MAY 17, 2019
Perpetuating the Housing Emergency is a steady increase of fees and regulatory hurdles targeting the residential building process. One of the more challenging regulations are inclusionary zoning policies. In its broadest sense, inclusionary zoning (IZ) requires housing developers to sell or rent a percentage of their units below market rate. It is extremely difficult to adequately offset the IZ financial burden with equal benefits to homebuilders. If adequate offsets are not provided, the biggest population that stands to lose from an IZ ordinance are the "missing middle"; middle income earners, teachers, firefighters and other hard working families and individuals. IZ policies can expand the missing middle housing gap even further.
Additionally, when a municipality imposes inclusionary zoning costs on housing that are not sufficiently offset, the rate of new homebuilding will ultimately decrease. Lack of new construction results in increased competition for homes, chokes off housing choices, inflates prices, and overall results in reduced affordability. We offer solutions to IZ in our Housing Emergency Response Kit (HERK) page titled: Inclusionary Zoning .

Click here for HERK web page
Click here for Inclusionary Zoning page
Click here for the Missing Middle Page
"Inclusionary Zoning is only workable when it makes financial sense – otherwise it’s just an un-absorbable cost to building and therefore won’t work to produce affordable units. Applying a voluntary, incentive-based process for builders to offset the costs that it takes to build subsidized units is the right approach for an IZ policy.

Also for consideration, granny flats and accessory dwelling units can provide a healthy supply of affordable units - and they don’t require excessive regulation or cost burdens."

--Scott Ouellette, Williams Homes

Learn more about Inclusionary Zoning in the HERK sheet titled Inclusionary Zoning .
Early this year, KB Home finished construction on Vista Pointe in Los Angeles. The 56 two-story detached homes are available in two different floor plans, with up to four bedrooms and two-and-a-half baths. Vista Pointe feature desirable design characteristics like low-maintenance yards, walk-in closets and two-car garages. This gated community, which includes a tot lot, and park and picnic area, is located near Interstates 105, 405 and 110 for convenient access to downtown Los Angeles, Silicon Beach and the South Bay. Learn more about KB and Vista Pointe here .
The Los Angeles County Board of Supervisors will be hearing the Significant Ecological Areas (SEA) Ordinance on Tuesday - May 28th . Linked below is the latest draft ordinance, and BIA’s February Opposition Letter. Thanks to your feedback, some issues, like an exemption for the Antelope Valley Area Plan, have been adopted. Our other recommendations have yet to be addressed, and some new issues have emerged in the latest draft. We are working on an updated letter, so please send your comments to BIA-LAV Director of Government Affairs, Diana Coronado .
Document Links:
City of Glendale: BIA-LAV worked with the City of Glendale to ensure that their inclusionary zoning policy exempted for-sale housing and projects already in the pipeline, increased unit applicability threshold, and provided extra incentives. Read our letter here .  
 City of Pasadena: The Council is reviewing ways to increase inclusionary in-lieu fees and the inclusionary percentage. BIA-LAV is working to meet with City staff and stakeholders to convey our industry concerns and alternative options to meeting affordability production. The item will be reviewed in June.
City of Long Beach: BIA attended the City's inclusionary zoning stakeholder meeting, and testified at Council to convey the IZ policy views of our members. The City has been briefing the public on affordable housing and inclusionary policies. The City is still conducting a feasibility study and will have a draft ordinance for review by Summer of 2019.  
City of Los Angeles: Councilman Gil Cedillo made a motion seeking recommendations on equitable distribution of affordable housing with incentives and mandates including inclusionary housing options. BIA-LAV is working with CD1 to address industry concerns with this potential policy. 
County of Los Angeles: BIA members discussed the draft principles of the County's Inclusionary Zoning Ordinance with the County Regional Planning staff. Our members shared their feedback and concerns related to its effects on the missing middle income earners, and overall housing production. A full draft will be released at the end of Summer, click here for guidelines.

Learn more about Inclusionary Zoning in the HERK sheet titled Inclusionary Zoning .
California bill to add more housing in single-family neighborhoods blocked by lawmakers ( LA Times )
“We need to do things differently when it comes to housing,” Wiener said in a statement following the decision. “We’re either serious about solving this crisis, or we aren’t. At some point, we will need to make the hard political choices necessary for California to have a bright housing future.”
Stop using California's environmental laws to block homeless housing ( LA Times )

Home builder confidence hits a 7 month high in May as housing market headwinds ease ( Market Watch )
Togawa Smith Martin, Inc. (TSM) is a prominent force in the field of multi-family residential and mixed-use retail/residential architectural design. Located in Downtown Los Angeles, and with many of the nation’s premier developers and public housing agencies among its clients, TSM has designed over 40,000 housing units throughout the Western United States. Acclaimed for its unique ability to blend sensitive design with thoughtfully composed and cost effective planning, TSM has been recognized with numerous design awards from professional and governmental organizations. Learn more here .
Southern Californians can now get $2 for every square foot of thirsty grass they replace with more water efficient sustainable landscaping, up to $10,000. Metropolitan Water District of Southern California launched its new turf replacement program in April, doubling its rebate and approving other changes to make it easier to participate. For more information and to apply, visit .  

Do you want to be featured as a Standout Social Media Member?! Use the links below to connect and engage with us on social media. You'll receive updated information and the latest news related to the BIA and the building industry. Click on the second row to share this newsletter with friends!