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ONE IS A RECOMMENDATION

[00:00:01]

TO APPROVE THE MINUTES FOR THE HOUSING AND PUBLIC HEALTH COMMITTEE MEETING OF TUESDAY,

[CALL TO ORDER]

JANUARY 30TH, 2024.

[ROLL CALL]

THANK YOU.

I'LL MOVE.

WE HAVE A MOTION AND I'LL MAKE THE SECOND, UM, TO APPROVE.

DO WE HAVE ANY, UH, DISCUSSION ON THIS ITEM?

[1. 24-53814 Recommendation to approve the minutes for the Housing and Public Health Committee meeting of Tuesday, January 30, 2024.         Suggested Action: Approve recommendation. ]

ARE THERE ANY MEMBERS OF THE PUBLIC WHO WOULD LIKE TO SPEAK TO THIS ITEM? CAN I, I NEED A SECOND.

I DON'T SEE THE SECOND.

SURE.

IS THAT AUSTIN? I'LL GO AHEAD AND SELECT FOR YOU.

SORRY.

OKAY.

IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW.

NO PUBLIC COMMENT.

CHAIR.

THANK YOU.

WE'LL TAKE THE VOTE PLEASE.

MOTION CARRIES.

THANK YOU.

UH, MADAM CLERK, IF YOU COULD READ THE SECOND ITEM PLEASE.

ITEM TWO IS A RECOMMENDATION TO RECEIVE AND FILE A STAFF REPORT ON PROPOSED UPDATES AND EXPANSION OF THE CITY'S INCLUSIONARY HOUSING POLICY.

THANK YOU.

WE HAVE A MOTION AND A SECOND.

UM, GREAT.

I KNOW WE HAVE A STAFF REPORT ON THIS, SO I'M JUST GONNA DO SOME FRAMING COMMENTS, IF THAT'S OKAY.

DIRECTOR KOONS.

UM, AS OUR CITY AND OUR GREATER REGION, WE KNOW WE CONTINUE TO FACE CHALLENGES AROUND HOMELESSNESS

[2. 24-53815 Recommendation to receive and file a staff report on proposed updates and expansion of the City's inclusionary housing policy.         Suggested Action: Approve recommendation. ]

AND HOUSING.

LOCALLY, WE'VE SEEN SOME DEGREE OF SUCCESS WITH OUR ACTIVE EFFORTS AS EVIDENCED BY THE DECREASE EVEN SLIGHT IN THE HOMELESSNESS IN THE RECENT REVEALED, IN THE RECENT POINT IN TIME COUNT RESULTS, WE MAINTAIN AND STANDBY A HOUSING FIRST MODEL, MEANING OUR GOALS SHOULD BE TO PROVIDE ACCESSIBLE, STABLE HOUSING FOR THOSE WHO NEED IT.

WE HAVE HAD EXTENSIVE AND ONGOING CONVERSATIONS ABOUT ZONING AND LAND USE WELL BEFORE 2018.

ACTUALLY, THERE'S EVEN ONE SCHEDULED FOR THIS WEEK TO DISCUSS DOWNTOWN AND SHORELINE VISION PLAN.

AND WE ALSO HELD ONE, FOR EXAMPLE, IN BIXBY OLDS LAST SUMMER ABOUT THE UP ZONE PLAN.

WHILE LONG BEACH IS CONSIDERED A PRO-HOUSING JURISDICTION, WE KNOW WE HAVE LOTS OF TOOLS IN PLACE TO ENCOURAGE DEVELOPMENT OF HOUSING OF ALL INCOME LEVELS, BUT WE ALSO CONTINUE TO FACE HOUSING CHALLENGES, ESPECIALLY AROUND THE QUANTITY OF HOUSING AVAILABLE FOR OUR LARGE AND DIVERSE COMMUNITY.

THE PREVIOUS COUNCIL AND THIS COUNCIL HAVE MADE IT CLEAR THAT ALL PARTS OF OUR CITY NEED TO BE PART OF THE SOLUTION MOVING FORWARD.

AND THE PRESENTATIONS BEING SHARED TODAY ARE EXAMPLES OF MECHANISMS WE HAVE IN PLACE TO INCREASE THE ACCESSIBILITY AND AFFORDABLE AFFORDABILITY OF HOUSING.

IDENTIFYING GAPS IN ACCESS IN OUR CITY'S MAPS AND IN THE TYPE OF HOUSING BEING BUILT WILL HELP US MOVE FORWARD AND SHAPE OUR APPROACH TO RESOLVING OUR CONTINUED HOUSING CONCERNS IN THE FUTURE.

ALSO, WE KNOW THAT PUBLIC INTEREST IN HOUSING POLICIES AND DEVELOPMENT HAS BEEN ON THE RISE, AND THESE PRESENTATIONS SERVE AS, UH, DOCUMENTED PUBLIC INFORMATION TO HELP ANSWER QUESTIONS AND PROVIDE CONTEXT AND BACKGROUND FOR ALL INTERESTED STAKEHOLDERS TO UNDERSTAND THE POLICY NEEDS OF THE CITY.

SIMILARLY, THESE HAVING THESE PRESENTATIONS AT COMMITTEE ALLOW FOR PUBLIC DISCOURSE BEFORE RECOMMENDATIONS AND POLICIES ARE BROUGHT TO COUNCIL FOR THE VOTE.

AND WE THANK YOU ALL FOR BEING HERE TODAY, AND ESPECIALLY TO OUR STAFF WHO HAVE PUT THESE PRESENTATIONS TOGETHER.

WE LOOK FORWARD TO LEARNING FROM YOU AND HEARING RECOMMENDATIONS OF HOW WE CONTINUE TO MOVE THE CONVERSATION FORWARD.

AND FOR THAT, I'LL PASS IT OVER TO DIRECTOR KOONTZ.

UH, THANK YOU, UM, COMMITTEE CHAIR AND COUNCIL MEMBERS.

SO, UH, STEPHANIE HARPER IS GONNA WALK US THROUGH AN UPDATE ON WHERE WE ARE, UM, SINCE WE WERE AT COUNCIL A COUPLE WEEKS AGO AND WHERE WE'RE GOING IN TERMS OF OUR CONSULTATION WITH THE PUBLIC AND THEN COMING BACK, UH, TO THE FULL COUNCIL, UH, LATER THIS CALENDAR YEAR.

SO WITH THAT, UH, TAKE IT AWAY, STEPHANIE.

GREAT.

THANK YOU, CHRISTOPHER.

GOOD AFTERNOON, COUNCIL MEMBERS AND OUR COMMUNITY MEMBERS.

I'M GONNA START WITH A QUICK RECAP AND THEN I'LL GET INTO OUR MOST RECENT UPDATES.

SO LAST MONTH, THE MAYOR AND CITY COUNCIL REQUESTED THAT WE REPORT BACK ON EXPANDING INCLUSIONARY HOUSING CITYWIDE.

THE FOLLOWING WEEK WE BROUGHT AN UPDATE ON OUR IMPLEMENTATION PROGRESS OVER THE PAST THREE YEARS.

I'LL WAIT JUST IN CASE.

WE NEED A MINUTE TO PULL THAT POWERPOINT BACK UP.

THANK YOU.

THEY'RE LOOKING AT IT IN THE PACK.

I WAS NOT QUITE PREPARED FOR THAT, BUT I COULD SEE WHAT I COULD PULL TOGETHER.

.

ALL RIGHT.

WHEW.

I GOT SAVED BY THE POWERPOINT.

YOU'LL NEED TO SEE MY DANCING.

SO ANYWAY, WE DID A PRESENTATION LAST MONTH.

DURING THOSE TWO MEETINGS, WE HEARD FROM COUNCIL MEMBERS AN INTEREST IN POTENTIALLY UPDATING THE INCLUSIONARY AFFORDABILITY REQUIREMENTS FOR RENTAL UNITS TO ENCOMPASS A MIX OF INCOME LEVELS.

AND SO WE'LL BE TALKING ABOUT OPTIONS FOR THAT TODAY.

AND THEN WE ALSO HEARD FROM COUNCIL MEMBERS

[00:05:01]

THE IMPORTANCE OF COMMUNITY OUTREACH DURING THIS UPDATE PROCESS.

AND SO I'LL TALK A LITTLE BIT MORE ABOUT NEXT STEPS AND OUR OUTREACH PLAN.

MY APOLOGIES, THEY SEEM TO BE HAVING TECHNICAL DIFFICULTIES IN THE BACK.

OKAY, SO FIRST QUICK, JUST A LITTLE BIT ON BACKGROUND.

UM, WE DID MORE DETAIL IN MAY, SO I'LL BE BRIEF HERE, BUT I DO WANNA NOTE THAT IT WAS, IT TOOK SEVERAL YEARS TO DEVELOP OUR CURRENT POLICY THAT INCLUDED SIGNIFICANT COMMUNITY OUTREACH AS WELL AS AN ECONOMIC ANALYSIS THAT WERE REPAIRED BY A CONSULTANT.

THE ANALYSIS IDENTIFIED THE AFFORDABILITY OPTIONS THAT COULD BE SUPPORTED WITHOUT HAVING A NEGATIVE IMPACT ON HOUSING DEVELOPMENT THAT INCLUDED BOTH SINGLE INCOME AND MIXED INCOME OPTIONS.

IN 2020, WE PRESENTED THOSE AFFORDABILITY OPTIONS TO THE PLANNING COMMISSION.

I CAN KEEP GOING, BUT I DON'T KNOW IF I'M SUPPOSED TO.

OKAY, I'M GONNA KEEP GOING.

UM, WE PRESENTED THOSE OPTIONS TO THE PLANNING COMMISSION FOR RENTAL PROJECTS.

WE SPECIFICALLY PRESENTED THREE OPTIONS.

ALL THREE OPTIONS THAT WE PRESENTED WERE MIXED INCOME OPTIONS, AND THE AFFORDABILITY MIXES FOR RENTAL PROJECTS INCLUDE VERY LOW INCOME, LOW INCOME, AND MODERATE INCOME AFFORDABILITY LEVELS.

AND I DO WANNA NOTE AN IMPORTANT, AN IMPORTANT PIECE TO REMEMBER AS WE TALK ABOUT POTENTIALLY UPDATING AFFORDABILITY REQUIREMENTS.

WE ARE TALKING ABOUT THAT ONLY FOR RENTAL PROJECTS.

OWNERSHIP PROJECTS ARE ONLY SUPPORTABLE AT 10% OF TOTAL PROJECT UNITS AT THE MODERATE INCOME HOUSEHOLD LEVEL.

IN 2020, THE PLANNING COMMISSION RECOMMENDED THAT COUNCIL ADOPT A MIXED INCOME AFFORDABILITY REQUIREMENT.

THEIR RECOMMENDATION WAS THAT 12% OF TOTAL RENTAL PROJECT UNITS BE SET ASIDE, AND THE MIX THEY RECOMMENDED WAS A QUARTER OF THOSE WOULD BE AFFORDABLE FOR VERY LOW INCOME FAMILIES, A QUARTER AT THE LOW INCOME LEVEL AND HALF AT MODERATE INCOME.

HOWEVER, COUNSEL AT THAT TIME DECIDED THAT THEY WANTED TO FOCUS INCLUSIONARY UNITS FOR HOUSEHOLDS THAT NEEDED IT THE MOST.

AND SO THE POLICY THAT THEY ADOPTED, OUR CURRENT POLICY IS 11% OF RENTAL UNITS ARE AFFORDABLE ONLY TO VERY LOW INCOME HOUSEHOLDS.

THEY WENT WITH A SINGLE INCOME OPTION.

A COUPLE NOTES ON CONTEXT THAT ARE IMPORTANT AS WE TALK ABOUT UPDATES TO THIS POLICY.

UM, THE FIRST IS A REMINDER THAT OUR CURRENT POLICY APPLIES ONLY TO NEW HOUSING DEVELOPMENT WITH 10 OR MORE UNITS IN DOWNTOWN AND MIDTOWN.

THIS WAS DESIGNED TO BE THE FIRST PHASE OF THE POLICY WHEN IT WAS ADOPTED.

WE COMMITTED TO EXPANDING CITYWIDE DURING THE SECOND PHASE.

AND IN 2022, THE CITY FORMALLY MADE THAT COMMITMENT TO THE STATE TO EXPAND INCLUSIONARY HOUSING AS PART OF OUR HOUSING ELEMENT.

AND THAT WAS DESIGNED SPECIFICALLY TO HELP ADDRESS DOCUMENTED FAIR HOUSING ISSUES THAT WE HAVE IN OUR CITY, SUCH AS SEGREGATION.

AND THEN I ALSO WANNA NOTE THAT HOUSING DEVELOPMENT HAS INCREASED SINCE THE POLICY WAS FIRST ADOPTED IN 2021.

AND THIS IS IMPORTANT BECAUSE IT MARKS A REALLY CRITICAL TIME TO MAKE THESE UPDATES TO INCLUSIONARY, ESPECIALLY TO GO CITYWIDE BECAUSE WE WANT TO ENSURE THAT FUTURE MARKET RATE PROJECTS INCLUDE AT LEAST SOME PROPORTION OF AFFORDABLE UNITS TO HELP FACILITATE MIXED INCOME HOUSING AND TO HELP PREVENT DISPLACEMENT OF OUR CURRENT RESIDENTS.

OKAY, SO BASED ON COUNCIL'S DIRECTION LAST MONTH, WE HAVE REVIEWED SEVERAL POSSIBLE INCLUSIONARY AFFORDABILITY OPTIONS.

AGAIN, THIS IS SPECIFIC TO OUR RENTAL HOUSING PROJECTS.

FOR CONTEXT, I HAVE HERE IN THIS CHART THE INCOME LIMITS FOR A FAMILY OF FOUR.

SO WHEN WE SAY VERY LOW INCOME, THE INCOME LIMIT FOR THAT IS ABOUT $69,000.

AT LOW INCOME, THE INCOME LIMIT IS JUST OVER 110,000.

AND THEN MODERATE INCOME IS JUST OVER 117,000.

SO THE FIRST OPTION WE'RE PRESENTING TO YOU OPTION A IS TO SIMPLY EXPAND THE CURRENT REQUIREMENTS CITYWIDE.

AGAIN, THAT'S 11% OF RENTAL UNITS AFFORDABLE TO VERY LOW INCOME HOUSEHOLDS.

OPTION B IS TO UPDATE THE AFFORDABILITY REQUIREMENTS AND MAKE THEM MIXED INCOME AND THEN APPLY THE SAME REQUIREMENTS UNIFORMLY ACROSS THE CITY.

THIS IS THE APPROACH THE PLANNING COMMISSION TOOK IN 2020.

THEIR RECOMMENDATION WAS, AGAIN, 12% OF RENTAL PROJECTS, AND THAT WILL BE BROKEN DOWN AT 3% OF THE UNITS WOULD BE AFFORDABLE FOR VERY LOW INCOME HOUSEHOLDS, 3% AFFORDABLE FOR LOW AND 6% AFFORDABLE FOR MODERATE.

OPTION C IS TO APPLY DIFFERENT AFFORDABILITY REQUIREMENTS

[00:10:01]

TO DIFFERENT GEOGRAPHIC AREAS OF THE CITY BASED ON LONG BEACH OPPORTUNITY AREAS.

THIS IS OUR RECOMMENDATION AS STAFF FOR THE OPTION TO MOVE FORWARD BECAUSE WE BELIEVE IS THE OPTION THAT IS, HAS THE STRONGEST EQUITY APPROACH AND IS THE MOST ROOTED IN DATA.

AND SO I'M GONNA WALK THROUGH THIS CHART HERE FIRST, BUT THEN SINCE THIS IS AN OPTION THAT IS BASED ON GEOGRAPHY OR SPECIFIC TO GEOGRAPHY, I'M GONNA SHOW IT TO YOU NEXT ON A MAP.

SO, OPPORTUNITY AREAS ARE DESIGNATED BY THE STATE.

WE ARE PROPOSING HERE FOR PROJECTS THAT ARE BUILT IN HIGHER RESOURCE AREAS OF THE CITY, THAT 11% OF RENTAL PROJECTS WOULD BE AFFORDABLE TO VERY LOW INCOME.

FOR PROJECTS THAT ARE BUILT IN MODERATE RESOURCE AREAS OF THE CITY, WE PROPOSE APPLYING A MIXED INCOME APPROACH.

THE MIX HERE IS BASED ON ARENA ALLOCATION.

AND SO THAT'S A TOTAL OF 12% OF RENTAL PROJECT UNITS.

HALF AFFORDABLE FOR VERY LOW A QUARTER, AFFORDABLE FOR LOW AND A QUARTER AFFORDABLE FOR MODERATE INCOME HOUSEHOLDS.

AND THEN FOR PROJECTS BUILT IN LOW RESOURCE AND HIGH SEGREGATION, HIGH POVERTY AREAS OF THE CITY WE'RE PROPOSING 19% OF THE UNITS WOULD BE AFFORDABLE FOR MODERATE INCOME HOUSEHOLDS.

AND HERE'S A LITTLE BIT MORE ON THESE OPPORTUNITY AREAS.

SO YOU CAN SEE THEM HERE ON A MAP I MENTIONED.

THEY ARE IDENTIFIED BY THE STATE.

THEY ARE BASED ON NINE FACTORS THAT ARE ASSOCIATED WITH ECONOMIC EDUCATION AND HEALTH OUTCOMES FOR LOW INCOME FAMILIES, ESPECIALLY LONG TERM OUTCOMES FOR CHILDREN.

AND SO ON THE MAP, OUR HIGHER RESOURCE AREAS ARE PURPLE AND BLUE.

THESE ARE THE AREAS OF THE CITY WITH THE BEST PARKS, THE BEST SCHOOLS, THE BEST ENVIRONMENTAL CONDITIONS.

MODERATE RESOURCE AREAS ARE IN THAT, I'M GONNA CALL IT GREEN COLOR ON THE MAP, LOW RESOURCE IS YELLOW-ISH.

AND THEN HIGH SEGREGATION.

HIGH POVERTY IS ORANGE WITH BLACK STRIPES.

IT'S A LITTLE HARD TO SEE ON THE BIG SCREEN.

I APOLOGIZE.

SO OPPORTUNITY AREAS IS A FRAMEWORK THAT SUPPORTS AFFIRMATIVELY FURTHERING FAIR HOUSING.

THIS IS A LEGAL MANDATE THAT WE HAVE AS A CITY TO NOT ONLY COMBAT DISCRIMINATION, BUT ALSO TAKE MEANINGFUL ACTION TO PROACTIVELY ADDRESS SEGREGATION, TO MAKE SURE THAT WE HAVE NEIGHBORHOODS THAT ARE RACIALLY AND ECONOMICALLY INCLUSIVE, AND TO HELP ENSURE THAT LOWER INCOME FAMILIES HAVE ACCESS TO OPPORTUNITY.

NOW IN LONG BEACH, HISTORICALLY, ALMOST NO AFFORDABLE HOUSING HAS BEEN BUILT IN OUR HIGHER RESOURCE AREAS OF, OF THE CITY.

INSTEAD, IT'S ALMOST ENTIRELY CONCENTRATED IN LOW RESOURCE AREAS.

THIS HAS SERVED TO MAINTAIN RACIAL AND ECONOMIC SEGREGATION HISTORICALLY, AND HAS ALSO EFFECTIVELY EXCLUDED LOWER INCOME FAMILIES FROM THESE HIGHER RESOURCE AREAS.

AND SO TO ADDRESS THESE PATTERNS, OUR RECOMMENDATION IS THAT WE TIE THE INCLUSIONARY AFFORDABILITY LEVELS TO THESE OPPORTUNITY AREAS.

SO ON THE MAP, IF A PROJECT WAS BUILT IN AN AREA THAT IS PURPLE OR BLUE, AGAIN, 11% WOULD BE RESTRICTED TO VERY LOW INCOME HOUSEHOLDS.

SO WE CAN HELP ENSURE EQUITABLE ACCESS TO OPPORTUNITY.

PROJECTS BUILT IN THE GREEN OR MODERATE RESOURCE AREAS WOULD HAVE A MIXED INCOME APPROACH BASED ON ARENA ALLOCATION PROJECTS BUILT IN YELLOW OR ORANGE AREAS.

LOW RESOURCE OR HIGH SEGREGATION AREAS WOULD HAVE A MODERATE INCOME AFFORDABILITY REQUIREMENT AT 19% OF RENTAL UNITS.

IF COUNCIL ULTIMATELY DECIDES TO MOVE FORWARD WITH INCLUSIONARY REQUIREMENTS THAT INCLUDE A MIX OF AFFORDABLE INCOME LIMITS, WE ALSO WOULD ADD TWO, UM, TECHNICAL PROVISIONS THAT WOULD ALIGN WITH THAT INCOME LEVEL CHANGE.

THE FIRST RELATES TO HOW WE WOULD APPLY, UM, THE AFFORDABLE CALCULATION.

SO WE WOULD LIKE TO ADD A PROVISION THAT WILL ALLOW US FLEXIBILITY TO ROUND FRACTIONAL UNITS ACROSS INCOME LEVELS.

FOR EXAMPLE, IF A CALCULATION WERE TO RESULT IN 0.2, VERY LOW INCOME, 0.4, LOW INCOME AND A 0.2 MODERATE INCOME UNIT, WE COULD DELIVER THOSE AS ONE MODERATE INCOME UNIT.

THIS IS JUST BASED ON HOW THESE SMALL PERCENTAGES WERE WORK.

WE NEED TO MAKE SURE IT WORKS OUT PRACTICALLY.

THE SECOND CHANGE WE WOULD RECOMMEND IS RELATED TO OUR IN LIE FEES.

SO WHEN COUNCIL IN 2021 ADOPTED OUR CURRENT POLICY TO BE AFFORDABLE FOR RENTAL PROJECTS ONLY FOR VERY LOW INCOME HOUSEHOLDS, THEY ADDED A RESTRICTION TO IN LIE FEES.

SO THAT IN LIE FEES CAN ONLY BE USED TO BUILD HOUSING FOR VERY LOW INCOME HOUSEHOLDS.

RIGHT? THEY WANTED TO MATCH THE USE OF IN LIEU FEES TO THE AFFORDABILITY REQUIREMENT THEY HAD SET.

IF COUNSEL DECIDES TO MOVE FORWARD WITH A DIFFERENT INCOME MIX, WE WOULD RECOMMEND REMOVING THIS RESTRICTION FOR IN LIE, LIE FEES TO SIMILARLY ALIGN IT FOR THE AFFORDABILITY REQUIREMENT THAT IS ADOPTED IN THE NEW POLICY.

AND THEN I WANT TO JUST OFFER AS A REMINDER,

[00:15:01]

OR IN CASE THERE'S ADDITIONAL QUESTION OR CONVERSATION TODAY, IN MAY WE TALK THROUGH FIVE ADDITIONAL TECHNICAL CHANGES WE'D LIKE TO MAKE TO THE POLICY.

I'LL REVIEW THEM HERE QUICKLY.

THE FIRST RELATES TO HOW WE CALCULATE INCLUSIONARY UNITS.

WE WANNA MODIFY THE POLICY TO ROUND UP FRACTIONAL UNITS RATHER THAN ALLOWING DEVELOPERS THE OPTION TO PAY AN IN LIE FEE.

THE SECOND, THE STATE REQUIRES US TO OFFER ALTERNATIVE COMPLIANCE TO DEVELOPERS INSTEAD OF BUILDING UNITS ON SITE.

SOME OF THOSE OPTIONS REQUIRE THAT, UM, CITY COUNCIL APPROVE THEM, SUCH AS IN LIE FEES FOR LARGER RENTAL PROJECTS OR LAND DEDICATION, WE'RE RECOMMENDING DESIGNATING THE APPROVAL BODY AS THE PLANNING COMMISSION RATHER THAN COUNCIL, BECAUSE THIS ALIGNS WITH THE PLANNING COMMISSION'S ROLE AS PROVIDING, UM, APPROVAL FOR DISCRETIONARY PROJECTS THAT DON'T REQUIRE LEGISLATIVE ACTION.

THIRD, ONE OF THE ALTERNATIVE COMPLIANCE OPTIONS IS FOR DEVELOPERS TO DONATE LAND TO BE BUILT INTO AFFORDABLE HOUSING.

RIGHT NOW, OUR POLICY REQUIRES THAT THE LAND TO BE DONATED OR DEDICATED MUST BE WITHIN ONE MILE OF THE ORIGINAL SITE THAT TRIGGERED INCLUSIONARY REQUIREMENTS.

WE WANNA REMOVE THAT ONE MILE RADIUS.

WE WOULD LIKE THE OPTION OR THE FLEXIBILITY FOR LAND TO BE DEDICATED IN HIGHER RESOURCE AREAS AS THIS ALIGNS WITH OUR FAIR HOUSING GOALS.

FOURTH, WE'D LIKE TO ADD A PROVISION THAT RESTRICTS OWNERSHIP UNITS TO BE SOLD ONLY TO FIRST TIME HOME BUYERS.

THIS CLOSES A POTENTIAL LOOPHOLE WHERE HOME BUYERS WHO ALREADY OWN OTHER REAL ESTATE COULD STILL QUALIFY TO BUY THESE AFFORDABLE UNITS.

AND THEN LAST, WE'D LIKE TO ADD A PROVISION THAT WOULD ALLOW US FLEXIBILITY TO AMEND OR SUSPEND INCLUSIONARY REQUIREMENTS ONLY WHEN A PROJECT WILL PROVIDE MORE AFFORDABLE UNITS THAN IS REQUIRED UNDER THE INCLUSIONARY PROJECT POLICY.

SO THIS OUTLINES OUR NEXT STEPS, AND I'LL TALK A LITTLE BIT ABOUT OUTREACH.

UM, WE PLAN TO OFFER MULTIPLE OPPORTUNITIES FOR COMMUNITY MEMBERS AND STAKEHOLDERS TO PROVIDE INPUT AS WE'RE GOING THROUGH THE PROCESS OF UPDATING THE POLICY.

THIS INCLUDES A FOCUS GROUP WITH HOUSING DEVELOPERS SPECIFICALLY.

WE ALSO WILL HOST SEVERAL IN-PERSON OPEN HOUSES FOR COMMUNITY MEMBERS AND HOUSING ADVOCATES.

WE PLAN TO HOLD A STUDY SESSION WITH OUR PLANNING COMMISSION THAT'S TENTATIVELY SCHEDULED FOR AUGUST 15TH, AND THAT PROVIDES ANOTHER OPPORTUNITY FOR COMMUNITY MEMBERS OR STAKEHOLDERS TO PROVIDE INPUT EITHER IN PERSON OR ONLINE.

WE THEN PLAN TO, UM, HOLD A PUBLIC HEARING WITH THE PLANNING COMMISSION TENTATIVELY ON SEPTEMBER 19TH.

AND THEN WE ANTICIPATE BRINGING FORWARD THE PLANNINGS COMMISSION'S RECOMMENDATION TO CITY COUNCIL FOR A VOTE TENTATIVELY ON NOVEMBER 12TH.

AND OUR GOAL IS TO HAVE THE UPDATED POLICY TAKE EFFECT JANUARY 1ST.

AND THAT CONCLUDES MY PRESENTATION.

WE'RE AVAILABLE FOR QUESTIONS IF YOU HAVE ANY.

GREAT, THANK YOU SO MUCH TO STAFF.

UM, I WILL OPEN IT UP TO QUESTIONS, COMMENTS FROM THE TEAM HERE AT THE DAAS.

UH, WE CAN START WITH COUNCIL MEMBER RICKS OTI.

DO YOU HAVE QUESTIONS? I DO.

UM, SORRY, I WAS TRYING TO LIKE QUEUE UP AND THEN MY, MY LITTLE WORKSTATION HERE IS GETTING A LITTLE HOT.

SO I THINK IT'S 'CAUSE A LITTLE WARM IN HERE TODAY.

UM, I PROBABLY WILL JUST START WITH THE NOT SO ELEPHANT IN THE ROOM, BUT, UM, SO I THINK MANY OF YOU ALL KNOW I WAS ON THE PLANNING COMMISSION WHEN WE ORIGINALLY IMPLEMENTED INCLUSIONARY HOUSING, RIGHT? SO I'LL, I'LL, I'LL RAISE MY HAND AND SAY THAT I WAS THE COUNCIL MEMBER THAT MADE THE MOTION ORIGINALLY FOR WHAT WE RECOMMENDED TO TO CITY COUNCIL, RIGHT? SO I, YOU KNOW, I'LL JUST GO ON RECORD AS BEING SOMEONE WHO ORIGINALLY DID ADVOCATE FOR I, UM, FOR KIND OF THIS DISTRIBUTION OF DIFFERENT TYPES OF HOUSING INC AFFORDABLE HOUSING TYPES WITHIN A DEVELOPMENT.

UM, AND THE REASON FOR THAT BEING, UH, THAT WE JUST DIDN'T AT THE TIME, AND I THINK THAT'S PROBABLY STILL TRUE NOW, THERE REALLY WASN'T A MECHANISM FOR MODERATE INCOME, RIGHT? AND, UH, AND NO FUNDING FOR IT.

AND SO IT WAS RECOGNITION OF, WELL, HOW DO WE AS A CITY ADDRESS THAT, UM, IN A WAY THAT'S MEANINGFUL AS PART OF OUR POLICY.

UH, OBVIOUSLY CITY COUNCIL AT THE TIME, UM, UH, DIDN'T AGREE WITH THAT POLICY AND THAT, AND THAT THAT RECOMMENDATION, AND THAT'S PERFECTLY FINE.

UH, IT SOUNDS LIKE FROM SOME OF THE DISCUSSION WE HAD PREVIOUSLY AT A CITY COUNCIL MEETING, THERE SEEMS TO BE MAYBE A LITTLE BIT MORE OF AN APPETITE FOR THAT.

UH, AND SO I APPRECIATE, UH, THE RESURRECTION OF OPTION B, WHICH IS MY ORIGINAL RECOMMENDATION THAT I MADE, UH, BACK, UH, FOUR YEARS AGO.

UM, BUT I WAS PARTICULARLY INTERESTED IN OPTION C, UM, PARTICULARLY, YOU KNOW, WE ALWAYS TALK ABOUT HAVING AN EQUITY LENS AND THE WAYS THAT WE, UM, APPLY OUR POLICIES HERE.

UH, AND YOU TALKED ABOUT THIS BEING KIND OF LIKE THE MORE EVIDENCE-BASED POLICY.

AND SO I WAS HOPING, I KNOW WE KIND OF WENT THROUGH THIS A LITTLE BIT MORE QUICKLY, BUT COULD YOU REALLY, COULD YOU KIND OF MORE, UH, MAYBE MORE SPORTS SPECIFICALLY KIND OF WALK US THROUGH KIND

[00:20:01]

OF THE INTENTIONALITY, KIND OF THE DATA AROUND WHY THIS IS YOUR SPECIFIC RECOMMENDATION AROUND THE OPPORTUNITY AREAS? UM, AND SPECIFICALLY WHAT I THINK STRUCK MY EYE AND PROBABLY SOME OF MY COUNCIL MEMBERS WAS THE 19% MODERATE INCOME AND THE LOW RESOURCE AND HIGH SEGREGATION POVERTY LEVELS.

AND JUST A LITTLE BIT AROUND LIKE THE JUSTIFICATION FOR THAT AND JUST BEING, I KNOW IN THE COUNT IN THE CONVERSATION WE'VE HAD ON COUNCIL, YOU KNOW, WE'VE TALKED ABOUT THIS KIND OF 11% THRESHOLD AND WE'RE ALWAYS TALKING ABOUT THE ECONOMICS OF THESE DEVELOPMENTS, RIGHT? AND THINGS THAT WILL PENCIL AND WHAT WE FEEL LIKE OUR DEVELOPMENT COMMUNITY CAN BEAR.

AND SO WHEN, CAN YOU TALK ABOUT THAT IN THE CONTEXT OF THE DATA AND THEN ALSO WHY WE THINK THIS IS SOMETHING REASONABLE THAT WHEN YOU GO TO OUR DEVELOPMENT COMMUNITY, THIS IS SOMETHING THAT THEY WOULD THINK WOULD WORK FOR SOME OF THEIR PROJECTS? SORRY, I KNOW THAT WAS A LONG QUESTION, BUT YEAH.

I'LL DO MY BEST.

LET ME KNOW IF I FORGET ANYTHING.

UM, SO THE, THE 19% MODERATE, THAT WAS AN OPTION IDENTIFIED FROM THE ORIGINAL ECONOMIC ANALYSIS PREPARED BY THE CONSULTANT.

I THINK, UM, CHRISTOPHER HAS DONE A GOOD JOB TALKING ABOUT KIND OF THE FINANCES THAT GO BEHIND IT.

BUT AS YOU COULD OF ADJUST THESE LEVERS OF AFFORDABILITY LEVELS, YOU CAN GET, YOU KNOW, MORE UNITS OR FEWER UNITS.

AND SO IF WE, A MODERATE INCOME HOUSEHOLD CAN PAY MORE IN RENT, AND SO YOU CAN GET MORE UNITS AND STILL HAVE THE PROJECT PENCIL OUT.

AND SO THAT IS THE MAXIMUM THAT WE CAN GO AND WE LOVE TO SEE THAT.

WE LOVE TO SEE MORE UNITS, UM, IN TERMS OF MODERATE INCOME AND APPLYING THAT AFFORDABLE LEVEL TO OUR LOW RESOURCE HIGH SEGREGATION.

I'M GONNA MOVE US FORWARD TO, OH, I THINK I LOST CONTROL OF THE POWERPOINT.

IF YOU DON'T MIND PULLING UP.

WE HAVE A SECOND MAP.

I THINK IT'S TWO SLIDES FROM HERE.

ESSENTIALLY, THE IDEA BEHIND THIS IS WE CAN ADJUST NOPE.

TO HELP, UM, BALANCE OUT AN OVER CONCENTRATION OF LOW AND VERY LOW INCOME UNITS THAT ARE CURRENTLY IN OUR LOW RESOURCE AREA SO THAT WE ARE TRULY GETTING MIXED INCOME HOUSING.

AND SO PLACING OF THE MODERATE, THE MAJORITY OF THE MODERATE HERE.

AND THEN JUST TO RE REITERATE WHAT YOU JUST SAID, SO THE ISSUE WE'RE CON WE'RE CONCERNED WITH AS A CITY RIGHT NOW IS THERE'S AN OVER CONCENTRATION OF THE, LIKE THE VERY LOW INCOME AND LOW INCOME UNITS AND LOWER RESOURCE AREAS OF THE CITY.

AND SO THE GOAL HERE IS TO DIVERSIFY THAT ACROSS THE CITY.

THAT'S CORRECT.

YEAH.

SO THERE'S, THERE'S MORE THAN ONE GOAL AND WE'RE TRYING TO, UM, IT'S LIKE CALCULUS, RIGHT? SO WE'RE TRYING TO SOLVE FOR MULTIPLE, UM, VARIABLES.

SO, UH, VERY WELL INTENTIONED BUT NOT PERFECT IN ITS RESULT.

THE CITY HAS DONE A LOT OF, UM, AFFORDABLE HOUSING OVER THE DECADES.

MOST OF IT IS IN WHAT'S LABELED ONE B HERE.

UM, SO ABOUT, UH, FOUR YEARS AGO, UM, THE HEALTH DEPARTMENT, WHICH RUNS THE HOUSING AUTHORITY AND, UM, COMMUNITY DEVELOPMENT AT THE TIME DEVELOPMENT SERVICES SORT OF, UM, SAT DOWN AND MAPPED WHERE WE HAD OVER CONCENTRATED, FOR LACK OF A BETTER TERM, SORT OF, UM, VERY LOW INCOME UNITS.

AND IT ACTUALLY CORRESPONDS TO A ZIP CODE 9 0 8, 0 6.

SO, UM, THE HOUSING AUTHORITY IS NOT ISSUING, UH, NEW VOUCHERS, UM, NEW PROJECT-BASED VOUCHERS IN, UH, 9 0 8, 0 6.

GENERALLY, THERE ARE SOME PROJECTS THAT WERE UNDERWAY FOUR YEARS AGO THAT ARE STILL NOT COMPLETE, AND WE'RE GONNA SEE THOSE PROJECTS THROUGH.

UM, BUT GENERALLY SPEAKING, WE'RE TRYING TO, UM, PROVIDE OPPORTUNITIES IN THOSE AREAS FOR THERE TO BE MORE MARKET RATE OR MODERATE UNITS SO THAT THERE'S A MIX OF INCOMES AND YOU'RE NOT CREATING CONCENTRATED POVERTY.

SO, UM, THAT'S ONE GOAL, SORT OF ADDRESSING THE UNIQUE NEEDS OF, OF THOSE, UM, AREAS WITH CONCENTRATED POVERTY.

AND THEN ON THE OTHER SIDE OF THE SCALE IS THERE'S PARTS OF THE CITY WHERE THERE IS NO OR NEARLY NO OPPORTUNITY FOR LOWER INCOME PERSONS TO EXPERIENCE THOSE HIGH RESOURCE AREAS.

SO THOSE ARE DIFFERENT GOALS.

AND WHAT WE'RE TRYING TO DO IS FIND A POLICY THAT BALANCES, UM, THOSE GOALS ALL AT ONCE.

AND THEN WE'VE GOT, UM, A BIG PART OF THE CITY, WHICH IS IN THE MIDDLE.

IT'S NOT HIGH RESOURCE, IT'S NOT LOW RESOURCE.

UM, AND THERE IT'S DATA DRIVEN IN THAT WE TOOK OUR ARENA NUMBERS, JUST SORT OF WHAT PERCENTAGE OF UNITS SHOULD BE VERY LOW, LOW, MODERATE, AND THEN JUST, UH, TRANSFORMED THAT INTO, UM, A, A FORMULA, UM, THAT'S ROUGHLY PROPORTIONAL.

AND THAT'S WHAT WE'RE PROPOSING APPLYING TO THAT PART OF THE CITY THAT'S MIDDLE, UM, IN THE, IN THE MIDDLE AREA, NOT HIGH RESOURCE OR LOW RESOURCE.

DOES THAT ANSWER THE QUESTION? IT DOES.

UH, AND THEN JUST A COUPLE OF MORE, AND THIS MORE, THESE ARE MORE, UM, UH, A LITTLE BIT MORE JUST CLARIFICATION.

SO, UH, ON SLIDE 12, WHEN YOU SAID TO ADD A PROVISION THAT ALLOWS CITY STAFF FLEXIBILITY TO ROUND FRACTIONAL UNITS ACROSS INCOME LEVELS, UM, AND SO IT WAS THE IDEA OF LIKE THE 0.2, YOU KNOW, VERY LOW 0.4, LOW INCOME 0.2, YOU BASICALLY WOULD KIND OF,

[00:25:01]

UH, YOU WOULD, YOU KNOW, ADD THOSE TOGETHER AND BE LIKE, IT MAKES ONE UNIT AND THEN YOU WOULD CHOOSE HOW YOU WOULD ALLOCATE THAT.

UM, IS THIS JUST A RECOMMENDATION THAT POTENTIAL, LIKE IS THIS JUST AN EXAMPLE TO SAY, OKAY, WE COULD MAKE THAT ONE MODERATE UNIT, OR ARE YOU SAYING THAT LIKE, HEY, IF WE HAVE THESE KIND OF FRACTIONAL UNITS, WE WANNA MAKE IT ONE MODERATE, OR WOULD THIS KIND OF DEPEND ON THE PROJECT? SO IT'S GONNA DEPEND ON THE PROJECT, BUT WHEN YOU HAVE, YOU KNOW, THREE DIFFERENT INCOME LEVELS, WE'RE GONNA END UP WITH FRACTIONAL UNITS, RIGHT? IN MANY CIRCUMSTANCES.

SO, UM, WE NEED TO COME UP WITH A WAY TO DEAL WITH THAT.

UM, I THINK IN MOST CIRCUMSTANCES YOU WOULD COMBINE THOSE FRACTIONAL UNITS INTO THE, UM, THE, THE BAND WITH A SLIGHTLY HIGHER, UM, INCOME LEVEL.

SO IN THIS, THAT'S WHY IN THE EXAMPLE, THEY BECOME ONE MODERATE UNIT.

UM, AND THE REASON FOR THAT IS THESE FORMULAS, UM, DERIVED FROM A MAXIMUM, WE'RE, WE'RE EXTRACTING THE SORT OF MAXIMUM LEVEL OF, UH, INCLUSIONARY ON THESE PROJECTS.

SO IF WE WERE TO ROUND IN THE OPPOSITE DIRECTION, UM, YOU KNOW, SAY THAT THAT ADDS UP TO ONE VERY LOW INCOME UNIT, CONCEIVABLY YOU'RE PUSHING THAT PROJECT OUT OF THE REALM OF, UM, WHAT'S FEASIBLE AND WHAT'S SUPPORTED BY OUR PAST FINANCIAL ANALYSIS.

GREAT.

UH, AND THEN ONE LAST QUESTION WOULD BE ON SLIDE 14, UH, FOR THE PROPOSED POLICY MODIFICATIONS.

SO YOU SAID OWNERSHIP UNITS, YOU SAID ADD THE REQUIREMENT THAT UNITS MUST BE SOLD TO FIRST TIME HOME BUYERS, BUT I THOUGHT YOU SAID THE OPPOSITE, SO I MAY HAVE JUST MIS MIS MISHEARD.

SO THE IDEA WAS TO ADD THE, THE ADD THAT REQUIREMENT OR TO REMOVE IT? TO ADD THE REQUIREMENT.

OKAY.

IT'S NOT CURRENTLY IN THE POLICY.

THE IDEA HERE IS THAT, UM, WITHOUT THIS TYPE OF REQUIREMENT, WHICH IS REALLY COMMON FOR AFFORDABLE OWNERSHIP UNITS, TYPICALLY YOU DO HAVE TO SELL THEM TO FIRST TIME HOME BUYERS.

UM, IF WE DON'T HAVE THAT REQUIREMENT, WE ARE CONCERNED THERE'S POTENTIAL WHERE, UM, HOME BUYERS COULD EXPLOIT A LOOPHOLE AND SOMEONE WHO ALREADY OWNS A HOME AND WANTS TO PURCHASE A SECOND HOME COULD STILL QUALIFY THE WAY THAT INCOME IS TREATED, COULD STILL MEET THE INCOME QUALIFICATIONS AS A MODERATE HOUSEHOLD.

MM-HMM, , WITHOUT AN EXPLICIT RESTRICTION AS BEING A FIRST TIME HOME BUYER, UM, WE, WE WOULDN'T BE ABLE TO, UM, DENY THEM OR EXCLUDE THEM AS AN APPLICANT.

AND SO WE WANNA MAKE SURE THAT THESE GO TOWARDS FOLKS WHO DON'T ALREADY OWN REAL ESTATE, WHO DON'T ALREADY HAVE THAT ASSET, THAT GENERAL GENERATIONAL WEALTH TO STAY IN LINE WITH WHAT WE SEE AS THE INTENT OF THE POLICY HERE.

OKAY.

EXCELLENT.

THANK YOU.

THANK YOU.

VICE CHAIR AUSTIN.

QUESTIONS? COMMENTS? THANK YOU.

UM, I'LL KEEP MY COMMENTS SHORT.

UH, THANK YOU, UH, COUNCIL MEMBER RICK SODI, SHE GETS INTO THE DATA AND THE, THE WEEDS AS USUAL.

I APPRECIATE THAT.

BUT, UH, I, I WILL JUST ADD TO MY COMMENT THAT I'D LIKE TO, I'M, I'M VERY, VERY, UM, ENCOURAGED TO SEE THAT THIS, UH, POLICY IN SUPPORTIVE OF THIS POLICY BEING EXPANDED CITYWIDE, UM, YOU KNOW, OUTSIDE OF THE DOWNTOWN, UH, AREA THAT, THAT WAS ORIGINALLY, UM, INCLUDED HERE.

UM, I, I HAD QUESTIONS REGARDING THE ARENA NUMBERS.

IF YOU COULD GO BACK TO THE, THE MAP THAT YOU WERE ILLUSTRATED THAT SHOWED THE EXISTING PROJECTS, UM, THAT WERE IN THE PIPELINE, I GUESS, UH, I I WANNA BE CLEAR THAT THIS, THIS, THIS POLICY DOESN'T APPLY.

NOT THAT ONE.

THAT ONE, YEAH.

SO THIS POLICY DOESN'T APPLY TO THESE, THESE EXISTING PROJECTS OUTSIDE OF THE AREA ONE AND TWO, IS THAT CORRECT? SO CURRENT POLICY ONLY APPLIES IN AREA ONE A AND ONE B.

SO ALL OF THE PROJECTS, THOSE BLACK DOTS, UM, REPRESENT PROJECTS, UM, THAT ARE RECENTLY APPROVED OR IN CONSTRUCTION, INCLUDING THE TWO, UM, PROJECTS IN YOUR DISTRICT COUNCILMEN, UM, THAT WERE NOT SUBJECT TO INCLUSIONARY.

AND WHEN WE CHANGE REQUIREMENTS, THAT'S ON A GOING FORWARD BASIS.

SO EVEN A PROJECT THAT'S NOT YET BUILT, THAT WAS APPROVED ANYTIME BEFORE THAT ORDINANCE, IT'S SUBJECT TO THE RULES THAT WERE ON THE BOOKS THE DAY THAT IT WAS APPROVED.

SO WHEN WE APPLY NEW REQUIREMENTS, IT'S ONLY ON A GOING FORWARD BASIS TO NEW PROJECTS THAT ARE, UM, APPROVED AFTER THAT DATE.

THANK YOU.

I JUST WANTED TO GET THAT CLARIFICATION.

THIS, THIS MAP COULD HAVE BEEN A LITTLE, UM, MISLEADING.

UM, BUT IT DOES SAY THAT IN THE LEGEND .

UM, I, I DO WANNA JUST SAY HOW, HOW DOES THIS, UM, ARENA NUMBERS RIGHT NOW, WHERE ARE WE AT, UM, IN TERMS OF, UH, INCLUDING WHAT, WHAT YOU SEE ON THIS, THIS SLIDE HERE, UM, WHERE ARE WE AT IN TERMS OF MEETING OUR, OUR OBLIGATION AS A CITY? UM, THERE'S DIFFERENT WAYS TO THINK ABOUT THAT.

SO IT'S SORT OF A GLASS HALF EMPTY, GLASS HALF FULL.

SO, UM, WE ARE PRODUCING MORE HOUSING, UM, THAN ANY TIME SINCE THE 1980S,

[00:30:01]

INCLUDING RECORD NUMBERS OF AFFORDABLE UNITS.

SO I WOULD GIVE US AN A SOMEWHERE BETWEEN AN A MINUS AND AN A PLUS.

YOU CAN'T GRADE YOUR OWN PAPER.

YEAH, YEAH.

SO I AM GRADING MY OWN PAPER, BUT UM, WE'RE, WE'RE IN IT TOGETHER.

SO I WOULD SAY WE'RE DOING EXCELLENT.

UM, AND IF YOU LOOK AT THE PRIOR ARENA CYCLE, UM, THE, YOU KNOW, I THINK AT THE TIME THE CITY SAID WAS WAY TOO HIGH, UM, WE'RE EXCEEDING THAT LEVEL FROM THE PRIOR CYCLE, THIS CYCLE, UM, YOU KNOW, THE, THE STATE INCREASED OUR ALLOCATION BY MORE THAN 300%.

SO, UH, THIS IS THE HALF EMPTY PART OF THE GLASS, SO WE'RE NOT ON TRACK TO MEET THAT.

UM, WE'RE, WE'RE ON TRACK TO, TO COME OUT LIKE 50% OF, OF WHAT HAS BEEN ALLOCATED TO US ARENA WISE.

SO, UM, THERE'S SOME WORK TO BE DONE, BUT I WOULD SAY, UM, COMPARING US TO OTHER CITIES AND COMPARING US TO WHERE WE WERE JUST 10 YEARS AGO, UM, YOU KNOW, WE'RE DOING AN EXCELLENT JOB, BUT THERE'S STILL ROOM FOR IMPROVEMENT ON A GOING FORWARD BASIS.

AND, AND SO THIS, THIS SLIDE DOES NOT REFLECT THE NUMBER OF NEW HOUSING IN ONE B IN ONE A, IS THAT CORRECT? THAT'S, THAT'S CORRECT.

SO, UM, LAST YEAR THERE WERE AROUND A THOUSAND HOUSING STARTS AND ALMOST 3000 HOUSING UNITS APPROVED, BUT THIS IS JUST SHOWING, UH, PROJECTS OUTSIDE OF THE INCLUSIONARY AREA.

SO, UM, ONCE UPON A TIME, ALMOST ALL OF OUR PROJECTS WE'RE DOWNTOWN AND WE'VE DONE A GOOD JOB OF, UM, GETTING PROJECTS OUT OF THE GROUND ELSEWHERE, UM, WHETHER IT'S IN NORTH LONG BEACH, SOUTHEAST LONG BEACH, UM, CENTRAL LONG BEACH TO A LESSER DEGREE.

SO, UM, THAT'S PROGRESS AND, AND MORE WORK TO BE DONE IN THAT AREA.

AND, AND I THINK I KNOW THE ANSWER TO THIS, BUT I'M GONNA ASK IT JUST BECAUSE IT HAS TO BE ASKED.

UM, DO WE HAVE ANY ROOM IN OUR POLICY TO, TO INCREASE THE, THE INCLUSIONARY ZONING THRESHOLD THAT WE CURRENTLY HAVE? WE WOULD NOT RECOMMEND BASED ON THE ECONOMIC ANALYSIS DOING THAT.

UM, YOU HAVE A LEGAL ABILITY TO INCREASE THE REQUIREMENT ALL THE WAY UP TO 15%.

BUT WHAT THE ECONOMIC ANALYSIS SHOWS WAS THAT IF YOU WERE TO CHOOSE A NUMBER HIGHER THAN, THAN THE SCENARIOS THAT'S PRESENTED HERE, YOU WOULD GET FEWER PROJECTS, WHICH MEANS YOU'D ACTUALLY BE GETTING FEWER AFFORDABLE UNITS EVEN THOUGH THEY'RE AT A HIGHER PERCENTAGE, UM, RATE.

SO FOR EXAMPLE, YOU KNOW, 11% OF A THOUSAND, UM, IS 110, BUT, UM, UH, 11% OF 500, UM, YOU KNOW, IS GONNA BE LESS AND, AND SO ON AND SO ON.

SO THIS IS ALL BASED ON, UM, SOME WORK WE DID WITH KMA TO FIGURE OUT WHERE THAT SWEET SPOT IS.

MM-HMM.

.

UM, SO I STRONGLY RECOMMEND, YOU KNOW, YOU, YOU MAKE YOUR DECISIONS BASED ON THE FACTS, BUT YOU HAVE, I GUESS, THE LEGAL ABILITY TO IGNORE THE FACTS ALL THE WAY UP TO 15%.

SO I INTERPRET THAT ANSWER AS A YES, BUT, ALRIGHT.

THANK YOU SO MUCH DR.

RICK, DID YOU WANNA ADD TO THAT? YEAH, I WAS JUST GONNA ADD A LITTLE BIT OF CONTEXT AROUND, BECAUSE WE HAD, WE HAD THIS EXACT, SO COUNCILMAN ROSS, WE ACTUALLY HAD THIS EXACT CONVERSATION AT PLANNING COMMISSION AT THE TIME AS TO WHY WE, BECAUSE IT WAS THE DISCUSSION AROUND WHY WE WEREN'T GOING CITYWIDE AS OPPOSED TO WHY WE WERE JUST RE HAVING IT BE THE, THE ZONE ONE IDEA.

AND SO FOR EVERYBODY WATCHING THE, THE CONTEXT WAS EXACTLY THAT, RIGHT? WE DID NOT, OUR CONCERNS AROUND THE ECONOMICS WAS THAT AT THE TIME WE WEREN'T SEEING ANY DEVELOPMENT IN ANY OTHER PARTS OF THE CITY.

AND SO THE IDEA OF DEPRECIATING THE, THE, THE POSSIBILITY, RIGHT, OF, OR REDUCING THE POSSIBILITY OF HAVING AFFORDABLE UNITS OR DEVELOPMENTS IN OTHER, OTHER PARTS OF THE CITY WHEN WE WERE ONLY SEEING IT AT ZERO RIGHT? WAS SOMETHING THAT DIDN'T MAKE SENSE, RIGHT? AND SO I THINK TO LIKE, UM, DIRECTOR KUNZ'S POINT, RIGHT? THAT'S THE IDEA, IS THAT WHEN WE THINK ABOUT WHAT CAN THE MARKET CAN BEAR, THAT'S THE CONVERSATION THAT WE'RE HAVING, RIGHT? IS, IS TRYING TO FIND THAT SWEET SPOT AROUND WHAT OUR DEVELOPMENT COMMUNITY AND WHAT OUR MARKET WOULD ALLOW US TO DO SO THAT WE CAN MAXIMIZE THAT, BUT WITHOUT MAKING IT SUCH A POLICY SO STRONG THAT WE THEN PRECLUDE DEVELOPMENT IN THE EXACT AREAS THAT WE WANT IT.

SO THANK YOU.

I'LL JUST ASK A COUPLE QUESTIONS AND THEN WE'LL TAKE IT TO PUBLIC COMMENT AND BRING IT BACK HERE.

UM, ON SLIDE 13, CAN YOU TALK A LITTLE BIT MORE ABOUT THE LAND DEDICATION OPTION, UM, OF THE PROPOSED MODIFICATION? UM, WHAT THE BENEFIT OF GOING OUTSIDE OF THAT ONE MILE RANGES IN TERMS OF LIKE LESSONS LEARNED OF THAT SEEMS LIKE SOMETHING THAT WAS WORTHWHILE AT THE TIME AND HOW THAT MAY HAVE SHIFTED WITHIN, UH, THE DEPARTMENT'S VIEW? YEAH, SO IF IT'S OKAY WITH YOU COUNCIL MEMBER, WE'RE GONNA KIND OF STEP BACK AND EXPLAIN WHY WE EVEN HAVE A LAND DEDICATION REQUIREMENT, BECAUSE STATE LAW REQUIRES US TO HAVE A LAND DEDICATION OPTION.

SO

[00:35:01]

UNDER STATE LAW, WE DO HAVE TO OFFER, UM, WHAT ARE CALLED ALTERNATIVE MEANS OF COMPLIANCE, THE DEPARTMENT AND THE, THE CITY'S PREFERENCE IS ALWAYS, ALWAYS, ALWAYS FOR THE DEVELOPER TO BUILD THE UNITS.

UM, WE HAVE HAD NONE, ZERO, NOT AT ALL INSTANCES OF LAND DEDICATION.

SO I CAN'T TELL YOU ANY LESSONS LEARNED.

UM, WE LOOKED AT IT MORE IN A THEORETICAL BASIS THAT IF WE DID RECEIVE A LAND DEDICATION, UM, WE CURRENTLY IT HAS TO BE WITHIN, UM, ONE MILE OF THE PROJECT SITE.

UM, BUT SINCE, UH, WE'RE TRYING TO BE OPEN TO GETTING PROJECTS IN MODERATE AND HIGH RESOURCE AREAS, IF YOU, IF THE PROJECT WAS IN A LOW RESOURCE AREA, YOU WOULD BE LOCKING IN, UH, THE LOW RESOURCE LOCATION FOR THE LAND DEDICATION.

SO THAT'S THE REASON FOR THE CHANGE.

UM, IT WOULD BE MY GOAL THAT WE STILL WOULD NOT HAVE ANY LAND DEDICATION CASES, UH, COME FORWARD.

UM, BUT IT IS AN OPTION, UM, THAT, THAT WE'RE REQUIRED TO OFFER AND WE, UH, COMPLY WITH THAT REQUIREMENT.

SO, SO HAVING IT WITHIN THAT ONE MILE JURISDICTION, UM, AND LOOKING AT THAT ONE A AND ONE B GOES TO THAT POINT OF THE EQUITY PIECE AND THE OVERCOMING THOSE PATTERNS OF, OF SET SEGREGATION AND POLICY, UM, THAT LOCKS IN BAD PRACTICE OF THE PAST.

THAT'S CORRECT.

THAT'S WHAT I'M HEARING.

OKAY.

AND THEN, UH, IF WE COULD GO TO THE PUBLIC OUTREACH SLIDE.

I THINK THAT WAS SLIDE 15.

UM, SO YOU TALKED REALLY SPECIFICALLY, WE'RE GONNA HAVE STAKEHOLDER MEETINGS, UH, ESPECIALLY AROUND OUR DEVELOPERS.

UH, WE KNOW THAT OUR POLICIES, WE DON'T, WE DON'T BUILD HOUSING AND THE POLICIES THAT WE, UM, MAKE HERE EITHER ENHANCE OR COULD DETER DEVELOPMENT.

AND YOU JUST TALKED ABOUT OUR PREFERENCES THAT PEOPLE ARE BUILDING THOSE UNITS.

UM, SO YOU INTEND TO DO ONE THAT IS SPECIFICALLY FOR, UH, THE DEVELOPMENT COMMUNITY WHO HAVE PARTNERED WITH US IN HOUSING DEVELOPMENT? YES, THAT'S RIGHT.

WE SEE THEM AS, YOU KNOW, A STAKEHOLDER WITH A UNIQUE PERSPECTIVE.

WE WANNA MAKE SURE WE'RE HEARING THEIR FEEDBACK AND THEIR INPUT AND HAVING, YOU KNOW, GIVING THEM AN OPPORTUNITY TO UNDERSTAND THE RECOMMENDATIONS THAT WE'RE MAKING, WHY WE'RE MAKING THAT AND POTENTIAL CHANGES COMING UP.

AND SO WE FOUND IT WOULD BE MOST PRODUCTIVE TO HAVE A GROUP JUST WITH HOUSING DEVELOPERS, AGAIN, BECAUSE THEY'RE COMING FROM A UNIQUE STANDPOINT WHEN THEY'RE THINKING ABOUT THE IMPACTS OF THIS POLICY AND HOW THAT IMPACTS POTENTIAL DEVELOPMENTS THEY MAY DO WITH THE CITY IN THE FUTURE.

GREAT, THANK YOU.

AND THEN, UH, IF I RECALL, YOU SAID YOU'D HAVE GENERAL OPEN HOUSE TYPE MEETINGS FOR MEMBERS OF THE PUBLIC WHO ARE INTERESTED AND THAT AUGUST 15TH PLANNING STUDY SESSION IS JUST THAT CORRECT.

A STUDY SESSION, THERE'S NO VOTE, PLANNING ISN'T TAKING ACTION.

SO THAT WOULD BE ANOTHER OPPORTUNITY, UH, FOR FOLKS FORMALLY TO GO ON THE RECORD WITH THE PLANNING COMMISSION WITH THEIR, UM, IDEAS AND THOUGHTS AROUND THIS.

THAT'S CORRECT.

BLESS YOU.

BLESS YOU.

THANK YOU.

UM, I THINK THAT'S ALL I HAD FOR NOW, WE COULD TAKE IT TO PUBLIC COMMENT, PLEASE, MADAM CLERK, IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW.

OKAY.

OKAY.

GOOD MORNING, MR. KENY.

AFTERNOON.

IT'S GOOD AFTERNOON.

I JUST GOT MY COFFEE FROM WILLY'S, UH, HERE ON THE CORNER.

UM, LOCAL CAMBODIAN, UH, COFFEE SHOP POP UP, SO YOU WANNA SUPPORT, UH, IT'S PRETTY GOOD.

THEY DIDN'T HAVE ANY BUTTER THOUGH, SO I TOLD 'EM YOU HAVE ONE WEEK AND THEN I'LL PUT YOU ON THE HIT LIST, UM, WITH RELATION TO THIS, UM, STAFF REPORT.

THANK YOU.

UH, I'VE SEEN IT ALREADY, BUT I'M JUST GONNA PRETEND LIKE I DIDN'T SEE IT.

THANK YOU FOR DOING IT.

IT'S GREAT.

UM, I'M GONNA HAVE TO PUSH BACK ON A FEW THINGS THAT I SAW.

IT WAS A GREAT REPORT.

UM, BUT IN THE, THIS QUESTION AND ANSWER, UM, FOR ONE, WE NEED TO STOP ALIENATING THE DEVELOPERS, UH, FROM COMMUNITY AND STAKEHOLDERS.

I THINK THAT THAT IS, UH, NOT IN IN THE SERVICE OF COMMUNITY.

I'M ON A CASE IN POINT AND ON MY BOSS SHOOT, SPEAK TO ME LATER, BUT LIKE, THERE'S A CERTAIN DEVELOPER RIGHT NOW ON PCH THAT JUST OPENED A COMPLETE NEW BUILDING, RIGHT, THAT THEY DON'T HAVE, THEY'RE HAVING ISSUES WITH LEASING UP BECAUSE THEY HAVE NO RELATIONSHIP WITH THE COMMUNITY AND STAKEHOLDERS.

SO IF WE KEEP DOING THIS THING WHERE WE ALLOW PEOPLE TO SEGREGATE DEVELOPMENT FROM THE PEOPLE WHO ARE GONNA LIVE IN THE DEVELOPMENT, WE'RE GONNA CONTINUE TO HAVE THESE TYPE OF INTERACTIONS.

JUST A SUGGESTION, UM, WITH RESPECT TO I, I BORN AND RAISED IN, UH, ONE B, UH, , SO THAT LONG BEACH BOULEVARD CORRIDOR, I'M VERY WELL FAMILIAR TO.

I LIVE ACROSS THE STREET FROM A 294 UNIT DEVELOPMENT THAT'S COMING OPEN.

[00:40:01]

AND I LIVE NEXT DOOR TO 57 UNIT DEVELOPMENT AND DOWN THE STREET FROM, UM, UH, ET CETERA OF ONCE I THINK THAT WE'RE DOING A DISSERVICE TO THE CITY WITH RESPECT TO, UH, THIS MONOPOLY OF CERTAIN DEVELOPERS.

I THINK, YOU KNOW, TOMORROW, ME AND, UH, MY BOSS, WE ARE DOING A, UH, DRIVE AROUND FOR ABOUT TWO HOURS WITH PRIVATE EQUITY PEOPLE WHO DON'T, WHO AREN'T A PART OF THAT, THAT, UH, TRUSTED CABAL, YOU KNOW? AND SO, UM, PEOPLE IN LA THEY WANT TO DEVELOP IN THIS, IN THE CITY, THEY JUST DON'T KNOW ABOUT IT.

AND BECAUSE THEY'RE NOT BLANK, BLANK, BLANK, THEY'RE NOT BEING INVITED.

SO IF THEY'RE INVITED, THEY'LL COME.

WAYS TO INVITE THEM WOULD BE, I, FIRST OF ALL, I BELIEVE IN 20% INCLUSIONARY HOUSING.

I KNOW YOU SAID WE CAN'T, UH, ECONOMICALLY STOMACH IT.

I WOULD LOVE TO SEE THE PUBLIC DATA THAT SUGGESTS THAT, UM, THE VOUCHERS HERE ARE TOO LOW.

WE'RE NOT COMPETITIVE ENOUGH WITH LA IN ORDER TO ENTICE PEOPLE TO DEVELOP HERE.

IF WE BROUGHT UP, IF COMMUNITY DEVELOPMENT AND THE HOUSING AUTHORITY MET UP AND TRIED TO INCREASE OUR VOUCHERS, WE WOULD GET A LOT MORE MIXED INCOME DEVELOPMENTS.

THANK YOU.

THANK YOU, MR. SUZA.

GOOD AFTERNOON, NOT EVENING.

GOOD AFTERNOON.

UM, I'M MEMBERS OF THE CITY COUNCIL.

MY NAME'S JAMES SUAZO.

PRONOUNS ARE HE AND HIM.

UH, I'M THE, A RESIDENT OF THE SIXTH DISTRICT AND EXECUTIVE DIRECTOR WITH LONG BEACH FORWARD.

UM, AND, UM, LOOKING FORWARD TO THIS CONVERSATION AND JUST WANT TO EXPRESS OUR SUPPORT FOR INCLUSIONARY ZONING.

THIS HAS BEEN A POLICY AND A SOLUTION TO OUR HOUSING CRISIS THAT WE'VE BEEN SUPPORTIVE OF SINCE THE INCEPTION MANY YEARS AGO.

SO IT WAS FUN TO HEAR THE PRESENTATION AND THINK ABOUT SOME OF THE HISTORICAL REFLECTIONS ON IT.

UM, AND IT REALLY, I THINK WE'RE AT AN EXCITING POINT.

I WANT UPLIFT ONE OF THE POINTS OF THE PRESENTATION SAYING THAT THIS IS A REAL OPPORTUNE TIME FOR US TO REVISIT NOT JUST THE REQUIREMENTS AND OPPORTUNITIES THAT EXIST ACROSS THE CITY, BUT ALSO FOR US TO, I THINK RE REMEMBER THAT INCLUSIONARY ZONING, UM, IS A GREAT SOLUTION AND AT THE SAME TIME NOT A SILVER BULLET TO OUR HOUSING CRISIS.

AND SO, UM, I THINK THERE'S A LOT OF PROMISE IN LOOKING AT THE OPTIONS AND THE EQUITY SOLUTIONS, BUT ALSO UNDERSTANDING THAT WE'RE TALKING ABOUT UNDOING GENERATIONS OF POLICIES AND DECISIONS THAT HAVE CREATED AND SHAPED THE COMMUNITIES, UM, ESPECIALLY IN 9 0 8, 0 6, UM, THAT THE, AND THE WAY THEY LOOK NOW, RIGHT? AND SO, UNDERSTANDING THAT EVEN AS WE'RE LOOKING AT MIXED INCOME, WE WANT TO ENSURE THAT FOLKS WHO LIVE IN 9 0 8 0 6, UM, CAN CONTINUE TO DO THAT.

AND THE GREAT THING ABOUT THIS POLICY IS THIS IS, UH, FORWARD LOOKING AND FUTURE LOOKING.

SO THINKING ABOUT HOW DO WE USE THIS POLICY WHERE, DEPENDING ON WHERE WE GO, UM, TO THINK ABOUT THE OTHER, UM, SOLUTIONS AND POLICIES AND TENANT PROTECTIONS AND OPPORTUNITIES THAT EXIST WITHIN OUR CITY TO REALLY STRENGTHEN OUR TENANT PROTECTION POLICIES AND THINK ABOUT, UM, CREATING A WIDE SPECTRUM OF POLICY SOLUTIONS TO COMBAT DISPLACEMENT, ANY FEATURE GENTRIFICATION, AND ENSURE THAT EVERYONE, REGARDLESS OF THEIR INCOME LEVEL, CAN CALL LONG BEACH, UH, A SAFE AND HEALTHY PLACE TO LIVE.

SO, LOOKING FORWARD TO ALL THE CONVERSATIONS AND THANK YOU TO THE STAFF FOR THE INFORMATION.

AND, UH, WE LOOK FORWARD TO WORKING TOGETHER ON THIS.

THANK YOU.

THANK YOU.

ANY OTHER PUBLIC COMMENT? ANY OTHER COMMENTS FROM MY COLLEAGUES BEHIND THE RAIL? OKAY.

UH, I WANNA THANK THE STAFF, UH, AND THE TEAM FOR DOING THIS AS WELL.

ACTUALLY, I HAD ONE MORE QUESTION.

SO THE PROPOSED OPTION C, IS THERE ANYTHING LIKE IT IN SURROUNDING CITIES IN THE REGION WITH THAT 19% AS THE, JUST CURIOUS HOW IT, AS YOU, AS YOU WERE THINKING ABOUT IT, WHAT YOU LOOKED AT, NOT IN SURROUNDING CITIES, BUT THERE'S SOME BAY AREA EXAMPLES THAT ARE SIMILAR.

COUNCILMAN NEWSO? UH, JUST ONE LAST QUESTION.

SO THIS IS JUST KIND OF A PRACTICALITY.

SO I KNOW ONE OF THE THINGS THAT WE TALKED ABOUT BEFORE WAS JUST MAKING SURE THAT LIKE, FROM A PRACTICAL STANDPOINT, UM, WE WERE TRYING TO HAVE BASICALLY KIND OF THE SAME SPECIFICATIONS AROUND AFFORDABLE HOUSING ACROSS THE CITY.

AND SO OBVIOUSLY OPTION C WOULD MAKE THAT THOSE REQUIREMENTS VARY IN DIFFERENT LOCATIONS DEPENDING ON THOSE OPPORTUNITY ZONES.

CAN YOU SPEAK TO A LITTLE BIT OF JUST LIKE OPERATIONALIZING THIS, RIGHT? LIKE HOW DIFFICULT IS THAT MANAGEMENT PROCESS FROM A CITY STAFF'S PERSPECTIVE? AND THEN ALSO FROM THE IDEA OF LIKE DEVELOPMENT PERSPECTIVES, KIND OF HEARING ABOUT, LIKE, I THINK, YOU KNOW, AS THE, THE CO THE PUBLIC COMMENT WAS AROUND LIKE OUR COMPETITIVENESS, LIKE HOW WE'RE ATTRACTING THE DEVELOPMENT COMMUNITY.

CAN YOU TALK A LITTLE BIT ABOUT THAT? UM, SO WE WILL MEET THE CHALLENGE, BUT THERE WILL BE CHALLENGES, UH, WITH OPTION C.

SO I WOULD SAY INTERNALLY IN THE DEPARTMENT, UM, ALL OF THE POLICY STAFF AND THE FOLKS THAT ARE CLOSEST TO THE NUMBERS AND THE NEEDS, UH, YOU KNOW, VOTED FOR OPTION C AND THERE WAS ONE VOTE FOR OPTION B, WHICH WAS, UH, MYSELF, JUST BECAUSE, UH, WHEN YOU HAVE ONE POLICY, YOU CAN EXPLAIN IT, UH, TO PROPERTY OWNERS AND THE PUBLIC, THEY CAN UNDERSTAND IT AND YOU CAN APPLY IT AND NOT MAKE MISTAKES.

UH, SO

[00:45:01]

UNDER OPTION, UM, C THERE'S THREE BANS, BUT WE'LL ACTUALLY HAVE SIX DIFFERENT VERSIONS OF INCLUSIONARY RUNNING AT THE SAME TIME BECAUSE WE WILL HAVE TO PHASE THESE REQUIREMENTS IN OVER TIME.

UM, BUT WE WON'T BE PHASING THEM IN IN AREAS ONE A AND ONE B INSTEAD, THEY'LL BE KIND OF FULLY LOADED IN IN YEAR ONE.

BUT THERE'S PORTIONS OF ONE A AND ONE B IN THE DIFFERENT BANDS.

SO IT WILL BE COMPLICATED.

THERE'LL BE SIX DIFFERENT SORT OF FORMULAS RUNNING, UM, ALL AT THE SAME TIME, AT LEAST FOR THE FIRST THREE YEARS.

SO, UM, THE GOOD NEWS IS WE'RE NOT DOING THIS WITH PEN AND PAPER.

IT'LL ALL BE PROGRAMMED INTO THE PERMIT SYSTEM AND INTO OUR GIS SYSTEM, AND WE WILL, UM, YOU KNOW, WE WILL APPLY WHATEVER REQUIREMENTS, UM, COUNCIL GIVES ITS FINAL BLESSING TO, UM, IT WILL MAKE IT MORE COMPLICATED BOTH TO EXPLAIN AND TO ADMINISTER AND TO UNDERSTAND.

UM, BUT, BUT WE'LL MEET THOSE CHALLENGES.

BUT THAT, THAT IS, IS ONE OF MANY CONSIDERATIONS TO, TO THINK ABOUT.

AND THEN I HAD ONE KIND OF FOLLOW UP QUESTION TO THAT THEN.

SO SINCE THESE OPPORTUNITY ZONES ARE DESIGNATED BY THE STATE OR THE FEDERAL GOVERNMENT, UH, SO THEY'RE DESIGNATED BY THE STATE THROUGH THE TAX CREDIT ALLOCATION COMMITTEE, TCC AFFECTIONATELY CALLED BASED ON FEDERAL DATA, SO WITH A STATE DETERMINATION, BUT IT'S BASED ON, UM, CENSUS AND OTHER ECONOMIC DATA.

UM, AND SO OBVIOUSLY WE'D BE, IF, IF THE COUNCIL WERE TO GO WITH OPTION C, WE'D BE BASING THAT ON THE CURRENT DESIGNATION OF OPPORTUNITY ZONES.

BUT IT'S POSSIBLE THAT THOSE OPPORTUNITY ZONES RIGHT DESIGNATION COULD CHANGE, BUT AT THAT POINT, THE COUNCIL WOULD HAVE TO DECIDE IF THEY WANTED TO REVISIT THE ISSUE SINCE PART OF THAT RECOMMENDATION IS BASED ON THE CURRENT OPPORTUNITY ZONES.

YEAH, WE'D HAVE TO TAKE THE MAP THAT EXISTS FROM THE STATE TODAY AND ADOPT IT.

I THINK THE ALTERNATE TO JUST, WE, I DON'T THINK FROM AN ADMINISTRATIVE STANDPOINT WE COULD HAVE IT AUTOMATICALLY CHANGE.

IT DOESN'T CHANGE.

OFTEN IT HAPPENS, YOU KNOW, WHEN CENSUS THIS DATA IS UPDATED.

BUT I THINK WE WOULD HAVE TO UPDATE AS AN ACTIVE, UM, OUT ACTION BY A FUTURE COUNCIL, UM, AFTER THE, UM, 2030, UM, CENSUS, UM, COMES OUT AND SOME OF US WILL PROBABLY BE RETIRED, SO SOMEONE WILL FIGURE THAT OUT.

BUT, UM, I THINK THIS WOULD BE OUR, OUR MAP THROUGH AT LEAST, UH, LIKE 2032, JUST BASED ON WHEN THE DATA COMES OUT AND GETS MAPPED AND ALL OF THOSE THINGS.

AH, SO IT SOUNDS LIKE DIRECTOR KONZ WILL BE LIKE AROUND 2032.

SOUNDS LIKE A GOOD RETIREMENT DATE FOR ME, SO I WON'T HAVE TO DEAL WITH THAT, BUT THANK YOU.

YEP.

AGAIN, THANK YOU TO STAFF.

I THINK THERE'S AN OPPORTUNITY IN THIS TIMELINE.

UM, COUNCIL MEMBER AUSTIN AND I WERE JUST LOOKING AT IT TO START HAVING SOME OF THOSE EDUCATIONAL CONVERSATIONS WITH OUR COMMUNITIES.

UM, WE KNOW THAT WHEN FOLKS SEE A MAP LIKE THAT OPPORTUNITY MAP, AND I APPRECIATE YOU CLARIFYING THAT THOSE ARE SET BY THE STATE.

THEY MAY NOT FEEL NECESSARILY LIKE THEY LIVE IN THAT SPACE, BUT THAT IS THE HARD DATA THAT, THAT WE CAN SHOW THAT.

UH, YEAH.

AND EVEN THE NOMENCLATURE, JUST TO BE CLEAR, COMES FROM THE STATE, NOT FROM US.

SO NO ONE HERE AT THE STAFF TABLE, WE SOMETIMES GET FEEDBACK FROM THE PUBLIC.

WE'RE NOT PASSING JUDGMENT.

WE'RE NOT SAYING THAT COMMUNI, YOU KNOW, IT'S LABELED LOW RESOURCE ON THE MAP, BUT THAT DOESN'T MEAN THAT IT'S AN UNDESIRABLE COMMUNITY OR THAT THEY, IT'S NOT FULL OF COMMUNITY RESOURCES AND NONPROFITS AND CHURCHES AND, UM, COMMUNITY FABRIC.

IT'S JUST BASED ON NUMBERS THAT COME FROM THE STATE.

THAT'S, THAT'S HOW IT'S LABELED ON THE MAP.

GREAT, THANK YOU.

UM, I THINK THAT CONCLUDES DISCUSSION.

IF WE COULD TAKE A VOTE AND WE LOOK FORWARD TO THE PROCESS MOVING FORWARD.

THANK YOU COUNCILOR.

RICK SODE IS DESPERATELY TRYING TO BE, I I'M GONNA DO A WA I'M GONNA DO A WAVE OFFERING HERE.

YES, RECEIVED, RECEIVED.

MOTION CARRIES.

THANK YOU.

THANK YOU MADAM CLERK, IF YOU COULD READ THE NEXT ITEM, PLEASE.

ITEM THREE IS A RECOMMENDATION TO RECEIVE AND FILE A STAFF REPORT ON POLICY OPTIONS FOR FACILITATING MISSING MIDDLE HOUSING SCENE.

GREAT.

DIRECTOR KOONTZ, I'LL KICK IT TO YOU.

ALRIGHT, I WANNA INTRODUCE ONE OF OUR, UH, NEWEST MOTION STAFF MEMBERS.

OUR, UH, NEWEST, UH, MEMBER OF THE MANAGEMENT TEAM, DONALD TAYLOR PATTERSON, WHO IS OUR CURRENT PLANNING OFFICER, AND PRIMARILY DOES ENTITLEMENT,

[3. 24-53816 Recommendation to receive and file a staff report on policy options for facilitating Missing Middle Housing.         Suggested Action: Approve recommendation. ]

BUT THANKFULLY FOR US, HAS A LOT OF BACKGROUND IN THIS SUBJECT, UM, OF BOTH MISSING MIDDLE HOUSING AND PARTNERSHIPS, UM, TO CR WITH EDUCATIONAL PARTNERS AND OTHERS, UM, TO CREATE NEEDED HOUSING.

SO DONALD, TAKE IT AWAY.

ALRIGHT, THANK YOU CHRISTOPHER.

AND, UH, THANK YOU COUNCIL MEMBERS

[00:50:01]

FOR ALLOWING US TO PRESENT AND DISCUSS, UH, THIS VERY IMPORTANT TOPIC.

UH, SO JUST TO, TO START US OFF, UM, FOR SOME CONTEXT AND LEVEL SETTING, WE JUST WANTED TO GIVE YOU A QUICK, UM, HISTORY OF LONG BEACH.

UM, AND THEN WE'LL, WE'LL WALK THROUGH WHAT WE EVEN MEAN BY MISSING, MISSING MIDDLE HOUSING.

UM, WE'LL WALK THROUGH WHAT LONG BEACH IS CURRENTLY DOING, SOME OF THE CHALLENGES, AND THEN WE'LL END WITH, UH, POTENTIAL OPTIONS, UM, MOVING FORWARD.

UM, SO SINCE, UM, WILLIAM WILMORE FIRST DEVELOPMENT IN 1881, UM, LONG BEACH HAS BEEN A HOME TO A MIX OF HOUSING TYPES, UM, COTTAGES, UH, COURTS, CABINS, UM, WERE ALL BEING MARKETED TO RESIDENTS AND TOURISTS ALIKE.

UM, BY 1910, WE STARTED TO SEE MORE OF THESE, UH, TWO AND THREE STORY APARTMENT BUILDINGS, UM, THAT YOU'LL SEE DOWNTOWN AND OTHER PARTS OF THE CITY, UM, POPPING UP, UM, TO, UH, ADDRESS THE NEED FOR, FOR MORE HOUSING.

UM, BETWEEN 1900 1930, UM, WE STARTED SEEING, UH, MORE CREATIVE, UH, WAYS OF, OF DENSIFYING.

UM, SO DUPLEXES, UH, TOWN HOMES, UH, MULTIPLE, SINGLE, SINGLE FAMILY DWELLINGS ON A SINGLE PROPERTY, UM, TRIPLEX, FOURPLEX, UM, THAT LOOKED LIKE SINGLE FAMILY HOMES.

ALL WERE BEING DEVELOPED AROUND THAT PERIOD AS WELL.

UM, AND THIS MIX OF SINGLE AND MULTIFAMILY DEVELOPMENT, UM, REALLY CHARACTERIZED, UH, UH, DEVELOPMENT IN THE CITY, UM, UNTIL 1940.

UM, WE ALSO SAW A LOT OF WHAT WE WOULD CONSIDER ADUS NOW, OR ACCESSORY DWELLING UNITS, UM, DURING THAT PERIOD BETWEEN 1897 AND 1940.

UM, BUT BEGINNING AROUND 1940, UM, IN, IN THE 1950S AS WELL, UM, WE STARTED TO SEE A SHIFT, UM, TO, UH, MORE BIFURCATED ZONING SYSTEMS. SO ONE IN WHICH SINGLE USES, UM, WERE WERE SEPARATED.

SO YOU HAD SINGLE FAMILY HOMES IN ONE AREA, BUSINESSES IN ANOTHER COMMERCIAL, ET CETERA.

UM, AND RESPONDING TO A NUMBER OF CHALLENGES, UM, THAT BEGAN TO ARISE, UH, THE CITY, UH, LOOSENED, UH, MULTI-FAMILY DEVELOPMENT RULES IN THE 1970S AND EIGHTIES.

UM, AND WE SAW SOME VERY NEGATIVE IMPACTS FROM THAT.

THIS IS OFTEN REFERRED TO AS THE CRACKER BOX ERA.

LOTS OF, UM, THESE TYPES OF APARTMENT BUILDINGS THAT WERE VERY UNSIGHTLY, UM, STARTED POPPING UP AROUND THE CITY.

UM, SO IN RESPONSE TO THAT, UH, 1989, THE CITY, UH, SEVERELY RESTRICTED ALL DEVELOPMENT, UM, IN A PERIOD OF RETRACTION, UM, THAT WASN'T SYSTEMATICALLY ADDRESSED UNTIL THE DOWNTOWN PLAN AMENDMENTS IN 2012, UM, AND THE LAND USE ELEMENT IN 2019.

UM, SO IF YOU LOOK AT THIS CHART ON THE RIGHT, YOU'LL SEE, UM, BEGINNING AROUND 1990, THERE'S A, A SEVERE DROP OFF IN THE NUMBER OF HOUSING UNITS THAT WERE CREATED.

UM, BUT IF YOU, YOU, IT'S SORT OF HARD TO SEE, BUT, UM, THE LITTLE TEXT THERE SAYS, UH, POPULATION, YOU KNOW, INCREASED 21%, UM, WHILE HOUSING UNITS ONLY INCREASED, UH, JUST ABOUT 5% OR JUST ABOUT, UH, 9%.

SORRY.

UM, WE ALSO WANTED TO QUICKLY, UH, JUST WALK YOU THROUGH CONSTRUCTION TYPES.

UM, AND I'LL, I'LL, I'LL GET TO THE REASON FOR THIS IN A MINUTE, BUT, UM, AT A VERY HIGH LEVEL, UM, THERE ARE FIVE GENERAL CONSTRUCTION TYPES, TYPE ONE BEING YOUR, UM, LEAST COMBUSTIBLE HIGH FIRE RESISTANT RATING.

THIS IS WHAT YOU'LL SEE IN SKYSCRAPERS, STEEL BUILDINGS, UM, ALL THE WAY DOWN TO TYPE FIVE, WHICH IS YOUR TRADITIONAL, UM, WOOD FRAME CONSTRUCTION.

SINGLE FAMILY HOMES, UM, ARE TYPICALLY BUILT, UM, WITH THIS MATERIAL.

UM, THIS IS JUST AN ILLUSTRATION OF THOSE DIFFERENT TYPES OF CONSTRUCTION.

UH, THE REASON WE BRING THIS UP IS, UH, MIDRISE CONSTRUCTION.

SO A LOT OF WHAT WE SEE IN THE MULTIFAMILY DEVELOPMENT TODAY, UM, IS TYPICALLY, UH, THREE OVER ONE OR 5 0 1 CONSTRUCTION, UM, WHERE YOU HAVE A, UH, A MORE FIRE RESISTANT BASE, UM, WITH A LOWER RATED, UM, MATERIAL ABOVE.

UM, THE REASON WE MENTION THIS IS BECAUSE THAT DOES CREATE SOME CHALLENGES, UM, IN CONSTRUCTION, WHICH, UM, RESULTS IN ADDED COSTS.

SO, UM, WATERPROOFING CONNECTING THE FLOORS, UM, ET CETERA, ADD A SIGNIFICANT COST TO THE PROJECT.

UM, AND THEY MAKE THESE TYPES OF PROJECTS MORE EXPENSIVE, UM, BOTH PER UNIT AND PER SQUARE FOOT THAN YOUR TYPICAL TYPE FIVE OR SINGLE FAMILY WOULD FRAME CONSTRUCTION.

ADDITIONALLY, UM, PARKING REGULATIONS, UM, CAN BE A PRETTY SIGNIFICANT CHALLENGE ON MULTIFAMILY HOUSING CONSTRUCTION AS WELL.

UM, WE SHOW THIS IMAGE ON THE RIGHT OF, UM, HISTORIC MIDRISE DEVELOPMENT IN ALAMEDOS BEACH, UM, BECAUSE MOST OF, IF NOT ALL OF THESE, UM, HOMES HERE, MULTIFAMILY HOMES WOULD NOT BE

[00:55:01]

LEGAL, UM, IN TODAY'S CODE.

UM, AND THAT'S NOT A, A LONG BEACH SPECIFIC THING THAT'S MOST OF AMERICA.

UM, AND PARKING ALSO ADDS CONSIDERABLE SPACE AND COST CONSTRAINTS TO, TO NEW DEVELOPMENT PROJECTS.

UM, SO WITH ALL OF THAT CONTEXT, WHAT IS, UH, MISSING MIDDLE HOUSING? UM, SO JUST TO, TO GET US ALL ON THE SAME PAGE, UM, MISSING MIDDLE CAN BE DESCRIBED BOTH AS A HOUSING TYPOLOGY.

SO, UM, IN THIS GRAPHIC HERE, YOU'LL SEE THAT'S ANYTHING BETWEEN A SINGLE FAMILY HOME OR MID-RISE BUILDING.

SO YOUR DUPLEXES, UM, COURTS, TOWN HOMES, MULTIPLEXES, ET CETERA.

A LOT OF THE, THE HISTORIC DEVELOPMENT YOU SEE IN LONG BEACH, UM, BUT MISSING MIDDLE CAN ALSO BE, UM, USED AS A HOUSING AFFORDABILITY TERM.

A LOT OF TIMES THESE ARE USED INTERCHANGEABLY.

UM, THEY AREN'T NECESSARILY ALWAYS THE SAME, BUT A LOT OF TIMES THEY DO FALL INTO THE SAME BUCKET.

SO MISSING MIDDLE WOULD BE SOMETHING BETWEEN YOUR SUBSIDIZED HOUSING.

UM, SO VERY LOW OR LOW INCOME HOUSING AND MARKET RATE.

UM, SO AS YOU, UH, HEARD IN THE LAST PRESENTATION ARE PROBABLY AWARE, UM, UH, LONG BEACH IS, UM, THERE'S A NEED FOR OVER 4,000 UNITS ACCORDING TO THE LATEST ARENA CYCLE, UM, OF MODERATE INCOME HOUSING IN THE CITY.

UH, HOWEVER, CREATING THESE UNITS IS, IS QUITE DIFFICULT.

UM, I THINK COUNCIL MEMBER RICK ODI, I, I BELIEVE YOU MENTIONED, UM, YOU KNOW, MIDDLE INCOME HOUSEHOLDS IN, UH, LOS, IN LOS ANGELES COUNTY DON'T EARN ADEQUATE INCOMES TO AFFORD HOME OWNERSHIP OR THESE MORE LUXURY PRODUCTS, BUT THEY ALSO ARE NOT ELIGIBLE FOR STATE AND FEDERAL HOUSING PROGRAMS. SO THEY PUTS THEM IN A BUCKET OF, UH, OF, OF, IT'S A VERY HARD POSITION TO BE IN WHERE YOU CAN'T GET FEDERAL ASSISTANCE AND YOU CAN'T AFFORD WHAT'S BEING PRODUCED BY THE MARKET.

UM, AND THESE REGULATORY CONSTRAINTS AND DEVELOPMENT MARKET, UH, MARKET CONDITIONS, UM, ALSO DISINCENTIVIZE NEW PRIVATE, MODERATE INCOME HOUSING DEVELOPMENT DEVELOPERS, UM, DO NOT SEE A PURPOSE IN IN BUILDING THAT TYPE OF HOUSING IF THEY CAN'T MAKE MONEY.

UM, AND LIKE, AND ADDITIONALLY, THERE AREN'T THE, UH, FEDERAL OR STATE TOOLS TO SUPPORT THEM IN DOING THAT.

UH, SO WHO NEEDS MISSING MIDDLE HOUSING IN LONG BEACH? UM, BASED ON THE, THE LATEST CENSUS DATA, THIS IS FROM 2022, UM, THERE ARE MORE THAN 22,000 HOUSEHOLDS OR ABOUT 60,000 PEOPLE IN LONG BEACH THAT FALL INTO THIS MODERATE INCOME CATEGORY.

UM, AND TRADITIONALLY IN A, A HEALTHY HOUSING MARKET, UM, IN A WELL-PLANNED CITY, YOU DON'T NEED, UH, THIS TYPE OF INTERVENTION FOR, UM, MIDDLE DENSITY OR MIDDLE INCOME HOUSING.

UM, IT, IT TYPICALLY WOULD NATURALLY, UM, BE PRODUCED.

UM, HOWEVER, AS WE, AS WE MENTIONED, YOU KNOW, ZONING AND OTHER CHANGES OF 1940S AND FIFTIES SORT OF SHIFTED US AWAY FROM THAT.

UM, SO THIS WHOLE CONCEPT OF MISSING MIDDLE WAS COINED BY, UM, DANIEL PARAIC, UM, IN 2010.

UM, AND THERE HAVE BEEN LOTS OF CITIES THAT HAVE BEEN TRYING TO ADDRESS THIS, UM, EVER SINCE.

UM, SACRAMENTO, HERE IN CALIFORNIA, UM, HAS BEEN, UH, A LEADER IN THE STATE, UM, ADDRESSING THIS THROUGH ZONING AND OTHER INTER INTERVENTIONS.

UH, MINNEAPOLIS HAS ALSO BEEN IN THE MEDIA QUITE A BIT FOR THEIR, THEIR DIFFERENT TACTICS, UM, AT ADDRESSING THIS ISSUE AS WELL.

UM, AND YOU HAVE LOTS OF OTHER CITIES AROUND THE COUNTRY THAT ARE ALSO BEGINNING TO DEVELOP POLICY AND OTHER SOLUTIONS.

UM, HOWEVER, THEY'RE A LITTLE BIT TOO EARLY TO TO SEE RESULTS.

UM, BUT JUST TO GIVE YOU A QUICK, UM, OVERVIEW OF SOME OF THE THINGS THAT WE'RE SEEING IN OTHER PLACES, UM, IN SACRAMENTO, THEY RECENTLY PROPOSED, UM, SEVERAL POLICY RECOMMENDATIONS AIMED AT INCREASING, MISSING MIDDLE HOUSING, UM, INCLUDING REDUCING, UH, LOT DIMENSION REQUIREMENTS, UM, TO INCREASE ENTRY LEVEL HOME OWNERSHIP OPPORTUNITIES.

SO REDUCING THE, THE MINIMUM SIZE OF A LOT, UM, ALLOWING DUPLEX IN MULTI-UNIT DEVELOPMENTS BY RIGHT REMOVING, UM, FAR REQUIREMENTS AND ADOPTING A SLIDING FAR SCALE.

SO YOU'LL SEE IN THE DIAGRAM ON THE RIGHT, UM, WITH THAT ESSENTIALLY MEANS IS IT SORT OF DISINCENTIVIZES, MCMANSIONS OR OTHER VERY LARGE HOMES ON SMALL LOTS AND INCENTIVIZES, UH, DENSER DEVELOPMENT, UM, BY INCREASING THE, THE ALLOWABLE FAR, UM, OTHER BONUS INCENTIVES, UM, EXPLORING THE, UM, OPPORTUNITY, UH, FOR SALE OF ADUS, UM, THROUGH AB UH, 10 33, UM, AND EXPANDING, UH, EXISTING IMPACT FEES.

UM, THIS IS SPECIFIC TO, TO SACRAMENTO, BUT, UM, EXPANDING, UH, THOSE, THE FEE DEFERRAL PROGRAM TO INCLUDE SMALLER PROJECTS, UM, TO MAKE IT A LITTLE BIT EASIER ON DEVELOPERS WHO ARE WILLING TO BUILD THOSE.

UM, AND, AND MINNEAPOLIS AS WELL.

UM, THEY, THEY TRIED SOME OF THE SAME UM, POLICY OPTIONS AS WELL AS SOME, SOME, SOME NEW ONES AS WELL, INCLUDING, UH, TRANSIT ORDINANCE DEVELOPMENT.

UM, THEY ELIMINATED

[01:00:01]

PARKING MINIMUMS FOR NEW DEVELOPMENT PROJECTS.

UM, THEY, UH, ALLOWED DUPLEX AND TRIPLEX CONSTRUCTION ON ALL LOTS BY RIGHT, UM, TO SOME MIX SUC SUCCESS THERE.

UM, AND WHAT THEY SAW IS A, UH, PRETTY SIGNIFICANT GROWTH IN LARGE MULTI-UNIT PROJECTS.

SO, THE REASON I SAY MIXED SUCCESS IS, UM, A LOT OF THAT CAME FROM THE TRANSIT ORIENTED DEVELOPMENT, UM, THAT THEY ALSO, UH, IMPLEMENTED AROUND THE SAME TIME.

UM, BUT AS A RESULT OF ALL OF THESE DIFFERENT POLICY, UM, CHANGES, THEY SAW A 12% INCREASE IN HOUSING STOCK, UM, WITH ONLY 1% INCREASE IN RENT BETWEEN 2017 AND 2022.

UM, AND A 12% DECREASE IN HOMELESSNESS COMPARED TO A 14% INCREASE IN THE STATE OVERALL.

UM, SO THERE ARE A NUMBER OF DIRECT AND INDI INDIRECT CONSEQUENCES THAT OCCUR WHEN THERE'S A SHORTAGE OF MISSING MIDDLE HOUSING.

UM, THIS SHORTAGE DRIES UP THE COST OF ALL HOUSING, AS WE'RE, UH, VERY AWARE OF HERE IN CALIFORNIA.

UM, SOME FAMILIES THAT CAN, WILL MOVE OUT OF THE STATE.

UM, YOU SEE MORE OVERCROWDING.

UM, THESE IMPACTS ARE SIGNI SIGNIFICANT FOR LOWER INCOME, UM, COMMUNITIES IN PARTICULAR.

UM, AND WITHOUT, YOU KNOW, REG, IN LIGHT OF REG REGULATORY CONSTRAINTS AND A LACK OF COMPETITION, DEVELOPERS WILL PIVOT TO, TO FOCUS ON LUXURY, UM, AND SMALL SPECIALTY UNIT PROJECTS.

UM, SO SINCE ITS PEAK IN 2000, UH, THE CITY OF LONG BEACH HAS LOST ALMOST A THIRD OF ITS ADOLESCENT POPULATION.

UM, AND WE THINK THIS IS LIKELY DUE TO THIS INCREASING HOUSING SUPPLY STRAIN ON FAMILIES.

UM, YOU'LL SEE, UH, BETWEEN 2020 20, THAT WAS ABOUT 30%.

HOWEVER, BETWEEN 2010 AND 2020, UM, WHILE THE, THE NUMBER OF FAMILIES DECLINED ABOUT 10%, WE SAW AN INCREASE IN SINGLE PERSON HOUSEHOLDS, UM, BY ABOUT 11%.

UM, AND THESE HOUSING CONSTRAINTS, EXASPERATE OUTWARD MIGRATION TRENDS.

UM, IN 2020, OVER 725,000 PEOPLE LEFT THE STATE OF CALIFORNIA.

MANY GOING TO PLACES LIKE TEXAS, ARIZONA, NEVADA, OTHER, UH, NEARBY STATES WITH, UM, MORE, UH, AFFORDABLE HOUSING MARKETS.

UM, SO WE ARE BUILDING THIS TYPE OF HOUSING THAT WE SO DESPERATELY NEED, UM, BUT WE NEED MORE.

SO, UH, JUST TO SHOW YOU A COUPLE OF, UM, RECENT DEVELOPMENTS.

THE DAWSON, UM, DEVELOPED BY RD HOMES, I BELIEVE IT'S ABOUT 23 TOWN HOMES, TWO TO FOUR BEDROOMS, WHICH IS PARTICULARLY, UM, IMPORTANT FOR FAMILIES, WHICH, UH, CAN USUALLY CANNOT, UM, OCCUPY A A A A ONE BEDROOM OR A STUDIO APARTMENT, UM, WHICH TENDS TO BE A LOT OF, UH, LUXURY OR, OR NEW DEVELOPMENT THESE DAYS.

UM, 4,800 LONG BEACH BOULEVARD IS ANOTHER ONE.

CITY VENTURES, UM, 16 TOWN HOMES HERE, UH, 5,100 LONG BEACH BOULEVARD, ANOTHER 38 TOWN HOMES, UM, THREE BEDROOMS AS WELL.

UM, BIXBY WALK, ANOTHER 15.

UM, SO YOU'LL SEE WE, WE ARE BUILDING THESE PROJECTS, UM, UPTOWN, UH, TOWN HOMES AS WELL.

UM, HOWEVER, UM, WHILE WE'RE, WHILE THESE ARE, UM, HELPING, UM, YOU KNOW, WE WE'RE TRYING ALL THE, THE TOOLS THAT WE HAVE AT THE MOMENT.

SO ADUS, FOR EXAMPLE, ALSO HELP ADDRESS THIS MISSING MIDDLE ISSUE.

UM, BUT THEY'RE A DROP IN THE BUCKET COMPARED TO THE OVERALL NEED.

UM, HOWEVER, LONG BEACH IS A LEADER, UM, IN, UH, A DU PRODUCTION.

UM, LONG BEACH HAS BEEN RECOGNIZED, UM, AS, UH, YOU KNOW, UM, EXCEEDING I BELIEVE MOST OTHER CITIES IN THE STATE.

UM, SINCE 2018, UM, THE CITY'S PRODUCED OVER 1400 A DU UNITS COMPARED TO JUST 1559 IN THAT YEAR.

UM, AND THE CITY'S OVERALL, UH, ZONING UPDATES, UM, ALSO INCLUDE PROVISIONS TO SUPPORT MISSING MIDDLE HOUSING, UM, THROUGH REZONING TO IMPLEMENT THE LAND USE ELEMENT UPDATES TO THE CITY'S, UH, A DU AND, UM, SB NINE ORDINANCE, UM, OVERALL, UH, ZONING CODE REFORM.

UM, SO MAKING HOUSING DEVELOPMENT TRULY MYSTERIAL AND PREDICTABLE, UM, REGULATING UNIT MIX TO MORE TIGHTLY REQUIRE LARGER UNITS, UM, IMPLEMENTATION OF AB 2097, UM, AS WELL AS, UH, DIFFERENT, UM, UH, HOUSING ACTS, THE LONG BEACH RECOVERY ACT, UM, UH, FUNDED FIRST TIME HOME BUYER PROGRAMS. UM, AND THERE'S ALSO THE LBRA FUNDED, UH, COMMUNITY LAND TRUST PROGRAM AS WELL.

UM, SO AT THIS POINT, I'M GONNA TURN IT BACK OVER TO CHRISTOPHER TO TALK THROUGH, UM, SOME NEXT STEPS AND OPTIONS, UM, FOR ADDRESSING THIS VERY IMPORTANT ISSUE.

SO I THINK WE JUST JUMPED IN.

SO THE REASON WE'RE HAVING THIS PRESENTATION IS, UH, WHEN WE WERE DISCUSSING INCLUSIONARY AT THE FULL COUNCIL, UM, COUNCIL MEMBER, UM, ZENDEJAS AND COUNCIL MEMBER DUGGAN, WHICH I RECOGNIZE,

[01:05:01]

NEITHER OF WHICH ARE ON THIS COMMITTEE, BUT THEY ASKED FOR, UM, THIS TO BE PART OF THE NEXT STEPS AND THAT THERE TO BE A REPORT BACK.

BUT THIS IS THE COMMITTEE THAT HAS JURISDICTION.

UM, SO HERE WE ARE.

UM, SO, UM, YOU KNOW, WE'RE JUST PRESENTING INFORMATION.

THERE'S NOTHING, NOTHING ON THE TABLE AT THIS TIME.

WE JUST WANTED TO KIND OF UPDATE, UH, THE COMMITTEE ABOUT WHAT'S POSSIBLE.

UM, SO IN TERMS OF TOOLS, UM, YOU KNOW, YOU HEARD THE PREVIOUS PRESENTATION, THERE'S AN OPPORTUNITY TO INCLUDE MODERATE INCOME IN INCLUSIONARY.

UM, BUT THAT'S ONLY ONE OPTION.

UM, I DON'T HAVE THE ANSWER TODAY, BUT I KNOW SOMETHING, UM, WE'VE DISCUSSED COUNCILMAN AUSTIN AND, AND KIND OF AN ISSUE IN THIS CITY IS HOW DO WE CREATE EFFECTIVE DISINCENTIVES FOR PROPERTY OWNERS THAT LAND BANK OR HOLD ONTO THINGS AND DO NOTHING WITH THEM.

UM, YOU KNOW, WE HAVE EVERYONE IN LONG BEACH THINKS THEY HAVE A, A PARKING SHORTAGE, SO IT'S TRICKY TO ADJUST, UH, PARKING, UM, REGULATIONS.

BUT, UM, THERE IS AN ABILITY TO KIND OF RIGHTSIZE PARKING REGULATIONS AS A, A RELIEF MECHANISM FOR SOME OF THIS TYPE OF DEVELOPMENT.

WE'RE DOING, UM, THE ZONING REFORM WORK AS WE DISCUSSED.

UM, BUT THERE'S ALSO AN OPPORTUNITY, UM, SACRAMENTO, UM, IS DOING A LOT WITH NOT JUST CREATING THE ZONING, BUT REACHING OUT TO DEVELOPERS, UM, SHOWING WHAT, UH, MISSING MIDDLE HOUSING LOOKS LIKE, EVEN, YOU KNOW, PROTOTYPICAL DESIGNS.

AND I KNOW, UH, THE COUNCIL VI VISITS, UM, SACRAMENTO OFTEN TO TALK TO THE LEGISLATURE, BUT IF YOU EVER WANT TO TALK TO THE CITY, UM, TOM PACE IS THE CHRISTOPHER OF SACRAMENTO, AND I'D BE GLAD TO, UM, MAKE THAT INTRODUCTION IF YOU EVER WANTED TO SEE, UM, THIS POLICY WORK THAT THEY'RE DOING UP THERE.

UM, RIGHT NOW THERE REALLY AREN'T FINANCIAL SUPPORTS, UM, FOR MISSING MIDDLE HOUSING, BUT THAT'S ALWAYS SOMETHING WE CAN CONTINUE TO LOOK AT.

UM, SO THAT WAS ALL THE POSITIVE.

AND THEN, UM, THERE IS ANOTHER SIDE OF THE COIN, WHICH IS JUST TO SAY THE CITY HAS A, A VERY IMPORTANT ROLE, BUT THERE'S SOME THINGS HAPPENING AT THE STATE LEVEL THAT ALSO INHIBIT, UM, MIDDLE INCOME HOUSING.

SO, UM, IN CALIFORNIA CONSTRUCTION DEFECT, UM, LITIGATION IS A BIG REASON OF WHY WE DON'T SEE MORE CONDOMINIUMS IN TOWN HOMES.

SO, UM, IN OTHER STATES, YOU MIGHT HAVE TWO OR THREE YEARS TO BRING A LAWSUIT, UM, ABOUT A CONSTRUCTION DEFECT AFTER A BUILDER BUILDS A HOME.

UM, AND THE BURDEN IS ON YOU, THE PETITIONER, UM, IN CALIFORNIA, THE, UH, YOU HAVE 10 YEARS, UH, WHICH IS A VERY LONG PERIOD OF TIME.

UM, AND THE BURDEN OF PROOF IS A LITTLE BIT DIFFERENT HERE.

UM, SO IT, IT IS UNCOMMON FOR A CONDO BUILDING TO NOT EXPERIENCE A CONSTRUCTION DEFECT LAWSUIT.

UM, THAT'S NOT TO SAY EVERY SINGLE THING BUILT IS DEFECTIVE.

THAT IS JUST THE NATURE OF, UH, WHAT HAPPENS HERE.

AND BUILDERS HAVE TO BUDGET FOR THAT AND JUST ASSUME THAT THEY'RE GONNA PAY IT OUT IN YEAR 10.

UM, INSURANCE COSTS, THERE'S A LOT OF PROBLEMS IN THE INSURANCE, UH, MARKET.

UM, SO, YOU KNOW, JUST ONE PROJECT THAT WAS AN AFFORDABLE PROJECT THAT, THAT WE HAD TO RECAPITALIZE, UM, THEIR COST OF YEARLY, UM, INSURANCE ON A 70 UNIT BUILDING WENT UP BY $140,000 A YEAR.

SO THAT'S NOT, WHICH YOU CAN'T PASS ON IN AN AFFORDABLE PROJECT, BUT EVEN IN A MARKET RATE PROJECT, THAT'S NOT A SMALL AMOUNT.

AND THEN WE HAVE OTHER PROJECTS, UH, OR HAVING DIFFICULTY OBTAINING INSURANCE AT ALL.

UM, WE HAVE A, UH, SIGNIFICANT SHORTAGE OF SKILLED CONSTRUCTION LABOR.

UH, SO WHETHER THAT'S CARPENTERS OR ELECTRICIANS OR OTHERS THAT, UM, YOU KNOW, MAKE THESE PROJECTS POSSIBLE, UM, THERE'S A SHORTAGE OF THEM HERE IN CALIFORNIA.

UM, THEY'VE, UH, MANY OF THOSE FOLKS HAVE MOVED TO, UM, MORE AFFORDABLE PLACES.

SO IT'S A DOUBLE-EDGED SWORD.

UM, BUT WE ALSO HAVE AN ISSUE WITH OUR COMMUNITY COLLEGES, NOT ALWAYS, UM, OFFERING THESE PROGRAMS. SO THERE'S A LOT OF WORK, UH, TO BE DONE THERE.

UM, AND THEN IN OUR OWN BACKYARD, UH, WE HAVE A SHORTAGE OF BUILDING INSPECTORS.

UM, WE'RE WORKING WITH LBCC TO KIND OF IMPROVE THAT TRAINING, UM, PIPELINE.

BUT THAT ISSUE THAT EXISTS HERE IN LONG BEACH EXISTS THROUGHOUT THE STATE.

AND IF WE'RE GONNA BUILD MORE HOUSING, UH, WE HAVE TO MAKE IT SAFE AND WE HAVE TO HAVE PEOPLE, UH, TO INSPECT IT.

UM, AND THEN THERE'S A REGIONAL PLANNING ISSUE.

UH, I ENCOURAGE US TO BE EXCELLENT AND WE'LL CONTINUE TO BE EXCELLENT, BUT UNLESS OTHER JURISDICTIONS ARE ALSO DOING THEIR PART, IT DOESN'T REALLY WORK, UM, TO ADDRESS WHAT IS A REGIONAL SHORTAGE OF HOUSING.

UM, SO, UH, HOPEFULLY, UH, WE ALL TOOK AWAY FROM THIS PRESENTATION THAT INCLUSIONARY ONLY ONE TOOL TO ADDRESS MISSING MIDDLE HOUSING, UM, THAT THERE ARE SOLUTIONS, BUT THEY ALL HAVE TRADE-OFFS.

UM, SO THERE ARE COMMUNITY CONCERNS ABOUT PARKING AND STREAMLINING AND COMMUNITY CHARACTER AND TRAFFIC AND

[01:10:01]

CHANGE.

AND THOSE ALL, YOU KNOW, HAVE TO BE, UM, UH, BROUGHT TO THE TABLE AND CONSIDERED.

UM, BUT THE STRONGEST TOOL WE HAVE FOR ADDRESSING MIDDLE INCOME FAMILIES IS TO INCREASE HOUSING PRODUCTION OVERALL.

IT'S NOT A SPECIAL TOOL JUST FOR MIDDLE INCOME HOUSING, IT'S JUST INCREASING OUR OVERALL SUPPLY OF HOUSING.

UM, AND I THINK WE OPENED WITH HISTORY.

I LIKE HISTORY, UM, BUT WHEN YOU LOOK AT SOME OF THE GREAT, UM, BUILDINGS AROUND OUR CITY, IT REALLY GIVES US A GOOD LESSON INTO WHAT HAS WORKED IN THE PAST AND WHAT COULD WORK IN THE FUTURE, WHICH IS THESE BUILDINGS THAT ARE MULTIFAMILY BUT AREN'T NECESSARILY HUGE, AND THEY INTEGRATE WELL, UM, INTO NEIGHBORHOODS AND PROVIDE HOUSING OPTIONS FOR A LOT OF FOLKS.

UM, SO THE CITY ALONE CAN'T SOLVE THIS, UM, POLICY DILEMMA, BUT HOPEFULLY THIS GAVE YOU MORE INFORMATION ABOUT HOW IT COULD BE SOLVED, UM, WITH REGIONAL AND STATE PARTNERS.

AND WITH THAT, WE'RE READY FOR YOUR QUESTIONS.

THANK YOU.

COUNCIL MEMBER AUSTIN, ANY QUESTIONS? COUNCIL MEMBER RICK SODI.

I'M JUST, UH, I'M NOT PARTICULARLY FAMILIAR WITH, UM, LAND BANKING AND YOU SAID CREATING ADDITIONAL DIS DISINCENTIVES FOR LAND BANKING.

CAN YOU JUST TALK ABOUT THAT A LITTLE BIT? SO, SO, UH, TYPICALLY AN INVESTOR WOULD BUY A PIECE OF PROPERTY TO RENT IT OUT.

YOU WOULD HAVE A, WHETHER IT'S A RETAIL STOREFRONT OR AN APARTMENT BUILDING, YOU WOULD BUY IT FOR THE PURPOSE OF COLLECTING RENTS.

AND THAT'S YOUR RETURN ON INVESTMENT.

LAND BANKING IS WHEN YOU ALLOW YOUR PROPERTY TO SIT VACANT, MAYBE IT'S OWNED BY AN LLC IN NEW YORK CITY, UM, AND MAYBE YOU'RE NOT A GREAT NEIGHBOR, AND IT GETS BROKEN INTO AND IT CATCHES ON FIRE AND IT BECOMES A MAJOR, UH, LIABILITY FOR THE CITY.

IT'S NOT REALLY A LIABILITY FOR THAT PROPERTY OWNER, 'CAUSE WE, UH, COULD DO A BETTER JOB HOLDING THEM ACCOUNTABLE.

THEIR GOAL ISN'T TO COLLECT RENT.

THEIR GOAL IS TO HOLD IT FOR 5, 7, 10 YEARS AND THEN SELL IT AT A PROFIT BECAUSE THE UNDERLYING VALUE OF THE LAND AS AN INVESTMENT, UM, HAS RISEN.

UM, SO THIS HAS BEEN A, A CONCERN OF A COUNCIL MEMBERS SOLVING THIS PROBLEM IS TRICKY, UH, AT BEST.

UM, BUT THAT'S, THAT'S THE LAND, UH, LAND BANKING CONCERN.

UH, THANK YOU VERY MUCH FOR THAT.

AND, UH, YES, I HAVE SEEN THAT GO ON ALL OVER THE CITY.

I HAVE A QUESTION.

UH, COUNCIL MEMBER AUSTIN.

SO JUST REALLY QUICKLY, THE, THE MIDDLE LEVEL HOUSING THAT WE'RE TALKING ABOUT, ARE THESE MOSTLY FOR SALE OR, OR RENTAL PROPERTIES? BECAUSE I KNOW THE ONES IN, IN MY DISTRICT ARE ALL FOR SALE, AND HOW DOES THAT WEIGH INTO THE AFFORDABILITY CONVERSATION? UM, SO IT'S ALL OF THE ABOVE, BUT I THINK AS, UH, HOUSING COSTS HAVE RISEN, YOU KNOW, LONG BEACH, UM, HAS A LOT OF FOLKS IN NEED, BUT ALSO HAS A LOT OF MIDDLE INCOME FOLKS THAT WE WOULD HOPE COULD MAKE IT INTO HOME OWNERSHIP THAT HAVEN'T BEEN ABLE TO.

AND PART OF THAT IS COST, YOU KNOW, THE AVERAGE PRICE FOR A HOME, BUT PART OF THAT IS JUST SHEER AVAILABILITY.

THERE'S NOT ENOUGH THINGS, UM, FOR SALE.

THERE'S NOT ENOUGH PRODUCTION.

UM, SO WHEN WE TALK ABOUT MIDDLE INCOME HOUSING, IT'S BOTH, UM, FOR SALE AND RENTAL.

YES.

THANK YOU TO THE TEAM.

UH, JUST A COUPLE QUESTIONS.

SO THAT, I, JUST TO PIGGYBACK ON THAT, THAT IDEA THAT FOR SALE PROPERTIES, IS THAT THE, UM, CONSTRUCTION DEFICIT LITIGATION OR DEFECT LITIGATION, DOES THAT HAVE A DIRECT IMPACT ON WHY WE'RE NOT NECESSARILY BUILDING CONDOS FOR SALE AS OPPOSED TO RENTAL UNITS? YES.

UH, WELL, THERE'S A BUNCH OF INTERCONNECTED MARKET FORCES GOING ON HERE, RIGHT? SO THERE'S A SHORTAGE OF RENTAL HOUSING, SO RENTS ARE EXTREMELY HIGH, SO IT IS VERY PROFITABLE TO BUILD LUXURY RENTAL HOUSING.

UM, SO THEN ON THE OTHER SIDE OF THE EQUATION, IF A DEVELOPER'S LOOKING AT, YOU KNOW, I COULD DO THAT, OR I COULD DO THE EXACT SAME PROJECT, THIS SAME BUILDING, UM, BUT IN AN OWNERSHIP STYLE, UM, THEY HAVE TO BUDGET SO MUCH MORE FOR SORT OF LOSS EXPOSURE, UM, THAT IT BECOMES, THE CAPITAL'S GONNA FLOW TO WHATEVER'S MOST PROFITABLE.

SO AT THIS POINT, UM, THE RENTAL PROJECT IS MORE PROFITABLE, WHICH IS A RECENT PHENOMENON THAT WAS NOT TRUE IN THE NINETIES.

THAT WAS NOT TRUE, YOU KNOW, IN THE EARLY TWO THOUSANDS.

AND THEN AS RENT STARTED TO, TO RISE APPRECIABLY AND LOSSES, INSURANCE LOSSES STARTED TO RISE ON THE OWNERSHIP SIDE, THAT THAT FORMULA SORT OF GOT TURNED ON ITS HEAD.

I THANK YOU.

AND THEN ON SLIDE 15, UM, BECAUSE WE HAVE SUCH A GREAT TEAM HERE, UM, AND, AND WELCOME DONALD, GLAD TO HAVE YOU ON THE TEAM.

UM, YOU OPENED BY SAYING, TRADITIONALLY IN A HEALTHY HOUSING MARKET, WHAT DO Y'ALL

[01:15:01]

DEFINE AS A HEALTHY, HEALTHY HOUSING MARKET? THAT'S MY QUESTION.

UM, AS OPPOSED TO WHAT WE'RE SEEING, UH, BOTH HERE, HYPER LOCALLY OR REGIONALLY OR STATEWIDE VERSUS WHAT WOULD BE THE IDEAL? UM, SO THERE'S A BUNCH OF DIFFERENT MEASURES.

SO YOU WOULD LOOK AT IS RENTAL, UM, VACANCY AT LEAST 5% IF NOT HIGHER AS A HEALTHY VACANCY RATE.

ON THE RENTAL SIDE, YOU WOULD LOOK AT RAW NUMBERS, HAVE OVER A PERIOD OF DECADES HAVE YOU BUILT A NUMBER OF UNITS THAT CORRESPONDS WITH THE GROWTH IN POPULATION.

AND THEN YOU WOULD LOOK AT, FOR FOLKS AT A MEDIAN INCOME LEVEL, CAN THEY AFFORD TO BUY A MEDIAN PRICED HOME? WHICH YOU CANNOT IN LONG BEACH OR IN IN LA COUNTY GENERALLY, BUT THOSE ARE ALL DIFFERENT INDICATORS OF A HEALTHY, UH, HOUSING MARKET.

THANK YOU.

UM, I JUST, I GUESS MY CLOSING COMMENT IS ON SLIDE, UH, 19, WHICH SPEAKS TO THAT HEALTHY HOUSING MARKET, THE IDEA OF HOW MANY CHILDREN AND FAMILIES THAT WE'VE LOST.

AND I KNOW THAT MY TIME ON THE SCHOOL YEAR SCHOOL BOARD, WE LOOKED AT DEC DECLINING ENROLLMENT OVER THE LAST 10 YEARS AND HAD ANOTHER PROJECTION OF AT LEAST ANOTHER FIVE OR SIX YEARS OF DECLINING ENROLLMENT.

UM, AND WHEN WE LOOK AT THOSE MAPS, IT WAS ALWAYS SO STRIKING WHEN WE LOOK AT THOSE MAPS.

UM, WE KNEW THAT OUR STUDENTS WHO LIVED IN, UM, OUR LOWER INCOME NEIGHBORHOODS, OUR FAMILIES WHO WERE IN NATURALLY OCCURRING AFFORDABLE HOUSING, COULD NO LONGER, COULD NO LONGER LIVE THERE.

AND SO WE WERE LOSING FAMILIES AT SCHOOLS, UM, THAT TRADITIONALLY HAD VERY ROBUST POPULATIONS AND THEY WERE MOVING OUT OF STATE.

WE COULD TRACK THEM IF THEY WERE IN STATE, UH, MOVING TO LESS EXPENSIVE COUNTIES TO LIVE IN, BUT WHEN THEY WERE OUT OF STATE, WE COULDN'T TRACK.

UM, AND I JUST THINK THAT IT SPEAKS TO THAT HEALTHY HOUSING MARKET OF THE NATURALLY OCCURRING AFFORDABLE HOUSING THAT HAS BEEN IN THE CITY FOR GENERATIONS THAT ALLOWED OUR, UM, SERVICE WORKERS AND TOURISM WORKERS AND, AND FOLKS MAKING BELOW THAT MEDIAN INCOME TO STAY, UM, THAT THAT'S JUST NOT EXISTING ANYMORE.

SO WE SEE ALL OF THE, SO WHAT WOULD THE PRICE, AND YOU MIGHT KNOW THE NUMBERS OFF THE TOP OF YOUR HEAD BETTER.

UM, SO A MEDIAN INCOME PERSON, IF THEY WERE TO BUY A HOUSE, AN APPROPRIATELY PRICED HOUSE, UH, ON THAT MEDIAN INCOME, WHAT WOULD THE PRICE OF THAT HOUSE NEED TO BE? JUST AN ESTIMATE BASED, YOU KNOW, I BELIEVE MEDIAN INCOME IS JUST OVER A HUNDRED THOUSAND FOR THAT FAMILY OF FOUR WE SAW IN THE CHART EARLIER.

SO, UM, YOU'D WANT IT TO BE NO MORE THAN A THIRD OF THE INCOME WHEN YOU CREATE THE, THE MONTHLY COST, RIGHT? SO, UM, DEPENDING ON THE, THE RATE, UM, I THINK IT WOULD BE, WE'RE WE'RE DOING SOME BACK OF THE ENVELOPE MAP.

YEAH.

UM, BUT WE THINK IT WOULD BE MORE IN THE LIKE 500,000 RANGE AS OPPOSED TO WHAT IT IS NOW, NOT, NOT CLOSE TO THAT.

WELL, THEIR MONTHLY PAYMENT WOULD NEED TO BE UNDER $2,916, INCLUDING THEIR PAYMENT, THEIR PROPERTY TAX.

UM, SO RENT FOR A TWO BEDROOM APARTMENT, UH, EXCEEDS $2,916.

SO I CAN TELL YOU FOLKS CANNOT BUY A HOME, UM, FOR $2,916 PER MONTH.

I CANNOT, IN MY HEAD, EVEN WITH MY CELL PHONE CALCULATOR, DO THE REST OF THE MATH.

UM, BUT WE CAN FIGURE THAT OUT AND EMAIL, UM, YOU WHAT THE, WHAT THE PRICE WOULD BE, BUT IT WOULD BE BELOW HALF A MILLION DOLLARS.

AND IT'S, IT'S PRETTY HARD TO FIND A UNIT, UM, BELOW HALF A MILLION DOLLARS.

BUT THE OTHER THING IS, WHAT'S HAPPENING IS FOLKS ARE DELAYING BUYING A HOME AND THEY BUY A HOME, YOU KNOW, ONCE THEY HAVE A FAMILY BECAUSE, YOU KNOW, WHERE ARE YOU GONNA PUT THE STROLLER AND ALL THE STUFF, UM, THAT COMES WITH THE KID AND YOU JUST OUT OF NECESSITY NEED MORE SPACE.

UM, BUT IN OTHER, IN, IN THE PAST OR IN, IN HEALTHIER, UM, HOUSING MARKETS, YOU KNOW, THERE'S OPPORTUNITIES FOR FOLKS TO BUY SOONER, LIKE BEFORE THEY HAVE A KID, OR EVEN WHEN THEY'RE SINGLE.

LIKE THERE ARE ONE BEDROOMS THAT ARE FOR SALE AS CONDOS, AND THERE'S ALL KINDS OF DIFFERENT, YOU KNOW, ITERATIONS OF, UM, RENTAL OWNERSHIP, SMALL, BIG, AND, AND THOSE CHOICES ARE JUST MISSING FROM, FROM TODAY'S HOUSING MARKET.

THANK YOU.

AND I THINK THAT'S JUST AN IMPORTANT POINT TO BRING BACK.

UM, AS WE LOOK AT THE CITY TODAY IN 2024, MEETING THE NEEDS OF THE FOLKS WHO LIVE HERE AND WANT TO LIVE HERE.

AND WE, WE HAVE A LOT OF CONVERSATIONS, UM, AND WE HEAR A LOT ABOUT, WELL, I COULD AFFORD THIS WHEN WE MOVED OUT.

AND WE KNOW THAT THE ECONOMICS ARE SO DRASTICALLY DIFFERENT, AND THAT NEEDS TO BE PART OF THE CONVERSATION AS WE COMMUNICATE THE HOUSING NEED.

NUMBER ONE, THE SUPPLY JUST ISN'T THERE.

AND NUMBER TWO, EVEN WE USED TO TALK ABOUT IN THE SCHOOL DISTRICT, TWO TEACHERS, TWO ENTRY LEVEL TEACHERS CAN BARELY AFFORD RENT IN THE, IN THE CITY, LET ALONE BUYING A HOUSE.

AND IN A CITY WHERE WE PRIDE OURSELVES ON THE FOLKS WHO SERVE US, WHETHER

[01:20:01]

IT'S TEACHERS OR LAW ENFORCEMENT BEING ABLE TO LIVE HERE, THAT'S JUST NOT THE REALITY AS IT STANDS IN 2024.

SO, UM, WE HAVE THE OPPORTUNITY TO HELP ENACT POLICIES THAT, THAT MAKE THAT BETTER FOR THOSE, UM, 5,000 STUDENTS WHO ARE GRADUATING FROM HIGH SCHOOL THIS WEEK, WHO, WHO ARE LOOKING FOR JOBS AND GOING TO SCHOOL AND WANNA BE ABLE TO STAY HERE.

SO, UH, I APPRECIATE THE PRESENTATION.

IF WE HAVE NO ELSE, WE'RE GONNA GO TO PUBLIC COMMENT.

IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON THIS ITEM, PLEASE COME TO THE PODIUM NOW SO I CAN FACE SIX DISTRICT RESIDENT.

I WANNA SAY TO, UM, MR. KUNZ, THANK YOU FOR THE LITIGATION PIECE THERE.

I DID NOT REALIZE THAT IT WAS A 10 YEAR WINDOW TO SUE SOMEONE, UM, WITH RELATION TO CONDO DEVELOPMENT.

THAT EXPLAINS, UH, WHY THAT'S JUST NOT HAPPENING HERE.

UM, WELCOME TO THE CITY, MR. PATTERSON.

UM, I'M, I DON'T KNOW IF YOU HAVE A LA TIMES ACCOUNT YET, BUT I WILL TRADE YOU ACCESS TO MY LA TIMES ACCOUNT FOR ACCESS TO YOUR HARVARD JOINT CENTER FOR HOUSING STUDIES REPORT THAT YOU DID.

AND THEN WE CAN COMPARE DATA, UH, BECAUSE OKAY, THAT WAS ME BEING KIND, THIS CRACKER BOX, CRACKER JACK, UH, REVISIONISM THAT THEY'RE DOING.

I WOULD PLEASE LIKE YOU TO BE MINDFUL ABOUT NOT PLAYING INTO THAT.

YOU C IT'S REVISIONISM.

UH, I WAS RAISED IN A CRACKER BOX APARTMENT DEVELOPMENT, AND I WOULD NOT BE ABLE TO HAVE HAD A ENTIRE COMPLETE CHILDHOOD TO ADULTHOOD IN THIS CITY IF THOUSANDS OF THOSE UNITS WEREN'T DEVELOPED AT THE TIME THAT THEY WERE DEVELOPED.

IT SAVED MY MOTHER AND HER TWO SISTERS, UH, THE OPPORTUNITY THAT A LOT OF PEOPLE DID NOT HAVE.

UM, CRACKER BOX, THOSE CRACKERJACK, THOSE, THOSE APARTMENTS, UM, THEY COMPLETELY DESTROYED SEGREGATION AND HOUSING.

UH, IT, IT FORCED PEOPLE THAT DIDN'T WANT TO RENT TO AFRICAN AMERICANS TO HAVE NO CHOICE BECAUSE THE RENT WENT DOWN.

AND SO I'M MINDFUL OF THAT WHEN IT COMES UP, ESPECIALLY WHEN YOU'RE SPEAKING ABOUT MINNEAPOLIS, BECAUSE I DON'T KNOW HOW RESULTS CAN BE MIXED WHEN THE RENT GOES DOWN 12%.

YOU KNOW, THAT'S A, THAT'S A WIN IN ANY MAJOR METROPOLITAN CITY.

AND SO WE JUST HAVE TO BE MINDFUL ABOUT NOT POURING TOO MUCH ENERGY INTO, UM, THOSE TYPES OF NARRATIVES.

UH, WITH RESPECT TO THE MISSING MIDDLE HOUSING.

UM, YOU KNOW, SO WE HAVE A GREAT EXAMPLE HERE WITH OCEAN AIR.

OCEAN AIR WON'T HAPPEN AGAIN BECAUSE OF POSSESSORY INTERESTS.

AND, UM, AND UNTIL WE GET RID OF POSSESSORY IN INTERESTS, UH, DEVELOPERS WILL NOT BE INCENTIVIZED TO DEVELOP AT SCALE ENOUGH TO IMPACT WHAT'S LACKING.

UM, AND I THINK THAT THAT'S A PROBLEM.

I THINK WE NEED A REIN, A A RENDITION OF THE CRACKER BOX, THE CRACKER JACK HOUSING TODAY, BECAUSE AS, UH, OUR FORMER SCHOOL BOARD PRESIDENT, UH, COUNCILWOMAN CUR JUST ELOQUENTLY PUT, THE CHILDREN AREN'T HERE AND THEY, THEY DON'T EXIST.

AND I DON'T KNOW ANY CITY THAT HAS FUTURE, UH, TAXPAYERS IF CHILDREN AREN'T PRESENT IN THAT CITY.

SO, UM, SO SOMETHING ACTION ITEM FOR ME IS TO PUSH MR. LOWENTHAL AND FRIENDS UP THERE IN SACRAMENTO UPSTREAM TO MAYBE, UH, GO AFTER THIS, UH, CONDO LITIGATION THING.

AND I'LL CONTINUE TO WORK TOWARDS GETTING RID OF THE POSSESSION INTEREST ELEMENT THAT'S, UH, MINIMIZING THE MENTAL HOUSING DEVELOPMENT.

THANK YOU.

THANK YOU.

UH, SEEING NO MORE DISCUSSION OR PUBLIC COMMENT, LET'S PLEASE TAKE A VOTE ON THE ITEM RECEIVED.

THANK YOU.

THE MOTION CARRIES.

UH, THOSE ARE OUR ITEMS FOR THE DAY.

THANK YOU TO THE TEAM FOR BEING HERE.

UM, IS THERE ANY GENERAL PUBLIC COMMENT IF ANY MEMBERS OF THE PUBLIC WOULD LIKE TO SPEAK ON A NON AGENDA, PUBLIC ITEM, PLEASE COME TO THE PODIUM NOW.

NO PUBLIC COMMENT CHAIR.

OKAY.

SEEING NONE, UH, WE WILL CALL THIS MEETING ADJOURNED.

THANK YOU EVERYBODY.

THANK YOU.