Middle-Class Housing
[ Excerpt from: "Desperately Seeking Middle-Class Housing - Ordinance Committee Zeros In on Smaller Condo Developments," By Bianca Licata, SB INDEPENDENT, April 3, 2008 ]
Making advances in Santa Barbara’s affordable housing program, councilmembers Dale Francisco, Das Williams, and Grant House met on April 1 as the Ordinance Committee and recommended some basic changes to the city’s inclusionary housing law. Conceived in 2004, the ordinance demands that all ownership subdivisions of 10 units or more make 15 percent of those units affordable to “middle-income” families, which means two-bedroom condos priced at $249,000, and three-bedrooms at $283,000. This is supposed to allow employers to attract and keep a workforce without increasing commuter traffic...
However, many feel that because the ordinance does not affect housing projects of fewer than 10 units, it is practically useless in meeting the demand for affordable middle-income housing...
Developers of condo projects with two to nine units who do not want to include affordable units could pay an “in-lieu” fee of $17,700 for each unit they build, so a two-unit project would pay $35,400 and a nine-unit project would pay $153,000. This is a lighter burden than the $473,300 fee that currently applies to larger projects, for each affordable unit they are required to build but do not...
Williams defended inclusionary housing and in-lieu fees, supporting the changes staff had outlined. “This is a regional market. Charges recommended today will make it more functional,” said Williams. “Is it okay to allow smaller units [like condominium developers] to sail on through without an extraction?”
... For the recommended ordinance to become law, a supermajority of five councilmembers will have to agree.
Williams said the decisions would help propagate the development of affordable housing. “[These are the] first meaningful steps towards [making sure] that the city of Santa Barbara will build housing for the income levels Santa Barbara City needs,” said Williams...
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To read the full text article, please go to:
SBI: Desperately Seeking Middle-Class Housing
Making advances in Santa Barbara’s affordable housing program, councilmembers Dale Francisco, Das Williams, and Grant House met on April 1 as the Ordinance Committee and recommended some basic changes to the city’s inclusionary housing law. Conceived in 2004, the ordinance demands that all ownership subdivisions of 10 units or more make 15 percent of those units affordable to “middle-income” families, which means two-bedroom condos priced at $249,000, and three-bedrooms at $283,000. This is supposed to allow employers to attract and keep a workforce without increasing commuter traffic...
However, many feel that because the ordinance does not affect housing projects of fewer than 10 units, it is practically useless in meeting the demand for affordable middle-income housing...
Developers of condo projects with two to nine units who do not want to include affordable units could pay an “in-lieu” fee of $17,700 for each unit they build, so a two-unit project would pay $35,400 and a nine-unit project would pay $153,000. This is a lighter burden than the $473,300 fee that currently applies to larger projects, for each affordable unit they are required to build but do not...
Williams defended inclusionary housing and in-lieu fees, supporting the changes staff had outlined. “This is a regional market. Charges recommended today will make it more functional,” said Williams. “Is it okay to allow smaller units [like condominium developers] to sail on through without an extraction?”
... For the recommended ordinance to become law, a supermajority of five councilmembers will have to agree.
Williams said the decisions would help propagate the development of affordable housing. “[These are the] first meaningful steps towards [making sure] that the city of Santa Barbara will build housing for the income levels Santa Barbara City needs,” said Williams...
-----------------------------
To read the full text article, please go to:
SBI: Desperately Seeking Middle-Class Housing
Posted by Malcolm on
4/04/2008
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1 Comments
I'm not sure I agree with a flat fee. What happens if property values continue to decline or they double or a small project is more in line with middle class housing? I think some kind of percentage may be better. I am not a real supporter in general of imposing fees on these builders, because in the end I believe the consumer always ends up paying more.
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