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HomeMy WebLinkAbout6/16/2020 Item 11--Received after 6PM, Hatcher Clerk, Intern From:Lindy < PM To:CityClerk Cc:Jim Moresco; 'Walters, Tim J.' Subject:6-16-2020 Agenda Item #11 - HBACC Response to All Electric Homes Attachments:HBA Response to Proposed Building Electrification - 6-16-2020 Final.pdf Dear City Clerk, Please submit this email for tonight’s Agenda Item #11. Honorable Mayor Harmon and City Council Members, The Home Builders Association of the Central Coast (HBACC) supports all sustainable energy measures used for housing but opposes single-source energy mandates. While we appreciate the city’s efforts on the new energy reach codes and working with Monterey Bay who guarantees all power from renewable sources, we ask that you slow the process and consider that an “all electric” program will add to the direct cost of housing. Increasing the cost of housing is counterproductive to the city’s efforts to provide more housing that is affordable. We ask you to consider the following ramifications: 1) Additional Expense. We are just coming off $10,000 per home solar mandates in 2019 and roughly $18,000 over the past 10 years. New VMT tax starting July 1, 2020, will also add an estimated minimum $40,000 to the price of a house. With impending VMTs next month, now is not the time for additional mandates resulting in higher priced housing, while much effort is expended on making housing more affordable. 2) We are in the midst of the COVID-19 pandemic and economic crisis resulting from sheltering in place. This is not the time to compound expenses on housing in our city. This effort could further exclude minorities from living in SLO with increased home prices. You already have builders lined up to produce all-electric homes to get their plans finalized. Why not use them as a pilot project and let the market decide. What happens if those houses do not sell and the builders and developers are stuck holding them? 3) We favor incentives or “carrots” over sticks. Promoting incentives for voluntary increased electrification in new homes and apartments while studying outcomes of building electrification allows gradual transformation and affords the market time to evolve. We ask you to use the current housing being created all-electric as a pilot project to make sure these all-electric homes actually sell. We suggest the city consider offering a combination of the following to help offset expenses: fee credits, up-zoning and diversity bonuses, parking restrictions, and a decrease in strict building percentages of KS/Hour, or offset property taxes. Expenses and risks need to be quantified and taken into consideration prior to moving forward with mandates for building electrification. While the intent is honorable, the potential outcomes and unintended consequences will be expensive to homeowners, renters, builders, and developers. Thank you for hearing, and more importantly, considering our concerns. Lindy Hatcher, Executive Director, Home Builders Association of the Central Coast --- Lindy Hatcher, MSA, CGS Executive Director Home Builders Association of the Central Coast PO Box 748 / San Luis Obispo, CA 93406-0748 O: 805-546-0418 / C: 406-750-7682 https://www.hbacc.org Members can save thousands through the NAHB Member Savings Program 1 P.O. Box 748 San Luis Obispo, California 93406 phone: 805.546.0418 www.hbacc.org An Affiliate of the National Association of Home Builders and the California Building Industry Association Emailed June 16, 2020 Mayor Harmon and City Council Members San Luis Obispo, 990 Palm Street, San Luis Obispo, CA 93401 Honorable Mayor Harmon and City Council Members, The Home Builders Association of the Central Coast (HBACC) supports all sustainable energy measures used for housing but opposes single-source energy mandates. While we appreciate the city’s efforts on the new energy reach codes and working with Monterey Bay who guarantees all power from renewable sources, we ask that you slow the process and consider that an “all electric” program will add to the direct cost of housing. Increasing the cost of housing is counterproductive to the city’s efforts to provide more housing that is affordable. We ask you to consider the following ramifications: 1) Additional Expense. We are just coming off $10,000 per home solar mandates in 2019 and roughly $18,000 over the past 10 years. New VMT tax starting July 1, 2020, will also add an estimated minimum $40,000 to the price of a house. With impending VMTs next month, now is not the time for additional mandates resulting in higher priced housing, while much effort is expended on making housing more affordable. 2) We are in the midst of the COVID-19 pandemic and economic crisis resulting from sheltering in place. This is not the time to compound expenses on housing in our city. This effort could further exclude minorities from living in SLO with increased home prices. You already have builders lined up to produce all-electric homes to get their plans finalized. Why not use them as a pilot project and let the market decide. What happens if those houses do not sell and the builders and developers are stuck holding them? 3) We favor incentives or “carrots” over sticks. Promoting incentives for voluntary increased electrification in new homes and apartments while studying outcomes of building electrification allows gradual transformation and affords the market time to evolve. We ask you to use the current housing being created all-electric as a pilot project to make sure these all-electric homes actually sell. We suggest the city consider offering a combination of the following to help offset expenses: fee credits, up-zoning and diversity bonuses, parking restrictions, and a decrease in strict building percentages of KS/Hour, or offset property taxes. Expenses and risks need to be quantified and taken into consideration prior to moving forward with mandates for building electrification. While the intent is honorable, the potential outcomes and unintended consequences will be expensive to homeowners, renters, builders, and developers. Thank you for hearing, and more importantly, considering our concerns. Respectfully, Lindy Hatcher, Executive Director, Home Builders Association of the Central Coast