HomeMy WebLinkAboutDOCUMENTS DISTRIBUTED BY PUBLICBuilding Industry Association of Southern California, Inc
ORANGE COUNTY CHAPTER
June 5, 2018
Mayor Al Murray I QECEPYED
City of Tustin
3000 Centennial Way JUN 0 5 2018
Tustin, CA 92780
TUSTIN
Re: Tustin Inclusionary Zoning Policy — Oppose
Dear Mayor Murray,
On behalf of the Building Industry Association of Orange County, please note our
continued opposition to Item 8: The Inclusionary Zoning Housing Tax. As
you recall from the April 17, 2018 Council hearing, the Business and
Development Community stand together in opposition to this taxation on housing,
regardless of the moniker assigned.
Although it didn't occur until after the ordinance was passed, BIA/OC appreciates
the opportunity that was finally given to meet with Council and Staff. At that
meeting on May 8, 2018, BIA/OC offered five revisions that would reduce the
harmful impacts of this ordinance.
Tonight, you are discussing only one of those proposed changes. Specifically,
you are taking an amendment that limits future Council's ability to charge a fee
to administer the tax on development. While this is appreciated, this language
should not have been included in the original version of the Ordinance and calls
into question all that was approved on April 17'.
As our comments have been put on file at every Planning and Council hearing on
this matter, this letter stands as yet another reminder that Inclusionary Zoning is
a tax on housing that will reduce supply and harm your residents. The litany of
issues raised by the Business and Development Community have not been
addressed at any point in this approval process and it is over our strong objection
that this policy is proceeding.
We ask you take time to review your recent vote and reverse course. All parties
stand ready to assist the City but a tax and spend approach is not the path forward.
Thank you for your thoughtful consideration
Respectfully,
Steven C. LaMotte
Chapter Executive Officer
06
BIH
PRESIDENT
MIKE GARTLAN
KB HOME
VICE PRESIDENT
RICK WOOD
TRI POINTE HOMES
TREASURER/SECRETARY
SUNTI KUMJIM
MBK HOMES
IMMEDIATE PAST PRESIDENT
PHIL BODEM
MERITAGE HOMES
TRADE CONTRACTOR V.P.
ALAN BOUDREAU
BOUDREAU PIPELINE
CORPORATION
ASSOCIATE VICE PRESIDENT
MARK HIMMELSTEIN
NEWMEYER & DILLION, LLP
MEMBER -AT -LARGE
PETER VANEK
FOREMOST COMPANIES
MEMBER -AT -LARGE
SEAN MATSLER
MANATT, PHELPS & PHILLIPS, LLP
EXECUTIVE OFFICER
STEVE LA MOTTE
ORANGE COUNTY REALTORS°
June 5, 2018
The Honorable Al Murray
City of Tustin
3000 Centennial Way
Tustin, CA 92780
Re: Tustin Inclusionary Zoning Policy— Oppose
Dear Mayor Murray,
JUN 0 5 2018
On behalf of the Orange County REALTORS®, I write to oppose inclusionary zoning in the city of
Tustin.
For the month of May, the median home price in Tustin was $692,500. That is right near the
County average which is at $725,000. To put that in perspective, with 10% (the nations
average), a family would need to make about $165,000 a year to afford a median priced home
in this city. There is clearly a huge problem, inclusionary zoning, however, is not the solution.
According to the Reason Public Policy Institute, in the San Francisco Bay area from 2003 to
2007, new home construction dropped by an average of 30% and prices rose by an average of
8% in the first year after an inclusionary zoning ordinance was passed. You might get more
affordable units, but if overall production drops and prices rise, it only exacerbates the
problem. What this equates to is a tax on homeowners and renters, because the cost is simply
passed on to them.
Please oppose this dangerous policy. Thank you for your consideration.
Tony Capitelli
Government Affairs Director
Orange County REALTORS®