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.

 

Irvine Community Land Trust Earns Highest Award for Transparency!

As Chair of the Irvine Community Land Trust, and as a longtime advocate for more affordable housing, I am very pleased to announce that the Irvine Community Land Trust has been awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations.

This award is the highest honor that GuideStar can bestow — an objective and authoritative affirmation of the Irvine Community Land Trust’s dedication to transparency and openness.

In fact, the Irvine Community Land Trust trust goes well beyond what is expected of a typical nonprofit by voluntarily keeping our board meetings open to the public, by making our board agendas and minutes, going back to 2012, available online, as well as by making our financials and tax returns available online for all to see.

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 that GuideStar, a universally well-respected and objective organization, has officially recognized the commitment to openness of the Irvine Community Land Trust with their highest award for transparency!

You can read more about my work with the Irvine Community Land Trust to create more affordable housing here, herehere and here.

 

Irvine Community Land Trust Featured in Case Study in UC Berkeley’s Affordable Housing Series

As Chair of the Irvine Community Land Trust, and as an Irvine City Councilmember who has made helping to create affordable housing a priority, I am excited that the Land Trust was recently featured in a case study by the Terner Center for Housing Innovation at UC Berkeley, exploring the impact that local efforts can have in improving the state’s housing crisis.

The Terner Center explains that “Cities have an important role to play in addressing California’s affordable housing shortage, and local policies such as community land trusts, reforming impact fees, and reducing barriers to multi-family housing production can all make a significant difference. Made possible by the support of California’s Department of Housing and Community Development, the Terner Center has conducted a series of case studies to explore how action at the local level can help to address the state’s housing shortfall.”

Irvine Community Land Trust Chair Melissa Fox with Affordable Housing Award for ICLT’s Parc Derian

The case study explains that “Homes for sale or rent within a CLT [Community Land Trust} are permanently held below the market cost while also offering the potential for residents to build equity and share in the economic advancement of their neighborhood.

Faced with rising housing costs and a steady decline in affordable homes, Irvine, California created the Irvine Community Land Trust (Irvine CLT) in 2006 to ensure that all new units created using a public subsidy or as a result of the city’s inclusionary housing ordinance would remain affordable in perpetuity.”

It notes that the Land Trust has recently run into greater opposition from some residents who oppose additional housing, noting that “While
initially the Irvine CLT only developed on vacant land without much neighborhood opposition, the CLT reported that they had
begun to experience neighborhood resistance to an infill project.”

In fact, one of the most difficult to overcome obstacles to creating affordable housing throughout California is resistance from the affluent neighbors, which was the subject of a special — and packed — session at the 2019 Housing California Conference I attended this month in Sacramento.

At the Irvine Community Land Trust, we have sought to overcome resistance and generate community support by voluntarily continuing to keep our board meetings open to the public, by making our board agendas and minutes, going back to 2012, available online, as well as by making our financials and tax returns also available online.

You can read the Terner Center Case Study, which is part of its series “Statewide Goals, Local Tools: Case Studies in Affordable Housing Development in California,” here.

You can read more about my work with the Irvine Community Land Trust to create more affordable housing here, here and here.

 

City of Irvine Wins National Awards for Budgeting and Fiscal Transparency!

I am proud to announce that the City of Irvine has been awarded the Distinguished Budget Presentation Award by the Government Finance Officers Association of the United States and Canada (GFOA).

The award is the highest form of recognition in government budgeting for a city.

It is a significant achievement by the City of the Irvine. The award reflects the commitment of the Irvine City Council, our City Manager, and City staff to meeting the highest principles of governmental budgeting.

In order to receive the budget award, the City had to satisfy nationally recognized guidelines for effective budget presentation. These guidelines are designed to assess how well an entity’s budget serves as: a policy document, a financial plan, an operations guide, and a communications device. Budget documents must be rated “proficient” in all four categories, and the 14 mandatory criteria within those categories, to receive the award.

In addition, the City received the Excellence Award for Fiscal Year 2018-19 Operating Budget from the California Society of Municipal Finance Officers.

There are more than 1,600 participants in the Budget Awards Program. The most recent Budget Award recipients, along with their corresponding budget documents, are posted quarterly on GFOA’s website. Award recipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America.

These awards come at a crucial time as the City of Irvine begins to apply several increases in fiscal responsibility and government transparency that I strongly urged and supported — a two-year budget in the context of a comprehensive five-year financial plan and an Irvine Sunshine Ordinance that expands review time of all regular agenda items to 12 days.

Last year, the City of Irvine received the Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report from the Government Finance Officers Association , as well as two other prestigious awards: The GFOA Distinguished Budget Presentation Award representing the City’s commitment in meeting the highest principles of governmental budgeting, and the California Society of Municipal Finance Officers Award for Excellence in Operational Budget.

I also received the Orange County Taxpayers Watchdog Award from Orange County Auditor-Controller Eric H. Woollery, along with Mayor Don Wagner and Councilmember Christina Shea.

As a member of the Irvine City Council, I am extremely proud of these awards. But much more important to me is the fact that our City is truly serving its residents with fiscal responsibility and transparency.

I ran for City Council on a platform of using my skills as a business attorney to safeguard every public dollar, and I have kept that promise by making sure that Irvine is financially transparent and doesn’t spend more than it can afford.

These awards reflect the commitment that I and my colleagues on the Irvine City Council, as well as our Finance Commissioners and our professional City staff, have made to the taxpayers and residents of Irvine, and to the principles of government transparency and fiscal responsibility.

Government transparency and fiscal responsibility should be neither a conservative nor a liberal idea, but appeal to both, as we strive to address increasing social needs with limited resources.