Developers in Anaheim could soon have to build affordable homes in certain residential projects or pay a fee as part of a new city ordinance that aims to boost the city’s low income housing stock.
After over an hour of debate at their Tuesday meeting, officials voted 5-2 on a proposed law that would do just that in Anaheim – a city where independent investigators alleged developer favoritism at city hall in a report published last year.
It comes amid calls on officials to enforce state rent caps and tenant protections in Anaheim and after years of advocacy from local activists calling for an affordable housing ordinance which officials have long resisted.
[Read: Calls For Mandatory Affordable Housing Grow in Anaheim]
Mayor Ashleigh Aitken, who spearheaded efforts to create a mandate in Anaheim, said it’s a first step to get homes for low-income residents.
“This is a wonderful thing that we’re doing for our residents that we hear from every meeting about how expensive it is,” she said about housing in Anaheim. “This is just one more thing that we can be proud of to really try to tackle what is an extremely, extremely complex issue.”
Councilmembers Jose Diaz and Natalie Meeks were the dissenting votes.
Diaz said such a mandate – often called an inclusionary housing ordinance – doesn’t address the root cause of stagnant low-income housing production and said increasing costs on developers makes it harder to get construction loans.
“Taxing the housing creators is not the way to produce more housing,” Diaz said “This ordinance will definitely affect the housing production.”
Meeks said she couldn’t support it because it’s “subsidizing affordable housing on the backs of other community members.”
“I think we need to figure out ways to find it that doesn’t burden our middle class that’s trying to move forward and pay their bills and work hard and now they’re going to subsidize their neighbor. I just dont think that’s fair,” Meeks said.
Councilman Stephen Faessel said this is the closest such a mandate has ever come in Anaheim.
“Tonight we brought it over the goal line,” said Faessel, noting it could get changed before officially becoming city law. “I hope we don’t pick this apart by the time the second reading comes, but I think this is something we can live with.”
Tuesday’s meeting comes after a series of recent public discussions on affordable housing development policies as officials look at ways to spur the production of low income homes in Anaheim – something that has proven to be a challenge in OC’s largest city.
According to a state database, 92% of the over 5,000 homes built in Anaheim between 2018-2023 were for above moderate income families while about 6% were for low and very low income families.
The median income for a four-person household in Orange County is $128,000, roughly $13,000 more than what is considered low income, according to the state’s Department of Housing and Community Development.
A four-person household that’s making less than $72,000 a year is considered very low income.
According to the U.S. Census Bureau, Anaheim’s median household income is just under $85,000.
Meanwhile, over 30,000 Anaheim households are currently waiting for Section 8 housing vouchers, with more than 4,000 additional households waiting for affordable housing options, according to a staff report.
Anaheim’s Proposed Inclusionary Housing Ordinance
The ordinance will require 10% of rental residential projects with 35 homes or more to be housing for low and very low income families or require the developer to instead pay the city $10 per square foot of the project.
The money collected would be restricted to be used solely for building affordable homes at the request of Councilwoman Natalie Rubalcava.
It will not apply to for sale residential projects after pushback from Councilmembers Norma Kurtz, Rubalcava and Faessel.
The ordinance still needs a second vote by city officials and would take 30 days after that to take effect.
Activists & Real Estate Interests Weigh In
Leaders with groups like Chispa, the Kennedy Commission, the Orange County Communities Organized for Responsible Development (OCCORD) and some residents spoke out in support of an inclusionary housing ordinance, pushing for stronger affordable mandates in Anaheim than originally proposed.
Marisol Ramirez, interim co-executive director with OCCORD, said the ordinance was long overdue, arguing that a lot of working class families are living in overcrowded single family homes and struggling to park in their neighborhoods.
“This ordinance is a crucial step toward addressing the multifaceted crisis we face in the city, and we must ensure it’s robust enough to make a real difference. We know that this won’t entirely solve and resolve our housing crisis but it is a starting point,” she said at Tuesday’s meeting.
Adam Wood, vice president of the Building Industry Association of Southern California OC chapter, said at Tuesday’s meeting inclusionary housing ordinances kill more housing than it creates.
“I’d say inclusionary is probably the worst approach. It puts the burden and cost right back on others,” Wood said.
“Essentially what we’re doing is creating a lottery system. There’s going to be a few lucky winners who are going to get some of these heavily subsidized housing units that are created but the majority of people are going to end up paying more for it.”
Carolina Mendez, a resident and local activist, said developers won’t leave because of the Disneyland Resort.
“Some of you have argued that somehow this policy is going to drive developers away. Let’s be honest, we’re home to Disneyland, a world class convention center and a booming tourism industry. Developers aren’t going to pack up in droves because we asked them to contribute to affordable housing and to look out for their neighbors,” Mendez told council members.
Rubalcava argued those attractions don’t necessarily keep developers in the city.
“We want to make sure Anaheim remains competitive. And I know we get a lot of people who get up and say ‘Well of course Anaheim’s going to remain competitive because we have Disneyland and all these things.’ That’s not necessarily true. We want to make sure we’re not creating a city where people don’t want to develop.”
Editor’s note: Ashleigh Aitken’s father, Wylie Aitken, chairs Voice of OC’s board of directors.
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.
Gigi Gradillas is a Voice of OC Tracy Wood Reporting Fellow. Contact her at gigi.gradillas@gmail.com or on Twitter @gigigradillas.
•••
Can you support Voice of OC with a donation?
You obviously care about local news and value good journalism here in Orange County. With your support, we can bring you more stories like these.
