HomeMy WebLinkAbout3/1/2022 Item 6b, Delmartini
Delgado, Adriana
From:del@fix.net
Sent: 2022 1:27 PM
To:E-mail Council Website
Subject:Item #6.b - Inclusionary Housing Update 3-1-22
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Madam Mayor and City Council members
A few thoughts on the HouseKeys Program Administrator on the "for sale" side.
I believe an affordable housing program administrator is overall a step in the right direction. Currently, trying to get
through the process of listing an affordable property could be a rather arduous experience. Having a centralized
information center (so to speak) should be a good thing. I did attend the previous three "sessions" that the
administrator held recently.
I believe the questions asked by Donna Lewis were on point and should be given careful consideration by the council, so
I will not reiterate the same points up.
Regarding the key revenue assumptions based on RedFin sales from December 2020 through December 2021 that
indicated a 2 bedroom home of of 1550 sq. ft. could sell for $840,000.00 may be true, but I'm curious as the where
RedFin obtains its information. Was it through RedFin sales in San Luis Obispo, the local multiple listing service or
through the county recorders office ? Interesting the city didn't include local Realtors for some input on this.
Regarding Table 3: Comparison of the City's current IHO and the Nexis Study's recommendations:
The "for sale in lieu fees" recommended at $25.00 per square (residential) foot seems high to me but I have no idea how
to compare that number to the existing method of 5% of building valuation whether that is in the city or 15% in an
expansion area. Giving an example for comparison would be good.
"Affordable by design" was mentioned. I have never really been a fan of the statement, so I was pleased to see that
noted in the EPS' Feasibility Memo that affordable by design doesn't necessarily create affordability, smaller units in the
current market are not affordable. This really holds true outside of the "affordable" market. The market will set the
price.
Regarding the "commission" as part of the fees, HouseKeys intends to charge customary fees associated with the various
transactions. A six percent commission was stated in the documents as customary. I believe, on average it is less than
that in San Luis Obispo. Please note that stated in a standard listing agreement, in bold print, that by law, real estate
commissions are not a fixed rate and are negotiable.
I believe not separating the fees for "in city" and "in expansion" areas is probably a good idea and using ;per square
foot" methods of establishing fees (if reasonable) appears to be much easier than the current methods.
Regarding the equity share program, and having used that program at the Moylan Terrace development, you need to
understand how that affects the ability to get financing and for the most part those homeowners that do get a portion
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of the equity that may enable them to get out of the affordable cycle and move into to housing that doesn't have
restrictions. I do understand the loss of a unit from the supply side but waiting 45 years+/- doesn't always fit the buyer.
I would be glad to have that conversation with anyone that would care to have discuss it further.
I will stop here for now as I'm aware there will be more opportunity inthe near future to continue the discussion.
Thank you for your time and consideration.
Steve Delmartini
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