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HomeAid Orange County 24 Executive Park, Suite 100, Irvine, CA 92614 949.553.9510 I info@homeaidoc.org I EIN. 33-0568079 April 17, 2018 City of Tustin City Council Members 3000 Centennial Way RECEIVED AT THE TUSTIN CITY COUNCIL MEETING APR 17 2018 Tustin, CA 92780 CITY CLERK'S OFFICE RE: April 17, 2018 Item #10: Inclusionary Housing Policy and In -lieu Fee Dear Mayor Murray and Council members: HomeAid Orange County was established in 1989 by the Building Industry Association of Southern California, Orange County Chapter. HomeAid's mission is to end homelessness through the development of housing, community service and advocacy. HomeAid is the only community-based organization that has invested more than $36 million of charitable contributions primarily from the residential building industry to successfully complete 62 new building and renovation development projects throughout Orange County. Each of these projects crosses the entire homeless Continuum of Care spectrum, providing facilities that range from emergency shelters to transitional/bridge housing (including The Village of Hope in Tustin) and to permanent supportive housing. These projects have successfully transformed more than 60,000 lives in this time. HomeAid is in full support of the further development of affordable housing throughout the County of Orange, including the development of much-needed permanent supportive housing and other key gaps in the Continuum of Care. In that regard, we are encouraged by the work that has occurred and will occur in the City of Tustin. However, it is our request today that you continue Item number 10 and work further on the development of Tustin's Inclusionary Housing Policy and In -lieu fees to ensure that there is a full and thorough understanding of the full impact of this policy through study sessions and group involvement. By working with all stakeholders in the community to develop a fair and equitable policy, we can address the housing affordability crisis and the need for housing for everyone in our community. Respectf t,r Sco I ahson Executive Director PA(IFI( WEST ASSOCIATION OF REALTORS° 1601 East Orangewood Avenue, Anaheim, (A 92805 1 TEL: (714) 245-5500 1 FAX: (714) 245-5549 March 23, 2018 Mayor Al Murray 300 Centennial Way Tustin, CA 92780 Re: Inclusionary Zoning Dear Mayor Murray: CEI1lED qT TH CIU ME�(�G CITY COUNCIL. CTS CLEWS OFFICE The purpose of this letter is to inform you that the Pacific West Association of REALTORS® opposes rent control and mandatory Inclusionary Zoning (IZ). We respectfully request that Tustin not adopt either idea. California is facing a severe lack of housing to meet current and future demand. The state Housing and Community Development Department reports 18o,000 new homes should be built annually to keep up with demand, but on average about 8o,000 are being built. This lack of housing has made the dream of home ownership unattainable for much of Orange County's workforce and younger population. Our association believes new housing should generally be supported as a means of addressing this shortage, with the added benefit that such construction activity will create jobs and associated economic activity. Housing unaffordability is impacting people of all ages and income levels, so we understand the desire of city governments to enact policies that address this crisis. We would generally recommend cities zone for added housing, as well as streamline the housing approval process. Policies that discourage the supply of housing such as rent control and IZ may be well intentioned, but they do more harm than good. A study of the IZ policies in the San Francisco area concluded that it generated little affordable housing, it was exceedingly costly, it placed significant burdens on the market -rate homebuyers, it prevented the accumulation of equity, and it diminished government revenues. We look forward to working with you on addressing the housing needs of our region. Please do not hesitate to contact us if we may be of service. Sincerely, Tim Shaw Government Affairs Director Lk, I List of Cities and Counties who are opposing SB54 Los Alamitos Huntington beach Aliso Viejo Mission Viejo Fountain Valley Orange Hesperia Westminster Yorba Linda Escondido RECEIVED AT THE TUSTIN CITY COUNCIL MEETING APR 17 2018 Newport Beach I cr-y CLERK'S OFFICE San Juan Capistrano Barstow County of Orange County of San Diego Opted out before it was made into CAW Tulare Feb. 2017 Kern County Feb. 2017 Shasta County Feb. 2017 Tehama County Feb. 2017 Siskiyou County Feb. 2017 VOTING TODAY AND TONIGHT Lake Forest, Laguna Niguel, Dana Point, and Beaumont CITY OF HUNTINGTON BEACH City Council Interoffice Communication To: Honorable City Council Members From: Erik Peterson, Mayor Pro Te Mike Posey, Mayor Date: March 26, 2018 Subject: CITY COUNCIL MEMBER ITEM FOR THE APRIL 2, CITY COUNCIL MEETING — CHALLENGE TO SB54 STATEMENT OF ISSUE: The State of California enacted SB54. It became law this year. It is, essentially, the State's effort to codify a "no cooperation law" with the Federal Immigration efforts. The problem is, like with so many other recent State laws, it is un -Constitutionally overreaching. Setting aside any Immigration policy arguments or debate, SB54 is simply a State overreach of local control. There are provisions of this new State law for instance that prevent local municipalities from taking certain action and preventing local municipalities from spending their own general fund monies in certain law enforcement ways. As a City, we should fight all efforts meant to encumber our local law enforcement. This is an un -Constitutional overreach in so many ways, especially for Charter Cities like Huntington Beach. RECOMMENDED ACTION: Authorize the City Attorney to prepare and file a lawsuit against the State and Attorney General challenging the legality of SB54 on Constitutional grounds to preserve our right and ability in Huntington Beach to continue to exercise local control. Additionally, allow the City Attorney to work with the County or other municipalities that wish to join our efforts. Xc.. Fred Wilson, City Manager Lori Ann Farrell Harrison, Assistant City Manager Robin Estanislau, City Clerk Michael Gates, City Attorney BOBBY MCDONALD ORANGE COUNTY VETERANS ADVISORY COUNCIL SUPPORT DAN YOUNG SUPPORT MATTHEW BUCK, CA APARTMENT ASSOCIATION OPPOSE JACOB SMITH OPPOSE STEVE KALLER, CEO ULTIMATE NEW HOME SALES & MARKETING OPPOSE HERSEL ZAHAB, LAND DEVELOPMENT CONSULTANTS OPPOSE AARON MEZLAR OPPOSE JIM PARKER OPPOSE VICKI TALLEY OPPOSE MATT MAEHARA OPPOSE GRETCHEN FUOG OPPOSE CERBETT ZEAL OPPOSE ERIC HIGUCHI OPPOSE RYAN WHITE OPPOSE WENDY BUCKNUM OPPOSE THOMAS GABLE OPPOSE MIKE GARTLAN STEVEN LAMOTTE, SIA OPPOSE OPPOSE CESAR COVARRU BIAS, KENNEDY COMMISSION SUPPORT Rabe, Erica From: Sent: To: Subject: Begin forwarded message: Murray, Al Tuesday, April 17, 2018 4:15 AM Mabe, Erica Fwd: Affordable Housing Incentive Program From: Bobby McDonald <ibdmac13� aol.com> Date: April 16, 2018 at 10:58:59 PM. PDT To: Al Murray Subject: Re: Affordable Housing Incentive Program Good evening Al— As Chair of the Orange County Veterans Advisory Council, We totally support and encourage The City of Tustin's proposed Affordable Housing Incentive Program. It is a very significant step to help secure opportunities to eradicate homelessness. Any step to help veterans and our homeless community will increase positive outcomes and encourage avenues of creativity for additional resources. Thank you for taking a proactive approach and introducing this ordinance, more importantly, championing affordable housing for veterans and their families. Ready and Forward, 10th Cavalry Buffalo Soldier Motto Bobby McDonald OCVAC Chair Sent from my iPad Rabe, Erica From: Craig, Jerry Sent: Friday, April 13, 2018 3:25 PM To: Rabe, Erica; Woodward, Carrie Subject: FW: City of Tustin Inclusionary Housing Policy Erica, Please make sure this email from Dan Young is distributed to the Council on the 17". Thank you. From: Daniel Young[mailto:dyoung@caminoenterprises.com] Sent: Saturday, March 24, 2018 3:17 PM To: Craig, Jerry <JCraig@tustinca.org> Subject: Re: City of Tustin Inclusionary Housing Policy H i Jerry Can you please indicate forthe record on March 27 my strong support for the proposed action/policy . We need to solve this problem now ! Thanks Dan Young Sent from my iPad On Mar 21, 2018, at 5:06 PM, Craig, Jerry <JCraig@tustinca.org> wrote: Dan, I spoke with you after the ACC -OC Permanent Supportive Housing for the Homeless meeting on Thursday, February 15`h in Irvine. I indicated to you that we had brought a draft Inclusionary Housing Policy to our PlanOng Commission on Tuesday, February 13th and, after hearing from BIA, OCBC and realtors, the Planning Commission continued the meeting. It is now scheduled for this Tuesday, March 27th. In response to our Planning Commission and in attempting to respond to BIA's Housing Futures Initiative recommendations, we revised the policy to only apply to residential development and mixed- use residential developments that request 1) a rezone from commercial or industrial to residential, 2) changing the property's zoning designation from lower -density to higher -density, or 3) residential units for a commercially -zoned retail property. One of their recommendations was to Modernize Zoning, which is what we believe we are doing. I sent the revised Policy to BIA and they are still in opposition. When you and I spoke, you indicated support for Inclusionary Housing. I am hoping that after you read our Policy, you still feel the same. If you do, I don't expect you to come to our Commission meeting but it would be great to read into the record a letter or e-mail from you supporting our Policy. Thank you for your time and consideration!! Jerry Craig Deputy Director of Economic Development City of Tustin 714.573.3121 office 657.234.7515 cell (new numbet) www.tustinca.ora "Grow Strong, Come to Tustin" California Apartment Association Orange County 23436 Madero Road, Suite 240 Mission Viejo, CA 92691 949.955.3695 . caanet.org April 16, 2018 The Honorable Al Murray City of Tustin 3000 Centennial Way Tustin, CA 92780 Re: Item #10 - Ordinance No. 1491, Inclusionary Housing Policy Dear Mayor and City Council Members: The California Apartment Association, Orange County Division, represents more than 100,000 units throughout Orange County. On behalf of my members, I write you to express our opposition to Inclusionary Zoning. We are in the midst of a housing crisis in California, with the .situation growing more serious each passing day. Studies show that the State needs more than 180,000 new units per year and at best we are producing 80,000. This has caused a cascading spike in home prices across the region. Inclusionary Zoning poses a serious risk to a much-needed increase in the housing supply, not only in Tustin, but beyond. Also, please know that city staff has failed to engage private sector resources on this matter—even when directed to do so by Planning Commission in its first public hearing. As a `best practice' I highly advise you to direct city staff to utilize the expertise within the housing industry on this matter. Thank you. Sincerely, Matthew Buck Vice President of Public Affairs California Apartment Association Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:12 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: Inclusionary Zoning Sent to the whole City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Jake Smith[mailto:jaketsmith1980@gmail.com] Sent: Tuesday, April 17, 2018 7:31 AM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: inclusionary Zoning Mayor Murray, My name is Jacob Smith and 1 am strongly opposed to Inclusionary zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. Sincerely, Jacob Smith Rabe, Erica From: Sent: To: Cc: Subject: Sent to the whole City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 Blankenhorn, Regina Tuesday, April 17, 2018 10:12 AM Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Rabe, Erica FW: Inclusionairy Zoning From: Steve Kaller [mailto:srk@unhs.com] Sent: Monday, April 16, 2018 8:57 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Inclusionairy Zoning Mayor Murray, My name is Steve Kaller and I am strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. My company represented Prospect Village by Pelican Properties. 1 hope you agree Prospect Village is a benefit to Tustin and is a true timeless legacy community. Inclusionary Zoning would make it impractical to build this fine community today. Is that what Tustin really wants and needs? Sincerely, Steve Kaller Steven Kaller ! CBO & President Ultimate New Home Sales & Marketing, Inc. X, ` '4 NEW HOME SALES S. MARKETING. INC. Office: (714) 632-7444 ext. 15 1 Cell: (714) 749-4888 1 Fax: (714) 632-9985 Email: srk unhs.com j www.unhs.com Corporate Office: 1205 N. Tustin Ave. Anaheim, CA 92807 CA BRE: #00695979 f o ire Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:13 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: New Zoning Sent to City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Hersel Zahab fma'iito:Hzahab@ldc-ce.com] Sent: Monday, April 16, 2018 4:52 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: New Zoning Mayor Murray, My name is _Hersel M. Zahab and I am strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. Please reconsider your vote for adopting Inclusionary Zoning. Thanks, Hersel M. Zahab, P.E. Principal (714) 557-7700 ext. 106 Fax (714) 557-7707 CONSULTANTS 1520 Brookhollow Dr., Ste 33 Santa Ana, CA 92705 www.scldcinc.com Click below for office location: https://goo. gl/mal)s/fhizG The information and any files attached to this email are confidential and property of Land Development Consultants and intended solely for the use of the individual or entity to whom they are addressed. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are not authorized to peruse and must not disclose, copy, distribute, or retain this message or any part thereof. If you have received this message in error please contact us at once, so that we may take the appropriate action and avoid troubling you further. Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:14 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: Inclusionary housing Sent to City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 -----Original Message ----- From: Aaron Melzer [mailto:aaronjmelzer@gmai[.com] Sent: Monday, April 16, 2018 4:33 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Inclusionary housing Mayor Murray, My name is Aaron Melzer and I oppose this inclusionary housing policy that is being voted on tomorrow 4/17. The housing crisis had already reached a very dire state in California and this policy will only inflate the issue. Sincerely, Aaron Melzer Sent from my iPhone Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:15 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: Opposed to Inclusionary Zoning in Tustin Sent to City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Jim Parker [mailto:jim.parker@idsgi.comJ Sent: Monday, April 16, 2018 4:21 PM To: CITY COUNCIL <Ci►YCOUNCIL@tustinca.org> Subject: Opposed to Inclusionary Zoning in Tustin Mayor Murray, My Name is Jim Parker, thank you for opening this email. You may not recall but we've met on several occasions at civic and related functions through the years and I have always appreciated your accessibility to your constituents and other concerned citizens. I am contacting you today to express my opinion as a private citizen and not to convey the views of my employer. am strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. Thank you for your time and consideration. Jim Parker Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:15 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: Opposition to Inclusionary Zoning Sent to City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Vickie Talley [malito:vickie@talleyassoc.coml Sent: Monday, April 16, 2018 4:18 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Cc: Peter Herzog <peter@talleyassoc.com>; Rob Evans <rob@talleyassoc.com>; Devin Pinedo <dpinedo@talleyassoc.com> Subject: Opposition to Inclusionary Zoning Mayor Murray and Members of the City Council, I am writing on behalf of the over 1,000 members of the Southern California Chapter of NAIOP, the Commercial Real Estate Association. Our members own and develop the office, industrial and other commercial buildings where the residents of Tustin work. Housing within your community is important to us and the workers we employ. It is our understanding that you are considering imposing inclusionary zoning regulations on housing development. Unfortunately, adding fees and regulations such as inclusionary zoning fees result in increasing the cost of housing for all homebuyers, which seems to be counter productive. Affordable workforce housing is important. The way to encourage this type of housing is to reduce fees and regulations, streamline of the entitlement processes and, perhaps, allow higher density development. We urge you to not adopt inclusionary zoning regulations. Respectfully, Vickie Talley Director of Legislative Affairs Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 14:16 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: Inclusionary Zoning Sent to City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Maehara, Matt[mailto:Matt.Maehara@meritagehomes.com] Sent: Monday, April 16, 2018 4:08 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Inclusionary Zoning Mayor Murray, My name is Matt Maehara and I am strongly opposed to Inclusionary Zoning in Tustin. As a potential home buyer looking for property in Tustin, I ask that you consider the housing shortage plaguing our economy. Please give me an opportunity to buy a new home in Tustin. Sincerely, Matt Maehara Matt Maehara I Asst. Forward Planner MLC Hol al n s, Inc, 1401 Dove Street, Suite 640 Newport Beach, CA 92660 O: 949-372-3310 C: 714-397-6461 matt.maehara@mlcholdings.net Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:16 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: Opposition to Inclusionary Zoning Sent to City Council, Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Gretchen Fuog [mailto:gkf@unhs.comj Sent: Monday, April 16, 2018 4:05 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Opposition to Inclusionary Zoning Mayor Murray, My name is Gretchen Fuog and I am strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. Sincerely, Gretchen Fuog Gretchen Fuog ! Executive Assistant to Steven Kaller, President / Marketing Coordinator Ultimate New Home Sales & Marketing, Inc. Office: (714) 632-7444 ext. 13 I Cell: (714) 315-6645 I Fax: (714) 632-9985 gkfPunhs.com l www.UltimateNewHomeSales.com Corporate Office: 1205 N. Tustin Ave. Anaheim, CA 92807 E All information in this communication, including attachments, is strictly confidential and intended solely for delivery to and authorized use by the addressee(s) identified above, and may contain privileged, confidential information entitled to protection and exempt from disclosure under state law. If you are not the intended recipient, please take notice that any use, distribution or copying of this communication, and any action taken or omitted in reliance upon this transmission, is urautharized by the sender and wily be considered unlawful. If you have received this communication in error, please notify the sender and delete this communication from your computer, 1 Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:17 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica Subject: FW: strongly opposed to Inclusionary Sent to City Council, Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Leal, Cerbett [mailto:Cerbett.Leal@mlcholdings.net] Sent: Monday, April 16, 2018 4:01 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: strongly opposed to Inclusionary Mayor Murray, My name is Cerbett Leal and I am strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. Thank you, Cerbett Leal I Contracts yvpq MLC Holdings, Inc. 1401 Dove St. Suite 640 Newport Beach, CA 92660 cerbett.leal(@mlcholdinas.net www.mlcholdin95.net o: (949) 372-3313 "PLEASE NOTE" On Friday, May 11, 2018 we will move to a new location: 5 Peters Canyon Road, Ste 310 Irvine, CA 92606 Rare, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:22 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry Cc: Rabe, Erica; Binsack, Elizabeth Subject: FW: Public Comment - Ord. 1491 - Inclusionary Zoning To the whole City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Eric Higuchi [mailto:ehiguchi@gmail.com] Sent: Tuesday, April 17, 2018 9:39 AM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Public Comment - Ord. 1491- Inclusionary Zoning Mayor Murray and Members of the Tustin City Council, As a resident and homeowner in the City of Tustin, l am writing to voice my strong opposition to proposed Ordinance No. 1491 Inclusionary Zoning Policy and In -Lieu Fee. • This ordinance will immediately disincentive and chill needed residential development in the contemplated Red Hill Avenue Specific Plan and contemplated Downtown Commercial Core Specific plan. The City should not be jeopardizing the immediate need for economic redevelopment in these critical commercial corridors for a few affordable units that may or may not come to fruition over the long term. This ordinance, to my confusion, has been aggressively pushed forward by City Staff. o City Staff took it upon themselves to solicit a positive endorsement from Gary Hunt, a real estate developer. This correspondence, although disclosed during the April 10th planning Commission hearing has not been provided to the public. o The staff report does not acknowledge that the Planning Commission voted to deny recommendation of approval of the Ordinance. o Staff, in spite of pleas from the business community and a resident like myself, has not reached out to the public for input. This important ordinance is being crafted behind closed doors and fast tracked. Staff stated that the in -lieu fees may be directed towards administering the exiting and occupied for -sale, affordable housing units. In my opinion, this would be an inappropriate use of the in - lieu funds. o Staff stated that an in place inclusionary zoning policy could be used as a defense, like Irvine had, in the event the County were to attempt to establish a homeless shelter within Tustin. This would be a morally dubious justification for implementation of an inclusionary zoning policy. o The audio and video of the April 10th Planning Commission hearing was not recorded (apparently the first AN error for a Tustin public hearing in over a decade) and my public comments were not accurately memorialized in the minutes. Our City has been a leader in the fight to end homelessness and has effectively Ieveraged Tustin Legacy to provide quality affordable housing and shelter for the homeless using market based policies and private sector resources. This action is not right for Tustin, and it's not right for the individuals who have been priced out of the housing market. If anything, for the sake of the public disclosure process and good governrnent, please consider deferring action on the ordinance in order to seek input from residents and the business community. Regards, Eric Higuchi Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 10:26 AM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Craig, Jerry; Binsack, Elizabeth Cc: Rabe, Erica Subject: FW: Inclusionalry Zoning in Tustin Sent to City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Ryan White[mailto:ryan.white@dahlingroup.com] Sent: Tuesday, April 17, 2018 10:22 AM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Inclusionalry Zoning in Tustin Mayor Murray, My name is Ryan White and I am a resident of Tustin who is strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that will chill development and make housing more expensive for everyone. I was able to attend one of the past council meetings a couple months ago to speak in person on this issue, but unfortunately will not be able to attend tonight. I wanted to write this email to reiterate what I said when able to attend and speak in person. In DAHLIN's experience in working with Market Rate Builders, the majority of the time when they have been forced to include affordable housing in their projects due to Inclusionary Zoning, they do not put forward the best effort in building those homes. The design esthetic of those homes are not built with the pride and effort they put into their market rate homes. When we have worked with builders such as ,Jamboree Housing that specialize in Affordable Housing, they take tremendous pride in building affordable homes. They also have the expertise to find the proper funding to assure they are building an affordable home that the families who live in them can be proud of. We need a policy that is better suited to engage builders who specialize in Affordable Housing and take pride in building this particular type of housing. Don't you also want to be able to approve projects that have made the best effort possible to create quality housing for all project types and make Tustin a better overall community? Please reconsider the proposed Inclusionary Zoning Policy. As a member of the BIAIOC Board of Directors, I would be more than happy to be part of a team that could collaborate with the City of Tustin and come up with a better solution to create more affordable housing, Sincerely, RYAN WHITE Senior Associate 1 Senior Designer OAHLIN GROUP ARCHITECTURE I PLANNING 18818 Teller Avenue, Suite 260 Imine, California 92612 USA +1-949-250-6644 direct www.dahlingroui3.com PASSION FOR PLACE Rabe, Erica From: Blankenhom, Regina Sent: Tuesday, April 17, 2018 3:09 PM To: Parker, Jeffrey C.; West, Matt, Kendig, David; Binsack, Elizabeth; Craig, Jerry Cc: Rabe, Erica Subject: FW: Inclusionary Zoning -Tustin Sent to the whole City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Wendy Bucknum [mailto:wendy.bucknum@gmail.com] Sent: Tuesday, April 17, 2D18 2:40 PM To: CITY COUNCIL<CITYCOUNCIL@tustinca.org> Subject: Inclusionary Zoning - Tustin Good Afternoon Honorable Mayor Murray and Esteemed Councilmembers, As you know, my company works closely with many home builders who are attempting to provide affordable workforce housing that is market driven. I have concerns with your proposal for Inclusionary Zoning. I am concerned about this taxation on housing in that it will chill development and make the housing for expensive for those in our local workforce that need it most. Further, I feel this sets a bad precedent and will have an impact on the region. Please do not vote for this measure, but consider another approach to meet your end goal by working with the building industry to find a reasonable solution. Kind Regards and Respectfully, Wendy Bucknum Pointe H 0 hi E S THINK RENEW INSPIRE April 17, 2018 Mr. A[ Murray, Mayor City of Tustin 300 Centennial Way Tustin, CA 92780 amurray@tustinca.org Mayor Murray, My name is Tom Grable and I am strongly opposed to Inclusionary Zoning in the city of Tustin. As you know, California's housing market is one of the most expensive markets in the nation. At a time when the homebuilding industry is attempting to create different and unique developments to fulfill the need for housing, as well as more affordable single and multi -family options, this is a tax on housing that will stall new development. We take the issue of affordable housing very seriously, but do not feel Inclusionary Zoning is the solution to this important issue. We appreciate your consideration on this matter. Sincerely, Thomas G. Grable Division President—Southern California TRI Pointe Homes Cc: citycouncii@tustinca.00r 5 Peters Canyon Road. Suite 100, Irvine, CA 92606 0 p. 949.478.8600 • IF. 949.438.1401 0 TriPointeHomesxom Rabe, Erica From: Blankenhorn, Regina Sent: Tuesday, April 17, 2018 5:18 PM To: Parker, Jeffrey C.; West, Matt; Kendig, David; Binsack, Elizabeth; Craig, Jerry Cc: Rabe, Erica Subject: FW: Inclusionary Zoning Sent to the City Council. Cordially, Regina M. Blankenhorn Direct: 714-573-3012 From: Mike Gartlan [mailto:mike.gartian@cox.net] Sent: Tuesday, April 17, 2018 4:20 PM To: CITY COUNCIL <CITYCOUNCIL@tustinca.org> Subject: Inclusionary Zoning Mayor Murray, My name is Mike Gartlan and I am strongly opposed to Inclusionary Zoning in Tustin. This is a tax on housing that has not yet been fully vetted. Sincerely, Mike Gartlan President, BIAOC 1 April 17, 20I8 Mayor Al Murray City of Tustin 3000 Centennial Way Tustin, 'CA 92780 BILID 13119 _. F O,tf NO Re; Tustin Inclusionary Zoning Policy – Oppose Dear Mayor Murray, The Orange County Chapter of the Building Industry Association of Southern California, the (BIA), is anon -profit trade association of nearly 1;200 companies employing over 100,D00 people affiliated with building and development. The Building Industry Legal Defense Foundation (BILD) is a non-profit mutual benefit corporation and a wholly -controlled affiliate of BIASC. The purposes of BILD are, in part, to initiate or support litigation or agency action designed to improve the business climate for the building industry and to monitor and involve itself in government regulation critical to the industry. Together, we are deeply concerned by the staff proposal for an Inclusionary Zoning Policy and fee as presented by the City of Tustin at the February 13, 2018 Planning Commission Hearing; at the March 27, 2018 Planning Commission Hearings and now at the April 17, 2018 City Council Meeting. While the policy itself stands as a regressive tax on housing, several other concerns merit consideration prior to any Council discussion of the topic, First and foremost amongst these concerns is the failure to include any consideration for projects currently under consideration with the City. The policy, as written, provides extremely limited exceptions for projects which are essentially deemed complete and anyone in the pipeline remains exposed to the onerous provisions of the Ordinance. It is our belief that the City has arbitrarily and capriciously delayed the adoption of certain Specific Plans and the issuance of a "Notice of Completion" for certain pending project applications for months if not years. It appears this has been done to maliciously target and exploit good faith development endeavors as a means to further extract resources from a business operating within city limits. To remedy this onerous targeting of development, our organizations are jointly requesting a more extensive grandfathering provision be added to any Ordinance under consideration before the City Council. This policy should exempt from the Ordinance, projects in the pipeline that were submitted to the City as of a certain date—not only those that are "deemed completed" as is currently stated in the proposed ordinance. Our organizations are happy to discuss adequate timing provisions with Council and Staff. Letter to A. Murray Re: Oppose IZ Ordinance and Fee April 16, 2017 Page 3 of 5 Moreover, there is also no support for the City's generalized and conclusory finding that the Ordinance meets Goal 1 of the Tustin General PIan Housing Element to provide fora "variety of housing types" for all community residents. To the contrary, imposition of the Ordinance will not support a variety of housing types because, it will, in fact, reduce the supply of both affordable and market rate housing opportunities in the City through the increase in building costs and consequential upward pressure on residential rents and sales prices. Next, we believe the staff presentation lacks adequate descriptions on scope of impact. Through both Planning Commission hearings, no concrete information was shared on how many parcels will be impacted, no maps or statistics on what percentage of city lands will fall under the policy and no clarification provided on the scope of impact created by applying this Ordinance. to residential use in all Specific Plan Areas. While we understand and appreciate that revisions have occurred between the Planning Commission and the Council Hearing, the scope of impact to housing remains uncodified. This leaves the development community with more questions than answers in how this policy will impact housing opportunity in the years to come. To draft such an Ordinance, inclusive of the in -lieu fee, presented in such a manner, knowing it will result in unforeseen and dramatic fee increases on housing development, is an ill-advised approach. Failure to properly disclosed impacts, despite a, six, -week interlude between Planning Commission hearings, and now through the several weeks since the Wt hearing, undermines the City's reputation as a leader in creation of new homes. Another issue arising directly out of this concern is failure to disclose what kind of administration costs and compliance monitoring will occur. Understanding that significant in - lieu fees were detailed forpublic review on Friday, for consideration on Tuesday; little has been shared as to what percentage of those fees will be used for administrative oversight. If all such funds go directly to housing subsidy, will administrative costs be allocated out of the General Fund? Leaving such items unclear creates a.great deal of ,doubt and raises questions as to why such inquiries would not be resolved before fundamentally altering housing policy in Tustin. Failure to sufficiently detail how collected funds will be utilized violates state law governing the collection of such fees. This will also have an impact on the total number of affordable housing units that could be produced via the in4ieu fee option. Nevertheless, staff have not provided any estimates on expected yield from this fund. Rough math at the Planning Commission's second hearing showed subsidization for every unit could be $100,000 in order to make a project viable. Thus, in the Downtown Corridor Specific Plan (DCCSP) and the Red Hill Specific Plan (RHSP) areas, with 1,200 units at an in -lieu fee of $12,000, $15,000,000 (fifteen million) will be collected with an ideal production of 150 units. Other estimates believe the number of units produced will be significantly less. A $15,000,000 tax for so few units is a hard burden for any community to absorb. Letter to A. Murray Re: Oppose IZ Ordinance and Fee April 16, 2017 Page 5 of 5 What happens if the municipality requires the developer to sell 10% of these new units at below-market prices? Laws are rarely so specific, but assume that the municipality caps the price on affordable units at $125,000. The law doesn't change the cost of building. It merely changes the price the developer can legally charge for some of its new housing units. The total cost of $25 million must now be spread over 10 units, each with a maximum legal price of $125,000, and 90 units priced to cover the remaining cost. Each of the 90 "market price" units must sell for $263,889 for the developer to cover costs. Policy makers may view inclusionary zoning as a free lunch, but requiring developers to sell or rent 10% of their housing units at below-market prices to "qualified households" means charging above -market prices to everyone else. The affordable -housing requirement increases the median house price in the development by 5.5%.4 Finally, there appears to be an unyielding drive to approve this one, specific policy approach despite a litany of alternative options that will actually increase affordable housing. Taxing a product does not increase the supply. Incentivizing development through actual incentive -based programs has a proven track record as seen in multiple density -bonus projects undertaken across the region. If the City of Tustin is actually committed to increasing the affordable housing stock in the City, why not consider the proven approaches of density bonuses or other voluntary approaches? In summation, the failure to include any `grandfathering' or phased implementation provisions; failure to research best practices; failure to adequately identify the scope of the Ordinance and administration cost allocations; the fundamentally flawed logic of inclusionary zoning as a regressive tax; and the myopic drive to approve one unvetted policy option all stand joint and severally as adequate grounds for a continuance. Should the City council press forward and approve the Ordinance and consequently, the in -lieu fee, we believe there are serious legal flaws in doing so that would be grounds for a challenge to both the Ordinance and fee in court. The Building Industry has a strong working relationship with the City of Tustin and to see a policy such as this one, forcibly advanced as has been done here, undermines our shared commitment to our housing future. Please join us in working towards real solutions that will increase housing supply at all levels for the betterment of Tustin's future. encer , Steven LaMotte Chapter Exective Officer Building Industry Association of Orange County handa M. Beltran, Esq. General Counsel Building Industry Legal Defense Foundation a haps://www.%vsi.com/articies/the-high-cost-or-affordable-housing-mandates-1518479107 April 17, 2018 Mayor Ai Murray and City Council Members City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Support for Inclusionary Housing Policy and In -Lieu Fee in Tustin Dear Mayor Murray and City Council Members: www1ennedycommission,org 17701 CoWan Ave., Suite 200 lryine,_CA 92514 949 250 0909 Fax 949 263 0647 The Kennedy Commission (the Commission) is a coalition of residents and community organizations that advocates for the production of homes affordable for families earning .less than $20,000 annually in Orange County. Farmed in 2001, the Commission has been successful in partnering with Orange County jurisdictions to create effective housing policies that have led to the new construction of homes affordable to lower income working families. Ranked among the top ten least affordable metropolitan areas in the country, Orange County is suffering from an affordable housing crisis. A resident must earn at least $34.87 per hour to afford a two-bedroom apartment at a fair market rent of $1,813 a month.' As rents and the number of residents..iieeding affordable homes have continually increased, the dumber of affordable homes being built for lower income households has not kept up with the demand. An additional 109,96.5 affordable rental homes are needed to address Orange Comity's housing needs for lower income renters.z As the City moves forward in addressing the housing needs for lower income households in the City, the Commission urges the City Council to support city staff's recommendation in adopting an imeIusionary housing policy and in-lieu,fee 'for proposed residential developments that benefit financially from the City through discretionary approvals. These approvals allow land use designation changes (i.e., allowing residential uses) and up -zoning properties for increased density that developers were not previously entitled to. By approving these benefits, the City provides significant windfalls and increases the property values of developers and private owners. The City has control over land use decisions and should take this opportunity to provide development incentives for proposed residential developments in exchange for community benefits, such as the development of affordable homes for lower income households in the City. In addition, due to the dissolution of redevelopment and lack of readily available affordable housing funds and resources, inclusionary housing is an effective tool for the City to take on an active role in encouraging and incentivizing more opportunities for affordable homes. Out of Reach 20I7- The. High Cost of Housing, National Low Inoome.Housing Coalition, p.38, 2017. ' Orange County Renters in Crisis: A Call for Action, Califomia Housing Partnership Corporation, p. 1, May 2017. Working for systemic change resulting in the production of Homes affordable to Orange County's extremely low-income household Mayor Murray and City Council Members April 17, 2018 Page 2 of 3 The Need for Affordable Homes in Tustin For the 2014-2021 Housing Element planning period, the City has a Regional Housing Needs Assessment (RENA) of 283 very low-, 195 low-, 224 moderate- and 525 above moderate - income households. To date, 98 or 35% of the 283 very low-income units have been produced and 74 or 39% of the 195 low-income units have been produced; however, for the above moderate -income units, the City outperformed the RHNA need and constructed 1,046 or 199% of the 525 uriits 3 With a remaining RHNA need of 306 lower income homes, it is important the City create effective policies, such as adoptmi g the proposed inclusionary housing ordinance, to encourage the development of affordable homes for lower income households in the City. The need to increase quality affordable rental homes should be a high priority in the City. According to the City's Planning Commission report, 9,189 or 34 percent of the total number of households in Tustin are low-income households earning less than $50,000 or $24 per hour annually.' In the City, the average rent for one -bedroom was $1,787 per month while a two- bedroom rents for $2,139 per month.' This is simply out -of -reach for many lower income households, especially for those who want to live and work in the City. In order for housing to be affordable, households should not pay more than 30% of their income towards housing costs. For lower income households to not be rent burdened, their rent would be affordable at $1,250 or less.' Unfortunately, at an average rent of $1,787 per month for a one -bedroom, a low-income household will overpay and spend 43% of their income towards housing.7 For a two-bedroom, a low-income household will severely overpay and spend 51 % of their income towards housing.9 With the severe shortage of homes, especially affordable homes and low vacancy rates, it is projected that rents and housing costs will continue to rise.9 With lower wages that are not keeping up with rising rents, many renting households struggle financially to live and end up working multiple jobs to make ends meet. 10 The City estimates there are at least 3,000 overpaying renter households and significant number of those who could be one to two paychecks away from being homeless.11 The lack of affordable homes has reached a crisis point and homelessness continues to increase and is threatening the safety and public health of our communities. While the homeless encampments in the Santa Ana River bed, Santa Ana Civic Center and even the Tustin Civic Center12 has cleared out, we are still far from solving Orange County's affordable housing and homeless crisis. 3C4 of Tustin City Council Agenda, p.6, April 17, 2018. City of Tustin planning Commission Agenda Report: Ordinance No_ 1491, Inclusionary Housing, p. 3, February 13, 2018. s City of Tustin Planning Commission Agenda Report: Ordinance No. 1491, Inclusionary Housing, p. 3. February U,2018. e City or Tustin Planning Commission Agenda Report: Ordinance No_ 1491, InclusionaryHousing, p-3, February 13, 2018. 1C* OfTU5t1R Planning Commission Agenda Report: Ordinance No. 1491, Inclusionary Housing, p. 3. February 13, 2018. a city vrTuslin Planning Commission Agenda Report: Ordinance No. 1491, Inclusionary Housing, p. 4, February 13, 2QI8. 920 18 House Prices and Rents W ill Keep Growing with No End in Sight, Economists Say, The Orange County Register, January 4, 2018 1° Southern Californians Scrimp to Get By as Average Rents Hit $ISO, The Orange County Register, February i5, 2018. " City of Tustin Planning Commission Agenda Report: Ordinance No. 1491, Inclusionary Housing, p. 4, February 13, 2018. 11 Homeless at Tustin Civic Center Clear out- Most Well Before City's Deadline, The Orange County Register, August 7, 2017_ Mayor Murray and City Council Members April 17, 2018 Page 3 of 3 Inclusionar.y Housing Ordinance is Effective Contrary to concerns that implementing an inclusionary housing ordinance will "halt or chill" residential development, inclusionary housing ordinances that are implemented in other cities have been very successful in not only facilitating the development of affordable hordes but also market -rate developments. Currently, there are seven cities in Orange County that have inclusionary housing ordinances including Tustin's neighboring sister cities of Irvine, Santa Ana, Huntington Beach and Brea. While Santa Ana's ordinance has been established since 2011, the rest of the cities implemented inclusionary housing ordinances for at Ieast 15 years to well over three decades, The number of years are indicative that the inclusionary housing ordinance is successful otherwise it would have been removed by these cities. The City of Irvine in particular has been very successful in implementing the inclusionary housing ordinance. Housing costs in Irvine is among the highest in Orange County and yet even with an inclusionary housing policy, it has not "halted or chilled" development in the City. The effect is quite the opposite and there is a high interest from developers to propose residential developments in the City. It is quite evident in several areas of thecity, such as the Irvine Business Complex (IBC) and the Great Park, where residential development is booming and under construction. It is also important to note that Irvine's in -lieu fee of $16,693 per unit for all developments is significantly higher than Tustin's proposed in -lieu fee of $8,000 to $12,000 per unit.13 However, Irvine's inclusionary housing ordinance and in -lieu has not impeded residential growth in the City. In particular, the IBC has been robust and successful in residential development in the City. Since 2003,.there has been 5,630 Lints that was built and completed in the IBC. To date, there are 2,578 units under construction, 4,219 units approved and 685 units are in process in the IBC:14 Overall, in terms of upcoming affordable housing developments in Irvine, there are 276 very low-income units and 5 low-income units anticipated to be completed in Spring 2018 to 2020.1' The Commission looks forward to partnering with the City to increase affordable home opportunities for lower income housftlds in the City. Please keep us informed of any updates and meetings regarding the City's proposed inclusionary housing policy. If you have any questions, please contact me at (949) 250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director " City orTustin City Council Agcnda.� p. 4, April 17, 2018. " IBC Residential Development Status As Of: December 1, 2017, City onrvine. 's Upcoming Affordable Housing Prpiects Effective as of February 21; 2018, City of Irvine. BUSINESS 2018 house prices and rents wifl keep growing with no end in sight, .economists say Economists foresee ris160.horne }bees for at least the next year or twti, barring aril unexpechid shock to the economy. (Fie photo, the Orange County Register/SCNG) ByJEFF COLUMS jWff ollins@scng.ct m j Orange County Register PUBLISHED; January 4, 20.18a 7:00 am I UPDATED: January 7, 2019. at 6:13 prn After nearly six years of rising home prices, what s next? Will 2018 be the seventh year home prices go up? Or the year the market stalls? Will this be the year that tenants get the upper hand over landlords? Or will I rent hikes just keep coming? In other words, Mil the seller's market of the past 69 months continue in 2018? We interviewed 10 economists and reviewed nine forecasts to find an answer to that question. It can be summed up in one word. Yes. Yes, home prices and home sales are projected to keep rising In the year ahead, although the gains will be smaller. Yes, the supply of homes for sale will fail to keep pace with demand fueling more cutthroat bidding wars. And yes, rents will keep rising while apartment vacancies stay near ail -time lows. The economists all cite the same reason: "As long as the econotny keeps grow ng, that's going to give a push to the housing market," said Anil Purl, director of the woods Center for Economic Analysts and. Forecasting at Cal State Fullerton. Jerry Nickelsburg, director of the UCLAAnderson Forecast, put it this way: "When you have increases in .employment, you have increases in household formation, and that Increases demand for housing. That's what we've been seeing." To get a grip on the year ahead, we highlighted five topics: Prices, sales, mortgage rates, number of homes for sale and rent. The picture that emerges shows a market that still has more room to grow. Ultimately, we askthe question on the minds of those still seeking to buy a home but are worried they missed their chance: How long will this crazy, runaway train of a market last? Is it too late to buy a home? Here's what we learned. Home prices still rising Synopsis: • Southern Califorrila home prices are expected to rise at about the same pace as California: 4.2 percent, according to the California Association of Realtors. That would put next November's median price of an exi ting house.at about $525,000. Orange County home prices are projected to rise 5 percent to 6 percent, according to forecasts by Chapman University and Cal State Fullerton. Metrostudy, a market Intelligence and research firm, foresees a.3.2 percent gain in Orange County home prices. By comparison, Orange County house prices were up 5.9 percent in the year ending In November, according to CAR.. • Los Angeles County° home prices will rise 3.1 percent according to Metrostudy. UC Riverside's Center for Economic Forecasting and Development has a more optimistic forecast, predicting gams of 5 percent to 10 percent. CAR reported LA County house prices up 9 percent In the year ending in November. • Inland Empire home prices will rise 3.9 percent Metrmtudy predicted. UC Riverside forecast a price gain of 8.9 percent in Riverside County and 7.3 percent in San Bernardino County, with prices possibly getting back to record levels set before the 2047 housing crash. By comparison, Riverside County prices rose 8.7 percent in the year ending in November, and San Bernardino County prices rose 12 percent Home price gains will continue In the year ahead, fust not as fast as In 2017, economists said. On the one hand, rising demand and a shortage of homes far sale create upward price pressure. On the other, those are offset by an expected Increase In mortgage rates and fewer buyers who can afford today's home prices (called low affordabilib ' by economists). "It's slo. wing down," economist and former Chapman University PresidentJim Doti said of price appreciation. "The main reason is (low) affordability." Some also worry the new tax overhaul will slow home sales and sap prices. A county -by -county analysis by Moody's Analytics shows home prices in Orange, Riverside and San Bernardino counties will be at least 3.6 percent lower than where they would have been Irl 2019 without the tax law. In Los Angeles County, prices will be nearly 5 percent lower than previously expected growth rates. The National Association of Realtors projected the tax law will curtall California home price growth by nearly 1 percent. Sales flattening out Synopsis: Southern California home sales rose 2 percent to 208,250 transactions through October 2017, according to Core Logic. But 2018 sales likely will only rise about 1 percent in California and the region, Realtor forecasters said. • Orange County sales are projected to increase 2.7 percent this year, according to Chapman. • Sales forecasts were unavailable for Los Angeles, Riverside and San Bernardino counties. Sales have plateaued across the state and region, said California Association of Realtors Chief Economist Leslie Appleton -Young. Which is a bit of a mystery, given the state's robust job growth and still -low mortgage rates in 2017. "You have to wonder why aren't we seeing more sales activiry;'said Robert Kleinhenz, executive director of research at the UC Riverside Center for Economic Forecasting and Development. "The population is much bigger, and all else being equal, you would expect to see a larger number of sales." The answer to that riddle, said CAR's Appleton -Young, is a lack of inventory and prices starting to get out of reach for some. "The lack of inventory and affordability are really... keeping a W on the California housing market," Appleton Young said. "We have fewer transactions ... today than when we had 10 rhillion fewer people living in California" The nation also has become less mobile, said Richard Green, director of USC's Lusk Center for Real Estate. "That's depressing sales," he said. "I don't expect sales to go down. I don't expect them to go up either," Headwinds from rising mortgage rates Synopsis: • Interest for the benchmark, 30 -year fixed-rate mortgage will average between 4.3 percent to 4.5 percent in the year ahead, according to CAR, Chapman and CoreLogic. Mortgage rates have averaged 3.8 percent over the past three years, with just two brief periods when rates got above 4 percent. Now, eccinomi.sts say, rates are heading up again, and likely will stay above 4 percent for the coming year, Federal Reserve hikes In short-term Interest rates will directly impact adjustable-rate mortgages and home equity lines of credit, CoreLogic said. They also will drive up long-term rates, to which fixed mortgages are tied. Combined with higher prices, that translates to a 15 percent increase in monthly principal and interest payments for first-time homebuyers, said CoreLcgic Chief Economist Frank Nothaft. Buyers will have too few homes to choose from Synopsis: • With just 27,550 Southern California homes for sale, 2018 started with the lowest for -sale inventory in five years The lack of homes for sale that has plagued the region and the nation for the past five years will continue in the year ahead, Southern California's for -sale listings fell to 27,550 in December, the lowest number since the spring of 2013, according to MortsOnHousing_com. Why are there so few homes? People are staying put longer between sales —11 years, twice the 2009 average, according to CAR. Homeowners also are reluctant to sell because they can't rind another horne in which to move. Homeowners also stay put to avoid capital gains taxes or higher property taxes on a new home. Those who got mortgages when 30 -year rates averaged 3.5 percent also are "locked €n" because they don't want to give up their lower house payments. Because of the newly passed tax legislation, homeowners with home loans greater than $750,000 will stay put to keep their mortgage interest tax deductions, "For -sale inventory will stay lean because homeowners are not going to move, (and) that's going to limit the inventory that's for sale," Core Logic's Nothaft said. Renters to pay more, too Synopsis: • Orange County rents are projected to rise 3 percent to 3.6 percent in 2018, according to apartment data firm RealPage and the USC Casden Multifamily f=orecast. • Los Angeles County apartment rent will rise 3 percent, both forecasts show. • Inland Empire apartment rents will rise faster: Up 4.1 percent to 4.4 percent, accordingto the two forecasts. • Most Southern California apartments will be full. Vacancy rates in the region will be around 3.5 to 3.6 percent, accordingto RealPage. Low vacancy rates will keep apartment rents high, economists said. As long as the buildings are full and the new development fills up, that's going to allow rent growth to continue," said Greg Willett, RealPage chief economist, Rent hikes will continue so long as vacancy rates stay at 4 percent or lower, added U5C`s Green. "Most places, usually at 5 percent is when rent flattens out," he said. When will rentgo down? "We don't have that in the near-term forecast in the Southern California market" Willett said. "Usually, you're talking about recession and bigjob cuts for rents to go down" should you buy home? Synopsis: • Yes, but only if you plan to live there awhile to ride out any potential downturns. After almost six years of home -price gains, people are asking haw much longer will this trend last?]s it too lateto buy a home? Southern California single-family home prices have'risen $239,000 or 91 percent over the past 69 months, according to CAR. How much longer can this go on? How soon will prices start falling? Is it safe to buy a home today? Most economists say this bull market still has some legs, lasting a year or two more at least, if not five. "It's debatable whether we're In a bubble," said Chapman economist Doti.. "(But) is it a bubble that's about to burst? No." First, economists note the last crash was preceded by a buildup of homes sitting on the marketwithout selling. Currently, few homes stay on the market long, and as mentioned earlier, Southern California listings are at a five-year low. Demographics also could keep the housing market afloat since millennials are expected start reaching first-time homebuying ages over the nextfiveyears, CoreLogic's Nothaft said. "We have a demographic tailwind going forward," he said, So, is It a good time to buy a home? "Yeah," Doti said. "The sooner th a better. Get it while Interest rates are low. If you can afford a home, now Is a good time to buy." But there are some precautions you should take first, added USC's Green. "If you like the house, if you could afford it, and would live there five years, yes. Otherwise, no;' he said. "In the long run, you're fine. But if you have to sell (in the short term), you could be in trouble." RELATED: Who needs ex erts? Use this do -€t- oursel f local housing forecasters 4 Orange Count developments.oma nation's top_2U'master11anned' communities Sunrey✓Most say tax law wvl I chane their Maas to buy a:home His_penn€als? Hispanic mlllennials called the future of homebuying Tags: housing; Real Estate, Top Stories Breeze, top stories ivdb, TQp Storles LADN, Top.Staries LBPT, Tap Stories OCR, Tap Stories PE, Top Stories PSN, top stories W, Top stories sdvT, top stories sun, Top Stories WDN pi, -Jeff Jeff Collins Collins. more than a decade, Jeff Collins has followed housing and real estate, covering market booms INFOEtMATild busts and all aspects of the real estate Industry: He has been tracking rents and horne prices, 9122109 and has explored solutions to critical problems such as Southern California's housing shortage and blogger.mugsaffordability crisis. Before joining the Orange County Register in 1940, he covered awide range of - Photo by topics for daily newspapers in Kansas, EI Paso and Dallas, A southern California native, he studied at Leonard UC Santa Barbara and UC Irvine. He later earned a master's degree from the USC School of Ortiz, The Journalism. Orarige County Register - New mug shots of Orange County Register bloggers. V Falluw Jeff Collins @RegJeffCallins VIEW COMMENTS Join the Conversation We invite you to use our commenting platform to engage in insightful conversations about issues in our community. Although we do not pre-screen comments, we reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable to us, and to disclose any information necessary to satisfy the law, regulation, or government request. We might permanently block any user who abuses these conditions. If you see comments that you find offensive, please use the "Flag as Inappropriate" feature by hovering over the right side of the post, and pulling down on the arrow that appears. Or, contact our editors by emalling moderator@scng.com. BUSINESS Southern Californians scrimp to get by as average rents hit $1,900 Dean Musgrove,'Los Angeles Dadyr NevrjSCNG) Foufth-quarler apartment rents averaged $1,883 a month in Los Angeles County and 51,871 a month in Orange County, market tracker Reis Inc. reported recently. Renis in the region increased between 3 percent and 5.5 percent last year.. (Photo by Dean Musgrove, Los Angeles Daily News/SC.NG) By JEFF COLLINS I JeffCvllins@scng.com I Orange County Register 111.9.9 C M EM PUBLISHED: February 15, 2018 at 1:50 pm I UPDATED; February 16, 2018 at 6:24 pm A $300 rent hike threw Noemi Hernandez' finances into a tizzy in 2015, forcing the part-time cashier to apply for food stamps and curtail spending on other things. A year later, her rent went up another $160. Now, Hernandez and her parents, who share her two-bedroom apartment, are looking to move from the Ontario complex they called home for the past 18 years. Her family never eats out. They don't shop for clothes. Her father sometimes has to scrimp on medication to treat high blood pressure and diabetes. "It's out of control," Hernandez, 37, said of her family's rent, which consumes 70 percent of their take-home pay. "We have the minimum we need. We don't go anywhere. We don't go out." Hernandef situation is typical for many Southern California tenants after seven straightyears of steadily rising rents and rock -bottom vacancy rates, responses to a recent Southern California News Group online survey show. Related; California rents have rise�� to some of the nation's highest, Here's how that impacts residents Because rent is gobbling up more and rn6re of tenants' paychecks, some are working side jobs, more than 300 survey responses show. Others have eliminated entertainment and dining out. Arid in some cases, they had to cut back on food, tar repairs, dental work and even medical care, "Really, It's going to come to the point where I get two roommates or I move out of state or out of L.A ," said Burbank renter Allison Murphy, 29, a public schoolteacher and graduate student who dips Into her student loans to cover the $1,750 -a -month rent on her one -bedroom apartment. "I haven't kept some medical appointments because it's a choice between a co -pay and food;' added Gina Elliott- DiEoia, 38, of Whittier, who's 15 -year-old daughter has to share a room with her 9 -year-old because they can't afford a bigger apartment. Her husband took a second. job as a Lyft driver to ,help pay their 31,699 -a -month rent. SOUTHERN CALIFORNIA RENT 7 years of rent hikes, Los Angeles County opartrnent rents increased almost $500 a month, or 34 percent, in the last seven year's, Reis Inc, figures Southern California rent has been show. l,n Orange County, rerits increased $955 a month, while risingstead] lysince the end of 2010, In the Iflland Etilpire they`re,up $zofi,8 month. More than half figures show. ofsalatlim Californias tonants ere "rent Iatirdened,"; fneantng #ht;y ,pithd at least a third of their lncorne on rent, O.S. Cemus The Consurmer Price Iridn shows figurt?. W. Southern California rent has virtually doubted since 2000, with rent MOO 1,883 Increasing 5.1 percent in 2417 alone. r r,--'I-- Separate /" Se arate figures from market E 1,BTi irackers Re15Inc. and RealPae show 7 County ✓' apartment rents In the region rose _ between 3 percent and 5.5 percent 1,500 'LA. Coim Cy IJ E last year. . ...} �Y I I 11,29E) A more detailed breakdown by Reis 1,250 - for the fourth quarter of last year shows: inland 1,000 Los Angeles County had the region's ' highest average asking rent: $1,883 a month, up $92 frgm the fourth 750 "10 11 12 '13 '14 '15 '16 17 quarter of 2016. That's the 1 oth q Source: Reis Inc, bGNG highest asking rent among 82 big - city metro areas Reis tracks. During the past seven years, Los Angeles County tents increased $482 a month. Orange County's asking rent wasn't far behind, averaging $1,871 a month, up $70. to 11 th highest among big -city metros. O.C. apartment tenants pay an average of $355 more a month than seven years ago. Inland Empire rents averaged $1,299 a month, up $34 in a year to 26th highest among big -city metros. The average rent in Riverside and San Bernardino counties. jumped $266 a month since the end of 2010. To put that In perspective, the average far all 62 U.S. markets was $1,368 is month, slightly higher than In the Inland Empire. New York and San Francisca had the nation's highest apartment rents, averaging $3,587 and $3,627 a month, respectively. Wichita was the most affordable market; with rents averaging $602 a month. Because of low vacancy rates, Rea [Page forecasts Southern California rents will continue rising this year, Increasing by 3 percent to 4 percent in Orange CPunty and the Inland Empire, with slightly smaller gains in Los Angeles County because of new apartment construction in downtown Los.Angeles. Big jumps While rent hikes averaged from $34 to $92 a month last year, many tenants saw even bigger increases - espedally where there haven't been any rent hikes for a while. Cal tech software engineer Nathaniel Stickley, 37, decided to move closer to work! n Pasadena after rent for his Eastvale apartment jumped $300 a month to $2,150 last summer, He found a two-bedroom house for $2,200 a month but figures he's saving $100 in gasoline after cutting out the 86 - mile commute. Nonetheless, his finances are tight since his rent still is $200 more. than he was paying two years ago. "My car needs approximately $2,000 worth of repafrs and maintenance, but I can't spare that at the moment," Stickley said in an email, adding that he also had to defer payments on medical and dental bills for his family. "We've been putting things off," he said. Stickley and his wire plan to move in the next five or sixyears to Virginia, where ifs affordable to buy a house. "The rental market is going in the wrong direction. Costs are increasing faster than incomes, and new homes and apartments are not being built quickly enough," he said. AJ Moore, 56, of Long Beach doesn't begrudge his landlord for raising his rent $300 a month, saying his two-bedroom unit is still cheap at $1,695 a month. "According to (the owners), it's fair rent. It probably is," said Moore, who is cutting back on entertainment expenses. "You go on the Internet, and they're going for $1,750." No honeymoon Economists consider tenants "rent burdened" if they spend more than 30 percent of their income on housing costs. About 55 percent of Southern California renters fell into that category in 2016, U.S. Census figures show. Nationally, 45 percent of U.S, tenants Were rent burdened. For newlywedsJudy and Alex Cardoza it's even worse. About half of their take-home paygoes toward the $1,738 they pay monthly fora one -bedroom unit in Mission Viejo. And their rent is set to go up to $1,803 when their lease expires in March. "We are actually looking to find a cheaper place," said Judy, 34, who works part time as a contract archaeologist at construction sites. Alex, 33, works full time as a construction sail technician; ra)n and fires putJudy out of work for several months, They cut back on TV, entertainment and dining out. They even had to put off their honeymoon after getting married in September. They had planned to go camping. "That never happened," Judy said. "We actually spent our wedding money on one month's rent. We're putting it off until we're in a better situation." Agood-paying job is no guarantee the rent will be affordable, A single mother of two earning $85,000 a year had to trade in her car for a cheaper model and get two side jobs as a dog walker and interior designer to afford her $2,230 -a -month rent in Rancho Mission Viejo, east of San Juan Capistrano. 5he'sjust breaking even, said the mom, who asked that her name not be used. Rent has almost doubled for Pacoima middle school teacher Allison Murphy aftershe moved out of a two-bedroom unit she shared with her ex-boyfriend. She had been paying $1,000 a month. Now her one -bedroom apartment in Burbank costs $1,750 --- $300 more than similar units in the complex fetched three years ago, she said. "It's not great, Itisn't worth $1,750," Murphy said. "And they charge crazy utility Fees, like $100 a month. It goes up in the winter because they heat the pool, and I don't use the pool. I'm a single person living in a one -bedroom, but they charge everyone the same amount for utilities." Murphy works full time while pursuing her master's degree at Cal State Northridge. She spends about 60 percent of her take-home pay on rent, 5he wouldn't have enough were it not for her student loans. So she's essentially going into debt to pay her rent, she said. Gina Elliott-Diloia and her husband, Eli, spend about half their income on their $1,699 -a -month, two-bedroom apartment in east Whittier. Now she's trying to figure out haw to pay $500 to fix her car, which recently failed a smog test. "Everything has gone up except the salary of regular working people," said Elliott-Diloia, who works as an information processing technician for the county of Orange. Her husband works part-time in the kitchen of a chain restaurant. Her son spends his days in the living room to give his teenage sister some privacy in the bedroom they share, He can't play outdoors unless he goes to a Park since management forbids running, playing ball or skateboarding in the complex. Living off food stamps After$460 in rent hikes over the past two years, Noemi Hernandez has to find a new apartment before herlease expires in May. Her mom Is a part-time housekeeper at a Holiday Inn, and her fatherworks there full time as a shuttle driver, When he can't afford to pay for his medication — one prescription costs $400 a month — his doctor sometimes provides free samples. Sometimes, he goes without his pills. Until two years ago, their rent event up annually about $30 a month. Now, it's $1,860 a month, plus $32 a month for the mandatory renter's insurance required by their (ease. "that's where all our income is going," Hernandez said. The last time Hernandez went clothes shopping was a year ago when she bought shoes for work. The family of three must live off less than $1,000 a month after paying housing costs. Hernandez' food stamps help them afford home -cooked meals, but they never eat out. "We have been looking (for a new apartment). We won't sign a new lease in May because we can't make it," Hernandez said. Hernandez found just two apartments renting for $1,400 a month, but hasn't been able to locate anything else in her area that's affordable. "Everything else is in the 51,800'5," she said. "It's expensive out here. But all our jobs are out here:' Tags: housing, Real Estate, rent, Top Stories Breeze, top storles ivdb, Top Stories LADN, Top Stories L8PT, Top Stories otic, Top Stories PE, Top Stories PSN, top stories rdf, Top Stories SGVT, tap stories sun, Top Stories WDN Jeff Collins For more than a decade, Jeff Coltins has followed housing and real estate, covering market booms and busts and all aspects of the real estate industry. He has been tracking rents and home prices, and has explored solutions to critical problems such as Southern California's housing shortage and affordability crisis. Before joining the Orange County Register in 1990, he covered a wide range of topics for daily newspapers in Kansas, El Paso and Dallas. ASouthern California native, he studied at LIC Santa Barbara and UC Irvine. He later earned a master's degree from the USC School ofJournalisrn. V Foliaw Jeff Cdlins QRegJeffCallims NEWS > CALIFORNIA NEWS Homeless at Tustin Civic Center clear out — most well before city's deadline Homeless advocate Tyron Jackson, left, helps a woman organize her belongings into plastic bags at the civic center in Tustin, GA on Monday, August 7, 2017. The city posted signs at the civic center telling people living in the horneless encampment that they must move out by 8 a.m. to make Way for a temporary library. (Photo by Ken Steinhardt, Orange County RegistedSCN.0) ,,�._-_ ,:::; .. n�,�,.� -: �_� �:��_::�,a�..,.�-__---,.:aim-,�...,,.•��-� By SUSAN CHRISTIAN GOULDING I sgoulding@scng.com j Orange County Register PUBLISHED: August 7, 2017 at 5:29 pm I UPDATED: August 9, 2017 at 7:39 am TUSTIN — By the time city workers showed up Monday morning, Aug. 7, all was quiet at the Tustin Civic Center. Only three of the 20 -plus homeless people who had setup camp there remained, but they simply walked away without argument. The few police officers who stood by made no arrests. Two weeks before, the city ordered those living in the center's courtyard to clear out by 8 a.m. to make way for a temporary library. Homeless advocate TyRon Jackson and the Orange County Rescue Mission joined forces to find them shelter— under a tight deadline. "We have been working 10 hours a day — packing up belongings, tracking down family members, driving people to shelters and doing whatever we can do to facilitate their move," said Jackson, founder of operation Warm Wishes. on Sunday, Aug. 6, Jackson made one final effort. "I did not want this to become a spectacle," he said. "I wanted them to leave with dignity." One man in particular took some convincing. "Do you really want to live in a filthy tent?" Jackson said he asked the man. "You are better than that" Not only did most of the last-minute Civic Center dwellers pull up stakes, they even swept up and tossed trash, Jackson said. "We Ieft that place cleaner than it was before," he said with a laugh. The Tustin Library closed in late March after the discovery of a slow leak in its sub -floor, which houses electrical wiring. Around that same time, what began as a handful of homeless people Iiving near the library grew to a tons;aicuops encam ment. Over the past month, residents complained at City Council meetings —bringing the contentious issue to the forefront. Tustin officials say the makeshift library is not just an excuse to remove the encampment. "The idea for a temporary library has been in the works for months," said Tustin spokeswoman Stephanie Najera. Helen Fried, librarian for Orange County Public Libraries, said the outdoor llbra rywilI open Aug. 15 underneath a canopy.The space will host such programs as story time for children and offer a scaled -dawn selection of books for checkout. An undamaged community room in the back of the library will also be used. "People have been calling constantly to ask when the library will re -open," Fried said. "It is a very laved library." The city, which leases the building to the county, is waiting for its insurer to complete an assessment before repairs can get underway, Najera said. By late Monday morning, workers had erected temporary fencing around the courtyard — now empty. To prepare the area for public use, Najera said, the Public Works Department will power -wash the concrete and sand and reseal pavers. "I lost a lot of sleep worrying about what would happen today," Najera said. "But it could rot have gone more smoothly. Everybody was cooperative." The city offered to store people's property for up to 90 days, she added. Last week, police officers helped them tag their items. in total, 15 people found shelter in just two weeks, Jackson said. Five went to OC Rescue Mission, two ofwhom qualified for its Veterans Outpost, Another 10 went to motels and shelters or moved in with family, Three suffered infections requiring hospital stays. Realistically, Jackson noted, some of those now sleeping under a roof will wind up back on the street. "This is not the end of our mission," he said. | K ! ! e ■ \ § 2, }■ ! ! ! 7 { ■� � \}!�k(k «����! ]i `!`�� !�!«! � �| ! ,,!! ■| !�»�$� �� z��.l. !$ !!|!■|! �k���. � .��,.. � ! \ ,! �� �` f! � »■ f !�� .�. . �=%2 : . .�!?\ . . � §. : �/ .� .� . � \r . � -�- \ . ~�� \:�� ��.���7\\� . � . 2 ! \ < . K� . �� }\ \?\ � 2 d \ #§ ) � - � � !�} .|! ;!! �;� •� % ) !. 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