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Housing

La Mesa Developer Seeks to Back Out of Affordable Housing Deal

Strategic Insights

— 1 min read

The developer of a La Mesa townhouse project, Cantera, is requesting to be released from its commitment to make some units affordable, despite having accepted financial incentives in exchange for that pledge. This decision could set a precedent for the city's affordable homes bonus program, which aims to make housing projects more affordable and easier to build. The program waives certain development requirements in exchange for restricting rents on some units in the projects. The developer, NTC Development, is asking the city's planning commission to maintain waived development requirements but cancel its obligation to provide affordable units.

Key Takeaways:

  • The La Mesa City Council granted Cantera, a 32-unit townhome project, a series of waivers through the affordable homes bonus program in 2019.
  • The developer agreed to reserve four of the 32 units for residents earning less than 120% of the area's median income in exchange for waived development requirements.
  • The developer is now requesting to cancel its obligation to provide affordable units, citing prolonged construction and increased costs due to COVID and civil unrest in 2020.
  • La Mesa planning commissioner John Frankel expressed concerns about setting a precedent that allows developers to receive benefits from the affordable homes bonus program and later opt out of their commitments.
  • Former La Mesa City Council member Kristine Alessio, who is also the VP of NTC Development, said the project should have received the broad waiver of restrictions without needing the bonus program.

Statistics:

  • 32 units: The number of townhomes in the Cantera project.
  • 4 units: The number of units reserved for residents earning less than 120% of the area's median income.
  • 2019: The year the La Mesa City Council granted Cantera the series of waivers.
  • 120%: The percentage of the area's median income that residents of the reserved units must earn in order to qualify.

Sources:

  • (https://www.axios.com/local/san-diego/2024/10/03/la-mesa-voter-guide-city-council-sales-tax)
  • (https://fox5sandiego.com/news/local-news/new-housing-development-being-offered-under-sd-countys-record-median-price-for-home/)
  • (https://www.axios.com/local/san-diego/2024/05/10/california-federal-housing-funds-decrease-san-diego)
  • (https://pub-lamesa.escribemeetings.com/filestream.ashx?DocumentId=20166)
  • (https://pub-lamesa.escribemeetings.com/filestream.ashx?DocumentId=20167)

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