City Blocks Use of Bonds for ‘Affordable’ Housing

Under a policy adopted this week, developers seeking to build “affordable” housing will have to do so without benefit of bonds that exempt the projects from property taxes.

Council members said the policy is needed to set uniform standards and protect property-tax funds. The council recently allowed a developer to seek tax-exempt bonds to rehabilitate a housing complex, prompting similar requests from other developers.

All applicants now will be denied unless the council is convinced to ignore the policy. Rejected developers may lobby City Council members, who voted 4 to 1 for the policy, to set a public hearing to reconsider.

“The city of Fullerton is doing its share as far as affordable housing is concerned,” Mayor Don Bankhead said. “I don’t think these tax-exempt bonds really provide affordable housing.”