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Affordable Housing in California: AB1268

nerudite

Cyburbian
Messages
6,544
Points
30
California Planners...

I was just reading a little article featuring my good friend (note: no sarcasm present) Bill Allayaud of the Sierra Club's CA legislative office. They are doing heavy lobbying on AB 1268, which will require inclusionary zoning in California communities. I had a lot of experience with inclusionary zoning in Davis, but it's not for all communities. Bill Allayaud was my first mentor in planning, so he's up on a pedestal for me... so I guess I'm kind of wondering what the real take on the issue is from the municipalities: pro or con... and why?
 

BKM

Cyburbian
Messages
6,463
Points
29
We are currently studying this very issue in Fairfield. The community, as represented by the council members and planning commissioners, remains somewhat divided about such programs. At the same time, housing price inflation has not moderated in Solano County (we are less directly tied to the collapsing technology industry). For example, a townhouse in my complex sold for over $230K. I bought my similar unit six years ago for $95 K.

There is a serious concern that "workforce housing" is not being provided. Too many of the new homes being built now are targeted directly to Bay Area "move up" residents who demand a new home and more square footage-but can't afford it. The cheapest new subdivision house under construction last Spring was $329,000.

However, I have a big problem with State mandates. You said it best-its not for every community. And, as one of the council members stated, what happens if you earn 111% of the median income, and your co-worker who earns 109% of the median income but can afford to buy one of the "affordable" units.

I'm babbling. Sorry.
 

nerudite

Cyburbian
Messages
6,544
Points
30
It works pretty well in Davis, but I think that it is because the majority of the big developers live in the communities where they build. The affordable housing in Davis is awesome... nicer than some of the for-profit multiple family developments. I wonder how inclusionary zoning works in the larger areas where most developers don't really care as much... also, I have no idea how smaller communities (like the little towns in the Napa Valley) would deal with it, since they wouldn't have the specialists, grant administrators, etc, that are needed to keep non-profit housing going...

It's one of those "good in theory" kind of bills... but I wonder how practical it really is for a lot of the municipalities.
 

Wulf9

Member
Messages
923
Points
22
We just passed an inclusionary ordinance.

For ownership units, we use a simple present value calc to determine the maximum price. (present value of 30% of the affordable monthly income at 8% or present interest rate, whichever is greater).

The reason we settled on 8% is that it is the average for the 1990's.

The interesting thing is that we had a 44% increase in housing value 2000-2003. If interest rates had remained constant, the calc would have given an 18% increase.

This bizarre run up in housing values in a down economy results from federally subsidized interest reductions.

If we got rid of the government subsidies (like federally subsidized interest decreases, income tax subsidies, and (in CA lower prices for old folks through prop 13), housing would again become a "market." and the state wouldn't have to mandate anything.
 
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