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Here are four specific suggestions on how local
governments can help ensure the production of more
affordable housing, housing that can be afforded by
persons with average and below average incomes. The
Mayors‚ Ad Hoc Committee received over one
hundred suggestions, and many of them are good.
LandWatch will continue to work and advocate for
strong affordable housing policies.
Inclusionary Housing
Ordinance
Each city (and the county government) should
adopt a "common form" inclusionary ordinance, so
that all new residential development within the
county will have to meet common inclusionary
standards. The inclusionary ordinance should
require all of the following with respect to new
residential developments carried out within the
jurisdiction:
1. For new residential construction,
actual construction (no in lieu fees) of
affordable housing units will be required, and
the inclusionary units will be included within
the new development (no offsite substitutes).
2. For new residential subdivisions, each
inclusionary lot will be deed restricted, and
initial ownership will be in the local
government, or in a nonprofit housing developer
(CHISPA, the Housing Authority, etc.) selected
by the local government. No offsite exchanges
will be permitted.
3. 20% of total units/lots in each new
development to be inclusionary.
4. Inclusionary units to be substantially the
same in quality and appearance as
non-inclusionary or market rate units.
5. Inclusionary units to be sold to qualified
purchasers (persons with average or below
average incomes within that jurisdiction) at a
price that a person with an average or below
average income in that jurisdiction can afford,
measured by 30% of the person's gross
income.
6. Each affordable unit shall be sold with a
recorded resale covenant that will require
permanent affordability, by mandating resale to
a qualified purchaser who has an average or
below average income within the
jurisdiction.
7. Inclusionary requirement to apply to all
residential developments or residential
subdivisions of five or more units or new
subdivided lots. Developers of fewer than five
will pay a proportional in-lieu fee.
Mixed Use / Affordable
Housing Requirement
Each city (and the county government) should
adopt a "common form" ordinance requiring
affordable housing to be included within, or
constructed concurrently with, each new commercial
development occurring within the jurisdiction. The
"common form" ordinance is needed so that all new
commercial developments within the county will have
to meet common standards. The inclusionary Mixed
Use/Affordable Housing ordinance should require all
of the following with respect to new commercial
developments carried out within the
jurisdiction:
1. Requirement applied to all new
commercial construction.
2. Requirement is for at least one affordable
unit to be constructed and permanently
restricted for resale to persons with average or
below average incomes within the jurisdiction
for each *** of square feet of commercial
construction.*
3. Onsite mixed use inclusion of affordable
housing shall be preferred. Where such onsite
provision of the required housing units would
not be appropriate, actual construction of the
required new units prior to or concurrently with
the commercial construction shall be
required.
4. Commercial developments of less than the
minimum square feet shall pay a proportional in
lieu fee.
* Square footage requirement
to be set to tie a specified ratio of employee
demand generated by the new commercial
development to the number of affordable units to
be provided. Ordinance should allow increased
mixed-use residential requirement when
conditions are particularly suitable to include
affordable housing units within the proposed
commercial development.
Local Government
Coordination For Affordable Housing
1. Each local government within
Monterey County to adopt a common policy on the
provision of affordable housing, establishing
the need to produce such housing as a high
priority goal for the jurisdiction.
2. Policy to include the following:
a. Commitment to a cooperative
approach with all other local governments.
b. Monthly agenda review by the local
government on progress made in that
jurisdiction, and in others within Monterey
County, on accomplishing affordable housing
goals.
c. Common measurements to be adopted as
part of the policy, so that all jurisdictions
begin using common method to track need and
accomplishments.
d. Funding for fulltime affordable housing
coordinator, to propose and implement action
items to accomplish affordable housing goals.
Smaller jurisdictions to commit to joint
funding of affordable housing
coordinator.
e. Initial workplan to consist of
implementation of recommendations of Mayors'
Ad Hoc Committee.
Permanent
Affordability Requirements
Introduction:
It is critically important not only that
"affordable" housing be initially produced, but
also that housing affordability be maintained over
time. Housing constructed to meet the needs of
average and below average income persons should be
maintained as permanently affordable for such
persons. This can be accomplished by requiring that
the initial sale of an "affordable unit" include
the recording of an "affordability covenant," as a
deed restriction requiring that the affordable
housing unit be sold, on resale, to a qualified
purchaser who has an average or below average
income at the time of resale. Thus, although
housing costs will most likely rise over time, the
units covered by affordability covenants will
continue to be available, at the time of resale, to
persons who have average or below average incomes.
This technique of providing "permanent
affordability" for housing units produced to meet
the needs of average and below average income
persons will "buffer" the local housing market
against escalating housing costs, and will help
maintain an inventory of housing permanently
available to persons with average and below average
incomes. The effects of such a program are not
immediate&emdash;but are of immense long-term
significance.
The specific
suggestion:
All local jurisdictions should adopt a "common
form" deed restriction, to achieve permanent
affordability for housing units produced (through
any program) for persons with average or below
average incomes. This affordability covenant deed
restriction should be recorded as a requirement for
any housing produced to meet the needs of persons
with average or below average incomes. The various
local governments should seek to use a common
methodology and organization to provide for the
ongoing qualification of persons whose income meets
the average or below average income definition
utilized by the local governments. This will reduce
administrative costs, and will allow for the
maintenance of an up to date and integrated list of
qualified persons who would like to purchase an
affordable housing unit, when such become available
after initial construction, or on resale. (The
Housing Authority of Monterey County is certainly
an existing agency that might operate such a
program, on behalf of all participating local
governments.)
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