How does this work – the more housing Chico approves, the more expensive it gets?

30 Jun

I’ve been frustrated with the city of Chico’s approach to housing. For one thing, I don’t think a city has any responsibility for “providing” housing, they have a responsibility for regulating housing.

They are supposed to designate areas in which housing can be built, based on good planning practices as well as environmental and other legal restrictions. They are supposed to make sure housing in the city is up to city code, and that streets, sidewalks and sewers are maintained. But I do not believe there is any law stating that the city is responsible for providing the actual housing.

But a city profits from development – starting with builder fees, plan check fees, inspection fees, and ending up with more property tax and sales tax revenues, into perpetuity. Unfortunately the city of Chico is collecting the fees but is not keeping up with the infrastructural requirements for all these new residents. Every time I drive that section of Bruce Road between 32 and Skyway I wonder how they will fix that bottleneck at that funky little subdivision – it looks to be physically impossible. And if they build out Valley’s Edge, that part of town will shut down completely, all day, every day. You won’t be able to pull a needle out of that mess with a tractor.

It is ridiculous for the city to proclaim we need Valley’s Edge to solve our ‘housing crisis’ – who will be housed at Valley’s Edge?

Here’s how the city could help provide more affordable housing – talk to the county and the state and the feds, who are supposed to provide for social welfare. Put more pressure on those agencies like HUD to do their jobs.

For one thing, HUD could reinstate the emergency rent programs, which appear to have been unfunded since 2021. I’ve known many people – families and single people – whose marginal jobs hardly covered their rent. We need these people, they fill essential jobs. When they have emergencies such as illness or an eviction or loss of job that isn’t their fault, it would behoove all of us if they had the support of a taxpayer funded agency. When I looked at HUD’s website it said that neither the emergency rent program nor the landlord incentive program had any money left.

Landlord incentives? They offer to pay $1,000 if you sign up to take Section 8 vouchers and another $500 each time you sign a rental agreement with a qualified renter(s). But read further – not only is that program unfunded, but the Section 8 program does not offer any type of security deposit, nor does it guarantee the renter will pay their rent or take proper care of the unit. HUD needs to either provide their own housing or guarantee landlords more protection.

I would ask both HUD and Butte County to fund and manage more building/renovation of existing housing for families falling under the Chico median income of about $60,000. Neither private landlords nor developers nor the city of Chico should be expected to run a charity.

I know you’ve noticed this – the city of Chico has it backward – the more housing they approve, the more expensive housing gets…

4 Responses to “How does this work – the more housing Chico approves, the more expensive it gets?”

  1. Scott Rushing's avatar
    Scott Rushing June 30, 2023 at 11:18 pm #

    You are spot on Juanita:

    For one thing, HUD could reinstate the emergency rent programs, which appear to have been unfunded since 2021. I’ve known many people – families and single people – whose marginal jobs hardly covered their rent. We need these people, they fill essential jobs. When they have emergencies such as illness or an eviction or loss of job that isn’t their fault, it would behoove all of us if they had the support of a taxpayer funded agency. When I looked at HUD’s website it said that neither the emergency rent program nor the landlord incentive program had any money left.

    The Housing Authority is a hand-up, not a handout. The city council can press HUD for more money, but your council disdains to do so in my point of view. I won’t list the reasons why your council fails again the working people of Chico…your readers can decide.

    • Juanita Sumner's avatar
      Juanita Sumner July 1, 2023 at 6:47 am #

      I agree Scott – the city of Chico is hostile toward other agencies. They have a poor record with Chico State and with CARD. It’s always Repo Man grab with the city of Chico.

  2. Jim's avatar
    Jim July 3, 2023 at 11:05 am #

    The bigger problem is that these developments don’t pay to cost of their own overhead. So they raise taxes on the rest of us to pay those costs.

    For example, the taxpayers are paying for the widening of Bruce road. They keep asking for more school bond taxes to build new schools. They are raising our sewer taxes to pay increase capacity at the treatment plant. Measure H to keep up with growth. Raising parking meter fees. Shouldn’t the developers pay for all this?

    • Juanita Sumner's avatar
      Juanita Sumner July 4, 2023 at 6:06 am #

      Developer fees were just increased, again. But have they been collected is the question – in past, the city has allowed developers to pay their fees when they finish their projects, years later. While that’s typical, some people seem to take advantage. I remember when then-city council member Mark Sorensen told me that 5 major developers had not paid their fees, including Tom DiGiovanni. I had questioned the use of RDA money to pave the streets in the new Fogarty subdivision on Hwy 32.

      And then you have to ask yourself where the money goes – years back, 5 developers, including Webb, successfully sued the city for $500,000 they’d paid in fees that hadn’t been used on their subdivision streets.

      I think the fees are plenty high but you have to ask yourself if they are collected and where they are used.

      On the other hand, we pay almost $7000 a year in prop taxes on our rental, and the street in front hasn’t been serviced in the 22 years we’ve owned the property.

      On an aside – I’ve always suspected that Sarah Winchester wasn’t crazy, she was just trying to get out of paying the fees.

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