Changes Seek New Affordable Housing

Pushing to create more affordable housing in Simi Valley, a City Council committee this week completed proposed changes to the city’s method of awarding building permits.

“Nothing that we have done in the last two or three years has built an affordable unit. Not one,” said Mayor Bill Davis.

The city wants to encourage developers to protect the valley’s hillsides and provide affordable housing. They also will encourage projects designed to protect air quality, such as building homes near public transit or close to stores.

The council’s Technical Advisory Committee on Wednesday decided that when issuing unallocated building permits after April 1, 1999, the city should give preference to developers who agree to the new standards. In return, the city would grant financial incentives or allow more units per project, which make them more valuable to developers.

The advisory committee decided to set aside 20% of permits for affordable housing to be divided evenly between housing built for low-income and very low-income families, which in Simi Valley means families of four that make less than $60,000 and $38,000, respectively.

Rents for such dwellings would range from $300 for a one-bedroom unit for those with very low incomes up to $850 for a three-bedroom unit for low-income families.

Along with 20% of building permits linked to developments that meet the new goals, the city would earmark an additional 30% of all permits to be given to builders who designate a quarter of the units as affordable housing. So-called in-fill projects--homes built in existing neighborhoods--would receive 10% of the permits, and the remaining 40% would be for all other projects.

Under the new system, developers seeking to enter a development agreement will have two options for building affordable homes: constructing the homes as part of their projects or contributing $30,000 to $50,000 per unit to a city fund earmarked for affordable housing elsewhere in the city.

Under either option, the city will contribute up to $20,000 per affordable housing unit to subsidize the construction.