Leading Real Estate News Source Highlights Irvine Community Land Trust’s Role in a Enacting New Tax Reforms Expected to Fuel Affordable Housing Construction in California!

As Chair of the Irvine Community Land Trust (ICLT), I have been actively working with members of the California State Legislature to enact tax reforms to make it it much easier to create affordable housing throughout California.

The new legislation, SB 196, which ICLT and I worked on with Senators Jim Beall, Mike McGuire, and Bob Wieckowski to pass in Sacramento, and which has now been signed into law by the Governor, allows properties slated for affordable rental homes to get a tax exemption sooner, saving nonprofit builders between millions of dollars that can instead go toward building more affordable homes. The new law also extends this property tax break to land for owner-occupied affordable home projects.  As I told the Orange County Register, “It’s really hard to build these [affordable housing] projects. You have to have a lot of funding, and property taxes can take a significant bite out of that. Even if it didn’t prevent us from doing the [Salerno] project, it lowered the number of units we could do.”

Now that’s been changed.  Under the new law, property tax rates will be lower at the outset for below-market rate, affordable housing, making it much more practical to build more housing for more people in need.

I’m very pleased that GlobeSt.com, a leading real estate news source, has written about our success.

Here is their report:

The New CA Law That Could Generate Loads of Affordable Housing
SB 196 provides a property tax exemption to affordable housing developers during construction.

By Kelsi Maree Borland

“Last week, Gavin Newsom signed a SB 196 into law, creating new opportunities for affordable housing throughout the state. The new law provides a property tax exemption for developers of affordable housing during the construction phase—the first three to five years after purchasing raw land. The legislation is expected to go a long way in fueling more affordable housing development.”

“Organizations like the Irvine Community Land Trust have been advocating for like legislation for years. ‘We have been looking at legislation to support community land trusts for many years,’ Mark Asturias, executive director of the ICLT, tells GlobeSt.com. ‘Our land trust was looking at the welfare exemption specifically because of the high property tax carry cost here in Orange County. Many people understand that the cost of land and housing is very expensive in Orange County, and in our world, we can’t carry the cost of market-rate land. Because most of our land is developed through a public partnership, we hoped to get this in place to use money to pay for the construction of new projects.'”

“Asturias anticipates that the legislation will be successful in generating more affordable housing, which the state of California desperately needs. ‘This is a wonderful opportunity for us. We are now going to be able to develop properties without paying taxes on the property at market rate while we are trying to get our entitlements in place,’ Asturias. ‘In California, it takes three to five years to get through the process from the day you buy the property to the day you can actually finish the construction of the house.'”

“The legislation does come with a caveat. Developers must start and complete their project on time, or they must pay back the taxes. ‘We talked with many people in the community land trust about how long we would need to develop vacant land. It is usually three to five years,’ Asturias says. “We didn’t want to represent to anyone as we were getting this bill put forward that we were land banking, meaning that we were going to hold vacant land and not develop it. That isn’t the mission of a community land trust, and we felt that was reasonable to put a limit on the amount of time that the exemption could be in place. That was a fair trade-off in our view.'”

“The state and Governor’s office is on a mission to combat the housing crisis, and this is only the latest piece of legislation. ‘We want to demonstrate that we can offer a variety of tools, and we believe that the Governor recognized that,’ says Asturias. ‘With all of the legislation that he is passing, we believe that he is demonstrating an effort to address the entire housing spectrum.’”

Our next affordable housing community for the Irvine Community Land Trust is 68 owner-occupied townhomes on Native Spring alongside the 133 toll road.  The ILCLT  has been under contract to buy the land from the city for four and a half years, but has held off closing escrow until the new legislation is in place, saving an estimated $600,000 in property taxes.  Now we are able to move forward immediately on this innovative and exciting project in affordable home ownership!

Learn more about the Irvine Community Land Trust at our website HERE.

You can read our ICLT Newsletter HERE.

In May 2019, the Irvine Community Land Trust was awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations. Read about it HERE.

We Just Opened a New Affordable Housing Community in Irvine and Made it Easier to Create Affordable Housing Throughout California!

I am honored to serve as Chair of the Irvine Community Land Trust (ICLT), guiding its mission of providing secure, high-quality affordable housing for the benefit of income-eligible families.  Like all Irvine Community Land Trust Board Members, I serve as a volunteer, without compensation.  

Since I joined the ICLT, we’ve built two below-market rate apartment communities, Parc Derian and Doria, for families making no more than 80 percent of the area’s median household income; some residents earn less than 30 percent of the median income, which in Orange County is $97,900 for a family of four.

Speaking at the groundbreaking ceremony for Solarno, the Irvine Community Land Trust’s newest affordable housing community.

Last week, we celebrated the groundbreaking for Salerno, our newest affordable housing community in Irvine.

On schedule to be completed in the Fall of 2020, Salerno will offer affordable rents as low as $550 for a one-bedroom, $625 for a two-bedroom and $695 for a three-bedroom. Thirty-five of the homes will be reserved for those earning less than 30 percent of the area median income: 15 for veterans; 10 for individuals with developmental disabilities; and 10 for families at risk of homelessness.

As the Orange County Register observed, this affordable community will be “a new beginning for the veterans, developmentally disabled people and families at risk of homelessness who will become its tenants when it opens next year.”

In addition, I’m excited to report on the passage of new tax break legislation I’ve been fighting for in Sacramento, which will make it much easier to create affordable housing throughout California! 

The new legislation, which I worked on with Senators Jim Beall, Mike McGuire and Bob Wieckowski to pass in Sacramento, allows properties slated for affordable rental homes to get a tax exemption sooner, saving nonprofit builders between millions of dollars that can instead go toward building more affordable homes. The new law also extends this property tax break to land for owner-occupied affordable home projects.

As I told the Orange County Register, “It’s really hard to build these [affordable housing] projects. You have to have a lot of funding, and property taxes can take a significant bite out of that. Even if it didn’t prevent us from doing the [Salerno] project, it lowered the number of units we could do.”

Now that’s been changed.

Before the new legislation, property taxes were not adequately adjusted for below-market rate housing.  Landowners such as the ICLT that wanted to build affordable, below-market housing couldn’t get a property tax exemption until a project was underway, and county tax assessors interpreted that requirement to mean anything from shovels in the ground to tenants moving in.  In the case of Salerno in Irvine, where vacant land is assessed at approximately $4 million an acre, taxes on the land amounted to $275,000, which had to be paid before the project could be constructed.

Under the new law, property tax rates will be lower at the outset for below-market rate, affordable housing, making it much more practical to build more housing for more people in need.

Our next affordable housing community is 68 owner-occupied townhomes on Native Spring alongside the 133 toll road.  The ILCLT  has been under contract to buy the land from the city for four and a half years, but has held off closing escrow until the new legislation is in place, saving an estimated $600,000 in property taxes.  Now we are able to move forward immediately on this innovative and exciting project in affordable home ownership!

Learn more about the Irvine Community Land Trust at our website HERE.

You can read our ICLT Newsletter HERE.

In May 2019, the Irvine Community Land Trust was awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations. Read about it HERE.

Join Me on Thurs., September 19 at 10:00 a.m. for the Groundbreaking for Salerno — the Irvine Community Land Trust’s Newest Affordable Housing Community!

In 2018, I was elected to serve as Chair of the Irvine Community Land Trust, (ICLT) guiding its mission of providing secure, high-quality affordable housing for the benefit of income-eligible families.  Like all Irvine Community Land Trust Board Members, I serve as a volunteer, without compensation. 

We build high-quality affordable rental, ownership and special needs housing for the benefit of income-eligible families. Located in the heart of Southern California’s one of the most expensive real estate markets, there is a tremendous need for affordable housing.

Because this is our home, too, the we are committed to ensuring that Irvine is a place where everyone can call “home.”

On Thursday, Sept. 19, at 10:00 a.m., we’ll be hosting a groundbreaking ceremony for our latest project — the 80-unit Salerno.

You are invited to attend!

On schedule to be completed in the Fall of 2020, Salerno will offer affordable rents as low as $550 for a one-bedroom, $625 for a two-bedroom and $695 for a three-bedroom.

Thirty-five of the homes will be reserved for those earning less than 30 percent of the area median income: 15 for veterans; 10 for individuals with developmental disabilities; and 10 for families at risk of homelessness.

Like all ICLT homes, qualifying residents must register on our Interest List: www.irvineclt.org/interest-list.

Please know that parking will be limited, so come early!

I hope to see you there!

You can read our ICLT Newsletter HERE.

In 2019, ICLT was awarded the Platinum Seal of Transparency from GuideStar, the world’s most respected source of information on nonprofit organizations

 

 

 

Irvine Community Land Trust Earns Highest Award for Transparency!

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

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

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

Nonprofit organizations like the Irvine Community Land Trust that work to create more affordable housing are often under attack from NIMBY groups.  That’s one of the reasons why I’m so delighted to see that GuideStar, a universally well-respected and objective organization, has officially recognized the commitment to openness of the Irvine Community Land Trust with their highest award for transparency!

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

 

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

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

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

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

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

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

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

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

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

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

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

 

I’m Attending the 2019 Housing California Conference as Chair of the Irvine Community Land Trust, Working with Experts, Legislators, and Community Advocates to find Practical Solutions to California’s Housing and Homelessness Crisis.

I’m in Sacramento for the next three days lobbying for housing and attending the 2019 Housing California Conference as Chair of the Irvine Community Land Trust.

Housing California is the “voice in the state Capitol for children, seniors, families, people experiencing homelessness,and everyone who needs a safe, stable, affordable place to call home.”

Irvine City Councilmember Melissa Fox with Kelsey Brewer of Jamboree Housing Corporation at the 2019 Housing California Conference.

The vision of the Housing California is creating “a California in which no one is homeless and everyone can afford a safe, stable place to call home in a healthy and vibrant community.”

The Housing California Annual Conference started in 1979 with a small gathering across the street from the State Capitol, and has since grown into the largest and most diverse affordable housing and homelessness conference in the country.

The 2019 Housing California Conference focuses on the most crucial issues for housing in our state, including legislative, electoral, administrative, and budgetary policy strategy and solutions pertaining to affordable housing and homelessness; supportive housing, rapid re-housing, emergency responses, and bridge housing; affordable housing development including construction, design and entitlement, sustainable practices, and development innovations; affordable housing finance and asset management; and diversity, equity, and inclusion.

Housing is truly the issue of our time in California, and helping to create more affordable and attainable housing, especially for seniors, young families, veterans, and people with disabilities, has been an important focus of my career as a public official.

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.  

I am excited to learn and share ideas, and to work with experts, legislators, and community advocates to find practical solutions to California’s housing and homelessness crisis.

I will keep you posted!

 

You Can Make a Difference: Volunteers Needed for “Point in Time” Count of People Experiencing Homelessness in South Orange County!

You can make a difference for people in need in South Orange County!

I have just learned that the Point in Time count of people experiencing homelessness in our area (South Orange County) is critically short of volunteers. 

The Point In Time is a biennial count of people experiencing homelessness on a given point in time during the last ten days in January.

The count provides vital information that helps the County better understand homelessness in the community and guides the way the County and its partners respond to homelessness in Orange County.

Orange County will be conducting the 2019 Point In Time count on Wednesday, January 23 and Thursday, January 24, 2019.

Please consider volunteering for this important community humanitarian effort!

Volunteers are needed in the following roles for a successful effort: Team Captains, Field Surveyors, Deployment Center Support, Videographers and Photographers. Volunteer opportunities are available in the early morning and late evening.

Sign up to volunteer and help shape homelessness services in Orange County!

Registering to volunteer will take less than 5 minutes.

Training will be provided!

Click to sign up today!