Mike McGuire

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Creating Affordable Housing in Irvine: Read the Irvine Community Land Trust 2019 Annual Report!

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.  Located in Irvine, California, the heart of Southern California’s most expensive real estate market, there is a tremendous need for affordable housing. Because this is our home, too, ICLT is committed to ensuring that Irvine is a place everyone can call “home.”

Recently, ICLT has released its 2019 Annual Report, which I want to share with you.

The Annual Report includes information about the latest achievements in our mission to provide permanent affordable housing to income-eligible Orange County residents.

Read the full report HERE.

We are proud of our progress in this critical area for our community and recognize that there is much more work to be done in 2020 and beyond.

We at the Irvine Community Land Trust are extremely proud to put a successful 2019 to bed. It was a landmark year for our nonprofit organization, marked by critical milestones, a host of awards and a major legislative accomplishment that will benefit the affordable housing landscape across California for decades to come.

Progress on Salerno as of Feb. 2020. Groundbreaking on Sept. 19, 2019. Completion expected Fall 2020.

Most importantly, though, 2019 saw the birth of new, high-quality affordable rental housing for the benefit of income-eligible families.

Due to our robust economy and desirable standard of living, Irvine remains one of the most expensive real estate markets in the nation.

Unfortunately, affordable housing is extremely limited and our working-class citizens, who are the backbone of the city, are among some of Irvine’s most vulnerable residents. With them in mind and in our hearts, we were thrilled to break ground on Salerno, the ICLT’s newest community which will bring 80 affordable homes to the city, including 15 for veterans, 10 for individuals with disabilities and 10 for families at risk of homelessness.

The homes at Salerno are growing by leaps and bounds, and have now climbed up to include a third floor. Keep checking back for more progress pictures from the site, and look forward to the community opening its doors later this year.When completed in the fall, Salerno will join Parc Derian, Alegre Apartments and Doria Apartment Homes as places where income eligible residents will proudly call Irvine “home.”

As the Orange County Register observed, these affordable communities offer “a new beginning for veterans, developmentally disabled people and families at risk of homelessness.”

Looking ahead, 2020 is shaping up to be equally exciting as we begin work on our first home ownership community, Native Spring. That will prove to be a real game-changer for us, the city and, of course, the new homeowners! For the first time, the Irvine Community Land Trust will build for-sale homes that hard-working Irvine residents making less than $100,000 can actually afford to buy.

The Native Spring homeownership project will serve moderate-income families with a 68-house development in Portola Springs that will have all the features of any market rate for-sale project in the city. A young couple earning $76,000 to $94,000 annually will be able to purchase a home for about $370,000.

Additionally, these homebuyers will “pay it forward” by agreeing to resale provisions that keep these homes permanently affordable. This development, which will break ground in 2020, is tremendously exciting for the ICLT as it stands to make the American dream a reality for many first time home buyers.

The ICLT continues to look for corporate donors who can provide grant opportunities, donate materials and items to help build, furnish and landscape new communities. Contact us to learn how to contribute!

You can learn more about the Irvine Community Land Trust at our website 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.  You can read about it HERE.

 

 

 

 

 

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The Challenges of Affordable Housing – and How the Irvine Community Land Trust is Making Progress by Opening the Door to a Wave of New Home Owners

As many of you know 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.

Late last year, 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, these affordable communities offer “a new beginning for veterans, developmentally disabled people and families at risk of homelessness.”

Recently, ICLT has released a video made during the groundbreaking for Salerno, which I want to share with you:

 

In the video, I talk about the crucial role that ICLT and I played in the passage of 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 easier and more practical to build more permanently affordable housing for more people in need.

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.

The affordable housing we’ve created with ICLT profoundly and positively impacts the health and education outcomes for hundreds of people. That’s why I volunteer to serve as Chair of the Irvine Community Land Trust. The affordable housing crisis isn’t just about buildings. We’re building communities for all the people who desperately need a place to live, including children who need a positive environment to thrive.

You can learn more about the Irvine Community Land Trust at our website 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.  You can read about it HERE.

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Read the Irvine Community Land Trust Q4 2019 Newsletter: New Affordable Housing, Tax Reform, Affordable Housing Conference, and More!

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.  

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.

ICLT Chair Melissa Fox speaking at the groundbreaking of Salerno, our newest affordable housing community in Irvine.

Recently, 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, these affordable communities offer “a new beginning for veterans, developmentally disabled people and families at risk of homelessness.”

New Communities, the first modern land trust, started 50 years ago in Georgia by the descendants of slaves.

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.

Mark Asturias, Melissa Fox, and Leon M. Nappier at New Communities.

Last month, I traveled to Georgia with ICLT Executive Director Mark Asturias and fellow board member Leon M. Napper for the Reclaiming Vacant Properties and Grounded Solutions Conference. While we were there, we visited New Communities, the first of the modern land trusts, founded in Leesburg, Georgia, in 1969, a former plantation is now owned by the descendants of slaves and dedicated to conservation and racial reconciliation. This land trust went on to inspire the hundreds of community land trusts that exist today, ourselves included.

All of these recent events are covered in our Q4 2019 Irvine Community Land Trust Newsletter HERE.

The affordable housing we’ve created with ICLT profoundly and positively impacts the health and education outcomes for hundreds of people. That’s why I volunteer to serve as Chair of the Irvine Community Land Trust. The affordable housing crisis isn’t just about buildings. We’re building communities for all the people who desperately need a place to live, including children who need a positive environment to thrive.

You can learn more about the Irvine Community Land Trust at our website 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.  You can read about it HERE.

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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.

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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.