COMMENTARY ON REAL ESTATE : Fighting O.C.’s Double Whammy Against Low-Cost Housing : A maze of federal, state and local barriers increase the cost of new construction. But a plan of attack is suggested.
A little-noticed national report, “Not in My Backyard: Removing Barriers to Affordable Housing,” clearly spells out why it has become nearly impossible for many Americans to buy a home.
Recently released by a commission formed by HUD Secretary Jack Kemp, the federal report describes an appalling maze of federal, state and local barriers that increase the cost of new construction.
To young families and low- and middle-income workers who aspire to the American dream of owning a home, excessive and unnecessary government regulations can dash their hopes forever. Nowhere is this a greater tragedy than in Orange County.
Here, prospective home buyers face a double whammy: Orange County, which already has some of the most expensive land costs in the nation, now has the dubious honor of having the highest government permit fees--$20,000 to $30,000 for the average new home.
These fees are not all tied to providing such services as water, sewers and roads; increasingly, excessive fees are charged for simple permits and approvals, and many duplicative fees are charged by the various local government agencies.
In many cases, excessive fees are the result of the NIMBY (Not in My Backyard) syndrome, where communities resist affordable housing because they fear that it will result in lower property values, too much density and a further burden on roads and schools.
But this resistance to affordable housing has created a marketplace in which just 15% of county residents can afford to buy a new, median-priced home.
Despite this restriction, there has been some progress. In Orange County, residential builders are focusing on meeting the strong demand for moderately priced homes. Prices of less than $250,000 in highly desirable areas of Orange County are not uncommon, and many builders are developing alternative housing solutions, such as low-cost, single-room-occupancy residences.
Sheer will and hard work by a determined partnership of the public and private sectors have resulted in some noteworthy examples of what can be done in Orange County. These include: Midway Meadows (Shawntana Development/county) for low-income seniors in Midway City; the Don Roth Family Shelter (the Building Industry Assn.’s HomeAid program/the Presley Co./county) for transitional homeless families in Orange, and the Brookhollow Apartments (William Lyon Co./Anaheim), for low-income families in Anaheim.
These successful projects represent coordinated actions by local government officials and the private sector to accelerate permit approvals, waive certain fees and parking requirements, coordinate building department activities and involve the affected communities in project planning. Working with the county to allow higher densities has resulted in affordable homeownership opportunities in projects such as Seagate Colony (Kathryn G. Thompson Development Co.) and Rancho Santa Margarita (the Santa Margarita Co.).
Much more can and should be done to ensure a steady flow of affordable housing.
The Kemp Commission has compiled 31 recommendations for action by the government and by the private sector, including:
* Eliminating unnecessary or redundant regulations.
* Eliminating discrimination against certain types of affordable housing, such as multifamily units.
* Providing state financing incentives.
* Involving private industry with state and local government housing authorities in developing uniform codes and standards.
* Setting state and local goals for the creation of affordable housing.
The question is, now that these recommendations have been set forth, will they ever be implemented?
Since 1967, 10 separate national panels have studied how to increase the supply of affordable housing. Yet these reports have largely gathered dust, while the maze of barriers at every level of government grows larger and more impenetrable every year.
In the meantime, our economy and quality of life have suffered. People are forced to seek housing in communities far from their jobs, and end up spending long hours on the freeways instead of with their families.
Employers worry about a diminishing pool of local workers, and some decide to move their operations out of state.
Perhaps the most important outcome of the report will be to wake up local communities to realize that their economic health is tied to the production of affordable housing.
The Kemp Commission has shown us a clear and detailed path to follow. Its recommendations are practical and sound. It stresses the need for coalition building at local levels, including realtors, bankers, builders, public sector officials and residents.
We need leadership at all levels of government to make affordable housing a priority. The private sector is willing and able to supply a variety of popular, affordable products. Let’s not delay longer, for the sake of families who need affordable housing.
