Irvine Studies Incentives for Low-Income Housing

The Irvine City Council has taken the first steps toward requiring that 10% of all new housing in the city will be priced for “very low-income” families.

The requirement would be part of a controversial new housing plan being debated by the council, which would require that a total of 30% of all new housing be priced for families classified as earning very low, low and moderate incomes.

The council voted 5-0 to have the city staff research how economic incentives can be offered to developers so that 10% of new housing can be priced for “very low-income” families--those earning up to 50% of the median income, or $23,450 a year for a family of four.

Teachers, Tellers

“These are a third of the people who work at City Hall, these are beginning teachers and bank tellers,” Mayor Larry Agran said.

The council had been considering a plan that would require 12.5% of the new housing to be priced for very low-income families, another 12.5% for families earning 50% to 80% of the median income, and 5% for families earning 80% to 100% of the median--a total of 30% of the new housing.

However, Agran has said that the 30% figure left a misleading impression, because the market already offers adequate housing for families in the upper two categories. The developers are already meeting the proposed requirement there, he said.

The council’s action Thursday revised the housing figure for the lowest income category to 10% and directed the staff to look at three ways of financially assisting developers, said Maya Dunne, senior planner.

Tax-Exempt Bonds

Those three ways would include allowing more apartment units per acre; issuing tax-exempt bonds, and allowing developers of more than one project to consolidate some of the low-income units at one location.

City officials are also considering imposing “linkage fees” from employers, because the employees they bring to the city need housing. The money would go into a trust fund to help finance housing for low-income families.

Currently, there is no citywide requirement for the construction of housing for very low-income families, although such a provision has been imposed at a few newer developments, Dunne said.

The City Council will continue to consider the housing plan at its July 18 meeting.