A unique program of affordable housing for those with moderate incomes will make its debut in Long Beach.
The city council voted at its meeting on Tuesday, February 16, to approve a plan to partner with the California State Communities Development Authority and Waterford Property Group to purchase the 216-unit Oceanaire luxury condominium complex, Oceanaire, 150 W. Ocean Blvd., Advance. and use it for middle income homes.
The complicated financial transaction would be funded by bonds issued by the CSCDA Community Improvement Authority and would not require upfront investment from the city. However, the advisors noted that the program likely means the city would lose about $ 264,000 in property tax revenue to the general fund each year. The program would also run for up to 30 years, which means the long-term impact on affordable housing in Long Beach is unclear, though the city council may ultimately choose to continue extending the deal.
Long Beach has never used this type of program before. According to city officials, it is still unclear whether the benefits would outweigh the risks. They therefore recommended that the city council promote the proposal as a pilot project and use the experience to develop a specific policy for potential similar projects in the future.
“I’m happy to see this as a pilot project only so we can analyze the impact first before setting a precedent for other developers,” said Councilor Cindy Allen, whose second district the project is in. “In addition, more units with lower income levels are vital and I am always open to new ideas to accommodate the missing middle.”
Patrick Ure, director of the housing and neighborhood services bureau, said that since the program would rely on wear and tear in order to convert the current marketable units into affordable housing, it would likely take four years to convert each unit. Around 71% of the units in the complex are currently occupied.
Once all units are remodeled, they are limited to renters who deserve:
- 80% of the area median income, or approximately $ 90,000 for a family of four;
- 100% of Area Median Income, or approximately $ 113,000 for a family of four; and
- 120% of the area median income, or approximately $ 135,000 for a family of four.
For those at the 80% level, the rent for a two bedroom unit would be about $ 2,400, while the unit would be about $ 3,000 for those at the 100% level and about $ 3,550 for those at the 120% level .
Alex Cherin, who represents Waterford, said during Tuesday’s meeting that the deal will help meet the goals Long Beach has set to meet its housing needs.
“I think a number of housing boxes and policy boxes are being reviewed for the city, some of which were recently addressed in the city’s housing studies last year,” he said. “I think this is incredibly consistent with where the city is going.” long term. “
Sign up for The Localist, our daily email newsletter with hand-picked stories relevant to where you live. Subscribe here.