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.

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

 

 

 

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.

 

 

Making Affordable Housing a Reality: My Remarkable Year with the Irvine Community Land Trust!

In 2018, I was elected to serve as Chair of the Irvine Community Land Trust, 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.

I am very proud of what we accomplished at the Irvine Community Land Trust (ICLT) this year!

As we all know, Irvine is among the most expensive real estate markets in the nation; for this reason there is a tremendous need for, and tremendous obstacles to, affordable housing. 

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.

Here is a short video that explains the work the Irvine Community Land Trust does to create more affordable housing in Irvine:

2018 was truly a remarkable year for the Land Trust.

In 2018, we opened Parc Derian, which brings 80 new units of housing for working families, veterans, and special-needs residents of Irvine. Located in the Irvine Business Complex, Parc Derian is a beautiful multifamily community with a pool, tot lot, private parking, exercise center, computer lab, and onsite resident services.

Designed 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.

Also in 2018, we began work on Salerno, a new 80-unit rental community. Like Parc Derian, Salerno will provide permanent affordable housing for working families, veterans, and special-needs residents of Irvine.

Significantly, in 2018 we began to develop our first homes for ownership with help from a new partnership with Habitat for Humanity of Orange County. This new Irvine community, called Chelsea on Native Spring, located north of Irvine Boulevard, will include 68 affordable home for sale to income-eligible veterans, working families, and young professionals.

Homes will be sold to first-time homebuyers who earn up to 120 percent of the area’s medium income. In an area where the median home price is $727,000 and average annual income is around $80,000 for a family of four, many people are priced out of the market and face housing and financial uncertainties while trying to build a life in Irvine. The Chelsea on Native Spring project aims to keep those people in Irvine, especially military veterans, teachers, nurses, and young professionals.  It is expected to begin construction in 2019.

In addition to these new projects, we continued in 2018 to provide quality housing and services to 238 households living at Alegre Apartments and Doria Apartment Homes.

In all, that’s 466 households, and more than a thousand people, who can comfortably live, work and raise families in Irvine directly because of the work of the Irvine Community Land Trust.

In 2018, I traveled to Pittsburgh, Pennsylvania, to represent the Irvine Community Land Trust at a national conference on affordable housing and traveled to Sacramento, where we moved forward to convince the California Legislature to remove tax barriers to creating permanent affordable housing, meaning that more affordable housing could be built in California. We expect that this year we will have the support we need to pass the legislation and I am again making the trip to Sacramento to secure more affordable housing in our state.

It should also be noted that in 2018, the Irvine Community Land Trust became an independent 501(c)(3) nonprofit corporation. This development was envisioned as eventual in the City’s initial 2006 plan for the Land Trust, which states that the trust shall become self-sustaining and independent after it attains 200 affordable housing units. That threshold was crossed in 2017, and the Irvine Community Land Trust now owns more than 200 homes in three Irvine communities.

The move to become independent from the City of Irvine is designed to make it easier for donors and strategic partners to contribute materials, services, and funds on a tax-free basis, therefore increasing the resources that the Irvine Community Land Trust has to create more affordable housing.

The City of Irvine and its residents also benefit from the separation due to the financial savings in regard to staff salary and office space, which will no longer be provided by the City.

As ICLT Executive Director Mark Asturias explained, becoming legally independent from the City “is a tremendous win-win for both the Land Trust and the citizens of Irvine.  We can operate more efficiently and with less reliance on taxpayers, and we can apply a greater focus on our core mission – to provide high-quality affordable housing to the community.”

Moreover, in the interest of maintaining transparency and community engagement, the Irvine Community Land Trust, on my motion, has voluntarily opened all meetings to the public.  The open session format will allow members of the community to come, hear and be heard on programs and projects being implemented by the Land Trust Board.

Through this meeting format the Land Trust Board hopes to generate community interest and support for its programs, and foster collaboration on its mission to build quality affordable housing for Irvine residents.

I have also called for a City Council vote to apply the City’s Sunshine Ordinance to all non-profit agencies that receive significant funding from the City of lrvine.

Accordingly, for the January 8, 2019 City Council meeting, I have requested a presentation from City staff followed by discussion and direction from the City Council, regarding the application of the City’s Sunshine Ordinance to all non-profit entities in the community that receive significant funding from the City. Please come to the Irvine City Council meeting on Tuesday, January 8, 2019, to discuss this important matter.

Stay tuned to this blog, as well as the Land Trust’s newly launched Facebook and Linkedin pages, for more information on our progress in creating affordable housing.

2019 promises to be even more positive and exciting!

 

Let the Sunshine In! Apply Irvine’s Sunshine Ordinance to All Non-Profits Receiving Significant City Funding!

Let the sunshine in!

As an Irvine City Councilmember, I am proud of my record regarding increasing government accountability, openness, and transparency.

In 2017, I received the Orange County Taxpayers Watchdog Award for “demonstrating dedication to the protection of taxpayer funds and for the advocacy of government transparency and fiscal responsibility.”

In February 2018, I was the only member of the Irvine City Council to oppose Measure D, because I believe that Irvine residents must continue to have a strong voice in determining how our city grows.

This year, I enthusiastically supported the City’s adoption of the Irvine Sunshine Ordinance, which expands public notice to four times longer than California law requires and will prevent government action without full and informed participation and input from the community.

In addition, I have supported approval of a two-year budget cycle, up from the present one-year budget, along with a five-year financial planning program, to bring more accountability to government spending.

We need to do more.

This week, on my motion, the Irvine Community Land Trust, which I chair, has voluntarily opened all future meetings to the public. 

The Irvine Community Land Trust intends the open meeting format to allow members of the community to come, hear, and be heard on programs and projects being implemented by the board.  Through this meeting format, the Land Trust hopes to generate input, interest, and support for its projects and funding programs from the community. All Irvine Community Land Trust board meetings will be open to the public beginning the next regularly scheduled meeting.

I have also called for a City Council vote to apply the City’s Sunshine Ordinance to all non-profit agencies that receive significant funding from the City of lrvine.

Accordingly, for the January 8, 2019 City Council meeting, I have requested a presentation from City staff followed by discussion and direction from the City Council, regarding the application of the City’s Sunshine Ordinance to all non-profit entities in the community that receive significant funding from the City.

Please come to the Irvine City Council meeting on Tuesday, January 8, 2019, to discuss this important matter.

You can find more information about speaking at our Irvine City Council meetings here.

See you there!