ALL RIGHT. BUT. SO. WELL GOOD
MORNING ON THIS WEDNESDAY. I
WANT TO WELCOME YOU TO THE
ASSEMBLY, HOUSING AND COMMUNITY
DEVELOPMENT COMMITTEE. SECOND
INFORMATIONAL HEARING FOR 2024.
I KNOW THAT, UH, WE ARE HERE TO
REALLY TALK ABOUT A HIGH LEVEL
ISSUE, BUT REALLY ONE THAT I
THINK IS, UH, LEVEL SETTING FOR
WHAT WE HAVE TO DO TO ADDRESS
OUR HOUSING AND ULTIMATELY, OUR
HOMELESSNESS CRISIS AND THAT'S
THE COST OF DEVELOPMENT. WE HAVE
A LOT OF OVERVIEW THAT WE'RE
GONNA HEAR FIRST, FROM A LITTLE
BIT MORE OF A STATEWIDE
PERSPECTIVE ON SORT OF THE KIND
OF A SNAPSHOT IN TIME ON WHERE
WE ARE ON SOME OF OUR
DEVELOPMENT. CHALLENGES UM AND
THEN WE'RE GONNA HEAR FROM TWO
GREAT PRO HOUSING CITIES, UH, TO
TALK ABOUT SOME OF THEIR LOCAL
INITIATIVES AND HOW THAT IS
ACTUALLY HELPING TO, UH, TURN
SOME OF THE TRENDS AROUND IN THE
FORM OF NEW HOUSING STARTS. UH
ULTIMATELY, I'M HOPING TO AFFECT
SOME OF THE PRICING THAT WE'RE
SEEING OUT THERE AND GETTING
PRICING UNDER CONTROL. AND THEN,
UM, WE'RE GONNA CLOSE TODAY WITH
A CASE STUDY ON A MODEL PROJECT
THAT I THINK IS GONNA BLOW YOUR
MINDS ON SOME OF THE, UM,
EFFORTS THAT WE'RE SEEING RIGHT
IN MY HOME COMMUNITY OF SAN
DIEGO AND THEIR ABILITY TO USE A
YBY MODEL. WE PASSED THAT LAST
YEAR IN S¼ B. FOUR YES, IN GOD'S
BACKYARD TO ALLOW FAITH BASED
INSTITUTIONS, UH, BY RIGHT
DEVELOPMENT FOR AFFORDABLE
HOUSING OPPORTUNITIES, AND I
THINK IT'LL BE VERY IMPRESSED
WITH WHAT THEY'RE TRYING TO DO.
AND WE HAVE SOME LESSONS TO
LEARN FROM ALL OF THESE SPEAKERS
HERE TODAY ABOUT HOW TO GUIDE
OUR POLICY AND OUR FISCAL, UH,
CONVERSATIONS THIS YEAR. UM, AS
WE HAVE, UH, THOSE HEADWINDS TO
FACE. UM, WE KNOW WE HAVE SOME
CHALLENGES WITH A FUNCTIONAL
HOUSING MARKET, AND A LOT OF
THAT IS DRIVEN. UH, ULTIMATELY
PRICING OF WHICH IS DRIVEN BY
OUR LACK OF SUPPLY. SO HOW DO WE
GET CALIFORNIA COMMUNITIES TO BE
ABLE TO DO MORE IN THE SPACE OF
HOUSING? THAT IS THE CENTRAL
QUESTION OF THIS HEARING? UH, I
WANNA WELCOME SOME OF MY
COLLEAGUES AS WELL THAT ARE HERE
AND JOINING US AND, OF COURSE,
WOULD INVITE ANY OTHER MEMBERS
OF THE COMMITTEE OR REALLY
ANYBODY THAT WANTS TO ATTEND TO
COME DOWN TO ROOM 126 TO
PARTICIPATE IN THIS MORNING'S
HEARING. I DIDN'T KNOW IF MY
COMMITTEE MEMBERS HAD ANY
OPENING COMMENTS THAT THEY WOULD
LIKE TO SHARE MR GRA AND MS
REYES. THANK YOU FOR BEING HERE
AS WELL. THANK YOU, MR CHAIR, I.
I REALLY LOOK FORWARD TO THE
SPEAKER'S TODAY. I THINK
GATHERING THE INFORMATION. AS WE
LOOK AT THE POLICY WE WILL BE
INTRODUCING AND VOTING ON IS
EXTREMELY IMPORTANT, AND I
APPRECIATE ALL THAT YOU'RE DOING
TO PUT US ON THE RIGHT TRACK.
THANK YOU. THANK YOU, MS. REYES.
MR GRAYSON. THANK YOU, MR CHAIR
AND EXCITING TO BE ON THE
HOUSING COMMITTEE AND, UH, TO BE
ABLE TO PARTICIPATE IN SOMETHING
THAT I'M VERY, VERY PASSIONATE
ABOUT. UH AND I SAID THIS A TIME
OR TWO BEFORE, BUT, UH, ONE OF
THE GREATEST CONCERNS THAT I'M
FACING AS AN INDIVIDUAL AS
SOMEONE IN CALIFORNIA IS THE
FACT THAT ONE DAY UH, MY CONCERN
IS THAT I MAY HAVE TO GET ON AN
AIRPLANE TO GO VISIT MY
GRANDCHILDREN BECAUSE MY
CHILDREN CAN'T AFFORD TO LIVE
WHERE I RAISED THEM. SO LOOKING
FOR SOLUTIONS NOT JUST FOR MY
FAMILY, BUT FOR ALL CALIFORNIA
FAMILIES. THAT WE CAN STAY
TOGETHER IF WE SO CHOOSE. 100%
WELCOME TO THE COMMITTEE. OUR
NEWEST MEMBER, OUR NINTH MEMBER.
THANK YOU TO SPEAKER RIVAS FOR
EXPANDING THE SCOPE OF THIS
COMMITTEE AND I THINK AGAIN YOU
HIT THE NAIL ON THE HEAD. WE
DON'T HAVE ENOUGH HOMES. WE
DON'T HAVE ENOUGH AFFORDABLE
HOMES AND HOMES COST TOO MUCH.
SO LET'S FIND OUT WHY THAT IS.
I'D LIKE TO INVITE OUR FIRST
SPEAKER, UH FROM THE TURNER
CENTER FOR HOUSING INNOVATION IS
DAVID GARCIA. WE WANNA WELCOME
YOU UP TO THE PRESENTATION
TABLE. AND WHEN YOU'RE READY,
TAKE THE TIME THAT YOU NEED TO,
UH, GIVE US UH, YOUR
PRESENTATION. ABSOLUTELY. THANK
YOU, UM OK? SO GOOD MORNING
CHAIR MEMBERS OF THE COMMITTEE.
THANK YOU VERY MUCH FOR HAVING
ME TODAY AND FOR HAVING THIS,
UH, IMPORTANT CONVERSATION. UM
SO REAL QUICK. UH, MY NAME IS
DAVID GARCIA. I'M THE POLICY
DIRECTOR AT THE TURNER CENTER
FOR HOUSING INNOVATION AT U èC,
BERKELEY. IF YOU'RE NOT FAMILIAR
WITH THE CENTER, WE ARE A
RESEARCH AND POLICY
ORGANIZATION, UM, AT THE
UNIVERSITY FOCUSED ON REALLY ALL
MANNERS OF HOUSING FROM, UH,
LAND USE AND ZONING REFORM TO
HOMELESSNESS TO THE INTERSECTION
OF CLIMATE AND HOUSING. BUT
TODAY. I'VE BEEN ASKED TO JOIN
YOU THIS MORNING TO TALK ABOUT,
UH SOME SPECIFIC ITEMS YOU CAN
GO TO THE NEXT SLIDE. UM SO I'M
GONNA START BY QUICKLY GOING
OVER THE STATE OF CALIFORNIA'S
HOUSING MARKET. UM THE
CHALLENGES WE ARE FACING IN
MEETING OUR LOCAL AND STATEWIDE
HOUSING GOALS, AND THEN I'M
GONNA SPEND A BIT OF TIME GOING
THROUGH A NEW RESOURCE WE'VE
RECENTLY PUT OUT AROUND HOW, UH,
DEVELOPERS ACTUALLY MAKE
DEVELOPMENT DECISIONS. UH, WHAT
GOES INTO THE COST OF NEW
DEVELOPMENT AND HOW DO THEY
ENSURE THAT THEY CAN ACTUALLY
BUILD THE HOUSING THAT WE NEED
IN CALIFORNIA, AND THEN WE'RE
GONNA SPEND A BIT OF TIME ON
LOCAL AND STATE POLICY MAKERS
CAN ACTUALLY HELP MAKE THESE, UH
NEW HOMES PENCIL OUT BETTER.
WHAT ARE THE POLICY LEVERS WE
CAN PULL TO ACTUALLY GET HOMES,
UH, TO MAKE FINANCIAL SENSE AND
TO GET MORE HOUSING BUILT
OVERALL. UM, IF YOU GO TO THE
NEXT SLIDE SO I'M GONNA START
HERE WITH THIS CHART. UM, AND
LONG STORY SHORT, BUT, UH,
CALIFORNIA IS KIND OF GOING IN
THE WRONG DIRECTION IN TERMS OF
GETTING NEW HOMES BUILT. SO THE
CHART YOU SEE IN FRONT OF YOU
HERE IS HISTORIC. UH, DATA ON,
UM, ON PERMITS FOR NEW HOMES,
AND THIS GOES ALL THE WAY BACK
TO 1980. YOU KNOW, THE FONTS A
LITTLE SMALL, UH, BUT YOU CAN
SEE THAT IN THE EIGHTIES, AND IF
WE WERE TO TAKE THIS CHART AND
GO BACK TO THE SIXTIES AND
SEVENTIES, YOU WOULD SEE THAT
THE STATE OF CALIFORNIA
ROUTINELY BUILT UPWARDS OF
200,000 NEW HOMES PER YEAR. UH,
SOMETIMES AS MANY AS 300,000.
NEW HOMES, AND THIS WAS ALL DONE
WITH MUCH SMALLER POPULATION AND
A MUCH SMALLER ECONOMY. AND SO
YOU FAST FORWARD TO TODAY AND
YOU CAN SEE IN THE FAR END OF
THAT CHART THAT WE ARE BUILDING
JUST A FRACTION OF THE HOMES
THAT WE USED TO BUILD. UM MOST
RECENTLY WE'VE SEEN, UM IN 21,
2021 AND 2022. THE STATE WAS
BUILDING JUST UNDER 100 AND
20,000 NEW HOMES PER YEAR. UH,
AND THIS IS A PROBLEM BECAUSE
THE STATE DEPARTMENT OF HOUSING
AND COMMUNITY DEVELOPMENT SAYS
THAT WE NEED TO BE BUILDING
ABOUT 100 AND 80,000 UNITS PER
YEAR IN ORDER. KEEP UP WITH
DEMAND, AND THEN WE'RE ACTUALLY
GOING IN THE WRONG DIRECTION FOR
THE LAST YEAR IN 2023, WE
ACTUALLY SAW PERMITS DECLINE
DOWN TO 100 AND 11,000 PER YEAR.
UM THIS IS, UH, NOT JUST A
FUNCTION OF THE MARKET AT LARGE.
IF YOU COMPARE OUR PRODUCTION TO
SOME OF OUR PEER STATES, SO, FOR
EXAMPLE, THE STATE OF FLORIDA
HAS BUILT UH IN 2020 THREE 100
AND 90 THREE 1000 UNITS, UH, THE
STATE OF TEXAS DOUBLED THE
AMOUNT OF HOMES THAT CALIFORNIA
BUILT MORE THAN 200. 20,000
UNITS WERE BUILT THERE IN 2020
THREE, UM AND SO IF YOU CAN GO
TO THE NEXT SLIDE IT ACTUALLY
LOOKS EVEN WORSE WHEN YOU LOOK
AT THIS FROM A PER CAPITA
PERSPECTIVE, SO PER 100,000
RESIDENTS OVER THE LAST COUPLE
OF YEARS, CALIFORNIA RANKS 39TH
OUT OF 50 STATES IN TERMS OF OUR
PRODUCTION PER CAPITA, AND SO,
REALLY, WE ARE SEEING CALIFORNIA
FAR, UH, FALL FALL FURTHER
BEHIND WHEN IT COMES TO, UH,
BUILDING. UH, THE NUMBER OF
HOMES NEEDED, UH, TO ALLEVIATE
OUR OUR OUR SHORTAGE OF NEW
HOMES. UM, YOU CAN GO TO THE
NEXT SLIDE, PLEASE. UM AND SO
WHY IS THIS A PROBLEM? UH,
SIMPLY PUT, WE CAN'T, UH, ENSURE
THAT EVERYONE IN CALIFORNIA HAS
AN AFFORDABLE HOME UNLESS WE ARE
BUILDING ENOUGH HOMES TO MEET
DEMAND, AND THERE HAS BEEN A LOT
OF GREAT ACADEMIC WORK IN THE
LAST FEW YEARS. THAT INDICATES
THAT THE, UM THE WAY TO MODERATE
RENTS, AND, UH STEM DISPLACEMENT
PRESSURES IS TO BUILD NEW
HOUSING AT ALL ENDS OF THE
SPECTRUM. SO THIS INCLUDES
MERCURY HOUSING TRADITIONAL
DERES AFFORDABLE AND REALLY
ANYTHING THAT FALLS ALONG, UH,
BETWEEN THOSE THINGS. UM AND SO
WE HAVE EXAMPLES, NOT JUST FROM,
UH OTHER CITIES ACROSS THE GLOBE
, BUT ALSO FROM CITIES HERE, UM,
IN THE UNITED STATES AND IN
CALIFORNIA THAT WHEN NEW
SUPPLIES COMMENSURATE WITH
DEMAND, WE ACTUALLY SEE A
MODERATING EFFECT ON PRICES. AND
WE, UH, WE SEE LESS IMPACT ON
DISPLACEMENT. UM THIS IS BECAUSE
NEW HOUSING IS ABLE TO, UH,
BASICALLY SOAK UP THE DEMAND
THAT WOULD OTHERWISE FLOW TO
EXISTING HOMES. UM, THIS IS NOT
UNLIKE, UH HOW OTHER MARKETS FOR
EXAMPLE, UM, A MARKET FOR CARS.
WE ALL REMEMBER. IN THE EARLY
DAYS OF THE PANDEMIC. THERE WERE
MANUFACTURING SHORTAGES FOR NEW
CARS, AND AS A RESULT, THE PRICE
OF USED CARS SKYROCKETED,
PRICING OUT A LOT OF INDIVIDUALS
AND FAMILIES WHO NEEDED TO
PURCHASE CARS TO CONTINUE
WORKING. UM SO THE HOUSING
MARKET FUNCTIONS FAIR FAIRLY
SIMILARLY, AND UM, AND SO WHEN
WE CAN ENSURE THAT WE ARE
BUILDING ENOUGH HOMES WE CAN WE
KNOW THAT WE CAN MODERATE PRICES
AND KEEP PEOPLE IN THEIR HOMES
AND PROVIDE MORE HOUSING OPTIONS
FOR EVERYONE. UM, AGAIN. WE HAVE
A LOT OF EXAMPLES OF THIS
WORKING. IN FACT, HERE IN THE
CITY OF SACRAMENTO, THERE IS
RECENTLY AN OP ED IN THE SAN
FRANCISCO CHRONICLE DETAILING
HOW EFFORTS TO INCREASE SUPPLY
IN SACRAMENTO HAVE LED TO A
STEADY OR EVEN DECLINING RENTS
IN THIS CITY. SO, UM, BOTTOM
LINE IS ADDING NEW HOMES IS
IMPORTANT FOR KEEPING PRICES
AFFORDABLE AND FOR EVEN MAYBE
LOWERING PRICES OVERALL ACROSS
DIFFERENT, UM, DIFFERENT
MARKETS. UM, NEXT SLIDE, PLEASE.
AND SO, UH, PART OF THE
CHALLENGE WITH BUILDING NEW
HOMES IN CALIFORNIA TODAY IS
THAT IT'S REALLY EXPENSIVE TO
BUILD THOSE HOMES. THE CHART YOU
SEE HERE IS A COMPARISON BETWEEN
A CASE STUDY PROJECTS THAT WE
PUT TOGETHER IN 2019 TO 2023.
AND AS YOU CAN SEE, ACROSS THE
BOARD, UM HARD COSTS, SO COSTS
FOR LABOR AND MATERIALS HAVE
INCREASED OVER TIME, AS WELL AS
A SOFT COST. SO THINGS LIKE
INSURANCE, UH, THE COST OF
FINANCING INTEREST RATES, UH,
THE COST THAT WE NEED TO PAY FOR
ARCHITECTS. ENGINEERS ALL OF
THAT HAS GONE UP TO THE POINT
WHERE MOST NEW PROJECTS ARE
SITTING ON THE DRAWING BOARD AND
NOT GETTING BUILT TODAY, AND SO
THAT'S WHAT I'M GONNA TALK A
LITTLE BIT ABOUT MORE NOW IS HOW
THESE DYNAMICS ACTUALLY PLAY OUT
IN REAL LIFE. AND HOW DOES
POLICY IMPACT THOSE DYNAMICS? SO
IF YOU CAN GO TO THE NEXT SLIDE,
PLEASE? SO WE'VE COME OUT WITH A
NEW RESOURCE RECENTLY AT THE
TURNER CENTER. WE CALL UM THE
MAKING IT PENCIL SERIES REALLY
UNPACKS THE STEPS THAT
DEVELOPERS TAKE TO FINANCE AND
BUILD NEW HOMES AND TO
UNDERSTAND HOW, UH, POLICY
CHOICES AND MARKET CONDITIONS
REALLY MATTER WHEN WE'RE TALKING
ABOUT GETTING NEW HOMES BUILT,
SO WE DID THIS WORK BY CREATING
A SERIES OF CASE STUDY PROFORMA
ACROSS MARKETS THROUGHOUT
CALIFORNIA, UM, TO SHOW UH
POLICYMAKERS, STAKEHOLDERS AND
REALLY ANYONE ENGAGED IN HOUSING
CONVERSATIONS. UM HOW DO
PROJECTS WORK? WHEN WE SAY THESE
PROJECTS DON'T PENCIL? WHAT DOES
THAT ACTUALLY MEAN? SO I'M GONNA
SPEND SOME TIME WALKING THROUGH
THAT, UH, THAT RESOURCE NOW, SO
NEXT SLIDE, PLEASE. UM SO
THROUGH THIS WORK, WE HAVE A
COUPLE OF KEY QUESTIONS THAT WE
WANNA ANSWER. SO THE FIRST IS,
UM, YOU KNOW WHEN WE TALK ABOUT
HOUSING BEING EXPENSIVE TO
BUILD, WHAT DOES THAT ACTUALLY
MEAN? SO WHAT IS WHAT DO THOSE
CONSTRUCTION COSTS ACTUALLY
COMPRISE? WE ALSO WANT TO
UNDERSTAND A BIT MORE ABOUT, UM,
WHERE DOES PROJECT FUNDING COME
FROM? AND WHAT DOES THAT FUNDING
COST? AND THEN? LASTLY AGAIN, WE
WANNA TALK A LITTLE BIT ABOUT
HOW POLICY CAN IMPACT SOME OF
THIS MATH TO GET PROJECTS TO
WORK BETTER. UM, NEXT SLIDE,
PLEASE. UM SO I'M GONNA WALK YOU
THROUGH ONE OF OUR CASE STUDIES?
UH, PRETTY QUICKLY. UM AND SO WE
ARE AFFECTIONATELY REFERRING TO
THIS CASE STUDY AS TURNER
TERRACE. UM AND THERE ARE A
COUPLE OF THINGS YOU NEED TO
KNOW ABOUT OUR CASE. STUDY
PROFORMA. SO THIS IS A MARKER
EIGHT BUILDING. UM THAT IS A
RENTAL, AND IT'S UH, LOCATED IN
EAST BAY. IT'S ABOUT 100 AND 20
UNITS. UH, WE HAVE A COUPLE OF
DESIGN ASSUMPTIONS, INCLUDING,
UH, 1 TO 1 PARKING. SO EVERY
UNIT HAS ONE PARKING SPACE. UH,
WE'VE ASSUMED A LITTLE BIT OF
RETAIL ON THE GROUND FLOOR AND
THEN MOST IMPORTANTLY, UM, THIS
IS SOMETHING CALLED A 5/1
CONSTRUCTION, WHICH BASICALLY
MEANS THAT THIS IS A CONCRETE
FIRST FLOOR OVER. UH, UH, WITH,
UH UH, WOOD FRAME CONSTRUCTION.
UH, Ó OVER THAT FLOOR. AND SO A
LOT OF THE MID RISE, UH,
BUILDINGS YOU SEE, BUILT TODAY
ARE OF THIS CONSTRUCTION TYPE,
AND IT'S IMPORTANT TO NOTE THAT
IF WE ARE TALKING ABOUT HIGH
RISE, THE NUMBERS WOULD BE A LOT
MORE EXPENSIVE. WE WERE TALKING
ABOUT TOWN HOMES OR SINGLE
FAMILY HOMES. THEY WOULD THEY
WOULD BE LESS EXPENSIVE BECAUSE
THE CONSTRUCTION TYPES LESS
INTENSIVE, SO PLEASE KEEP THAT
IN MIND. ALSO THIS IS A RENTAL
PROJECT. AND SO IF YOU'RE
TALKING ABOUT HOMEOWNERSHIP, IT
WOULD ALSO BE A BIT MORE
EXPENSIVE AS WELL, UH, BECAUSE
OF DESIGN CRITERIA, BUT ALSO, UM
, UH, CONSTRUCTION DEFECT, UH,
INSURANCE PREMIUMS. SO IF YOU
CAN GO TO THE NEXT SLIDE,
PLEASE. OUR CASE STUDY. WE'VE
ALSO, UM WE'VE ALSO COME UP WITH
SOME ASSUMPTIONS ON THE
DEVELOPMENT SIDE ITSELF. SO
WE'VE ASSUMED AT A BASELINE THAT
OUR PROJECT WAS ABLE TO, UH,
LEVERAGE AN EXISTING INFILL
EXEMPTION OR STREAMLINING AT THE
LOCAL LEVEL. AND SO, UM, THERE'S
NÓ, UM ENVIRONMENTAL REVIEW
REQUIRED. WE'VE ASSUMED THERE'S
NÓ EXISTING, UH, HOUSING. UH OR
EXCUSE ME EXISTING STRUCTURE ON
SITE. THERE IS NÓ DEMOLITION
REQUIRED AND THERE'S NÓ
ENVIRONMENTAL REMEDIATION. SO
UM, THERE'S NÓ LEAKY UNDERGROUND
STORAGE TANK OR ANYTHING LIKE
THAT. THAT NEEDS TO BE
REMEDIATED. UM, WE'VE ALSO AS
ASSUMED A SET AMOUNT OF FEES
ABOUT $40,000 IN RESIDENTIAL
IMPACT FEES PER UNIT, WHICH MAY
BE MORE OR LESS DEPENDING ON THE
ACTUAL JURISDICTION YOU'RE IN.
UM, BUT WE'VE ALSO ASSUMED THAT
THERE'S NÓ AFFORDABILITY OR
INCLUSIONARY REQUIREMENT AS WELL
. AND AS WE KNOW MANY OF OUR
COMMUNITIES DO HAVE THESE
REQUIREMENTS. BUT FOR THE SAKE
OF, UH, OF THIS EXERCISE, WE'VE
ASSUMED THAT IT DOESN'T EXIST,
UH, FOR OUR PROJECT NEXT SLIDE.
SO WITH THE DESIGN AND THE, UM
AND THE SITE UH UM DESIGNED, WE
CAN START TO UNPACK WHAT IT
ACTUALLY COST TO BUILD OUR
PROJECT. SO WE'VE ASSUMED ABOUT
AN $8 MILLION PRICE TAG FOR THE
LAND ITSELF, WHICH INCLUDES OUR
DUE DILIGENCE COSTS THINGS LIKE
TESTING THE SOIL. UH, CLOSING
COSTS NEXT SLIDE. THE BULK OF
THE PROJECT IS GOING TO BE MADE
UP OF, UM, HARD COSTS. AND SO
THIS IS EVERYTHING THAT GOES
INTO THE PHYSICAL CONSTRUCTION
OF THIS PROJECT FROM THE LABOR
TO THE MATERIALS AS WELL AS, UM,
CONTINGENCIES AS REQUIRED BY OUR
LENDING PARTNERS. NEXT SLIDE.
AND AT THE TOP MAKING, UH, ABOUT
25% OF OUR PROJECT ARE SOFT COST
. SO THIS IS EVERYTHING THAT
BASICALLY GOES ONTO, UH ONTO
PAPER FOR BUILDING THIS PROJECT.
SO THIS PAYS FOR, UH, ARCHITECTS
, ENGINEERS. UM UH, INSURANCE
COSTS THINGS LIKE THAT. UM, NEXT
SLIDE. SO NOW THAT WE KNOW HOW
MUCH IT COSTS TO BUILD TURNER
TERRACE. WE WANT TO UNDERSTAND
WHAT IT TAKES TO ACTUALLY
FINANCE THIS PROJECT. AND SO
DEVELOPERS BY AND LARGE, DON'T
USE THEIR OWN MONEY WHEN THEY
ARE BUILDING A MULTIFAMILY
RESIDENTIAL. THEY GET FINANCING
FROM TWO SOURCES. THEY GET IT
FROM A BANK IN THE FORM OF A OF
A LOAN, SO THEIR DEBT AND THEY
ALSO GET THE WHAT THE BANK WILL
NOT COVER THEY GET FROM, UH, A
PRIVATE INVESTOR OR AN EQUITY
PARTNER. AND SO EACH OF THESE
PARTNERS HAS A SPECIFIC RETURN
REQUIREMENT. TO ACCOUNT FOR THE
RISK AND THE COSTS ASSOCIATED
WITH BUILDING NEW HOUSING. SO
WE'RE GOING TO TALK A LITTLE
BIT. ABOUT WHAT? THAT UM WHAT
THAT COMPRISES, AS WELL. SO THE
FIRST THING WE'RE GONNA TALK
ABOUT IS, UM IS OUR OUR BANK
LOAN MUCH LIKE BUYING A HOME.
THE BANK IS NOT GONNA GIVE US
ALL OF THE MONEY WE NEED TO MAKE
THAT PURCHASE. UH, BUILDING
MULTIFAMILY RESIDENTIAL. I IS
THE SAME. AND IN THIS MARKET, WE
HAVE DETERMINED THAT THE BANK
WILL COVER ABOUT 55% OF THE COST
THAT WE NEED TO BUILD THIS
PROJECT. SO THAT'S A TERM
REFERRED TO AS A LOAN TO COST
AND SO, UM THIS IS ACTUALLY
PRETTY LOW BEFORE THE PANDEMIC.
THAT LOAN TO COST WAS ABOUT 65%
AND BEFORE THAT, UH, WE HAVE,
UH, WE'VE BEEN TOLD THAT LÀ ON
THE COST COULD GO AS HIGH AS 75%
AND AS A DEVELOPER. I WANT TO
HAVE MORE DEBT BECAUSE THAT IS,
UH, THAT IS ESSENTIALLY CHEAPER
FORM OF FINANCING. UM BUT
BECAUSE OF THE HIGH COST AND
HIGH RISK ASSOCIATED WITH
BUILDING TODAY IN OUR MARKET,
THE BANKS ONLY GONNA GIVE US
ABOUT 55% NEXT SLIDE. SO THE
BALANCE OF THAT COST HAS TO COME
FROM SOMEWHERE AND SO IT
GENERALLY COMES FROM A PRIVATE
INVESTOR. AND SO, UH, I WANNA
UNPACK WHAT THAT ACTUALLY MEANS.
BECAUSE WE HEAR THIS A LOT AND
WE SHOULD TALK A LITTLE BIT
ABOUT, UM, WHO THESE ACTORS ARE.
SO WHEN WE TALK ABOUT PRIVATE
INVESTORS, THESE ARE ESSENTIALLY
, UM, ORGANIZATIONS THAT CAN
INVEST IN WHAT WE CALL A GLOBAL
POOL OF CAPITAL. IT BASICALLY
MEANS THAT THEY DON'T HAVE TO
INVEST IN RESIDENTIAL REAL
ESTATE. THEY CAN INVEST IN
COMMERCIAL REAL ESTATE. THEY
COULD INVEST IN AGRICULTURE,
THEY CAN INVEST IN CLEAN.
BASICALLY ANYTHING. UM, THAT
WOULD, UH, PROVIDE THEM A RISK
ADJUSTED RETURN. UM AND SO A
COUPLE OF THESE ORGANIZATIONS
ARE LISTED HERE. SO FOR EXAMPLE,
THERE ARE PRIVATE EQUITY
COMPANIES WHO I THINK ARE
TRADITIONALLY WHO WE THINK OF AS
INVESTORS IN IN, UH, RESIDENTIAL
REAL ESTATE. THERE ARE ALSO
GROUPS LIKE PENSION FUNDS GROUPS
LIKE CALPERS AND CAL STIRS WHO
INVEST IN, UH IN REAL ESTATE, AS
WELL AS A HIGH RETURN OPTION TO
ROUND OUT THEIR OVERALL
PORTFOLIOS FOR THEIR MEMBERS. UM
THERE ARE ALSO, UH, INSURANCE
GROUPS WHO USE THEIR BALANCE. TO
INVEST IN IN RESIDENTIAL REAL
ESTATE. UM, BUT LONG STORY SHORT
, ALL OF THESE ENTITIES AGAIN
DON'T HAVE TO INVEST IN
RESIDENTIAL REAL ESTATE. AND AS
A RESULT, UH, DEVELOPERS ARE
UNDER A LOT OF PRESSURE TO
DEMONSTRATE THAT THEY CAN
PROVIDE RETURNS THAT JUSTIFY
THEIR INVESTMENT INTO THEIR
PROJECTS. THE NEXT SLIDE, PLEASE
. UM AND SO, UH, HOW? HOW DO WE
ACTUALLY GET AN INVESTOR WILL WE
NEED TO DEMONSTRATE THAT THE
PROJECT IS PROFITABLE RELATIVE
TO THE RISK AND TIME INVOLVED.
AND SO THERE ARE MANY WAYS TO
MEASURE RETURN. BUT FOR THE SAKE
OF SIMPLICITY, WE'RE GONNA USE
SOMETHING CALLED A RETURN ON
COST, WHICH IS BASICALLY JUST,
UM, THE MONEY THAT TURNER
TERRACE OR PROJECT WILL MAKE
AFTER EXPENSES AND COMPARING
THAT TO UM WHAT? WHAT KIND OF
RETURN I WILL GET FOR JUST
BUYING AN EXISTING BUILDING. UM
AND THAT'S KNOWN AS A
CAPITALIZATION RATES AND SO LONG
STORY SHORT, UM IF I'M GONNA GO
THROUGH THE TIME AND EXPENSE AS
A DEVELOPER OF BUILDING A NEW
PROJECT, I NEED TO SEE THAT
THERE IS A RELATIVE. UM,
INCENTIVE TO DO THAT RELATIVE TO
ME JUST BUYING A BUILDING AND
MAKING PROFIT THAT WAY. UM, NEXT
SLIDE. AND SO, UH, BASICALLY, WE
NEED TO SEE THAT THERE IS A
RETURN. THAT IS A LITTLE BIT
MORE THAN CAP RATES IN ORDER TO
JUSTIFY MOVING FORWARD WITH THE
PROJECT. UM, NEXT SLIDE, PLEASE.
AND SO WE KNOW THAT IN THE EAST
BAY WHERE OUR CASE STUDY PROJECT
IS LOCATED, CAP RATES ARE ABOUT
5% FOR, UM FOR CLASS A
MULTIFAMILY RESIDENTIAL. AND SO
OUR PROJECT NEEDS TO GET CLOSER
TO THAT GREEN LINE. YOU CAN SEE
THERE ON THE RIGHT TO
DEMONSTRATE THAT IT IS ACTUALLY
WORTH THE TIME AND THE EFFORT TO
BUILD THIS PROJECT. UM THIS
SPREAD USED TO BE LESS. UH, WHEN
WE DID THIS WORK BACK IN 2019
ABOUT A 0.5% DIFFERENCE BETWEEN
RETURN ON COST AND CAP RATE WAS
ENOUGH TO GET INVESTORS ON
BOARD. IT'S CLOSER TO 1% BARE
MINIMUM, WHICH CHANGES A LITTLE
BIT DEPENDING ON YOUR MARKET. UM
NEXT SLIDE, PLEASE. BUT BASED ON
THE COST TO BUILD TURNER TERRACE
AND THE AMOUNT OF REVENUE WE
THINK WE CAN BRING IN THROUGH
RENTS. THE RETURN ON COST IS
ACTUALLY NOT EVEN EQUAL TO CAP
RATES. AND THAT IS ACTUALLY
UNDERWATER, WHICH MEANS WE ARE
NOWHERE CLOSE TO SEEING
FEASIBILITY FOR THIS PROJECT.
UM, NEXT SLIDE, SO THAT JUST
SHOWS YOU IT WON'T GET BUILT. UM
AND SO, UM, IF THE COST TO
ALTERNATIVE TARIFFS ARE SO HIGH
ONE WAY TO THINK ABOUT, UH,
GETTING A HIGHER RETURN MIGHT BE
TO RAISE MORE REVENUE IN THE
FORM OF RENT, SO WE TRIED TO
TEST WHAT DIFFERENT RENT LEVELS
WOULD LOOK LIKE, UH, OUT TO OR
WHAT? WHAT THEY WOULD DO TO OUR
RETURN METRICS. AND SO, UM, WE
STARTED WITH LOOKING AT THE LOW
END. SO IF WE WERE TO, UM, HOLD
RENT, STEADY, UH, THAT WOULD BE
AFFORDABLE TO LET'S SAY 80% OF
AREA MEDIAN INCOME. WHAT WOULD
THAT DO TO OUR RETURN ON COST
AND YOU CAN SEE HERE THAT IT
ACTUALLY BRINGS DOWN OUR RETURN
ON COST PRETTY SIGNIFICANTLY TO
ABOUT TWO. 0.86% WHICH BRINGS US
EVEN FURTHER AWAY FROM FROM
FEASIBILITY AND SO ON THE NEXT
SLIDE. YOU CAN SEE THE ACTUAL
REVENUE THAT WE PROJECTED USING
FOR THIS PROJECT, WHICH IS ABOUT
$3500 A MONTH FOR A ONE BEDROOM,
WHICH IS VERY EXPENSIVE. BUT
EVEN AT THAT RATE, EVEN WITH A
MARKET STUDY THAT SHOWS THAT
THERE'S A DEMAND AT THIS PRICE,
WE CAN'T MAKE THIS WORK BECAUSE
THE COSTS ARE JUST TOO HIGH. SO
WHAT IS THE TIPPING POINT? WHERE
CAN WE ACTUALLY GET THIS PROJECT
TO PENCIL OUT? SO THAT TAKES US
ALL THE WAY TO THE NEXT SLIDE
WHERE WE MODELED? WHAT IF IT WAS
$4000 A MONTH FOR A ONE BEDROOM?
SURE THAT WOULD WORK. THE
PROBLEM IS, UH, WE THERE IS NÓ
DEMAND AT THIS HIGH END OF THE
MARKET. AND SO WE CAN'T. UH, WE
HAVE NÓ MARKET STUDY TO SHOW OUR
EQUITY INVESTOR OR OUR BANK. AND
SO THERE'S NÓ WAY WE COULD
ACTUALLY GET THIS PROJECT BUILT
BECAUSE NÓ ONE IS GOING TO RENT
AT THAT AT THAT HIGH PRICE. AND
SO IF WE CAN'T SIMPLY RAISE
REVENUES BY RAISING RENTS. WHAT
ARE WE LEFT TO DO AS
POLICYMAKERS IN TERMS OF TRYING
TO GET MORE HOMES BUILT? WELL
IDEALLY, WE CAN BRING DOWN THE
COST, UM, THE COST TO BUILD A
NEW NEW HOUSING IS REALLY THE
KEY FACTOR HERE IN GETTING, UM,
THE MARKET TO WORK BETTER AND TO
ACTUALLY PRODUCE THE HOMES THAT
WE NEED, SO IF YOU CAN GO TO THE
NEXT SLIDE WE MODELED A FEW OF
WHAT? UH A FEW OF THESE OPTIONS
AND WHAT THAT WOULD DO TO OUR
PROJECT. FEASIBILITY SO RIGHT
NOW YOU SEE THE BASELINE HERE AT
4.78% RETURN UM, IF WE WERE TO
SAY REDUCE IMPACT FEES YOU
RECALL I STARTED WITH $40,000
PER UNIT IF WE WERE TO KIND OF
ARBITRARILY BRING THAT DOWN TO
$10,000 PER UNIT. WHAT WOULD
THAT DO? IF YOU CAN GO TO THE
NEXT SLIDE? UM, THAT INCREASES
OUR RETURN A BIT. UM, BUT THAT
BY ITSELF DOES NOT GET US TO
FEASIBILITY. IF WE WERE TO LET'S
SAY REDUCE PARKING PARKING COSTS
ANYWHERE FROM 40 TO $60,000 PER
STALL. SO IF WE WERE TO BRING
OUR 1 TO 1 PARKING RATIO DOWN TO
SAY, 0.25 TO ONE, WHAT WOULD
THAT DO TO OUR PROJECT? YOU CAN
GO TO THE NEXT SLIDE. CAN SEE
THAT THAT GETS US A LITTLE BIT
CLOSER. UM, BUT WHAT? WHAT IF WE
WERE TO INCREASE DENSITY? UM, SO
WE'VE ALSO MODELED A 25%
INCREASE IN THE NUMBER OF UNITS
WE WERE ABLE TO HAVE ON OUR
SIDE. UM IF YOU CAN GO TO THE
NEXT SLIDE, YOU CAN SEE THAT
GETS US EVEN CLOSER, BUT WHAT'S
STILL NOT QUITE AT THAT, UM, 6%
MARK TO MAKE THIS PROJECT WORK
OUT. AND SO THE LAST THING WE
MODELED WAS REDUCING HARD COSTS
BY 10% THIS CAN BE ACHIEVED
THROUGH EFFICIENCIES IN IN TIME
AND CONSTRUCTION METHODS. UM AND
SO WHEN WE, UM IF WE GO TO THE
NEXT SLIDE, YOU CAN SEE THERE AT
THAT POINT. ARE FINALLY AT THE
BARE MINIMUM KIND OF THRESHOLD
TO MAKE THIS PROJECT WORK. UM
AGAIN, UH, THERE'S A LOT OF
POLICIES POLICY LEVERS THAT WE
CAN PULL. UH, WE, BY NÓ MEANS
HAVE TESTED EVERY SINGLE ONE OF
THEM, BUT IT'S IMPORTANT TO KNOW
THAT YOU KNOW AS YOU EAT CHANGE
POLICIES, AND WE CALIBRATE THEM
TO WORK BETTER WITH THE MARKET.
WE DO GET PROJECTS TO WORK
BETTER. THERE ARE OTHER THINGS
THAT MAKE A DIFFERENCE, TOO. FOR
EXAMPLE, ONCE INTEREST RATES
START COMING DOWN, UM OR GENERAL
COSTS START COMING DOWN. YOU MAY
SEE SOME OF THESE PROJECTS START
TO WORK A LITTLE BIT BETTER AS
WELL. BUT I THINK IT'S IMPORTANT
AS POLICYMAKERS TO KNOW THAT UM,
YOU KNOW, WE HAVE A ROLE TO PLAY
AS WELL. AND THAT'S WE CAN HELP
BEND THE COST CURVE THERE.
OBVIOUSLY THINGS THAT WE DON'T
HAVE CONTROL OVER, FOR EXAMPLE,
THE PRICE OF LUMBER. UM UM BUT,
UH, BY IMPLEMENTING SOME OF
THESE DIFFERENT POLICIES LIKE WE
WILL HEAR LATER FROM THE OTHER
PANELISTS, WE CAN GET PROJECTS
CLOSER TO FEASIBILITY TO TAKE
ADVANTAGE, UH OF FALLING
INTEREST RATES OR BETTER MARKET
CONDITIONS ONCE, UM, YOU KNOW
ONCE THOSE ONCE THOSE TIDES TURN
, SO IT'S IMPORTANT TO REMEMBER
THAT WE HAVE THE ABILITY TO TRY.
DO SOME OF THIS, AND I KNOW THE
LEGISLATURE HAS BEEN ACTIVELY
THINKING ABOUT WAYS THAT WE CAN
BEND THE COST CURVE TO GET MORE
PROJECTS TO WORK ACROSS THE
STATE. UM GOING TO STOP THERE. I
KNOW I JUST WENT THROUGH A LOT
HERE. UM I'M HAPPY TO TAKE ANY
QUESTIONS. AND I JUST WANNA SAY
THANK YOU AGAIN FOR HAVING THIS,
UH, THIS HEARING AND FOR HAVING
ME, UH, BE BE THE FIRST SPEAKER.
WELL, THANK YOU, MR GARCIA. A
LOT OF GROUND COVERED. UM AND
I'M SURE IT CAN GENERATE A LOT
OF QUESTIONS. WE'LL BEGIN WITH
MR GRAYSON. THANK YOU, MR CHAIR.
AND UH, THANK YOU TO TURNER
CENTER TO YOUR PRESENTATION. I
HAVE INCREDIBLE REGARD AND
RESPECT FOR THE TURNER CENTER.
UH THANK YOU FOR THIS MODEL THAT
YOU PROVIDED FOR US, UH, VERY
GRACIOUS IN SOME AREAS AS FAR AS
EXPENDITURES, UH, AND IN
CONSTRUCTION DEVELOPMENT, TIME
IN MANY CASES CAN ACTUALLY HAVE
MUCH GREATER VALUE THAN MONEY
ITSELF. SO ONE OF MY QUESTIONS
UH, WHAT WAS THE TIMELINE FOR
PERMITTING? FOR UH, ACTUALLY
STARTING DEVELOPMENT ON THIS
MODEL. DID YOU TAKE THAT INTO
CONSIDERATION? YEAH, SO THAT
THAT'S AN EXCELLENT POINT. UH,
ASSEMBLY MEMBER? UM, IN THIS.
IT'S A TRICKY THING TO MODEL
BECAUSE, LIKE YOU SAID IT, IT'S
TIME NOT NECESSARILY MONEY, BUT
WE CAN ASSUME THAT IF IT TAKES,
LET'S SAY TWO TO THREE YEARS TO
GET ENTITLED THAT THE COSTS ARE
PROBABLY GOING TO INCREASE.
DURING THAT TIME, WE WOULD HAVE
THE ABSOLUTE GREATEST
CELEBRATION ALL THROUGHOUT
CALIFORNIA. ALL IT TOOK WAS TWO
TO THREE YEARS. UH TO GET
PERMITS. WE'RE WE'RE ACTUALLY
LOOKING AT, AS YOU WELL KNOW, IN
YOUR STUDIES WE'RE LOOKING AT,
UH, ANYWHERE BETWEEN 7 TO 10
YEARS MINIMUM TO BE ABLE TO PULL
PERMITS FOR A PROJECT AS SIMPLE
AS THIS. THE OTHER THING THAT
WAS INTERESTING WAS THAT THIS IS
MARKET RATE. UH, SO FOR MARKET
RATE, UM THE WHAT AFFECTS THE
TIMELINE AS WELL IS THAT WE HAVE
DONE AN INCREDIBLE AMOUNT OF
POLICY FOR, UH, AFFORDABLE
HOUSING, STREAMLINING TO GET IT
THROUGH THE PROCESS, BUT FOR
MARKET RATE IT'S STILL LEFT AT
THE ORIGINAL. YOU KNOW WHERE YOU
HAVE TO GO THROUGH THE WHOLE
PROCESS WITHOUT ANY KIND OF
STREAMLINING. AND DO YOU SEE
THAT BEING PROBLEMATIC IN THE
SENSE THAT IF WE'RE TRYING TO
BUILD IT ALL LEVELS WE WERE
GOING TO OVERLOAD IN ONE AREA OF
HOUSING AND NOT STAY CAUGHT UP
ON ON OTHER AREAS. BECAUSE OF
THAT, JUST, UH UH, THAT
DIFFERENCE BETWEEN MARKET RATE
AND AFFORDABLE. YEAH UM, SO I
DON'T NECESSARILY SEE IT AS AN
AS AN OVERLOADING NECESSARILY,
BECAUSE I THINK A LOT OF THE
REFORMS MADE TO FACILITATE
FASTER DEVELOPMENT ON THE
AFFORDABLE SIDE ARE IMPORTANT.
UM I, I DO THINK, UM WE
OFTENTIMES WE SIDE OF THE NEED
TO REALLY STREAMLINE HOUSING
ACROSS THE OF ALL HOUSING TYPES,
SO INCLUDING MARKET RATE, AND SO
WHEN WE THINK ABOUT PROVIDING
STREAMLINING INCENTIVES FOR
THOSE PROJECTS, UM A LOT OF
DEVELOPERS THAT WE'VE SPOKEN TO,
UM, REALLY DON'T USE THEM THAT
OFTEN BECOME THE BECAUSE THEY
COME WITH EXTRA COST
REQUIREMENTS THAT ACTUALLY END
UP BEING MORE EXPENSIVE THAN
THEY WOULD OTHERWISE HAVE, UH,
HAVE BEEN AND SO THE CHALLENGE
IS, HOW DO WE CREATE, UM MORE
CERTAINTY AROUND THE DEVELOPMENT
PROCESS WITHOUT INCREASING THE
COST OF THE DEVELOPMENT ITSELF?
OTHERWISE, UM, WE WILL BE POLICY
. THAT'S NOT GONNA ACTUALLY
ALLEVIATE THAT PROBLEM. SO I'M
GUESSING NOT GUESSING, BUT, UH
BY PROVIDING STREAMLINING IT,
THEN KICKS IN, UH, WHAT WE WOULD
CALL PREVAILING WAGE IN MANY
CASES AS FAR AS BUILDING AND
THAT'S THE HARD COST THAT WE'RE
TALKING ABOUT. THAT'S ONE OF
THEM. YEAH AND SO, UH, MY
UNDERSTANDING IS IN SOME MARKETS
. THAT MAY BE OK BECAUSE THE
EXISTING RAGE MAY BE CLOSE TO
PREVAILING AS IT IS, BUT IT ALSO
MIGHT LIMIT THE NUMBER OF
CONTRACTORS WHO WILL BID ON THAT
PROJECT. AND SO YOU MAY LOSE OUT
ON SOME PRICE. UH, SAVINGS
THERE. RIGHT AND SO THE OTHER
PART OF THE HARD COST OF MY LAST
QUESTION. THANK YOU, MR CHAIR
FOR YOUR PATIENCE, MY
COLLEAGUES, UH, DEALING WITH THE
HARD COST. I THINK IT'S PRUDENT
TO, UH, TO POINT OUT THAT, UH,
WE CAN'T AFFECT, UH, WHEN IT
COMES TO A DEVELOPER BUILDING
HAS VERY LITTLE SAY ON WHAT WHAT
THAT COST. UH HE OR SHE IS GOING
TO PAY, UH, FOR LUMBER OR FOR
CONCRETE. UH REALLY, THE HARD
COST THAT THEY HAVE ANY SAY SO
OVER WOULD BE AND SO, UM, IT'D
BE INTERESTING TO FIND OUT WHAT
THE IMPACT OF LABOR IS IN
DIFFERENT REGIONS. UH, BECAUSE,
AS YOU JUST POINTED OUT IN SOME
REGIONS, THE WAGE THAT'S BEING
PAID IS ALREADY AT THAT LEVEL OF
PREVAILING WAGE, WHEREAS AND THE
REASON WHY I BRING THIS UP IS
BECAUSE ARE THERE SOME TOOLS
THAT WE CAN THAT WE CAN PUT IN
PLACE AS A LEGISLATURE OR LOCALS
THAT CAN PUT IN PLACE TO HELP
MITIGATE THE COST OF HAVING TO
GO PREVAILING WAGE, YOU KNOW,
THAT'S IN MANY CASES THAT'S WHAT
PEOPLE USED OR MUNICIPALITIES
USED REDEVELOPMENT FOR. THEY
COULD USE REDEVELOPMENT TO
SUBSIDIZE SOMETHING ELSE FOR THE
DEVELOPER SO THAT THE DEVELOPER
COULD INCORPORATE PREVAILING
WAGE INTO THE JOB, WHICH I THINK
IS VERY IMPORTANT. YEAH AND I
THINK THAT'S AN IMPORTANT TO
BRING UP IS THERE'S A LOT OF
NUANCE HERE. IT'S NOT ZERO SUM
AND SO, UM, TO THE EXTENT THAT
WE CAN INCORPORATE A KIND OF
COMPLEMENTARY POLICY GOALS, FOR
EXAMPLE, HAVING A PREVAILING
PAGES OR HAVING AFFORDABILITY
REQUIREMENTS. IT'S NOT
NECESSARILY A BAD THING, BUT I
ALSO THINK WE NEED TO UNDERSTAND
HOW THOSE REQUIREMENTS INTERACT
WITH, UH, HOW DEVELOPERS MAKE
DECISIONS AND HOW THE MARKET
REACTS TO THAT AND WHERE WE CAN
TRY AND BALANCE SOME OF THOSE,
UM SOME OF THOSE COST INCREASES.
WE SHOULD FIGURE WHAT THOSE ARE
WHAT THOSE ARE AND KIND OF, UH,
FIGURE OUT WHAT THE TRADE OFFS
ARE AND MAKE THOSE MAKE THOSE
DECISIONS. THANK YOU VERY MUCH.
THANK YOU. THANK YOU, MR
GRAYSON. MR LEE. THANK YOU SO
MUCH, MR GARCIA AND THIS REPORT.
THE TWO REPORTS ACTUALLY ARE
VERY, VERY HELPFUL. UM, I WANTED
TO DRILL DOWN ON SOME OF THE
SPECIFICS YOU TALKED ABOUT TODAY
, SO OBVIOUSLY WE ARE PER CAPITA
39TH OUT OF 50 IN HOUSING
PRODUCTION. BUT I WANTED TO ASK,
TOO, IS LIKE, HOW DO WE COMPARE
WHEN IT COMES TO HARD COSTS OF
OTHER STATES? SO OBVIOUSLY
FLORIDA, NORTH CAROLINA OR SOUTH
DAKOTA, WE STILL EXIST IN THE
SAME MATERIALS MARKETS. SO WHAT
IS IT LOOK LIKE? SAY VERSUS
FLORIDA. HOW ARE HARD COSTS
COMPARED SO I DON'T HAVE THE
EXACT NUMBERS. I WOULDN'T BE
ABLE TO TELL YOU X PERCENT
HIGHER OR LOWER BUT THROUGH WITH
FOLKS WHO WORK ACROSS MARKETS.
IT'S VERY CLEAR THAT THE COSTS
ARE LOWER IN MOST OTHER STATES,
AND A LOT OF THAT IS NOT
NECESSARILY, UH, BECAUSE OF, UH,
A BAD THING, RIGHT? YOU HAVE
SPECIFIC SEISMIC REQUIREMENTS IN
CALIFORNIA. WE HAVE, UH, ENERGY
REQUIREMENTS IN CALIFORNIA THAT
DO NOT EXIST IN OTHER STATES. SO
AGAIN, THAT SPEAKS TO OUR KIND
OF, UH UH, STATE POLICY OR GOALS
TO CREATE CLIMATE RESILIENCY, SO
NOT NECESSARILY A BAD THING. BUT
IT DOES INCREASE THE COST PER S¼
E. SO UM, I WOULD ACTUALLY LIKE
TO SEE MORE RESEARCH DONE HERE.
BECAUSE IT'S NEVER ANY ONE THING
THAT MAKES HOUSING MORE
EXPENSIVE THAN ANOTHER TYPE OF
HOUSING. IT'S USUALLY A SPECTRUM
OF SMALL INCREASES, UM WHETHER
THAT'S RELATED TO THE BUILDING
CODE OR THE ENERGY CODE OR OTHER
REQUIREMENTS THAT, UH, WHEN, UH,
PUT TOGETHER CUMULATIVELY CREATE
MORE EXPENSIVE HOUSING. I WILL
ALSO SAY IT'S A LOT FASTER TO
BUILD HOMES. THERE'S A LOT MORE,
UM, CERTAINTY IN THE DEVELOPMENT
PROCESS AND SOME OF THESE OTHER
STATES AND SO WHILE THE HARD
COSTS MAY NOT BE AS HIGH, UM
THEY CAN. THERE IS A LOT LESS
RISK, AND SO THEY MAY BE ABLE
ACCESS EQUITY FINANCING AT A
LOWER RATE BECAUSE THEY KNOW
THAT THAT PROJECT IS GOING TO
GET BUILT IN A REASONABLE AMOUNT
OF TIME. SO AGAIN, IT'S NOT
ALWAYS JUST WHAT ARE THE
SPECIFIC REQUIREMENTS THAT ARE
DRIVING THE COST. IT'S ALSO WHAT
ARE THE DEVELOPMENT CONDITIONS
THEMSELVES IN THE PLACE THAT
THEY'RE TRYING TO BUILD? YEAH
THAT MAKES SENSE. I MEAN, I
THINK THIS IS A TOPIC FOR OUR
COMMITTEE, PERHAPS INVESTIGATE
MORE ABOUT WHAT IS OUR
COMPARISONS WITH OTHER STATES,
TOO, AND WE SHOULD WORK MORE
WITH OUR OTHER STATE PARTNERS TO
SEE WHAT DIFFERENCE IT IS, BUT I
AM ALSO INTERESTED IN AND ALSO
THE REGIONAL VARIATIONS TO IN
YOUR REPORT. YOU TALKED EVEN
FROM THE PRODUCTION STANDPOINT.
EAST BAY AND THE SOUTH BAY. SO
WE REPRESENT THE BAY AREA. JUST
THERE IS THAT DIFFERENCE IS COST
DIFFERENCE AND PER UNIT BETWEEN
THE EAST BAY, WHICH IS MORE
EXPENSIVE IN THE SOUTH BAY. IT'S
$50,000 PER UNIT MORE EXPENSIVE
IN THE EAST BAY. SO WHAT
ACCOUNTS FOR THAT JUST VERY
SMALL GEOGRAPHIC DIFFERENCE TO A
LOT OF THAT HAS TO DO, UM, WITH
THE LABOR MARKET ITSELF. SO
LABOR MAY BE MORE EXPENSIVE. UM
YOU KNOW, 21 OR TWO COUNTIES
OVER THE WORKFORCE DOESN'T HAVE
TO MAYBE TRAVEL AS FAR THROUGH
BUILDING IN THE CENTRAL VALLEY
VERSUS IF THEY'RE HAVING TO
COMMUTE. ALL THE WAY IN TO THE
BAY AREA. A LOT OF TIMES THE
DEVELOPMENT WE SEE IN THE BAY
AREA OR MORE URBAN AREAS IS, UM
INFILL FOCUSED. AND SO THE COST
TO BUILD THAT TYPE OF HOUSING
HAS A PREMIUM ASSOCIATED WITH IT
AS WELL. SO, UH, AGAIN THERE,
THERE'S NOT MAYBE JUST ONE THING
. IT'S SEVERAL FACTORS THAT CAN
MAKE MAKE THE COST HIGHER, TOO.
UM ALSO, LAND PRICES ARE
GENERALLY MORE, UH, THEY THEY'RE
HIGHER IN PLACES LIKE THE BAY
AREA COMPARED TO SOME OF THE
OTHER MARKETS. I APPRECIATE
THAT, AND I DO APPRECIATE AGAIN.
THE SIMULATION TO OF THE TOWERS
OR TURNER TERRACE AS WELL
BECAUSE ITS A GOOD ILLUSTRATION
THAT IT'S OBVIOUSLY THERE'S NÓ
ONE SINGLE THING WE CAN GO FOR
IT. IT'S A PLETHORA OF DIFFERENT
THINGS. SO I THANK YOU AND THANK
THE CHAIR. THANK YOU, MR LEE, MS
REYES. COMPARISONS THE
COMPARISONS WE'RE USING HERE
HAVE TO DO WITH THE RENTAL
UNITS, RIGHT? THAT'S CORRECT. AS
OPPOSED TO HOME OWNERSHIP, SO
THE ISSUE IS NOT THE SAME WHEN
WE'RE TALKING ABOUT
HOMEOWNERSHIP. BECAUSE WHATEVER
INCREASED COST, THEY PASS IT ON
TO THE TO THE TO THE, UH, BUYER.
I THINK THAT'S TRUE TO A DEGREE
BECAUSE AT SOME POINT THOSE
COSTS CAN'T BE ABSORBED BY THE
BUYER. AND SO TO THE EXTENT WE
HAVE MAYBE A HIGH END OF THE
MARKET WHERE, UM AND MAYBE
LUXURY HOUSING THERE THERE
AREN'T THERE'S A FINITE NUMBER
OF PEOPLE WHO CAN ACTUALLY
AFFORD THAT. AND SO AT SOME
POINT, THE BUILDERS STOPPED
BUILDING BECAUSE THAT MARKET HAS
BEEN HAS BEEN SATURATED. AND SO,
UM, SO THE HOMEOWNERSHIP SIDE, I
THINK DEALS WITH A LOT OF THE
SAME CHALLENGES WITH INCREASED
COSTS AND UNCERTAINTY THAT MAKE
IT JUST GENERALLY MORE EXPENSIVE
AND TO, UM TO THE EXTENT THAT
DEVELOPERS CAN ACTUALLY AH REACH
MARKETS THAT, UM, THAT ARE NOT
QUITE AS HIGH END. THERE'S
ACTUALLY A LOT MORE DEMAND THERE
. AND A LOT OF, UH, FINANCIAL
PARTNERS WOULD PREFER TO SEE
DEVELOPERS BUILDING TO THAT SIDE
BECAUSE THERE'S A LOT LESS RISK
AND SO TO THE EXTENT WE CAN HELP
BRING DOWN THOSE COSTS YOU YOU
MIGHT SEE DEVELOPERS, UM,
ACTUALLY, NATURALLY REACHING
FURTHER DOWN NOT TO, YOU KNOW,
AFFORD AFFORDABILITY LEVELS THAT
WE'RE ACCUSTOMED TO WHEN WE TALK
ABOUT LOCAL HOUSING TAX CREDITS,
BUT JUST MORE ATTAINABLE
HOUSING. UH, BECAUSE THERE IS
JUST SUCH AN, UH UM, AN UNMET
DEMAND. AT THAT LEVEL OF THE
MARKET. ARE WE TALKING ABOUT?
SUBSIDIZING THEM? IS THAT THE
ONLY WAY WE'RE GOING TO BE ABLE
TO AFFORD THIS AFFORDABLE
HOUSING THAT WE'RE TALKING ABOUT
HERE? BECAUSE YOU YOU GAVE US AN
EXAMPLE ON THE RENTS BEING SO
HIGH THAT NÓ ONE'S GOING TO RENT
AT THAT LEVEL. SO IS ARE WE
TALKING ABOUT SUBSIDIZING SO
THAT WE CAN INCENTIVIZE
DEVELOPERS TO THEN BUILD
AFFORDABLE HOUSING, SO I THINK
AT THE LOWEST ENDS OF THE INCOME
SPECTRUM, THERE'S ALWAYS GOING
TO BE, UM THERE'S ALWAYS GOING
TO BE A NEED FOR SOME LEVEL OF
SUBSIDY BECAUSE THOSE PROJECTS
HAVE NEVER PENCILED OUT AND
THERE'S ALWAYS GOING TO BE, YOU
KNOW THE REQUIREMENT FOR LOW
INCOME HOUSING TAX CREDITS.
LOCAL AFFORDABLE HOUSING,
DOLLARS. AFFORDABLE HOUSING
DOLLARS CAN REFER THE STATE FOR
THAT, AND WHAT I WOULD PREFER
NOT TO SEE HAPPEN IS FOR THOSE
SUBSIDIES TO HAVE TO CREEP UP
THE INCOME SPECTRUM SO THAT
WE'RE HAVING TO DIRECTLY
SUBSIDIZE HOUSING THAT IF THE
MARKET WAS WORKING CORRECTLY
SHOULD BE SUPPLIED BY, UM BY BY
THE MARKET NATURALLY, SO BY
LOOKING AT THINGS LIKE, UH,
RIGHT SIZING OR OR ZONING, UM,
CUTTING COSTS THROUGH REGULATORY
REFORM. IDEALLY THE MARKET WOULD
BE ABLE TO RESPOND AND CREATE
HOUSING THAT'S MORE ATTAINABLE
THAN THE HOUSING THAT IS
GENERALLY, UH, PENCILING OUT
TODAY. SO UM, SO I NEED TO GO
BACK TO YOUR SPECIFIC QUESTION,
II. I DON'T THINK WE SHOULD BE
USING SCARCE RESOURCES TO
SUBSIDIZE, UH, HOUSING THAT, UM,
IN A WELL FUNCTIONING MARKET. UM
YOU KNOW, THE PRIVATE DEVELOPER
SHOULD BE PROVIDING THAT
ALREADY. SO IN THE EXAMPLE THAT
YOU'VE GIVEN WHAT CAN
POLICYMAKERS DO? YOU'RE TALKING
ABOUT DOING ALL FOUR OF THESE.
ONE BY ITSELF IS NOT GOING TO
ALLOW IT TO PENCIL OUT. AN
INTERESTING PHRASE. I LEARNED
THAT A FEW YEARS BACK TO PENCIL
OUT. YEAH AND I THINK THEY'RE
DOING THIS WORK. I THINK IT'S
COME CLEAR. THERE'S NÓ. UM
THERE'S NÓ. UH UH, SINGLE ANSWER
TO MAKING A PROJECT PENCIL AND
IT ALL IS REALLY DEPENDENT ON
THE MARKET ITSELF. SO IT'S
REALLY A COMBINATION OF THINGS
THAT CITIES AND POLICYMAKERS
SHOULD BE CONSIDERING, UM TO
CUMULATIVELY MAKE THE PROJECTS
PENCIL OUT BETTER. UM, THERE WE
DO A LOT OF THIS WORK, NOT JUST
ON A CASE BY CASE BASIS, BUT
ACROSS CITIES, SO WE HAVE A
HOUSING, UH, SUPPLY SIMULATOR
THAT WE'VE BUILT FOR THE CITY OF
LOS ANGELES AND ARE BUILDING FOR
OTHER CITIES. AND THE TAKEAWAY
WE'VE LEARNED THERE IS, UM YOU
CAN'T JUST, YOU KNOW, PULL ONE
LEVER AND EXPECT ALL OF THIS
HOUSING TO BE UNLOCKED. YOU
REALLY NEED TO TINKER WITH IT.
SEE WHICH, UH, WHICH LEVERS WILL
ACTUALLY GET YOU CLOSEST THERE
AND ALSO THINK ABOUT WHAT ARE
THE OTHER COMPLEMENTARY POLICY
GOALS THAT YOU WANT TO ACHIEVE
AS WELL SO IT'S NOT JUST LIKE
TAKING AWAY ALL THE REGULATION.
IT'S REALLY BALANCING IT ALL SO
THAT THE MARKET CAN WORK THE WAY
IT'S SUPPOSED TO. AND WE CAN
START BUILDING MORE HOMES LIKE
WE USED TO, UH, YOU KNOW, 40
YEARS AGO. AND SOMETHING THAT
YOU MENTIONED EARLIER. WE TALKED
ABOUT THE COST OF LABOR. WE
CERTAINLY DON'T WANT TO AFFECT
THAT BECAUSE WE WANT GOOD UNION
JOBS. UH, WE TALK ABOUT
ENVIRONMENTAL IMPACT STUDIES AND
HOW THOSE ALSO INCREASE THE COST
. WE DON'T WANT TO REDUCE THOSE
EITHER. THESE ARE PROTECTIONS OF
CALIFORNIA NEEDS A SEISMIC. UM
UH UH, RETROFITS AND THE
REGULATIONS REGARDING, UM WE
LIVE IN EARTHQUAKE COUNTRY. WE
HAVE TO BE SURE THAT EVERYBODY
IS SAFE. SO WITHOUT CHANGING THE
POLICY REGARDING THOSE THINGS.
AND I KNOW IT'LL BE FOR ANOTHER
CONVERSATION. BUT THAT'S WHAT
I'M LOOKING AT. WHAT IS IT
SPECIFICALLY, WE CAN DO THAT IS
GOING TO BRING IT DOWN TO THE
LOCAL LEVEL SO THAT THEY CAN
THEN STREAMLINE AS WE'VE TALKED
ABOUT, UM, BUT THEN THEY ALSO
WANT THEIR FEES BECAUSE THAT'S
PART OF THEIR BUDGET AND ALL
RIGHT? YEAH SO, UM, THERE'S A
THERE'S A LOT TO FIGURE OUT HERE
BECAUSE IT'S NOT AS EASY AS
HERE'S A CHECKLIST OF THINGS
TAKE THEM OFF, AND THEN THE
PROJECTS WILL WORK. I THINK
THERE'S UM A QUESTION OF HOW DO
WE WANT TO, UM APPROACH THIS
FROM A WAY THAT WILL NOT CREATE
UNSAFE OR UNSTABLE HOUSING THAT
WILL NOT CREATE HOUSING THAT IS
ACTUALLY KIND OF A NOT NOT A NET
BENEFIT. AND THE WAY WE DO THAT,
I THINK IS WITH COMPREHENSIVE
PLANNING PROCESSES AT THE FRONT
END, UH OF A PLANNING CYCLE. SO
THAT, UM, IN A LOT OF CITIES,
YOU'RE DOING THIS RIGHT NOW,
WITH THEIR HOUSING ELEMENT, AND
THEIR REGIONAL HOUSING NEEDS
ASSESSMENT. UM, GOALS. YOU KNOW,
THEY'RE DOING THIS REALLY OR
THEY WILL BE DOING SHORTLY. THIS
REALLY GREAT PLANNING WORK TO
IDENTIFY THE WHERE WE WANT
HOUSING THE KIND OF HOUSING HOW
LITTLE HELP THEM REACH THE ARENA
GOALS. AND SO TO THE EXTENT THAT
WE'RE DOING ALL THAT WORK UP
FRONT, WE'RE GOING TO BE
REACHING OUT TO COMMUNITY
MEMBERS, UM, WITHOUT ANY
SPECIFIC CHANGES, A DEVELOPER
CAN COME IN. AFTER ALL THAT WORK
HAS BEEN DONE AND STILL BE
CHALLENGED. UNDER ENVIRONMENTAL
LAW. THEY CAN STILL FACE YEARS
OF, UH, OF DELAY AND, UM, AND
UNCERTAINTY. AND SO WHAT I WOULD
LOVE TO SEE IS ALL OF THIS GREAT
WORK THAT'S HAPPENING AT THE
LOCAL LEVEL SOME WAY TO CODIFY
THAT IN THE PLANNING PROCESS SO
THAT YOU KNOW WE DID ALL THIS
WORK FOR THE HOUSING ELEMENT. WE
DID ALL THE REZONING DO. THEN
HAVE TO GO BACK THROUGH THE
ENVIRONMENTAL REVIEW PROCESS IF
WE ALREADY DID THAT FOR A
COMMUNITY WIDE PLAN, SO IT'S NOT
NECESSARILY STRIPPING AWAY THOSE
PROCESSES TO CREATE PROTECTIONS.
IT'S REALLY MAKING THEM MORE
EFFICIENT AND EFFECTIVE AT THE
FRONT END SO THAT A DEVELOPER
CAN COME IN WITH CERTAINTY BUILD
TO THE STANDARD THAT THE CITY
SAYS THAT THEY WANT TO SEE AND
NOT HAVE TO, UM, KIND OF AAA RUN
INTO DELAYS, EVEN THOUGH THEY
ALREADY WENT THROUGH THAT
PLANNING PROCESS. AND WHEN WE'RE
TALKING ABOUT ENVIRONMENTAL
REPORTS THAT HAVE ALREADY BEEN
DONE, WE KNOW THAT OFTEN TIMES
OUR LOCAL JURISDICTIONS ALSO
OVERRIDE ENVIRONMENTAL IMPACT
REPORTS BECAUSE THEY'LL SAY THAT
THE ECONOMIC GAIN IS GREATER
THAN WHATEVER. UM UH, HEALTH
HAZARD IS BEING CREATED. THAT
WOULD BE A CONCERN FOR ME. UM
BUT I UNDERSTAND WHAT YOU'RE
SAYING. IF IT'S ALREADY BEEN
DONE, WHY DO IT AGAIN? BUT IF
IT'S BEEN DONE, IT'S BEEN AND
YOU OVERRIDE IT JUST TO BECAUSE
OF THE ECONOMIC GAME. THAT'S NOT
A GOOD REASON. SURE AND I. I
DON'T WANT TO IMPLY THAT WE
WOULDN'T. UM UH UH, WANT TO? UM
AND INCENTIVIZE POOR PLANNING AT
THE FRONT END, AND I THINK
ANYTHING THAT HAS TO DO WITH
HEALTH AND SAFETY WE HAVE SEEN
IN A LOT OF THE HOUSING
LEGISLATION PASSED RECENTLY THAT
THERE ARE EXCEPTIONS TO THAT. SO
YOU CAN'T UM, YOU KNOW, BUILD
HOUSING THAT'S GOING TO BE
UNSAFE TO THE RESIDENTS THAT
LIVE THERE OR RESIDENTS IN THE
SURROUNDING AREAS. I THINK
THAT'S THAT'S VERY IMPORTANT. SO
AGAIN. IT'S REALLY BALANCING THE
NEED FOR THE CREATION OF THAT
HOUSING WITH, UM THE DESIRE AND
THE NECESSITY TO MAKE SURE THAT
HOUSING NOT NET HARM TO THE
EXISTING COMMUNITY. MY FINAL
QUESTION, MR CHAIR. YOU YOU'VE
WORKED WITH MANY COMMUNITIES
THROUGHOUT CALIFORNIA. CAN YOU
NAME A FEW OF THE CITIES THAT
YOU FEEL ARE DOING IT? RIGHT UH,
SOME OF THE CITIES THAT WE NEED
TO LOOK AT? BECAUSE IF WE'RE
LOOKING AT WHAT THEY HAVE DONE
LOCALLY AND HOW WE CAN THEN
IMPLEMENT THAT STATEWIDE, WHICH
WHICH ARE SOME OF THOSE CITIES
YEAH, AND THANKFULLY WE'RE GONNA
HEAR FROM A FEW OF THEM LATER,
UM, IN IN THE HEARING WHERE? THE
CITY OF SAN DIEGO, UM, I
CONSIDER TO BE ONE OF THE MODELS
FOR CITIES THAT, UM, CREATE, UM,
KIND OF, UH UH, THEY'RE
PROACTIVE IN THEIR èC. OF
POLICY TO HELP FACILITATE GROWTH
THERE AND MANY TIMES THE
POLICIES WE'VE SEEN ENACTED IN
SAN DIEGO HAVE BEEN MODELS FOR
LEGISLATION THAT HAVE BEEN
PASSED HERE IN SACRAMENTO ON THE
CITY OF SACRAMENTO. UM HèA HAS
DONE SOME GREAT WORK AS WELL. UM
UH AND I, I THINK IF YOU LOOK AT
THE STATE, UM, PRO HOUSING
DESIGNATION PROGRAM, YOU CAN SEE
A LOT OF CITIES ARE ARE REALLY
TRYING TO WORK PROACTIVELY TO
IMPLEMENT SOME OF, UH, POLICIES
THAT WE KNOW WILL WILL MOVE THE
NEEDLE ON HOUSING SUPPLY. AND SO
THERE'S A, UH, PROBABLY MORE
CITIES THAN I. I CAN REMEMBER
THAT THAT I THINK ACTIVELY
TRYING TO DO MORE TO GET, UM TO
MEET THEIR HOUSING GOALS.
WONDERFUL. THANK YOU. THANK YOU,
MR CHAIR. THANK YOU, MS. DON'T
BE SHY WITH QUESTIONS. WE HAVE A
PROBABLY THE BIGGEST ISSUE
FACING CALIFORNIANS IN OUR OUR
CONSTITUENTS IN FRONT OF US, SO
I APPRECIATE THE DEPTH THAT
WE'RE GOING INTO MISS SILVA.
THANK YOU. GOOD MORNING, AND I
REALLY APPRECIATE THIS, UH,
PRESENTATION VERY WELL DONE, AND
ALSO THE QUESTIONS FROM MY
COLLEAGUES. SOME OF THEM WERE
THE VERY SAME ONES THAT I HAD.
UM IF WE WERE TO GO THROUGH THE
VERY LAST PAGE OF YOUR
PRESENTATION ON WHAT CAN
POLICYMAKERS DO WHEN YOU'RE
TALKING ABOUT REDUCING FEES,
WHICH TYPES OF FEES ARE YOU
TALKING ABOUT? SPECIFICALLY IT
COULD BE ANY FEES, SO THAT WAS
JUST KIND OF AN ARBITRARY NUMBER
THAT I THAT WE PICKED FOR THE
SAKE OF THE EXERCISE. BUT IF WE
WERE THINKING ABOUT DIFFERENT
FEES. I MEAN, UM, IT COULD BE,
UM, YOU KNOW ANY OF THE
DIFFERENT TYPES OF FEES THAT
CITIES REGULARLY CHARGE ALL OF
THAT WITH THE RECOGNITION THAT A
LOT OF CITIES RELY ON THESE FEES
TO PAY FOR CRITICAL
INFRASTRUCTURE UPGRADES, AND SO
A LOT OF THIS COMES DOWN TO
WHETHER OR NOT CITIES CAN, UH,
WANT TO REDUCE THOSE FEES
THEMSELVES AND IF THEY COME UP
WITH A WAY TO BACKFILL THOSE
FEES OR DEFER ON WHAT THOSE FEES
WOULD PAY FOR, UM, AND SO WE
DIDN'T HAVE ANY SPECIFIC FEES IN
MIND WHEN WE KIND OF PICK THAT
NUMBER TO LEAVE, UM, ASSEMBLY
MEMBER TIM GRAYSON DIDN'T WORK
ON ON SOME IMPACT FEES THROUGH
LEGISLATION ALREADY RIGHT AND
HAS THAT. MADE A DIFFERENCE AT
ALL. SO I GUESS WHAT I'M TRYING
TO ASK IS THE LITTLE SLIVERS
THAT WE'VE DONE, WHICH WE CAN
VERY CLEARLY SEE. WE HAVE NOT
DONE ENOUGH. HAVE YOU STARTED TO
SEE THE WORK? YEAH AND I THINK
YEAH, WE'RE GONNA HEAR FROM THE
CITY OF SACRAMENTO LATER THAT
HAS DONE A LOT OF WORK ON IMPACT
FEES AND TRYING TO FIGURE OUT
WHAT IS THE RIGHT BALANCE FOR
PAYING FOR CRITICAL SERVICES,
BUT ALSO NOT STYMIEING NEW NEW
DEVELOPMENT. UM THERE HAS BEEN
MOVEMENT TO TRY AND MOVE FEES
FROM LIKE A PER UNIT BASIS TO
MORE OF A SQUARE FOOTAGE BASIS,
WHICH I THINK MAKES A LOT OF
SENSE BECAUSE ON A PER UNIT
BASIS YOU REALLY, UM UH
PENALIZING OR ADDING MORE COSTS
TO PROJECTS THAT MAY HAVE MORE
UNITS, BUT JUST SMALLER IN SIZE?
UM VERSUS UH UM LARGE LUXURY
UNITS THAT ONLY PAY, YOU KNOW A
FRACTION OF THE OVERALL FEES
SIMPLY BECAUSE THE NUMBER OF
UNITS IS DIFFERENT. SO I DO
THINK WE ARE SEEING CITIES MOVE
IN THAT DIRECTION, AND THERE ARE
OTHER THINGS AROUND FEES THAT
CITIES CAN DO RATHER THAN JUST,
UM, WEAVING THEM OUT, RIGHT?
THEY CAN, UM, ALLOW FEES TO BE
PAID AT CERTIFICATE OF
OCCUPANCY. NOT WHEN THE PROJECT
IS COMING IN FOR APPROVAL. UM
THEY CAN, UM YOU KNOW, THERE ARE
OTHER, I THINK, UH, WAYS TO
RIGHT SIZE THE FEE IMPOSITION,
UM, AND CALCULATION THAT A LOT
OF CITIES ARE THINKING ABOUT
NOW. SO THEN GOING TO THE
REDUCED PARKING AGAIN. I BELIEVE
WE HAD, UH, AT LEAST ONE BILL
LAST YEAR BY ASSEMBLY MEMBER
LAURA FRIEDMAN. UH, THAT
PROBABLY HASN'T BEEN INSTITUTED
YET. BUT IS THAT SOMETHING THAT
YOU'RE HOPEFUL? UH, THAT COULD
START TO ADDRESS THIS PARKING OR
DO WE HAVE, UM, QUITE A WAYS TO
GO BECAUSE THAT MIGHT HAVE BEEN
AND I CAN'T REMEMBER, BUT IT
MIGHT HAVE BEEN REFERRING TO
AFFORDABLE HOUSING. YEAH, I
BELIEVE SOMEONE COULD BE WRONG,
BUT I BELIEVE A 2097. TO ALL
FORMS OF HOUSING. AND SO, UM IN
THEORY, A DEVELOPER NOW CAN
BELIEVE IT'S SPECIFIC TO AREAS
THAT HAVE ACCESS TO TRANSIT. UM
CAN REDUCE THE AMOUNT OF PARKING
THAT THEY WOULD PROVIDE ON SITE
TYPICALLY, AND SO, UM A LOT OF
CITIES HAVE PROACTIVELY TRIED TO
RECALIBRATE THEIR PARKING
REQUIREMENTS, PARTICULARLY IN
AREAS WHERE THERE'S ACCESS TO
TRANSIT SO THAT DEVELOPERS DON'T
HAVE TO OVERBUILD THEIR PARKING.
UM AT THE AT THE SAME TIME, YOU
KNOW, NOT EVERY CITY HAS GONE
THROUGH THAT EXERCISE. IT'S NOT
AS SIMPLE AS SAYING. ALL RIGHT,
WE'RE JUST GETTING RID OF OUR
OUR PARKING REQUIREMENTS. AND SO
I DO THINK 2097 WILL BE THE
IMPETUS THAT SOME CITIES NEED TO
REALLY RETHINK HOW THEIR PARKING
REQUIREMENTS ARE ARE CURRENTLY
STRUCTURED AND TO TRY AND CREATE
A POLICY THAT IS MORE REFLECTIVE
OF WHAT THE MARKET WANTS TO SEE
IN PARKING. ALL RIGHT. SO UH,
WITHOUT FINISHING THE LAST TWO
ON THIS LIST, UH, AND WE TALKED
ABOUT. RENTALS AND WHAT TYPE OF
HOUSING RELATED TO MARKET RATE.
I'M LOOKING AT ASSEMBLY MEMBER
TIM GRAYSON HERE BECAUSE WE DID
DO A HOUSING TOUR A FEW YEARS
BACK WHERE WE KIND OF VISITED
THROUGHOUT THE STATE AND ONE OF
THE THINGS THAT CAME OUT FOR ME
THROUGH THAT VISIT WAS THAT WE
NEED TO BE INVESTED IN BUILDING
ALL TYPES OF HOUSING FOR MARKET
RATE TO AFFORDABLE BECAUSE WE
HAVE SO MANY RENTERS STUCK. IN
APARTMENTS. I SHOULDN'T SAY
STUCK. I SHOULD SAY LIVING IN
APARTMENTS AND AREN'T ABLE THEN
TO MOVE OUT INTO THAT SINGLE
FAMILY HOME. UH WHICH IS WHY WE
HAVE THOSE VERY HIGH RENTS, UH,
WITH THAT, AND I KNOW THAT, UH,
ASSEMBLY MEMBER REYES JUST KIND
OF ASKED LIKE, WHO'S DOING A
GOOD JOB. AND WE WILL HEAR NEXT
FROM THE, UH TO INDIVIDUALS. BUT
IS THERE A WHOLE ANOTHER TYPE OF
, UH, HOUSING PER UNIT? I GUESS
THAT WE AREN'T EVEN ADDRESSING,
UH, THAT WE CAN BUILD FAST AND
GET ON. UH, BECAUSE YESTERDAY WE
JUST HAD A HOMELESS. UM WHICH IS
THE OTHER PART OF THIS A
HOMELESS? UH, DISCUSSION AND
YOUR FIRST SLIDES. REALLY OF
COURSE, UM, ARE STARTLING, WHICH
THEY'RE NOT A SURPRISE TO ANY OF
US THAT HAVE WORKED IN HERE. BUT
JUST ABOUT US, NOT, UH, GETTING
PERMITS AND BUILDING. SO IS
THERE ANY OTHER WAY TO BUILD
THAT, UH, IS NOT EVEN PART OF
WHAT YOU'VE ADDRESSED HERE
BECAUSE THESE ARE TRADITIONAL.
TYPES OF BUILDINGS. YEAH THAT'S
A REALLY GOOD QUESTION. AND UM,
ONE THAT WE'VE BEEN DOING SOME
THINKING ON, AND I ACTUALLY
THINK THERE ARE SOME, UM SOME
NEW MODELS OF DEVELOPMENT THAT
ARE VERY DIFFERENT THAN WHAT I
HAVE DESCRIBED HERE THAT HAVE
THE POTENTIAL TO PROVIDE MORE
AFFORDABLE HOUSING WITHOUT
LEVERAGING EXISTING SUBSIDIES.
SO FOR EXAMPLE, THERE ARE
PRIVATE DEVELOPERS WHO ARE
WORKING WITH HOUSING AUTHORITIES
TO LEVERAGE HOUSING CHOICE
VOUCHERS, UM, TO PROVIDE HOUSING
THAT AFFORDABLE TO UNDER 80% EM.
I SO TRADITIONAL, AFFORDABLE
HOUSING THAT WAY WITHOUT USING
INCOME HOUSING TAX CREDITS, AND
SO, UM, THERE'S A LOT OF THIS
WORK HAPPENING IN THE CITY OF
LOS ANGEL. THERE ARE SOME
DEVELOPERS IN THE BAY AREA WHO
ARE TRYING TO, UM KIND OF CREATE
A NEW FORM OF MATH TO BUILD MORE
. UM UH, MIDDLE INCOME HOUSING,
AT LEAST WITHOUT REQUIRING
SUBSIDIES. UM, AND THERE'S UH,
I. I THINK A LOT OF POTENTIAL
THERE BECAUSE, AS I MENTIONED
EARLIER, UM THERE IS A HUGE
UNMET DEMAND FOR HOUSING ACROSS
THE INCOME SPECTRUM, BUT
PARTICULARLY IN IN IN THE MIDDLE
INCOME SPHERE WHERE WE ARE, I
DON'T THINK EVER GOING TO
ALLOCATE SUBSIDY DOLLARS, BUT
THE MARKET SHOULD BE WORKING
BETTER TO PROVIDING HOUSING TO
THOSE HOUSEHOLDS AS WELL. SO
THEY'RE THEY'RE, UH, AGAIN
LOOKING AT, UM UH, PARTNERING
WITH PUBLIC HOUSING AUTHORITIES
ARE LOOKING AT, UH, LEVERAGING,
UH, PROPERTY TAX EXEMPTIONS THAT
HAVE TRADITIONALLY ONLY BEEN
AVAILABLE TO LOCUM HOUSING TAX
CREDIT PROJECTS. SO ALL OF THESE
ARE KIND OF RECALIBRATING THE
MATH TO TRY AND GET MORE
PROJECTS TO WORK AND BECAUSE
THEY ARE, UM PRIVATE MARKET
PROJECTS. THERE'S POTENTIAL
THERE TO REALLY SCALE IT UP AND
SEE A NEW, UM, FORM OF
AFFORDABLE HOUSING BUILT
ALONGSIDE OUR TRADITIONAL, UM,
UM, AFFORDABLE HOUSING
MECHANISMS. THANK YOU. THANK
YOU, MS CORK, SILVA. I WANT TO
WALK INTO THE HEARING ROOM. I
UNDERSTAND. WE HAVE A NUMBER OF
STUDENTS HERE FROM SAINT
STEPHEN'S SCHOOL IN SAN
FRANCISCO. WANNA WELCOME YOU TO
THE CAPITOL? IMAGINE YOU'RE HERE
TO SEE HOW THE LEGISLATURE
WORKS. AND TODAY WE'RE
DISCUSSING THE, UH AFFORDABILITY
OF HOUSING AND THE COST OF
DEVELOPMENT AND TRYING TO MAKE
SURE THAT WE'RE, UH UH,
AFFECTING BETTER POLICIES TO BE
ABLE TO SUPPORT OUR FUTURE
GENERATIONS. SO WELCOME TO THE
CALIFORNIA STATE ASSEMBLY. UM
WELL, THANK YOU, UH, MEMBERS FOR
YOUR QUESTIONS, UM, DEEPLY
INFORMATIVE. AND I HAVE A COUPLE
THAT, UM, CERTAINLY WERE
ADDRESSED. I THINK BY OTHER
MEMBERS AS WELL, UM, BUT, UH UH
AND I DO WANT TO GET TO OUR NEXT
SECTIONS THAT WE'LL TALK BOTH
ABOUT. YOU KNOW SOME PRO HOUSING
CITIES THAT ARE DOING WORK THAT
ARE SHOWING RESULTS TO SORT OF
UNLOCK. YOU KNOW SOME OF THE
CHALLENGES THAT THAT AND THE
HEADWINDS THAT WE'RE FACED WITH
AND AS WELL, UH, A CASE STUDY ON
A SAMPLE PROJECT THAT'S SHOWING
REMARKABLE RESULTS AT REDUCING
COSTS. UM, BUT ON HIGH LEVEL, MR
TURNER. MR GARCIA, UM, THE BACK
KIND OF TO YOUR FIRST SLIDE AND,
UH, DOVETAILING ON MR LEE'S
QUESTION, YOU KNOW WHEN WE'RE
LOOKING AT SOME OF THESE OTHER
STATES, UM THAT I, I JUST I
WONDER IF, UH YOU KNOW, WE ARE
KIND OF BENCHMARKING OURSELVES
AGAINST OTHER STATES WITH VERY
DIFFERENT LANDSCAPES. RIGHT ARE
THEY PRODUCING A LOT MORE
HOUSING UNITS? YES BUT ARE THEY
DOING SO IN A WAY THAT'S
INDUCING SPRAWL. THAT HAS A LOT
MORE. YOU KNOW, GREENFIELD
OPPORTUNITY A LOT MORE FLAT. AND
AN AVAILABILITY. UM AND WE'VE
GOT A CONTEXT HERE IN CALIFORNIA
THAT HAS SOME GEOGRAPHIC
CONSTRAINTS THAT WE DO, BUT ALSO
WHEN WE THINK ABOUT THE
DEVELOPMENT PATTERN THAT WE HAVE
ENDURED, UH OR EXPERIENCED OVER
THE LAST COUPLE OF DECADES, YOU
KNOW FOR WORKERS IN LOS ANGELES,
YOU CAN ONLY GO SO FAR INTO THE
INLAND EMPIRE RIGHT BEFORE IT
BECOMES NOT A REASONABLE PLACE
TO PURCHASE BECAUSE YOU'RE MORE
THAN TWO HOURS AWAY FROM WHERE
YOU WORK. UM AND SO WE ARE
REALLY POTENTIALLY DO WOULD YOU
AGREE? A POINT WHERE WE HAVE TO
THINK ABOUT INFILL, AND WE HAVE
TO THINK ABOUT HOW TO WORK ON
EXISTING LANDSCAPE? UH IN A WAY
THAT'S GONNA PRODUCE HOPEFULLY
THE SAME LEVEL OF HOUSING
PRODUCTION. AND IN THAT VEIN,
WHAT ARE SOME OTHER AREAS AND
POSSIBLY GETTING OUTSIDE OF THE
UNITED STATES? THAT THAT YOU
MIGHT, YOU KNOW, LOOK TO, UM TO
BE ABLE TO LEARN LESSONS FROM IN
IN A VERY SIMILAR LAND. USE
CONTEXT. YEAH THAT'S AN
EXCELLENT POINT. UM CHAIR AND I,
UM I DEFINITELY DON'T WANT TO
CONFLATE THE GROWTH IN OTHER
STATES THAT HAVE LESS. UM LET'S
SAY, UH, RESTRICTIVE LAND USE
POLICIES TO WHAT CALIFORNIA
SHOULD BE DOING BECAUSE OF THE,
UH, THE GEOGRAPHIC CONSTRAINTS
YOU MENTIONED, BUT ALSO THE
DEVELOPMENT PATTERN ITSELF. UM
I. I WOULD SAY, YOU KNOW, IT IS
NOT, UH, JUST, UM, SOME OF THOSE
PEER STATES I MENTIONED THERE
ARE OTHER STATES THAT FACE
SIMILAR GEOGRAPHIC CHALLENGES
THAT ARE ALSO THAT ARE BUILDING
HOUSING AT A FASTER CLIP THAN
CALIFORNIA. SO UM, YOU DIDN'T
SEE THE WHOLE CHART, BUT ABOVE
CALIFORNIA WAS ALSO THE STATE OF
OREGON. UM THE STATE OF
WASHINGTON. AND THESE ARE STATES
THAT HAVE VERY SIMILAR HOUSING,
DYNAMICS AND GEOGRAPHIC
CHALLENGES THAT WE HAVE. SO IT'S
NOT JUST LIKE A FLORIDA TEXAS
THING. UM AND SO, UH, I, I AGREE
WITH YOU THAT I SIMPLY BUILDING
UH, OUT IS NOT THE SOLUTION. I
THINK WE SHOULD CONSIDER A
REASONABLE GROWTH ON ON THE
OUTER PARTS OF CITIES BUT ALSO
KNOW THE HIGHEST, UH, DEMAND IS
GENERALLY SPEAKING IN THE COURSE
OF OUR URBAN AREAS, AND TO THE
EXTENT THAT WE CAN FACILITATE
INFO GROWTH IN THESE PLACES, UM,
THAT'S GONNA PROVIDE BETTER
OUTCOMES. FROM A CLIMATE
PERSPECTIVE, BETTER OUTCOMES
FROM UM SOCIO ECONOMIC
PERSPECTIVE BECAUSE WORKERS CAN
BE CLOSER TO, UM, THEIR THEIR
PLACE OF EMPLOYMENT. UM AND, UH
AND WE CAN MAKE USE OF EXISTING
INFRASTRUCTURE IN BETTER WAYS.
AND SO PART OF THAT IS NOT JUST
MAKING THE MARKET WORK BETTER.
BUT ALSO EXPLORING WHAT, UM,
WHAT THE AVAILABILITY OF LAND IS
IN THESE PLACES, AND THAT'S PART
OF WHAT I THINK CITIES ARE DOING
RIGHT NOW. THERE'S A THROUGH
THEIR HOUSING HELMET PROCESS,
BUT ALSO EXAMINING ARE THERE UM
UH, EXISTING, UH, EXISTING LAND
OWNED BY GOVERNMENT, UH,
ENTITIES THAT CAN BE LEVERAGED
FOR AFFORDABLE HOUSING THAT ARE
AN INFILL LOCATIONS. UM, ARE
THERE DIFFERENT MODELS THAT WE
CAN LOOK AT TO LEVERAGE SOME OF
THAT, UM, SOME OF THAT LAND IN
IN IN BETTER WAYS, AND SO, UM,
THERE ARE SOME MODELS THAT ARE
EMERGING, UM, THAT ARE IN FULL
FOCUSED, UM, THAT ARE NOT
TRADITIONAL, UM, KIND OF A
DEVELOPMENT MODEL. SO FOR
EXAMPLE, THE BAY AREA HOUSING
FINANCE AGENCY IS, UM, IS
LOOKING AT PRESERVING AND
CREATING NEW FORMS OF AFFORDABLE
HOUSING THROUGHOUT THE BAY. UH
UM, I KNOW, UH, ASSEMBLY MEMBER.
LEE HAS A BILL ON SOCIAL HOUSING
, AND I THINK THERE'S A LOT OF
EXCITING THINGS HAPPENING ACROSS
THE COUNTRY ON HOUSING
AUTHORITIES EXPLORING THEIR, UM,
LEVERAGING THEIR ASSETS AND
THEIR, UM YOU KNOW THEIR THEIR
EXPERTISE TO BUILD, UH, HOUSING,
UH, ON ON THEIR SITES AS WELL.
SO I DO THINK THERE IS A LOT OF
DIFFERENT WAYS WE COULD BE
APPROACHING THIS SO NOT SOLELY
LIKE A MARKET, YOU KNOW,
DYNAMIC, BUT THERE'S A LOT OF
CREATIVITY THAT IS TAKING PLACE.
UM YOU KNOW, NOT JUST IN OTHER
PLACES. BUT EVEN HERE IN
CALIFORNIA THAT WE SHOULD BE
LOOKING AT. MORE MORE
HOLISTICALLY AND I AGREE AS WELL
. AND I THINK THAT YOU KNOW,
GIVEN ONE OF THOSE REALITIES,
AND WE TALKED EARLIER ABOUT
ENVIRONMENTAL CONCERNS, LABOR
CONCERNS OTHER LOCAL GOVERNMENT
CONCERNS THAT ARE OUT THERE AND
WE ALWAYS ARE RECONCILING. I
THINK A LOT OF THOSE IMPORTANT,
UH, PERSPECTIVES AND
CONSEQUENCES THAT YOU KNOW, WE
NEED TO THINK ABOUT TO HAVE. AS
YOU SAID, YOU KNOW, THESE
COEQUAL GOALS THAT WE'RE TRYING
TO MEET AS A STATE. UM BUT GIVEN
ONE REALITY THAT WE JUST HAVE,
UH AND ALSO, I THINK ONE THAT
IS, UH, CLIMATE FOCUSED, UH, YOU
KNOW, TRYING TO INVOKE POLICIES
THAT ARE GOING TO SUPPORT THAT
INFILL. A MAN AND REALLY HELP
TO, UH IMPROVE. I THINK EXISTING
THE EXISTING FABRIC OF WHAT WE
HAVE TO WORK WITH. AND
EVERYTHING IS THE EMPHASIS THAT
WE WANNA GO, BUT NOT NOT THE
TOTALITY OF WHERE WE GO WITH
HOUSING POLICY. UM I AGREE WITH
YOU ON THE FACT THAT WE GOT TO
GET TO A STATU RECENT POINT OF
NEW PRODUCT OF MORE PRODUCTION
THAT LEADS TO MORE OPENINGS,
MORE VACANCIES HELPING TO
PRODUCE, YOU KNOW, UH, STABLE
MARKET, UM, RENTS AND I'M
WONDERING, GIVEN KIND OF WHERE
THINGS HAVE GOTTEN, I WOULD SAY,
UH, OUT OF CONTROL AND THE
PRICING OR THE AVAILABILITY.
CONSUMERS YOU KNOW, HAVE WE
GOTTEN TO A POINT THAT, UH IF WE
IF YOU WERE SEEN AS IN
SACRAMENTO, MAYBE THE EARLY
SIGNS OF IT SOME PARTS OF SAN
DIEGO. I KNOW OAKLAND. WE'VE
SEEN REDUCED RENTS OVER THE LAST
YEAR, BUT, UM, WHEN YOU DO THAT,
FROM A FINANCING PERSPECTIVE,
ARE YOU REDUCING ALSO THE
RESIDUAL VALUE OF, UH OF
POTENTIAL NEW OPPORTUNITY SITES?
UM, BECAUSE YOU'RE NOT ABLE TO
MAKE AS MUCH AS SORT OF HIT THE
SATURATION THAT THE MARKET IS
SHOWING THAT YOU KNOW, YOU'RE
ONLY ABLE TO GET SO MUCH INCOME.
AND IF YOU DO THAT IT REDUCE
LAND VALUE. BUT THEN IS THAT
GONNA INVOKE MAYBE A RELUCTANCE
FOR NEW SITES TO OPEN UP BECAUSE
THEY DON'T WANNA SELL. UM THAT'S
THOSE ARE A GREAT POINTS AND
KIND OF, UH, YOUR YOUR
UNDERSCORING THE FACT THAT
THERE'S A LOT OF NUANCE IN IN
THE MARKET HERE, AND I THINK,
UM, YOU KNOW WHAT? I WHAT I
WALKED THROUGH EARLIER WAS
REALLY A PROJECT AT THE HIGH END
OF THE MARKET. AND AS I
DESCRIBED, THERE'S ONLY SO MUCH
DEMAND THERE SO TO THE EXTENT
THAT WE CAN CREATE OPPORTUNITIES
TO PRODUCE HOUSING THAT IS NOT
QUITE SO EXPENSIVE. THERE'S A
HUGE DEMAND FOR THAT. AND SO, UM
, RATHER THAN THINK ABOUT, OK,
IF WE, UM YOU KNOW, CREATE
ENOUGH HOUSING AT THE AT THE TOP
END THE SPIGOTS GONNA TURN OFF
ORANGE IS NOT GONNA MORE MORE
HOMES BUILT. I ACTUALLY THINK IF
WE ARE ABLE TO PROVIDE HOUSING
THAT IS GENERALLY ATTAINABLE TO
THE 80 TO 120% AMI CROWD. UM,
THERE ARE A LOT OF FOLKS WHO WHO
WOULD LOVE TO BUILD THAT
PRODUCT, BUT BECAUSE OF THE
COSTS ARE SO HIGH, THEY JUST
THEY JUST CAN'T REACH THAT, UM,
THAT THERE AND I'VE SPOKEN TO A
NUMBER OF FOLKS WHO, UM, TELL US
THAT THEIR EQUITY PARTNERS WOULD
ACTUALLY TAKE A SLIGHTLY LOWER
RETURN IF THEY WERE ABLE TO, UM,
UH, PRODUCE HOUSING AT THAT MORE
MIDDLE INCOME TIER. UM, BECAUSE
THE VACANCIES ARE SO LOW THERE
AND THEY CAN GUARANTEE THAT THEY
ARE GOING TO GET THOSE UNITS
FILLED QUICKLY. SO, YEAH, I
THINK, UM, THERE'S UM THERE.
THERE'S A WIDE RANGE OF, UH OF
UNITS THAT COULD BE PRODUCED BY
CREATING THE RIGHT POLICY
CONDITIONS. UM, THAT WOULD
CONTINUE TO FACILITATE HOUSING
CONSTRUCTION, EVEN IF WE KIND OF
SATURATE THAT TOP END OF THE
MARKET, UM ON ON THE FUNDING. I
SHARE YOUR CONCERN, TOO, ABOUT
THE NEED TO RELY MORE AND MORE
ON PRIVATE EQUITY AND THE COST
THAT THAT GOES INTO AGAIN
ABSORBED BY THE ULTIMATE
DEVELOPMENT AND THOSE THOSE THAT
RENT FROM THAT DEVELOPMENT. UM
WHAT ARE SOME THINGS THAT WE CAN
DO? I GUESS TO MAKE THE
ENVIRONMENT MORE FRIENDLY FOR
BANKS TO, UH, CONSIDER UPPING
THE RATIO IN CALIFORNIA FROM
GOING TO 55 BACK TO A 75% LOAN
TO VALUE. UM, THAT'S A GREAT
QUESTION. SO I THINK A LOT OF,
UM WHAT FINANCING PARTNERS WANT
TO SEE IS A LOT MORE CERTAINTY
IN THE DEVELOPMENT PROCESS. SO
TO THE EXTENT THAT WE CAN ENSURE
THAT, UM, YOU KNOW, AS A
DEVELOPER, MY BANK, MY EQUITY
PARTNER THAT I CAN GET PERMITS
AND LESS THAN A YEAR OR I CAN
GET SHOVELS IN THE GROUND IN 18
MONTHS, THEY ARE MORE LIKELY TO
SAY THAT'S NOT A RISKY AS RISKY
A PROJECT AND SO I'M WILLING TO
LEND YOU MORE ON THAT SIDE. SO
YEAH, TO THE EXTENT WE CAN
CREATE A LOT MORE CERTAINTY AND
LESS RISK AROUND THE DEVELOPMENT
PROCESS ITSELF. LENDERS ARE
PROBABLY GOING TO RESPOND BY
PROVIDING, UM YOU KNOW, A LITTLE
BIT MORE, UH, DEBT THAN, UH,
CURRENTLY THEY ARE WILLING TO
PROVIDE IN ONE AREA OF CERTAINTY
, AND CERTAINLY THE TIME IT
TAKES TO DEVELOP RIGHT IS THE
POTENTIAL FOR LAWSUIT, YOU KNOW,
USING ENVIRONMENTAL REVIEW OR
OTHER LAWS AS WELL TO BE ABLE TO
STOP DEVELOPMENT FROM HAPPENING,
UM, YOU HAD SAID EARLIER IN
RESPONSE TO ONE OF THE QUESTIONS
THAT, UH, THERE WERE THERE WERE
SOME, UH UH, ON ON ON
ENVIRONMENTAL REVIEW AND THE
ABILITY TO SUE. MY UNDERSTANDING
IS THAT WE'VE DONE A LOT OF
STREAMLINING. I KNOW THAT WE
PASSED A LOT OF LEGISLATION TO
IN A VERY TARGETED WAY. BE ABLE
TO SUPPORT UM YOU KNOW, THE, UH,
REDUCED REDUCED ENVIRONMENTAL
REVIEW UNDER CERTAIN CONDITIONS.
UM I AGREE WITH YOU, THOUGH,
THAT GENERALLY WHERE WE'VE
ALREADY EVALUATED FOR GIVEN
COMMUNITY OR CITY, RIGHT? THE
ENVIRONMENTAL IMPACTS AND SO
LONG AS YOU'RE DOING WORK THAT
IS SUBSUMED WITHIN THAT THAT
YOU'VE ESSENTIALLY DONE THAT
ENVIRONMENTAL REVIEW. HOW ARE
YOU VIEWING? POSSIBLY YOU KNOW,
THE, UM THE GAP, I GUESS IN IN
THE LEGIS. AUTHORIZATION FOR
PROJECT-BASED DEVELOPMENTS RIGHT
THAT, UH, ARE STILL SUBJECT TO
ENVIRONMENTAL REVIEW THAT WE
NEED TO TAKE A SECOND LOOK AT
THAT MAYBE ALREADY CAPTURED BY
PROGRAMMATIC REVIEW. UM YEAH, I
THINK UNLESS THE CITY IS
PROACTIVE IN CREATING A, UM UM,
A DISCRETIONARY REVIEW PROCESS
AROUND ANY PLANNING THAT THEY'VE
ALREADY DONE, A PROJECT IS GOING
TO HAVE TO GO THROUGH THE
TYPICAL ENTITLEMENT PROCESS,
WHICH OPENS THEM UP TO, UH, TO
POTENTIAL LITIGATION. UM AND I
THINK TO THE EXTENT THAT WE CAN,
UH, MAYBE LEVERAGE EXISTING
EXEMPTIONS AND HAVE THEM APPLY
TO A LOT OF THAT UPFRONT
PLANNING WORK NOW, UM, THAT WILL
GO A LONG WAYS TOWARDS CREATING
MORE CERTAINTY IN THE
DEVELOPMENT PROCESS. SO I THINK
OF THIS, UM UM, IN TERMS OF
SPECIFIC PLANS, SO A LOT OF
CITIES, UM, HAVE UNDERTAKEN SOME
REALLY GREAT PLANNING WORK
AROUND SPECIFIC PLANNING, SO
TAKING AN AREA OF THEIR CITY
GOING THROUGH A SPECIFIC
PLANNING PROCESS TO SAY WHAT CAN
BE BUILT THERE AND THEN
PROVIDING AN EXEMPTION AS A
RESULT OF THAT SPECIFIC PLAN. WE
HAVE A LOT OF EXAMPLES OF CITIES
DOING THIS WORK AND THEN SEEING
A HUGE UPTICK IN, UH IN
DEVELOPMENT IN THOSE AREAS
BECAUSE THEY ARE ABLE TO PROVIDE
THAT CERTAINTY. ONE OF THOSE
EXAMPLES I LIKE TO POINT TO IS
THE UM BROADWAY VALDEZ AREA IN
OAKLAND. IT WENT, UH, YEARS LONG
SPECIFIC PLAN PROCESS THAT TOOK
A LOT OF TIME. UM, IT WASN'T
INEXPENSIVE. BUT ONCE THE
SPECIFIC PLAN WAS IMPLEMENTED,
UM DEVELOPMENT TOOK HOLD
RELATIVELY QUICKLY THERE TO THE
POINT WHERE TODAY? UM, YOU SEE
THAT THE NEIGHBORHOOD IS
COMPLETELY FILLED WITH WITH NEW
HOMES, AND SO, UM, YOU CAN SEE
IN THAT EXAMPLE THAT THE ABILITY
TO PROVIDE THAT UPFRONT
GUARANTEE THAT YOU KNOW AS LONG
AS YOU ADHERE TO OUR DEVELOPMENT
STANDARDS THAT WE PASS IN THE
PLAN, UM YOU GET TO MOVE FORWARD
RELATIVELY QUICKLY IN THE
PROCESS, ACTUALLY. AS RESULT IN
NEW HOMES BEING BUILT, SO TO THE
EXTENT WE CAN THINK ABOUT DOING
SOMETHING SIMILAR TO A LOT OF
THE PLANNING WORK THAT'S GOING
TO TAKE PLACE THROUGH THE
HOUSING ELEMENT AND THE RE
ZONINGS. UM, I THINK THAT COULD
BE A SIGNIFICANT STEP FORWARD.
FANTASTIC ONE THING. I WANTED TO
LOOK A LITTLE BIT DEEPER INTO AS
WELL AND I WILL DO SO THIS YEAR.
UM IN THAT AREA, IN ADDITION TO
OTHER IDEAS THAT WE'RE WORKING
ON FOR BILLS, AND THEN FINALLY,
YOU KNOW, YOU HAD MENTIONED SOME
OF THE, UM SORT OF THINGS THAT
WE COULD DO VIS A VIS THE YOU
KNOW, UH, MODEL TURNER. UH,
HOUSING PROJECT. UM YOU KNOW, UH
ON ON PARKING REDUCTIONS, MISS
CORK, SILVA HAD NOTED THAT AS
WELL. IT'S SOMETHING WE WOULD,
UH, ADDRESSED IN IN IN PART OR
OR OR AS MUCH AS, UH AS WE'VE
DONE TO DATE ON DENSITY BONUS,
INCREASING THE CAPACITY, YOU
KNOW, THAT'S SOMETHING ELSE THAT
WE'VE BEEN, YOU KNOW. VERY
FAVORABLE WITH AND HAVE PASSED
LEGISLATION. UM, BUT WORKING ON
FEES WORKING ON HARD COSTS. YOU
KNOW THOSE THE SOLUTIONS GET
HARDER AND HARDER TO ADDRESS,
RIGHT. WHAT'S YOUR
COUNTERBALANCE? IF WE WANT TO
JUST HAVE A, YOU KNOW, SORT OF
DICTATED, YOU KNOW, 10% CAP UH
OR $10,000 CAP ON, UH, èC ON
CERTAIN CITY FEES. YOU KNOW
WHAT'S THE COMPROMISE, RIGHT? I
UNDERSTAND COMING FROM LOCAL
GOVERNMENT WHAT THEY USE THAT
FOR AND WE NEED MORE SUPPORT FOR
COMMUNITY DEVELOPMENT OR FOR
INFRASTRUCTURE. UM RIGHT, THAT'S
AND I KNOW THE ORIGINS OF WHY
CITIES WHAT THEY DO AND THAT'S
SOMETHING WE CAN TAKE A LOOK AT
AS WELL. BUT I JUST UNDERSTAND.
LIKE, YOU KNOW, THE TENSION
POINTS THERE AND ON HARD COSTS,
YOU KNOW, IT ALWAYS SEEMS TO
COME DOWN TO LABOR
CONVERSATIONS. AND WE WANT TO
DUMB DOWN THE WAGES. UM WHICH,
YOU KNOW, RUNS AFOUL OF A LOT OF
OUR VALUES, BUT I THINK YOU KNOW
ONE THING EVEN MORE CALIFORNIANS
WOULD SHARE IS THAT IT'S VERY
DIFFICULT TO MAKE A FAMILY'S
BUDGET WORK OUT. AND SO WHY
WOULD YOU MAKE IT MORE AND MORE
HèA HARDER AND HARDER? UM BY
DEPRESSING A LOT OF THOSE WAGES
WHEN THEY'RE JUST TRYING TO MAKE
ENDS MEET AND BE ABLE TO, UM,
ENJOY A SPACE AND IN THE
CALIFORNIA LANDSCAPE AS WELL
THEMSELVES, AND I UNDERSTAND
THAT THAT FEEDS INTO THE TOTAL
DEVELOPMENT COST AS WELL. AND
THESE ARE ALL THINGS THAT WE
SORT OF, YOU KNOW, SORT OF, UH,
KIND KIND OF WORK ON TOGETHER,
ESPECIALLY AS WE'RE FINDING NEW
ALLOWANCES TO REDUCE COSTS. CAN
WE MAKE SURE THAT WORKERS ARE
SUPPORTED? AND YOU? YOU YOU THEN
AT THE TABLE AS WELL, WORKING
WITH US ON A LOT OF THAT MAP. UM
ARE THERE OTHER AREAS, THOUGH,
THAT MAYBE WERE NOT EXPLORING?
MY LAST QUESTION? IS ANYTHING
OUTSIDE THE BOX? UM THAT YOU
KNOW, WE HAVEN'T THOUGHT ABOUT,
UH, YOU KNOW A LOT OF THESE
IDEAS. THEY MARGINALLY MAKE A
DIFFERENCE IMPORTANT, ESPECIALLY
IF THEY ARE ADDITIVE. RIGHT UM,
BUT REDUCING YOU KNOW THE COST
OF A NEW HOME BY BY 10% IS, YOU
KNOW ONLY GONNA AFFECT YOU KNOW
SO MANY CALIFORNIANS. HOW DO WE
REALLY GET BACK INTO, UM MIDDLE
INCOME AFFORDABILITY? UM ON
MATERIALS. WE SAY THERE'S
NOTHING THAT WE CAN DO, BUT
COULD CALIFORNIA POTENTIALLY
BANK LUMBER AND YOU KNOW, GET
MORE INTO THE SPACE OF PROCURING
MATERIALS AND TRYING TO HELP
STABILIZE THE SUPPLY? UM ARE
THERE OUTSIDE OF THE BOX IDEAS
THAT THAT WE'RE NOT THINKING
ABOUT? UM YES, THERE ARE, UM AND
I. I WILL TRY AND GO THROUGH
SOME OF THEM SUCCINCTLY. BUT I
KNOW A LOT OF MY COLLEAGUES ON
AT TURNER CENTER SPECIFICALLY,
ARE TURNER LABS SIDE ARE
THINKING ABOUT HOW WE CAN KIND
OF JUST DISRUPT THE WAY WE BUILD
NEW HOMES FROM THE WAY WE
FINANCE IT TO THE WAY WE BUILD
IT IN A COUPLE OF THE THINGS
THAT COME DIRECTLY TO MIND ARE
THINKING ABOUT INCENTIVIZING,
UH, MORE INNOVATIVE WAYS THAT
THAT WE BUILD. SO FOR EXAMPLE,
UM, USING, UM CROSS LAMINATED
TIMBER OR MASS TIMBER PRODUCTS
TO INCREASE THE TIME TO BUILD OR
OR OR INCREASE THE SPEED OF
BUILDING AND LOWERING THE COST
OVERALL, THINKING ABOUT WAYS TO
SUPPORT THE REALLY NASCENT
INDUSTRIALIZED CONSTRUCTION
INDUSTRY, WHERE, UM, WE HAVE,
UH, HOPES THAT BUILDING SITE CAN
ACTUALLY LEAD TO SIGNIFICANT,
UH, REDUCTION IN OVERALL COSTS
AND INCREASE IN THE SPEED OF
BUILDING COULD BE ANOTHER WAY.
UM THAT WE CAN GET AT THAT, UM,
THAT REALLY STICKY, HARD COST
QUESTION AND SO REALLY BEING
OPEN TO WAYS THAT THE STATE AND
POLICYMAKERS CAN SUPPORT THAT,
BUT ALSO AT THE LOCAL LEVEL,
UNDERSTANDING WHAT IT WOULD MEAN
TO REALLY INCENTIVIZE OR
FACILITATE MORE COST EFFECTIVE
FORMS OF BUILDING ARE GOING TO
BE IMPORTANT AS WELL. GREAT
THANK YOU. WELL WE'LL BE DOING
AGAIN. I THINK IN ALL OF THE
ABOVE APPROACH, BUT I REALLY
APPRECIATE ALL YOUR TIME. AND
UH, THANK YOU AGAIN FOR YOUR
YOUR TENURE AT THE TURNER
CENTER. UH, BECAUSE YOU'VE
INFORMED A LOT OF THE WORK THAT
WE DO HERE AT THE LEGISLATURE
AND I WISH YOU WELL ON YOUR NEXT
STEP. SO THANK YOU, MR GVE BEEN
ABLE TO, UH, TO BE HERE. SO
THANK YOU SO MUCH. GREAT WELL,
WE ARE GONNA TRANSITION TO OUR
NEXT PANEL. UH I REALLY I THINK
LEANING ON SOME OF THE
OBSERVATIONS AND TAKEAWAYS FROM
THIS, UM, PRESENTATION TO TALK
ABOUT, UH, YOU KNOW, JUST IN
CONTEXT. TWO OF OUR CITIES OUR
LARGER CITIES HERE IN THE STATE
OF CALIFORNIA, WHICH ARE, UH,
HELPING TO, UH HAVE LOCAL
PROGRAMS, UH, RESULTING IN
REDUCED DELAYS AND STREAMLINING
HOUSING DEVELOPMENT. UM AND HAVE
I THINK BEEN IN OUR FIRST ROUND
OF STATE PRO HOUSING
DESIGNATIONS AS WELL? SO UH,
WE'RE GONNA WELCOME GREG SANDLIN
FROM THE, UH, THE PLANNING
DIRECTOR FROM THE CITY OF
SACRAMENTO AND HEIDI VON BLOOM,
THE PLAYING DIRECTOR FOR MY HOME
CITY OF THE CITY OF SAN DIEGO.
UH, WE'LL BEGIN WITH, UH, MRS
ALL RIGHT. GOOD MORNING CHAIR
WARD. MEMBERS OF THE COMMITTEE
GREG SANDLIN, PLANNING DIRECTOR
WITH THE CITY OF SACRAMENTO. UM
I STARTED WITH THE CITY AS A
JUNIOR PLANNER IN 2005, AND MUCH
OF MY CAREER HAS BEEN DEVOTED TO
UH, STREAMLINING, INFILL HOUSING
DEVELOPMENT AND, UH, LOOKING AT
THESE MARGINAL IMPROVEMENTS ON A
DAILY ANNUAL BASIS. UH WHEN WE
CONTINUE TO DO SO, AND SO, UM, I
WAS ASKED TO, UH, HIGHLIGHT UH,
THREE. THINGS THAT THE COMMITTEE
WAS CURIOUS ABOUT, UM, ARE ARE
MISSING LITTLE HOUSING APPROACH.
OUR AFFORDABLE HOUSING FEE
REDUCTION PROGRAM, IMPACT FEES
AND THEN ALSO JUST KIND OF THE
KEY, UH, PROGRAMS ASPECTS IN OUR
PRO HOUSING DESIGNATION THAT
HAVE MADE THE MOST DIFFERENCE,
AND I'LL BE CALLING OUT MORE OF
THINGS THAT, UM THE STATE HAS
NOT REALLY PIVOTED TOWARDS AND
MORE UNIQUE TO OUR, UH
JURISDICTION AND HOPEFULLY CAN
INFLUENCE SOME SOME GOOD STATE
POLICY. UM SO. WHEN I STARTED IN
2005, WE HAD OUTDATED GENERAL
PLAN ZONING CODE SUBURBAN GROWTH
MODEL, AND SO, UM, WE'VE UPDATED
OUR OUR GENERAL PLAN NOW IN 2009
2015. AND, UM, NOW, UH, NEXT
TUESDAY. WE HOPE TO APPROVE OUR
2040 GENERAL PLAN UPDATE UH,
WHICH WE'VE BEEN WORKING ON FOR
THE PAST FIVE YEARS. UH, KEY
ASPECT OF OUR NEW GENERAL PLAN
IS THAT WE WILL NÓ LONGER HAVE
MAXIMUM DENSITY IN THE GENERAL
PLAN. JUST BE FLOOR AREA RATIO.
UM AND ONE OF OUR OUR KEY
STRATEGIES THAT WE INTRODUCED TO
COUNCIL, UH, FROM THE OUTSET IS
TO ALLOW A GREATER VARIETY OF
HOUSING TYPES IN OUR TRADITIONAL
SINGLE FAMILY ZONES. TALKING
ABOUT DUPLEXES TRIPLEXES FOUR
PEX IS BUNGALOW COURTS THAT WAS
RIGHT AROUND WITH COVID WAS WAS
COMING IN AND IT IT. CREATED A
LOT OF CONTROVERSY WITH OUR
NEIGHBORHOODS. THERE WAS A LOT
OF SAVE SACRAMENTO LAWN SIGNS
OUT, AND, UH, MY STAFF AND I
WERE OUT HAVING THESE FORUMS AS
THEY WOULD CALL THEM WITH THE
NEIGHBORS ASSOCIATION. UM BUT AT
IN THE END COUNCIL DID GO AHEAD
AND ADOPT THE RESOLUTION WITH
THAT KEY STRATEGY. UM WE GOT A.
GRANT TO DEVELOP OUR MISSING
MIDDLE HOUSING STANDARDS. THE
STUDY HERE, UM FROM THE STATE
THROUGH SE COG, UM AND THAT
REALLY HELPED TO ADVANCE A LOT
OF COMMUNITY ENGAGEMENT. UM
PROACTIVE OUTREACH TO FOLKS
BECAUSE I THINK, UM WHAT I'VE
I'VE OBSERVED IS MOST FOLKS ARE.
ARE NOT TERRIBLY CONCERNED WITH
DEMPSEY, BUT MORE OF THE FORM
THE SCALE THE SIZE OF
DEVELOPMENT IN THEIR COMMUNITY.
AND SO WHEN THEY HEAR MISSING
MIDDLE HOUSING, THEY ASSUME A
VERTICAL THREE STORY APARTMENT
RIGHT NEXT TO THEM. 5 FT. OFF
THE OFF THE PROPERTY LINE. UM
AND SO A LOT OF OUR ENGAGEMENT
AND OUTREACH AND THE PAST COUPLE
OF YEARS HAVE BEEN REALLY
SHOWING WHAT IT LOOKS LIKE MORE
OF THE SCALE THAT WE HAVE ON
THIS SLIDE HERE, UM TO 2.5
STORIES AND THE LIKE, WITH A
DORMER, UM BUT A LITTLE BIT MORE
FLEXIBILITY WITH HOW WE TREAT
SETBACKS. UH, THE BUILDING
ENVELOPE, WHICH WE DO HAVE THAT
CONTROLS KIND OF THE SIZE AND
SCALE. AND REALLY YOU CAN SEE
THESE THESE THESE HOMES FIVE
MINUTES AWAY IN EAST SACRAMENTO
OR CURTIS PARK. IF YOU WANT TO
DRIVE AROUND, YOU SEE THESE FOUR
FLEXES AND BUNGALOW, OF COURSE
THAT WERE BUILT 100 YEARS AGO
BEFORE SINGLE FAMILY ZONING
REALLY KICKED IN. UM SO IN.
OCTOBER OF LAST YEAR. WE TOOK
FORWARD THIS MAP HERE ON THE
LEFT. THAT YOU SEE IN THE BLUE
AND THE YELLOW AND ARE ARE KIND
OF OUR SINGLE FAMILY ZONES IT
TAKE. IT'S FOR MUCH OF THE CITY.
UH IS OUR SINGLE FAMILY ZONES
AND WE HAD A KIND OF A SCALED
APPROACH BASICALLY. BASED OFF OF
THE URBAN FABRIC, ACCESSIBILITY
TO TRANSIT. WE LIMITED THE
AMOUNT OF UNITS, UM, IN THOSE
AREAS WE FELT WAS APPROPRIATE.
UH, I THINK, UH, FROM LIKE SIX
UNITS IN THE BLUE TO EIGHT IN
THE YELLOW WAS THE MAXIMUM
NUMBER OF UNITS PER LOT. SO WE
GOT A LOT OF FEEDBACK AND
COMMISSION AND THEN IT COUNSEL
AND COUNCIL CHAMBERS WERE FULL
OF PEOPLE ADVOCATING TO NOT HAVE
ANY DENSITY LIMITS. IN THESE
TRADITIONAL SINGLE FAMILY ZONES
COUNCIL GOT CAUGHT UP IN IT
SAID, YEAH, BE BOLD. WE CAME
BACK A MONTH LATER, JUST TO
CONFIRM THAT'S WHAT YOU HEAR.
THAT'S WHAT WE HEARD. WE'RE
GONNA DO THIS YES. YEAH, AND SO,
YEAH. GO AHEAD. UM. AND SO IN
OUR GENERAL PLAN, WE HAVE THAT
DIRECTION. WE'RE WE'RE WORKING
ON OUR ZONE CODE STANDARDS RIGHT
NOW TO PERMIT THIS, BUT ALSO IN
OUR GENERAL PLAN. YOU'LL SEE
THIS ROW OF HOUSES HERE. UM THIS
IS SOMETHING WE'VE LEARNED FROM
OUR CONSULTANTS BASED IN
PORTLAND. UH THE WORK THEY'VE
BEEN DOING UP THERE IS A SLIDING
SCALE. FA R. SO WHERE WE, UH,
INCENTIVIZE MORE UNITS PER LOT
TO GET THAT ATTAINABILITY AND
HAVE THE MAXIMUM SQUARE FOOTAGE
FOR A SINGLE FAMILY HOME TO BE
2000 SQUARE FEET. SO IF YOU ADD
ANOTHER UNIT, YOU GET MORE FLOOR
AREA RATIO. YOU GET MORE
BUILDABLE SQUARE FOOTAGE, SO
EACH TIME YOU ADD A UNIT THAT
GROWS AND THEY HAVE FOUND IN
PORTLAND THAT THERE ARE MORE
MISSING MIDDLE HOUSING. UH,
PRODUCTS GOING IN BECAUSE IT
INCENTIVIZES THAT DENSITY
BECAUSE YOU GET MORE BUILDABLE
SQUARE FOOTAGE. UM ALSO WHAT WE
HEARD IN OUR OUR, UH OCTOBER.
UH, DISCUSSION WITH COUNSEL WAS
THE DESIRE TO HAVE NÓ MINIMUM
PARKING REQUIREMENTS. WE WERE
GOING TO EXPLORE THAT. BUT WE
COUNSEL JUST FIRMLY SAID, GET
RID OF YOUR MINIMUM PARKING
REQUIREMENTS. UM SO WE'RE DOING
THAT THAT'LL BE IN OUR GENERAL
PLAN ON TUESDAY. UM AND SO, II,
I GUESS. JUST IN SUMMARY THE
TONE OF THE CONVERSATION. REALLY
SHIFTED, UM FROM A LOT OF
COMMUNITY CONCERN. NEIGHBORHOOD
CONCERN THAT OVER THE NEXT THREE
OR FOUR YEARS TO VERY LITTLE, WE
HAVE SAVED SACRAMENTO ON OUR
HOUSING POLICY WORKING GROUP. ON
A QUARTERLY BASIS TO DISCUSS ALL
SORTS OF HOUSING POLICY MATTERS.
ALONG WITH DEVELOPERS, HOUSING
ADVOCATES. UM AND I THINK WE'VE
PEOPLE JUST UNDERSTAND WHAT
WE'RE TRYING TO DO, AND THAT
HELPED TO BUILD TRUST FOR THE
POLICY. AND, UM WE ON TUESDAY.
HOPEFULLY WE HAVE CLEAR
DIRECTION TO GO AHEAD AND UH,
CREATE A NEW OPPORTUNITY FOR
MORE ATTAINABLE HOUSING IN
UNDERUTILIZED LAND IN OUR CITY.
UM. I'LL MOVE ON THE NEXT
PROGRAM. THE AFFORDABLE HOUSING
FEE REDUCTION PROGRAM. UH, WHERE
WE CHARGE A $0 RATE. UH ALL
IMPACT CITY IMPACT FEES FOR EACH
AFFORDABLE HOUSING UNIT THAT
STARTED IN IN 2018. UM AND THIS
IS SUPPORTED 2900 AFFORDABLE
UNITS SINCE 2019. UM. COUNCIL
DIRECTED US TO COME BACK IN
THREE YEARS FOR A FULL
EVALUATION OF THE PROGRAM. WE
WELL WAIVED A LOT MORE FEES THAN
WE EXPECTED. UH, IN 2018. AND,
UH, SO IT AND ALSO WHEN WE'RE
COMING BACK WITH THAT REPORT,
OUR, UH OUR ATTORNEYS WERE
CONCERNED ABOUT A COURT DECISION
. WALKER VERSUS CITY OF ST
CLEMENTE. THAT BASICALLY SAID
THAT, UM RULE THAT THE CITY HAD
TO GIVE BACK THEIR IMPACT FEES
TO DEVELOPERS FOR NOT UTILIZING
THEM APPROPRIATELY, APPARENTLY
NOT SPENDING THE MONEY ON
INFRASTRUCTURE AND THE LIKE. AND
SO THEY FOUND THAT IF WE COME
BACK WITH THESE FIVE YEAR
REPORTS ON THESE IMPACT FEES
SHOWING THAT WE'VE ESSENTIALLY
WAIVED THESE FEES. FOR
AFFORDABLE HOUSING, AND WE
HAVEN'T BACKFILLED THAT WE COULD
BE IN A LOT OF LEGAL JEOPARDY.
AND SO WHILE WE WERE PLANNING TO
BACKFILL THOSE THOSE FEES
THROUGH LOOKING AT DIFFERENT
APPROACHES, GRANTS AND THE LIKE
OTHER FUNDING RESOURCES, UM IT
CAME LIKE WE HAD TO DO THIS
REALLY QUICKLY AND SO, UH, ABOUT
$12 MILLION FOUND TO BACKFILL.
THIS PROGRAM. UM AND THEN
ANOTHER 3 MILLION WERE
ALLOCATED. AND SO NOW WE CITY
STARTING LAST JULY IN THE NEW
FISCAL YEAR. ALLOCATES THREE
MILLION DOLLARS PER YEAR TO FUND
THE PROGRAM. AND SO IF WE RUN
OUT OF THAT MONEY, WE STOP
PROVIDING FEE WAIVERS. AND WE
HAVE RUN OUT OF THAT MONEY
ALREADY. UM WE'RE LOOKING AT A
PRO HOUSING PILOT PROGRAM. $1.5
MILLION THAT WE'RE GOING TO BE
APPLYING FOR FROM THE STATE. TO
HELP WITH THIS, UH, TO ALLOW
OTHER PROJECTS GO AHEAD TOWARDS
THE END OF THE TO THE END OF THE
FISCAL YEAR, BECAUSE, UM, WHAT
WE'VE LEARNED IS THAT WHILE THIS
MONEY SAVES AFFORDABLE HOUSING
HOUSING DEVELOPERS ON COST, IT'S
ALSO USED AS A LOCAL MATCH TO
LEVERAGE OTHER FINANCING.
NORMALLY THE CITY HAS THREE TO
$4 MILLION A YEAR IN
DISCRETIONARY MONEY TO DO GAP
FINANCING HELP OUT SOME SELECT
FEW PROJECTS. THERE'S WINNERS
AND LOSERS. THERE'S A LONG LIST
OF AFFORDABLE PROJECTS THAT WANT
OUR LOCAL MONEY FOR GAP
FINANCING, BUT EVERYBODY CAN
LOOK AT THIS AS LONG AS IT'S
DEED RESTRICTED FOR MINIMUM OF
30 YEARS, UM CERTAIN INCOMES.
YOU CAN QUALIFY FOR THIS FOR THE
$0 RATES. UM, BUT WHAT. THEY
THEY THEY MAKE THIS ASSUMPTION
IN THEIR FINANCING PRETTY EARLY
ON, AND SO IF THEY DON'T GET THE
FEE WAIVER, THEN THEY'RE THEY'RE
PRETTY STUCK. AND SO WE'RE
LOOKING FOR WAYS TO PAY FOR IT.
UM BUT REALLY THE GOOD NEWS IS
IT'S HELPING TO LEVERAGE A LOT
MORE MONEY. THAN BEFORE. WHERE
WE HAD 3 $4 MILLION TO LEVERAGE
FINANCING WITH BUT THE ISSUE IS
THAT WE'RE RUNNING OUT OF MONEY
BECAUSE OUR IMPACT FEES IN
CERTAIN AREAS ARE ARE ARE GOING
UP THROUGH INDEXING AND WHATNOT.
SO WHAT WE'RE LOOKING TO DO IS
INSTEAD TO HAVE A MAXIMUM AMOUNT
OF FEE REDUCTION PER UNIT. UM
JUST TO MAKE THE PROGRAM MORE
FINITE, FINANCIALLY STABLE BUT
STILL APPLY THAT THAT BENEFIT
BROADLY TO THE AFFORDABLE
HOUSING DEVELOPMENT COMMUNITY.
SO THAT'S SOMETHING WE'RE
WORKING ON. BUT UM, THAT'S A
LESSON LEARNED. I THINK IT'S ONE
OF OUR MOST IMPORTANT, UH,
PROGRAMS TO INCENTIVIZE
AFFORDABLE HOUSING IN OUR CITY.
BUT IT DEFINITELY COMES WITH
SIGNIFICANT COSTS. AND WE'RE IN
A TOUGH BUDGET ENVIRONMENT LIKE
YOU ALL. THE CITY AND SO A THREE
MILLION DOLLAR ALLOCATION A YEAR
IS NOT NOT A GIVEN. LET'S JUST
SAY YEAH. THAT'S THAT. PROGRAM.
UM AND THEN LAST SLIDE ARE SOME
OF THE IMPACTFUL PRO HOUSING
POLICIES OF IVE BEEN THINKING
ABOUT, UM, SAY, IS LARGELY DONE
THIS NOW HOUSING PERMITTED BY
RIGHT AND COMMERCIAL ZONES.
WE'VE DONE THAT. UM, SINCE 2013
UM. ONE THING II I HEAR IS KIND
OF UNIQUE ABOUT OUR CITY IS IF
YOU'RE INVOLVED PROJECT IS
CONSISTENT WITH ALL OUR
STANDARDS AND OUR GOOD DESIGN
GUIDELINES OR GENERAL PLAN. UM,
WE CAN APPROVE YOU AT STAFF
LEVEL AT ANY SIZE. SITE PLAN AND
DESIGN REVIEW. NÓ HEARING. IT
STILL DISCRETIONARY. UM THERE'S
STILL S¼ W. BUT, UM. THAT'S IT
ONCE WE SIGN OFF ON THAT, SINCE
IT MEETS ALL OUR STANDARDS AND
GUIDELINES, WE HAVE A
RECONSIDERATION PERIOD THAT
PEOPLE CAN LET US KNOW. POINT
OUT INFORMATION THAT WE DIDN'T
SEE, PERHAPS IN OUR STAFF LEVEL
REVIEW, BUT WE'RE NOT, UM.
COMPELLED TO REVISIT THE PROJECT
. UM WE JUST SAY, OK, THANK YOU
APPRECIATE THE INFORMATION, BUT
WE MOVE ON WITH THE APPROVAL. IF
YOU NEED ANY DEVIATIONS, WE USE
DEVIATIONS, NOT VARIANCES IN OUR
CITY SINCE 2013 DEVIATIONS FROM
DEVELOPMENT STANDARDS, UM, WE
WILL HEAR THOSE DEVIATIONS AT
DIRECTOR LEVEL. AS WELL AS ANY
TENTATIVE MAP OF ANY SIZE AT
DIRECTOR LEVEL. UM. YOUR APPEALS
, THOUGH, IF YOU IF SOMEONE
WANTS TO APPEAL THE DIRECTOR
DECISION THAT WILL GO TO
PLANNING COMMISSION, AND THAT'S
IT. THAT'S THE END OF THE APPEAL
PROCESS. IT DOES. YOU CANNOT
CONTINUE TO APPEAL THE PROJECT
TO COUNCIL. UM WE FIND THAT HAS
ADDED A LOT OF PREDICTABILITY
FOR DEVELOPERS AND LESS RISK AND
I GENERALLY CANDIDLY I THINK OUR
COUNCIL MEMBERS ELECTED
OFFICIALS ARE ARE HAPPY NOT TO
HANDLE LAND USE ISSUES AT
COUNCIL LEVEL, BECAUSE VERY
POLITICAL, UM SO, UH, I THINK
THAT HAS BEEN VERY HELPFUL AS
WELL. UM WE TALKED ABOUT, UH,
WITH MR GARCIA EIR S¼ WITH
SPECIFIC PLANS THAT HELP
STREAMLINE S¼ W. WE STARTED
DOING THIS IN 2018 AFTER OUR
CENTRAL CITY SPECIFIC PLAN, AND
WE HAVE USED THIS STATUTORY
EXEMPTION. UH PUBLIC RESOURCES
CODE 21155.4. I BELIEVE, UM FOR
4600 UNITS. AND THERE HAS NOT
BEEN A SUCCESSFUL LAWSUIT.
CHALLENGING THIS EXEMPTION TO
DATE. I WILL TALK ABOUT THIS
PROJECT IN RELATION TO THAT THAT
I HAVE ON THE SCREEN HERE AS A
KIND OF A CASE STUDY. WITH ALL
THE STREAMLINING. I DO WANT TO
EMPHASIZE WE, UM WE HAVE, UH,
ONLINE? UM UH, PORTAL WHERE
PEOPLE CAN SIGN UP. INDICATE AN
AREA WHERE THEY WANT TO HEAR
ABOUT PROJECTS. AND AS SOON AS
THE PROJECT COMES IN, THEY GET
THE PLANS. THEY CAN REVIEW THE
PLANS. THEY GET THE PLANNERS
DIRECT CONTACT INFORMATION. WE
WANT TO GET PUBLIC INPUT EARLY
IN THE PROCESS. THAT'S WHEN
DEVELOPERS STAFF THINGS ARE ARE
ARE LESS BIG. THINGS ARE MORE
FLEXIBLE AND WE DO INCORPORATE
PUBLIC COMMENT. THAT WAY. WE
ALSO HAVE BASICALLY A REAL
ESTATE SIZE SIGN. ON THE
PROPERTY FOR PEOPLE TO SEE WHAT
THE PLANNER'S CONTACT NAME AND
INFO, UM, JUST ACKNOWLEDGING,
AND I THINK IT HELPED WITH
COUNSEL GOING AHEAD WITH THE
STREAMLINING MECHANISMS TO HAVE
SOME GOOD EARLY OUTREACH TO THE
COMMUNITY SO THEY CAN WEIGH IN
AND POINT OUT SHOES TO US, UM
I'LL JUST NOTE JUST THIS PROJECT
HERE. IT'S UH UP IN NORTH
SACRAMENTO, UH, NEAR THE ROYAL
OAKS, LIGHT RAIL STATION, 100
AND 28 AFFORDABLE UNITS. UM VERY
UNPOPULAR WITH THE, UH, THE
NEIGHBORHOOD NEARBY. UM BUT
NONETHELESS, IT WAS APPROVED AT
STAFF LEVEL IN SIX MONTHS. UM
USING THE STATUTORY EXEMPTION
USING AN OLDER EIR FROM THE
SWANSON STATION SPECIFIC PLANT.
UM AND UH, THERE WAS NÓ HEARING
NÓ APPEAL, JUST RECONSIDERATION.
THE NEIGHBORHOOD ASSOCIATION DID
CHALLENGE IT, BUT THEN THEY
DROPPED IT IN COURT. SO UM, I
THINK JUST AN EXAMPLE OF A GOOD
PROJECT THAT I THINK MOST FOLKS
WOULD LIKE TO SEE AFFORDABLE
HOUSING IN FIELD DEVELOPMENT
NEXT TO A LIGHT RAIL STATION IS
CONSISTENT WITH CITY POLICIES
STANDARDS GUIDELINES, AND WE
WANTED TO CREATE THIS
PREDICTABLE PROCESS. UM. OTHER
THOUGHTS. I JUST I DID HEAR
ABOUT IMPACT FEES. UM MR GARCIA
MENTIONED THAT WE DO HAVE OUR
FEE OF FAL PROGRAM. THE FINAL
INSPECTION BECAUSE SOME SOME
UNITS DON'T ALWAYS USE. UH UH,
THAT'S THE LAST, UH KIND OF
APPROVAL, SO TO SPEAK.
CERTIFICATE OF OCCUPANCY IS FOR
COMMERCIAL UNITS, UM SO THAT'S A
VERY POPULAR PROGRAM. I THINK IT
DOES HELP SAVE MONEY IN THAT
DEVELOPERS DON'T HAVE TO PUT UP
THAT UPFRONT COST EARLY ON, THEY
CAN BUILD MORE UNITS, LARGER
BATCHES, SO TO SPEAK. KEEP THE
TRADES ON SITE. UM, AND SO IT'S
BEEN HELPFUL. UH, AS WELL. AND
OF COURSE, YEAH, OUR OUR OUR
IMPACT FEES ARE LARGELY AT A PER
SQUARE FOOT BASIS. UM AND WE'VE
HAD WE HAVE A MASTER ORDINANCE
THAT BASICALLY, UH FOR IMPACT
FEES THAT HELP MAKE THE PROCESS
MORE PREDICTABLE. HOW IT'S
ASSESSED. WHAT ARE THE TYPE OF
FEE CREDITS YOU GET AND THE
LIKE, UH, THAT WE DID IN IN
2017. UM SO THOSE ARE SOME OF
THE THINGS THAT COME TO MIND
THAT HAPPY TO ANSWER ANY
QUESTIONS YOU MAY HAVE. THANK
YOU, MR SALEN. UM, WE'RE GOING
TO GO TO M VON BLOOM FOR YOUR
PRESENTATION, AND THEN WE'LL
COVER OUR QUESTIONS FOR BOTH
PRESENTERS. THANK YOU. GOOD
MORNING. THANK YOU FOR HAVING ME
HERE. MY NAME IS HEIDI VON BLUM.
I'M THE PLANNING DIRECTOR WITH
THE CITY OF SAN DIEGO. I DO WANT
TO JUST PROVIDE A LITTLE BIT OF
CONTEXT FOR SAN DIEGO. WE SERVE
1.4 MILLION PEOPLE. UM AND WE
ARE A LARGE JURISDICTION
GEOGRAPHICALLY. WE ARE ALSO
DIVERSE, GEOGRAPHICALLY AS WELL
AS DEMOGRAPHICALLY DIVERSE AS
WELL. UH, WE HAVE OVER 50
DIFFERENT COMMUNITY PLANNING
AREAS WITHIN OUR JURISDICTION,
AND THAT IS A LOT OF
RESPONSIBILITY IN TERMS OF
PLANNING THE RIGHT WAY. SO TO
FRAME UM, THE SOME OF THE
HIGHLIGHTS THAT I WOULD LIKE TO
SHARE WITH THE COMMITTEE TODAY
ON THINGS THAT SAN DIEGO HAS
DONE THAT WE'VE SEEN SOME
SUCCESS IN AS WELL AS WHERE WE
WANT TO SEE OURSELVES GOING IN
THE NEAR FUTURE. UM, I DO WANT
TO FRAME THAT DISCUSSION AROUND
TO SOME OF THE POINTS THAT THE
COMMITTEE HAS RAISED IS THAT
WHEN WE TALK ABOUT OUR PRO
HOUSING POLICIES, THIS IS IN THE
CONTEXT OF PRO HOUSING. THAT
ALSO MEET OUR CLIMATE AND EQUITY
GOALS. UM, AND ALSO RESULTS IN
THRIVING COMMUNITIES. THE
PURPOSE OF ALL OF THE WORK THAT
WE DO TO PROVIDE NEW HOME
OPPORTUNITIES IS TO ENHANCE THE
LIVES OF PEOPLE THAT LIVE IN THE
EXISTING COMMUNITIES AS WELL AS
THE PEOPLE THAT WE'D BE MOVING
INTO THE NEW HOUSING. UM AND SO,
TO THAT END THAT REQUIRES PARKS
AND PUBLIC SPACES,
INFRASTRUCTURE IT ALSO, UH IT
ALSO REQUIRES THAT WE'RE
PLANNING INTENTIONALLY TO ENSURE
THAT OUR CITY MUNICIPAL SERVICES
CAN SERVE THE NEW DEVELOPMENT.
UM SO THAT LOOKS AT EFFICIENCIES
WITH RESPECT TO MUNICIPAL
OPERATIONS, SUCH AS SOLID WASTE
COLLECTION, POLICE AND FIRE
SERVICES AS WELL. UM SO WITH
THAT IN MIND, UM ALL OF OUR
POLICIES ARE PRIMARILY TARGETED
AT AREAS THAT ARE CONVENIENTLY
LOCATED TO TRANSIT. THEY PROVIDE
SAFE AND CONVENIENT, UH, WALKING
, BIKING AND ROLLING
OPPORTUNITIES. UM THESE AREAS
IDEALLY, ARE ALSO SERVED BY
AMENITIES SUCH AS PARKS, GOOD
SCHOOLS. UM AND THEN ALSO, UH,
WHILE WE ARE PLANNING FOR NEW
HOUSING, WE ARE ALSO PLANNING
FOR GOOD JOBS IN THE PROCESS
THAT ALSO LOOKS LIKE GOOD JOBS
IN THE CONTEXT OF CONSTRUCTION,
AS WELL AS THE END USER WORKERS
THAT WE WILL BE ABLE TO FIND A
HOUSE, UM, TO AFFORD TO LIVE IN
IN OUR CITY. UM I DON'T THINK
THAT I NEED TO REHASH THAT. UM,
IT IS NOT AFFORDABLE TO LIVE
ANYWHERE IN THE STATE OF
CALIFORNIA. AND THAT IS
SOMETHING THAT IS UNIQUELY TRUE
IN SAN DIEGO AS WELL. UM ALSO,
AS I HIGHLIGHT SOME BEFORE I GET
TO HIGHLIGHTING SOME OF, UM SOME
OF OUR RECENT, UM, INITIATIVES I
DO ALSO WANT TO POINT OUT, UM,
THAT WHILE WE HAVE HAD A LOT OF
SUCCESS IN THE RENTAL MARKET
SPACE, UM AS WELL AS CERTAIN
PRODUCT TYPES WE ARE LACKING IN
A DIVERSE SUPPLY OF HOUSING
OPPORTUNITIES. UM A LACK OF HOME
OWNERSHIP OPPORTUNITIES. UH
WHICH, UH, WE CAN TALK ABOUT A
LITTLE BIT MORE. UH, WE ARE
HAMSTRUNG BY A LOT OF
REQUIREMENTS AT THE STATE LEVEL
TO BE ABLE TO PROVIDE THOSE
HOMEOWNERSHIP OPPORTUNITIES. UH,
ARE REALLY CRITICAL RIGHT NOW,
AS WE ARE TAKING THE OPPORTUNITY
TO PLAN FOR NEW HOMES TO MEET
THE NEEDS OF EVERYBODY THAT
LIVES IN OUR CITY. WE WANNA MAKE
SURE THAT WHAT THIS ULTIMATELY
LOOKS LIKE, IS ACTUALLY
FULFILLING AND MEETING THE
NEEDS. OF THE PEOPLE THAT LIVE
IN OUR CITY. YES OF COURSE.
THERE'S A PLACE FOR RENTAL
HOUSING. UM, BUT TO NOT BE
PROVIDING NEW HOMEOWNERSHIP
OPPORTUNITIES FOR PEOPLE TO
BUILD EQUITY, UH, ESPECIALLY IN
BLACK AND BROWN COMMUNITIES
WHERE THEY'VE BEEN HISTORICALLY
REDLINED AND EXCLUDED FROM THAT
OPPORTUNITY IS REALLY OF
CRITICAL IMPORTANCE AS WE DO
THAT TODAY. UM SECONDLY, UM, AS
WE ARE LOOKING AT THIS, WE WANNA
MAKE SURE UM, THAT, UH, WE ARE
THINKING ABOUT, UM, NOT JUST
HOUSING UNIT PRODUCTION, BUT
NUMBER OF PEOPLE HOUSED. UM AND
THAT'S REALLY, REALLY IMPORTANT
TO ME AND SOMETHING THAT WE HAVE
, UH, PROVIDED COMMENTS TO HÌ
èC Dð ON THROUGH THE RENA
REFORM PROCESS AS WELL. UM, THE
RENA ALLOCATION PRIMARILY LOOKS
AT HOUSING UNITS. A UNIT COULD
BE 500 SQUARE FOOT. IT COULD
HOUSE ONE INDIVIDUAL OR A UNIT
COULD BE 1200 SQUARE FOOT
CONVENIENTLY WELL AND WELL
DESIGNED, UH, YOU KNOW, 1200
SQUARE FEET THREE BEDROOM, TWO
BATH, UM, THAT COULD HOUSE A
FAMILY WITH CHILDREN. MULTIPLE
CHILDREN, UM, AS WELL AS THE
NEEDS OF GENERATIONAL FAMILIES
LIVING WITHIN OUR JURISDICTION
AS WELL. WE'VE SEEN A LOT OF
INCENTIVES FROM THE STATE THAT
DO INCENTIVIZE SMALLER UNITS, UH
WHICH I THINK IS A DETRIMENT TO
FOCUSING ON NUMBER OF PEOPLE
HOUSED, AND I DO HOPE TO SEE
ACTION ON THAT FROM THE STATE TO
BE ABLE TO CHANGE THAT
CONVERSATION INTO LOOKING AT HOW
WE CAN HOUSE PEOPLE RATHER THAN
PRODUCE SIMPLY HOUSING UNITS. UM
SO I WILL FINALLY NOW GET, UH TO
HIGHLIGHTING SOME OF THE ACTIONS
THAT THE CITY OF SAN DIEGO HAS
TAKEN THAT WE'VE SEEN, UM SOME
PRELIMINARY SUCCESSES ON, UM,
BUT ALSO WANT TO REMIND
EVERYBODY THAT HOUSING CAPACITY
IS NOT THE SAME AS HOUSING
PRODUCTION. UM THE CITY OF SAN
DIEGO. UH, IN THE LAST 10 YEARS,
WE HAVE UPDATED A NUMBER OF OUR
COMMUNITY PLANS. UM, WE HAVE
INCREASED HOUSING CAPACITY BY
100 AND 6000 NEW UNITS. HOUSING
CAPACITY, THOUGH, DOES NOT EQUAL
HOUSING. PRODUCTION AND SO A LOT
OF THE WORK THAT WE DO IN OUR
DEPARTMENT IS FOCUSED ON
IMPLEMENTATION AND LOOKING AT
WAYS TO INCENTIVIZE AND ENSURE
THAT WE ARE ARE OUR MARKET CAN
ACTUALLY DELIVER THE NEW HOMES
THAT WE HAVE PLANNED FOR. UM SO
WITH THAT IN MIND, YOU KNOW, I.
I DON'T WANT TO UNDERSCORE THE
IMPORTANCE OF UPDATING THE
COMMUNITY PLANS. UM AS MY
COLLEAGUE HERE HAD MENTIONED
IT'S VERY IMPORTANT TO BE ABLE
TO HAVE THOSE PLANS IN PLACE SO
THAT YOU KNOW STANDARDS ARE
IDENTIFIED. COMMUNITIES
UNDERSTAND THE TYPES OF LAND
USES THAT ARE EXPECTED. TO OCCUR
WITHIN THOSE AREAS, BUT A PLAN
DOESN'T MAKE ANYTHING HAPPEN.
UH, WE NEED TO HAVE ADDITIONAL
ACTION TO ENSURE THAT WE
ACTUALLY GET THE PRODUCTION. UM
FROM THE CAPACITY, SO A LOT OF
THE EFFORTS THAT WE HAVE DONE
HAVE BEEN FOCUSED ON THAT WE DO
REGULARLY UPDATE OUR ZONING CODE
KNOWN AS OUR LAND DEVELOPMENT
CODE. EVERY YEAR. WE TAKE INPUT
FROM, UH, INDUSTRY STAKEHOLDERS
AS WELL AS MEMBERS OF THE PUBLIC
AS WELL AS EXPERTISE. UH, WITHIN
, UM OUR OWN DEPARTMENT TO BE
ABLE TO TAKE AWAY BARRIERS. UM
AND ENHANCE THE STREAMLINING OF
DEVELOPMENT PROJECTS THROUGH THE
PROCESS. UM OUR GOAL, UH,
GENERALLY IN THE CITY OF SAN
DIEGO IS TO REMOVE THE
DISCRETIONARY PROCESS WHERE IT
IS NOT ENHANCING A PROJECT. A
LOT OF PROJECTS CAN GO THROUGH
THE PROCESS, AND THEY'RE KIND OF
GOING THROUGH THE MOTIONS, RIGHT
? UH STANDARD. UH, TERMS AND
CONDITIONS GET APPLIED TO A
CONDITIONAL USE, PERMIT OR OTHER
KIND OF SITE DEVELOPMENT PERMIT.
UM, BUT NOTHING REALLY SPECIAL
COMES OUT OF THAT PROCESS.
REALLY WHAT THAT PROCESS CAN DO.
IS PROVIDE UNCERTAINTY TO A
DEVELOPER. APPLICANT UM AND
REALLY, UM, HINDERS OUR ABILITY
TO BE ABLE TO SEE THAT HOUSING
PRODUCTION OCCUR. BY REMOVING A
DISCRETIONARY PROCESS AND
IDENTIFYING REGULATIONS IN PLACE
THAT PROVIDE CERTAINTY, BOTH TO
MEMBERS OF THE PUBLIC AS WELL AS
TO THE DEVELOPER. WE ARE ABLE TO
SEE THE STREAMLINE PERMITTING
AND DELIVERY OF THE NEW HOME
DEVELOPMENT. THIS IS REALLY
IMPORTANT, UM, BECAUSE IT
REDUCES DELAYS, ESPECIALLY WITH
RESPECT TO ADMINISTRATIVE
APPEALS. UH, WE ALSO SIMILARLY
DO HAVE HIGHER PROCESS LEVELS
WHERE STAFF CAN MAKE A DECISION
AND THAT ALSO SIMILARLY TO
SACRAMENTO REPORTS RESULTS IN AN
APPEAL TO THE PLANNING
COMMISSION, HOWEVER, UNDER STATE
LAW AND THE PUBLIC RESOURCES
CODE, THERE IS A STATE LAW
REQUIREMENT THAT ANYBODY CAN
APPEAL ANY PROJECT EVEN TO THE
STAFF LEVEL TO THE ELECTED
DECISION MAKER UNDER èC W, UM
AND THAT PUTS A LOT OF PROJECTS
INTO AN ENDLESS CYCLE LOOP OF
DUAL APPEALS BOTH TO OUR
PLANNING COMMISSION AS WELL AS
OUR CITY COUNCIL. UH, WE APPROVE
MOST OF OUR PROJECTS BY RIGHT
MINISTERIAL AND BY RIGHT
MINISTERIAL DOESN'T MEAN THAT
EVERYBODY GETS A FREE PASS. IT
MEANS THAT WE HAVE WORKED WITH
THE COMMUNITY AND INDUSTRY
UPFRONT TO IDENTIFY CLEAR AND
CERTAIN REGULATIONS. UM, SO THAT
WHEN AN APPLICANT COMES IN TO
OUR DEVELOPMENT SERVICES
DEPARTMENT FOR THEIR PERMIT,
THEY KNOW UPFRONT WHAT THEY ARE
EXPECTED AND REQUIRED TO DO IN
TERMS OF DELIVERING THAT THAT
REDUCE ARE PROCESSING TIMELINE,
UM, AND HOPEFULLY IS RESULTING
IN REDUCED COSTS. UM, TO THE
PERFORMER, UH, THAT DAVID
EARLIER HAD IDENTIFIED FOR THE
HOUSING COSTS. UM, SO THAT'S ONE
AREA THAT IS REALLY IMPORTANT TO
US. AS WE MAKE SURE THAT THERE
AREN'T LITTLE THINGS WITHIN OUR
LAND DEVELOPMENT CODE THAT ARE
NOT CREATING UNNECESSARY, UH,
REGULATORY UNCERTAINTY IN THAT
PROCESS. UM OTHER THINGS THAT WE
HAVE DONE IS WE HAVE A VARIETY
OF INCENTIVE PROGRAMS THAT GO
ABOVE AND BEYOND STATE LAW. UM
CERTAIN EXAMPLES. WE HAVE A
COMPLETE COMMUNITY HOUSING
SOLUTIONS PROGRAM THAT ALLOWS
ESSENTIALLY FOR UNLIMITED
DENSITY UP TO CERTAIN FLOOR AREA
RATIOS IN AREAS LOCATED NEAR
TRANSIT. UM THIS PROGRAM WAS
ADOPTED IN 2020. WE ACTUALLY
HAVE SEEN VERY SIGNIFICANT
SUCCESS THROUGH THAT PROGRAM. UM
IT HAS BEEN SOMETHING THAT HAS
BEEN VERY ATTRACTIVE, UM TO THE
DEVELOPMENT COMMUNITY, AND WE
CONTINUE TO SEE THAT OCCURRING
IN THE FUTURE. UM OUR CITY ALSO
ADOPTED AN A HOME DENSITY BONUS
PROGRAM. UM, WHICH HAS BEEN VERY
POPULAR FROM THE A U MODEL. UM I
WILL NOTE FROM THE STATE
PERSPECTIVE, UM, THAT THE STATE,
UH LIMITS THE CITY'S ABILITY TO
CHARGE DEVELOPMENT IMPACT FEES
ON A HOMES LESS THAN 750 SQUARE
FEET. UM THE CHALLENGE THAT I
SEE WITH THAT IS THAT EVERY
SINGLE A Dð U APPLICATION WE
RECEIVE IS LESS THAN 750 SQUARE
FEET. AND UM, IT REALLY, UH,
WHILE IT DOES PROVIDE A TYPE OF
HOUSING PRODUCT FOR A SEGMENT OF
OUR POPULATION, IT REALLY IS
MISSING AN OPPORTUNITY TO
PROVIDE NEW HOMES FOR FAMILIES
WITH CHILDREN AND LARGER
FAMILIES. UM IN THAT, UM, IN
THAT REALM, UH, WE HAVE A
VARIETY OF DENSITY BONUS
PROGRAMS, UM, TO INCENTIVIZE,
UM, CERTAIN THINGS. WE HAVE
CHILDCARE DENSITY BONUS
INCENTIVES. WE HAVE DENSITY
BONUS INCENTIVES FOR STUDENT
HOUSING, UM, HOUSING FOR ALL
ABILITIES. UM I SHOULD HAVE
MENTIONED EARLIER WHEN I HAD
SAID THAT ALL OF OUR HOUSING POS
ARE AIMED AT ENSURING THAT WE
ARE MEETING OUR CLIMATE AND
EQUITY GOALS AS WELL AS OUR
INFRASTRUCTURE NEEDS AS WELL. WE
ARE ALSO ACUTELY, UH, FOCUSED ON
AFFIRMATIVELY FURTHERING FOR
HOUSING AND MAKING SURE THAT WE
ARE PROVIDING AFFORDABLE HOME
OPPORTUNITIES IN ALL OF OUR
CITIES COMMUNITIES. UM AS PART
OF, UM KIND OF GOING ABOVE AND
BEYOND, UM, THAT LEVEL WE, UM,
ARE LARGELY BUILT OUT
JURISDICTION. 80% OF OUR LAND IS
SINGLE FAMILY, UH, SINGLE FAMILY
ZONED PRESENTLY. UM AND SO THAT
PROVIDES US WITH A VERY UNIQUE
CHALLENGE, AS WELL AS
OPPORTUNITY TO REALLY THINK
CREATIVELY ABOUT HOW WE BUILD UP
AN IN, UM, TO MEET THE NEEDS OF
OUR COMMUNITIES, UM, THINGS THAT
WE HAVE LOOKED AT, UM, IS
PHASING OUT, UM, NON CONFORMING
INCOMPATIBLE. USES TO MAKE WAY
FOR A NEW HOUSING OPPORTUNITIES.
UH, WE'VE THROUGH OUR COMMUNITY
PLANS. UH, REZONED, UH,
COMMUNITIES, PARTICULARLY IN
BARRIO LOGAN, UH, WHICH IS A
VERY UNDERSERVED COMMUNITY. UM
HISTORICALLY IN OUR CITY, UH, WE
REZONED UH, A LOT OF THAT
COMMUNITY TO PROVIDE LAND USE
COMPATIBILITY, UM, TO SEPARATE
RESIDENTIAL FROM INDUSTRIAL USES
, UM THROUGH THAT PROCESS OF THE
PLANNING. IT'S A GOOD EXAMPLE OF
HOW PLAN ON ITSELF DOESN'T DO.
THING BECAUSE OF PREVIOUSLY COMB
FORMING RIGHTS. UM SO AREAS, UM,
THAT OUR CITY HAS IDENTIFIED FOR
HOUSING, UM, THAT ARE CURRENTLY
OCCUPIED BY AN INDUSTRIAL
INCOMPATIBLE USE, UM, CAN
CONTINUE TO EXIST IN PERPETUITY.
OUR CITY COUNCIL DID JUST IN
DECEMBER, ADOPT SOME NEW
REGULATIONS REQUIRING THE PHASE
OUT OF THESE INDUSTRIAL USES,
UM, BOTH TO ADVANCE
ENVIRONMENTAL JUSTICE AS WELL AS
PROVIDE NEW HOME OPPORTUNITIES
AS WE ENVISIONED WITHIN OUR
PLAN. OTHER THINGS THAT WE'VE
LOOKED AT INCLUDE DEVELOPMENT
IMPACT FEES. UM, THIS CITY IN 20
BEGINNING IN 2020, THEN
FOLLOWING UP WITH FULL
IMPLEMENTATION IN 2021 WE
ADOPTED SCALED, UH, DEVELOPMENT
IMPACT FEES, WHICH MEANS THAT A
LARGER UNITS GENERALLY PAY MORE,
UH THAN UNITS THAT ARE SMALLER.
UM WE DID HAVE A LITTLE BIT OF A
CONCERN THAT WOULD BE
DISINCENTIVIZING LARGER HOMES
FOR FAMILIES AGAIN. AND SO WE
HAVE SOME TWEAKS THERE. UM, THAT
KIND OF MAX OUT A DEVELOPMENT
IMPACT. IF IT'S THREE BEDROOMS
OR LARGER, UM, AS LONG AS IT
DOESN'T EXCEED 1500 SQUARE FEET.
UM WE HAVE ALSO PROVIDED CERTAIN
INCENTIVES, UM THROUGH OUR PARKS
DEVELOPMENT IMPACT FEE PROGRAM
TO PROVIDE DISCOUNTS FOR
AFFORDABLE HOUSING, AS WELL AS
AREAS LOCATED NEAR TRANSIT TO
ADVANCE OUR CLIMATE GOALS. UM,
SOME OF THE CHALLENGES WITH
WAIVING DEVELOPMENT IN FACT FEES
I DO WANT TO SORT OF IMPLORE THE
COMMITTEE TO CONSIDER IS THAT
EVERY TIME WE WAVE DEVELOPMENT
IMPACT FEES, IT IS A LOSS OF
REVENUE, UM, TO BE ABLE TO FUND
NEEDED INFRASTRUCTURE IN OUR
COMMUNITIES. UM, SEVERAL OF THE
WAYS THAT WE ADDRESS THIS IS
THROUGH AGGRESSIVELY P. GRANT
FUNDING. UM BUT BECAUSE, UH,
LOCAL JURISDICTIONS HAVE SUCH
LIMITED ABILITY TO RAISE REVENUE
AND GENERATE INCOME NEEDED TO BE
ABLE TO SERVE OUR COMMUNITY
MEMBERS. ANY HIT TO OUR
DEVELOPMENT IMPACT FEES IS VERY
PROBLEMATIC. WE OF COURSE COMPLY
WITH ALL THE STATE LAW
REQUIREMENTS FOR NEXUS STUDIES
FOR DEVELOPMENT IMPACT FEES. UM
BUT, UM, IT IS STILL AT THIS
TIME, A FUNDING SOURCE THAT IS
VERY CRITICAL. AND SO IT'S
SOMETHING TO BE BALANCED WITH
OUR HOUSING POLICIES. UM, WE
MOVED TO CITYWIDE UH,
DEVELOPMENT IMPACT. UM,
PREVIOUSLY WE HAD A DIFFERENT
FEES. UH, FOR EACH OF OUR 50
DIFFERENT COMMUNITIES, THEY
RANGE FROM AS LOW AS $600 PER
UNIT TO AS HIGH AS 100 AND
$20,000 PER UNIT. AS YOU CAN
IMAGINE THIS RE RESULTING IN
VERY DISPARATE DEVELOPMENT, UH,
PATTERNS THROUGHOUT THE CITY
BECAUSE THAT CHANGES THE
DEVELOPMENT PERFORM A
SIGNIFICANTLY, UM, IT ALSO WAS
RESULTING IN, UH, THE OPPOSITE
OF AFFIRMATIVELY FURTHERING FOR
HOUSING BECAUSE THE HIGHER FEES
WERE GENERALLY LOCATED IN THE
HIGHER RESOURCE AREAS OF OUR
CITY AT THIS TIME NOW, TODAY,
THE PROGRAM IS FULLY P. IN AND
FEES ARE THE SAME IN EVERY
COMMUNITY THROUGHOUT OUR CITY.
ANOTHER THING, UM, THAT THE CITY
OF SAN DIEGO DID, UM, THROUGH
OUR PARKS MASTER PLAN, WHICH HAD
NOT BEEN UPDATED IN OVER 60
YEARS IS WE LOOKED AT, UH
DIFFERENT THINGS THAT CAN IMPACT
HOUSING DEVELOPMENT. AND UM, YOU
WOULD THINK THAT A PARKS MASTER
PLAN COULD BE A NICE, SIMPLE,
FEEL GOOD PLAN, BUT IT ACTUALLY
WAS QUITE CONTROVERSIAL, UH, FOR
A VARIETY OF REASONS, UM, ONE OF
WHICH IS THAT THERE ARE STARK
DISPARITIES IN THE QUALITY AND
QUANTITY OF PARKS. UM, PRIMARILY
IN OUR UNDERSERVED COMMUNITIES,
UH, VERSUS OUR MORE AFFLUENT
AREAS. UM, THIS IS A RESULT OF
DISPARATE DEVELOPMENT IMPACT
FEES THAT OCCURRED OVER TIME, UM
, BUT ALSO JUST DEVELOPMENT
PATTERNS. UM OUR CITY ALSO HAD
A, UH, OUTDATED PARK STANDARD
FOR NEW DEVELOPMENT THAT WAS
BASED SOLELY ON ACREAGE OF 2.8
ACRES OF PARKLAND PER 1000
PEOPLE. UM, THAT ASSUMES A
POPULATION THAT ASSUMES A
DEVELOPMENT PATTERN THAT IS MORE
BASED ON URBAN SPRAWL. UM, NEW
PLANS, SUBDIVISIONS, UM, WITH
YOU KNOW, GREENFIELD SPACE HAVE
OPPORTUNITIES TO PROVIDE THOSE
TYPES OF PARKS. BUT IF WE WERE
TO APPLY THAT 2.8 ACRE, UH, PER
1000 POPULATION STANDARDS, WHO
ARE DOWNTOWN SAN DIEGO THAT
WOULD COVER THE ENTIRETY OF OUR
DOWNTOWN SAN DIEGO. UM AND SO
THAT'S AN UNWORKABLE STANDARD
AND AN EXAMPLE OF THINGS THAT WE
REALLY NEED TO BE LOOKING AT IS
THINGS THAT ARE ARE A BARRIER TO
HOUSING PRODUCTION. WHEN WE ARE
REQUIRED DEVELOPMENT TO PROVIDE
PARKS. WE NEED TO PROVIDE THE
FLEXIBILITY TO PROVIDE
INNOVATIVE PUBLIC SPACES THAT
MEET THE NEEDS OF THAT THE CITY
OF SAN DIEGO NOW DOES HAVE A NEW
PARK STANDARD THAT FOCUSES ON
RECREATIONAL VALUE. UM AND
MAKING SURE NEW DEVELOPMENT
AGAIN HAS THE NEEDED PUBLIC
SPACES TO ENSURE THAT WE HAVE
ACTIVE, THRIVING COMMUNITIES.
UM, BUT IT'S NOT UNNECESSARILY
STIFLING DEVELOPMENT WITH
STANDARDS THAT CANNOT BE
ACHIEVED. UM OTHER, UM. YOU KNOW
OTHER THINGS THAT I AM LOOKING
FORWARD TO US DOING. UM, I WOULD
BE REMISS IF I DID NOT MENTION
THAT A LOT OF IT IS DEPENDENT ON
THE REAP FUNDING. UM THAT WE HAD
, UH, ANTICIPATED FROM OUR
AWARDS FROM OUR, UH, MP Ó. UM
SAND IS WE ARE LOOKING AT OUR
CITY OWNED LAND, UM, TO BE ABLE
TO PROVIDE, UH, A STREAMLINED
PROCESS AS WELL AS UM,
IDENTIFYING WHERE THE
OPPORTUNITIES ARE ON OUR CITY
OWNED LAND TO PROVIDE MORE HOME
OPPORTUNITIES. UM THIS IS
INTENDED TO BE A COMPREHENSIVE
PLAN TO REALLY LOOK AT THE NEEDS
OF OUR CITY OPERATIONS AS WELL
AS WHERE WE CAN ESSENTIALLY
SQUEEZE. UM AFFORDABLE, UM, AS
WELL AS MARKET RATE
OPPORTUNITIES ON OUR CITY OWNED
PROPERTY. PART OF THIS IS ALSO
PROVIDING IN A MASTER PLANNING
PROCESS THROUGH A PUBLIC PROCESS
THROUGH A CERTIFIED
ENVIRONMENTAL DOCUMENT IS TO BE
ABLE TO IDENTIFY WHAT THE
EXPECTED STANDARDS ARE, UM, SO
THAT WE CAN PROVIDE A
STREAMLINED PATH, UM, TO PROJECT
APPROVAL. WE ARE ALSO, UM,
LOOKING FORWARD TO WORKING WITH
SOME KEY RESEARCH ASSOCIATIONS.
UH, UH, TO BE ABLE TO IDENTIFY
FUNDING STRATEGIES. UM, AND
MAYBE OF INTEREST TO THIS
COMMITTEE, LOOKING AT DIFFERENT
WAYS THAT WE CAN, UH WE CAN DO
AFFORDABLE HOUSING BECAUSE A LOT
OF THE WAYS THAT WE DO IT RIGHT
NOW ARE NOT WORKING. UM AND SO
WE ARE EXCITED TO WORK WITH SOME
RESEARCH PARTNERS, UM, TO BE
ABLE TO LOOK AT, UM OTHER TYPES
OF HOUSING, SOCIAL HOUSING,
COOPER HOUSING OTHER TYPES OF
HOUSING THAT PROVIDE HOME
OWNERSHIP. OPPORTUNITIES UM AND,
UH, REALLY COMMUNITY LAND TRUSTS
. UM AND REALLY LOOK AND SEE HOW
WE CAN THINK CREATIVELY TO DO
THINGS TO DELIVER HOUSING THAT
MEETS THE NEEDS OF PEOPLE THAT
LIVE IN OUR COMMUNITIES. UH,
WE'RE ALSO LOOKING, UM AT
MISSING MIDDLE. UM, HOUSING. UM
AND, UM, LOOKING FORWARD TO
BEING ABLE TO, UM, LOOK AT
ECONOMIC FEASIBILITY. A LOT OF
THE WORK THAT THE TURNER CENTER
PROVIDED IS HELPFUL. WE ALSO
HAVE OUR OWN CONSULTANTS THAT WE
UTILIZE, UM ECONOMISTS TO BE
ABLE TO TELL US WHAT TYPES OF
PROJECTS WILL PENCIL. UM,
BECAUSE WE DON'T WANNA CREATE
REG REGULATIONS FOR PRODUCT TYPE
THAT THE MARKET CAN'T DELIVER.
UM OR THAT WE DON'T HAVE SOME
SORT OF STRATEGY TO BE ABLE TO
DELIVER. UM SO THROUGH OUR
MISSING MIDDLE HOMES PROPOSAL
THAT WE'LL BE WORKING ON. WE'RE
LOOKING TO IDENTIFY, UM, PRODUCT
TYPES. UM THAT MAKES SENSE. UM
SHOW RENDERINGS LIKE SIMILAR TO
WHAT THE CITY OF SACRAMENTO HAS
DONE TO SHOW PEOPLE HOW THESE
CAN ENHANCE THEIR COMMUNITIES,
UM, AS WELL AS ALSO PROVIDE THAT
HOME OWNERSHIP. UM OPPORTUNITIES
. WE DO NEED SOME HELP FROM THE
STATE TO BE ABLE TO MAKE THAT
HAPPEN WITHOUT UNNECESSARY
DELAYS IN APPEALS, ESPECIALLY
THROUGH REFORMS FROM THE
SUBDIVISION MAP ACT. UH, WE ALSO
ARE LOOKING UM TO, UH, BASICALLY
PROVIDE TEMPLATED DESIGNS FOR
MISSING MIDDLE HOMES THAT CAN BE
PROCESSED MINISTERIAL BY RIGHT,
UM, THROUGH OUR DEVELOPMENT
SERVICES DEPARTMENT TO BE ABLE
TO GET THESE PROJECTS ON THE
GROUND AND MOVING AS QUICKLY AS
POSSIBLE. UM OTHER THINGS, UM,
THAT WE HAVE TO LOOK FORWARD TO
AND I'LL WRAP IT UP. UM I JUST
WANNA PUT A QUICK PLUG IN FOR
THE IMPORTANCE OF COMMUNITY
ENGAGEMENT. AND OF ALL OUR LAND
USE PLANNING DECISIONS. WE ARE
CURRENTLY DEVELOPING AN
INCLUSIVE PUBLIC ENGAGEMENT
GUIDE, UM, WHICH IS REALLY
CRITICAL TO BE ABLE TO HAVE
INPUT FROM THE COMMUNITIES SO
THAT WE MAKE SURE THAT WE'RE
TAILORING OUR HOUSING POLICIES.
UM, THAT MEET THE NEEDS OF
EVERYBODY THAT LIVES IN OUR
CITY. THANK YOU. THANK YOU, MISS
ANNE BLUMAN. THANK YOU TO BOTH.
UH, I THINK, UH, REMARKABLE
EXAMPLES FOR, UH, THE LOCAL
POLITICAL WILL THAT WE HAVE, UH,
IN SOME AREAS OF OUR STATE THAT
YOU KNOW, CAN INFORM WHAT OTHER
COMMUNITIES CAN DO. UH AND I
WANNA HEAR FROM MEMBERS. BUT LET
ME JUST, UH BROADLY, BOTH KIND
OF TOUCHED ON A COUPLE OF
POINTS, YOU KNOW? WHAT ARE SOME
CONSTRAINTS IN STATE LAW THAT WE
SHOULD BE FOCUSING ON WHEN YOU
HAVE THE POLITICAL WILL AT HOME,
RIGHT WHEN YOU'RE PLANNING FOR
CAPACITY, AND THEN YOU'RE JUST
RUNNING AGAINST THOSE HEADWINDS
OF SOME REALITIES OUT THERE
OUTSIDE OF YOUR CONTROL? WHAT
MORE CAN WE DO TO HELP YOU
FULFILL THE VISION THAT YOU'RE
TRYING TO DO IN YOUR CITIES? IT
HAS A LITTLE BIT ON. I THINK,
YOU KNOW, UH UM, THE ABILITY TO
APPEAL AND, UH AND THAT'S THAT'S
A CONSTRAINT ON WORKING ON
SUBDIVISION MAP ACT, YOU KNOW,
WHERE ARE SOME OTHER THINGS
WHERE THE STATE IS A BARRIER TO
YOUR, UM YOUR VISION AND YOUR
ENERGY TO PRODUCE MORE HOUSING.
UM, I CAN START. UM FIRST THE
APPEALS, UH, THE ADMINISTRATIVE
APPEALS FROM A S¼ PERSPECTIVE.
UH, WELL, I THINK THAT THEY CAN
WORK WELL IN A SMALLER
JURISDICTION IN A LARGE
JURISDICTION. IT'S VERY
DIFFICULT TO BE ABLE TO TAKE
EVERY SINGLE ITEM TO AN APPEAL
TO OUR ELECTED DECISION MAKERS,
AND IT RESULTS IN SIGNIFICANT
DELAYS TO NEW DEVELOPMENT
PROJECTS. UM THE SUBDIVISION MAP
ACT, UM, IN MY OPINION, UM, YOU
KNOW, IS GREAT AND IT'S WELL
INTENDED. IT'S INTENDED TO MAKE
SURE THAT, UM YOU KNOW, WE ARE
NOT SUBDIVIDING LAND THAT
DOESN'T HAVE ACCESS AND WATER
AND SUNLIGHT, ETCETERA. UM, BUT
IN AN INFILL ENVIRONMENT, UM,
THOSE CONCERNS ARE LARGELY
ALREADY ADDRESSED THROUGH ACCESS
. UM AND I DO BELIEVE THAT THERE
ARE WAYS THAT THE STATE COULD
CREATIVELY THINK, UM, TO BE ABLE
TO IDENTIFY OBJECTIVE STANDARDS
TO APPROVE SUBDIVISIONS
MINISTERIAL WITHOUT REQUIRING
PROJECTS THAT OTHERWISE WOULD
NOT BE SUBJECT TO THAT PROCESS,
UM, TO BE ABLE TO DIVIDE INTO
HOMEOWNERSHIP OPPORTUNITIES. UH,
WITHOUT THAT DISCRETIONARY
PROCESS AS WELL, UM THINGS JUST
TO CONSIDER IN DEVELOPMENT
IMPACT FEE REFORMS IS TO
CONSIDER THE IMPACT OF THE
MUNICIPALITY, UM IN TERMS OF ANY
FEE, WAIVERS OR REDUCTIONS, AND
THEN ALSO REALLY TO THINK ABOUT
THE TYPES OF THINGS THAT WERE
INCENTIVIZING WHEN WE'RE ONLY
WAIVING DEVELOPMENT IMPACT FEES
FOR SMALL UNITS. UM IT. I COULD
PROBABLY GO ON. BUT I'M I'M
GONNA SHARE IT, UH, WITH MY
COLLEAGUE HERE. YEAH YOU
MENTIONED THE SUBDIVISION MAP
ACT. WE JUST HAD A PROJECT. UM
THAT EXHAUSTED THE APPEAL
PROCESS FOR OUR LOCAL
ENTITLEMENTS, BUT IT WAS A CONDO
PROJECT, SO IT NEEDED A
TENTATIVE MAP AND TENTATIVE MAPS
BY STATE LAW CAN GO TO COUNCIL.
AND SO NOW THAT PROJECT'S GOING
TO COUNCIL IN MARCH FOR A
LENGTHY DEBATE. UM AND, UH, I
THINK THE DEVELOPER IS ALSO
CONSIDERING THIS CHANGING THAT,
JUST GOING WITH A RENTAL PRODUCT
INSTEAD, AND NOT EVEN DOING THE
CONDO, THE AIR SPACE PARCELS UM,
SPEAKING OF CONDOS, I KNOW THIS
IS TOUGH POLITICALLY BUT CONDO
LIABILITY. 10. YEARS OF
VIABILITY, TALKED A LOT OF
DEVELOPERS. THEY WANT TO PROVIDE
OWNERSHIP PRODUCT, BUT THAT'S
JUST A VERY SCARY PROPOSITION.
UM SO IN THE MEANTIME UM I WON'T
WAIT FOR THAT CHANGE. BUT I AM
LOOKING AT OUR CONDO CONVERSION
ORDINANCE WHERE PERHAPS A CLASS
A APARTMENT, UH, BUILT WITHIN,
YOU KNOW, BETWEEN 10 AND 15
YEARS ALLOW THAT CONVERSION TO
HAPPEN. WE ARE CONCERNED ABOUT
CONVERSION OF A LOW INCOME
APARTMENTS OR SOME OF THE
NATURAL, AFFORDABLE, ATTAINABLE
PROJECTS BEING CONVERTED TO
CONDOS. JUST BECAUSE OF THE WHAT
COULD HAPPEN THERE IS THE RENTS
ARE SO LOW. UM MR GARCIA
MENTIONED, UH, OUR OUR BUILDING
STANDARDS AND CODES. WE
ABSOLUTELY NEED TO MAINTAIN
HEALTH AND SAFETY. BUT I DO
WONDER HOW DOES OUR BUILDING
CODE COMPARE? TO OTHER STATES.
IN TERMS OF COSTS, THINGS WE
FOUND IMPORTANT YEARS AGO TO ADD
TO THAT CODE. ARE THEY STILL
IMPORTANT? IN LIGHT OF THE
HOUSING CRISIS? WE'RE IN UM WE
POWER. THANK YOU, MR CHAIR.
THANK YOU BOTH FOR TAKING THE
TIME OUT TODAY. I KNOW YOU HAVE
PLENTY ON YOUR TAPE ON YOUR
TABLE, UH, TO WORK, AND SO TO BE
HERE TO HELP US IS VERY, UM,
APPRECIATED, APPRECIATED AND
THEN KIND OF LIABILITY. YOU MEAN
LIKE IN TERMS OF CONVERTING IT?
FROM OWNERSHIP. TO RENTAL MY
UNDERSTANDING IS THAT. AS THE
DEVELOPER THAT BUILT THE CONDO.
THEY COULD STILL BE SUED 10
WITHIN 10 YEARS FOR CONSTRUCTION
DEFECTS. AND SO THEY GET VERY
EXPENSIVE INSURANCE POLICIES TO
COVER THAT THAT POTENTIAL
LIABILITY IT SEEMS TO BE UNIQUE
COMPARED TO MULTIFAMILY
DEVELOPMENT. OH I SEE WHAT
YOU'RE SAYING. OK SO THERE'S A
DISTINCTION FROM SPECIFIC TO
CONDOS VERSUS SINGLE FAMILY AND
WAS THAT IS THAT SOMETHING THAT
WAS PLACED ON THE LAW OF SOME
THE LONG SOME RELIC OR IS THAT
SOMETHING THAT WAS KIND OF COURT
DEEMED MORE RECENTLY. I DON'T
KNOW IT'S BEEN IN THE CIVIL
CODE. FOR AS LONG AS I'VE BEEN
IN MY CAREER, OK, WELL, THAT'S
YOU KNOW, THOSE ARE THE KIND OF
THINGS THAT I WOULD BE OTHERWISE
MAY NOT BE AWARE OF. THAT COULD
BE HELPFUL IN TERMS OF
FACILITATING THAT KIND OF
DEVELOPMENT. YEAH I THINK A
DEMOGRAPHIC SHIFTS. I THINK YOU
HAVE SOME FOLKS THAT THAT WANT
TO DOWNSIZE, BUT THEY DON'T
WANNA RENT THEY WANNA MOVE TO
OUR ENVIRONMENT, TRANSFER THE
EQUITY OVER AND I. I THINK
THAT'S A MISSING PART OF OUR
HOUSING MARKET. YEAH. NÓ I. I
THINK THAT I THINK YOU'RE YOU'RE
RIGHT ON THAT. LET ME SEE. YOU
KNOW IT WAS AS TIME FLIES LIKE
19 YEARS AGO, WHEN I WAS
APPOINTED TO THE PLANNING
COMMISSION IN SAN JOSE, AND THE
CONVERSATIONS BACK THEN, EVEN ON
THE MOST MINUSCULE REDUCTION IN
PARKING REQUIREMENTS WERE
PAINFUL HOURS LONG CONVERSATION
SO IT'S GOOD THAT WE'VE SEEN
THIS, UH AND YOU KNOW, PARTLY
BASED ON URGENCY AND NEED THAT
WE ARE HAVING THESE
CONVERSATIONS I KNOW ON ON NÓ
MAXIMUM DENSITY NÓ MINIMUM
PARKING. WHAT HAVE YOU AND IT
SOUNDS LIKE THAT'S SOMETHING
THAT'S MORE, UM MORE CURRENT IN
SACRAMENTO, BUT IT SOUNDS LIKE
SAN DIEGO HAS BEEN DOING THAT
FOR A COUPLE OF YEARS. UH AND
THE RESULTS HAVE BEEN POSITIVE
IN TERMS OF SPURRING
INCENTIVIZING HIGHER DENSITY
BECAUSE THAT'S THE KEY IS
WHENEVER THERE IS ENTITLEMENTS,
GIVEN TO HAVE IT AS HIGH AS
DENSITY AS POSSIBLE, AND
SOMETIMES DEVELOPERS DON'T
NECESSARILY WANT TO GO HIGHER
DENSITY. WE'VE SEEN THIS IN SAN
JOSE AND OTHER PLACES, EVEN IF
THEY'RE ENTITLED TO, AND SO
THERE IS THAT CARROT ASPECT
BECAUSE, HEY, YOU CAN BUILD X
AMOUNT. THEY DON'T WANNA GO AND
BUILD THAT MUCH. IS THERE ANY
KIND OF OTHER INCENTIVES THAT
MAY AND I DON'T WANT TO SAY
STICKS BECAUSE WE CERTAINLY WANT
TO ENCOURAGE MORE DEVELOPMENT.
BUT ANY LIKE HOW DO WE ENCOURAGE
THEM TO DEVELOP TO THE MAXIMUM
DENSITY EVEN IF IT'S ALLOWABLE?
A LOT OF THEM AREN'T DOING IT
BECAUSE THEY WANNA GET ON ON
MARKET AS FAST AS POSSIBLE. SO
THEY MAY YOU KNOW, COMPROMISE
SOME OF THE NUMBER OF UNITS I IS
THERE OTHER THAN MAKING GIVING,
UM. ALLOWING FOR THAT DENSITY.
OTHER OTHER INCENTIVES WE CAN
GIVE TO ACTUALLY GET THEM TO
BUILD TO THAT DENSITY. I THINK
THE DENSITY BONUSES ARE CRITICAL
IN THAT SPACE, BECAUSE WHEN YOU
TYPICALLY LOOK AT THE PERFORMERS
WHEN YOU ACHIEVE THAT DENSITY
BONUS, IT DOES MAKE, UH,
FINANCIAL SENSE, UH, FOR THE
PROJECTS TO PROVIDE THAT
ADDITIONAL DENSITY. UM A LOT OF
ZONING ORDINANCES WILL ALLOW FOR
A MAXIMUM FA R THAT DON'T
NECESSARILY PENCIL AT THE FA R.
BUT WHEN YOU ADD IN A BONUS, IT
CAN CHANGE THE EQUATION THERE.
UM THERE IS ALSO AN OPPORTUNITY
TO LOOK AT, UM, MINIMUM
DENSITIES AS WELL. YEAH. AND?
AND IS THAT SOMETHING THAT IS
COMMONPLACE AT ALL IN IN
JURISDICTIONS IN CALIFORNIA TO
YOUR KNOWLEDGE. UM SO, UH, RIGHT
NOW, THE CITY OF SAN DIEGO IS
LOOKING. UH TO WE WILL. WE HOPE
TO BRING THIS TO OUR CITY
COUNCIL THIS YEAR, BUT WE ARE
UPDATING OUR GENERAL PLAN TO
IDENTIFY AREAS, UH, WITH, UH,
MINIMUM DENSITIES AND
INTENSITIES TO BE ABLE TO MEET
OUR CLIMATE GOALS. UM AND AS
PART OF THAT PROCESS, UH, WE ARE
LOOKING TO PROVIDE FOR
STREAMLINED APPROVALS.
ADDITIONAL STREAMLINED APPROVALS
, UM, THROUGH THE ADOPTION OF
CERTIFICATION OF A PROGRAM
ENVIRONMENTAL IMPACT REPORT FOR
PROJECTS THAT FALL WITHIN THE
MIN. MAXIMUM DENSITY THAT WE'VE
STUDIED. UM SO INHERENTLY THERE.
THERE IS A DISINCENTIVE TO FALL
BELOW THE MINIMUM BECAUSE IT
WOULD NOT BE, UM, BENEFICIAL.
UH, THE BENEFICIARY OF THE
STREAMLINING. YEAH, IT'S THAT WE
DEFINITELY HAVE TO YOU KNOW,
FOLLOW YOUR LEAD IN TERMS OF
WHAT'S WORKING AT THE LOCAL
LEVEL. WHAT'S ANYTHING AT THE
STATE LEVEL THAT CAN HELP
INCENTIVIZE MINIMUM DENSITIES?
BECAUSE AS WE ALL KNOW, IT'S HOW
FRUSTRATING IT CAN BE,
ESPECIALLY IN URBAN AREAS WHEN
YOU HAVE THESE HIGH RISES BEING
BUILT, OR THESE TALLER BUILDINGS
BEING BUILT WITH HIGHER DENSITY,
AND THEN YOU HAVE THESE TWO
STORY BUILDINGS BEING BUILT THAT
ARE GOING TO BE THERE FOR
GENERATIONS AND COMPLETELY
STYMIE OUR EFFORTS. UM IN TERMS
OF THE ZERO CITY IMPACT FEES FOR
AFFORDABLE HOUSING UNITS. UH AND
I AND I, I, UM I HEARD, UM MISS
VON BLOOM THE CITYWIDE
DEVELOPMENT IMPACT FEES IN SAN
DIEGO AND WHICH I THINK MAKES
SENSE BECAUSE YOU WHAT? TO YOUR
POINT. WHAT ENDS UP HAPPENING IS
IN. YOU HAVE THESE, UM
AFFORDABLE HOUSING PROJECTS
BUILT WITHOUT IMPACT FEES, AND
THEY DON'T HAVE THE
INFRASTRUCTURE OF THE PARKS AND
OPEN SPACES, YOU KNOW, BICYCLE
PEDESTRIAN INFRASTRUCTURE
NEARBY. CITYWIDE ALLOWS THAT YOU
KIND OF KIND OF ALLOWS THE CITY
TO KIND OF FIGURE OUT WHERE
THOSE TYPES OF AMENITIES ARE
NECESSARY, AS OPPOSED TO WHERE
THEY'RE BEING PAID INTO. BUT HOW
DO WE DEAL WITH? YOU KNOW THE
PUSH BACK THAT MIGHT OCCUR FROM
SOME OF THE WEALTHIER AREAS THAT
HAVE A CERTAIN EXPECTATION OF
WHAT THEY DESERVE. IS THAT BEEN
AN ISSUE AT ALL? OR IS THAT
SOMETHING THAT BECAUSE IT'S
CITYWIDE, YOU'RE ABLE TO KIND OF
BUFFER. SOME OF THAT SOME OF
THOSE CONCERNS. YEAH, THAT
WASN'T CONTROVERSIAL AT ALL.
IMAGINE UH, YEAH, IT IS VERY
CONTROVERSIAL. UM, AND THAT'S
THE IMPORTANCE OF THE NEXUS
STUDY AND BEING ABLE TO
ESTABLISH THROUGH PLANS AND
POLICIES. THAT REASONABLE
RELATIONSHIP, UH, BETWEEN THE
BURDEN POSED BY DEVELOPMENT. UM,
AND THE AMOUNT OF THE FEE THAT
THAT IS BEING COLLECTED. UM WE
ARE ONE CITY. UM IN SAN DIEGO.
WE MAY BE SEPARATED, BUT THE
REALITY IS THAT PEOPLE DO NOT
LIVE AND WORK AND PLAY ALL IN
ONE COMMUNITY ALL DAY LONG. THEY
USE èC CITY SERVICES ALL ACROSS
THE CITY. I THINK FIRE IS A
GREAT EXAMPLE OF FIRE STATION IN
THE NORTHERN PART OF OUR CITY IS
NOT GONNA STOP AT THE BORDER OF
THE COMMUNITY AND NOT SAVE
SOMEBODY THAT NEEDS LIFE SAVING
SERVICES IN ANOTHER COMMUNITY. I
MEAN, IT'S ACTUALLY JUST KIND OF
RIDICULOUS IF YOU THINK ABOUT IT
, UM, TO DO THAT, UM, I HAVE
THREE SMALL CHILDREN. THEY PLAY
AT PARKS ALL OVER THE CITY. WE
GO TO SOCCER. THERE'S NÓ. WE
DON'T STAY IN OUR COMMUNITY. UM
AND SO THESE ARE THINGS THAT WE
ESTABLISHED VERY INTENTIONALLY,
UM, THROUGH THE PLANS AND
POLICIES THAT WERE ADOPTED TO BE
ABLE TO IDENTIFY THAT, UM, THERE
IS, UM, OBVIOUSLY YOU KNOW A
POLITICAL PROCESS ASSOCIATED
WITH, UM THE EXPENDITURE OF THE
FUNDS. UM, BUT WHAT WE'VE DONE
IS WE'VE PROVIDED, UH,
PRIORITIZED POLICIES FOR THINGS
LIKE PRIORITIZING INVESTMENTS
FROM DEVELOPMENT IMPACT FEES IN
AREAS WHERE THE MOST PEOPLE WILL
BE USING IT, UH, EFFICIENT USE
OF RESOURCES AS WELL AS THE
AREAS EXPERIENCING THE MOST
GROWTH. UM SO THAT WE CAN ENSURE
THAT AREAS EXPERIENCING THE
DEVELOPMENT ARE HAVING
CORRESPONDING INVESTMENTS. UH,
THANK YOU. AND THEN, FINALLY ON
THE, UM PRIMARY HOUSING
PERMITTED AND COMMERCIAL ZONES,
AND THAT'S SOMETHING THAT
CERTAINLY THE STATE LEVEL WE'VE
ESPECIALLY WITH THE CHANGE IN
RETAIL, UM, BEHAVIOR, UH, AS AS
WELL AS YOU WORK FROM HOME AND
ALL THESE DIFFERENT FACTORS THAT
COME TO MIND THAT CONTINUED PUSH
TO MIXED USE. UM DEVELOPMENTS IN
ESPECIALLY IN A KIND OF
TRADITIONAL COMMERCIAL AREAS,
THE KIND OF THE LARGE PARKING
LOT WITH LITTLE STRIP MALL AND
BUT WE CAN HAVE. WE CAN
REIMAGINE THAT. AND UM, MR
STANLEY, WE'RE TALKING ABOUT HOW
IT CAN BE. YOU KNOW, YOU
MENTIONED ONE PARTICULAR PROJECT
WAS VERY UNPOPULAR WITH THE
NEIGHBORHOOD. AND WHAT HAVE YOU,
BUT, UM, ULTIMATELY, AND WE'VE
SEEN THE STATE LEVEL, YOU KNOW,
KIND OF CREATING SOME OF THESE
BY RIGHT, UH, DEVELOPMENTS THAT
HAVE ALSO CREATED SOME ISSUES
WHEN THEY DON'T BUILD TO THE
DENSITY THAT WE NECESSARILY ARE
HOPING FOR IN THOSE KINDS OF
SITUATION. SO AS WE LOOK TO SOME
OF THE COMMERCIAL ZONES AND I, I
GUESS BY BY HAVING A STAFF LEVEL
DETERMINATION, IT CREATES SOME
KIND OF BUFFER, QUITE FRANKLY,
ON THE POLITICAL SIDE, BECAUSE
THAT'S WHAT WE SEE A LOT FROM
THE LOCAL LEVEL IS THE LOCAL
SURE, ESPECIALLY THE SMALLER
JURISDICTIONS MORE SO THAN THE
LARGER CITIES, BUT WE SEE IT
EVERYWHERE. UM IS YOU KNOW THE
IT BECOMES MORE POLITICALLY
CHALLENGING FOR THE ELECTED
OFFICIALS TO BE ABLE TO PUSH
BACK AGAINST NEIGHBORHOOD
CONCERNS, EVEN THOUGH MOST OF
THE TIME ONCE THE PROJECT IS
BUILT. YOU KNOW, IT'S USUALLY
DONE IN A MANNER THAT BENEFITS
THE NEIGHBORHOOD AND THE FEARS
ARE USUALLY NOT MET, UM IN TERMS
OF THE REALITY, BUT WHAT ARE YOU
KNOW ARE ARE THERE, UM, WAYS IN
WHICH WE CAN HELP MOVE MORE SO
THAN WHAT THE STATE HAS ALREADY
DONE, UM, PRODUCTION IN
COMMERCIAL ZONES, GIVEN THE
CHANGING LANDSCAPE OF HOW CITIES
OR HOW COMMUNITIES ARE
INTERACTING WITH ONE ANOTHER. OR
HAVE YOU GIVEN YOU THE TOOLS
THAT YOU NEED NOW IT'S JUST A
MATTER OF MOVING FORWARD ON IT.
YEAH, I IN THAT REGARD, I THOUGH
I CAN'T I JUST HAVE OUR
PERSPECTIVE WHERE WE ALLOW THAT
AL ALREADY BY, RIGHT? AND UM,
THE STATE NOW IS REQUIRED. THAT
WAS CERTAIN CONDITIONS. UM I
THINK JUST DEVELOPMENT IN IN IN
COMMERCIAL AREAS. I WE DO HAVE
MINIMUM WE DO HAVE MINIMUM
DENSITIES AND MINIMUM FA IN OUR
GENERAL PLAN, PARTICULARLY IN
OUR COMMERCIAL CORRIDORS. ALSO
AREAS, UM, WITH AROUND LIGHT
RAIL STATIONS. WE HAVE
PROHIBITED, AUTO ORIENTED USES
DRIVE THROUGHS. GAS STATIONS
LIKE THAT TO PRESERVE THAT LAND
FOR MORE PRODUCTIVE USES LIKE
HOUSING. UM SO IT'S ALSO LOOKING
AT THAT LAND AND MAKING SURE
IT'S AVAILABLE. UM SIMILARLY,
THE CITY OF SAN DIEGO DOES ALLOW
IT BY RIGHT ALREADY. UM, THERE'S
A THERE'S A LOT OF BARRIERS TO
THE CONVERSION OF EXISTING
COMMERCIAL SPACES INTO
RESIDENTIAL AND IT, UM HAS A LOT
TO DO WITH FINANCING AS WELL AS
JUST THE CONFIGURATIONS OF THE
FLOOR PLATES. UM, FOR THE
CONVERSIONS. UM, BUT THERE
CERTAINLY IS AN OPPORTUNITY TO
LOOK AT THE PARKING SPACES AS
WELL. AND I THINK THAT A B 2097
IS PARTICULARLY HELPFUL WITH
THAT, IN TERMS OF ELIMINATING
THOSE PARKING REQUIREMENTS TO
MAKE SPACE FOR THE LAND TO BE
ABLE TO PRODUCTIVELY USE THE
LAND. THANK YOU BOTH. THANK YOU,
MR CARVER. SOME MEMBER LEE THANK
YOU SO MUCH FOR BEING HERE. UH,
I HAVEN'T HAD THE PLEASURE OF
SERVING ON CITY COUNCILS LIKE MY
COLLEAGUES HAVE. SO I HAVE A
QUESTION IN CITY OF SACRAMENTO.
WE'RE DOING BUT I THINK IT IS
GOOD THAT OUR JUDICIARY CHAIRS
ASKED FOR THE CONDO LAW, SO THAT
WOULD BE IN YOUR JURISDICTION.
IF ANYTHING, I HAVE TO GIVE YOU
ALSO. COM ACCOMMODATION CITY
SACO TO TRYING TO GO TOWARDS A
FORM BASED ZONING. I DO HAVE A
STRONG BELIEF THAT PEOPLE ARE
MUCH MORE WORRIED ABOUT WHAT'S
UH, HOW A BUILDING LOOKS AND HOW
TALL IT IS RATHER THAN WHAT'S
THE USE OF IT INSIDE. IT'S QUITE
OUTDATED. UM, SO WE HAD A
PREVIOUS CONVERSATION ABOUT
IMPACT FEES, AND I KNOW YOU'RE
DRESS IT IN RIGHT SIDE RIGHT
NOW, UM WHY OR WHY NOT? HAVE YOU
LOOKED AT OR EXPLORED DOING
IMPACT FEE BASED ON SQUARE
FOOTAGE RATHER THAN UNITS,
BECAUSE FROM WHAT I UNDERSTAND,
IT SEEMS MOST CITIES ARE STILL
DOING IT ON A PER UNIT BASIS.
WHY HAVE YOU NOT MOVED? WHY OR
WHY NOT? HAVE YOU NOT LIKE
LOOKED AT THE OPTION OF DOING,
UH, SQUARE FOOTAGE OF UNITS? OH,
I DO. YEAH, WE DO DO SQUARE
FOOTAGE INSTEAD OF THE UNITS.
THERE'S SOME UTILITY IMPACTS
FEES SO THAT THE NEXUS IS A
LITTLE CHALLENGING ON A PER
SQUARE FOOT BASIS. BUT BESIDES
THAT, YEAH, WE WE'VE GONE TO
SQUARE FOOTAGE. THANK YOU. THANK
YOU. I WANT TO THANK TWO
PHENOMENAL PLANNING DIRECTORS,
UM, FROM, UH, FOR SHARING YOUR
OBSERVATIONS AND EXPERIENCES IN
FORMING. I THINK WHAT MORE WE
CAN DO HERE AND THEN I HOPE
THAT, UH, YOU KNOW, MAYBE LAY ON
THE TABLE, SOME THINGS THAT WE
COULD BE WORKING ON THIS YEAR TO
HELP YOU, UM, REALLY EXPAND ON
THAT POLITICAL WILL TO BE ABLE
TO DO MORE. UM, CERTAINLY, THE I
THINK COMMON GOALS ARE ARE ARE
THERE? UM SO I LOOK FORWARD TO
WORKING WITH BOTH OF YOU AND
YOUR RESPECTIVE CITIES TO BE
ABLE TO HELP CREATE STRONGER
ENVIRONMENTS THAT ARE PRODUCING
MORE HOMES. THANK YOU VERY MUCH.
WE'RE GONNA MOVE ON TO OUR
FINAL. UH, PANELIST, UM, WHO'S
GONNA SHOWCASE? UH, AN EXCITING
METHOD TO HELP KEEP SOME COSTS
LOW. WHILE WORKING ON A YBI
PROJECT. UH SOMETHING THAT
STARTED, OF COURSE BEFORE THE
ENACTMENT OF S¼ B FOUR BUT
WORTHY OF SHOWCASING. I THINK IT
WILL BE BRIEF, BUT WE'LL I THINK
, UM, SURPRISE MANY WATCHING
TODAY FOR WHAT THEY WERE ABLE TO
DO IN IN THE FORM OF REDUCING
COSTS. UH, SO I'D LIKE TO
WELCOME TO THE PRESENTATION
TABLE. MR DOUG AUSTIN, THE èC E
Ó OF A VÆ RP STUDIOS. FOR HIS
PRESENTATION AND LOOK FORWARD TO
LEARNING FROM FROM YOUR
EXPERIENCE TODAY. THANK YOU.
YEAH, WELL, THIS IS WORKING.
THANK YOU. UH, IT'S A PLEASURE
TO BE HERE. ACTUALLY I'M REALLY
GLAD THAT I SHOWED UP WHEN THIS
STARTED BECAUSE HEARING THE
OTHER PRESENTATION, SO IT'S
GREAT. I KNOW A BIT ABOUT SAN
DIEGO. BUT FINDING OUT MORE
ABOUT SACRAMENTO AND ESPECIALLY,
UM, THE TURNER CENTER, UH, WAS
TERRIFIC. SO I'M GONNA TALK
ABOUT YBY AND WHAT WE'RE DOING
YES, IN GOD'S BACKYARD. AND
THAT'S UH, CLEARLY A RESPONSE TO
NÓ IN MY BACKYARD, WHICH WAS THE
CASE FAR TOO LONG IN CALIFORNIA,
WHICH HELPED LEAD TO THE HOUSING
CRISIS THAT WE HAVE. SO I'M
GONNA TALK A LITTLE BIT ABOUT
WHAT WE HAVE DONE HERE. WHAT
WE'RE DOING HERE. IT'S UNDER
CONSTRUCTION. NOW UM, AND A
LITTLE BIT ABOUT WHAT WE WERE
ABLE TO TAKE ADVANTAGE OF IN
TERMS OF POLICY. BUT LET ME
EXPLAIN WHAT IT IS THE OTHER
THING. I'LL TELL YOU WHAT WITH
SO MANY TOPICS THAT WERE BROUGHT
UP. I WAS BACK IN. JUST GO. OH,
I'D LOVE TO JUMP INTO THAT
CONVERSATION. I'D LOVE TO JUMP
INTO THAT CONVERSATION, SO I'LL
TRY TO STICK TO WHAT I'M HERE
FOR. UM BUT ON THIS, UM, THIS
WAS AN ATTEMPT TO BUILD
AFFORDABLE HOUSING. UM ACTUALLY,
OUR TARGET IN THIS CASE IS AT
RISK VETERANS UNHOUSED VETERANS
AND WITH THE WHOLE IDEA OF YBY,
WHICH IS TEEMING WITH
ORGANIZATIONS OF FAITH TO USE
SOME OF THE LAND THAT'S
UNDERUTILIZED AND FIND PEOPLE
THAT MIGHT HAVE A HEART. TO
BUILD HOUSING FOR HOMELESS OR
LOW COST HOUSING. UM. BUT HOW DO
WE DO IT IN A WAY, WHICH IS MORE
COST EFFECTIVE THAT YOU CAN
ACTUALLY DO SMALLER PROJECTS AS
AN ARCHITECT. OUR FIRM WORKS
WITH A LOT OF CAPITAL, A
AFFORDABLE HOUSING DEVELOPERS
THAT GET TAX CREDIT FUNDING AND
I'LL TELL YOU IT START AND STOP
AND START AND STOP WHILE YOU
WAIT FOR THAT FUNDING, AND I
KNOW THAT JUST RECENTLY I WAS
LOOKING AT A SITE WITH ONE OF
THE BIG AFFORDABLE DEVELOPERS.
AND THEY SAID, OK, THIS IS FOR
CONSTRUCTION ONLY, AND THEY
BUILD THEIR OWN PROJECTS SAID
WELL FOR A ONE BEDROOM UNITS,
UH, IT WAS MAINLY ONE BEDROOMS
AND STUDIOS THEY WERE FIGURING
ABOUT $425,000 PER UNIT. WITH
THIS, YOU'LL SEE THAT WE'RE
BUILDING THESE FOR CONS. PURE
CONSTRUCTION COSTS SOMEWHERE
AROUND 252 $160,000 PER UNIT. SO
HOW DO WE DO IT? YOU CAN GO
AHEAD AND GO TO THE NEXT SLIDE
I. I CAN KIND OF SEE THE SLIDES.
OK, SO WE HAVE 26 UNITS.
ORIGINALLY WHEN I GOT INTO THE
PROJECT, IT WAS ACTUALLY ONLY 16
UNITS. AND UM, IT WAS GONNA BE A
MODULAR PROJECT. THE MODULAR
DOES NOT NECESSARILY MEAN COST
SAVINGS. THANK YOU. SOMETIMES
SOMETIMES IT CAN MEAN IT'S MORE
EXPENSIVE AND IN THAT CASE, IT
WAS SO BASICALLY, I REDESIGNED
THE PROJECT ON A PRO BONO BASIS
TO GET MORE DENSITY. UM WE WERE
ABLE TO GET MORE DENSITY BECAUSE
WE USE COMPLETE COMMUNITIES TO
GET GO HIGHER. GO DANCER. UM WE
DIDN'T HAVE TO PROVIDE PARKING,
WHICH WAS ANOTHER BIG HELP HERE
BECAUSE WITH THIS PARTICULAR
SEGMENT OF THE POPULATION THERE,
PROBABLY OTHER BETTER AVENUES
AND SPENDING A LOT OF MONEY ON
PARKING. PLUS, WE'RE RIGHT NEAR
A CORNER. THAT HAS, UH, GOOD BUS
SERVICE. UM. BUT BASICALLY, UM,
SO THERE'S AN OFFICE. THERE'S UH
WASHER DRYERS, AND THERE'S SOME
OUTDOORS AREAS FOR COMMUNITY
GATHERING. BUT THIS IS SHOWS YOU
AN IMAGE OF WHAT'S THERE, YOU
CAN GO AHEAD AND MOVE. MOVE
FORWARD. SEE HOW WE GOT THIS.
ALL RIGHT. UM YOU KNOW WHAT? I
THINK I'M GONNA MOVE TO THIS
BECAUSE IT'S. IMAGINATION IS THE
SAME. THANK YOU. UM. SO ONE OF
THE THINGS WE LOOK TO DO IS DO
100% PRIVATE FINANCING. UM AND.
HOW DO WE DO THAT? UM, WELL. THE
CHURCH. DONATED THE LAND. NOW
THEY THEY NEED A THEY NEED TO
RETURN ON THAT. AND THAT'S ONE
OF THE THINGS THAT A LOT OF
CHURCHES NOW THEY'RE DOWNSIZING.
THEY HAVE THE FREE LAND. BUT
THEY CAN'T JUST GIVE IT AWAY.
THEY THEY NEED TO GET SOMETHING
AND WE WERE ABLE TO FIGURE OUT
HOW TO DO THAT. SOME OF IT WAS
BASED ON DONATIONS. IN THIS CASE
. IT'S ABOUT A $7 MILLION
PROJECT AND WE GOT ABOUT 10% OF
THAT AND JUST DONATIONS THAT
NEVER NEED TO BE PAID BACK. SO
HAVING SOME PRO BONO FROM PRO
BONO SERVICES UPFRONT HELPS, UM,
BECAUSE YOU DON'T HAVE TO PAY
THAT BACK. BUT THE REST OF THE
FINANCING WAS 100% FINANCED.
PRIVATELY SO WE WEREN'T PAYING
BIG FEES FOR DOING THE TAX
CREDIT. WORK, WHICH. THAT HAS A
LOT OF COST TO A PROJECT AND
WHAT WE DID IS WE JUST ONE OF
THE WEALTHY BENEFACTORS, ANDY
BALLISTER, WHO WAS ONE OF THE
CO-FOUNDERS OF GOFUNDME WAS
WILLING TO BASICALLY WRITE A
LETTER OF CREDIT. HE UNDERWROTE
A LETTER OF CREDIT. HE'LL GET
PAID BACK WHEN WE GET PERMANENT
FINANCING, AND IT LOOKS LIKE THE
CHURCH WILL RECEIVE FUNDS AT THE
END OF THE DAY, WHICH WILL HELP
THEIR CONGREGATION. GO AHEAD
NEXT SLIDE. THIS SHOWS THE BASIC
CONFIGURATION. WHAT I DID WAS
REDESIGNED THE PROJECT TO JUST
BE A VERY SIMPLE DOUBLE LOADED
CORRIDOR WITH S¼. ONE BEDROOM
UNITS AND BELIEVE IT OR NOT.
THOSE ARE 400 SQUARE FOOT UNITS,
BUT THEY WORK. THEY'VE GOT A
BEDROOM, WHICH IS I MEAN,
THEY'VE GOT A BEDROOM AND
THEY'VE GOT A BATHROOM, WHICH
UH, COMPLIES WITH A Dð, A AND
THEY'VE GOT A LIVING AREA AND A
KITCHEN. SO IT'S VERY, VERY
EFFICIENT. THAT WAS ONE OF THE
PROBLEMS WE HAD WITH THE
MODULAR. THEY'RE TRYING TO DO IT
WITH SHIPPING CRATES AND
SHIPPING CRATES. AREN'T REALLY
DESIGNED TO BE HOUSING. THEY'RE
EXPENSIVE TO MODIFY AND SO JUST
BUILDING THIS STICK BUILT WAS
ACTUALLY MORE COST EFFECTIVE NOW
WHEN YOU GET INTO HIGHER DENSITY
IN THE FUTURE, UM MID RISE, HIGH
RISE. WE'VE BEEN STUDYING THIS
FOR TWO DECADES. WE THINK WE
FINALLY HAVE FOUND ONE THAT WILL
ACTUALLY SAVE MONEY, AND I'M
HAPPY TO COME BACK WHEN WE
CONFIRM THAT IT IS THERE'S A
PROJECT UNDER CONSTRUCTION IN L
A RIGHT NOW IT LOOKS LIKE IT'LL
SAVE ABOUT $100 A SQUARE FOOT,
WHICH IS THE FIRST ONE I'VE SEEN
. AND THEN WE MAY USE THAT HERE
AS WELL. UM GO AHEAD AND TO THE
NEXT, AND THAT'S THE TYPICAL
FLOOR. YOU CAN SEE. THERE'S A
BIG OPEN AREA ON THE LEFT HAND
SIDE IN THE UPPER LEFT HAND
CORNER, WHICH IS A GATHERING
AREA. UH BUT IT BASICALLY A LOW
COST AMENITY. UM, AND THERE'S
NICE VIEWS FROM HERE. NEXT. THIS
IS A TYPICAL UNIT. SO YOU SEE,
HE'S GOT ONE BEDROOM, GOT A
CLOSET, GOT A BATHROOM AND, UM,
THE KITCHEN. WE HAVE THE OPTION
TO PUT A WASHER DRYER. WE
ULTIMATELY DECIDED FOR ONGOING,
UM OPERATIONAL COSTS AS WELL AS
JUST GETTING PEOPLE TOGETHER. WE
DO A COLLECTIVE WASHER DRYER
AREA. ON SITE. GO TO THE NEXT
ONE. AND SO YOU KNOW, IT'S NOT A
BAD LOOKING PROJECT FOR A
PROJECT THAT THESE VETERANS WILL
GET AT A VERY REASONABLE PRICE.
THEY CAN USE WHAT THEY CALL VASH
VOUCHERS OR VETERAN
ADMINISTRATION VOUCHERS. UM, THE
ACTUAL. TOTAL FEE THEY WILL PAY
IS A LITTLE OVER $1600 AND
BASICALLY, THE VOUCHER WILL
CLOSE THE GAP ON ON WHAT THEY
CAN AFFORD. MOST OF THESE WILL
BE UNDER 30% OF AREA MEDIAN
INCOME. PROBABLY MEETING THEIR
IF THEY EARN ANYTHING, THEY'RE
EARNING IT PROBABLY UNDER
$25,000 A YEAR GO TO THE NEXT
ONE. SO IT JUST SHOWS SOME MORE
VIEWS. UM. WE PROVIDED THE
CONCEPTUAL DESIGN FOR THIS AS
PRO BONO. BUT UM, THERE'S AN
ARCHITECT THAT WE ULTIMATELY HAD
TO HIRE BECAUSE ONCE YOU GET
INTO THE FULL WORKING DRAWINGS,
THAT'S SOMETHING WE NEEDED TO
PAY FOR. UM AND, UH. THIS SHOWS
THE SCHEDULE. UM WE'RE ON
SCHEDULE RIGHT NOW. WE DID HAVE
THE GROUNDBREAKING. UH, WE HOPE
TO START FRAMING IN A FEW WEEKS.
WE'VE POURED FOUNDATIONS IN
SPITE OF THE NICE RAIN. WE'VE
HAD A LOT. A LOT OF OUR TIMES
HAVE SPENT CLEANING OUT. UH, THE
SITE. UM UH, GO TO THE NEXT ONE.
SO. THIS SHOWS THE FINANCIALS A
BREAKDOWN OF THE FINANCIALS. LET
ME JUST TURN TO IT MYSELF. AND
SO YOU'LL SEE THAT WE ESTIMATED
THE VALUE OF THE LAND AT ABOUT
$500,000 THERE WAS PREVIOUSLY.
AN OLD DUPLEX THAT WAS READY TO
BE TORN DOWN AND REPLACED WITH A
26 UNITS. UM THE CONSULTANTS,
ENGINEERS, BLUEPRINTS, WHICH YOU
CALL SOFT COSTS OR 312,000
PERMITS AND FEES. 375,000 NOW
THAT'S ANOTHER AREA WHERE SAN
DIEGO HELPED US BY GEARS. ON A
SQUARE FOOTAGE BASIS PER UNIT,
AS OPPOSED TO JUST A TYPICAL YOU
CAN IMAGINE. IF IT WAS 40,000 A
UNIT. WE'D BE UNDERWATER RIGHT
TO BEGIN WITH. UM THEN, UH,
GENERAL ADMINISTRATIVE OVERHEAD
OF A COUPLE 100,000 AND THEN THE
CONSTRUCTION PRICE OF 5,450,000,
WHICH TRANSLATES TO ABOUT 100
AND $82,000 PER UNIT. UM. AND
THEN A FINANCE. CONTINGENCY UM,
AND THAT CAME OUT TO A TOTAL OF
$278,000, INCLUDING THE COST OF
LAND. WHICH IS PRETTY REMARKABLE
. ACTUALLY I WAS JUST MAKING IN
WASHINGTON A WEEK AGO,
PRESENTING THIS AT THE NATIONAL
SOLUTION, REALTORS, AND WHEN I
MENTIONED THE COST PER UNIT,
THERE WAS A GASP. PEOPLE WERE
WERE AMAZED BECAUSE THEY KNOW
THAT IT COSTS A LOT OF MONEY TO
BUILD THESE. SO IT WAS A
COMPLETE COMMUNITIES. IT WAS YOU
CAN GO TO THE NEXT NEXT SLIDE.
IF YOU DON'T MIND. SORRY. UM
COMPLETE COMMUNITIES. THAT WAS
THE PROGRAM IN SAN DIEGO THAT
ALLOWED US TO INCREASE DENSITY
NÓ PARKING REQUIRED, UH, LOWER
IMPACT FEES BASED ON SQUARE
FOOTAGE, AND WE ALSO GOT
EXPEDITED PROCESSING, WHICH ALL
THOSE WERE HUGE HELPS. YOU'VE
HEARD THE THINGS THAT, UH DAVID
WAS TALKING ABOUT AND WE WERE
ABLE TO TAKE ADVANTAGE OF THESE
PROGRAMS IN THE FUTURE. THE FACT
THAT YOU NOW HAVE PASSED S¼ B
FOUR. WE STARTED BEFORE S¼ B.
FOUR HAPPENED, BUT NOW WE'RE
LOOKING, UM TO A LOT OF OTHER
LAND. THERE'S 4675. OF LAND THAT
MIGHT BE USED FOR THIS. AND UM
I'M PRESBYTERIAN SO I CAN PICK
ON US. WE'VE ALWAYS SAID WE
NEVER WE NEVER SAW A COMMITTEE.
WE DIDN'T LIKE ANYTHING THAT
MIGHT TAKE THREE MONTHS. IT
WOULD BE BETTER IF IT COULD TAKE
A YEAR AND A HALF. BUT THEY'RE
NOW LOOKING AT THIS REAL HARD,
UM AND AM E, WHICH IS BETHEL AM.
E IS THE CHURCH THAT WE
PARTNERED WITH THE NICE THING
ABOUT AM E IS THEY OWN THEIR
OWN? FACILITIES WHEREAS IN THE
PRESBYTERIAN CHURCH, THE
PRESBYTERIAN THE PRESBYTERY
EXCUSE ME GENERALLY OWNS THEM,
SO IT HAS A LOT MORE TO SAY. BUT
WITH YOUR, UM YOUR S¼ P FOUR.
THAT'S THAT'S GONNA HELP AND SO,
UH, APPRECIATE THAT. AND SO I'M
HERE FOR QUESTIONS AND ANSWERS
IF YOU HAVE ANY THANK YOU, MR
AUSTIN. SO YOU KNOW QUESTIONS,
MR LEE. I REALLY WANT TO THANK
YOU FOR THE PRESENTATION HERE
TODAY. UM I, UH YOU KNOW, WOULD
AGREE WITH THE ASSOCIATION THAT
YOU PRESENTED TO, YOU KNOW, IT'S
I EYE POPPING WHEN YOU ARE ABLE
TO SEE SOMETHING REDUCED TO A
COST OF $278,000 PER UNIT, AND I
GOT SOME OBSERVATIONS, BUT I
WANTED TO GO BACK TO SOME
RELIEF. OR MAYBE SOME OF HIS
THOUGHTS. YES THANK YOU. YES, I
DID HAVE A QUESTION YOU
MENTIONED YOU ARE WORKING ON A
PROJECT IN LOS ANGELES AS WELL.
YEAH THAT WE STUDYING. WE'RE
WE'RE ACTUALLY NOT THE
ARCHITECTS. WE CAME IN CON. I'VE
BEEN STUDYING, UM MANUFACTURED
HOUSING FOR A LONG TIME. UM I'VE
DONE SOME DEVELOPMENT. I'M
MAINLY AN ARCHITECT. I'VE BEEN A
PLANNING COMMISSIONER. I'VE BEEN
ON ON THE REBUILD MY AGENCY A
LOT OF HATS I'VE WORN IN THE
PAST. BUT ONE OF MY PASSIONS HAS
BEEN. HOW DO WE FIND A BETTER
WAY TO BUILD AFFORDABLE HOUSING?
I'M GONNA TAKE ONE DE TOUR FOR
JUST A SECOND. I HAD AN
INSTRUCTOR AT CAL POLY AT SAN
LOS OBES, WHO HAS A P HÌ Dð IN
PSYCHOLOGY, AND I ASKED HIM. I
SAID, WHY? WHY ARE YOU ON THE
FACULTY AT FOR ARCHITECTURE YOU
AT? UH PAY AND HE SAID, BECAUSE
I BELIEVE THERE IS NÓ OTHER
THING THAT ONE HUMAN BEING CAN
DO FOR ANOTHER. THAT'S MORE
IMPORTANT THAN PROVIDING GOOD
HOUSING. I THOUGHT, WOW, THAT'S
THAT'S PROFOUND. SO WE'VE BEEN
I'VE BEEN LOOKING AND LOOKING
AND LOOKING TO FIND WAYS. UH, TO
LOOK THROUGH EUROPE. EVERYTHING
ELSE RIGHT NOW. I ACTUALLY I
ACTUALLY HAVE TWO PATENTS I'VE
DEVELOPED NOW FOR BILLION HIGH
RISES CHEAPER. WE THINK WE CAN
SAVE $100 A SQUARE FOOT. BUT FOR
THE FIRST TIME, I'M SEEING THIS
PROJECT IN L A GOING UP. IT'S
UNDER CONSTRUCTION. NOW THEY'RE
GOING TO START TOURS OF THEIR
FACTORY. THEY'RE ACTUALLY
BUILDING THE UNITS RIGHT ACROSS
FROM THE HYUNDAI FACTORY IN
TIJUANA. UM AND THEN IT'S A IT'S
A MAQUILADORA. IT'S AN AMERICAN
COMPANY. AND UM RIGHT NOW, THEY
SAY THEY'RE ON BUDGET OR
SLIGHTLY UNDER BUDGET, WHICH
WOULD SAVE ABOUT $100, A SQUARE
FOOT ON A MID RISE PROJECT ABOUT
SIX SIX STORIES, AND THAT'S ONE
OF THE BIGGEST PROBLEMS IS
EVERYBODY. IN CALIFORNIA PRETTY
MUCH WHAT INFILL DEVELOPMENT.
AND IN PHIL COSTS MORE PER
SQUARE FOOT, AND IF YOU WANT
MORE FOR SALE HOUSING WOW. WE
GOTTA FIX THE LAWSUIT. PROBLEM
YOU KNOW, SO THAT'S ANOTHER
ANOTHER, UH, STORY, I. I ASKED
ONLY BECAUSE I WAS CURIOUS IF
THIS MODEL HAS BEEN SUCCESS
REPLICABLE, ESPECIALLY ON THE
FINANCIAL SIDE, AND ANY OTHER
SITES IN CALIFORNIA THAT YOU
KNOW OF BECAUSE YOU TO THE GASP
OF REALTORS OBVIOUSLY ARE
DELIVERING 200 ISH PER PER DOOR.
SO IS THAT SOMETHING YOU'VE SEEN
IN THIS MODEL STILL REPLICABLE
IN OTHER PARTS OF CALIFORNIA.
YET THIS MODEL IS YOU KNOW, I, I
IT HOW SCALABLE IT'S GOING TO BE
IS SOMETHING WE NEED TO SEE THE
YOU BE MODEL, BUT MODEL OF WHAT
THEIR BUILDING IN CALIFORNIA
THAT'S A MARKET RATE PROJECT
THAT COULD BE APPLIED TO EITHER
AFFORDABLE PROJECTS OR MARKET
RATE PROJECTS. WHICH AS YOU
MENTIONED, THEY MENTIONED WHAT
ARE THE VARIOUS FACTORS?
OBVIOUSLY THERE'S THINGS AT
STATE CAN DO THINGS THAT LOCAL
GOVERNMENT CAN DO. UH BUT I
THINK THERE'S THINGS WE SHOULD
DO AS DESIGNERS AND INNOVATORS.
HOW DO WE BRING THE COST DOWN?
SO THAT'S YOU KNOW, WE CAN SAVE
$100 A SQUARE FOOT. IT'S A BIG
DEAL. AND SINCE WE HAVE AN
ARCHITECT HERE, I AUTHORED A
BILL LAST YEAR TO LOOK AT SINGLE
STAIRCASE BUILDINGS. FOR MID
RISES. DO YOU THINK? BECAUSE
THIS IS A DOUBLE VOTE OF
CORRIDORS? THIS IS MULTIPLE
STAIRS. BUT DO YOU THINK THAT
WOULD BE MORE EFFECTIVE IN
BRINGING THE COST DOWN IF WE
HAVE MID RISES WITH SINGLE STARE
CASES? AS YOU KNOW, WE SEE IN
ASIA, YOU KNOW, IT'S
INTERESTING. UM BECAUSE YOU KNOW
, ONE OF THE THINGS WE SIGN UP
FOR IS THE PUBLIC SAFETY RIGHT?
AND THAT'S ONE OF OUR PRIMARY
GOALS. SO I'D SAY IT DEPENDS.
BECAUSE I ACTUALLY BELIEVE MORE
IN, UM SCISSOR STAIRS, WHICH YOU
CAN GO. YOU CAN GO 70 STORIES
WITH THEM. WE HAVE OFFICES IN
DOWNTOWN VANCOUVER AND THERE AND
I BELIEVE IN IN, UH, NEW YORK.
YOU CAN DO A SCISSOR STEER WHAT
THAT IS THE FOOTPRINT FOR THE
TWO EXITS IS IN THE SAME EXACT
FOOTPRINT, BUT BECAUSE THE CORE
IS BUILT OUT OF CONCRETE FOR
STRUCTURAL REASONS, BUT ALSO
FIREPROOFING REASONS. UM YOU.
YOU HAVE TWO EXITS. AND AS FAR
AS I KNOW, THERE'S NEVER BEEN A
SAFETY ISSUE OR FAILURE. BUT IN
CALIFORNIA, WE HAVE TO SEPARATE
THE STAIRS BY AT LEAST 30 FT.
PHYSICALLY AS WELL AS THE ONE
THIRD OF THE DIAGONAL AND IF YOU
IF YOU LOOK AT CALIFORNIA
BUILDINGS COMPARED TO VANCOUVER
BUILDINGS THEY'RE BULKY RIGHT?
AND THAT'S ONE OF THE MAIN
REASONS AND IT COSTS MORE TO DO
IT THAT WAY. IN VANCOUVER, YOU
LOOK LOOK AT THE LIGHT AND AIR
THAT'S HITTING THE STREET THERE.
I. I DON'T KNOW HOW MANY. YOU'VE
BEEN TO VANCOUVER, BUT I
ENCOURAGE YOU TO GO BECAUSE THE
PUBLIC REALM IS REALLY WELL
DONE. THAT'S A GOOD MODEL.
FANTASTIC. THANK YOU. SURE.
THANK YOU. POSSIBLY A, UH, AN
UPDATE TO THE BILL FROM LAST
YEAR. UM NÓ I. I REALLY, YOU
KNOW, WANNA, UH ACKNOWLEDGE HOW
IMPRESSED I AM WITH THE TIMELINE
AND SOME OF THAT BECAUSE OF THE
STREAMLINING UNDER COMPLETE
COMMUNITIES, BUT EVEN WITH THAT,
UNDER CONSIDERATION, YOU KNOW
CONSTRUCTION TO OPENING IN 10 TO
11 MONTHS IS PHENOMENAL. SO
CONGRATULATIONS TO THE WHOLE
DEVELOPMENT TEAM. UH, FOR DOING
THIS, AND DO YOU SEE, I THINK,
UH, TEARING OFF OF MR LEE'S
COMMENTS. UM YOU KNOW WHEN WE
TALKED ABOUT S¼ B FOUR, THE
ANALYSIS, YOU KNOW, ESTIMATED
THIS WOULD POSSIBLY OPEN UP 100
AND 70,000 ACRES. WIDE OF NEW
OPPORTUNITIES SITES THAT WILL BE
SUBJECT TO THIS STREAMLINING.
THAT'S A LOT OF LAND. AND OF
COURSE, THAT'S NOT ALL GONNA
HAPPEN IN THE YOU KNOW VERY NEAR
TERM, BUT A LOT OF IT MIGHT SO.
DO YOU SEE THIS KIND OF A
PROJECT ATTRACTING, YOU KNOW
MORE INTEREST THAT MIGHT ALLOW
YOU TO MASS PRODUCE, OR WE'VE
ALSO I THINK IN THE PAST LOOKED
AT, I THINK LOCALLY, SOME OR
SOME LOCAL GOVERNMENTS HAVE
LOOKED AT, UM, CREATING, UH,
SORT OF SORT OF PRE, UH APPROVED
MODELS THAT YOU COULD KIND OF
PLUG AND PLAY. AND SO IS THERE
SOME SYNERGY HERE? I THINK THERE
ARE GOOD IDEAS. UM THE OTHER
THING IS, UM THE MODEL WE TOOK
IS GOOD FOR SMALLER PROJECTS.
BIGGER PROJECTS, I. I DON'T
THINK YOU SHOULD HAVE. WE SHOULD
ABANDON TAX CREDIT FUNDING. ONE
OF THE THINGS THAT WAS MENTIONED
IS LAND IS SCARCE, RIGHT? AND IF
YOU IF YOU NEED TO DO INFILL
DEVELOPMENT, SO I THINK S¼ B
FOUR IS GOING TO BE IMPORTANT.
SOME OF THE LARGER SCALE
PROJECTS MIGHT BE TRADITIONAL
TAX CREDIT FUNDING, BUT YOU NOW
HAVE LAND THAT'S CONTRIBUTED AT
A BASIS, WHICH IS ATTRACTIVE
PLUS THE FACT THAT IT'S EVEN
THERE. UH, UH, TO BE DEVELOPED.
SO AND THE LAND THAT YOU'RE
PUTTING INTO IT, IT'S THERE
ESSENTIALLY ON PAPER. ONLY THE
EQUITY IS THERE TO SORT OF, I
THINK KIND OF KIND OF IT'S
ACCOUNTED FOR THERE, BUT YOU
DON'T ACTUALLY PAY FOR THAT,
RIGHT? WE DON'T PAY FOR IT UP
FRONT NÓ AND SO IT'S WELL, BUT
GENERALLY LIKE IF YOU'RE GONNA
LOOK AT THE TRADITIONAL CAPITAL
STACK. IT'S PART OF THE COST AND
YOU GOT YOU GOT TO ACCOUNT FOR
IT RIGHT. SO THE FACT THAT THAT
CAN BE PART OF THE EQUITY SO
SOMETHING YOU DON'T HAVE TO PAY.
FOR NOW IT'S ALMOST LIKE A LONG
TERM LAND LEASE IN THE SENSE
THAT THE CHURCH. IS WILLING TO
BE PATIENT. THEY REALLY DON'T
HAVE INCOME ON IT NOW, ANYWHERE,
VERY LITTLE INCOME, SO IT'S
SOMETHING THAT'S A WIN FOR THEM,
AND YOU WOULD NOT, YOU NOTED,
TOO, BECAUSE OF YOUR, UH I THINK
REDUCED CAPITALS IP. WE'RE
REALLY LOOKING ALMOST
EXCLUSIVELY AT PRIVATE FINANCING
. THERE'S ONE THING THAT UM,
FEELS ON ITS FACE IN CONFLICT
WITH WHAT THE TURNER CENTER HAD
PRESENTED THAT THIS RELIANCE
MORE AND MORE ON PRIVATE
FINANCING IS CAUSING HIGHER
EXPECTATIONS. HIGHER RATES OF
RETURN, BUT IS THIS UM DID YOU
FIND PRIVATE FINANCING? WAS
LOWER THAN WHAT IS TOTALLY
DIFFERENT. BECAUSE YOU'VE GOT
PEOPLE WITH A HEART. UM THIS IS
MISSION BASED FINANCING, RIGHT?
UM YOU DON'T FIND MANY ANDY
BALLISTER EVERY DAY. WHAT A WHAT
A JAM. THAT GUY IS AND YOU KNOW
HE'S WILLING TO PERSONALLY SIGN
ON THE LINE. GIVE A LINE OF
CREDIT. AND THEN HE'S WILLING
TO, UM PASS ON THAT TO US. AT A
VERY REASONABLE RATE, WHEREAS
YOU'RE RIGHT IF, IF IT'S A
TYPICAL MONEY MANAGER, JUST
LOOKING TO MAXIMIZE THEIR
RETURNS THEY'RE LOOKING AT
HOUSING IS ONE OF THEIR MANY
AVENUES AND IF IT DOESN'T MEET A
CERTAIN THRESHOLD, THEN THEY'RE
OUT OF THE MARKET. AND THE MORE
YOU NEED OF THAT. THE MORE
EXPENSIVE THAT PROJECT IS, IF WE
, YOU KNOW, SOMEBODY SAID, LET'S
LET'S FIND MORE, UH MORE MONEY
FROM THE BANKS BECAUSE THAT'S
THE CHEAPEST MONEY. ONE OF THE
PROBLEMS WITH, UH, TRADITIONAL
FINANCING FOR CHURCHES. HAVING
MENTIONED THAT WAS I WAS A
PRESBYTERIAN AND BEEN AN ELDER.
IS MOST BANKS DO NOT REALLY WANT
TO LEND TO CHURCHES, AND THE
REASON IS FOR PUBLIC RELATIONS.
THEY DON'T WANNA HAVE TO
FORECLOSE ON A CHURCH. IT JUST
DOESN'T DOESN'T DO MUCH FOR
THEIR PUBLIC RELATIONS. UM SO
THERE ARE CERTAIN ENTITIES OUT
THERE THAT DO IT. BECAUSE HER
MISSION DRIVEN RIGHT AND IN THIS
CASE, UM HOPEFULLY, THIS IS THE
FIRST OF MANY. IT TOOK US A
WHILE TO FIGURE THIS ONE OUT,
AND WE'RE GLAD IT'S UNDER
CONSTRUCTION, BUT YOU HAD
SECTIONED OFF THIS LAND RIGHT
FROM THE PRIMARY FROM THE FROM
THE FROM THE TOTAL PARCEL. UH,
NÓ NÓ. THIS IS A PIECE OF LAND
THAT'S OWNED FREE AND CLEAR OR
WELL, YEAH, IT'S OWNED BY THE
CHURCH. IT'S A IN THE NICE THING
ABOUT IT. IT'S A IT'S BASICALLY
100 50 BY 100. THE LAND IS STILL
OWNED BY BUT TO YOUR POINT
ABOUT, YOU KNOW, NOBODY WANTS TO
FORECLOSE ON A CHURCH JUST FOR
YOU KNOW PURPOSES OF EQUITY IF
THE PROJECT FAILS. NÓ ONE'S
GONNA COME BACK AND GO AFTER THE
CHURCH PROPERTY. WELL JUST THAT
PIECE OF LAND IT COULD BE. IT
COULD BE DIVIDED OFF. YEAH
THAT'S RIGHT. YOU CAN BE
SECTIONED OFF. UM, THE, UH
CERTAINLY, YEAH, LIKE A LOT OF
LESSONS, UH, TO BE ABLE TO LEARN
FROM HERE, THE COMPLETE
COMMUNITY MODEL. UM YOUR THREE
STORY EXAMPLE HERE. COULD YOU
HAVE GONE HIRED? DID THEY NOT?
BUT THEY DIDN'T WANT TO GO
THERE, YOU KNOW, ON A 50 BY 100.
SQUARE FOOT THAT, UH, THAT WOULD
HAVE KIND OF PUSHED THE ENVELOPE
A LITTLE TOO FAR. PLUS WE HAD TO
LOOK AT WHAT FINANCING DID WE
HAVE AVAILABLE? I THINK SOMEBODY
SAID, HOW DO YOU JUST BECAUSE
YOU ZONE IT THAT WAY. IT DOESN'T
NECESSARILY MEAN IT GETS BUILT.
UM AND SO WE HAD TO FIND THAT
SWEET SPOT. BECAUSE THE 26 UNITS
DID DRIVE OUR COST PER UNIT DOWN
, BUT THERE IS A POINT WHERE WE
WOULD HAVE NEEDED MORE EQUITY OR
MORE LOAN OR WHAT HAVE YOU AND
WE SAID, OK, THIS IS WE'RE WE'RE
KIND OF PUSHING THE ENVELOPE AS
FAR AS WE WANT TO PUSH IT ON
THIS ONE. IT'S STILL REMARKED
THAT, YOU KNOW, KIND OF TYING
ALL THESE, UH, CONVERSATIONS
HERE TOGETHER TODAY. YOU KNOW A
PROJECT LIKE THIS. UM WELL,
MAYBE IT COULD HAVE DEVELOPED A
LITTLE BIT MORE PROBABLY WOULD
HAVE RAISED ADDITIONAL EXPENSES
OR ADDITIONAL COST PER UNIT. SO
YOU SORT OF HIT THAT SWEET SPOT,
BUT ALSO FROM A FORM BASED
PERSPECTIVE, RIGHT IS PROBABLY
VERY, UM, YOU KNOW, NOT
OBJECTIONABLE FOR A LOT OF
COMMUNITIES AND A LOT OF THE
LANDSCAPES THAT WE SEE ACROSS
FOR NOT A VERY HIGHLY URBANIZED
ENVIRONMENT LIKE A DOWNTOWN OF A
MAJOR CITY. UM BUT YOU KNOW
SOMETHING THAT YES, IT'S A 26
UNITS. UM, WHICH IS GREAT BETTER
THAN THE DUPLEX THAT WAS THERE
BEFORE. UM BUT IT'S NOT THIS,
YOU KNOW, 120 UNIT. UM UH, YOU
KNOW, UH UH, MID MID RISE, I
GUESS YOU KNOW OPPORTUNITY THAT
THAT'S APPROPRIATE FOR SOME
AREAS, BUT BUT CERTAINLY WE'RE
LOOKING ACROSS A LOT OF
LANDSCAPES, A LOT OF COMMUNITY
TYPOLOGIES IN CALIFORNIA WHERE
THIS WOULD FIT IN, YOU KNOW,
PRETTY PRETTY SYNERGISTICALLY
WITH THE EXISTING THAT THIS IS A
GOOD MODEL, AND WE HOPE TO
ACTUALLY USE IT ON ANOTHER 50 BY
100 FT LOT. IN FACT, UH, THIS IS
WE CALL BETHEL ONE, AND WE
BELIEVE THERE'S GOING TO BE A
BETHEL TWO COMING. UH BECAUSE
THEY HAVE ANOTHER LOT ABOUT THIS
SIZE, SO BUT BUT YOU KNOW, THERE
ARE 50 BY 100 FT. LOTS ALL OVER
SAN DIEGO. AND I'M SURE
THROUGHOUT CALIFORNIA WHICH IS
GREAT. BUT YOU YOU BRING UP A
REALLY GOOD POINT, I. I JUST, UM
LISTEN TO, UH, THREE HOUR
PROGRAM, AND IF YOU'D LIKE, I'LL
TRY TO FIND IT FOR YOU BECAUSE
I'D ENCOURAGE EVERYBODY WHO'S
INTERESTED IN HOUSING TO LOOK AT
IT. UM AND IT WAS AN ACADEMIC.
UM UH, PRESENTATION. THEY USE A
LOT OF, UH, THE I GUESS THE. THE
HOUSING FROM THE SEATTLE AREA AS
A MODEL, BUT THEY BRING THE SAME
POINT UP, BUT IT MAKES A POINT
THAT THERE'S IN MOST PLACES
ABOUT 75% OF LAND IS OWNED
SINGLE FAMILY. AND MOST OF THOSE
PEOPLE ARE GONNA BE NIES. THEY
DON'T WANT TO HAVE SOMETHING.
COMING IN, WHERE HE SOMEBODY'S
BULLYING A MID RISE RIGHT NEXT
TO THEIR SINGLE FAMILY UNIT, BUT
IT TALKED ABOUT ALTERNATIVES
SUCH AS DUPLEXES TRIPLEXES SIX
PEX, UH, IN THIS CASE BECAUSE OF
WHERE IT IS, ACTUALLY, THE 26
UNIT PROJECT FEELS FEELS ABOUT.
RIGHT UM, SO, UH, I'LL TRY TO
SEE IF I CAN FIND IT FOR YOU
BECAUSE IT IT I THINK IT WAS
TITLED, UM UH, SINGLE SINGLE
FAMILY ZONING AND SEGREGATION,
AND IT WAS EYE OPENING. THANK
YOU. THANK YOU, FOR THAT WOULD
LOVE TO BE ABLE TO SHARE THAT
WITH MY COLLEAGUES AND REALLY
APPRECIATE YOUR TIME AND YOUR
TRAVEL TODAY TO BE HERE TO SHARE
THIS EXAMPLE. HOPEFULLY IT
INSPIRES A LOT MORE THAT WE CAN
DO. IT CERTAINLY HAS FOR ME. UM
AND WE'VE HAD A LOT OF GROUND
COVERED AT THE INFO HEARING
TODAY. I HOPE IT'S UM AGAIN
GROUND SETTING FOR THE WORK THAT
WE NEED TO DO HERE AS A
COMMITTEE AND AS A AS AN
ASSEMBLY AND WITH THAT WE ARE
GOING TO CONCLUDE THIS MORNING'S
INFORMATIONAL HEARING. I WANT TO
THANK ALL OF OUR PARTICIPANTS
AND, UM PEOPLE THAT HAVE BEEN
OBSERVING TODAY. I THINK OUR
NEXT, UH, HEARING IS
TENTATIVELY. SCHEDULED FOR
MONDAY, MARCH 11TH AS A JOINT
HEARING WITH. OUR NEXT HEARING
WILL BE TO BE DETERMINED. I
GUESS AT THIS POINT, I THINK
IT'S A WORK IN PROGRESS. BUT I
KNOW THAT WE WANNA BE ABLE TO
LOOK, UH, A LITTLE BIT DEEPER. A
LOT OF OUR, UM STATE HOUSING
PROGRAMS AND WHAT'S WORKING AND
WHAT'S NOT, UH, AND THE COST
BEHIND THOSE THANK YOU. OH, I. I
AM AWARE THAT WE ARE HAVING
PUBLIC COMMENT ON THE AGENDA.
ARE THERE ANY MEMBERS OF THE
PUBLIC WISHING TO SPEAK, PLEASE
APPROACH? UH, IDENTIFY YOURSELF
AND YOU'LL HAVE UP TO TWO
MINUTES. THANK YOU, UM KAREN
STOUT HERE ON BEHALF OF HABITAT
FOR HUMANITY. CALIFORNIA AND I
WANTED TO REALLY APPRECIATE. UM
THE MENTION OF HOME OWNERSHIP IN
THIS HEARING. I THINK IT'S
ABSOLUTELY CRITICAL THAT WE
CONTINUE TO FOCUS ON CREATING
AFFORDABLE HOME OWNERSHIP
OPPORTUNITIES FOR PEOPLE IN THE
STATE, WHICH WILL HELP THEM NOT
ONLY FOR YEARS, BUT FOR DECADES
AND FOR SOME GENERATIONS. UM
RIGHT NOW WE ARE CURRENTLY
SEEING THE STATE AND THE
HOMEOWNERSHIP CRISIS. I MEAN,
THE REALTORS ASSOCIATION HAS
ESTIMATED THAT HOUSING
AFFORDABILITY IS STILL DISMALLY
LOW WITH ONLY 17% OF HERE IN
CALIFORNIA, BEING ABLE TO AFFORD
A MEDIAN PRICE HOME. AS THESE
CAPS CONTINUE TO SKYROCKET. THIS
DISPROPORTIONATELY AFFECTS, UM,
OUR FIRST GENERATION HOME BUYERS
AND PEOPLE WHO HAVE COMMUTED AND
COMMUNITIES THAT HAVE BEEN
TRADITIONALLY EXCLUDED FROM THE
REAL ESTATE MARKET. UM THIS WILL
ONLY CONTINUE TO GET WORSE
BECAUSE THERE'S ONLY ONE STATE
PROGRAM THAT JUSTICES SUPPLY
SIDE OF HOME OWNERSHIP
PRODUCTION. AND THAT IS CAL
HOME. UH, WE ARE CURRENTLY
LOOKING AT A COMPLETE REVERSION
OF 150.25 MILLION, UM, WHICH IS,
UM, GOING TO BE RE REVERTED IN
THE JANUARY BUDGET. UH, WE ALSO
REALLY WANTED TO THANK UH, THE
ASSEMBLY MEMBER LEE, UM, FOR AND
AS WELL AS OUR PANELISTS FOR
RAISING CONCERNS ABOUT THE
PROHIBITIVE COSTS ASSOCIATED
WITH THE CONSTRUCTION DEFECT
LIABILITY LAW, UM HABITAT.
CALIFORNIA HAS SPONSORED
LEGISLATION IN THE PAST ON THIS
ISSUE, AND THE DATA DOES PROVE
THAT DEVELOPERS CHOOSE A RENTAL
PRODUCT OVER A FOR SALE HOMES,
AS WAS ALSO PREVIOUSLY MENTIONED
BECAUSE OF THIS LAW. UM, IN
ADDITION TO OUR REQUEST FOR THE
LEGISLATURE TO RESTORE OUR
FUNDING FOR CALHOUN, UM, WE ALSO
WOULD URGE THE COMMITTEE AND THE
LEGISLATURE TO START AND
CONTINUE FOCUSING ON POLICIES
AND PROGRAMS THAT WILL PROVIDE
FOR SALE UNITS HERE IN THE STATE
, ESPECIALLY FOR LOW INCOME AND
MINORITY COMMUNITIES IN ORDER TO
CREATE AN ACCESS GENERATIONAL
WEALTH. THANK YOU VERY MUCH FOR
YOUR TIME. THANK YOU. MR CHAIR
AND MEMBERS RAND MARTIN HERE ON
BEHALF OF THE AGE HEALTH CARE
FOUNDATION AND ITS HEALTHY
HOUSING FOUNDATION. UM A HÌ F
CURRENTLY HAS 13 PROJECTS OPEN
THE CITY OF LOS ANGELES, UM,
WITH THREE MORE IN THE WORKS FOR
A TOTAL, ULTIMATELY, IN THE NEXT
COUPLE OF YEARS OF ALMOST 2000
UNITS OF, UH, AFFORDABLE
HOUSING, UM, IN THE CITY OF LOS
ANGELES. I'M HERE TODAY TO
REEMPHASIZE MESSAGE WE'VE BEEN
DELIVERING FOR THE LAST FOUR OR
FIVE YEARS. AND THAT IS THAT
WITH THE COST ASSOCIATED WITH
GROUND UP CONSTRUCTION OF
AFFORDABLE HOUSING. WE CAN NEVER
BUILD OURSELVES OUT OF THE
HOUSING CRISIS THAT WE HAVE
TODAY. WE NEED TO EMBRACE AS
ENTHUSIASTICALLY AS WE CAN. THE
USE OF ADAPTIVE REUSE IN TERMS
OF DEVELOPING AFFORDABLE HOUSING
ACROSS ACROSS THE STATE. I THINK
A HÌ F IS A IS A PRIME EXAMPLE
OF HOW SUCCESSFUL THAT CAN BE.
UM WE HAVE, UH, ATTEMPTED TO, UM
TO MODERATE EXISTING STATE LAW,
UM THROUGH BOTH THE BUDGET AND
THROUGH LEGISLATION THAT MR
SANTIAGO CARRIED. AND LAST
YEAR'S, UM, LEGISLATION THAT MR
LEE, UM PARTNER WITH US ON IN
TERMS OF STREAMLINING THINGS AT
THE LOCAL LEVEL SO THAT WE CAN
MAKE ADAPTIVE USE A MORE VIABLE,
UM, PROCESS. UM, THERE'S MORE
THAT NEEDS TO BE DONE. UM, AND
SOME OF IT IS MUCH LIKE WE'VE
BEEN HEARING TODAY ASSOCIATED
WITH LOCAL GOVERNMENTS, UM,
EFFORTS TO MOVE THINGS ALONG,
BUT IT'S NOT JUST GETTING
PROJECT OFF THE GROUND. IT'S
ALSO MAKING SURE THE PRO PROJECT
IS OPERATIONAL. BEYOND THAT, UM,
WE HAVE RUN INTO PROBLEMS, UM,
IN IN THE CITY OF LOS ANGELES
AND PARTICULAR BUT CERTAINLY IN
OTHER CITIES AS WELL. WHERE WHAT
WE PASS HERE IN IN THE STATE
HOUSE, UM, DOES NOT GET
IMPLEMENTED AS EFFECTIVELY AS WE
NEED IT TO, UM, IN IN, UH, IN
THE LOCAL LEVEL. UM SOME OF THE
THINGS THAT ARE STREAMLINED END
UP TAKING TWO OR THREE YEARS.
THAT'S NOT STREAMLINING. YOU
HAVE OTHER PROBLEMS THAT CROP UP
AFTERWARDS. WE HAVE BEEN SUBJECT
TO A LONG STANDING PROBLEM AT
OUR MADISON HOTEL, UM, OPERATION
WITH THE CITY OF LOS ANGELES
RELATIVE TO AN ELEVATOR THAT HAS
GOTTEN REPEATED. UM, UH,
ATTENTION. IN UH, IN THE L A
TIMES AND OTHERS AND SO WE NEED
TO MAKE SURE THAT WE TAKE CARE
OF THOSE ISSUES AFTER THE
PROJECT OPENS. SO UM WE HOPE WE
CAN CONTINUE TO WORK ON THIS
WITH YOU. THANK YOU. THANK YOU.
GOOD MORNING, MR CHAIR AND
MEMBERS MY QUEST ON BEHALF OF
THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL OF
CALIFORNIA, REPRESENTING NEARLY
HALF A MILLION WORKING MEN AND
WOMEN IN THE CONSTRUCTION
INDUSTRY, INCLUDING OVER 65,000
IN OUR ENROLLED IN OUR STATE OF
THE ART APPRENTICESHIP PROGRAM
AROUND THE STATE. THE BUILDING
TRADES AGREES THAT WE DO NEED TO
BUILD MORE AFFORDABLE HOUSING
AND THAT ALL CALIFORNIANS,
INCLUDING THE MEN AND WOMEN OF
THE BUILDING TRADES, UM SHOULD
BE ABLE TO, UM LIVE AND THRIVE
IN THOSE IN THOSE UNITS. UM
DEVELOPERS OFTEN SELF PROCLAIM
TO BE AFFORDABLE HOUSING
DEVELOPERS WHEN A FRACTION AS
LITTLE AS 5% IN SOME CASES ARE
AFFORDABLE, AND THEN THEY ARE
ESSENTIALLY 95% MARKET RATE
HOUSING DEVELOPERS, ACCORDING A
RECENT UC BERKELEY LABOR STUDY
ON THE RESIDENTIAL HOUSING
MARKET. ALMOST HALF A CALIFORNIA
CONSTRUCTION WORKERS ARE
ENROLLED IN A SAFETY NET PROGRAM
COSTING $3 BILLION PER YEAR TO
THE STATE. 19% OF CONSTRUCTION
WORKERS ARE MISCLASSIFIED AS
INDEPENDENT CONTRACTORS EARNING
67 CENTS ON EVERY DOLLAR EARNED
BY WORKERS WITH EMPLOYEE STATUS.
CONSTRUCTION WORKERS PAID UNDER
THE TABLE EARN 52 CENTS FOR
EVERY DOLLAR EARNED. THESE
WORKERS EARN A MEDIAN WAGE OF
$14.98. AN HOUR, A
DISPROPORTIONATE SHARE OF
WORKERS IN RESIDENTIAL
CONSTRUCTION ARE ALSO
UNDOCUMENTED IMMIGRANTS 13%
NATIONALLY IN 2014, WHO MAY FEAR
REPRISAL FOR SPEAKING UP FOR
THEIR RIGHTS, THE WAGE GAP
BETWEEN HOME BUILDING AND
NON-RESIDENTIAL CONSTRUCTION
SECTOR EXCEEDS 40. MAKE NÓ
MISTAKE. THIS IS A LOW WAGE
INDUSTRY. ANY LEGISLATION FROM
SACRAMENTO NEEDS TO TAKE INTO
ACCOUNT THE WORKERS WHO WILL
ACTUALLY DO THE CONSTRUCTION ARE
NOT FORGOTTEN. WE SHOULDN'T
BUILD OUR WAY OUT OF THE HOUSING
PROBLEM ON THE BACKS OF LOW WAGE
WORKERS WHO HAVE NÓ VOICE ON THE
JOB. WE'VE HEARD THE TERM PENCIL
OUT AT LEAST A DOZEN TIMES IN
THIS HEARING, BUT WE OFTEN HEAR
THAT PAYING PREVAILING WAGE AND
PROVIDING COMMON SENSE. LABOR
STANDARDS DOES NOT PENCIL OUT.
THESE COMMENTS COME AFTER FOR
PROFIT DEVELOPERS TAKE WHAT IS
NORMAL AND CUSTOMARY FOR IN THE
FORM OF PROFIT. WHY NOT SHARPEN
THE PENCIL AT THE BEGINNING OF
THE PROCESS SO THAT WE CAN
ENSURE THAT THE WOMEN AND MEN
BUILDING HOUSING HAVE A CHANCE
OF THE AMERICAN DREAM OF
AFFORDABLE HOUSING AND
HOMEOWNERSHIP? THANK YOU. THANK
YOU. GOOD MORNING CHAIR WARD AND
MEMBERS OF THE ASSEMBLY HOUSING
COMMITTEE, CORNELIUS BURKE WITH
THE CALIFORNIA BUILDING INDUSTRY
ASSOCIATION. WE ARE CALIFORNIA'S
HOME BUILDERS ABOUT 90% OF THE
HOUSING ARE BUILT BY MEMBERS OF
èC PI A. WE PUT IT ALL WE BUILD
MARKET RATE AFFORDABLE. WE BUILD
CONDOS. WE BUILD A Dð U S¼. WE
BUILD MASTER PLAN COMMUNITIES,
UH, WE BUILD IT ALL. I JUST
WANNA THANK YOU FROM THE BOTTOM
OF OUR HEARTS AND MY HEART FOR
THIS HEARING TODAY WAS A GREAT
HEARING TO REALLY DEEP DIVE ON
OUR HOUSING CRISIS AND SOLUTIONS
AND CHALLENGES THAT WE FACE TO
REALLY PRODUCE MORE HOUSING,
WHICH IS THE SOLUTION TO THE
HOUSING CRISIS. IT WAS REALLY
GREAT TO DEFINITELY HEAR FROM
THE TURNER CENTER, THE MASS
BEHIND DEVELOPMENT, IT HAS TO
PENCIL OUT A LOT OF TIMES A LOT
OF COSTS, FEES AND BURDENS THAT
WILL MAKE PROJECTS PENCIL OUT,
AND THAT'S WHY WE CANNOT BUILD
NUMBER TWO. THE SECOND PANEL,
IT'S GREAT TO HAVE TWO ROCKSTAR
PLANNING DIRECTORS, ONE FROM THE
CITY OF SACRAMENTO, OF COURSE,
ONE FROM SAN DIEGO. AND I WAS A
PLANNING COMMISSIONER IN THE
CITY OF SACRAMENTO FOR CLOSE TO
A DECADE AND THEY TALKED ABOUT
SOME OF THE CHALLENGES THEY HAVE
LOCALLY AND PARTICULARLY THE
NIMBYISM THAT WE HAVE AND THAT
THE USE OF S¼ QL TO STOP PRO
PROJECTS AND OBVIOUSLY, THE FEES
AND JUST LASTLY, IT WAS GREAT TO
HEAR FROM MR DOUG AUSTIN, WHO'S
A PROUD MEMBER OF THE BUILDING
INDUSTRY ASSOCIATION OF SAN
DIEGO, AND HIS AND HIS BI A
MEMBERS LIKE LIKE, UH, LIKE DOUG
AND OTHERS WHO REALLY WORK HARD
EVERY DAY TO BUILD A HOUSING
THAT WE NEED IN OUR STATE. SO
èC B I IS LOOKING FORWARD TO
CAN YOU CONTINUE CONVERSATIONS
AND WORKING WITH THIS COMMITTEE?
TO REALLY POLICIES TO MAKE SURE
WE PRODUCE THE HOUSING THAT WE
NEED FOR EVERYONE IN THIS GREAT
STATE OF CALIFORNIA. THANK YOU
SO MUCH. THANK YOU. GOOD MORNING
, UM LAUREN DE VALENCIA,
REPRESENTING THE AMERICAN
PLANNING ASSOCIATION, CALIFORNIA
CHAPTER. UM OUR MEMBERS ARE THE
ONES WHO ARE ON THE GROUND,
IMPLEMENTING ALL THE VARIOUS
LAWS THAT ARE PASSED IN YEAR
AFTER YEAR, AND IT WAS A AS MY
COLLEAGUE HAD SAID. IT'S REALLY
GREAT TO HEAR FROM TWO STELLAR,
UH, PLANNING DIRECTORS AND WE
REALLY LOOK FORWARD TO WORKING
WITH THE LEGISLATURE TO CONTINUE
TO BE A PARTNER TO ENSURE THAT
IMPLEMENTATION AT THE LOCAL
LEVEL IS ACHIEVABLE. UM, WE ARE
HEARING FROM OUR MEMBERS THAT
THERE'S A LOT OF ISSUES AROUND
CAPACITY AND RESOURCES TO
IMPLEMENT THE VARIOUS LAWS THAT
ARE PASS. WE KNOW THE STATE IS
FACING, YOU KNOW, VERY
CHALLENGING TIMES WITH THE
BUDGET DEFICIT AS WELL. AND SO
WE'RE LOOKING FOR, UM SOME,
MAYBE MINOR THINGS THAT COULD BE
HELPFUL AT THE LOCAL LEVEL, SUCH
AS S¼ EXEMPTIONS FOR ADOPTING
THE ORDINANCES TO PASS THE
VARIOUS LAWS, UH, TO IMPLEMENT
THE VARIOUS LAWS THAT ARE
PASSING, UM, PERHAPS A LITTLE
BIT OF DELAYED IMPLEMENTATION TO
MAKE SURE THAT THERE IS PROPER
IMPLEMENTATION TIME TO GET THOSE
ORDINANCES IN PLACE AND DO THE
GOOD PLANNING WORK THAT WE KNOW
THAT EVERYBODY WANTS TO DO TO
REACH THE SAME ULTIMATE GOAL OF
ACHIEVING, UH ADDRESSING THE
HOUSING CRISIS THAT OUR STATE
CONTINUES TO FACE. SO WE LOOK
FORWARD TO WORKING WITH YOUR
COMMITTEE AND WITH THE
LEGISLATURE AND WE REALLY, UH
THANK YOU FOR A GREAT HEARING.
THANKS. THANK YOU. THANK YOU.
EVERYBODY FOR YOUR PARTICIPATION
TODAY. UH, WITH THAT THIS
HEARING IS ADJOURNED. AND WE
WILL BE IN, UH, IN TOUCH, I
GUESS, WITH THE, UH, SCHEDULING
OF THE NEXT HEARING AS WELL.