Affordable housing on council agenda

The city’s Housing and Human Services Committee wants sub-division developers to actually build the affordable housing units required by law.

The City Council will review the recommendation at today’s 6 p.m. meeting. Under the current requirement in the city’s Municipal Code, developers of sub-divisions of three or more units may pay an in-lieu fee rather than must build affordable housing units equal to 25% of the project.

“I am discouraged about the whole prospect of affordable housing in Laguna Beach,” Planning Commissioner Anne Johnson. “What really bothers me is the future hospital, school district and city employees will never again be able to live in town.”

The issue looms large.

A median priced home in Laguna costs about $1.5 million, well beyond the average means. However, city staff is reluctant to require all larger sub-divisions to provide affordable housing, rather than permit each developer to opt to pay the in-lieu fee, Community Development Director John Montgomery said. A “blanket” policy may conflict with the current practice, which allows the City Council to evaluate each project for the provision of affordable units or the payment of the fee.

The fees are considerably less than the cost of construction, not to mention the price of land and Planning Commission is recommending an increase.

Two sizeable sub-division projects are cited as examples by the committee: the Athen Group’s Aliso Creek Redevelopment, which includes the lots formerly known as Driftwood Estates, and the possible development of senior housing by South Coast Medical Center on its property behind the hospital.

“I don’t think a single affordable unit has been built in Laguna for the general population,” committee Chair Michael Gosselin said. “They have all been for special groups.”

In-lieu fees helped subsidize the development of Hagan Place for people living with HIV, Alice Court’s 26, very-low income units, purchase of Friendship Shelter, rent assistance for low income seniors re-located from Treasure Island and the Community Services Youth Shelter program.