HomeMy WebLinkAbout7/19/2022 Item 7b, Hatcher
Delgado, Adriana
From:lhatcher@hbacc.org
Sent:Tuesday, July 19, 2022 3:02 PM
To:E-mail Council Website
Cc:Lindy Hatcher, HBACC; Jeremy Freund
Subject:July 19, 2022, Agenda Item 7.b
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Dear Mayor Stewart and SLO City Council,
Please accept our comments for July 19, 2022 Agenda item 7.b. We would like to go on record stating your IHO fees are
exceedingly high. In your proposed new Inclusionary Housing Ordinance (IHO), in order to actually produce more
affordable housing, you need large chuck of money from market rate housing projects. Many of our builders will no
longer be able to build in the City as your IHO fees of $25 per square foot makes it financially prohibitive to build market
rate housing. In turn, that means you will receive less funding to produce nonprofit housing. Fees recover costs,
therefore the IHO is a tax on market rate housing to produce affordable housing.
With separate business structures, the for-profit builders do not have the same fund-matching capability to match and
multiply funds to provide affordable housing with less personal company expenditure. We also receive less incentives as
they are predominantly for affordable housing, all electric in affordable housing, etc., compounding the difficulty for us
to build in San Luis Obispo. It feels more like a moratorium on all housing other than affordable and low income.
We ask you to reconsider the high IHO fees. The HBACC is working diligently with others to explore alternative funding
sources in SLO County to help find a more lucrative, broader, community-shared funding source for affordable housing.
Once finished, we will share these alternatives with you in hopes of implementing similar options here and reducing the
IHO fees. We ask you to hold off on implementing IHO fees.
Thank you.
Lindy
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Lindy Hatcher, MSA, CGS
Executive Director
Home Builders Association of the Central Coast
PO Box 748, San Luis Obispo, CA 93406
Mobile: 406-750-7682
www.hbacc.org
Members can save thousands through the NAHB Member Savings Program
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