Irvine Community Land Trust Continues Mission of Providing Affordable Housing During COVID-19 Crisis

Last week, my colleagues on the Board of Directors of the Irvine Community Land Trust (ICLT) unanimously elected me to serve another year as Chair.  I am grateful for their support and for the opportunity to continue to lead the important work of the Land Trust in this difficult time.

As we fight this deadly outbreak, secure and affordable housing has never been more important.

I’m very happy that California Governor Newsom has issued an Executive Order halting evictions due to non-payment of rent due to medical or financial consequences of COVID-19.  Adding to California’s already far too high 150.000 homeless population would make it even more difficult for us to stop the spread of the virus.

At our next meeting, which will be conducted electronically and to which the public is invited, we will be adopting new measures to help our tenants deal with the COVID-19 emergency, including rent deferments and other forms of assistance.

Our Executive Director of the Irvine Community Land Trust, Mark Asturias, has released the following statement in regard to ICLT’s response to COVID-19:

“Greetings,

There’s no shortage of uncertainly in the world lately, so I’d like to take a moment to tell you exactly how the Irvine Community Land Trust is navigating the post-COVID world.

As an affordable housing nonprofit, our communities are comprised of some of Irvine’s most vulnerable populations, even when there isn’t a global crisis weighing on them. No matter the circumstances, we remain steadfast in our commitment to our residents and to ensuring they have a place they can be proud to call “home.”

We will not falter, but we are doing things a little differently to best protect the health and safety of our staff, board members, residents and partners in the community.

For starters, we’re observing social distancing by moving our regular public board meetings online. Earlier this week, we held the ICLT’s first online board meeting, utilizing both Zoom and a public phone line to great effect. Information on joining our future digital meetings will be posted as available at http://www.irvineclt.org/agenda.

At each of our properties – Parc Derian, Alegre and Doria – we’re working with property managers to ensure residents are equipped with the knowledge and resources they need to navigate these trying times.

Through a series of special government protocols, we’re continuing construction on our new community, Salerno. Out of concern for our construction workers, we’re also undertaking extraordinary measures to ensure they stay safe and healthy while on the job. And, in cooperation with our community partners, we’re continuing our work to make Irvine the best it can be, no matter the challenges we face.

In the coming weeks, the next edition of our newsletter will be delivered as usual, packed with the latest and greatest from the ICLT. For now, rest assured that our commitment to our mission burns stronger than ever as we rise to face this unprecedented situation.

Until next time, stay safe and stay healthy – we’re all in this together.

Sincerely,

Mark Asturias
Executive Director
Irvine Community Land Trust”

For links to up-to-date COVID-19 Resources and Information, click HERE.

 

 

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.

 

 

 

 

 

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.

Why I Voted “No” on a Zoning Change to Permit 1,000 More Million Dollar Single Family Houses in Irvine. Tell the Irvine City Council What You Think!

Recently, I voted “No” on continuing the second reading of a re-zoning proposal that would allow the addition of 1,000 single family million dollar houses to be built by the Irvine Company in the area of Portola Springs/Orchard Hills in Irvine.

This vote could have been the end of the issue, since on the first reading both Mayor Christina Shea and Councilmember Mike Carroll voted against the re-zoning.

However, Councilmember Mike Carroll now voted with the supporters of adding 1,000 new homes (Councilmembers Anthony Kuo and Farrah N. Khan) to continue the item to January 2020.

Carroll, Kuo and Khan won the vote to continue, 3-2. This means that these additional 1,000 million dollar single family houses will again come before the Council.

As a longtime advocate for local communities to permit more housing to alleviate our statewide affordable housing crisis, I was initially disposed to vote in favor of this re-zoning proposal.

But on further reflection, it became apparent to me that this proposed housing development would be built without the necessary infrastructure, including new schools and a local retail center, which are needed and have long been promised to residents.

I am a strong advocate for action on the local and state level addressing the housing crisis, but not at the cost of overcrowded schools and the abandonment of Irvine’s renowned village model and our Master Plan balancing housing with schools, retail centers, and open space.

In particular, I am a strong supporter of Irvine’s village concept, which is intended to reduce sprawl and traffic congestion, and create walkable neighborhoods and a sense of community, by locating housing, at several different levels of purchase price or rental cost, around both local schools and a local retail center.  This village model — an essential part of Irvine’s Master Plan long promoted by the Irvine Company — has been enormously successful.  As the Irvine Chamber of Commerce has boasted, Irvine is a “City of Villages.”

You can see a video promoting the Irvine Master Plan, with specific reference to the Irvine village model as an integral part of the Master Plan, here:

For this reason, I was very concerned — shocked, actually — when a representative of the Irvine Company responded to my questioning by stating that the Irvine Company had no plans to build a retail center near these new homes and were no longer committed to the village model.

In other words, I came to see that voting in favor of this zoning change is tantamount to voting for Irvine to no longer be a “City of Villages.”

On the issue of whether these proposed 1,000 million dollar homes would help alleviate the affordable housing crisis, here are the facts:

This week’s OC Register reports on an analysis by the Southern California News Group that graded every jurisdiction in California on its progress on state-mandated housing goals (the Regional Housing Needs Assessment or RHNA).

According to the article, Irvine is supposed to permit 12,149 homes between 2013 and 2021. Housing units are mandated in each of four categories: (1) very low income, (2) low income, (3) moderate income, and (4) above moderate income.

The number show that Irvine has done exceptionally well in providing housing in the moderate and (especially) above moderate income categories, but is not doing nearly as well in the low income and very low income categories, where it is seriously off track in meetings its RHNA goals.

Very Low Income Units: Irvine has permitted 907 very low income units, needs 1,761 to be on track, 2,817 for final goal.  In sum, very low income units are not on track, and are far from the final goal.

Low Income Units: Irvine has permitted 3 units, needs 271 to be on track, 2,034 for final goal. In sum, low income units are not on track, and are far from final goal.

Moderate Income Units: Irvine has permitted 12,973 units, needs 1,399 to be on track, 2,239 for final goal. In sum, moderate income units are more than on track, and are already in excess of the final goal.

Above Moderate Income Units: Irvine has permitted 12,137 units, needs 3,162 to be on track, 5,059 for final goal. In sum, above moderate income units are far more than on track, and are already far in excess of the final goal.

These numbers demonstrate what everyone knows: Irvine’s housing is overwhelmingly skewed toward the “Above Moderate Income” market.

The 1,000 housing units that would be added to Portola Springs/Orchid Hills under the re-zoning proposed by the Irvine Company are single family homes costing above $1,000,000.  These 1,000 “Above Moderate Income” units would not help Irvine meet its Regional Housing Needs Assessment (RHNA) goals.

On the contrary, they would exacerbate Irvine’s school over-crowding and traffic congestion problems while doing little or nothing to ease our affordable housing crisis.

That’s why I voted No.

It is my belief that only saying No to these projects that provide housing only for the well-to-do, will we encourage developers to build more environmentally responsible and affordable housing projects.

I hope Irvine residents will make their views on this proposal for an additional 1,000 million dollar single family houses clear to all members of the Council between now and then.

Contact information for all members of the Irvine City Council can be found here.

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.

California State Auditor Gives Irvine Highest Rating for Fiscal Health!

As an Irvine City Councilmember who ran on a promise of fiscal responsibility, I am very pleased to announce that the California State Auditor’s Office has recently published a comprehensive ranking of 471 California cities based on their fiscal health and that Irvine achieved the Auditor’s highest possible rating of “low risk.”

This designation indicates that a city has low risk of experiencing fiscal distress.

A map created by the state auditor’s office ranks cities by fiscal health. Green is low risk, yellow is moderate risk and red is high risk.

Among the indicators used to evaluate the cities’ fiscal health were each city’s cash position or liquidity, debt burden, financial reserves, revenue trends, and ability to pay for employee retirement benefits.

I’m proud of my record on the Irvine City Council in increasing government accountability, openness, and transparency.

I’ve 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.”

Under my leadership, 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.

I was also the only member of the Irvine City Council to oppose Measure D, which would have eliminated voter input into development decisions, because I believe that citizens must have a strong voice in deciding the future of their neighborhoods.

I enthusiastically supported the City’s adoption of the Irvine Sunshine Ordinance, which expanded public notice to four times longer than California law requires and prevents government action without full and informed participation from the community. I also supported approval of a two-year budget cycle, along with a five-year financial planning program, to bring more accountability to government spending.

You can read the full California State Auditor’s Report HERE.

As a member of the Irvine City Council, I am extremely proud of these accomplishments 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 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.

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.