CCA Leads Business Response on Ellis Act Item
CCA has led the opposition against a motion that would extend rent control to newly constructed rental units built on the site of demolished, rent stabilized units, as this measure would discourage investment and construction of sorely-needed apartment projects. While City Council considered this item in early April, it held the item until the HCED Committee could hear an amendment introduced by Council President Eric Garcetti. The hearing on the amendment is scheduled for
May 8th
.
The amendment would give developers the option of constructing a new, rent stabilized building, or replacing the lost rent stabilized units one-for-one with units that would be affordable to households at or below 80% of the area media income, up to 20% of the newly constructed units.
In preparation for the hearing, CCA convened a group of stakeholders, including developers, land use attorneys, and apartment owners, to review the amendment and outline strategy for the hearing. CCA opposes the extension of rent control to demolitions and is lobbying to have this issue included in the Los Angeles Housing Department's year-long study on rent control.
CRA's Policy Review Committee to Discuss TFAR
For two years, CCA has been leading efforts to revise the City's Transfer of Floor Area Ratio (TFAR) ordinance to reflect changes in the Downtown market and make the ordinance relevant to developers. In April, the City approved the new ordinance with revisions proposed by CCA, Councilwoman Jan Perry's office, the Planning Department, and CRA. The new ordinance streamlines the application process and establishes a public benefit payment that is feasible for developers.
In preparation for TFAR applications, the CRA's Policy Review Committee will discuss TFAR and the CRAs role in the review process at its next meeting. This discussion will include the viability of placing additional requirements on TFAR projects.
The ordinance already requires TFAR applicants to pay a substantial public benefit fee.
CCA is strongly opposed to additional requirements, such as prevailing wage, inclusionary housing, and other mandates, as they will stifle the TFAR market, and forego the critical opportunities to build more density where it is wanted most and generate hundreds of millions of dollars for the public good.
CCA has already met with CRA staff on this critical issue and will be discussing the importance of TFAR with CRA commissioners in the coming weeks.