Officials in Anaheim and Laguna Beach plan to establish their own housing trust funds – money that could be used to help create affordable homes or fund rental and homebuyer programs amid state pressure to address California’s home affordability crisis.
But there are a lot of questions over how much these housing funds can really generate, with the countywide program completing just 1,340 affordable units, with another 895 units under construction or closing on a construction loan, since 2018 – after investing over $823 million.
It comes amid state mandates on city officials in Orange County to zone for over 180,000 new homes – and 75,000 of them have to be designated for very low and low income families by 2029.
The County’s median income is close to $128,000, according to the state’s Department of Housing and Community Development. A four-person household making less than roughly $115,000 a year is considered low income and less than nearly $72,000 is considered very low income.
A 2022 report from the Orange County Housing Finance Trust put the average cost per unit for affordable housing at just over $500,000.
Two Cities Are Starting Housing Trusts; Will They Work?
On April 9, Laguna Beach city leaders unanimously voted to move forward with creating their own housing trust fund, aiming to support more lower-income households by bringing in grant funding from the state.
They also said the priority is to set up housing for seniors, local workers and artists, which city leaders have said they were looking for more ways to support for years.
[Read: Laguna Beach to Take a New Look at Affordable Housing for Artists]
While it remains unclear exactly what programs will be rolled out by the housing fund, a city staff report noted it could go toward rent subsidies, accessory dwelling unit development loans, new affordable units and other programs, with the goal of investing $2.5 million in the fund.
Laguna Beach officials are not the only ones tinkering with a housing trust.
Earlier this month, Anaheim officials directed staff to come back with plans to establish their own housing trust, eyeing tens of millions of dollars from Disney to kick start the trust as part of a 40-year agreement to expand their iconic theme park.
[Read: Anaheim Approves $2 Billion Disneyland Forward Expansion]
City council members unanimously approved the expansion dubbed Disneyland Forward on April 16 – an agreement in which the entertainment juggernaut committed $30 million towards building affordable housing in a city.
Half of it would go to the city the first year of the Disneyland Forward development and the other half would be paid over five years, according to city staff.
Both city staff and Disney representatives tout the investment as the largest private investment into housing in the city in a nonresidential project and say the money can be used to leverage even more funds through state and federal grants.
“Successful models across the country show every dollar of private investment can yield $7 of additional investment so our $30 million commitment could generate $210 million,” said Suzi Brown, vice president of communications for the Disneyland Resort, in an email to the Voice of OC this month.
The money from Disney is expected to create about 500 affordable homes, according to city spokesman Mike Lyster.
A host of residents, however, question if the investment is enough and argue that the city should implement a gate tax on venues like Disneyland, Angel Stadium, the Honda Center and the City’s convention center to bring in revenue for the fund.
Marisol Ramirez, deputy director of Orange County Communities Organized for Responsible Development, said in an interview that there should be a continuous revenue source going into the housing fund through a gate tax.
“We’re really behind on what we should be in terms of housing in the city,” she said. “You would add $1 to every ticket sale that would go into a fund that could create more housing, that could create better opportunities for the city.”
Lyster told the Voice of OC that city council members are not currently considering such a tax.
Anaheim & Laguna Beach Struggle With Getting Affordable Homes Built
According to recent reports, both cities are struggling to build affordable homes for low and very low income families.
In Anaheim, about 80% of homes approved to be built last year were for above moderate income families and about 11% were for low income and very low income families, according to a recent city report.
Under state housing mandates, the city has to zone for or 17,453 homes – of which 6,164 have to be for very low and low income families – by 2029
About half the people who live in Anaheim are on a public health plan.
[Read: The Happiest Place on Earth is Surrounded by Some of Orange County’s Poorest]
In Laguna Beach, city leaders have exclusively approved above-moderate housing, with the city’s housing report noting they’ve built 221 above-moderate cost homes and approved permits for 127 more, with no permits for moderate, low or very-low income homes since 2021.
They didn’t make any progress in zoning for affordable homes in 2022 either.
Under state housing mandates, officials there have to zone for 394 new homes – of which 198 have to be for very and low income families – by 2029.
According to the census, the median value of an owner occupied home in the coastal city is upwards of $2 million.
They are not the only ones struggling to get affordable homes built in OC.
[Read: How Are Orange County’s Cities Doing At Building Affordable Housing?]
Other cities across the county including Laguna Beach have adopted laws requiring developers to build affordable homes or pay a fee.
Anaheim has resisted implementing such a law.
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.
Noah Biesiada is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at nbiesiada@voiceofoc.org or on Twitter @NBiesiada.
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