It’s no secret that finding affordable housing options in California is an ongoing struggle for many residents.
In an effort to alleviate this ongoing housing crisis, the state recently passed new laws designed to encourage building more homes at a faster pace. However, not everyone likes the new rules, including the residents of Corona, California.
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Some are furious about the impending development of 38 housing units by Tricon Residential, according to KCAL News.
Prior to the new state laws, Corona City Council approved the company building 19 units in the housing development. But, the recent laws that went into effect allowed Tricon Residential to double the number of accessory-dwelling-units (ADUs) built within the same lot.
At this point, the City Council can’t do much. Essentially, the state law allows for this change to the proposed development with little recourse for the locals.
“I don’t want a cracker box across the street,” local resident Paulette Perry said in an interview with KCAL News. “I want something that looks like our neighborhood.”
Why Corona residents and leaders are pushing back
The location of the proposed two-story housing development is nestled into a neighborhood filled with single-family homes. Most of which were built in the 1960s and 1970s, which gives the neighborhood a classic look.
“They’re overpopulating our little area here,” Perry told KCAL News. “You’re not building to our neighborhood, you’re building way too high.”
Perry’s petition to stop the development from moving forward amassed 172 signatures. But even with this upswell of community support against the additional housing units, there’s little the City Council can do.
Tom Richins, a Corona City Council member, claims the new state laws keep the city’s hands tied.
“You either vote their way, or the city faces lawsuits,” he told KCAL. “It’s just turned into: We need more houses, however you can jam pack ’em in, the state would like you to do that.”
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New developments and housing costs
Because of the state laws recently introduced, it’s likely the housing project will keep moving forward with 38 total units.
Richins told KCAL News that developers can now rake in extra cash under the guise of creating affordable housing.
These new housing units won’t be available for sale. Instead, new residents of this built-to-rent community have the opportunity to rent out the units for a monthly rate similar to a mortgage payment.
With Tricon properties rented out in the mid-to-high $3,000 per month range, these rent-ready houses aren’t necessarily an affordable option for everyone. Especially when compared to the median gross rent of housing in the area at $2,136.
Since the number of units doubled, it seems likely that Tricon Residential will stand to earn significantly more in rental income by creating additional units.
Tricon Residential’s Corona project is being developed in partnership with Foremost Pacific Group and Woodbridge Pacific Group.
The intent of this built-to-rent community is to increase access to single-family living accommodations for families who can’t afford to buy a place but can afford to rent a space.
“We are proud to partner with Tricon on this much-needed community, which will expand rental housing opportunities for families in Corona,” said Andrew Murphy, Chief Investment Officer at Foremost Pacific Group in an interview with Yield Pro. “Tricon Corona is thoughtfully designed to provide residents with high-quality homes in a great neighborhood, with the convenience of professional management and access to great local amenities.”
According to the Public Policy Institute of California, more than 50% of all adults say housing costs are a financial strain. With average home prices in Corona sitting at $772,888 and median household incomes sitting at $106,438, it could take a significant boost to housing supply to bring prices down to a level that residents can afford.
Generally, experts recommend not spending more than 28% to 30% of your gross income on housing. For a household with a take-home income of $106,000, that means they can spend roughly $2,473 per month on housing costs, like a mortgage, to stay within this guideline. That’s significantly lower than the potential monthly rental costs of this new housing development.
Unfortunately for the concerned Corona citizens, the project seems unlikely to stall. But it’s unclear if built-to-rent communities will solve the housing crisis in California.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
