Loading...
HomeMy WebLinkAboutExhibit 1Exhibit No. 9 OR COALITION MEMBERS BIAJOC Building Industry Association, Orange County MHET Manufactured Housing Educational Trust NAIOP National Association of Industrial and Office Properties OCAR Orange County Association of Realtors- SCAA South Coast Apartment Association 25241 Pasco de Alicia Suite 120 Laguna Hills, CA 92653 Phone: (949)380.3313 Fax: (949) 380 -3310 Website: www.ochp.org 5n120o8 Gregg Ramirez Senior Planner City of Newport Beach 3300 Newport Blvd., PO Box 1768 Newport Beach, CA 92663 Dear Senior Planner Gregg Ramirez, RECEIVED By SINNING DEPgRTME, MAY r R. Off' ®FNEWPORTBEAGN I am writing on behalf of the membership of the Orange County Housing Providers (OCHP) regarding your city's housing element update. State law mandates that all cities in California periodically update their housing elements. The intent of the mandate to update this critical planning document is to identify adequate sites throughout a jurisdiction for the future production of housing. Occasionally cities choose to include various land use policies as a part of their housing element. We strongly urge your city to avoid adding inclusionary zoning policies in your housing element as it may be cause for failure to obtai&-certification. According to a letter dated December 13, 2007 addressed to the Building Industry Association of Southern California, Orange County Chapter (BIA/OC) by the State Housing Director, Lynn Jacobs, "Local governments must analyze mandatory inclusionary policies as potential governmental constraints on housing production when adopting or updating their housing elements." - (Letter attached) Based on this opinion, adopting a draft housing element that contains inclusionary zoning policies will jeopardize your city's ability to obtain state certification. This critical policy section on constraints is referenced in the housing element checklist under: Governmental Constraints (GC 65583)(a)(4)) and Os and As pages 30-34) Since inclusionary housing policies are of least interest to the California Housing and Community Development Department as they consider whether or not to certify a housing element, they should be of least interest to your City Council. We urge the Council to focus on appropriate planning and zoning as a means to fulfill your city's housing goals. Overreaching inclusionary housing policies are incredibly controversial and have the potential to generate significant opposition. In closing, we again urge the Council to avoid the inclusionary zoning policies while updating your housing element. Failure to do so may force challenges to the entire housing element. The unintended consequences that surround inclusionary zoning constitute a need to consider this policy separate and apart from critical planning documents such as your city's housing element. Please feel free to contact us to discuss this critical issue Sincerely, Orange County Housing Providers Bryan Starr, Building Industry Association/Orange County Vickie Talley, Manufactured Housing Educational Trust National Association of Industrial and Office Properties, SoCal Chapter David Stefanides, Orange County Association of REALTORS Judy Legan, South Coast Apartment Association CC: Mayor Councilmembers City Manager M A Coalition Dedicated to Providing Orange County with Quality Housinq TATF OF CALIFORN A -111 ICIN SS- TRANSPORTATION ME) HO ISIN(d A .FN .V ARNOI O SCHWA87 �Ef:CFR C.ni nrn DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT OFFICE OF THE DIRECTOR 1800 Third Street, Room, 460 Samment%CA 95811 (916) 445 -4775 Fax (916) 3245107 �.hcd.ca.am 4) December 13, 2007 Ms. Kristine E. Thalman Chief Executive Officer Building Industry Association of Orange County 17744 Sky Park Circle, Suite 170 Irvine, CA 92614 Dear Ms. Thalman: Thank you for your recent inquiry regarding inclusionary zoning ordinances. The Department is pleased to provide information on the requirements of State law and Department policy. In particular, you requested clarification on whether State housing element or other law requires the adoption of local inclusionary ordinances. In short, neither State law nor Department policy requires the adoption of any local inclusionary ordinance in order to secure approval of a jurisdiction's housing element. State law does require incentives for voluntary inclusionary development (State density bonus law), pronounces housing element law neutral relative to enactment of mandatory local inclusionary provisions, and circumscribes the responsibilities of local governments which do enact inclusionary policies. The relevant sections of the Government Code are described below. Government Code Section 65915 -17, State density bonus law, requires local governments to make incentives available to residential developers that voluntarily propose to reserve specified portions of a proposed development for occupancy by low - or moderate - income households, and indicates that local governments are not to undermine implementation of this provision. Every local government is required to adopt an ordinance establishing how it will implement State density bonus law, including setting forth the incentives the local government will provide. State housing element law requires jurisdictions to plan for their existing and projected housing needs, identify adequate sites to accommodate their share of the regional housing need, and, among other things, analyze local policies, regulations or requirements that have the potential to constrain the development, maintenance or improvement of housing for all income level. The law also requires programs to "assist in the development of adequate housing to meet the needs of low- and moderate- income households ". )b Ms. Kristine E. Thalman Page 2 Many local governments adopt mandatory inclusionary programs as one component of a comprehensive affordable housing strategy and have demonstrated success in increasing the supply of housing affordable to low- and moderate - income households. However, some inclusionary programs may have the potential to negatively impact the overall development of housing. As a result, local governments must analyze mandatory inclusionary policies as potential governmental constraints on housing production when adopting or updating their housing elements, in the same way that other land -use regulations must be evaluated as potential constraints. For example, local governments must analyze whether inclusionary programs result in cost shifting where the cost of subsidizing the affordable units is underwritten by the purchasers of market -rate units in the form of higher prices. Such increases can be a barrier to some potential homebuyers who already struggle to qualify for a mortgage, and earn too much to qualify for government assistance. Local governments must also analyze their inclusionary policies to evaluate whether sufficient regulatory and financial incentives are offered to facilitate compliance with the requirements. In addition, it is important to note that the adoption of mandatory inclusionary zoning programs do not address housing element adequate sites requirements to accommodate the regional housing need for lower- income households. Inclusionary programs are not a substitute for designating sufficient sites with appropriate zoning, densities and development standards as required by Government Code Section 65583(c)(1). Finally, Government Code Section 65589.8 specifies that nothing in housing element law shall be construed to expand or contract the authority of a local government to adopt an ordinance, charter amendment, or policy requiring that any housing development contain a fixed percentage of affordable housing units. It further states that a local government which adopts such a requirement shall permit a developer to satisfy all or a portion of that requirement by constructing rental housing at affordable monthly rents, as determined by the local government. California has been for many years in the midst of a severe housing crisis; there are simply not enough homes for the number of residents who need them. Continued undersupply of housing threatens the State's economic recovery, its environment, and the quality of life for all residents. Effectively addressing this crisis demands the involvement and cooperation of all levels of government and the private sector. Both the public and private sector must reexamine existing policies, programs and develop new strategies to ensure they operate most effectively and provide an adequate housing supply for all Californians. The Department is committed to working with its public and private sector partners in this effort for the benefit of California's growing population. Z Jo Z 86ud Ms. Kristine E. Thalman Page 3 I hope this responds to your inquiry. If you need additional information, please call me at (916) 445 -4775 or Cathy Creswell, Deputy Director, Division of Housing Policy Development, at (916) 323 -3177. Sincerely, -;5a � Lynn L. Jacobs Director �iI-