Los Angeles Mayor Eric Garcetti was made aware of the proposed ballot measure aimed at cracking down on Real Estate Development, also known as “mega projects”, could make things worse for the city’s renters.
“We still need to build things in Los Angeles” – Eric Garcetti, L.A. mayor
Garcetti said he plans to meet with backers of the proposed ballot measure, including the AIDS Healthcare Foundation, to see if an agreement can be reached that avoids a public vote. He also said the restrictions contained in the ballot proposal could depress housing construction for Angelenos already facing “higher and higher rents.”
Los Angeles Hard Money Lenders say the AIDS nonprofit is part of the Coalition to Preserve L.A., a group of activists inquiring new limits on the city’s ability to change planning and zoning rules for specific Real Estate Development projects. The group said it wants voters to impose a moratorium of up to two years for Real Estate Development projects that require an increase in the denseness.
Foundation President Michael Weinstein said that neither Garcetti nor his staff had reached out to him to discuss the ballot proposal Weinstein also disagreed with the mayor’s assertions, saying the current real estate boom is producing homes for the well heeled and not for the “average joe”.
Proposal for Real Estate Development
Los Angeles Hard Money Lenders say the Hollywood based AIDS Healthcare Foundation is fighting a proposal for two 30story residential towers on a parking lot next to its headquarters. To win approval, that project will need a zone change and other special approvals.
The proposed ballot measure also seeks to scale back the city’s power to decrease the number of parking spaces required at a particular Real Estate Development project.
“The stuff that’s being built now is all beyond the reach of even middle income people” – Eric Garcetti, L.A. mayor
Los Angeles Hard Money Lenders say Garcetti has set a goal of 100,000 new housing units by 2021. Appearing at a news conference dealing with El Niño, he argued that the space between average incomes and the average rent is worse in Los Angeles County than in any other part of the United States.
Permitting Process Nightmare
Los Angeles Hard Money Lenders say business officials have complained for decades about a tedious and cumbersome city permitting process, saying it delays redundant projects and raises costs. Although government officials have pledged to tackle the matter numerous times, few in the Real Estate Development industry say things have improved.
Los Angeles Hard Money Lenders say now, there is another effort to streamline the permitting process for large projects. Mayor Eric Garcetti recently launched the Inspection Case Management Initiative, which is intended to lower construction times and costs for 600 projects a year citywide. The effort is drawing initial praise from developers in Downtown Los Angeles and beyond.
Garcetti hopes the program will shorten project completion times by three to six months. It would apply to all Real Estate Developments with a budget of $10 million or more.
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