Thursday, March 17, 2011

California County Creates Building Incentives

Six years ago, the San Benito County, California Board of Supervisors approved an affordable housing ordinance that required new housing developments to include a certain percentage of affordable units. Unfortunately, the ordinance didn't produce the Board's desired affect. Developers weren't persuaded to include more affordable units in their projects, choosing instead to pay a fee for excluding the below-market-rate units. Now, the Board has approved a new ordinance that it hopes will be more effective.
The new ordinance offers incentives for builders to include affordable units, rather than simply requiring that they be built. Higher density allotments and additional development credits are just two of the benefits offered. In addition, developers will be allowed to build multi-unit complexes in areas currently zoned for single-family residences. Developments that include affordable housing will also be processed quicker, according to the new ordinance.
San Benito County Supervisor Margie Barrios said the new ordinance was needed because the previous, percentage-based, ordinance wasn't working. Developers need to receive some kind of benefit if they're going to include affordable units in their projects. Simply requiring the units to be built, with no incentive or benefit to the developer, is not effective, as proven by the previous housing policy.
Barrios believes the new ordinance contains the right balance of flexibility and structure, meeting the needs of both the community and developers. She hopes it will help the County meet an increased demand for low-income housing. She calls the balance a "new focus and different method for smart growth." More details are available via San Benito County's Housing & Economic Division.

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