Leading Real Estate News Source Highlights Irvine Community Land Trust’s Role in a Enacting New Tax Reforms Expected to Fuel Affordable Housing Construction in California!

As Chair of the Irvine Community Land Trust (ICLT), I have been actively working with members of the California State Legislature to enact tax reforms to make it it much easier to create affordable housing throughout California.

The new legislation, SB 196, which ICLT and I worked on with Senators Jim Beall, Mike McGuire, and Bob Wieckowski to pass in Sacramento, and which has now been signed into law by the Governor, allows properties slated for affordable rental homes to get a tax exemption sooner, saving nonprofit builders between millions of dollars that can instead go toward building more affordable homes. The new law also extends this property tax break to land for owner-occupied affordable home projects.  As I told the Orange County Register, “It’s really hard to build these [affordable housing] projects. You have to have a lot of funding, and property taxes can take a significant bite out of that. Even if it didn’t prevent us from doing the [Salerno] project, it lowered the number of units we could do.”

Now that’s been changed.  Under the new law, property tax rates will be lower at the outset for below-market rate, affordable housing, making it much more practical to build more housing for more people in need.

I’m very pleased that GlobeSt.com, a leading real estate news source, has written about our success.

Here is their report:

The New CA Law That Could Generate Loads of Affordable Housing
SB 196 provides a property tax exemption to affordable housing developers during construction.

By Kelsi Maree Borland

“Last week, Gavin Newsom signed a SB 196 into law, creating new opportunities for affordable housing throughout the state. The new law provides a property tax exemption for developers of affordable housing during the construction phase—the first three to five years after purchasing raw land. The legislation is expected to go a long way in fueling more affordable housing development.”

“Organizations like the Irvine Community Land Trust have been advocating for like legislation for years. ‘We have been looking at legislation to support community land trusts for many years,’ Mark Asturias, executive director of the ICLT, tells GlobeSt.com. ‘Our land trust was looking at the welfare exemption specifically because of the high property tax carry cost here in Orange County. Many people understand that the cost of land and housing is very expensive in Orange County, and in our world, we can’t carry the cost of market-rate land. Because most of our land is developed through a public partnership, we hoped to get this in place to use money to pay for the construction of new projects.'”

“Asturias anticipates that the legislation will be successful in generating more affordable housing, which the state of California desperately needs. ‘This is a wonderful opportunity for us. We are now going to be able to develop properties without paying taxes on the property at market rate while we are trying to get our entitlements in place,’ Asturias. ‘In California, it takes three to five years to get through the process from the day you buy the property to the day you can actually finish the construction of the house.'”

“The legislation does come with a caveat. Developers must start and complete their project on time, or they must pay back the taxes. ‘We talked with many people in the community land trust about how long we would need to develop vacant land. It is usually three to five years,’ Asturias says. “We didn’t want to represent to anyone as we were getting this bill put forward that we were land banking, meaning that we were going to hold vacant land and not develop it. That isn’t the mission of a community land trust, and we felt that was reasonable to put a limit on the amount of time that the exemption could be in place. That was a fair trade-off in our view.'”

“The state and Governor’s office is on a mission to combat the housing crisis, and this is only the latest piece of legislation. ‘We want to demonstrate that we can offer a variety of tools, and we believe that the Governor recognized that,’ says Asturias. ‘With all of the legislation that he is passing, we believe that he is demonstrating an effort to address the entire housing spectrum.’”

Our next affordable housing community for the Irvine Community Land Trust is 68 owner-occupied townhomes on Native Spring alongside the 133 toll road.  The ILCLT  has been under contract to buy the land from the city for four and a half years, but has held off closing escrow until the new legislation is in place, saving an estimated $600,000 in property taxes.  Now we are able to move forward immediately on this innovative and exciting project in affordable home ownership!

Learn more about the Irvine Community Land Trust at our website HERE.

You can read our ICLT Newsletter HERE.

In May 2019, the Irvine Community Land Trust was awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations. Read about it HERE.

We Just Opened a New Affordable Housing Community in Irvine and Made it Easier to Create Affordable Housing Throughout California!

I am honored to serve as Chair of the Irvine Community Land Trust (ICLT), guiding its mission of providing secure, high-quality affordable housing for the benefit of income-eligible families.  Like all Irvine Community Land Trust Board Members, I serve as a volunteer, without compensation.  

Since I joined the ICLT, we’ve built two below-market rate apartment communities, Parc Derian and Doria, for families making no more than 80 percent of the area’s median household income; some residents earn less than 30 percent of the median income, which in Orange County is $97,900 for a family of four.

Speaking at the groundbreaking ceremony for Solarno, the Irvine Community Land Trust’s newest affordable housing community.

Last week, we celebrated the groundbreaking for Salerno, our newest affordable housing community in Irvine.

On schedule to be completed in the Fall of 2020, Salerno will offer affordable rents as low as $550 for a one-bedroom, $625 for a two-bedroom and $695 for a three-bedroom. Thirty-five of the homes will be reserved for those earning less than 30 percent of the area median income: 15 for veterans; 10 for individuals with developmental disabilities; and 10 for families at risk of homelessness.

As the Orange County Register observed, this affordable community will be “a new beginning for the veterans, developmentally disabled people and families at risk of homelessness who will become its tenants when it opens next year.”

In addition, I’m excited to report on the passage of new tax break legislation I’ve been fighting for in Sacramento, which will make it much easier to create affordable housing throughout California! 

The new legislation, which I worked on with Senators Jim Beall, Mike McGuire and Bob Wieckowski to pass in Sacramento, allows properties slated for affordable rental homes to get a tax exemption sooner, saving nonprofit builders between millions of dollars that can instead go toward building more affordable homes. The new law also extends this property tax break to land for owner-occupied affordable home projects.

As I told the Orange County Register, “It’s really hard to build these [affordable housing] projects. You have to have a lot of funding, and property taxes can take a significant bite out of that. Even if it didn’t prevent us from doing the [Salerno] project, it lowered the number of units we could do.”

Now that’s been changed.

Before the new legislation, property taxes were not adequately adjusted for below-market rate housing.  Landowners such as the ICLT that wanted to build affordable, below-market housing couldn’t get a property tax exemption until a project was underway, and county tax assessors interpreted that requirement to mean anything from shovels in the ground to tenants moving in.  In the case of Salerno in Irvine, where vacant land is assessed at approximately $4 million an acre, taxes on the land amounted to $275,000, which had to be paid before the project could be constructed.

Under the new law, property tax rates will be lower at the outset for below-market rate, affordable housing, making it much more practical to build more housing for more people in need.

Our next affordable housing community is 68 owner-occupied townhomes on Native Spring alongside the 133 toll road.  The ILCLT  has been under contract to buy the land from the city for four and a half years, but has held off closing escrow until the new legislation is in place, saving an estimated $600,000 in property taxes.  Now we are able to move forward immediately on this innovative and exciting project in affordable home ownership!

Learn more about the Irvine Community Land Trust at our website HERE.

You can read our ICLT Newsletter HERE.

In May 2019, the Irvine Community Land Trust was awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations. Read about it HERE.

Join Me on Thurs., September 19 at 10:00 a.m. for the Groundbreaking for Salerno — the Irvine Community Land Trust’s Newest Affordable Housing Community!

In 2018, I was elected to serve as Chair of the Irvine Community Land Trust, (ICLT) guiding its mission of providing secure, high-quality affordable housing for the benefit of income-eligible families.  Like all Irvine Community Land Trust Board Members, I serve as a volunteer, without compensation. 

We build high-quality affordable rental, ownership and special needs housing for the benefit of income-eligible families. Located in the heart of Southern California’s one of the most expensive real estate markets, there is a tremendous need for affordable housing.

Because this is our home, too, the we are committed to ensuring that Irvine is a place where everyone can call “home.”

On Thursday, Sept. 19, at 10:00 a.m., we’ll be hosting a groundbreaking ceremony for our latest project — the 80-unit Salerno.

You are invited to attend!

On schedule to be completed in the Fall of 2020, Salerno will offer affordable rents as low as $550 for a one-bedroom, $625 for a two-bedroom and $695 for a three-bedroom.

Thirty-five of the homes will be reserved for those earning less than 30 percent of the area median income: 15 for veterans; 10 for individuals with developmental disabilities; and 10 for families at risk of homelessness.

Like all ICLT homes, qualifying residents must register on our Interest List: www.irvineclt.org/interest-list.

Please know that parking will be limited, so come early!

I hope to see you there!

You can read our ICLT Newsletter HERE.

In 2019, ICLT was awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations

 

 

 

Irvine Community Land Trust Receives “No Place Like Home” Award from Families Forward!

As Chair of the Irvine Community Land Trust (ICLT), I’m proud to announce that we have been honored with the “No Place Like Home” award during the 8th Annual Housing Partner Appreciation Event hosted by Families Forward.

ICLT’s Parc Derian, which provided 80 new units of housing for working families, veterans, and special-needs residents of Irvine, was celebrated for providing access to stabilized housing for qualifying low-income families.

Located in the Irvine Business Complex and developed on a 2.2- acre urban infill site, Parc Derian beautiful multifamily four-story community with a pool, tot lot, private parking, exercise center, computer lab, and onsite resident services. Featuring contemporary architecture that incorporates urban inspired elements and finishes, it is also environmentally conscious and designed to achieve a LEED Gold certification.

Intended to bring employees closer to work, it is a short walk to many jobs as well as Irvine Unified Schools, public transportation, dining and shopping options. Apartments range from one- to three bedrooms and include walk-in closets, energy-efficient appliances, assigned parking and balconies.

Parc Derian is the result of a public/private partnership between the Irvine Community Land Trust, C&C Development, Innovative Housing Opportunities (IHO), Lennar Corporation, and the City of Irvine.

Finding solutions to the housing and homelessness crisis has been a priority for me, both as a member of the Irvine City Council and as Chair of the Irvine Community Land Trust.  Irvine has been a model in this area and the Land Trust concept, now being adopted by Orange County and many other cities, is something that Irvine has pioneered.  No other city has a Land Trust like we have, and other cities are working to copy ours.

As ICLT Executive Director Mark Asturias has stated, “Parc Derian is an excellent example of public-private partnerships working creatively to provide affordable housing for Irvine’s workforce. Every family and individual deserves the ability to afford a home in their community. Parc Derian is a tremendous accomplishment for all the partners involved and for the Irvine community. It demonstrates how a city can partner with a home-grown nonprofit such as the Land Trust and developers to bring permanently affordable housing into the community. By providing homes people can afford, they commute less, spend more time with their family, and give back to the community they live in. Irvine is stronger with affordable housing.”

Nonprofit organizations like the Irvine Community Land Trust that work to create more affordable housing are often under attack from NIMBY groups.  That’s one of the reasons why I’m so delighted to see our work recognized by those whose mission is to provide affordable housing for those in need.

I look forward to working with the Irvine Community Land Trust, community partners such as Families Forward, and community-minded businesses in the private sector to continue to provide more permanent, affordable housing for veterans, disabled persons, and working families.

 

How Orange County Lost the U.S. Solar Decathlon

In a recent article in the Voice of OC, Chapman University Professor Fred Smoller and former U.S. Department of Energy official Richard King make a convincing case for a California version of the U.S. Solar Decathlon. The problem is, there already was a California-based Solar Decathlon – located at the Great Park in Irvine – until lack of support and mismanagement by the administration of then-mayor Steven Choi forced the U.S. Department of Energy to find another location elsewhere.

The U.S. Solar Decathlon, which has been sponsored by the U.S. Department of Energy approximately every two years since 2002, is an award-winning international competition that challenges collegiate teams to design, build, and operate solar-powered houses that are cost-effective, energy-efficient, and attractive. The houses are assembled at a central location for display, evaluation, and awards. The winner of the competition is the team that best blends affordability, consumer appeal, and design excellence with optimal energy production and maximum efficiency.

As Smoller and King point out, since the Solar Decathlon’s inception in 2002, more than a dozen California colleges and universities have participated, but no California colleges or universities are slated to participate in the next competition in 2020.

This lack of California participation is troubling, Smoller and King note, because the Solar Decathlon introduces new solar energy technologies to the market and accelerates their implementation; increases and educates the ‘clean tech’ workforce; educates consumers about clean energy; and demonstrates that energy-efficient and solar-powered housing is attainable, practical, and beautiful.

Smoller and King further point out that “as the U.S. surrenders its leadership position on fighting climate change, other nations have stepped in: Solar Decathlons are now being held in Europe, China, the Middle East and Africa. In addition to combating climate change, countries in these regions — especially China — are positioning themselves to take full advantage of the rapidly expanding green economy.”

I wholeheartedly agree with Smoller and King in endorsing a California Solar Decathlon.

California is the ideal location for a Solar Decathlon. California leads the nation, and the world, in developing new and cleaner energy technologies. We are leaders in requiring more effective clean energy standards and in fighting climate change. “To maintain California’s leadership position in the field of clean energy, we must harness the creative energy of our youth, the academic community, industry and labor. By working together, this competition could set a new milestone in clean energy and help make California the sustainability capital of the world.”

Significantly, in both 2013 and 2015, the Solar Decathlon was held right here at the Great Park – until lack of support and mismanagement by the administration of then-mayor Steven Choi forced the U.S. Department of Energy to find another location elsewhere.

It was an incredible achievement in January 2012 when the Great Park team was awarded a $1 million grant to bring the 2013 Solar Decathlon and the XPO in Irvine – the very first time such an award had been made and first time the Decathlon will be held outside of Washington, D.C.

As then-Great Park Board Chair Beth Krom stated at the time, the Solar Decathlon was expected to “bring worldwide attention and economic development to the Great Park and the region and raise public awareness about the benefits of clean energy and energy conservation.”

As I wrote at the time, I was “excited about the potential economic and technological impact that the Solar Decathlon will have for Irvine and Orange County in the future.”

But once the Solar Decathlon contract was awarded, the Irvine City Council, now led by Mayor Steven Choi, completely bungled the opportunity.

First, Mayor Choi and his allies on the Irvine City Council and the Great Park Board (which were then, as now, one and the same) dismissed the public relations firm that had been instrumental in getting the Energy Department to award the Solar Decathlon contract to the Great Park, without hiring any replacement firm – or even adopt a plan – to handle the publicity for the event. The result was far less attendance than been had anticipated when it was assumed that the Solar Decathlon would be properly publicized.

Melissa Fox attending the 2013 U.S. Solar Decathlon at the Orange County Great Park as an Irvine Community Services Commissioner.

Next, Mayor Choi and his allies on the City Council failed to provide proper signage and directions for the event, so that many people who planned to attend could not locate the venue within the uncompleted Great Park.

The City also failed to partner with science, engineering or community based groups to promote and engage with the Solar Decathlon.

In fact, Mayor Choi and his allies on the City Council were hostile to the very premises of the Solar Decathlon. It had been the idea of former Mayor Larry Agran to bring the Solar Decathlon to the Great Park, and the contract was awarded during Agran’s tenure as mayor. Choi never embraced the event as truly belonging to Irvine or the Great Park, instead viewing it with suspicion as belonging to Agran and to Obama’s environmentally pro-active and climate change conscious Department of Energy.

Crucially, Choi did not share the Solar Decathlon’s basic rationale: concerns about the impact of human-caused climate change and the need for new, clean, energy technologies. Rather, Choi told his fellow Republicans that while “it is good to keep the environment clean but [he] completely questions the idea of global warming being caused by human intervention. He opposes cap and trade and other government imposed environmental regulations, calling them an extreme effort to tax businesses and economic growth.”

In line with this anti-scientific thinking regarding the relationship between climate change and human use of fossil fuels, Choi not only cared nothing about ensuring the success of the Solar Decathlon, but ended Irvine’s participation in the Wyland Foundation’s National Mayor’s Challenge for Water Conservation and failed to appoint a quorum for the Irvine Green Ribbon Environmental Committee, causing that important committee – which I revived, along with Mayor Don Wagner, and which I now chair – to cease meeting for the years that Choi was mayor.

As I said in 2016 when the U.S. Department of Energy announced that the Solar Decathlon would be held in Denver, not the Orange County Great Park, “It is extremely disappointing that the Solar Decathlon will no longer he held in Irvine because the Irvine City Council refused to support the continuation of the Solar Decathlon in the Great Park. The Solar Decathlon served as an international showcase for our city — our businesses and educational institutions — as among the world’s leaders in scientific and environmental innovation, but our shortsighted City Council has allowed this tremendous opportunity to go elsewhere.”

In sum, I agree with Fred Smoller and Richard King that a Solar Decathlon in California– a “leading-edge design competition which promotes innovation, education, and market expansion” of clean energy technologies – would be great for our students, teachers, schools and businesses.  That’s why it’s such a pity that the Solar Decathlon was once here in the Great Park, until the event was mismanaged, and the opportunity was squandered, by the Irvine City Council led by Steven Choi.

 

OC Register Editorial: Democracy Cannot be Stage-Managed by the Majority for their Own Convenience and Political Advantage

The Orange County Register’s editorial of July 17, 2019, correctly calls out and condemns the recent move by the Irvine City Council to prevent a Council Member from putting an item on the agenda unless two other members agree to do so.

As the Register states, “The transparent goal is to shut down the views of the political minority. Irvine officials said they want to stop ‘grandstanding,’ but one person’s grandstanding is another’s chance to raise vital concerns.”

The Register also recognizes that while the new rule was adopted specifically to silence me, the effect of the rule will be to silence all disagreement and dissent:

“Fox has previously discussed supposedly ‘divisive’ issues ranging from flying the LGBTQ flag at City Hall to creating a veterans’ cemetery near the Great Park. But this fracas isn’t about the particular issues any member might want to discuss, but about whether a duly elected official has the right to publicly discuss them. Councils are not private clubs . . . These are the public’s meetings and all officials, even minority voices, represent their constituencies. All elected bodies need to encourage wide-ranging discussions so the public can be part of the self-government process – and not just observers of a carefully crafted script. That’s the essence of representative democracy.”

Thank you to the OC Register for recognizing that public meetings in a real democracy cannot be stage-managed by the majority for their own convenience and political advantage.

As I’ve said before, Irvine’s current pro-Trump Council majority has made it clear that they are following in Irvine the very same playbook of obstruction and bullying used in Washington by Trump and Mitch McConnell, and with the same goal: to silence opposing voices.

But I have no intention of being silent.

And neither do you.

As with Trump and McConnell, we must persist and resist every day, and throw them out decisively in November 2020.

In the meantime, I’ll continue to raise my voice to speak for progressive policies and values — like respect for LGBTQ people, a state cemetery for our veterans, implementation of a serious plan to tackle climate change, more accessible child care, ending sexual violence and discrimination in the workplace, building affordable housing, and ensuring greater government transparency — as I was elected to do.

 

No, We Won’t Back Down

At its last meeting, the Irvine City Council took the unprecedented step of voting to prohibit a council member from placing an item on the agenda without two other council members’ approval.

Now, only the mayor will be allow to put an item on the agenda — a power that until last week had for decades belonged to every individual member of the City Council.

There have been many shifting majorities on the City Council over the years, but no other Council has gone so far to silence dissenting voices and points of view.

You can read about what took place in this excellent article in Voice of OC, including how this new rule is directed squarely at me in retaliation for proposing that Irvine fly the Pride Flag at City Hall, and how they made sure to propose the new rule — and then quickly enact it —  while I was on a long-planned trip to Alaska.

The truth is that Irvine’s Republican, pro-Trump Council majority — created by appointment in a back-room deal — has made it clear that they are following in Irvine the very same playbook of obstruction and bullying used in Washington by Trump and Mitch McConnell, and with the same goal: to silence opposing voices.

But I have no intention of being silent.

And neither do you.

As with Trump and McConnell, we must persist and resist every day.

And throw them out decisively in November 2020.

In the meantime, I’ll continue to raise my voice to speak for progressive policies and values — like respect for LGBTQ people, a state cemetery for our veterans, implementation of a serious plan to tackle climate change, more accessible child care, ending sexual violence and discrimination in the workplace, building affordable housing, and ensuring greater government transparency — as I was elected to do.