Commission re-hears inclusionary housing, Aliso Creek Plaza coffee shop, more
By SARA HALL
The Planning Commission re-heard several items at their meeting last week after audio problems at last month’s meeting prevented online speakers from being able to voice their opinions.
Due to technical issues, public commenters on Zoom could not be heard by the commission at the October 18 meeting and so staff re-agendized a few items for the November 15 meeting. Most of the items were approved without much discussion, commissioners generally summarized their previous comments, although the presentation on a draft inclusionary housing policy prompted some new dialogue.
During the October 18 review, officials grappled with balancing how to encourage realistic housing development while also tackling affordability.
The proposed amendment would modify the city’s zoning ordinance and general plan housing element. The aim is to update and clarify the policy and, specifically, reduce the constraint on housing development. It’s part of a larger set of housing-related ordinances that will return to the commission at a later date for consideration and recommendation to the City Council.
Housing Program Coordinator Jennifer Savage echoed her presentation from the October 18 meeting, which focused on the proposed policy’s applicability, requirements and allowed alternatives.
Commissioner Jorg Dubin reiterated his comment about a possible fund or subsidy or grant program set up by the city to house the in-lieu fees to be used by low-income residents.
“I think we’re going to see a good percentage of re-development or new development of housing that a lot of developers will probably choose the in-lieu fee and I was thinking about how that could be directed towards either a subsidy program or a grant program for low-income folks or people who would like to live in town to offset (the cost of) market rate housing,” he said.
That is absolutely something that staff can explore, Savage answered.
Current code clarifies the uses allowed for the fees, which include a variety of projects, including the ideas mentioned by commissioners. The proposed ordinance copies some of that language, she added, and adds that the collected fees could be used for city staff time to conduct periodic inspections to ensure that the constructed inclusionary housing units comply with the affordable housing agreement, site plan and covenants, as well as the inclusionary housing plan, and all other city and zoning requirements.
Savage also noted that the 2022 schedule for in-lieu fees were based off of a study the city did in 2009. The fees hadn’t been updated since then, even though they’re supposed to be reviewed annually, she added. However, staff conducted an update in August and, largely based on the increase in land value, the in-lieu fees are now substantially more than the previous rates. The new in-lieu fees are approximately $1.29 million for every affordable unit that would have been for sale and $1.03 million for every affordable unit that would have been for rent, compared to the previous rates of $348,197 and $247,317, respectively.
If the goal is to try and make it affordable for people to live in Laguna Beach, perhaps the most effective way to do it is through a funding program, added Commissioner Steve Goldman, as opposed to providing sporadic units throughout town, which developers are not incentivized to build anyway. They would rather pay the in-lieu fee because it’s capitalized as part of the project, he explained, and not an ongoing operating expense or an ongoing lower revenue.
Some commissioners asked about other affordable housing projects in the city. They asked to find out more about how they were initiated, city involvement, funding requirements and other details.
Alice Court and Mermaid Terrace are examples of affordable housing developments that fit comfortably in Laguna Beach, noted Commissioner Susan McLintock Whitin.
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