The OC Board of Supervisors just unanimously approved deferring development fees for builders in what the board is calling an economic stimulus package. In a 5-0 vote, supervisors decided to waive for one year some road, library, park and other development taxes charged to companies before they build homes.
The proposal was being lobbied by the Building Industry Association of Southern California. The group’s Orange County Chapter CEO, Kristine Thalman, said other cities in the state have already decided on such deferments, including Anaheim, which did it temporarily, and Orange, which made the cuts permanent.
“Deferring fees will actually help stimulate building activity,” she said. “It’s not a hand out, by any means.”
Read about the plan here and click below for more on the story.
Thalman said the deferments will not only help builders, but will trickle down to interior designers, home improvement stores, workers in the trades, and even bankers.
Supervisor Pat Bates said she sees the plan as an “ecnoomic survival package that benefits both sides of the equation,” meaning the building industry and the people who are hired by the companies.
Despite some questioning of the plan, Supervisor Chris Norby later voted for it. The housing market in Southern California has always been up and down, he said, and “one person’s crisis is another person’s opportunity.”
“I don’t know that it’s our business in government to try to stimulate the market,” he said.
Fees for schools and public safety will not be deferred, said Supe John Moorlach, who proposed the plan.
Is it the builders.. or the buyers who need a break?? I say the buyers.. these developers have fat enough pockets/
Yeah, the builders need a break! I applaud the Supervisors in finding one way to stimulate the economy. Builders surely have an upside, but they also have a big downside when times are tough. It is so hard to get something approved, get something financed, employ lots of people to build it, and then risk sitting on inventory. The people who used to design and build the homes loose their livelihoods, as well as those who sell, finance, insure, and maintain the homes. On the other hand, those who can buy or rent will in turn buy furniture, bedding, dishes, appliances, and so on, creating an economy. They will move closer to work to reduce their commute, or move near schools so their children will establish their roots, or otherwise improve their lives. Whether or not any new homes are built, demand will still be there, ever increasing. We need more innovative ideas like these to get the ball rolling again.
I’m glad our reps are taking care of the people who matter the most. Let’s build a bunch of homes that people can’t afford!
M.W. Really!? That old cliche of the big rich home builder is long gone. Havent you seen the billion dollar losses reported by home builder of the last several months? You must be sleeping under a rock somewhere. I am suprised these home builders aren’t filing for non-profit status in this market.
Jason needs a lesson in economics. These Building companies employ thousnads of men and women in this County, not to mention the tens of thousands that work for trades and matreial suppliers, etc… These people are losing their jobs smart guy. Job loss equals economic ressesion. Think about it it before you reply with simpleton knee jerks.
Yea, but I can’t help wonder what the real story is here. Is it a coincidence that OC Builders (Newport Beach variety) make up the hub of the Republican political machine in Orange County. I wonder who whispered in Moorlochs ear.
If you don’t build it they won’t come. I so agree with so fed up. It is all about the great Republican machine. I have just changed my party affiliation to “decline to state.” I do not want to claim either party. Maybe they should rename to the GOB, Good ol Boys.
Here is the real story for the cynics out there… for those that think the building industry is not taking a hit… take a look at the following headlines and draw your own conclusions. These companies employ your neighbors who are out of work. These companies purchase goods from a variety of businesses who are also feeling the crunch and laying off employees. Do you truly understand how broad the building industry impacts your local economy?
Losses Add to Beazer Homes’ Woes
Meritage Loses $45 Million in Q1 of 2008
M/I Reports $22.1 Million Loss
Centex Loses $2.66 Billion in FY2008
D.R. Horton Reports $1.3 Billion Loss in Q2
D.R. Horton Report Says Orders Are Down 40 Percent
Centex First Quarter Home Building Revenues Are Down 32 Percent
Standard Pacific Corp. Weighs in with 2Q Losses
Masco Corp. Drops 6 Percent
Toll Brothers’ Revenue Drops 21 percent
Orleans Homebuilders Reports Fourth Quarter Losses
Nevada’s First Solar Community Launched
WCI Communities loses $579 million in 2007
Lennar Loses $88.2 Million in 2008’s First Quarter
KB Home Reports $268 Million First-Quarter Loss
Arkansas Pro Dealer Stands Up for Suppliers
WCI Revenue Plunges 59.5 Percent; Company Reports $84.1 Million Loss
Avatar Reports First Quarter Loss
What about the interest the county will be losing? We don’t need more buildings!! We already have all these foreclosed homes to sell. This will just create more traffic. I’m sorry people are losing jobs, but I don’t think this is the way to help Orange County. Maybe those employees can get involved in jobs for things we do need.
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