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Layer: SB 535 Disadvantaged Communities (ID: 45)

Name: SB 535 Disadvantaged Communities

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Description: Identification of Low-Income Communities under AB 1550Methodology and Documentation for Draft MapsFebruary 14, 2017Data sources used:American Community Survey (ACS) 5 Year Estimates (2011-2015) – California CensusTracts: https://www.census.gov/programs-surveys/acs/American Fact Finder:https://factfinder.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=tDepartment of Housing and Community Development’s (HCD) 2016 Low-income Limits:http://www.hcd.ca.gov/housing-policy-development/housing-resourcecenter/reports/state/inc2k16.pdfAB 1550 identifies Low-income households or communities according to thedefinitions below:(1) “Low-income households” are those with household incomes at or below80 percent of the statewide median income or with household incomes at orbelow the threshold designated as low-income by the Department of Housingand Community Development’s (HCD) State Income Limits adopted pursuantto Section 50093.(2) “Low-income communities” are census tracts with median householdincomes at or below 80 percent of the statewide median income or withmedian household incomes at or below the threshold designated as lowincome by HCD’s State Income Limits adopted pursuant to Section 50093.Since (1) applies to individual households, it cannot be mapped. Eachhousehold will have to be evaluated on an individual basis to see if it qualifies as“Low-income” by either definition defined in (1).Two different definitions of a “Low-income community” are provided in (2);one that relies on statewide median household income and one that uses adefinition of low-income per HCD’s State Income Limits. In order to fully map theareas designated by (2), both definitions of low-income communities must beconsidered.Low-income Community based on the Statewide Median Household IncomeFor the first definition based on the statewide median household income,the median household income of each census tract was determined from the2011-2015 ACS data (B19013e1). The statewide median household incomefrom American Fact Finder 2011-2015 was found to be $61,818. Based on thisdata, any census tract with a median household income at or below 80 percent of$61,818 (i.e., $49,454) was identified as low-income.Low-income Community based on HCD’s Low-income LimitsThe second definition is based on the threshold designated as low-incomeby the HCD’s State Income Limits. The HCD State Income Limits vary byhousehold size for each county and provide income thresholds for “ExtremelyLow”, ”Very Low”, “Low”, “Median” and “Moderate” income categories. AB 1550refers to the “Low” income thresholds within this dataset.To translate the county-level “Low-income” limit from this dataset to define“low-income” at the census tract level, the average household size for eachcensus tract was derived from the 2011- 2015 ACS data (B25010), rounding tothe nearest whole number. The average household size of each census tractcounty combination was then used to determine the appropriate “Low-income”limit from HCD’s State Income Limits table. The median household income foreach census tract was also determined using the 2011-2015 ACS data (B19013),which was then compared to the appropriate HCD Low-income limit. If themedian household income for a census tract-county combination was equal to orless than the appropriate HCD Low-income Limit, the census tract was definedas “low-income” for the purposes of AB 1550.Figure 1 below illustrates this process visually and provides the steps thatwere followed. Census tracts identified by either definition were then combined tocreate the final list of AB 1550 Low-income community census tracts.Figure 1 – Method for defining low-income community based on HCD Income Limits.Process for identifying low-income census tracts using HCD’s Income Limits1. Determine median household income of census tract.2. Determine average household size of census tract.3. Identify county of census tract.4. Use county and household size of census tract to match the income limitidentified as “low-income” in HCD’s State Income Limits for the county.5. A census tract is identified as low-income if the census tract’s medianhousehold income is at or below the appropriate HCD low- income limit.

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Copyright Text: Downloaded from California Air Resources Board website: https://ww3.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestments.htm

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