BREA : City OKs Affordable Housing Ordinance

The City Council has tentatively approved an ordinance that would require developers of 20 or more dwelling units to set aside 10% of those units for affordable housing.

At the same time Tuesday, the council signed an agreement with Habitat for Humanity of Orange County, a nonprofit housing organization, to build a four-unit condominium on city-owned land at the southeast corner of Flower Avenue and Ash Street.

The new ordinance and the agreement with Habitat for Humanity are both intended to boost the city’s stock of affordable housing, officials said.

In the Habitat for Humanity project, two three-bedroom units and two four-bedroom units will be built and sold at $55,000 each, with a 1% down payment and a 20-year, no-interest mortgage to families that earn $26,350 or less a year.

In addition to the down payment, the buyers will be required to perform more than 600 hours of work on the project.

The project will cost the Brea Redevelopment Agency, which is financing the housing project, $291,765. That includes the cost of acquiring the land, on-site improvements and permit fees.

Now in its 15th year, Habitat for Humanity has housing projects in more than 600 towns in more than 35 countries.

According to Habitat for Humanity officials, the organization has developed 53 affordable housing units in Orange County over the past two years. It relies on donations of cash and in-kind or reduced-cost materials, labor and services to keep the prices of the units low.

The affordable housing ordinance is the result of a yearlong city study as well as public hearings conducted by the Planning Commission and discussions with members of the Building Industry Assn.

The ordinance provides that in return for the 10% affordable housing units, developers will receive incentives, such as a so-called “density bonus,” or the ability to build more units than normally allowed by city codes, to offset the cost of the affordable units.

Originally, the ordinance required developers of 10 or more housing units to set aside 10% for affordable housing. After discussions with developers, the city decided that it would only apply to developers of 20 or more units.