HomeMy WebLinkAboutITEM 3 SUPPLEMENTAL INFO OPPOSITION TO INCLUSIONARY HOUSING ITEM #3
Ordinance No. 1491 — Inclusionary Housi
Opposition to Inclusionary Zoning
Building Industry Association of Southern California, Inc.
ORANGE COUNTY CHAPTER Bill
Februar�,,- 1.1.
("hairt-nan lZydcr Sillitli PRESIDENT
MIKE GARTLAN
Tustin Pk_11111111(" C0111111ission
KS HOME
3000 Ceami-ni�il Way
Tustin, CA 92 17,8'() VICE PRESIDENT
RICK WOOD
TRI POINTE HOMES
Re: Item 43 - Ordinance No. 1491 Inclusionary Housing
TREAS U R EI J' S EC R ETARY
SUNTI KUMJIM
Dcar Coini-nissioners: MBK HOMES
()ii bch,al 1'()f'o Li r membership, I write to express our strong opposition to IMMEDIATE PAST PRESIDENT
110"Sionary Zoning. PHIL BODEM
1
MERIT GE HOMES
Theffilildill" In(iti-stry Association of Southern Call fon il'(,t. Oranoe ('otintv TRADE CONTRACTOR V-P
L_� It)
Chaptcr (BIA ()(') is a non-profit trade association of over 1,100 mcnibi2r ALAN BGUDREAU
BOUDREAU PIPELINE
companies ei np I()��i ng over 100,000 people In the home building industry. CORPORATION
Housino rcni,.Ains a critical Is<aic In ('alll'ornia witli tl-ie ,-,--,1wafi0n ('1rowwO niore ASSOCIATE VICE PRESIDENT
MARK HIMMELSTEIN
sei-ious witli eacli passing day. StUdics shok�' tli,,Lit Clic St'Lae needs over 180,000 NEWMEYER&DILLION.LLP
new units eacli vear and at best we are producino, 80.000. 'Hils li'Lis caused a
MB - -LAR
cascading spikcin hunk `ices across the F011011. MEPERA T
PETER VANEK GE
FOREMOST COMPANIES
this c\er-o'i'mving deficit. we Tice to llav�2 C11.1 11011CS1, C011VCFSj'_1t1(_)I1 d'_1b()L11
Z7� MEMBER-AT-LARGE
Inclus1(.)11,J1'V Zo;11,11() Policlel-1, III totfll, SUCII 11olicles 110LISI%g SEAN MAT LEI
prod uctleon,'increase err Il Cost"; ,ind ftirther coni plie ate attainability for the MANATT,PHELPS&PHILLIPS.LLP
Majority of the region. EXECUTIVE OFFICER
STEVE LA MOTTE
In a study h%- Ben,J.-Imin Pokvcll. 111i.D. and Ldw�ii-d Stringliam, Pli.D., titled,
Housing Supply antl Aobi-dabihii,: Da /-I./ ( I , dates Woi-k-9, the
.fi-n-(1a!?1c Hoiis'nu Man
scol,'ered fliat in the 45 cities wlicrc data wL-is avallable, new housing
authors di
production dr(astic',J11y dccrecascd bv an avcera cre of 31`;,() within one ycar of
�7
adopting inclusionary 110LIS1114u� Policies. Addltioiiall *! the study su,(Tgrests that
inclusiOlIfIlry housing polices c(,.iji inti- casenew housing costs bv S22.000 to
S4410W µitl higher priced niai-kct-s nicreasing by S 100,000.1
`'Lipporting these conclusions is 11 recent report from the Legislative Analyst's I
Suite 100
(X ice titled P(-,)-spccih,cs on11c1j..)ing Lovv-hicomc Califiwnians Aftbr(i Housing.
III this rcrwl. it st'-Acs tl)at "attempting to I'Idcjres� the StLate"s C-11 1,0 rd,11)11 i t\, I L614
949.b,)3.9_b00 I biaoc.com
ns on of' ovcrnilic-lit prooranis likely wo
1. 1 11 cxjl�a I LIld be
impractical," ["urtlier, that extending housinu')' -J� rne
sistance to IoNN,--income
Californ1l'ans 1,k-ho curTendy do not recelve it — cillier dirough subsidies i.'()I'
affordable units or 1-IoLisingy vouchers— would I-e(ILlire i(in annual 11111dill"
C0111111itment in the lokv tens of billions of dolkirs. -'\S SLIC11 it 1111("IS th�11
P(o.voll, Bm'a,11°°, Ph 1.) slrllm�11;1111, I& ,Ird, I'll 1) 110LI-0111P SLJJ_J)k Alld Dii Vfordableffius,1110
N4andalcs Wor;o.-." Poll,-% Institut c Ailrd_)OH4
housing programs—vouchers, rent control, and inclusionar housing—attepapt to male housing more
affordable without increasing the overall su-pply of housing. This approach cues very little to address the
undedyinp, cause of California's high housing costs: a housing shortage."'
Foundations of the policy aside, this proposal cones with no study sessions, no community group
involvement, and with no input from industry members most affected. Further,the Ordinance calls-for an
in-lieu fee option but fails to be transparent on details and costs.
Further, over its history as a city, Tustin and its leaders have been known for creating a business-ffiendly
environment and transparent government process. Juxtaposing that, the proposed ordinance does not offer
reasonable"grandfathering" options or exemptions for newly proposed projects.or those currently under
review with the City. This can create uncertainty and volatility for home builders by undermining the
financial planning assumptions upon which a project is based, making it-difficult for a business to
adequately plan.
In conclusion, we strongly encourage the Planning Commission to oppose this policy as it will
challenge/halt the production of housing in your city. we offer our time and resources in convening the
aforementioned working group and encourage a review of the six recommendations found in the dousing
Future Initiatives, included in your staff report. This document, created by the IC as an alternative
to Inclusionary Zoning, offers r solid starting points for policy creation that are ire-line with the values of
Tustin.
Thank you for your thoughtful consideration
I esp ectf ul ly,
Steven C. LaMotte
Chapter Executive Officer
Tiscareno, Vera
From Reekstin, Scott
Sent: Tuesday, February 13, 2018 12.06 PM
To: Tiscareno, Vera
Subject: FW- Planning Commission public hearing reg� ,-di -. codle ,.-.iwe,,'idni i:'7v 1, 1:11.)
signs in the public right-of-way
Froni: -Fim Shaw [mailto:Ti,mS@pwr.net]
Sent: ThurSday, February 08, 2018 10:31 AM
To: Reekstin, Scott
Subject: RE: Planning Commission public hearing regarding code amendment for temporary signs in the public right-of-
way
Scott, I will be there to speak about the sign ordinance AND Inclusionary Zoning. My association opposes mandatory
Inclusionary Zoning.
Tim Shaw
Government Affairs Director
IMWFR
Pacific West Association of REALTORS®R
1601 E.Orangewood Ave,
Anaheim,CA 92805
p.(714)221-8449
e.Tiin._I--._apwr.nct
From: Reekstin, Scott ni,a i Ito-SReeksti n(@tustinca o rg]
Sent: Thursday, February 08, 2018 9:46 AM
To: erin <erii-iL@tustificomr-nunitvfoundation.org>; tustinmuseum <tustinmuseumat net>;
Prese rve 0 U rT u stin
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<Pr-eserveOLit-TustinPoiiiall.coii,,>, r-neliot <rnp-liot@tm-tw k 12.ca Lis>; dare <dave((Z)ocaL-o n I
__ h t 2r.,>; E )�Iil SUport
<Er -iai p(DrtLD[)wr'.iiet>; altustin101 wail. ori info <infa2O,CBis.org>; perrano
<ise r ra n o LD bgct u s >; 'net>; info <info -_!tI)sf.net>; KReedy
L-,r.com>; 'Info info
<KReedy@irvinecompany.con Li i i i a I i e f, i i) -i t services.com>
<Info 2-Drescuemission.or >; kimn-i crodriguez < rod r i i)u n-0--anover
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<ChiI82cbi18.org>; vicky kj,[1�:jsvV,ay77 '_"I--ki�isway77Orn s,n,c-'_irt>- J M a rsh a I I
.IMarshall@ tCe ii'ral . r ; info inf @tustinPresbYt Tian. rg ; office <office@h etustin. m>;Jennifer
J nnifer@aum tustin. rg ; administrator administrator@stpaul . r , ; dennis<dennis@dnmpqint.com>; info
info@co rpa st stin. m ; epadilla tustin arab r.or ;Tim Shaw Tirn @Pwr.net ; ri .r artin ,o ii. om;
shaunadrumrn@gmaii.com
Binsac , Elizabeth <EBinsaqk@tustin _o ; Willl orn,Justina J iitkoam@tu tinca.or ; Wilson, David
DWi1son@tu tin a.or ; Clanton, Chad CCxanton@tu t1n a.or
Subject: Planning Commission public hearing regarding code amendment for temporary signs in the public right-of-way
Dear Stakeholder,
This email: is being sent to you, because your organization or business has been identified as
one that has expressed, or may have, an interest in temporary signs in the public right-of-way.
On February 13, 2018, at their regular meeting beginning at 7:00 p.m. in the City Council
Chamber, the Planning Commission gill be holding a public hearing and considering an
ordinance/code amendment addressing temporary signs in the public right-of-moray. A copy of
the staff report and mating agenda are attached for reference.
We encourage you to forward this email to any members of your organization who may have
an interest-in this matter. If You would like more information about the meeting or the
proposed ordinance/Code amendment, please feel free to contact me.
SCOTT REEKSTIN I PRINCIPAL CIPAL PLAINER
City of Tustin I community Development Department
300 Centennial Way I Tustin, CA 92780
P, 7'14- 573 - ; 1 1 F. 714 - 573 - 311;
http: .tustioca org
5
Tiscareno, Vera
From: Craig, Jer-r%,-
%i -04 PM
Sent: Tuesda, -oruary 13, 2018 1.
To: Tiscait---,nu, V e[-
Subject: FW- InClusinr),x-y 7oniff)
-Tills Ci-ic,7irmlly sent to C Ott Havc.
Jerry Critig
D(�]�Uly Director
it of Tustin
714.57.3.3121 office
714.615.5.')19 cell
\V vVAv'.t us t111
"Gro-LiV Stt-ong, Come to Tustin"
i k:'Ifisldcr the crivitonment before priming this
From., Tim Shaw [mqiltg:Tfl-nS2pwr.net]
Sent: Thursday, February 8, 2018 12:41 PM
To: ='O_oplksfin, Scott <SReekstii-ietListiiica.or,,,P,,>
Cc: Craig, Jerry<JCraig tustinca.org>
Subject: RF- Inclusionary Zoning
I hadn't yet, but thanks for making the connection! Obviously we stand with our friends at the building industry in
opposing mandatory inclusionary zoning. The BIA guys no doubt have lots of information on this subject, since it most
impacts.there most directly (basically rent control on new housing if you will) but the information below is a good start.
Tim Shaw
Governnient Affairs Director
FDWFR--
Pacific West Assocization of REALTORSO
1601 E.Orangewood Ave.
Anaheim,CA 92805
wwwxwrmet
p.(714j 221-8449
e.Tj oil %iv r.i i�-,t
t 4
pop
AV
,.�.�..��.-... �..,-,..,.ry�.�,,.,w...,-,,.,v. +...�,_� - ...,..-�-,o..�M.�.V �. A...-.a,--,�-,�,-4,-.�...��.,...r.-_�-•�..�..}.,,�,,x .rte From: Re k tin, Scott[mmato. a kstin9tu tin a. r ,]
Sent:Thursday, February 08.. 2018 12:37 PMI
To:Tim Shaw Tirn @Pwr.net
Craig,Jerry JCrai Rtu tin a. r
Subject: RE; Inclusionary Zoning
Hi Tim,,
-slave you reached out to Jerry Craig, the Cityps.City's. Deputy Director of Economic Development
Jerry is the one who is working on this project.
Scott
SCOTT REEKSTIN I PRINCIPAL PLANNER
City offustin I Community Development Department
300 Centennial Way I Tustin, CA 92780
P. 714- 573 - 3016 ! F.-714- 57 - 3113
http://www.tustinca.org
From:Tim Shag [rnai1to:Tim5_@.pw n t
Sent:Thursday, February 08,- of 11:46 AM
T : 1eekti n, Scott
Subject: Inclusionary Zoning
Scott, here's a little data on Inclusionary Zoning as you prepare for your Planning Commission meeting:
Since its inception, inclusionary zoning has resulted in few affordable units. The 50 Bay Area cities
with inclusionary zoning have produced fever than 7,000 affordable units. The average since 1973
is only 228 units per year. After passing an ordinance, the average city produces fever than 1
affordable units per year.
Inclusionary zoning cannot meet the area's affordable housing needs. At current rates, inclusionary
zoning will only produce 4 percent of the Association of Bay Area Governments' estimated
affordable housing need. This means inclusionary zoning will require 100 years to meet the current
five-year housing need.
2
Inclusionary zoning drives away builders, makes landowners supply less land for residential use,
and leads to less housing for homebuyers-the very problem it was instituted to address.
In the 45 cities where data is available, we find that new housing production drastically decreases
the year after-cities adopt inclusionary zoning. The average city produced 214 grits the year before
inclusionary zoning but only 147 units the year after. Thus, new construction decreases by 31
percent the year following the adoption of inclusionary zoning.
In the 33 cities with data for seven years prior and seven years following inclusionary zoning,
10,662 fever homes were produced during the seven years after the adoption of inclusionary
zoning. By artificially lowering the value of homes in those 33 cities, $6.5 billion worth of housing
was essentially destroyed.
Considering that over 30 years inclusionary zoning has only yielded 6,$36 affordable units, one
must question whether those units are worth the cost in terms of fever and higher-priced homes.
More information and supporting data available at htt r ori. r ol icy stud ou in - u I -and-affordabiri
Tim Shaw
Government Attain Director
Is
Pacific let Association of REALTORS
1601 E.Orangewood Ave.
Anaheim,CA 92805
www. wr.net
p.(7U)221-8449
.T1maRp vr.nej
Ilk
� . Ir
California Apartment Association
Or2nqp-,County
23436 Madero Road,Suite 240
Mission Viejo,CA 92691
949.95S.3695 a caanet.org
February 13, 2018
Chairman Ryder Smith
Tustin Planning Commission
3000 Centennial Way
Tustin, CA 92780
Re: Item #3 - Ordinance No. 1491, Inclusionary Housi*ng
Dear Commissioners:
The Califomia Apartment Association, Orange County Division, represents more than
100,000 units throUghOLIt Orange County. On behalf of my members, f write to
express our opposition of a mandatory Inclusionary Zoning ordinance.
We are in the midst of a housing crisis in Califor-nia, with the situation growing more
serious with each passini-Y day. Studies show that the State needs over 180,000 new units
each year and at best we are producing 80,000. This deficit has caused a cascading spike
in horne, prices across the region. Inclusionary zoning requirements pose a serious risk
to a much-needed increase in the housing supply, not only in Tustin, but beyond.
In. summary, the California Apartment Association is glad to be a part of this important
discussion on the future of housing policies in the city of Tustin. Careful and thou.0itful
dialogue is necessary to ensure that any policies that are adopted promote attainable and
diversified housing for all residents throughout the city.
Please feel free to contact me at rribuck Cc�,,caanet.org or 951-809-4423.
Sincerely,
Matthew Buck
Vice President of Public Affairs
California Apartment Association