2015 California Association of Realtors Government Affairs Directors Institute Study prepared by Fermanian Business & Economic Institute Point Loma Nazarene.

2015California Association of Realtors

Government Affairs Directors Institute

Study prepared by

Fermanian Business & Economic InstitutePoint Loma Nazarene University

Lynn Reaser, Ph.D.

The Fermanian Business & Economic Institute – business & economics in action © FBEI 2014

Opening San Diego’s Door to Lower Housing

Costs


Topics

Scope

Key Findings

Economic Impact

Policy Recommendations

Housing Production

233,000 San Diego Households Priced Out of the Market

Percent

Gap

Without Regulatory Costs

Affordability Index

-40% -20% 0% 20% 40% 60% 80% 100%

Households Priced Out of San Diego Housing

Percent

Carlsb

ad

City o

f San

Dieg

o

Oth

er C

ities

Chula

Vista

San M

arco

s

Uninco

rpor

ated

Sante

e

Total

Count

y0

5

10

15

20

25

30

Sales Throughout the CountyPercent

Carlsbad7%

Chula Vista20%

City of San Diego50%

Unincorporated3%

San Marcos10%

Santee2%

Other Cities9%



Regulatory Costs

Entitlement

Mapping

Eliminated units

Fees

Affordable housing

Vertical costs

Time costs


Key Findings

Regulatory Costs Drive 40% of Average New Housing Costs in San Diego County

Thousands of dollars

Average Price Average Regulatory Cost*0

100

200

300

400

500

600539.367

218

*Weighted by total units rented or sold in 2013The Fermanian Business & Economic Institute – business & economics in action © FBEI 2014

Regulatory Costs Significant Share of Housing Prices in all San Diego

Jurisdictions*Percent

Santee

San Marcos

Unincorporated

Chula Vista

Other Cities

Carlsbad

San Diego

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

0.22

0.28

0.3

0.32

0.37

0.44

0.47

*Weighted average based on total sales and rentals


Regulatory GauntletLocal Government DepartmentsPlanning DepartmentLong Range/ Advanced Planning DepartmentEngineering DepartmentLand Development DepartmentLandscaping DepartmentGrading DepartmentGeology Review DepartmentPublic Works DepartmentGeneral Services DepartmentStormwater Compliance DepartmentFire DepartmentParks & Recreation DepartmentTransportation / Traffic DepartmentPublic Health DepartmentUtilities DepartmentWater DepartmentLibrary DepartmentSchool Impact Mitigation DepartmentFacilities Financing DepartmentPolice Department Crime Prevention Review DepartmentAirport Land Use Staff / CommissionEnvironmental DepartmentMSCP Review DepartmentEconomic Development/ Redevelopment DepartmentSubdivision/ Map Check Review DepartmentFranchise Utility Reviews (SDGE, Cox, Time Warner, SBC, etc.)City AttorneyBuilding InspectionCode Enforcement

Planning CommissionCity ClerkCity CouncilHearing Officer ReviewsDesign Review BoardsHousing CommissionHistorical Commissions/ Review BoardsCommunity Planning GroupsCommunity Planning Group New Project SubcommitteesCommunity Sponsor Groups State/Federal AgenciesPalomar ObservatoryDepartment of Fish & GameU.S. Fish & WildlifeArmy Corps of EngineersSan Diego Regional Water Quality Control BoardCalifornia State Coastal CommissionBureau of Indian AffairsFEMABureau of Real EstateUS Department of Housing and Urban DevelopmentCalifornia Environmental Protection AgencyFederal Aviation Administration/ Airports Department MCAS Miramar

NGO’s Endangered Habitats LeagueCoastkeeperSierra Club

Regional Distribution of Economic Benefits from 3% Easing of Regulatory

Impact

Increase Percent

Gross Regional Product, $ mil $3.15 1.7%

Personal Income, $ mil $2.54 1.5%

Employment 37,331 1.9%

Business Enterprises 1,372 1.7%

Population 18,222 0.6%

Housing Permits 6,749 75%






Entitlements

Set benchmarks for project

approval times

Establish master plans

Prevent legal challenges after

tentative or final map



Mapping

Replace deposit account with flat

fee

Allow communication with

builder/developer

Grandfather all phases of project

Set “No Late Hits” policy



Land Development and Building

Standardize building codes across

County

Establish “one-stop” shops for

permits

Standardize Title 24 requirements

across building phases



Affordable Housing

Implement sliding scale

Allow inclusionary and density

bonus units off-site

Contribute or sell city land


Climate for Change

Mayor Faulconer

Council

Speaker Atkins

California Treasurer, John Chiang

Other Findings

New Home Building contributes $36.8 Billion and 209,000 jobs per year to the California Economy

Community resistance, environmental policies, local governments constrains new housing construction

3.2 million CA families (31%) struggle every month to meet basic needs.

Regulations, Delays Add 40% to Housing Costs, Study Finds

RIP Entry Level Housing

Economist Hits High Cost of Permitting

Harsh Reality for Young Homebuyers

Renters Pay Up As Homeownership Drops

Layers Of Government RegulationExplain Area High Housing Costs13 Cities Where Millennials

Can’t Afford A Home

High Housing Costs Driving More Californians Into Poverty

Borre Winckel President & CEO San Diego Building Industry Association

Dan Walters: California has big housing shortage

Housing You Matters Coalition

HousingYouMatters.orgMission: Advocate for regulatory reforms that result in the timely production of a wide range of attainable housing in all economic sectors necessary to meet regional needs and ensure economic prosperity.

QUESTIONS

2015 California Association of Realtors Government Affairs Directors Institute Study prepared by Fermanian Business & Economic Institute Point Loma Nazarene.

Documents

business enterprises

action fbei

san diego households

san diego jurisdictions

san diego housingpercentsales

average new housing

housing permits

opening san diegos door