In response to Rob Fredericks’s Voice of July 25, 2023, a lot of which is on level, he seems to take a shot at our metropolis’s Common Unit Density (AUD) program whereas making a case for a gross sales or short-term occupancy tax (TOT) hike to additional fund town’s Housing Authority.
The op-ed argues that AUD isn’t assembly low-income wants. He’s not precisely right as a result of AUD now requires a portion of the whole models be deed restricted as inexpensive to lower-income households. True, the vast majority of new models should not “inexpensive.” However AUD was by no means meant to wholly goal low-income households, nor was it meant as a funding supply for low-income housing. Moderately, its function is to incentivize development of smaller “move-up” rental models in and round our downtown core — a much more sustainable program in comparison with what we had earlier than AUD, after we incentivized 2,000-square-foot-plus luxurious condos.
The author states we’ve permitted 1,581 new housing models over the past eight years after which concludes, “Sadly, this new housing isn’t translating into decrease housing costs.” Excessive rents are plaguing all American cities, not simply Santa Barbara. Nevertheless, rents on an 800-square-foot (sf) condominium listed here are way more attainable and inexpensive than a 2,000sf rental. So technically, he’s incorrect once more if by “decrease” we evaluate at present’s rents with hefty down funds, mortgages, and house owner affiliation (HOA) dues for outsized condos.
However think about that of these “permitted” housing models, solely 656 have really been constructed. AUD hasn’t precisely dented our provide drawback, however that shouldn’t translate into frustration with AUD, particularly in the event you think about the lengthy view.
In a red-hot housing market, it’s no surprise that when a brand-new unit comes out of the bottom, full with high quality fixtures, splendid structure, in extremely fascinating areas, that there’s sticker shock. That’s as a result of previous to AUD, we successfully skilled a 50-year moratorium on condominium improvement. Because of this, we now have absurd and self-inflicted pent-up demand mixed with “do business from home” developments. AUD can’t repair historical past in a single day and definitely shouldn’t be measured in opposition to nationwide financial developments.
The actual lacking piece to our housing perspective is to do not forget that new models now will finally convert to extra inexpensive costs over time. As an alternative of craving for fast gratification, let’s take an extended view of our housing inventory over a 50-year horizon. Keep in mind, 88 p.c of our present inventory was constructed earlier than 1990. Additionally, think about that new AUD tasks are higher bang for the buck by way of water effectivity and residential density per acre, notably once they substitute out of date land makes use of.
We want the imaginative and prescient to proceed with no distraction, or worse, permitting the fallacy that prime rents now ought to cease us in our tracks. We assist Mr. Fredrick’s aim of extra public financing sources, notably on the state degree. However let’s work collectively as a housing business with all of the accessible instruments in our collective belts. AUD gained’t dig us out of fifty years of historical past in a single day. But when we think about the lengthy view and slowly attempt to hold tempo with demand, future generations will thank us.
Jay Higgins and Addison Thompson are former Metropolis of Santa Barbara planning commissioners.
