Affordable Housing Reported Ahead of Goals

Production of affordable housing in unincorporated areas of Orange County is running ahead of the goals set by the Board of Supervisors, a county report issued Tuesday says.

The report, prepared by the county administrative office, said that between July, 1983, and January, 1986, 71% of the 9,371 residential dwelling units added in unincorporated county territory were “affordable,” far above the county goal of 25%.

Although the percentage of affordable units dropped in 1985, it nevertheless was approximately double the county’s target, the report said.

In 1979, the county began requiring developers of tracts of more than 30 houses or apartments to make 25% of their new units affordable--that is, 10% of them priced so people earning up to 80% of the county’s median income could afford them, another 10% affordable to those earning up to 100% of the median income and 5% to those earning up to 120% of the median income.

The latest county report estimates the median income in Orange County at more than $41,000 a year.

In 1983, the supervisors began a three-year phase-out of the program. Developments approved while the rules were in effect, such as Aliso Viejo and Rancho Santa Margarita, are still required to provide affordable units as they continue to add developments.

Since last July, new developments are urged, but not required, to price 25% of their units in the affordable category.

Supervisor Roger R. Stanton, a foe of the mandatory program, said the report should end “the absurd, counter-productive, double-think criticism” that supervisors have received from critics saying that they are not doing enough to provide affordable housing.

Supervisor Bruce Nestande said the figures showed that “developers are simply responding to the demand in the marketplace,” that people are refusing to pay high prices for new homes on large plots of property.

Last June, the county scaled back its goals for new housing production in the unincorporated areas amid forecasts that the economy might not perform as well in the near future as it had in recent years when interest rates dropped dramatically.

Instead of the target of 29,900 units set earlier, the new goal became 22,638 units, including houses and apartments, single-family residences and condominiums.