The Homebuilders Association of the Central Coast (HBACC) will advocate for a repeal of SLO County’s affordable housing policy—called inclusionary housing—and call for more “broad-based” funding sources to support affordable housing, a move that’s drawn criticism from some community stakeholders.
In 2008, SLO County adopted an inclusionary housing ordinance. It requires developers to either build a certain number of deed-restricted “affordable” units in a project, or pay in-lieu fees that are then pooled to support nonprofit-driven affordable housing projects. Currently, the county’s in-lieu fees are $3,150 per home for 8 percent of units.
At a HBACC board meeting last month, Executive Director Jeff Eckles received direction to advocate for a repeal of the ordinance. Eckles said the HBACC supports the county finding alternative funding sources to build affordable housing that don’t penalize builders, come “on the backs of new home owners,” and have more “permanence.”
“We’ve always been opposed to the inclusionary housing ordinance,” Eckles said. “The big problem we’ve got is the funding mechanism. Economic studies have shown the more layers of fees you put on housing, the higher the price of the house.”
But affordable housing developer John Fowler, CEO of nonprofit People’s Self-Help Housing and HBACC member, believes the organization is taking advantage of a conservative-leaning Board of Supervisors to protect its profits.
“[The Inclusionary Housing Ordinance] is insignificant to the price of the house,” Fowler told New Times. “Cost is cost, and the market sells for what it sells for … . Fees overall might make a developer pause, but not just this fee. This little thing doesn’t change anything.”
Eckles agreed that the inclusionary ordinance alone wasn’t the “sole cause” of the housing market’s problems, calling the developer fees in general, “death by 1,000 cuts.”
The Board of Supervisors will review the ordinance in November, and the debate sets the stage for a larger conversation about affordable housing policies. Eckles said the HBACC wants to see the county invest more of its funds into affordable housing, through a parcel or sales tax, bond obligations, title transfer fees, or direct general fund contributions.
Fowler countered that the larger policy discussion can take place without repealing the Inclusionary Housing Ordinance.
“It’s kind of like the health care thing: Do the broader fix, and then you can get all the Board of Supervisors to support it,” he said.
This article appears in Jul 27 – Aug 6, 2017.
I’m curious as to why the HBA would advocate for the repeal of SLO County’s affordable housing policy. HBA Exec. Director Jeff Eckles says hes concerned about the impact the $3150 in lieu fee has upon the affordability of homes built by large project developers & home builders. Clearly single family homes in the Central Coast are in short supply and expensive. The average cost of a home, new or old in California, is now $550,000. However, its not clear how the in lieu fee puts new homes out of reach of the buyer, penalizes the developer or lacks permanence. Over the 30 year life of a typical home loan, the in lieu fee comes to $105 per year. I’m guessing that’s a lot less than the average home owner spends on alcohol every year.
Apparently the HBA has a sympathetic audience at the County Board of Supervisors. Supervisors Peschong, Compton and Arnold rejected a proposal by Bruce Gibson and Adam Hill to create a $5 million revolving fund for affordable housing. Are Peshong, Compton and Arnold in the pocket of the HBA due to generous campaign contributions? Peshong, Compton and Arnold have already shown their willingness to do the bidding of big business in this county. See the BOS’ recent decision to spend $6 million in County funds to pay for the North County SGA whose main beneficiaries of this decision are the big grape growers and wineries.
It’s a mystery to me why the County Board of Supervisors and the HBA would oppose common sense funding of affordable housing. Many of the men and women in this county who work in construction can’t afford the homes they help to build. This doesn’t even count the thousands of other people in good paying middle income jobs who cant afford a home. Just out of pure selfishness, it would seem to be in the best interests of the HBA to encourage more affordable housing projects. That would mean more projects for HBA member developers and construction companies, and more housing for the workers those companies so desperately need to build their projects. Why wouldn’t the BOS, supposedly working in the best interests of the citizens of SLO County, want to create more affordable housing? Why would they consider repealing the existing affordable housing ordinance when there’s already a crisis in affordable housing in this county?
SLO County residents who believe affordable housing is a must, need to mark their calendars. This coming November, The BOS will be considering a repeal of the existing affordable housing ordinance. Supporters of affordable housing should be at that meeting in force to show the BOS that they need to pay more attention to the needs of the little guys, rather than the agendas of the big developers and construction companies.
Bill Alexander
Atascadero