City of Tustin

The City of Tustin continues to march towards adoption of Inclusionary Zoning despite input from a wide variety of sources. As previously reported, Building Industry Association, Orange County Chapter (BIA/OC) joined the Orange County Business Council, the Orange County Association of REALTORS® , The Pacific West Association of REALTORS® , the Orange County Taxpayers Association, the California Apartment Association, and residents of Tustin in opposition to Inclusionary Zoning at its last hearing.

 

Since that time, BIA/OC had the opportunity to meet with Council and Staff to offer specific concerns and outline solutions that could alleviate industry concerns. As this was the first opportunity BIA was given to speak directly with staff on the matter, we were hopeful reforms would be instituted that would lessen the adverse impact this regressive tax policy.

 

Regrettably, after offing five tangible mitigations, staff and Council have agreed to only one amendment. On June 5th, Council will vote to remove onerous language that allowed fees to be added to the tax. The remainder of the policy remains in place and homebuilders can expect to start paying up to $12,000 per door after June 19th.

 

If you are considering a project in Tustin, work in Tustin, live in Tustin or are interested in learning more, please contact Adam Wood at awood@biaoc.com.   

City of Anaheim

Anaheim remains a City in need of close monitoring as many significant proposals impacting hosing are expecting in the coming weeks. As previously reported, Anaheim is well underway on a fee restructuring that will likely result in lower construction costs in the Platinum Triangle but will add new fees and costs to construction in all other sectors of the City.

 

BIA/OC also participated in a Public Art Roundtable where discussion occurred around requirements for Public Art within the City. Several alternatives were discussed but there is concern regarding a rumored 1% project valuation fee that could be proposed going forward. BIA/OC continues to monitor this matter and advocate for voluntary and incentive based programs that expand public art opportunity, but not at the expense of much needed housing projects during a housing crisis.

 

Finally, it has been rumored that the topic of Inclusionary Zoning continues to haunt the halls of the city. In early January the city hosted a developer's roundtable where the topic of Affordable Housing was debated in great detail. The findings of that meeting were shared with the Council and direction was given to staff to pursue non-mandatory policies. As solutions were being drafted, it has come to the attention of the BIA that pressure is being applied to bring the topic back to the Council for further discussion on the specific idea of Inclusionary Zoning. This is a serious threat to homebuilding and BIA/OC will continue to monitor the situation as it evolves.  

City of Brea

BIA/OC is happy to report that the Brea fee increase has been postponed and that it appears fees will remain unchanged. BIA/OC is very grateful to the City for the outreach and engagement they fostered during this process. It stands as a "best practice" and is greatly appreciated by Industry as input, advise and advocacy is essential to the operation of democracy.  

For more information, please contact Adam Wood at awood@biaoc.com.

 

City of Costa Mesa  

On Tuesday night the City of Costa Mesa had a Special Council meeting to discuss the upcoming city budget. As part of that discussion, fee increases were proposed to all Building Fees. Per the city's report, fees have not been adjusted since 1997 and as a result, the city is recovering less than 50% of the cost to administer. During this housing crisis, every fee has a profound impact on the cost of housing and as such, the BIA was present to advocate for further study and phased implementation of any increase. It is expected that the budget with the issue of the fees will be under final consideration on June 19th.

 

For more information, please contact Adam Wood at awood@biaoc.com.

 

County of Orange

The County of Orange has been working for some time on a zoning code update called "Orange is the new Green." This process has been playing out over the last several months and now a draft of the policy is being presented to the County Planning Commission. Many changes are proposed, including parking standards, but the item receiving the most attention is the proposed Tree Preservation Ordinance.

 

This is a new county policy that would require mitigation efforts whenever certain tree species are found on a parcel over 20,000 sq/ft. Properly identifying the trees is something that would require a professional arborist. This means whenever a project is to proceed within the County's jurisdiction, impacted parcels will require additional time and financial burden. BIA/OC is working with staff and officials to alter the policy as in its current form, there is no way to assess the potential impact this will have on the development community. No inventory of identified trees exists so costs could potentially be astronomical. BIA/OC continues to monitor the progress of this matter and if you are considering a project within the County's jurisdiction, please contact Adam Wood at awood@biaoc.com.

This month, our very own CEO Steve La Motte was a featured panelist at the Huntington Beach Chamber of Commerce Economic Conference.  Taking place on May 16th, this forum covered a wide range of topics but the BIA was there to speak on the Housing Panel.  Issues addressed included Sacramento legislation, local ordinances that help and hinder new units and what we should be doing going forward to ease the housing crisis.  This event was well attended by local residents and elected officials alike. 

 

For more information, please contact Adam Wood at awood@biaoc.com.  

 

City of La Habra  

As part of a disturbing and growing trend, the City of La Habra has seen a recall petition and 'no-growth' initiative filed.  The recall is targeted at the City's Mayor, Tim Shaw, also a candidate for County Supervisor.  The premise is that he might vote for a development project in the future and therefore should be subject to recall today.  The no-growth matter is related to the recall push and targets a golf course within the city that could potentially be used for housing.  Papers were filed with the city on the 29th so the clock starts running on the needed 2,400 approximate signatures for the no-growth and the 5,000 approximate signatures needed for the recall. 

 

For more information, please contact Adam Wood at awood@biaoc.com.

 

City of Newport Beach   

Earlier this year we heard from Shopoff Realty at the Government Affairs Committee about an exciting project they have in Newport Beach.  This month we received an update at our Urban Infill Committee meeting and learned about conflicts at the Planning Commission that have delayed the hearing of the matter.  A study session was to occur on the 31st of this month but regrettably, this too has been postponed due to timing conflicts at the city.  This is an important project that upholds the letter and spirit of the city's voter-approved General Plan.  Further, hundreds of local residents have demonstrated support for this project and yet it finds challenges in proceeding.  When a date has been established, BIA will share details and will continue to monitor the progress of this project over the coming weeks and months. 

For more information, please contact Adam Wood at awood@biaoc.com. 

City of Placentia   

A recurring topic has been fee increases in the City of Placentia.  For the third time in just over a year, the City of Placentia approved a fee increase over objection of industry.  This is a situation that BIA/OC continues to monitor as development opportunity exists around the Placentia train station and Packing House.  As presented at past Government Affairs Committee meetings, the opportunity in Placentia has great potential but requires monitoring as fee adjustments can significantly harm development projections. 

 

For more information, please contact Adam Wood at awood@biaoc.com. 

 

May Government Affairs Committee

As reported above, there is a great deal of activity in Anaheim so it was only natural that this month, BIA/OC's Government Affairs Committee heard from Councilwoman Lucille Kring of Anaheim.  The topic of public art fees, rapidly increasing development impact fees, Inclusionary Zoning, affordable housing and more were covered during our conversation.  Also of note, Councilwoman Kring is currently running for a seat on the Board of Supervisors.  Many insights were shared on a wide range of topics and a special thank you to Councilwoman Kring for joining the Committee and sharing updates on all that is occurring. 

 

For more information on this, please contact Adam Wood at awood@biaoc.com.