Nonprofit Organizations Spared Rent Increase by Irvine Council

Three nonprofit organizations being forced to move from one city building to another were temporarily spared a rent increase by the City Council this week.

While the City Council indicated it will keep lease rates permanently low for Irvine Temporary Housing, the council also agreed a policy is needed to determine when exceptions on fees and rents charged to community organizations are warranted.

Thirteen nonprofit organizations housed in the city’s Multiservice Center will move to the city’s Operations Support Facility by early next year. The city plans to sell the Multiservice Center to cut $65,000 in annual operating losses and avoid the $500,000 cost of earthquake retrofitting and air conditioner repairs.

Of the 13 organizations moving to new city facilities, the council voted to continue current lease rates for Irvine Temporary Housing, the Irvine Children’s Fund, and Human Options. The new lease rate of 30 cents per square foot will be deferred until June 30.

Council members say most of the rent increases are marginal, except for Irvine Temporary Housing which currently pays only 6 cents a square foot.

Councilwoman Paula Werner said it would be “petty” of the city to extract a higher rent from the privately run organization, considering that it provides $2 million in services each year to Irvine residents. Irvine Temporary Housing offers food, counseling and housing for homeless families. Werner and council members also agreed to develop more concrete guidelines on waiving fees and rent increases.

“We’ve been doing it based on who asks us and what we know about the organizations,” Werner said. “We really do need a broader policy.”