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 Us on Thursday, September 19, at 5:30–6:30 p.m. for Public Outreach on the Universal Playground Project at Sweet Shade Neighborhood Park!

Please join us on Thursday, September 19, at 5:30–6:30 p.m. for the City’s public outreach opportunity regarding the Sweet Shade Ability Center at Sweet Shade Neighborhood Park. 

This event is the public’s first opportunity to provide input that will help guide the planning and design for this important Universal Playground project.

In July 2019, the City’s Disability Services program relocated its offices from City Hall to Sweet Shade Neighborhood Park. As a renovated facility, the Sweet Shade Ability Center provides a larger, more accessible, and inviting hub for the delivery of Disability Services activities to Irvine residents. To complement this use, the City proposes to develop the City’s first Universal Playground.

Universal playgrounds are designed to be usable by all people to the greatest extent possible without the need for adaptation or specialized design, including theme-oriented playground equipment, site furnishings, and shade canopies that are well integrated with the existing park, leaving no child on the sidelines.

This public outreach event will include a staff-led tour of the existing playground and potential locations for integrating universal play elements or developing an adjacent universal playground. Planning staff will be present to answer questions about the project, and participants will be able to sign up and receive project updates.

Universal Playgrounds are designed to provide inclusive and meaningful play experiences for children of all ages and abilities. Your input will help the City of Irvine create a unique and meaningful play environment that meets universal developmental needs by providing opportunities for physical, cognitive, communicative, social/emotional, and sensory development for all children to the greatest extent possible.

I’m excited to join Irvine Community Services Commission Chair Lauren Johnson-Norris and other City officials who have been working for all of Irvine’s children at this important event.

Date: Thursday, September 19, 2019
Time: 5:30–6:30 p.m.
Location:Sweet Shade Ability Center at Sweet Shade Neighborhood Park, 15 Sweet Shade, Irvine CA 92606

See you there!

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.

 

Urge the Irvine City Council to Adopt a Climate Action Plan Without Delay!

I’m unable to attend the Tuesday, July 9, 2019, Irvine City Council meeting because I’m on a long-planned trip to visit my son in Alaska.

Although I’m not able to be present, I urge you to attend the City Council meeting and speak in support of the City creating a Climate Action Plan without delay.

Action on climate and the environment have been crucial issues for me as a member of the Irvine City Council and as Chair of the Irvine Green Ribbon Environmental Committee.

Interestingly, I’m unable to attend the City Council meeting because I’m currently in Glacier Bay National Park, which is perhaps the place on earth where the effects of climate change can most dramatically be seen.

The magnificent tidewater glaciers here have been receding at an alarming rate because over time the snowpack has been inadequate to counteract the impact of long-term temperature increase.

In addition, the sky here is thick with smoke from more than 120 wildfires, because Alaska, like California, is suffering from the effects of long-term drought as well as climate change.

From my current vantage point in Glacier Bay National Park, there is no greater issue demanding action than climate change.

Please read the very compelling letter that Climate Action Campaign Orange County has sent to members of the Irvine City Council, explaining the urgent need for — and the benefits of — a swift adoption of a Climate Change Plan for Irvine.

As Climate Action Campaign Orange County Organizer Robin Raeder Ganahl has aptly stated, “Irvine residents deserve to know what the City’s plan is to reduce emissions, meet state targets, and protect their quality of life!”

I hope you can attend the Tuesday, July 9, 2019, Irvine City Council meeting, as well as write to the Mayor and the City Council, explaining why this issue matters to you.

Your participation in support of Irvine’s adoption of a Climate Action Plan can make a very big difference, not just for our generation but for generations to follow.

Thanks!

Join Me at the Green Ribbon Committee Meeting on Monday, June 24, to Discuss the Community Choice Energy Study!

Community Choice Energy (CCE) is a way for cities, counties or regions in California to look out for their own energy interests, a hybrid between regulated and deregulated electricity supply. CCE programs seek to provide energy that is cheaper and cleaner than energy provided by for-profit utility companies.

Under a CCE program, the local utility company still provides all of the billing services and infrastructure to supply electricity to the point of use, but they are no longer responsible for selecting the electricity supplier. Instead, the community chooses its energy supplier. CCEs across the state are now offering more renewable energy content, and at lower cost, than the electricity supplied by the utility company.

On September 25, 2018, before a standing-room crowd, I joined with my colleagues on the Irvine City Council in voting to commission a feasibility study to determine the pros and cons of implementing a CCE program in Irvine, including potential economic benefits for the community.

The proposal for a feasibility study of CCE in Irvine was initially developed and endorsed by the Irvine Green Ribbon Environmental Committee, which I have the honor to serve as Chair.

We now have that study, as EES Consulting has completed a comprehensive analysis of the viability (including costs and benefits) of a Community Choice Energy program in Irvine.

Among the study’s crucial conclusions is the projection that a CCE in Irvine would result in $7.7 million per year in citywide electricity cost savings for Irvine residents and businesses, and a $112,000 per year savings for the City itself in municipal energy costs.

The study further reports that implementation of a CCE program in Irvine is likely to drive additional local economic development benefits, such as new jobs and $10 million in annual economic output.

While the study notes that there is some risk involved, it also points to several strategies by which these risks could be mitigated and managed.

As a member of the Irvine City Council and as Chair of the Green Ribbon Commission, I am tremendously excited by this study and its conclusions.

The Green Ribbon Environmental Committee will be discussing the study and next steps to take regarding implementation of Community Choice Energy in Irvine at our meeting on Monday, June 24, 2019, at 4:30 in Room L102 at Irvine City Hall. 

I urge everyone interested to attend the meeting and to speak up for cleaner, cheaper energy.