railLos Angeles/Ventura Chapter

September 9, 2020EXECUTIVE COMMITTEE

Dave Little, Pardee Homes. President

Neils Cotter, Carmel Partners Vice President

Councilman Gil Cedillo Housing Committee Los Angeles City Hall 200 N Spring St, Room 1010 Los Angeles, CA 90012

Derek Fraychineaud, CIM Group Vice President

Kevin Harbison, New Urban West Vice President

Larry Hoffman, Fassberg Contracting Corporation Vice President

John Hrovat, Equity ResidentialVice President

Greg McWilliams, FivePoint Vice President

Re: BIA-LAV Letter - Affordable Housing Units / Tying Incentives (Council File: 19-0722) - COMMENT LETTER

Dear Chair Cedillo,Monica Mejia, LINC Housing Vice President

The Los Angeles/Ventura Chapter of the Building Industry Association of Southern California, Inc. (BIA-LAV), is a non-profit trade association focused on building housing for all. On behalf of our membership, which includes both affordable and market-rate housing builders, we would like to express our comments on the Affordable Housing Units / Tying Incentives Motion before the Housing Committee, today.

Jeremy Parness, Lennar Vice President

Frank Su, Toll Brothers Vice President

Henrik Nazarian, D & D Engineering, Inc. Secretary, Treasurer

Derek Leavitt, Modative, Inc.Immediate Past-President

BOARD OF DIRECTORS

Over the last few weeks, as expressed in previous comments on other housing motions, we are encouraged to see that the Council is taking action to address the immense housing shortfall. As it relates to this motion, we are particularly glad to see the mention of incentives to address a specific housing need for the City. BIA-LAV has been strong proponents for the inclusion of incentives when applied to housing production policies; it's a critical component for a strategy to remain financially feasible.

Tyler Bargiel, Wells Fargo

Rocco Cordola, Gothic Landscape Lauren Cross, City Ventures

Donna Deutchman, Homes 4 Families George Dickerson, All Promotions Etc.Richard Dunbar, Oakridge Landscape, Inc.Ryan Flautz, KTGY Architecture & Planning, Inc.

Mike Frasco, Bio Clean Environmental Services Amy Freilich, Armbruster Goldsmith & Delvac LLP David Grunwald, National CORE

Peter Gutierrez, Latham & Watkins Andy Henderson, The Henderson Law Firm Marc Huffman, Brookfield Residential Krysti Irving, Landscape Development, Inc.Karl Mallick, David Evans & Associates,Bill McReynolds, Warmington GroupGreg Medeiros, Tejon Ranch CompanyBrian Murtaugh, Loan DepotJohn Musella, The Musella GroupScott Ouellette, Williams HomesErik Pfahler, Borstein EnterprisesHarriet Rapista, Comstock HomesDarrell Simien, Habitat for Humanity of Greater LAAlyssa Trebil, DuctTesters, Inc.Brett Trebil, Watt Communities Christine Villegas, Chelsea Investment Corp Rick White, Larrabure Framing

However, in order for incentives to be viable they must be meaningful. Offering concessions that already exist or can already be applied is not going to result as a usable tool to address the City's housing goals. Examples of expanded or new incentives include but are not limited to, a more clear or faster entitlement path, new increases in density, a new, guaranteed expedited plan check, waived impact fees, etc. New incentive programs or added incentives to existing programs should be reviewed by the Housing Authority of the City of Los Angeles (HACLA), the Los Angeles Housing and Community Investment Department (HCID), and City Planning when they research and provide the report that is requested as a part of this motion.

www.bialav.org

"The Voice of Building and Development"

Los Angeles/Ventura Chapter

In refrence to the funding component of the motion (as expressed in previous correspondence), it is imperative that a funding solution work in tandem with all other housing efforts and does not negatively impact current or future home building. We are glad to see that there is an emphasis to leverage the use of existing funding at both the State and local level. We would discourage any increase in current fees. Supporting this sentiment is an example from UC Berkeley's Terner Center Report. The study found that these local fees have significant implications for the overall price and delivery of new housing in California. This was also echoed in the reporting done by the Los Angeles Times on the high costs of affordable housing construction.

BIA-LAV and its members are ardent supporters of all housing types and diverse housing solutions. We are one hundred percent behind the need to review efforts being made to construct more units, as reflected in the motion and we hope this is included in the report. We ask that City staff review our suggestions and the publications referenced and linked in this letter as they prepare the report initiated by this Motion. We would like to partner with the City in an active stakeholder role and provide our organization as a resource.

BIA-LAV looks forward to working with the Council and City staff on this Motion. Should you have any questions, please contact BIA-LAV Vice President, Diana Coronado, at dcoronado@bialav.org.

Sincerely,

Diana Victoria Coronado Vice President BIA-Los Angeles/Ventura

CC:The Honorable Eric Garcetti, MayorThe Honorable Nury Martinez, Council PresidentThe Honorable Paul Krekorian, Councilmember, Housing Committee Vice ChairThe Honorable Bob Blumenfield, CouncilmemberThe Honorable David Ryu, CouncilmemberThe Honorable Paul Koretz, CouncilmemberThe Honorable Monica Rodriguez, CouncilmemberThe Honorable Marqueece Harris-Dawson, Councilmember, Housing Committee MemberThe Honorable Curren Price, CouncilmemberThe Honorable Herb Wesson, Council PresidentThe Honorable Mike Bonin, CouncilmemberThe Honorable John Lee, CouncilmemberThe Honorable Mitch O'Farrell, CouncilmemberThe Honorable Jose Huizar, Councilmember

www.bialav.org

"The Voice of Building and Development"

railLos Angeles/Ventura Chapter

The Honorable Joe Buscaino, Councilmember Holly L. Wolcott, Los Angeles City Clerk Keyonna Kidd, Legislative Assistant Eric Villanueva, Alternate Legislative Assistant

Sent via e-mail

www.bialav.org

"The Voice of Building and Development"