HomeMy WebLinkAboutKennedy Commission (Item 9) ,w-Kennedy
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October 19, 2021
www.kennedycommission.org
17701 Cowan Ave.,Suite 200
Irvine,CA 92614
Mayor Clark and Councilmembers 949 250 0909
City of Tustin
300 Centennial Way
Tustin, CA 92780
RE: Item 9—Voluntary Workforce Housing Incentive Program Ordinance and In -Lieu Fee
Dear Mayor Clark and Councilmembers:
The Kennedy Commission (the Commission) is a broad-based coalition of residents and community
organizations that advocates for the production of homes affordable for families earning less than
$27,000 annually in Orange County. Formed in 2001, the Commission has been successful in
partnering and working with Orange County jurisdictions to create effective housing and land-use
policies that has led to the new construction of homes affordable to lower income working families.
During the current 5th cycle planning period the city had a total 1,227 units as the city's Regional
Housing Needs Assessment(RHNA); 283 at very low-income, 195 at low-income, 224 at moderate
and 525 at above moderate. To date,the city has approved 114 units at moderate and 1,240 at above
moderate.' At very-low income the city has approved 94 units and 74 at low-income. The city has
exceeded 5th Cycle Housing Element(5th cycle)targets for moderate and above moderate, creating
an unbalanced production of housing units. The number of moderate and above moderate units
approved in the last seven years was 7 times more than those at low and very low income.
This imbalance in housing production and lower income housing deficit in the City indicates that
the City's affordable housing policies must be strengthened to be more effective in incentivizing
and producing affordable housing for lower income households.
In addition to the current deficit in housing for lower-income households, the city will have to plan
for the allocation of new units affordable to lower-income housing households.
As the current planning period comes to an end, the 6th cycle RHNA numbers have been allocated
to jurisdictions throughout the county. The City of Tustin has been allocated 6,782 housing units,
of which 2,770 are required to be lower-income units (about 40%).
We support the city's Voluntary Workforce Housing Incentive Program Ordinance and In Lieu Fee
(Ordinance) as a tool to help create affordable housing along with incentivizing market rate
housing. To provide housing in a more balanced manner,the Commission recommends that
the city update and strengthen the Ordinance to focus its affordable housing requirements on
the production of housing for lower income segments.
We request that the Ordinance require 15% of units in homes in developments to be
affordable to extremely low-,very low-, and low-income households to truly address housing
needs not being addressed by the housing market in Tustin.We also support a robust In-Lieu
Fee option to ensure the city will have the funding needed to leverage federal and state
resources to increase affordable housing options for all residents.
' Tustin 2020 Housing Element Annual Progress Report,Table B
Page 2 of 2
The Ordinance gives significant development incentives and increased densities for market rate
development. These incentives make the land more valuable and increase development potential in
exchange for a small affordable housing contribution that helps the city make progress on ALL
housing needs. Our proposal to strengthen the Ordinance will be key to help meet the Housing
Element commitments and affordable housing goals for lower income households.
This policy should be extended to new proposed housing opportunity areas being considered in the
2021-29 Draft Housing Element. To meet housing needs and comply with No Net Loss, affordable
housing and market rate housing need to be developed together. Therefore,we urge the city to make
our proposed changes.
The Commission looks forward to partnering with the city to increase housing opportunities for
lower-income residents in Tustin. Please keep us informed of any updates and meetings regarding
strategies to increase affordable homes for lower-income households in the ci . If ou have an
questions,please feel free to contact me at
Sincerely,
Cesar Covarrubias
Executive Director