Tustin Planning Commission Reluctant to Recommend Mandatory Inclusionary Zoning

On Tuesday February 13th the Tustin Planning Commission considered recommending a mandatory inclusionary zoning Ordinance to the Tustin City Council.  Tim Shaw, Government Affairs Director for the Pacific West Association of REALTORS(R), and Tony Capitelli, Government Affairs Director for the Orange County REALTORS(R), were among 11 other members of the business community who spoke in opposition to the ordinance.

Tim and Tony both cited to unintended consequences of such an ordinance, including its potentially devastating effects on supply and prices.

According to the Reason Public Policy Institute, in the San Francisco Bay area from 2003 to 2007, new home construction dropped by an average of 30% and prices rose by an average of 8% in the first year after an inclusionary zoning ordinance was passed.

You might get more “affordable units”, but if overall production drops and prices rise, it only exacerbates the problem.  What this equates to is a tax on homeowners and renters, because the cost is simply passed on to them.

The Planning Commission also expressed concerns, mentioning the limited data they had available to justify implementing such a policy.  They ultimately opted for more time with a request for Tustin city staff to come back to them with more information and other options.

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