HomeMy WebLinkAbout9/19/2017 Item 15, Smith
Christian, Kevin
From:Scott Smith <SSmith@haslo.org>
Sent:Monday, PM
To:E-mail Council Website
Subject:Avila Ranch Sept 19 Council Meeting
Dear City Council Members,
We are writing regarding the Avila Ranch proposal, and to remind you of the profound need
for lower and middle income housing in San Luis Obispo. By way of reference, $45,750 is the
limit for a lower income person, and $69,900 for a moderate income person.
Lack of adequate affordable housing takes its toll on our environment, our economic vitality,
and most importantly, on the lives of those that need the housing. We believe that the
housing proposed in Avila Ranch can play an important role in mitigating San Luis Obispo’s
housing deficit.
Many years and countless hours were spent by a diverse volunteer committee, city staff and
the community at large crafting the City’s updated General Plan. That Plan was ultimately
considered and adopted by City Council in December 2014 after many public hearings. The
Avila Ranch housing proposal goes beyond the public benefit anticipated in the Plan by
offering smaller sized units, striving for net zero energy usage, agreeing to limit home sales to
non-investor owner occupants, and prioritizing sales to folks that live or work in our San Luis
Obispo community.
That being said, there are two project details I wish to bring to your council’s
attention. However, the intent is not to derail the discussion tonight or to delay project
approval:
1) First is the preference to sell homes to local buyers that are non-investor, owner-
occupants.
My comment here actually pertains to both San Luis Ranch and Avila Ranch, as I believe
both have offered similar preferences. We suggest that an administrative oversite plan
be implemented that helps developers realize this objective. Based upon HASLO’s
experience implementing preferences in the sale of our 80 Moylan Terrace homes, we
have learned that some astute buyers can be quite clever in their attempted work
arounds to these this local, owner occupant preferences. I am sure that all agree, it
would be a shame for good intentions not to be realized.
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2) Second, there are two cost related items that pertain to the lower income units that I
would like to bring to your attention:
a) the Community Financing District Fees , and
b) the developer impact fees.
Both of these costs make development of lower income housing difficult. The city
estimate for the Community Finance District fees for the Affordable Units is estimated
at $85 per unit per month, with annual adjustments for inflation. The estimate for the
developer impact fees is $30,000 per low-income unit.
Your staff has done a remarkable job of reducing the CFD fee for the Affordable Units
down to $85 per unit per month, and we thank them for that. Nevertheless, deed
restricted low income housing has never been able to absorb these type of fees and we
remain concerned. If low income units are to be developed and maintained by a
professional affordable housing organization such as HASLO, it will be essential to seek
some sort of additional funding mechanism to offset this cost burden.
In conclusion, we ask the council to keep its eye on the prize tonight, and stay true to your
goal of improving San Luis Obispo housing conditions for low and moderate income
families. Thank you.
Sincerely,
Scott Smith
Executive Director
HASLO
Housing Authority of San Luis Obispo
487 Leff Street
San Luis Obispo, CA 93401
(805)594-5323
Visit our website at www.haslo.org
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