August 26, 2004
Media Contacts: Laurie Golden, 818.888.9337
laurie@jacobswellpr.com
Walker Dearth, 323.468.1376
walker@hollywoodchamber.net
HOLLYWOOD CHAMBER VOICES CONCERN
ABOUT MANDATING AFFORDABLE HOUSING DEVELOPMENT;
RELEASES RECOMMENDATIONS AND STUDY
HOLLYWOOD, CA - After an extensive study, the Hollywood Chamber of Commerce Inclusionary Zoning Taskforce has come to the conclusion that developer incentives proposed by the City of Los Angeles to include affordable housing in new market rate projects must be voluntary - not binding - thus, increasing the chances that the City will gain and maintain developers' interest and much-needed participation for the affordable
housing policy to be effective.
The Hollywood Chamber assembled a specialized Taskforce, consisting of members with extensive experience in land use, planning, development, and finance fields, as well as recognized advocates for affordable housing, to study the complex issue.
"We recognize the importance and the need for affordable housing. This is what motivated us to develop the special Taskforce," said Taskforce chair Don Scott. "However, we also recognize the importance of economic reality and the need to offer developers enough profit to make it worthwhile to invest their time and money in our community. A voluntary policy will ensure the City offers incentives necessary to attract the private sector."
The Chamber team of experts did two case studies of Hollywood properties - applying the conditions laid out in the proposed mandatory policy. "We studied two very different sites and found that the economics simply were not there," said Scott. "We also found that both the current and the proposed grossly underutilizes the land because of past blanket downzoning. The results have not been good for the community, the land
owner, or the developer. The whole system is badly in need of a major overhaul."
"The good news," continued Scott, "is that we believe the proposed zoning changes can be made to work and we offer our report as a guide."
The Chamber report offers numerous suggestions on steps that could be taken to make an inclusionary housing policy (IZ) attractive to developers. Among the recommendations: allow specific plans or hillside ordinances to take precedent regarding height and setbacks; allow for-sale units to be offered at market prices without regulation,
but collect an in-lieu fee to be used for down payment assistance; focus IZ incentives along transportation corridors, and define what transportation corridors are; allow "height" and "setbacks" to prevail within transportation corridors, rather than "density" and "floor-area ratios;" and reexamine parking requirements within transportation corridors.
Taskforce member Elizabeth Peterson thinks that current density and height limits are counter-productive to the goals of the pending ordinance when constructing new, multi-family structures in those corridors. "The solution is simple," she remarks. "Secure reasonable height and setback entitlements 'by-right' as the new standard rule." This would translate into more space allotted for housing. Peterson also suggests streamlining
the appeals process in condominium cases, limiting appeals on these housing projects to just one to an Area Planning Commission, with that body's decision final.
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"While we disagree with making an inclusionary zoning policy mandatory, we do want to thank Councilmembers Eric Garcetti and Ed Reyes for addressing the housing shortage. We look forward to working
with the Councilmembers in formulating the zoning changes needed to increase our housing stock for all income levels in a well-planned and responsible way," concluded Scott.
For a complete list of the Hollywood Chamber's recommendations on inclusionary zoning and a review of its Taskforce's findings, visit the Chamber website at www.hollywoodchamber.net and click on Legislative Action and "Take Action."
For more than 84 years, the Hollywood Chamber of Commerce has provided leadership, business development resources, networking, and government affairs programs and services to keep the Hollywood business and residential communities safe, relevant and economically vital. Michael Taylor, senior vice president and general manager of Universal Studios Hollywood, is the Chairperson of the Hollywood Chamber of Commerce Board of Directors. Leron Gubler is the President and CEO.
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