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A Win for Our Members
Nearly two months ago, a roofing company member came to DVBA with a concern that they believed a local city was charging them permit fees excessively.
The situation was unique for DVBA as we don’t normally consider what happens in remodeling and rehabilitation of multi-family units. Remodeling is an arena that the Desert Valleys Builders Association and the National Association of Home Builders support. In fact, there are programs and educational opportunities provided by NAHB, which is part of your DVBA membership.
The City of Palm Springs went to a new provider for its permit processing at the first of the year. This created significant changes in permitting re-roofing projects, especially for condominium complexes and their HOAs. The program required that each individual unit be charged a Building Permit Issuance Fee, instead of just one for the structure’s contiguous roof shared by as few as two, to more than ten units. This impacts the costs charged to that community. It threatens the ability of these HOAs to maintain safe housing for these communities, who will put off rehabilitating these homes until enough funds are available. It becomes an apparent health and safety issue.
The City, and its department heads and staff, worked with the roofing companies, HOAs, and the DVBA to successfully resolve the situation. The plan is being implemented immediately. It takes courage for these companies to calmly and logically bring problems to a city. The City was gracious in their multiple meetings and numerous communications with all involved.
An Annual Report Issue
The City of Coachella brought an Annual Development Impact Fee Report to City Council last week. The week before, I had called the city asking if they had created this report, and if they had published it, and if the city council had adopted it. The report was late. It was due by the end of December. We were advised that the report would be presented to the city council in seven or eight days. We reminded them of the 15-day requirement to provide us this report for review prior to being presented to the city for adoption. We received the report, reviewed it, and submitted several pages of comments. The Annual Report did not meet the Legislative requirements of the Mitigation Fee Act.
The city council meeting was Wednesday. Prior to the council getting seated on the dais, Mayor Frank Figueroa greeted me and stated that the action to adopt the report had been pulled from the Consent Agenda. He told me and then the audience that this item would return to the city council agenda on September 9th. From the podium, I thanked them for pulling the item and providing city staff and DVBA the opportunity to work together to build a better, appropriate report and template for future reports. The Finance Manager and I were able to plan for these working sessions as I exited the meeting.
Another city willing to work with the Desert Valleys Builders Association.
Coachella Valleys Multiple Species Habitat Conservation Plan Local Development Mitigation Plan
The end of the week brought news that a draft fee study for the Local Development Mitigation Fee was ready for DVBA’s review and comments. They want comments in 14 days. This really is not a lot of time to review a document that took a year or more to draft.
This study is designed to establish a “nexus” to providing safe natural habitat to new construction, causing growth that is “assumed” to destroy said habitat. The Coachella Valley Conservation Commission (CVCC), which is comprised of members of the nine city councils, the county supervisor of the 4th district, and tribal councils, is responsible for protecting 27 species in this CVMSHCP. They purchase habitat land from willing sellers and also manage scientific tracking and study of these areas and species.
The DVBA’s job is to ascertain that a “nexus” exists and that fees charged meet an equitable cost threshold.
Boomer Bonanza
Boomers, those currently between 62-80 years old, perhaps surprisingly comprise the largest share of US home buyers at 42%. In part, it's because they (and those over 80) control $110 trillion, or about 60% of all U.S. household wealth. With that money, they are increasingly upsizing their homes by buying bigger ones or financing additions to existing homes. In 2016, 4% upsized; it’s now 7%.
From Elliot Eisenberg – Bowtie Economist www.econ70.com
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