Editorial: Grass Valley should rescind its housing policy

Housing starts have tumbled nationwide since 2007, according to calculatedriskblog.com

Since the policy was implemented in 2004, it has done little if anything to create affordable housing. If fact, the policy may be a deterrent to the construction of affordable housing, especially in today’s stagnant housing market.

Update:

 The Grass Valley City Council voted 4-1 Tuesday night to rescind the affordable housing policy.

While it may sound harsh, the Grass Valley City Council should vote Tuesday evening to rescind its affordable housing policy.

 Since the policy was implemented in 2004, it has done little if anything to create affordable housing. If fact, the policy may be a deterrent to the construction of affordable housing, especially in today’s stagnant housing market.

 The city’s policy requires that 20 percent of the homes in new housing projects be affordable for low-to-moderate income people. To date, the city says the policy has resulted in the approval or construction of 92 units that are deemed affordable, which averages around 15 units a year.

 In that same period of time, the city has approved plans to build 481 residential units.

 The policy was approved as housing prices were skyrocketing in Nevada County. All of a sudden, a starter home was costing $300,000 unless it was a serious fixer upper.

 Now, however, the housing market is stuck in the financial muck of our current economic crisis, leaving few opportunities for homebuilders. At the same time, home prices have fallen across the region.

 Consequently, there’s no need for a policy that is generating dubious results at best and probably stretches the resources of City Hall. By rescinding the policy, the City Council reduces the red tape for housing projects and gives builders’ projects a better chance of penciling out.

 More building activity would generate jobs and pump badly needed money into our local economy. It also would increase the overall housing stock, which will do more to keep housing prices at a somewhat reasonable level than any city policy.

 The meeting starts at 6:30 p.m. on Tuesday, Jan. 26, at Grass Valley City Hall at 125 E. Main Street. It will be broadcast live on NCTV-17 and streamed live on nevadacountytv.org.