City Must Address Dearth of Low-Cost Housing : Determination by Council to Make Tough Decisions, Enticements to Builders Are Ingredients of a Solution

Last week, thousands of San Diegans in desperate need of affordable housing received a double dose of troubling news. On Monday, the City Council put on hold an effort to require inclusion of affordable housing in residential developments. On Tuesday, a national study revealed that nine out of 10 poor households in San Diego County pay more than they can afford for rent. That was the third worst income-to-rent ratio in the nation.

Neither bit of news was a surprise. The acute shortage of affordable housing in one of America’s priciest housing markets is as obvious as the 18,000 names on the city’s waiting list for subsidized housing. And the council’s ambivalence about addressing the problem is clearly reflected in its underfunding of the Housing Trust Fund.

The trust fund, established just two years ago, was hailed as landmark legislation. Then-City Councilman Wes Pratt rightfully hailed the fund as “one of the most important steps in the history of housing in San Diego.” But, since then, all the steps have been backward.

The bulk of revenue to support the fund was to come from developer fees. But, with development dead in the water, early promises of a million dollars a month from that source proved to be far too optimistic. The fund is operating on a $3.2-million budget.

But, if the effort to provide affordable housing has slowed, the need hasn’t. The study conducted by the nonprofit Center on Budget and Policy Priorities found that 93% of low-income renters in the San Diego metropolitan area paid more than 30% of their income for housing in 1987. And 82% spent at least 50% of their income to keep a roof over their heads.

Housing advocates say that, if anything, the problem has worsened during the recession, though in some areas rents are down somewhat because of lower property values.

It’s unlikely that the cash-strapped city will pump large amounts of new money into the trust fund anytime soon. But why not require developers to set aside a modest number of the residences to be made affordable for the poor? After all, the concept of inclusionary housing is already in the city’s General Plan.

As always, the devil is in the details. The council must find a balance between onerous requirements that could further stall housing development and policies that offer too much government assistance to entice developers to do the right thing.

Appropriate enticements include reforming zoning codes, deferring development fees and offering density bonuses. Low-interest loans and tax-exempt financing also could be on the bargaining table.

But the most important thing at the table must be determination. One way or another, San Diego’s shortage of affordable housing must be addressed. That will only happen when the City Council summons the courage to make some tough decisions.