'Inclusionary
Zoning' Backers Say Living-Wage Data Makes the Case
Los Angeles Garment & Citizen - June
6, 2005
Proponents of an "inclusionary zoning" ordinance
that would require a certain amount of residential units
to be offered at "affordable" rates in developments
citywide ramped up their efforts last week, claiming that
a recent study on the city's living-wage regulation amounts
to proof that fears about changes to housing policy are
overblown.
Affordable housing generally refers to units for sale
or rent at prices within the budget range of households
with annual incomes of less than 80 percent of the median
for the region. A four-member household with annual income
of approximately $40,000 would qualify for affordable
housing, for example. The living-wage ordinance requires
most companies with city contracts to pay their employees
at least $8.78 an hour with healthcare benefits, or $10.03
an hour without.
A
June 3 press conference at City Hall had some proponents
drawing links between the living-wage study and the
push for inclusionary zoning. Among the elected officials
at the press conference were 1st District City Councilmember
Ed Reyes, the 7th District's Alex Padilla, and 45th
District California State Assemblymember Jackie Goldberg.
Reyes
and 13th District Councilmember Eric Garcetti have led
the push for the inclusionary zoning ordinance in the
15-memer body, which could take up the matter as early
as this week.
Some
proponents of the inclusionary zoning plan recalled
a debate several years ago over the living-wage ordinance,
when many opponents forecast grim results, claiming
that the requirement would cost jobs by prompting employers
to cut staffing levels to offset the higher wages.
Inclusionary
zoning backers used the press conference to highlight
results of the recent study, which found that the living-wage
ordinance has led to pay hikes for 10,000 jobs in Los
Angeles, with a relatively decline in employment of
1 percent. The majority of jobs affected by the ordinance
are at Los Angeles International Airport and Ontario
International Airport. The average pay increase mandated
by the living-wage ordinance came to $1.50 per hour,
or $2,600 per year, according to the study.
The
study also found what it's authors described as some
significant benefits for employers who have been required
to pay the increased wages, including reductions in
employee turnover and absenteeism. The reduced turnover
rate, which often means lower costs for recruitment
and training, has helped employers recover 16 percent
of the wage-hike, according to the study.
The
non-profit Ford Foundation, the University of California
Institute for Industrial Relations, and Los Angeles
World Airports-a city-owned entity that operates Los
Angeles International Airport and other facilities-funded
the study. Economists from the non-profit Los Angeles
Alliance for a New Economy (LAANE), UCLA and the University
of California at Riverside conducted the study.
LAANE
spokesperson Danny Feingold said the group hopes the
study will short-circuit some of the arguments against
the inclusionary zoning ordinance.
"During
the living-wage debate, opponents said it would drive
businesses out of the city and result in a catastrophe-and
those same arguments are being used on inclusionary
zoning," Feingold said. "Now we have hard
evidence that the sky didn't fall."
The
living-wage study-and efforts to link it to the debate
over inclusionary zoning-is unlikely to soften up opposition
among many in the business community Downtown, however.
Many real estate developers and business advocates claim
that mandatory regulations for affordable units will
drive costs up and force developers out of the city
at a time when it faces a housing shortage.
The
Central City Association (CCA), a leading business advocacy
group Downtown, has offered a counterproposal to the
inclusionary zoning ordinance. The CCA plan would rely
on incentives rather than requirements to foster more
affordable housing in the city, and the group's efforts
earned plaudits from Garcetti several months ago. More
recently, however, the timing and specifics of a widely
anticipated revised version of the proposal have remained
unknown, casting doubts on any compromise that might
allay developers' concerns.
The
debate could turn as much on politics as policy, too.
The
proposed inclusionary zoning ordinance has long been
claimed as a key issue by vocal supporters, including
community activists and elected officials who often
describe themselves as "progressive."
But
the issue drew relatively little attention during the
recent mayoral campaign, when many of its backers-including
Garcetti and Reyes-supported Los Angeles Mayor James
K. Hahn's bid for reelection even though he opposed
inclusionary zoning. LAANE executive director Madeline
Janis Aparicio, meanwhile, is a Hahn appointee to the
board of directors of the Community Redevelopment Agency
of Los Angeles.
The
recent moves to put the inclusionary zoning debate back
on the front burner come as 14th District Councilmember
Antonio Villaraigosa, who beat Hahn handily in the May
17 vote, prepares for his transition to the top office
(see related story, page 1). Villaraigosa initially
backed the concept of inclusionary zoning, and has more
recently said that he wants to review any revisions
to the proposal.
The
timing of the ordinance could force Villaraigosa into
a decision prior to shift from the City Council to the
mayor's office, a development that holds the potential
to provide an early benchmark on his relations with
the business community and backers of the ordinance.
But
the proposed ordinance could face an uphill battle in
the 15-member council in any case, meaning Villaraigosa
may not have to deal with it if a vote comes after he
has been sworn in as mayor. However, passage in the
City Council after Villaraigosa's swearing in would
put him in position to sign or veto the ordinance-and
might also provide the chance for him to display his
highly vaunted consensus-building skills.
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