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

 

 

 

Defend Democracy. Tell the Irvine City Council: These are the Public’s Meetings!

City Councils are not private clubs. Public meetings in a real democracy should not be stage-managed by the political majority to prevent public discussion of issues that they want to avoid for their own political advantage.

Last July, while I was on a long-planned vacation to visit my son in Alaska, the Irvine City Council adopted a new anti-democratic policy that prohibits an item from being placed on the agenda unless the mayor or two city council members agree to do so.

As the Orange County Register correctly stated in a powerful editorial opposing the Council’s action, “the transparent goal is to shut down the views of the political minority.”

The new policy was in direct response to my proposal in June to fly the Gay Pride Flag from City Hall during Gay Pride Month. Although dozens of residents spoke at the meeting in support of flying the Pride Flag, the Council defeated the proposal and I was the only Councilmember to speak in favor of it.

In opposing this restrictive and anti-democratic agenda policy, the Register observed that “Public-meetings laws have a vital purpose in a free society. The public is supposed to be privy to the inner workings of government so they can witness the sausage-making legislative process in action, ugly and unappetizing as it can be. Unfortunately, many local officials act as if hearings are a show – a way to put their best foot forward before the citizenry.”

The Register also recognized 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.”

At this Tuesday’s Irvine City Council meeting, the political majority will propose to extend this anti-democratic policy to the Great Park Board (composed of the members of the Irvine City Council) as well as to all City Commissions.

The public should not tolerate this extension of the current majority’s attack on representative democracy.

Please attend the Tuesday, September 10, 2019, Irvine City Council meeting and let them know that your City Council is not a private club. The meetings of the City Council, the Orange County Great Park, and Irvine City Commissions belong to the public and cannot be staged managed for political advantage. 

As the O.C. Register eloquently stated, “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.”

As I stated in July, I have no intention of being silent.

And neither do you.

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.

 

Democracy Requires an Election to Fill the Vacancy on the Irvine City Council

When Irvine Mayor Donald Wagner took office as an Orange County Supervisor, Mayor Pro Tem Christina Shea automatically took his place as Mayor.

As a result, there is now a vacancy on the Irvine City Council.

Democracy requires an election rather than an appointment to fill this vacancy.

According to law, a vacancy on the Irvine City Council can be filled by appointment by the remaining four members of the Council or by election by the vote of all the residents of Irvine.

Even if the City Council appoints a new member, the people can still override that appointment and demand an election by filling a petition signed by seven percent of the voters of the City.

Some argue that precedent and financial concerns support appointing the third-place runner-up in the previous election to the open seat on the Irvine City Council, rather than holding an election in which the people will choose the person to serve as their representative.

In fact, neither precedent nor principle support an appointment over the people’s choice as determined by an election.

Since the incorporation of Irvine as a City in 1971, there have been three times that a vacancy needed to be filled for a councilmember.

In the first instance, on October 15, 1985, Ralph A. “Ray” Catalano, a professor at UCI and a former planning commissioner, was appointed to serve the remaining three years of Councilmember David Sills term when Sills resigned from the Council to become a superior court judge.

Significantly, Catalano was not the next highest vote-getter in the previous election.  Catalano was not even a candidate in that election and had never run for office. The person who was the next highest vote-getter in the previous election, Mary Ann Gaido, was not appointed to the open seat. Catalano later explained that he was a political compromise choice and was picked by Sills as his successor.

That is the only time that the Irvine City Council has used an appointment by Councilmembers rather than an election by the people to fill a vacancy on the Council.  In every other case of a vacancy on the City Council, the seat has been filled by a vote of the people in a special election.

Our very first Irvine City Council election was a special election, held on December 21, 1971, when Irvine residents approved the City charter.

On November 6. 1990, a special election was held to fill the vacancy on the City Council when Councilmember Sally Anne Sheridan was elected Mayor the previous June. The next highest vote-getter from the previous election – again it was Mary Ann Gaido – was not appointed.  Bill Vardoulis, who had not run in the prior election, entered that race and won that special election.

On November 3, 1992, a special election was held to fill the vacancy on the City Council when Councilmember Art Bloomer resigned with two years remaining in his term.  The next highest vote getter from the year of Bloomer’s election – and it was again Mary Ann Gaido — was not appointed. Greg Smith won that special election.

Additional special elections have also been called numerous other times for various reasons, such as voting on charter amendments, measures and ordinances.

In fact, in the history of municipal elections in Irvine, special elections seem to be the rule rather than the exception.

Third-place candidates have been elected to the City Council under Measure A, which was adopted by the voters in 1991.

Measure A provides in that in City Council elections where one of the sitting Councilmembers is running for Mayor, the voters can cast three ballots for candidates for the office of City Council, so that “if a council member whose term of office has not yet expired is elected to the office of Mayor, the vacancy in the office of that Councilmember shall be filled by the candidate for Councilmember receiving the third highest number of votes.”

So far, this situation has happened four times.

On June 7, 1988, third-place City Council candidate Cameron Cosgrove was elected when Larry Agran was elected Mayor.

On November 7, 2000, third-place City Council candidate Beth Krom was elected when Larry Agran was elected Mayor.

On November 2, 2004, third-place City Council candidate Sukhee Kang was elected when Beth Krom was elected Mayor.

On November 4, 2008, third-place City Council candidate Larry Agran was elected when Sukhee Kang was elected Mayor.

Our current situation is very different from those cases.

In those cases, the voters were given the explicit opportunity to vote for three candidates for City Council.

As a result, the third-place candidate gained his or her seat on the City Council directly and democratically through the knowing vote of the people, not by appointment based on coming in third when the voters only had the choice of two.

Indeed, as I have shown, our City has NEVER appointed a Councilmember based on a third-place or next-highest finish in a previous election.

Some have argued that we should use this method of appointment – which we’ve never used before – simply in order to save the money that would need to be spent on an election.

First, it should be noted that other local cities are conducting special elections for councilmembers that could easily be coordinated by the Orange County Registrar with our own, thereby reducing the cost of the election.

Most importantly, however, I believe that democracy is worth the cost.

Democracy is far from perfect.

Many of us are convinced that we could pick better officials than those the people elect.

But that is not what our nation is about.

We elect our officials as our representatives; they are not appointed over us.

Democracy is messy, inefficient, and, yes, sometimes expensive.

In the words of Winston Churchill, “democracy is the worst form of Government except for all those other forms that have been tried from time to time.”

I agree.

We should fill the vacant seat on the City Council with the choice of the people as determined by an election.

UPDATE:

On Wednesday, April 3, 2019, the Irvine City Council officially declared a vacancy on the Council.

I have been informed by the city’s attorney and the city manager this declaration “starts the clock” regarding the process of filling the vacant council seat. We now have 60 days from April 3, 2019, to come to an agreement on the appointment of a new Councilmember or there will be an election.

Residents have 30 days from April 3, 2019, to file a petition signed by seven percent of Irvine’s registered voters to require an election regardless of what the council does.

UPDATE:

There is now a Republican proposal to circumvent this voting process by using an arbitrary ‘point proposal,’ under which “each Councilmember shall list three (3) applicants [candidates] in order of preference.” The candidates will be assigned the following point values: Top candidate 3 points, second candidate 2 points, and third candidate, 1 point.

Under this proposed procedure, the applicant receiving the most points will be appointed.

This proposed “point ” procedure:

(1) has never been used by the Irvine City Council to decide how to fill a council vacancy or to make any other appointment;
(2) violates the most crucial principle of a representative democracy — that the people’s representatives are selected by majority rule.

Arbitrarily assigning points to 1st, 2nd, and 3rd choice applicants, and then saying the applicant with the “most points” wins, is simply a way to avoid majority rule. It undermines the basic legitimacy of Irvine’s government.

Please attend the next Irvine City Council meeting on Tuesday, April 9, at approximately 3:00 p.m. to make sure your voices are heard.

UPDATE:

While the so-called “point” procedure was defeated at the last meeting, the question of whether to appoint or have an election is still not settled.

Please attend the next Irvine City Council meeting on Tuesday, April 23, where the Council will likely decide either on a process for appointment of the 5th council member to the vacant seat or deadlock to cause an election.

Closed session starts at 4:00 p.m. and the open meeting begins at 5:00 p.m. The agenda is packed so this may run late.

Let the voters have their say!