as well as for the state.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 29 of 76
Days on the Market
June 2024 Unsold Inventory Index Median Time on Market
State/Region/County 23-Jun 24-Jun 23-Jun 24-Jun
CA Condo/Townhomes 2.1 3.2 15 20
Los Angeles Metropolitan Area 2.1 3.1 19 22
Central Coast 1.7 3 11 16
Central Valley 2.2 3.3 14 24
Far North 6.7 5.1 21 32
Inland Empire 2.5 3.9 27 36
S.F. Bay Area 2.1 3 15 19
Southern California 1.9 3.1 15 20
Southern California 23-Jun 24-Jun 23-Jun 24-Jun
Imperial 0 2.3 3 11
Los Angeles 2 3.4 17 22
Orange 1.8 2.4 17 18
Riverside 2.6 4 30.5 42
San Bernardino 2.1 3.5 15 22
San Diego 1.7 3.1 9 14
Ventura 2.4 3 24 27
Source: County Sales & Price Statistics (Public).xlsx, SFH UII & MTM https://www.car.org/en/marketdata/data/countysalesactivity Last Updated June 2024
Table 27: Days On the Market5
5 Note: The MLS median price and sales data in the table below are generated from a survey of more than 90 associations of REALTORS® throughout the state, and represent statistics of existing single-family detached homes only. sales data are not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. Due to the low sales volume in some areas, median price changes may exhibit unusual fluctuation. (Los Angeles Metropolitan Area is a 5- region that includes Los Angeles, Orange, Riverside, San Bernardino, and Ventura) (S.F. Bay Area has been redefined to include the following counties:
Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano, and Sonoma) (Inland Empire includes Riverside and San Bernardino)
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 30 of 76
Median Home Sales Prices
June 2024 Median Sold Price of Existing Single-Family Homes State/Region/County 23-Jun 24-Jun Price YTY%
Chg
CA SFH (SAAR) $837,850 $900,720 7.50%
CA Condo/Townhomes $650,000 $697,000 7.20%
Los Angeles Metropolitan
Area $775,000 $835,000 7.70%
Central Coast $984,500 $1,072,000 8.90%
Central Valley $480,000 $503,000 4.80%
Far North $380,000 $409,000 7.60%
Inland Empire $570,000 $600,000 5.30%
S.F. Bay Area $1,323,810 $1,400,000 5.80%
Southern California $815,000 $875,000 7.40%
Southern California 23-Jun 24-Jun Price YTY%
Chg
Imperial $378,160 $385,000 1.80%
Los Angeles $832,310 $889,180 6.80%
Orange $1,260,000 $1,450,000 15.10%
Riverside $628,000 $643,500 2.50%
San Bernardino $470,000 $522,500 11.20%
San Diego $958,250 $1,054,180 10.00%
Ventura $927,500 $964,500 4.00%
Source: County Sales & Price Statistics (Public).xlsx, SFH Sales & Price https://www.car.org/en/marketdata/data/countysalesactivity Last Updated June 2024
Table 28: Median Home Sales Prices
Monthly Market Report June 2024 - City of Norwalk, CA
% Chg from Last Year
Median Price $758,000 5.2%
Home Sales 20 17.6%
Active Listings 18 28.6%
Market Competition
Median Days on the Market 20 Days
Sales to List Price % 102.2%
% of Active Listings with Reduced Prices 11%
Source: Housing Market Overview
https://www.car.org/marketdata/interactive/housingmarketoverview Last Updated June 2024
Table 29: Monthly Market Report June 2024 - City of Norwalk, CA
F. Housing Cost Burden
Per HUD, the cost burden is monthly housing expenses, including utilities, exceeding 30% of monthly income. For homeowners, expenses may include association fees, insurance, and property taxes on top of mortgage and utilities. When monthly housing expenses exceed 50% of monthly income, the cost burden is considered severe.
In Norwalk, 9,894, or 37% of households, are cost burdened. Of all the cost-burdened households in Norwalk, 53% are owners, and 47% are renters. There are more owner-occupied households in Norwalk than renters, but not of the same proportions as the cost-burdened owner-to-renter households. Most owner-burdened households spend up to 50% of their income on housing, whereas cost-burdened
HOUSEHOLD COST
BURDEN = 37%
Figure 2. Cost Burden Percent
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 31 of 76 renters in Norwalk are mostly severely cost -burdened, with households spending up over 50% of their income on housing.
Housing Cost Burden Overview
Cost Burden Factor Owner Renter Total
# % # %
Cost Burden > 30% 5,204 53% 4,690 47% 9,894
Cost Burden >30% to <=50% 3,280 59% 2,265 41% 5,545
Cost Burden > 50% 1,924 44% 2,425 56% 4,349
Source: CHAS 2016-2020 Table 8
NOTE: Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing costs are "select monthly owner costs", which include mortgage payments, utilities, association fees, insurance, and real estate taxes.
Table 30: Housing Cost Burden Overview
Income by Cost Burden (Owners and Renters Combined) Households Cost Burden
>30% to <=50%
Cost Burden
> 50%
# % # % Total
Extremely Low Income (0% - 30%) 780 24% 2,490 76% 3,270 Very Low Income (30%-50%) 1,505 51% 1,420 49% 2,925
Low Income (50%-80%) 2,265 84% 425 16% 2,690
Source: CHAS 2016-2020 Table 8
Table 31: Income by Cost Burden (Owners and Renters Combined) Households
When the data is separated by owners only, the percentages change. The Low-Income households only have a 2% difference in cost -burdened versus severely cost -burdened households. The Very Low Income, cost-burdened owner households are mostly (58%) severely cost-burdened. In Extremely Low- Income, cost -burdened owner households, the percentage of severely cost -burdened households decreases by 11%. This shows that renters with Extremely Low Income are more severely cost-burdened than owners of the same income category.
Income by Cost Burden - OWNERS
Cost Burden
>30% to <=50%
Cost Burden
> 50%
# % # % Total
Extremely Low Income (0% - 30%) 415 35% 780 65% 1,195
Very Low Income (30%-50%) 570 42% 800 58% 1,370
Low Income (50%-80%) 1,520 82% 330 18% 1,850
Total 2,505 1,910 4,415
Source: CHAS 2016-2020 Table 8
Table 32: Income by Cost Burden – OWNERS
The data shows a significant difference in cost burden between owners and renters across various income levels. A “severe cost burden” is defined as spending more than 50% of one’s household income on housing costs like rent, mortgage, and utilities. This makes affording other essentials like food, transportation, and healthcare difficult for those facing “severe cost burden”.
For extremely low-income households (0% - 30%), 65% of owners face a severe cost burden (>50%), compared to 82% of renters. Among very low -income households (30% - 50%), 58% of owners experience a severe cost burden, while only 40% of renters do. In the low-income category (50% - 80%), 18% of owners face a severe cost burden, whereas only 11% of renters do. This may correlate to high
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 32 of 76 mortgages payments and other costs associated with maintaining a home. Overall, renters tend to experience a higher severe cost burden compared to owners, especially in the extremely low -income bracket. The total number of households analyzed is 4,415 for owners and 4,470 for renters.
Income by Cost Burden - RENTERS
Cost Burden
>30% to <=50%
Cost Burden
> 50%
# % # % Total
Extremely Low Income (0% - 30%) 365 18% 1,710 82% 2,075 Very Low Income (30%-50%) 935 60% 620 40% 1,555
Low Income (50%-80%) 745 89% 95 11% 840
Total 2,045 2,425 4,470
Source: CHAS 2016-2020 Table 8
Table 33: Income by Cost Burden – RENTERS
4. Race and Segregation
Residential segregation is a measure of the degree of separation of racial or ethnic groups within a community. An extreme case of segregation would involve a complete division between predominantly high-income, White suburban neighborhoods and low-income, minority inner-city areas.”
A. Dissimilarity Index
The dissimilarity index measures whether one group is distributed across census tracts in the metropolitan area in the same way as another group. A high value indicates that the two groups tend to live in different tracts. The Index ranges from 0 to 100. A value of 60 (or above) is considered very high.
It means that 60% (or more) of the members of one group would need to move to a different tract in order for the two groups to be equally distributed. Values of 40 or 50 are usually considered a moderate level of segregation, and values of 30 or below are low.
There were signs of dissimilarities between white and black residents in the 1980s. The trend shows that after each passing decade, the dissimilarity indices are low. The most current data found for dissimilarity is from 2020. The rise in dissimilarity indices is more likely due to natural settlement patterns rather than intentional segregation.
In the City, a large majority of census tracks and block group include Hispanic residents. Once the 2030 Census is completed, the dissimilarity indices should be reviewed again to see if the 20 20 Census estimates have any accuracy.
Index of Dissimilarity
1980 1990 2000 2010 2020
White - Black 47.8 30.1 18.4 17.7 15.1
White - Hispanic 22.0 23.4 18.4 18.5 14.3
White - Asian 22.4 18.4 19.7 21.8 17.1
Black - Hispanic 42.7 30.2 22.0 21.7 20.2
Black - Asian 37.5 24.5 18.2 20.8 20.0
Hispanic - Asian 12.3 15.8 24.1 25.9 22.6
Source: 2020 Diversity and Disparities Index, Brown University https://s4.ad.brown.edu/projects/diversity/segregation2020/city.aspx?cityid=652526 Table 34: Index of Dissimilarity
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 33 of 76
5. Racially or Ethnically Concentrated Areas of Poverty
Federal regulations require grantees of HUD Community Planning and Development programs to identify and describe any areas within their jurisdiction that are concentrations of racial or ethnic minorities and low-income families. These areas are known as racially/ethnically concentrated areas of poverty (RCAPs and ECAPs).
Data was collected for census block groups to analyze the RCAPs/ECAPs in the City at a meaningful geographic scale. The city could not identify low to moderate concentrations meeting the threshold of 51 percent of residents who are low-income at the tract level. Block group data was collected from the 2016- 2020 American Community Survey 5-Year Estimates, which HUD currently uses for its most up -to-date low- to moderate-income designations. Of all 74 Norwalk’s Census Tract Block Groups, 46 of the block groups are LMI.
For the purpose of this analysis, racial minorities are all ACS respondents who identified as a race other than white, and ethnic minorities are all those who claimed Hispanic origins. As shown in Table 36, there are (38) block groups in the City that qualify as RCAPs and (42) block groups that are ECAPs. Of the LMI block groups, the block group with the highest concentration of racial minorities is block group (5503.01 Block 2) at (92.66%) and (5503.01 Block 4) at (96.85%) ethnic minorities.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 34 of 76 RCAP Block Groups (38)
Tract Block
Group
%
Racial
Minority
LMI%
Tract Block
Group
%
Racial
Minority
LMI%
5501.01 1 66.68% 54.90% 5522 4 71.83% 52.40%
5501.01 2 56.37% 64.30% 5523.01 2 77.18% 50.20%
5501.01 3 56.65% 55.70% 5523.01 3 53.14% 82.70%
5502.01 2 54.45% 62.10% 5523.02 2 66.31% 91.90%
5502.02 1 56.79% 54.20% 5523.02 3 28.10% 60.70%
5502.02 2 58.59% 72.90% 5524 1 61.81% 77.20%
5502.02 3 62.35% 56.20% 5527 1 62.80% 74.10%
5502.02 4 60.91% 91.00% 5527 4 77.79% 98.00%
5503.01 1 31.89% 64.80% 5527 5 66.22% 75.50%
5503.01 2 92.66% 76.50% 5528 2 72.21% 63.40%
5503.01 3 91.89% 74.90% 5528 3 55.67% 80.50%
5503.01 4 34.25% 68.70% 5528 4 63.49% 58.00%
5519 1 59.39% 51.90% 5529 1 65.48% 55.20%
5519 4 61.06% 63.00% 5529 3 62.44% 68.50%
5520.01 2 67.38% 57.20% 5529 4 79.31% 56.00%
5520.01 3 45.79% 52.10% 5529 5 48.52% 70.10%
5520.02 1 64.95% 51.50% 5530 2 54.30% 52.00%
5521 1 66.85% 70.70% 5547 1 71.70% 54.20%
5521 2 88.34% 51.70% 5547 2 78.28% 70.10%
5521 3 67.24% 92.60% 5553 2 46.67% 81.80%
5521 4 58.92% 51.50% 5553 4 59.47% 60.20%
5522 2 60.90% 90.20% 5778 2 32.79% 67.50%
5522 3 82.16% 60.20% 5778 3 46.29% 56.80%
Source: ACS-2020-Low-Mod-Summarized-All-Block-Groups-2023_Block Groups for All Entitlement CDBG Grantees-NORWALK;
2016-2020 ACS 5-Year Estimates; Tables B02001 RACE & ACS-2020-Low-Mod- Summarized-All-Block-Groups-2023
Table 35: RCAP Block Groups (38)
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 35 of 76 ECAP Block Groups (42)
Tract Block
Group
%
Ethnic
Minority
LMI%
Tract Block
Group
%
Ethnic
Minority
LMI%
5501.01 1 61.23% 54.90% 5522 4 73.09% 52.40%
5501.01 2 88.06% 64.30% 5523.01 2 51.81% 50.20%
5501.01 3 81.16% 55.70% 5523.01 3 84.90% 82.70%
5502.01 2 75.00% 62.10% 5523.02 2 47.78% 91.90%
5502.02 1 72.09% 54.20% 5523.02 3 33.42% 60.70%
5502.02 2 75.17% 72.90% 5524 1 83.17% 77.20%
5502.02 3 61.38% 56.20% 5527 1 51.73% 74.10%
5502.02 4 79.61% 91.00% 5527 4 61.01% 98.00%
5503.01 1 56.56% 64.80% 5527 5 74.45% 75.50%
5503.01 2 30.16% 76.50% 5528 2 61.56% 63.40%
5503.01 3 90.47% 74.90% 5528 3 73.98% 80.50%
5503.01 4 96.85% 68.70% 5528 4 71.52% 58.00%
5519 1 75.74% 51.90% 5529 1 79.26% 55.20%
5519 4 52.91% 63.00% 5529 3 64.77% 68.50%
5520.01 2 69.40% 57.20% 5529 4 65.48% 56.00%
5520.01 3 71.90% 52.10% 5529 5 47.80% 70.10%
5520.02 1 56.27% 51.50% 5530 2 79.62% 52.00%
5521 1 72.65% 70.70% 5547 1 73.01% 54.20%
5521 2 68.88% 51.70% 5547 2 71.69% 70.10%
5521 3 75.36% 92.60% 5553 2 69.54% 81.80%
5521 4 73.32% 51.50% 5553 4 63.91% 60.20%
5522 2 84.26% 90.20% 5778 2 66.73% 67.50%
5522 3 59.72% 60.20% 5778 3 68.03% 56.80%
Source: ACS-2020-Low-Mod-Summarized-All-Block-Groups-2023_Block Groups for All Entitlement CDBG Grantees-NORWALK;
2016-2020 ACS 5-Year Estimates; Tables B03003 Ethnicity; ACS-2020-Low-Mod-Summarized-All-Block-Groups-2023
Table 36: ECAP Block Groups (42)
6. Income, Workforce, and Employment Profile
An “Income, Workforce, and Employment Profile” is a valuable tool for analyzing housing needs within a community. It examines demographic data, income levels, and employment trends, providing insights into disparities and opportunities. Policymakers can use this information to devel op targeted strategies for addressing housing challenges and ensuring fair housing choices for residents across different income groups.
A. Median Household Income
The median household income for Norwalk in 2022 was $91,259. Between 2020 and 2022, the median household income increased by 17.87%. However, the median household income is more than 7% lower
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 36 of 76 than the Los Angeles-Long Beach-Glendale Metropolitan area median household income as calculated by HUD for 2024.
Median Household Income
2020 2022 % Change
$77,425 $91,259 17.87%
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 37: Median Household Income
2024 HUD Median Income Limits
Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area
Median
Family
Income
Income
Limit
Persons in Family
1 person
2 person
3 person 4 person 5 person 6 person 7 Person 8
Person
$98,200
Extremely
Low
(0-30%)
$29,150 $33,300 $37,450 $41,600 $44,950 $48,300 $51,600 $54,950 Very Low
(30%-50%) $48,550 $55,450 $62,400 $69,350 $74,900 $80,450 $86,000 $91,550 Low
(50%-80%) $77,700 $88,800 $99,900 $110,950 $119,850 $128,750 $137,600 $146,50 0 Source: 2024 HUD Median Income Limit
Table 38: 2024 HUD Median Income Limits
B. Income by Household Characteristic
In Norwalk, 13,115 households are considered either Low-Income, Very-Low-Income or Extremely Low- Income. This is about half of all households in Norwalk. Of these households, 66% are owners, and the other 34% are renters.
Household Income
Owner Rental Total
Income Limit Bracket # % of Total
Across # % of Total
Across Total Across
Extremely Low Income (0%-30%) 1885 44% 2,415 56% 4,300
Very Low Income (30%-50%) 2280 53% 2,000 47% 4,280
Low Income (50%-80%) 4,470 99% 65 1% 4,535
Total 8,635 66% 4,480 34% 13,115
Source CHAS 2016-2020
Table 39: Household Income
These proportions are about the same as the proportion of owners versus renters in Norwalk (68% versus 32% of total households). However, when the total number of owners and renters whose income limit is extremely, very, and low, each category is about slightly less than 50% of its respective total population.
Household Tenure & Income Limit Bracket Comparison
Tenure 2020 % of total
households
2020 Total #
Income Limit:
Extremely, Very, Low
% Income
Comparison
to Tenure
Households 26,748 100% 13,115 49.03%
Owner-Occupied 17,680 66.1% 8,635 48.84%
Renter-Occupied 9,068 33.9% 4,480 49.41%
Source: 2016-2020 ACS 5-Year Estimates & CHAS 2016-2020 Table 40: Household Tenure & Income Limit Bracket Comparison
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 37 of 76 C. Income by Race/Ethnicity
When looking at median household income per racial and ethnic groups, all but two groups have a higher median income than the overall Norwalk median household income. The groups with a lower median household income than the City are “Some other race” and “2 or more races.” No median household income was provided at the source for the Native Hawaiian group. The group with the high est median household income in 2022 for Norwalk were Native Americans.
Median Household Income Per Race/Ethnicity
Race/Ethnicity 2020 2022 % Change
White $82,246 $96,390 17%
Black or African American $85,275 $97,538 14%
Native American - $106,000 N/A
Asian $78,596 $95,268 21%
Native Hawaiian $69,121 - N/A
Some other race $69,932 $87,415 25%
2 or More Races $83,801 $85,714 2%
Hispanic $77,127 $91,472 19%
Source: 2016-2020 ACS 5-Year Estimates; 2018-2022 ACS 5-Year Estimates Table 41: Median Household Income Per Race/Ethnicity
D. Employment
The top employer of Norwalk residents is the County of Los Angeles, which exceeds the second -top employer by 42.41%. Six out of the top eleven major employers in Norwalk are in the educational services, health care, and social assistance industries.
Top Employers
Major Employers # of
Employees Industry
County of Los Angeles 2280 Public administration
Norwalk-La Mirada Unified School District 1237 Educational services, and health care and social assistance
Cerritos College 1364 Educational services, and health care and social assistance
Metropolitan State Hospital 1601 Educational services, and health care and social assistance
Los Angeles County Registrar-Recorder 1216 Public administration Coast Plaza Doctors Hospital 500 Educational services, and health care and social assistance
Freeway Insurance Services 516 Other services, except public administration
City of Norwalk 423 Public administration
Little Lake City School District 361 Educational services, and health care and social assistance
Costco Wholesale 336 Retail trade
Coast Plaza Hospital 313 Educational services, and health care and social assistance
Source: City of Norwalk 2021-2022 Annual Comprehensive Financial Report Table 42: Top Employers
The civilian employed population 16 years and over in Norwalk is 48,315. The largest industry in Norwalk, employing 22.45% of the workforce, is educational services, followed by health care and social assistance. The industry with the highest median earnings, which only employs 1.69% of Norwalk’s workforce, is the information industry.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 38 of 76 The City created and adopted in 2018 an Economic Development Opportunities Plan (EDOP) that builds upon the City’s General Plan; in October 2023, the City Council adopted the EDOP update 6. The Plan, at the time developed, notes the following:
• The median age in the City is 34.3 years old, and 22% of the population has earned a Bachelor’s Degree or higher.
• The population declined by 8% from 2017 to 2022 , and the number of households decreased slightly.
• The average household income is 98,800.
• The average home value was recorded at $668,000.
• Due to the COVID-19 pandemic, unemployment increased by nearly 200%, from 4.4% in 2019 to
13.1% in 2020; unemployment has since decreased and reached pre -pandemic levels by November 2022.
• Most people who work in the City are employed in health care and social assistance, educational services, and retail.
• Most employees commute to Los Angeles, Santa Fe Springs, Long Beach, Anaheim, and Cerritos, thus yielding a net outflow of jobs.
• Employees who work in Norwalk are arriving from Los Angeles, Long Beach, Anaheim, Downey, and La Mirada.
• There are opportunities to attract/retain commercial businesses, and to redevelop vacant buildings/parcels along Firestone Blvd.
• Transit-oriented development opportunities will connect to the Norwalk/Sante Fe Springs Metrolink station.
Workforce by Industry
# of Total
Industry % Share Median
earnings
Agriculture, forestry, fishing and hunting, and mining 209 0.43% $23,750 Construction 2,680 5.55% $37,366
Manufacturing 5,605 11.60% $43,640
Wholesale trade 2,118 4.38% $42,188
Retail trade 6,043 12.51% $27,035
Transportation and warehousing, and utilities 4,065 8.41% $35,876 Information 816 1.69% $55,806
Finance and insurance, and real estate and rental
and leasing 2,332 4.83% $41,736
Professional, scientific, and management, and
administrative and waste management services 4,228 8.75% $43,301 Educational services, and health care and social
assistance 10,845 22.45% $35,882
Arts, entertainment, and recreation, and
accommodation and food services 4,966 10.28% $18,318
Other services, except public administration 2,436 5.04% $31,202 Public administration 1,972 4.08% $54,971
Total 48,315
Source: 2016-2020 ACS 5-Year Estimates
Table 43: Workforce by Industry
According to the 2022 ACS, full-time Female employees make up 40.4% of the workforce, and Male employees make up 59.6% of the workforce. The ACS tells us that approximately 9.02% of Norwalk, CA, residents have an income below the poverty level, a number that is lower than the national average of
12.5%. The approximation is based on the population for whom the poverty status is determined in
6 Kosmont - Norwalk EDOP Update - Adopted 10-17-23
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 39 of 76 Norwalk, CA (9.08k out of 101k people). The most common racial or ethnic group living below the poverty line in the City is Hispanic, followed by Other and White. The largest demographic living in poverty are Males 55 - 64, followed by Males 25 - 34 and then Females 25 - 34. In the City, Male employees make a 25% higher average salary than Female employees.
Occupation - Full-Time
Year-Round Civilian Employed Population 16 Years and Over # %
Male 20,921 59.6%
Female 14,170 40.4%
Total 35,091 100%
Source:2018-2022 ACS 5-Year Estimates
Table 44: Occupation - Full-Time
Median Salary Per Gender
City County
Median Men Salary: $45,720 Median Men Salary: $47,597
Median Women Salary: $36,475 Median Women Salary: $39,306 Source: 2018-2022 ACS 5-Year Estimates
https://datausa.io/profile/geo/norwalk-ca/#economy
Table 45: Average Salary Per Gender
The industries with the best median earnings for men in 2022 are Public Administration ($76,446), Information ($64,325), and Professional, Scientific, & Management, & Administrative & Waste Management Services ($59,629). The industries with the best median earnings for women in 2022 a re Information ($61,875), Public Administration ($55,140), and Construction ($48,958).
Figure 3. Median Earnings by Industry Source 2018-2022 5-Year Estimates Source Line: https://datausa.io/profile/geRo/norwalk-ca/#economy
C. Unemployment
The unemployment rate among Norwalk residents 16 years and older is 5.5%. Unemployment rates per race/ethnicity vary from 2.4% to 14.50%. In Norwalk, the racial or ethnic group with the lowest unemployment rate is Black or African American , and the group with the highest unemployment rate is American Indian and Alaska Native.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 40 of 76 Unemployment
Race/Ethnicity Percent
White 5.50
Black or African American 2.40
American Indian and Alaska Native 14.50
Asian 4.20
Native Hawaiian 2.70
Some other race 5.80
2 or more races 9.10
Hispanic 6.20
White alone, not Hispanic or Latino 4.00
Source: 2016-2020 ACS 5-Year Estimates
Table 46: Unemployment
7. Transportation Profile
When analyzing housing challenges, it’s
essential to consider how public transit and
train systems impact housing location,
availability, and accessibility. By studying local
transportation and employment data, we can
identify intersections between transit networks
and housing opportunities, ensuring fair
choices for all residents, especially those in
protected classes.
A. Public Transit
The City is served by Norwalk Transit, a
municipal transit company providing fixed-route
and paratransit bus transit services within the
City and neighboring municipalities , including
portions of Artesia, Bellflower, Cerritos, El
Monte, Industry, La Habra, La Mirada, South El
Monte and Whittier in Southeast Los Angeles
County and Orange County. The Transit
system includes six permanent routes: Route 1-
Rio Hondo/Bellflower; Route 2- C Line (Green
Line) Station/183rd/Gridley Street ; Route 3 -
Gateway Plaza/Norwalk/166th Street; Route 4-
Imperial Highway/Metrolink Station/
C Line Station; Route 5- Rosecrans Avenue/C
Line Station; and Route 7- C Line Station/El
Monte Station.
An adult fare is currently $1.25. Discounts are available for children, students, seniors , and people with disabilities.
B. Train Servies
The transit system also includes two regional transit stations and a connector bus service. Metrolink is a passenger commuter rail service between Orange County and Los Angeles with weekday train service Figure 4. Norwalk Transit - Source: Norwalk.org
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 41 of 76 to the Norwalk/Santa Fe Springs Transportation Center in the western portion of the City. Shuttle bus service is available from City Hall parking garage and the Norwalk Metrolink station. City Hall serves as a convenient hub linking Norwalk Transit service with overflow parking with the regional rail station. Metro Green is a light rail passenger service between Norwalk and Redondo Beach. The Metro Green station is located near the eastern boundary of the City and is served by several fixed-route bus lines. A rail feeder service implemented by Norwalk Transit provides direct interconnectivity between rail stations (Metrolink – commuter rail and Metro Green light rail).
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 42 of 76 CHAPTER 4: Lending Practices
Lending practices significantly impact fair housing choice. Equity in money lending from financial service organizations—such as credit unions, banks, credit card companies, and insurance firms —is crucial.
These services are essential for accessing credit financing, including mortgages, home equity, and home repair loans. Ensuring equal access to information about financial services is also important.
Unfortunately, gaps in financial services can expose residents to predatory lending practices. Limited access to quality banking and financial services may harm an individual’s credit and overall homeownership sustainability. While this chapter reviews len ding practices, it’s important to note that jurisdictional control over lending is restricted by federal laws and regulations.
1. Laws Governing Lending
Laws and regulations play a critical role in shaping lending practices and ensuring equitable access to financial services. These regulations cover various aspects, including real estate lending standards, appraisal requirements, and rules governing banks’ ownership or control of financial subsidiaries.
A. Community Reinvestment Act (CRA)
The Community Reinvestment Act (CRA), enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.
B. Bank Regulators for the CRA
Three federal banking agencies, or regulators, are responsible for the CRA. Banks that have CRA obligations are supervised by one of these three regulators. Each regulator has a dedicated CRA site that provides information about the banks they oversee and those banks' CRA ratings and Performance Evaluations. Regulators are as follows:
• Federal Deposit Insurance Corporation (FDIC)
• Federal Reserve Board (FRB)
• Office of the Comptroller of the Currency (OCC)
C. Federal Reserve’s Role
The Federal Reserve supervises state member banks, which are state-chartered banks accepted into the Federal Reserve System, to ensure compliance with the Community Reinvestment Act (CRA).
To carry out its role, the Federal Reserve must:
• Examine state member banks to evaluate and rate their performance under the CRA; • Consider banks' CRA performance in context with other supervisory information when analyzing applications for mergers, acquisitions, and branch openings; and • Share information about community development techniques with bankers and the public.
Table 47 is the CRA's rating of banks for LA County. An institution’s CRA Rating is determined using a four-tiered system: Outstanding, Satisfactory, Needs to Improve, and Substantial Noncompliance. In LA County - Norwalk, banks rated by the CRA received equally an ‘outstanding’ and a ‘satisfactory’ rating.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 43 of 76 CRA Rating for LA County
Bank Name Overall CRA Rating California CRA Rating
Bank of America Outstanding Outstanding
Bank of the West Satisfactory Satisfactory
Citibank Satisfactory Outstanding
JPMorgan Chase Satisfactory Outstanding
MUFG Union Outstanding Satisfactory
Wells Fargo Outstanding Outstanding
Source: CRA ratings for LA County
https://ttc.lacounty.gov/treasury-partners-banks-cra-rating/ Table 47: CRA Rating for LA County
Table 48 is the CRA ratings of banks for the City of Norwalk . Both Cerritos Valley Bank and Santa Fe National Bank received a “satisfactory’ rating.
CRA Rating for Norwalk
Bank Name Overall CRA Rating
Cerritos Valley Bank Satisfactory
Santa Fe National Bank Satisfactory
Source: FFIEC CRA Ratings for Norwalk
https://www.ffiec.gov/craratings/
Table 48: CRA Rating for Norwalk
2. Home Mortgage Disclosure Act (HMDA)
The Home Mortgage Disclosure Act (HMDA) mandates that financial institutions maintain, report, and publicly disclose loan-level information about mortgages. These data reveal whether lenders are meeting their communities’ housing needs, inform public officials for decision-making and policy formulation, and highlight potentially discriminatory lending patterns. To protect the privacy of the applicant and borrower, the public data undergoes modifications. HMDA, initially enacted by Congress in 1975, is implemented through Regulation C.
3. Government-Backed Loans
Many approved loans are government-backed, and they come in various types of loans. These include loans from the Federal Housing Administration (FHA), VA Home Loans, and the Rural Housing Services/Farm Service Agency (RHA/FSA).
A. Federal Housing Administration
Loans from the Federal Housing Administration (FHA) loans have been helping people become homeowners since 1934. The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so your lender can offer you a better deal. Advantages of FHA include:
• Low down payments
• Low closing costs
• Easy credit qualifying
B. Veterans Administration (VA) Home Loans
VA loans help current and former service members, veterans, and eligible surviving spouses become
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 44 of 76 homeowners. As part of their mission, they provide a home loan guarantee benefit and other housing - related programs to help buy, build, repair, retain, or adapt a home for personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide more favorable terms.
C. Rural Housing Services/Farm Service Agency (RHA/FSA) FSA/RHS-guaranteed USDA’s Rural Housing Service offers a variety of programs to build or improve housing and essential community facilities in rural areas. They provide loans, grants, and loan guarantees for single- and multi-family housing, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools, first responder vehicles and equipment, and housing for farm laborers. The FSA/RHS also provides technical assistance loans and grants in partnership with non -profit organizations, Indian tribes, state and federal government agencies, and local communities.
4. Conventional Loans
A conventional loan is a mortgage not sponsored by the government but available through private lenders. These loans constitute the majority of mortgages issued. Some conventional loans must meet the requirements of Fannie Mae and Freddie Mac, the two largest buyers of mortgage loans in the United States.
Studies based on Home Mortgage Disclosure Act (HMDA) data reveal that commercial banks and thrift institutions lend less to low -income and predominantly minority -concentrated areas. Additionally, a significant portion of home purchase loans in predominantly minority middle-income neighborhoods are government-backed. However, this pattern does not hold for white neighborhoods with similar incomes.
Such practices, known as redlining, may constitute discrimination and create barriers to fair housing.
5. Lending Findings
In analyzing the HMDA data obtained from FFIEC, for county 06037 Los Angeles, including the Census Tracts in the City of Norwalk, several findings revealed implications of potential impediments to fair housing. For Norwalk residents, 88.6% of applications were conventional bank home mortgages. In 2022, 1,393 of the 2,666 conventional loan applications were approved, which is 52% of all conventional loan applications. Fewer than 19% of all loans were FHA and VA loans.
In 2022, of the 3,269 loan applications, 1,672 (51.1%) loans were approved, while 557 (17%) of those loans were denied, and 725 (22.2%) of those loans were withdrawn, closed and/or incomplete. The data shows that most loans in the city are for home refinancing (36.49%) versus 27.16% for actual purchase of a home.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 45 of 76 Selected Census Tract from the 2022 FFIEC HMDA
6037550101 6037552400
6037550201 6037552601
6037550202 6037552602
6037550301 6037552700
6037551900 6037552800
6037552001 6037552900
6037552022 6037553000
6037552100 6037554600
6037552200 6037554700
6037552301 6037555300
6037552302 6037577800
Source: 2022 FFIEC Home Mortgage Disclosure
Act_county_06037.CSV
Table 49: Selected Census Tract from the 2022 FFIEC HMDA
Loan Type - Total Applicants
Loan Type Number of Applicants % of Applicants
Conventional 2,666 81.55%
FHA 506 15.48%
VA 1 0.03%
FSA/RHS 96 2.94%
Total 3,269 100.00%
Source: 2022 FFIEC Home Mortgage Disclosure Act_loan type Table 50: Loan Type - Total Applicants
The distribution of loan types was among 3,269 total applicants. The majority, 81.55%, applied for conventional loans, totaling 2,666 applicants. FHA loans were the next most common, with 506 applicants making up 15.48% of the total. FSA/RHS loans accounted for 2.94% with 96 applicants. VA loans were the least common, with only 1 applicant, representing 0.03% of the total. This data highlights the predominance of conventional loans among applicants.
Action by Lender
#
KEY Action Number of Applicants % of
Applicants
1 Loan originated7 1,582 48.39%
2 Application approved but not accepted 89 2.72%
3 Application denied 557 17.04%
4 Application withdrawn by applicant 482 14.74%
5 File closed for incompleteness 243 7.43%
6 Purchased loan8 315 9.64%
7 Preapproval request denied 0 0.00%
8 Preapproval request approved but not accepted 1 0.03% Total 3,269 100.00%
Source: 2022 FFIEC Home Mortgage Disclosure Act action taken Table 51: Action by Lender
7 Loan origination is a pivotal process in the mortgage lending industry where borrowers apply for financing, typically for significant purchases like homes. This step involves submitting various financial documents to a mortgage lender, such as tax returns, payment history, credit card details, and bank statements. These documents help lenders assess the borrower’s eligibility for a specific type of loan and determine the applicable interest rate. Source: AD Mortgage. Loan originated indicates the loan process was completed. 8 There is no specific definition regarding a "purchased loan" or "purchasing entity" under Regulation C; however, generally, this refers to a loan bought/acquired by an entity that did not make the credit decision for granting the original loan request. For information regarding the differences between originating a loan and purchasing a loan, refer to the commentary provided in the regulation Source: ICE Mortgage Technology. Home Mortgage Disclosure Act (HMDA)/Reg C | ICE Mortgage Technology
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 46 of 76 Loan Application, Denials, Percentage
Total Number of
Applications
Total Number of
Denials
Overall
Denial Rate %
3,269 557 17.03%
Source: 2022 FFIEC Home Mortgage Disclosure Act
Table 52: Loan Application, Denials, Percentage
Purpose of Loan Applied For
Purpose Number of Applicants % of Applicants
Purchase 888 27.16%
Home Improvement 368 11.26%
Refinance 529 16.18%
Other 286 8.75%
NA 5 0.15%
Cash-out Refinancing 1193 36.49%
Total 3,269 100.00%
Source: 2022 FFIEC Home Mortgage Disclosure Act: loan_purpose Table 53: Purpose of Loan Applied For
A. Refinancing
Refinancing involves replacing an existing mortgage with a new loan. People typically refinance to lower their monthly payments, reduce their interest rate, or switch from an adjustable-rate mortgage to a fixed- rate mortgage. In 2022, 529 loans were applied for refinancing, and 1,193 loans were for cash -out refinancing, a total of 1,722.
B. Home Improvement
A home improvement loan is used for remodeling or repairing a private residence. It is typically short - term and may or may not be secured by the homes it finances. Secured home improvement loans generally offer lower interest rates. In 2022, 368 loans were applied for home improvement purposes.
C. Demographics of Loan Applicants
The racial demographics of loan applicants reveal curious patterns. Among the applicants, White residents make up approximately 44% of the total loan applicants. According to the 2018 -2022 ACS 5– Year Estimate, 27% of the City is White and not Hispanic, mak ing their representation of applicants uneven by 17.03% with their respective percentage of the City’s Population. Whereas the approval rating for other races – Black, Asian, Native American, Hawaiian, their numbers of applicants were proportionate to their population in the City; except Multi race. The data illustrates that the minority with the highest denial percentage is Native Hawaiian or Other Pacific Island; given the small sample size in relation to the total applicants, the high denial percentage rate will not be an impediment. Approximately a third of the applicant's race was not available; it can significantly impact the analysis and monitoring of racial disparities in lending practices.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 47 of 76 Current Race & Ethnicity Comparison % of Total Population Race/Ethnicity 2022 Year 2022 % of the
total population
White 27,892 27%
Black or African American 4,617 5%
American Indian and Alaska Native 1,711 2%
Asian 13,691 13%
Native Hawaiian and Other Pacific Islander 692 1%
Some other race 40,237 39%
Two or more races 13,053 13%
Total 101,893 100%
Hispanic 70,692 69%
Non-Hispanic 31,201 31%
Source: 2018-2022 ACS 5-Year Estimates
Table 54: Current Race & Ethnicity Comparison % of Total Population
Racial Demographics of Loan Applicants
Race Number of
Applicants
% of
Applicants Approved % Denied %
White 1,465 44.81% 886 60.5% 234 16.0%
Black or African American 115 3.52% 52 45.2% 32 27.8%
Asian 388 11.87% 203 52.3% 88 22.7%
American Indian or
Alaska Native 23 0.70% 10 43.5% 3 13.0%
Native Hawaiian or Other
Pacific Islander 22 0.67% 10 45.5% 7 31.8%
2 or more minority races 6 0.18% 4 66.7% 1 16.7%
Joint 54 1.65% 33 61.1% 6 11.1%
Free from Text only 3 0.09% 0 0.0% 3 100.0%
Race Not Available 1193 36.49% 474 39.7% 183 15.3%
Total 3,269 100.00% 1672 51.1% 557 17.0%
Source: 2022 FFIEC Home Mortgage Disclosure Act: derived_race Table 55: Racial Demographics of Loan Applicants
Ethnic Demographics of Loan Applicants
Ethnicity Number of Applicants % of Applicants
Hispanic 1,509 46.16%
Non-Hispanic 816 24.96%
NA 944 28.88%
Total 3,269 100.00%
Source: 2022 FFIEC Home Mortgage Disclosure Act
Table 56: Ethnic Demographics of Loan Applicants
D. Income of Loan Applicants
The 2022 FFIEC Home Mortgage Disclosure Act Data reports the gross annual income used to make credit decisions. If no decision was made, it refers to the income used during the application process. In total, 10.80% (353 out of 3,269) of applications fall into the Unknown category.
More than half, 51.21% (1,674 out of 3,269), of applications are from applicants in the ‘Moderate and Above (>80%)’ income category, indicating incomes above $95,300. Additionally, 23.52% (769 out of 3,269) of applications are in the ‘Low (51 -80%)’ income category. The ‘Very Low (31 -50%)’ and ‘Extremely Low (0-30%)’ categories have fewer applications, with 8.99% (294 of 3,269) and 5.48% (179
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 48 of 76 of 3,269) of applications, respectively. These statistics highlight the distribution of applicants across different income levels, providing a clear picture of the income demographics.
Applicants by Income Level
2022 Income Limits
Categories
Income
Levels
Number of
Applications
%
Applications
Extremely Low (0-30%) $35,750.00 179 5.48%
Very low (31-50%) $59,550.00 294 8.99%
Low (51-80%) $95,300.00 769 23.52%
Moderate and Above (>80%) $95,301 and
above 1,674 51.21%
Unknown9 N/A 353 10.80%
Total 3,269 100.00%
Source: FY 2022 Income Limit Area Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area & 2022 FFIEC Home Mortgage Disclosure Act_income
Table 58: Applicants by Income Level
Top Reasons for Denial
Reason # of Denials % of Denials
Debt to Income Ratio 214 38.42%
Employment History 5 0.90%
Credit History 124 22.26%
Collateral 37 6.64%
Insufficient Cash 12 2.15%
Unverifiable Information 27 4.85%
Credit Application Incomplete 89 15.98%
Mortgage Insurance Denied 0 0.00%
Other 49 8.80%
Total 557 100.00%
Source: 2022 FFIEC Home Mortgage Disclosure Act
Public HMDA - LAR Data Fields | HMDA Documentation (cfpb.gov) https://ffiec.cfpb.gov/documentation/publications/loan-level-datasets/lar-data-fields Table 57: Top Reasons for Denial
Finally, the lenders with the highest denial rates in the City are listed in Table 60. Since the 2020 AI for Norwalk, the top ten lenders from the 2018 Lending Patterns were also listed among the top ten lenders in the 2022 FFIEC HMDA report: United Shore Financial Services, LLC, Broker Solutions, INC., JPMorgan Chase Bank, and National Association.
The lenders with the highest denial rates for mortgage applications. SPRING EQ, LLC tops the list with a denial rate of 66.7%, followed by the Credit Union of Southern California at 54.5%. Bank of America, National Association, has a significant number of applications (160) with a denial rate of 49.4%. Other notable lenders include MUFG Union Bank and Bank of the West, with denial rates of 42.3% and 40.0%, respectively. The data indicates that larger institutions like Bank of America and U.S. Bank National Association, despite having more applications, still exhibit high denial rates. This trend suggests that both smaller and larger lenders can have substantial denial rates, potentially reflecting stringent lending criteria or applicant profile.
9 “Unknown” reports on the number of applications where income levels were not verified and did not show on various credit reports obtained.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 49 of 76
Lenders with Highest Denial Rates
Rank Lenders10 Applications Denials %
1 SPRING EQ, LLC 54 36 66.7%
2 CREDIT UNION OF SOUTHERN
CALIFORNIA 22 12 54.5%
3 BANK OF AMERICA, NATIONAL
ASSOCIATION 160 79 49.4%
4 MUFG UNION BANK, NATIONAL
ASSOCIATION 26 11 42.3%
5 BANK OF THE WEST 30 12 40.0%
6 OCMBC, INC. 37 14 37.8%
7 U.S. BANK NATIONAL
ASSOCIATION 105 39 37.1%
8 AMERISAVE MORTGAGE
CORPORATION 44 14 31.8%
9 NAVY FEDERAL CREDIT UNION 23 7 30.4%
10 DISCOVER BANK 30 9 30.0%
Source: 2022 FFIEC Home Mortgage Disclosure Act
Table 580: Lenders with Highest Denial Rates
As shown in Table 61, of all the top ten lenders, two were also listed as lenders with the highest denial rates: Bank of America National Association and U.S. Bank National Association.
top Ten Lenders
Lender
Name
Total Approved Denied Withdrawn/
Closed
# of applications
Market Share
"Loan Originated"
"Application approved
but not accepted"
"Preapproval request
approved but
not accepted"
"Application denied"
"Application
withdrawn by
applicant & File closed
for incompleteness"
#
#
#
Total #
% of Total
applications
of lender
#
% of Total
applications
of lender
#
% of Total
applications
of lender
UNITED SHORE
FINANCIAL
SERVICES, LLC
291 8.9% 228 3 0 231 79.4% 26 8.9% 33 11.3%
ROCKET
MORTGAGE,
LLC
186 5.7% 139 6 1 146 78.5% 20 10.8% 20 10.8%
10 This report shows the lenders with a minimum of 20 applications meeting the selected criteria. Data used in this analysis are taken from the 2022 FFIEC Home Mortgage Disclosure Act. Purchases were ignored when calculating ratios.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 50 of 76
BANK OF
AMERICA,
NATIONAL
ASSOCIATION
160 4.9% 52 1 0 53 33.1% 79 49.4% 27 16.9%
SCHOOLSFIRST 106 3.2% 78 1 0 79 74.5% 8 7.5% 19 17.9%
U.S. BANK
NATIONAL
ASSOCIATION
105 3.2% 43 0 0 43 41.0% 39 37.1% 18 17.1%
NEWREZ LLC 71 2.2% 12 0 0 12 16.9% 16 22.5% 22 31.0%
JPMORGAN
CHASE BANK,
NATIONAL
ASSOCIATION
68 2.1% 38 2 0 40 58.8% 4 5.9% 18 26.5%
BROKER
SOLUTIONS,
INC.
63 1.9% 34 0 0 34 54.0% 0 0.0% 29 46.0%
HOME POINT
FINANCIAL
CORPORATION
59 1.8% 34 0 0 34 57.6% 7 11.9% 5 8.5%
PENNYMAC
LOAN
SERVICES, LLC
59 1.8% 12 0 0 12 20.3% 9 15.3% 21 35.6%
All other Lender's
Applicants 2101 64.3% 912 76 0 988 47.0% 349 16.6% 513 24.4% Total 3269 100.0% 1582 89 1 1672 51.1% 557 17.03% 725 22.2% Source: 2022 FFIEC Home Mortgage Disclosure Act County 06037 - Los Angeles county - California Table 591: Top Ten Lenders
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 51 of 76 CHAPTER 5: Public Practice
Public policies established at the federal, state, and local levels can affect housing development and , therefore, may have an impact on the range and location of housing choices available to residents. Fair housing laws are designed to encourage an inclusive living environment and active community participation. An assessment of public policies and practic es enacted by jurisdictions within the collaborating entities can help determine potential impediments to fair housing opportunity. This section presents an overview of government regulations, policies, and practices enacted by each of the jurisdictions that may impact fair housing choice.
The General Plan of a jurisdiction establishes a vision for the community and provides long-range goals and policies to guide the development in achieving that vision. Two of the seven state mandated. General Plan elements – Housing and Land Use Elements – have direct impact on the local housing market in terms of the amount and range of housing choice. The local Zoning Ordinance, which implements the Land Use Element, is another important document th at influences the amount and type of housing available in a community – the availability of housing choice.
In 2018, the County developed a ‘City Plan to Prevent and Combat Homelessness: A Guide 11’ for local municipalities. This plan serves as a model for addressing homelessness, promoting subsidized housing opportunities, securing funding, enhancing income, providing case management services, and expanding affordable and homeless housing. The County’s objective is to create 8,000-10,000 supportive housing units over the next decade. In late 2018, California’s ‘No Place Like Home’ bond was introduced to support permanent supportive housing initiatives. Additionally, in August 2018, Los Angeles County published the City Homeless Plans12 of all the City’s responses to the County’s development of the guide.
The City of Norwalk prepared its own strategic plan to address homelessness, titled “From Streets to Stability: A Strategic Action Plan to Address Homelessness in the City of Norwalk”. This report analyzed the current homeless needs in the community and outlined how Norwalk intends to allocate and advocate for resources for individuals and families experiencing homelessness. This report was adopted by City Council on November 18, 2023, and established the following goals:
• Increase inventory of supportive housing
• Strengthen outreach efforts to provide a swift and targeted response • Advance prevention programs to stop low -income and at -risk residents from falling into homelessness
• Improve data tracking capabilities and report progress against performance measurements • Drive better outcomes through communication efforts, legislative action, and funding optimization
Lastly, the City of Norwalk prepared a Strategic Plan for 2023 -2025, which established the priorities of the City Council and outlined goals and objectives that responded to the community’s needs. This report was adopted by City Council on June 6, 2023, and the following goals were implemented:
• Provide high quality customer service to the community • Work in partnership with the Norwalk community to achieve safe and livable neighborhoods • Create and sustain a resilient and economically prosperous city • Support sustainability and climate resilience throughout the community
11 6-Planning-Guide_City-Homelessness-Plan.docx (live.com) 12 All-Cities-Homeless-Plans_8.31.18-pdf.pdf (lacounty.gov)
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 52 of 76
1. Housing Element Law and Compliance
The Housing Element of the General Plan is subject to review by the State Department of Housing and Community Development (HCD) for compliance with State law. All economic segments of the community must be taken into consideration. Local governments must regulate housing development to adequately address the housing needs and demands of their communities. Requirements of the Housing Element are to:
• Identify adequate sites that will be made available through appropriate zoning and development standards and with services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels in order to meet the community’s housing goals; • Assist in the development of adequate housing to meet the needs of low - and moderate-income households;
• Address, and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing;
• Conserve and improve the condition of the existing affordable housing stock and • Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, disability, sexual orientation, gender identification, or any other arbitrary factor.
The City of Norwalk’s 6th Cycle (2021-2029) Housing Element was adopted as of February 21, 2023, and was found in substantial compliance with California Code Section 65590 et seq as of November 23, 2023.
However, the State of California decertified the Housing Element on October 2, 2024, due to misinterpretations of State regulations as it relates to several housing laws, including, but not limited to, the Housing Crisis Act (HCA), the Anti-Discrimination in Land Use Law, Affirmatively Furthering Fair Housing (AFFH), and the Housing Element Law. The City is working with the State to address and resolve these concerns. The goals stated in the Housing Element that impact Fair and Affordable Housing will remain the same. Thus, the City will be working to address these goals for the next five years.
In accordance with federal and state law, the City must create and enforce fair housing opportunities for all community members regardless of race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability. The 2021 -2029 Norwalk Housing Element13 has five goals that impact fair and affordable housing:
1) Encourage a variety of housing types
2) Assist in the development of adequate housing to meet the needs of low -and moderate income and special needs households
3) Address, and where appropriate, remove governmental constraints to the maintenance, improvement, and development of housing
4) Help conserve and improve the conditions of neighborhoods and existing housing, especially affordable housing, and
5) Promote and affirmatively further fair housing opportunities and promote housing opportunities to all regardless of race, religion, sex, marital status, ancestry, national origin or color.
The Regional Housing Needs Allocation (RHNA) is a California state-mandated process that assists local government plan for housing needs for all income levels, in which the State gives each jurisdiction their “fair share” of local housing needs according t o income distribution. Norwalk was assigned a RHNA of 5,034 units. Housing units for which building permits have been issued or are in plan check and for which applications have been approved since July 1, 2021, are eligible to credit towards the RHNA. Currently, the City has an estimated 2,880 units that can count towards the City’s RHNA, with a remaining of 2,155
13 Housing Element | City of Norwalk, CA
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 53 of 76 units. Pipeline projects, which include approved and proposed, account for 2,425 units. In addition, ADU construction would likely add 454 units to the City’s housing inventory.
• Very Low Income: 721 units
• Low Income: 320 units
• Moderate Income: 152 units
• Above Moderate Income: 1,232 units
After the current pending housing projects are constructed , the Housing Element committed to the development of 2,155 units14.
• Very Low Income: 718 units
• Low Income: 237 units
• Moderate Income: 496 units
• Above Moderate Income: 704 units
Fair Housing policies and/or programs promoted by the Norwalk Housing Element include:
• New housing units in high resource areas
• 100% replacement of demolished affordable units
• Designation of 100 units for special needs households • Land Use Policy changes including: approval and integration of mixed-use development, transit- oriented development, parking restrictions, eliminate sliding scale density restrictions, minimum lot sizes, accommodate higher density housing and density bonuses, permitted accessory dwelling units, lot consolidation incentives, streamline development process (ing) through electronic plan check system, objective design standards, reduction of planning and development fees, permit shelters and supportive housing and supportive care uses, land use definition changes, and reserved sewer/water capacity.
• Program Building including: targeted outreach programs addressing fair housing and equitable access education, homeownership programs, targeted homelessness short and long -term solution programs, tenant protection and anti -displacement programs, partnership building with funding agencies, voucher and subsidy programs and homelessness providers , energy conservation, neighborhood improvement/rehab programs, and housing preservation code enforcement.
2. Land Use Element
The Land Use Element of the City’s General Plan is used to describe the general distribution, location, and purpose of land planned for residential, commercial, industrial, and other uses, such as public facilities. Density and intensity are also analyzed in the Land Use Element. Residential population density can best be expressed as the number of dwellings per acre and the number of residents per dwelling.
Intensity may vary, and multiple factors are considered for different types of land use. Intensity m ay be considered as dwelling units per acre, as well as floor area ratio (FAR), which is the ratio of the building’s floor area to its total site, lot coverage and building height, and lot size.
14 Pursuant to California State Law, reuse sites are subject to by-right approval if 20% of units are deed restricted as affordable housing.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 54 of 76
Figure 5. Norwalk - General Plan Land Use Map
3. Zoning Ordinance
Generally, the City’s zoning accommodates the development of affordable housing. The zoning map directs the various types of housing and special use housing permitted in each zoning district throughout the City. Certain zoning regulations can restrict the development of affordable housing and or supportive uses. Regulations that typically levy excessive restrictions may include: land use definitions, zoning district regulations, individual land use regulations a nd parking. The following definitions in Norwalk’s zoning ordinance that may or could support or negatively impact affordable housing and supportive uses depending on how they are regulated are:
A. Zoning Definitions
"Accessory dwelling unit " or "ADU" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel whe re a single-family dwelling unit is situated. The term also includes an "efficiency unit" as defined in Health and Safety Code Section 17958.1 and a "manufactured home" as defined in Health and Safety Code Section 18007.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 55 of 76 "Factory built housing " means a residential building, dwelling unit, or an individual dwelling room or combination of rooms thereof, or building component, assembly, or system manufactured in such a manner that all concealed parts or processes of manufacture cannot be inspected before installation at the building site without disassembly, damage, or destruction of the part, including units designed for use as part of an institution for resident or patient care, which is either wholly manufactured or is in substantial part manufactured at an off -site location to be wholly or partially assembled on -site in accordance with building standards published in the State Building Standards Code. Factory built housing does not include a mobile home, mobile accessory building, or structure, a recreational vehicle, or a commercial coach.
"Fair Housing Laws" means the "Fair Housing Act" (42 U.S.C Section 3601 et seq.), the "Americans with Disabilities Act" (42 U.S.C. Section 12101 et seq.), and the "California Fair Employment and Housing Act" (California Government Code Section 12900 et seq.), as these statu tes now exist or may be amended from time to time, and the implementing regulations for each of these statutes.
"Family" means one or more persons living together as a single housekeeping unit in a single dwelling unit, with common access to and common use of all living, kitchen, and eating areas with the dwelling units. Family also means the persons living together in a licensed residential facility, as that term is defined in California Health and Safety Code Section 1502(a)(1) serving six or fewer persons, excluding the licensee, the members of the licensee's family, and persons employed as facility staff who reside at the facility.
“Hospital, mental” or "Mental hospital" means an institution licensed by State agencies under provisions of law to offer facilities, care and treatment for cases of mental and nervous disorders but not licensed to provide facilities and services in obstetrics and general medical practice. Establishments limiting services to juveniles below the age of five years and establishments housing and caring for cases of cerebral palsy are specifically excluded from this definition.
"Institution" means an establishment maintained and operated by a society, corporation, individual, foundation or public agency for the purpose of providing charitable, social, educational or similar services to the public, groups or individuals.
"Manufactured home development" means a site that contains or is intended for the long -term location of manufactured homes that may include services and facilities for the residents. Includes manufactured home park (with leased or condominium spaces), manufactured home subdivision (ind ividually platted spaces), trailer park or court, and mobile home park or court.
"Reasonable accommodation" means any modification requested or granted from the City's zoning and land use laws, regulations, policies, and procedures or any combination thereof, that may be reasonable and necessary for a disabled person to have an equal opportunity to use and enjoy a dwelling.
"Sanitarium" means a health station or retreat or other place where resident patients are kept, and which specializes in giving clinical, temporary and emergency services of a medical or surgical nature to resident patients and injured persons, and licensed by State agencies under provision of law to provide facilities and services in surgery, obstetrics or general medical practice, as distinguished from treatment of mental and nervous disorders, but not excluding surgical and post-surgical treatment of mental cases.
"Single room occupancy housing" or "SRO housing" means a dwelling within a multiple-family dwelling structure, between 150 and 350 square feet, with a room and space for a bed; a closet; a full kitchen including sink, space for a refrigerator and a stove, range top or oven; and a separate bathroom with sink, toilet, and bathtub or shower. An SRO unit shall accommodate a maximum of two persons.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 56 of 76 B. Zoning Consistent with Fair Housing
Existing Regulations in Norwalk Zoning Ordinance that positively impact fair housing and or affordable housing:
• Procedures for Reasonable Accommodations §17.02.202
• The definition of “Family” is flexible and not limiting • The zoning ordinance addresses fair housing law
• Density Bonus requirements §17.04.235. In enacting this section, it is the intent of the City to facilitate the development of affordable housing and to implement the goals, objectives, and policies of the housing element of the City's General Plan. Density Bonus requirements, although not mandatory, the City offers density bonus incentives to any residential developer that benefit low and moderate income and senior residents.
• Density Bonus section states, “The City may not apply any development standard that would physically preclude the construction of a housing development at the densities or with the incentives permitted by this section.” §17.04.235
C. Zoning Conflict with Fair Housing:
Existing Regulations in Norwalk Zoning Ordinance that negatively affect fair housing and or affordable housing:
• SRO uses require 1 parking space per unit. §17.03.040 • SRO use regulations §17.04.236. The SRO Purpose statement sounds negative. These use regulations assume SRO units will be built within a larger development format, leaving no opportunity for smaller development plans. SRO units can only be built in one zoning district R-3.
Only 20% of a development project can be SRO units. Laundry facilities are required. There is a requirement for Open Space. There are operational standards. (multifamily developments 24 hour/day resident manager is required for larger SRO complexes. • Accessory Dwelling Unit (ADU) use regulations, §17.04.210, minimum lot sizes, lot widths, required open space, access type and location, and location on the lot restrictions can hinder the development of ADUs.
• Hospitals, mental uses are restricted to manufacturing districts and C -3 zoning through a conditional use process. Mental health and drug/alcohol recovery/treatment offices or centers are not specifically regulated and permitted in the current ordinance. • Open Space requirements. Currently open space requirements are mandated per unit creating many unusable spaces.
• Lot Width requirements. In medium and higher density residential zoning districts require a minimum lot width of 50 feet. R-4 requires 100 feet. Lot widths in higher density areas should be more flexible.
• No transit-oriented development regulations exist.
D. Recommended Zoning Changes
Enhance local land use and zoning laws by:
1. Creating fair housing policies and align discriminatory or conflicting zoning and land use laws, practices and policies including: residential care facilities, emergency shelters and parking.
2. Identifying priority goals and target areas for new housing and or housing rehab where employment and transit opportunities exist.
3. Creating regulations conducive to affordable housing needs.
4. Creating appropriate building envelope sizes for each zoning district and be inclusive with regards to unit size building height, reduced parking, transit and pedestrian connectivity.
5. Amending SRO and ADU standards to increase opportunities for densely and efficiently developed affordable housing units.
6. Eliminating open space requirements where affordable housing is planned or targeted. Consider creating usable green spaces on adjacent (close-by) public-owned properties.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 57 of 76
7. Reviewing and considering smaller lot width minimum requirements in areas planned or targeted for affordable and or densely developed housing.
8. Amending the zoning code to include development standards for Transit -Oriented Development (TOD).
E. Other Conflict Considerations
The following lists additional conflicts to consider:
i. Hoarding and other Intellectual Disabilities
Hoarding in California is recognized as a disability, and individuals with this disorder are protected under the Fair Housing Act. The act of hoarding itself is not illegal in California, but specific circumstances may result in violations of state statutes and local ordinances.
ii. Emotional Support Animals (ESA)
When a housing provider disallows pets or limits the kind, size, or number of pets that someone can have, California law generally requires the housing provider to provide reasonable accommodation to a person with a disability in order to allow them to live with an ESA that assists that person in managing their disability. Owners of pets who are emotional support animals are entitled to certain protections under federal law as well as California law.
iii. Transit
Affordable housing near transit not only supports low-income households but also increases the return on investment for local governments and transit operators, who spend millions on transit infrastructure. Transit-oriented development provides access to t ransit connecting residents to resources and amenities in the City and region. The Housing Element promotes TOD planning in the City. Currently there are no regulations or permitted uses that support transit and affordable housing within such developments.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 58 of 76 CHAPTER 6: Fair Housing Profile
This section discusses the institutional structure of the housing industry regarding fair housing practices.
Fair housing services available to City residents will also be covered and shall include data regarding fair housing complaints received by the fair housing provider, how fair housing investigation and resolution of housing discrimination complaints are handled, and discrimination auditing/testing results will be discussed. The City can assist residents through providing education and outreach, including the dissemination of fair housing information.
1. Homeownership – Private Sector Practices
The Fair Housing Act 15 states that it is “the policy of the United States to provide, within constitutional limitations, for fair housing throughout the United States.”16 The Act carries out the policy by prohibiting discrimination in the sale, rental, and financing of dwellings, and in other real estate-related transactions because of race, color, religion, sex, familial status 17, national origin, or disability. This section of the AI discusses the City’s efforts to determine and to evaluate the practices of the private sector as they relate to fair housing choice, including the policies and practices of real estate agents and property managers.
A. Home Purchase Process
When purchasing a home, a potential buyer must go through a process of steps, including:
• Search advertisements
• Obtaining a loan
• Working with a Real Estate Agent
B. Real Estate Advertisement
The process usually begins by searching for home for sale in advertisements. Homes for sale are advertised in magazines, newspapers, or the internet. Advertisements cannot include discriminatory references such as the use of words describing current resid ents, the neighborhood in racial or ethnic terms, that adults or types of adults are preferred, or convenience of local religious institutions.
Under 42 U.S. Code § 3604 (c), discrimination in the sale or rental of housing and other prohibited practices, it is unlawful to make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or an intention to make any such preference, limitation, or discrimination.
The National Fair Housing Alliance provides guidelines for responsible advertising to housing providers for their use. Basic guidelines they recommend include the following:
• “Make sure your advertising is compliant with fair housing laws by focusing on the property and the amenities in your rental listing description—NOT on who you think an ideal renter would be.” • “Do not make statements that exclude persons in protected classes or express a preference for one personal characteristic over others.”
A sample of 54 listings was taken from Trulia. No potentially discriminatory language was identified in these listings.
15 Title VIII of the Civil Rights Act of 1968, 42 U.S.C. §§ 3601-3619. 16 42 U.S.C. § 3601.
17 One or more individuals under the age of 18 years living with a parent or other person having legal custody of the individual or individual.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 59 of 76 Potentially Discriminatory Language in Listings of For-Sale Homes Discrimination Type Number of Listings
Potentially
Discriminatory
Language*
No Discriminatory 54 N/A
Language N/A N/A
Income Related N/A N/A
Household Size/ Family Related N/A N/A
Source: Trulia
Table 602: Potentially Discriminatory Language in Listings of For-Sale Homes
The next step is to obtain financing for the home purchase. The potential homebuyer must apply for the loan, and the lender must perform an evaluation of credit quality, determine the ability to repay the loan and the amount eligible for, and choose the type and terms of the loan, etc. Examples of discrimination18, based on race, color, national origin, religion, sex, familial status, or disability, in lending can include:
• Refusal to make a mortgage loan
• Refusal to provide information regarding loans or providing unequal information • Imposing different terms or conditions on a mortgage loan, such as different interest rates, points, or fees
• Discrimination in appraising property
• Steering an applicant toward a bad mortgage loan product • Providing inferior servicing of a mortgage loan
C. Real Estate Agents
Real Estate Agents can discriminate in ways such as providing different terms, conditions, or information related to the sale or rental of a dwelling to individuals with protected characteristics or steering individuals with protected characteristics to a particular neighborhood or area at the exclusion of other areas.
2. Rental Housing Process
When searching for a home to rent, the process is somewhat similar to a home purchase but does not require the same outlay of cash. Renting can involve the following steps:
• Search advertisements
• Viewing rental units
• Credit checks
• Security deposits
A. Advertisement for Rental Units
As with searching for homes for sale, the process for rentals also begins by searching in advertisements, usually in magazines, newspapers, or the internet. Advertisements for rental units cannot include discriminatory references that indicate preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin or an intention to make any such preference, limitation, or discrimination. A sampling of more than 45 listings were taken from Trulia. The po tentially discriminating language was identified as related to income and disability.
18 U.S. Department of Housing and Urban Development, “Understanding Fair Lending,” under “ Lending Discrimination,” https://files.hudexchange.info/resources/documents/Fair-Lending-Learning-the-Facts-Consumer-Guide.pdf.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 60 of 76 Potentially Discriminatory Language in Rental Listings
Discrimination Type Number of Listings Potentially Discriminatory Language
No Discriminatory Language 37 N/A
Income Related 8 Credit check, income 3x
rent
Disability Related 5 No pets
Household Size/ Family Related N/A
Source: Trulia
Table 613: Potentially Discriminatory Language in Rental Listings
B. Fair Housing Complaints and Enforcement
Patterns of complaints and enforcement are useful to assess the nature and level of potentially unfair or discriminatory housing practices in the private sector. Several public and private agencies may receive complaints about unfair housing practices or housing discrimination.
i. Office of Fair Housing and Equal Opportunity (FHEO)
At the federal level, the Office of Fair Housing and Equal Opportunity (FHEO) of the Department of Housing and Urban Development (HUD) receives complaints of housing discrimination. FHEO will attempt to resolve matters informally. However, FHEO may act on those complaints if they represent a violation of federal law and FHEO finds that there is “reasonable cause” to pursue administrative action in federal court.
ii. California Civil Rights Department (CRD)
At the state level, the California Civil Rights Department (CRD) has a role similar to that of FHEO.
CRD also receives, investigates, and attempts to settle, and it can take administrative action to prosecute violations of the law. HUD and CRD have overlap in jurisdiction and, depending on the nature of the case, may refer cases to one another. CRD is a HUD Fair Housing Assistance Program (FHAP) grantee, meaning that it receives funding from HUD to enforce federal fair housing law in the state.
iii. Fair Housing Foundation
The City contracts with the Fair Housing Foundation, a nonprofit organization, to help educate the public about fair housing laws and to investigate reported cases of housing discrimination. The Fair Housing Foundation is a long-established organization dedicated to promoting fair housing for all people.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 61 of 76 CHAPTER 7: Fair Housing Process Since 2020-2025 AI
This section reviews the goals and strategies of the previous Analysis of Impediments to Fair Housing Choice (AI) conducted in 2020 and determines the progress made considering these goals since then.
The 2020 AI identified five (5) goals, including 9 potential impediments, as well as activities the City will carry out over the next five years to address the issues.
Past Impediments and Actions
Potential
Impediments
Actions Progress
1. Increase
affordable
housing
opportunities
1. Support integrated housing approaches near
major employment areas/centers and transit.
2. Promote building new units containing 2 or 3
bedrooms. There is a large deficit of multifamily
housing options in the City. Such units should be
provided with an option to rent or own.
3. Encourage innovative low-cost housing materials.
4. Identify funding for transitional and supportive
housing development. Priority should be given to
Norwalk homeless and at-risk residents.
5. Understand the specific redevelopment obstacles
related to construction on the local level that can
be changed.
6. Explore more ways to work with non-profit
housing organizations to promote housing
construction training opportunities for homeless.
• The 2021-2029 RHNA indicates
5,034 units are needed. There
are 2,425 units currently in the
pipeline leaving 2,609 units yet
to be built.
• Most of pipeline units have
been earmarked for very low
income or above moderate-
income units.
• 770 pipeline units are transit-
oriented units.
• In 2022 Norwalk approved the
One-Ways Neighborhood
Revitalization Program. 36
homes have undergone
improvements.
• The City collaborated with an
affordable housing development
organization for The Walk, a
new development project that
offers 350 residential units.
• The City executed an
agreement with Mercy Housing
to provide affordable housing
for veterans through The
Veterans Villas at San Antonio
project. Construction is
expected to be completed in
November 2024.
• The City created the Homeless
Operation Prevention and
Engagement team, which is a
collaboration of City staff and
non-profit organizations, to
increase communication for
those providing services to
individuals experiencing
homelessness and assess
needs in resources.
• The City collaborated with the
Social Services Department
with CDBG funds to provide the
Emergency Assistance
Program, which provides
financial assistance for utilities
and temporary housing for low-
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 62 of 76 income Norwalk residents in
need of emergency assistance.
• The City partnered with the
Social Services Department
with HOME funds for the
Tenant Based Rental
Assistance (TBRA) Program to
provide security deposit
payments for individuals and/or
families experiencing
homelessness.
• The City collaborated with the
Los Angeles Centers for
Alcohol and Drug Abuse with
CDBG funds to assist
individuals experiencing
homelessness with substance
abuse and behavior health
needs with residential treatment
and transitional housing.
• The City partnered with
Jovenes, Inc. with CDBG funds
to provide services and case
management to youth
experiencing homelessness.
• The City worked with Kingdom
Causes Bellflower to provide
security deposit assistance to
individuals and families
experiencing homelessness
who are seeking permanent
housing.
• The City collaborated with
HOPE Inc., a Community
Housing Development
Organization (CHDO), to
provide residents with
development disabilities of low-
income affordable housing
opportunities.
• The City partnered with
Gateway Cities Council of
Government to provide housing
and services to individuals
experiencing homelessness.
• The City worked with CityNet
with CDBG-CV funds to provide
navigation services, emergency
shelters, temporary housing,
and permanent housing for
individuals experiencing
homelessness.
2. Increase
homeownership
1. Work with local banks and LACDA to begin a
Down Payment Assistance Program for first-time
homebuyers. Partner with lenders to encourage
lending to low-income first-time homebuyers.
2. Provide funding assistance to first-time
homeowners for down payments, lease or
• Norwalk offers a CALHome
Program to provide down
payment assistance. The
application approval process
requires budget counseling and
awards up to $200,000.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 63 of 76 mortgage arrangements, and homebuyer
education.
3. Increase the number of FHA loans in the City.
Only 39% of the loan applications in 2018 were
FHA loans.
4. Incorporate: home ownership education,
budgeting, and home maintenance education and
skills into housing programs.
5. Explore the use of land trust agencies where a
homeowner would own the building but not the
land therefore reducing the overall housing costs.
6. Seek out new resources and provide additional
programs for potential LMI homebuyers.
7. Retain existing homeowners by promoting its
existing and future housing reinvestment
programs and resources for property owners
throughout the City.
8. Increase public investment to improve
neighborhoods through streetscape amenities,
safety and greening initiatives.
• LACDA’s home ownership
program - HOP80 and HOP120
offers a similar loan program for
residents living in LA county.
• The City awards over $700,000
to capital improvement projects
that improve LMI
neighborhoods and accessibility
throughout the City.
• The City provided opportunities
for homeownership through the
First Time Homebuyers
Program, which provides
eligible citizens with financial
assistance in purchasing a
home in Norwalk.
• The City is in partnership with
an affordable housing
development organization to
develop The Walk, a mixed-use
project with 350 planned
residential units.
• The City is currently working
with Mercy Housing for the
development of The Veterans
Villas at San Antonio to provide
affordable homeownership
opportunities for veterans
experiencing homelessness.
The project is expected to
complete construction in
November 2024.
3. Create safe
and
integrated
neighborhoods
1. Continue to promote crime prevention and home
security information.
2. Empower neighborhood residents to form block
watch groups, and community-based policing.
3. Review and amend zoning regulations in
residential districts to be more inclusive
promoting diversity in housing style, size and
density.
4. Review current routes to school and park spaces
to understand safety issues and solutions.
• Norwalk administers a
Neighborhood Water Program.
The City is organized into 4
quadrants where Watch Groups
exist. Meetings are held in each
quadrant. Residents can
register to attend when meeting
dates/times are announced.
The watch groups discuss and
resolve safety, drug and or
noise issues. There is also a
phone number for call-in
complaints.
• The zoning codes now include
transitional and support housing
in most residential districts as
well as SRO and ADU units in a
limited number of districts.
• Section 8 Housing Choice
Voucher participants may enroll
in the Family Self-Sufficiency
Program linking community
resources for jobs, education
and career.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 64 of 76
4. Create public
awareness of
fair housing
laws and
affordable
housing
advocacy
1. Work with major employers to develop incentives
for new housing near their work.
2. United Way and the City to coordinate local
outreach about the positive impacts of affordable
housing.
3. Work with FHF, as part of its Fair Housing
contract, to annually review and report on
apartment rental advertisements released by
private housing companies. 13% of the survey
respondents noted there was loan discrimination
issues.
4. Enhance local land use and zoning laws.
a. Create fair housing policies and align
discriminatory or conflicting zoning and land
use laws, practices and policies including:
Group homes, residential care facilities,
emergency shelters and parking.
b. Identify priority goals and target areas for
new housing and or housing rehab where
employment and transit opportunities exist.
c. Create regulations conducive to affordable
housing needs. Introduce appropriate
building envelope sizes for each zoning
district and be inclusive with regards to unit
size building height, reduced parking, transit
and pedestrian connectivity
• 770 pipeline units are transit-
oriented units.
• Norwalk Entertainment District,
also known as The Walk, has
units planned near transit
corridors.
• The City collaborated with
Community Legal Aid So Cal
with CDBG funds to provide
services and operations in
connection with legal
counseling and services to
victims of domestic abuse and
tenants who are facing eviction.
• The City partnered with Fair
Housing Foundation with CDBG
funds to provide education,
counseling, investigation and
enforcement, and advocacy
services to promote fair housing
practices and eliminate
discrimination.
5. Increase
training
and
employment
opportunities
1. Work with community colleges and high schools
to establish or further carpentry, mechanical,
plumbing, and electrical skills training. The
construction industry is projected to increase.
2. Create mentoring programs with local skilled
trades companies.
3. Improve education and provide skills training for
education, healthcare, manufacturing and
construction jobs.
a. Create partnerships with California’s
Employment Development Department,
Workforce Development Board, Workforce
Development Aging & Community Services,
California Building Industry Association,
Southern California Building Association,
Cerritos Community College, Cypress
College, Rio Hondo Community College, and
workforce readiness programs available in
local vocational and technical schools and
programs. Such programs exist in the Junior
Achievement of Southern California and the
L.A. Opportunity Youth Collaborative.
b. Increase training opportunities that target
“Second Chance”, persons with disabilities,
at-risk homeless individuals, and job
retraining program.
• The Housing Element
recommends job training at
shelter locations.
• The City identified, in their
Housing Element, new
strategies to increase income
through employment by
increasing training and
employment opportunities.
• The City partnered with La
Mirada Unified School District
Adult School for GED, English,
career related technology.
Cerritos College, a public
community college that
educates nearly 1,200 Norwalk
residents annually.
• The Southeast LA County
Workforce Investment Board
assists with staffing and
recruitment services and
customized on-the-job training,
layoff, outplacement and
retraining.
Table 624: Past Impediments and Actions
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 65 of 76 CHAPTER 8: Fair Housing Action Plan 2025-2030 AI
1. Data Collection and Engagement Conclusions
The City, according to data provided in the previous chapters, has several priority issues:
• Housing affordability
• Housing availability
• Flexibility of zoning for new affordable housing
• Household rental and purchase assistance
• Supportive housing services are short-term
• Fair housing legal assistance
• Income requirements are too low for housing assistance
The total population in the City has decreased by 0.86% since 2020 and 4% since 2010. The median home values have increased by 29% since 2020, whereas the median gross rent increased by 11% since 2020. The median household income has increased by 18% since 2020; the data suggest this increase is suitable for the median growth rent increase but not sufficient for median home values . The median age in the City is 35.3 years old, and 22% of the population has earned a Bachelor’s Degree or higher.
Of the City’s population for whom poverty status is determined, 9.02% live at or below the poverty level.
The most common racial -ethnic group living below the poverty line in the City is Hispanic, followed by White and Other races. DataUSA reports that the male gender in the city currently earns 25% more than the female gender.
Increases in median rents have occurred for several reasons: 1) current demand for more rental units is high, and 2) households are choosing not to become homeowners because they may be having difficulties qualifying for a mortgage. Housing affordability for low —and very low-income households to rent or obtain a mortgage is a big challenge the City is facing.
Table 23 and Table 25 show median housing and rent values and what is affordable in the City. For a family of four who make less than 30% of the median household income, an affordable rent is $946.25 per month. Table 23 shows the median gross rent in the City is $1,860 per month. The gap of affordability is $ 913.75. For a family of four who makes between 50% and 80% of the median household income, an affordable home is $348,094. Table 23 shows that the median housing value in 2022 is $593,100. The gap of affordability is $191,006 (see page 22).
From 2020 to 202119 there was a 316 unit decrease in the total number of rental units. Over 1 year, the number of units that rent for $999/month or less has decreased; similarly, the total number of units between $500 and $999 decreased by 11%, and the total number of units between $1,000 and $1,999/month decreased by 11%. The total number of units over $2,000/month increased by 17%. It could be concluded that apartment rents have increased for both new and existing units.
Norwalk partners with the Fair Housing Foundation, Norwalk Housing Authority (Housing Voucher Program), Department of Code Enforcement, County of Las Angeles, HOPE Homes and other service providers to create opportunities for property managers and landlords to rent to low - and moderate- income households that receive vouchers. The City offers a free annual inspection, and free advertising on the Housing Authority’s vacancy list, signing bonus, damage mitigation program, and security deposit grants.
19 ACS most current Gross Rent Year is 2017-2021 5-Year Estimates
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 66 of 76
Zoning in the City provides appropriate definitions for Family, Transitional and Supportive Housing , reasonable accommodation, density bonuses, as well as providing density incentives for inclusion of affordable housing. Conflicts with the ordinance include: SRO and ADU use purpose and requirements, Hospitals or Residential Care Facilities use locations, open space requirements for affordable housing unit types, generally lot width and parking requirements, and Group Home, Emergency Shelters. The zoning ordinance addresses fair housing law
City’s Housing Element provides housing planning policies and implementation guidance between 2021 and 2029 and included extensive community outreach. The plan outlines impediments to providing affordable housing, including continued funding for Section 8 Housing Choice Vouchers. The plan quantifies the needed additional housing units at each income category and includes strategies for meeting those goals. The Los Angeles County Development Authority recently completed its 2018-2023 Analysis of Impediments to Fair Housing Choice20. The County’s priority goals include:
• Enhance accessible facilities and infrastructure for persons with disabilities • Promote more affordable housing for special needs populations • Enhance accessible housing supportive services to persons with disabilities • Promote healthy communities
• Enhance and create viable communities
• Promote understanding and knowledge of fair housing and ADA laws • Coordinate the AI with other agencies’ plans and programs to address contributing factors • Promote lower rates of crime in R/ECAP areas
• Enhance Limited English Proficiency services in R/ECAP areas • Create viable communities
• Promote affordable housing
• Enhance employment opportunities
• Facilitate access to proficient schools
• Enhance transit services
2. Setting Fair Housing Goals and Priorities
After gathering stakeholder and public input for fair and affordable housing concerns and needs , City partners collaborated to establish fair housing goals and recommended actions. The goals and actions address critical fair housing issues and guide the City’s efforts in promoting fair housing while reducing barriers to housing accessibility.
HUD offers a list of potential contributing factors, each with accompanying descriptions. The City used this HUD-provided list, along with explanations for each factor, to assess whether any of these factors play a role in creating, perpetuating, or exacerbating fair housing issues.
In addition to analyzing HUD -provided data, local information, and community insights, we considered other factors that impact fair housing issues. The community participation process helps program participants identify and prioritize these contributing factors. Housing and social service participants were directly involved in the engagement process:
• Identifying fair housing issues and significant contributing factors
20 https://www.lacda.org/community-development/plans-and-reports - executive-summary---english.pdf (lacda.org)
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 67 of 76 • Prioritizing contributing factors, giving highest priority to those factors that limit or deny fair housing choice or access to opportunity or negatively impact fair housing or civil rights compliance; and
• Setting priorities and goals to address the identified contributing factors and related fair housing issues.
3. Contributing Factors to Fair Housing Issues
City staff, stakeholders, regional housing and service entities, and the community at large collaborated to identify and prioritize fair housing issues and contributing factors. Based on community engagement and data from either HUD or other local sources, the following contributing factors to fair housing issues have been categorized as “lower” or “higher.”
Contributing Factors to Fair Housing Issues
Fair Housing Issues Contributing Factors
Priority
Lower Higher
Disparities in Access
to Opportunity:
Affordable Housing
• City land use regulations does not encourage and
outright permit affordable housing types and
opportunities near services, employment, parks
and transit.
X
• Low number of affordable homes. X
• Voucher qualification standards are set too low. X
• Low number of vouchers and need for rental
assistance. X
• High home and land values, and high construction
and material costs. X
• Need for parking requirement relief. X
• Lack of larger home options (3 bedrooms). X
• High demand for affordable senior housing X
• High family income needed to purchase a home. X
• Demand for interim supportive housing. X
Disparities in Access
to Opportunity:
Housing Services
• Supportive Housing Services. In-person or on-site
assistance for individuals/families transitioning from
homeless to interim housing.
X
• Supportive Housing Services. In-person or on-site
assistance for individuals/families transitioning from
interim housing to permanent housing.
X
• Workforce assessment, training, development and
placement services. X
Disparities in Access
to Opportunity:
Homeless Housing
• Limited homeless prevention programs and case
management workers. X
• Those needing rent assistance do not qualify. X
• Zoning challenges with the development of group
homes and supportive housing. X
• Lack of local support and resources to
collaboratively plan and build transitional and
permanent supportive housing.
X
Disparities in Access
to Opportunity:
Employment & Income
• Salaries are stagnant compared to rising cost of
housing and job market is tight. X
• Transit routes are not convenient to workplaces. X
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 68 of 76 • Lack of homeless programs and or staff designated
to seek out workforce training, employment
opportunities.
X
• Average worker does not make the average living
wage. X
• Median income for renter households is
significantly lower than owner occupied
households.
X
Disparities in Access
to Opportunity:
Fair Housing
Education
• Landlord willingness to accept Section 8 tenants or
special needs tenants. X
• Low awareness to Fair Housing Law and minimal
outreach. X
• Lack of landlord education with tenant interviews,
rental contracts, eviction processes, criminal
activity awareness and rental assistance
resources.
X
• Lack of complaint/discrimination data X
Table 635: Contributing Factors to Fair Housing Issues
4. Priority Goals and Actions
The highest priority Contributing Factors to Fair Housing listed on Table 65 are based on community engagement activities and data analysis.
A. Affordable Housing Contributing Factors:
• City land use regulations do not encourage and outright permit affordable housing types and opportunities near services, employment, parks and transit • Low number of affordable homes
• Low number of vouchers and need for rental assistance • High home and land values, and high construction and material costs • High family income needed to purchase a home
• Demand for interim supportive housing
B. Housing Services Contributing Factors:
• Supportive Housing Services. In-person or on-site assistance for individuals/families transitioning from homeless to interim housing with collaboration with a non-profit organization. The City can collaborate with the organization by providing federal funds for case management and/or supportive services for individuals/families transitioning into housing or currently housed.
C. Homeless Housing Contributing Factors:
• Limited homeless prevention programs and case management workers • Those needing rent assistance do not qualify
• Zoning challenges with the development of group homes and supportive housing • Lack of local support and resources to collaboratively plan and build transitional and permanent supportive housing
D. Employment & Income Contributing Factors:
• Salaries are stagnant compared to rising cost of housing and job market is tight • Transit routes are not convenient to workplaces
• Lack of homeless programs and or staff designed to seek out both work and housing opportunities
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 69 of 76 • Average worker does not make the average living wage
• Median income for renter households is significantly lower than owner occupied households
E. Fair Housing Education Contributing Factors:
• Landlord willingness to accept Section 8 tenants or special needs tenants • Low awareness to Fair Housing Law and minimal outreach • Lack of landlord education with tenant interviews, rental contracts, eviction processes, criminal activity awareness and rental assistance resources
F. Goals
The City has created the following goals and action steps were developed as a result of specific data capture, partner agency consultation, existing programs and policies, community engagement, outreach activities and issue prioritization. Through the AI p lanning and outreach process, the following 6 goals have been developed with associated action steps as shown in Table 66:
The following matrix table describes and lays out the top issues, priority goals and action steps that will reduce current barriers and contributing factors to fair housing. Several high priority action steps have been highlighted to provide clearer direction for Council, City staff and partnering agencies.
Goals
Goal 1 - Increase interim and affordable permanent housing Goal 2 - Collaboratively provide needed housing services.
Goal 3 - Advance and grow housing subsidy programs.
Goal 4 - Reduce land use barriers to allow for needed homeless uses services.
Goal 5 - Increase job training, employment services, and ancillary programs that enable working families to thrive.
Goal 6 - Improve community awareness on fair housing law.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 70 of 76
GOALS & ACTION STEPS
Goal Top Issues Action Steps
INCREASE HOUSING
Goal 1: Increase permanent
housing.
City land use regulations do not
encourage and outright permit affordable
housing types and opportunities near
services, employment, parks and transit
• Create ordinance flexibility to permit HomeKey conversion designs, units that permit roommates and boarders, micro-communities (tiny house, container units), mixed use containing affordable units, manufactured units, accessory dwelling units • Zoning reforms and density bonuses.
o Loosening/flexibility of requirements and regulations. o Assistance with current ADU code compliance.
• Reduce city permitting and tap -in fees to help reduce the cost of building affordable housing development
Low number of affordable homes
particularly larger family homes, senior
units, and small units
• Implement Goal 1: Housing Availability of the Housing Element. Policies 1.1-1.6. • Implement Goal 4: Help conserve and improve the conditions of neighborhoods and existing housing, especially affordable housing.
• Create policies and a review process that analyzes and encourages a variety of unit sizes including units that incorporate ADA amenities.
High home and land values, and high
construction and material costs
• Work with housing developers to create and provide resources and subsidies for property acquisition.
Demand for interim supportive housing
• Work with shelter organizations to determine the number of interim units needed and solutions for project locations, special and service needs, services and amenities. • When/where needed, provide on-site service providers
• Ensure on-site wrap-around services are provided
o General support services, housing navigation support, life still training, intense case management services, mental health and substance abuse services to address trauma from homelessness, employment and financial literacy and planning.
• Pathways to Home Sites establishing tiny home sites as pathways to permanent housing.
• Permit interim housing on parking lots by first examining the City’s Zoning Codes and then changing applicable codes, as necessary.
HOUSING SERVICES
Goal 2: Collaboratively provide
needed housing services.
Supportive Housing Services. In-person
or on-site assistance for individuals/
families transitioning from homeless to
interim housing
• Continue p roviding comprehensive case management with all subsidies, not just housing navigation. Ensure individuals and/or families receive a detailed assessment and wrap-around services based on their acuity level.
• Conduct wrap-around services assessment that include help including professionals like psychiatrists, social workers, occupational therapists, and peer support. o Intensive Case Management Services (ICMS)
• Offer continuation support/eviction prevention programs, especially during the initial move-in period, including help with bill paying and understanding rental agreements. • Work with landlords on providing long-term leases to prevent families from returning to homelessness, with transitional leases from project-based properties Limited homeless prevention programs
and funding for case management
workers
• Provide educational classes, particularly to inform of available resources for permanent housing
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 71 of 76 o Home ownership and first -time homebuyer programs, life skills training, financial health, housing rights, socialization, reintegration into society, successful employment applications and interview preparation
• Assist with mental health, substance abuse, and health issues. • Offer retention programs that support mental health with other resources. • Provide trauma-informed case management
• Housing case management to help clients obtain vital documents and income. • Reintegration programs with job training and certification • Interim housing support services that prepare individuals/families for permanent housing.
o Mental and physical health screenings for long-term housing. o Explanations to individuals of their benefits and or available resources. • HomeKey Programs, education, and mentoring towards employment. • Housing First programs with supportive services.
• Assess the possibility of housing that includes shared facilities, utilities and amenities
HOUSING SUBSIDIES
Goal 3: Advance and grow
housing subsidy programs.
Low number of vouchers and need for
rental assistance
• Work with landlords on providing long-term leases to prevent families from returning to homelessness, with transitional leases from project-based properties • Implement mandatory landlord registration and training Those needing rent assistance do not
qualify
• Assess the City’s financial ability to create and fund a rental subsidy program that is flexible on individual/family income requirements.
LAND USE
Goal 4: Reduce land use
barriers to allow for needed
homeless uses and services.
Zoning challenges with the development
of group homes and supportive housing
• Have the Housing Element certified by the State of California to ensure full compliance with all state housing laws and regulations.
• Review and implement suggested sites, provided in the Housing Element, for future shelter sites. Incorporate associated services needed as part of shelter development. • Implement AB 129 parking standards for shelter, based on staffing levels. • Implement AB 101 requiring Low -Barrier Navigation Centers be allowed by -right in mixed-use and nonresidential zones that permit multi-family. • Implement SB 2339 requiring emergency shelters be allowed by -right in at least one zone permitting residential uses.
Lack of local support and resources to
collaboratively plan and build transitional
and permanent supportive housing
EMPLOYMENT
Goal 5: Increase job training,
employment services, and
ancillary programs that enable
working families to thrive.
A higher family income is needed to
purchase a home.
• Salaries are stagnant compared to
rising cost of housing.
• Job market is tight.
• Average worker does not make the
average living wage.
• Median income for renter households
is significantly lower than owner
occupied households.
• Work with top employers to create needed workforce training and future jobs. o Virtual learning and/or on-site training opportunities. o Provide on-site training in places where childcare and transit is available. o Provide opportunities for career exploration and development o Create programs that enable individuals to implement career change • Work with top employers to provide mentorship programs to lower paid employees that give opportunity for promotion and skillset advancement. • Work to create partnerships with: California’s Employment Development Department, Workforce Development Board, Southeast Los Angeles County Workforce Investment Board, Workforce Development Aging & Community Services, California Building Industry Association, Southern California Building Association, Cerritos Community College, Cypress College, Rio Hondo Community College, and workforce readiness programs available in lo cal vocational and technical schools and programs. Such
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 72 of 76 • 65% of survey responders identified
job creation/job generating businesses
should be a priority.
Lack of homeless programs and or staff
designated to seek out workforce training,
employment opportunities.
programs exist in the Junior Achievement of Southern California , L.A. Opportunity Youth Collaborative , Community Youth Corps, WorkSource, Buena Park One -Stop Safelight, Orange County CA Unemployment Office, and WorkSource@Rescare/East L.S. Employment & Business Center
o Refer to: Job and Education Resources | City of Norwalk, CA o Norwalk EDD/SELACO WIB Career Center - Norwalk, CA (Address and Phone) (countyoffice.org)
• Connect people with job recruiter agencies and funding for job training. o Create more opportunities for job training, career development and recruitment for ex-offenders and persons with disabilities. Including skills training and/or college. • Connect workforce training agencies with job recruiter businesses. • Create ways for individuals to get connected with city, county and state jobs. o Establish partnerships or create non -profit job recruiter entities to help create connections, training needs, interview readiness, and interview scheduling.
Establish follow through policies. Provide funding and resources for services. • Establish ways to encourage work opportunities for minors and entry-level workers. • Establish programs that enable families to attain higher education while working.
Transit routes are not convenient to
workplaces
• Federal Transit Administration is working on creating vital connections for transit routes to employment areas.
• Incorporating transit into the workforce training and job recruitment programs.
Establishing a partnership with Norwalk Transit System. • Assess meaningful connections between LA Metro and Norwalk Transit System. • Engage top employers in Norwalk to create and or establish connections for workers.
FURTHERING FAIR HOUSING
Goal 6: Improve community
awareness on fair housing law.
Landlord willingness to accept Section 8
tenants or special needs tenants
• Build relationships with landlords and property owners to educate them on Section 8 process and provide incentives.
• Create a trial scenario with a landlord owning multiple units. Monitor tenant status and rent payment issues.
• Educate families using vouchers on being good tenants to reduce stigma.
Low awareness to Fair Housing Law and
minimal outreach
• Offer education, training, and information to staff, residents, providers, tenants and the community about available programs and resources and fair housing laws and policies. o Educate landlords, especially small landlords, about housing discrimination laws. o Increase situational awareness of housing rights.
• Educate families using vouchers on being good tenants to reduce stigma.
Lack of landlord education with tenant
interviews, rental contracts, eviction
processes, criminal activity awareness
and rental assistance resources
• Implement Goal 5: Promote and affirmatively further fair housing opportunities and promote housing opportunities to all regardless of race, religion, sex, marital status, ancestry, national origin, or color. Policies 5.1-5.5.
• Promote diversity through various social service and city programs. • Promote diversity in property management and homeownership. • Address implicit bias shown by landlords, property managers, realtors etc. through training.
• Monitor and adjust tenant selection criteria to reduce landlord power in the process. • Oversight over landlord and tenant actions.
• Understand eviction occurrences in the city by m aintaining a landlord eviction database.
Table 646: Goals & Action Steps
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 73 of 76
5. Regional Collaboration
The City together with local and regional for -profit and non-profit private organizations helps administer and implement housing programs. Many issues, such as homelessness, affordable housing, jobs - housing balance, and access to services are issues that require the collaboration between cities, the County, and nonprofit agencies throughout the region. There is a regional housing need for lower-income households. The Norwalk Housing Element notes there are over 5,000 units in the housing project pipeline. Funding for these units requires great collaboration between the City, County, federal sources, and traditional banking institutions.
LACDA offers a regional First -Time Homebuyers Assistance Program ( HOP80 and HOP120 Home Ownership Programs). These programs provide a second mortgage loan for first -time homebuyers.
HOP80 offers assistance up to $100,000, or 20% of the purchase price, whichever is less. HOP120 offers assistance up to $85,000, or 20% of the purchase price, whichever is less1. In 2020, Norwalk created a First Time Homebuyer Program through zero interest loans up to $85,000. In 2024, Norwalk developed the CalHome Program to provide substantial financial support for first -time homebuyers. The City recognized the raising housing costs and obtained the CalHome Grant to assist individual first -time homebuyers through deferred-payments loans for down payment assistance and home rehabilitation.
Norwalk Community Development Department maintains involvement with the Continuum of Care administered by LAHSA. Point-in-time counts are performed annually for Service Planning Area 7 (SPA 7). SPA 7 combines the City’s sheltered and unsheltered homeless population with that of surrounding cities. Coordinated Entry System (CES) is used throughout the County and is reliant upon this information for data and planning purposes.
The City continues to rely on local and County social services to administer and provide valuable programs. The City collaborates annually with the FHF to conduct and react to any complaints surrounding housing discrimination and fair housing education and promotion.
In a recent Housing Summit, key partnerships both in the city as well as the larger region included:
• Fair Housing Foundation – Fair housing complaints, Fair Housing Act outreach, tenant/landlord assistance
• Dignity Moves – interim housing and supportive services • Weingard – interim and permanent housing
• Mercy Housing – affordable housing development
• Global Urban Strategies – homebuyer assistance program management
Continuing these planning efforts and implementation bridge the gap of disparities among communities.
A majority of the Action Steps noted in Table 66 require collaboration. The Public Engagement planning process for the AI and 5-Year Consolidated Plan was based upon positive community-wide and agency support and participation. The City has created a solid foundation to continue work with its area partners to create a path that initiates and completes the Plan’s action steps.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 74 of 76 Appendix A – Federal Fair Housing Laws
• Title VI of the Civil Rights Act of 1964 (Title VI): Title VI is intended to protect the rights of individuals, regardless of race, color, or national origin, in programs and activities that receive federal funding or financial assistance.
• Title VIII of the Civil Rights Act of 1968 (Fair Housing Act): The Fair Housing Act (adopted in 1968 and amended in 1988) prohibits housing discrimination against any of the following seven protected classes: Race, Color, Religion, Sex, National Origin, Familial Status, and Disability
o As amended in 1988, the Fair Housing Act added “familial status” and “disability” as protected classes and increased HUD’s authority to establish mandatory enforcement measures to ensure compliance with federal law.
• Section 504 of the Rehabilitation Act of 1973 (Section 504): Section 504 established guidelines that prohibit individuals with disabilities from being denied access to housing under programs and activities that receive federal funding or financial assistance.
• Section 109 of Title I of the Housing and Community Development Act of 1974 (Section 109):
Section 109 prohibits housing discrimination based on race, color, national origin, sex, or religion under programs and activities that receive federal funding or financial assistance.
• Title II of the Americans with Disabilities Act of 1990 (Title II): Title II prohibits discrimination based on disability under programs, services, and activities provided by public entities. HUD is responsible for enforcement of Title II when it is associated with public housing, housing assistance, and housing referrals administered by state and local jurisdictions.
• Architectural Barriers Act of 1968 (Architectural Barriers Act): The Architectural Barriers Act mandates that buildings and facilities that received federal funding assistance after September 1969 be accessible to and functional for handicapped individuals.
• Age Discrimination Act of 1975 (Age Discrimination Act): The Age Discrimination Act prohibits programs or activities that receive federal funding from discriminating against individuals on the basis of age unless such discrimination is authorized by federal, state, or local laws.
• Title IX of the Education Amendments Act of 1972 (Title IX): Title IX prohibits educational programs or activities that receive federal funding or financial assistance from discriminating against individuals on the basis of sex.
• In addition to federal fair housing laws that guarantee equal access to housing, a number of presidential executive orders were also issued to minimize discrimination and barriers to obtaining housing.
• In 1988, disability and familial status (the presence or anticipated presence of children under 18 in a household) were added (further codified in the Americans with Disabilities Act of 1990). In certain circumstances, the law allows limited exceptions for discrimination based on sex, religion, or familial status.
• In 2017, a federal judge ruled that sexual orientation and gender identity are protected classes under the Fair Housing Act.
• The most recent amendment to the Fair Housing Act are:
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 75 of 76
o The Fair Housing Improvement Act of 2022 aims to prohibit discrimination based on source of income, veteran status or military status. This means that landlords and property owners cannot refuse to rent or sell housing to individuals based on these factors. o Additionally, in February 2023, the U.S. Department of Housing and Urban Development (HUD) proposed a new rule under the Affirmatively Furthering Fair Housing (AFFH) initiative. This rule is intended to address and remedy the long history of discrimination in housing and to fully enforce the Fair Housing Act.
These changes are significant steps towards ensuring fair and equitable housing opportunities for all individuals.
• California Employment and Fair Housing Act
Recent amendments to the California Fair Employment and Housing Act (FEHA) include several significant changes:
1. Employment Screening Tools: The California Fair Employment & Housing Council has proposed revisions that expand liability for employers and third-party vendors using employment-screening tools, especially those involving artificial intelligence and machine learning (2022).
2. Housing Discrimination: Amendments clarify the definition of “facially discriminatory policy” and address source of income discrimination in housing (2023).
3. Complaint Procedures: Updates have been made to the procedures for filing complaints, including clarifications on how one may file a pre-complaint inquiry and the circumstances under which the Department may investigate a complaint3.
These changes aim to enhance protections against discrimination and ensure fair treatment in both employment and housing contexts.
City of Norwalk Analysis of Impediments to Fair Housing Choice Page 76 of 76 Appendix B – Community Engagement Summary
City of Norwalk 2025-2030 Consolidated Plan – Community and Stakeholder Surveys City of Norwalk 2025-2030 Consolidated Plan – Community Meeting City of Norwalk 2025-2030 Consolidated Plan – Social Services Meeting City of Norwalk 2025-2030 Consolidated Plan – Stakeholder Interviews City of Norwalk 2025-2030 Consolidated Plan – Housing Summit City of Norwalk 2025-2030 Consolidated Plan – Public Review