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Building Industry Association of Southern California, Inc <br />ORANGE COUNTY CHAPTER <br />May 5, 2020 <br />Mayor Miguel Pulido <br />Santa Ana City Council <br />20 Civic Center Plaza <br />Santa Ana, CA 92701 <br />Re: Item #8513 —Housing Opportunity Ordinance <br />Dear Mayor and City Council Members: <br />On behalf of our membership, I write to express our concern with expanding <br />the Housing Opportunity Ordinance — otherwise known as Inclusionary <br />Zoning (IZ). Further, we do support any effort to lessen the fee burden, <br />and find ways of incentivizing housing in the City of Santa Ana. <br />The Building Industry Association of Southern California, Orange County <br />Chapter (B1A/OC) is a non-profit trade association of over 1,100 member <br />companies employing over 100,000 people in the home building industry. <br />Housing remains a critical issue in California with the situation growing more <br />serious with each passing day. Studies show that the State needs over 180,000 <br />new units each year and at best we are producing 80,000. This has caused a <br />cascading spike in home prices across the region. This crisis is now exacerbated <br />due to the recent COVID-19 pandemic and the recent orders to shelter in place. <br />With this ever-growing deficit, we need to have an honest conversation about <br />Inclusionary Zoning Policies. In total, such policies restrain housing <br />production, increase ownership costs and further complicate attainability for the <br />majority of the region. <br />In a study by Benjamin Powell, Ph.D. and Edward Stringham, Ph.D., titled, <br />Housing Supply and Affordability: Do Affordable Housing Mandates Work?, the <br />authors discovered that in the 45 cities where data was available, new housing <br />production drastically decreased by an average of 3 1 % within one year of <br />adopting inclusionary housing policies. Additionally, the study suggests that <br />inclusionary housing polices can increase new housing costs by $22,000 to <br />$44,000, with higher priced markets increasing by $100,000.' <br />Supporting these conclusions is a recent report from the Legislative Analyst's <br />Office titled Perspectives on Helping Low -Income Californians Afford Housing. <br />In this report, it states that "attempting to address the state's affordability <br />challenges primarily through expansion of government programs likely would be <br />impractical." Further, that "extending housing assistance to low-income <br />Californians who currently do not receive it — either though subsidies for <br />Powell, Benjamin, Ph.D. and Stringham, Edward, Ph.D. Housing Supply and Affordability: Do Affordable Housing <br />Mandates Work? Reason Public Policy Institute. April 2004. <br />PRESIDENT <br />SUNTI KUMJIM <br />MBK RENTAL LIVING <br />VICE PRESIDENT <br />ERIC NELSON <br />TRUMARK HOMES <br />TREASURER <br />BROOKE DO[ <br />SHEA HOMES <br />SECRETARY <br />NICOLE MURRAY <br />TAYLOR MORRISON <br />IMMEDIATE PAST PRESIDENT <br />RICK WOOD <br />TRI POINTE HOMES <br />TRADE CONTRACTOR V.P. <br />ALAN BOUDREAU <br />BOUDREAU PIPELINE <br />CORPORATION <br />ASSOCIATE VICE PRESIDENT <br />MARK HIMMELSTEIN <br />NEWMEYER & DILLION, LLP <br />MEMBER -AT -LARGE <br />PETER VANEK <br />INTEGRAL COMMUNITIES <br />MEMBER -AT -LARGE <br />SEAN MATSLER <br />COX CASTLE & NICHOLSON, LLP <br />EXECUTIVE OFFICER <br />STEVE LA MOTTE <br />