November 2004

Planning

Copyright by American Planning Association

Both Affluent and Affordable

Long before it became fashionable, the city of Camarillo, California, provided affordable housing as part of market-rate developments.

By Randy Richardson, AICP

Located midway between Santa Barbara and Los Angeles, Camarillo (pop. 62,000) was among the first cities in the nation to institute a growth limit ordinance. It has signed greenbelt agreements with Ventura County and neighboring cities to preserve the surrounding agricultural areas. Still, it has managed to build 600 affordable housing units and has another 100 in the pipeline.

The city's 1972 general plan laid out an industrial area that now includes the headquarters of Technicolor, Semtech, and Vitesse Semiconductor. Most segments of the population can find housing here — in apartments, planned developments, single-family residences, large-lot estate houses, retirement communities, or granny flats.

Low- and moderate-income individuals, including teachers and service workers, have a harder time. According to the Ventura County Coastal Association of Realtors, the median price of an existing house in July was $570,000, and new houses were selling for $600,000 to over $1 million. Camarillo's median income of $77,400 is not adequate to purchase a median-priced house.

For over 25 years, the city has stepped in to aid the construction of affordable housing, although that challenge has gotten harder in recent years due to spikes in housing costs. Incentives include general plan amendments, density bonuses, and exemptions from the growth limit ordinance. In addition, the city has bought land and formed partnerships with private and nonprofit housing builders. To preserve the affordable units, resales are restricted for periods of 12 to 55 years.

In Camarillo, a family of four making $57,500 is identified as low income. More than 1,000 families often compete for houses selling for under $200,000. One reason is that Camarillo's affordable units cannot be distinguished from its market-rate units.

Three projects are representative of the city's affordable housing efforts: Mira Vista Village, built in 1989; Casa Velasquez, built in 1999; and Cedarbrook Walk, completed in 2003.

Mira Vista Village resulted when the city changed its general plan to allow high-density development (30 units per acre) rather than low-density residential (five units per acre) on a 15-acre site. In approving the change, the city required the 305-unit apartment project to be affordable to senior citizens for 12 years. It also required that 22 small-lot, single-family houses be built to separate the apartments from the existing single-family neighborhood.

The developer used state tax credits to help finance the apartments. The houses were factory built and sold to low-income families. Covenants limit price increases to two-thirds of the consumer price index for 15 years. Houses must be owner-occupied.

Casa Velasquez was built as a partnership between the city and the Cabrillo Economic Development Corporation, a local nonprofit housing group. The city used federal community development block grant funds to acquire the site when a private developer was unable to obtain financing.

The city had anticipated that these 18 apartment units would be a catalyst for reinvestment in what was then a declining neighborhood. However, the new buildings would have changed the character of a neighborhood filled with early 20th century Craftsman-style houses. Thus, after acquiring the site, the city approved 16 rather than 18 apartment units and made sure the new buildings would fit the neighborhood's architectural character. Cabrillo holds a 55-year lease on the property; after that ownership reverts to the city.

In opening new parts of the city for development, Camarillo creates a specific plan — a component of the general plan — to establish the land-use pattern, design guidelines, and community infrastructure. The Pitts Ranch Specific Plan, covering 211 acres of land surrounding the city's industrial area, includes a mixture of residential densities, from medium density (18 units to the acre) to low density (five units to the acre). A school, community park, and riverwalk along the bank of Calleguas Creek were included as well.

Under the plan, some of the new housing had to be affordable to low-income families. To control the design, the city bought the site from the developer with CDBG funds. It then issued a request for proposals from the housing authority, nonprofit housing corporations, and private developers.

The city ultimately chose a private developer, the Olson Company, as its partner for the new development, Cedarbrook Walk. Olson built 30 small-lot, single-family units with colors and architectural details similar to those in the adjoining single-family neighborhood. There is a 30-year limit on the increase in value of the houses, and they must be owner-occupied. The units were built without public controversy and sold for $195,000 — next to houses selling for over $700,000.

Along the way, Camarillo has learned to stretch out the affordability requirement. Initially, it seemed that 15 years of affordability would be an adequate trade for providing low-income housing. But 15 years pass very quickly, and the affordable housing is lost when the units revert to market-rate. Homeowners can build equity during that time, but renters face big increases when the affordability agreement expires.

What's next? Despite the success of its voluntary housing programs, Camarillo is now preparing an inclusionary housing ordinance that will require future developments to include affordable units, pay an in-lieu fee, or dedicate land to the city for affordable housing.

Randy Richardson is a housing program analyst with the city of Camarillo.