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Developers may take part in a new Southern California plan

On Behalf of | Nov 20, 2019 | Development |

As most people in Southern California are aware, the region does not have enough affordable housing to go around. In an effort to combat this situation, the Southern California Association of Governments recently approved a plan that would provide around 1.3 million new homes over a 10-year period. This could provide an opportunity for some developers.

The plan will affect parts of Orange County, despite resistance. In fact, many of the individuals who voted against the plan came from this area. The area has historically been against housing development, but that did not keep the SCAG from dramatically increasing the number of homes projected for the area by the end of the planning period. One argument was to send companies further inland to where more housing is available instead of bringing more homes to the coastal areas.

The problem is attracting developers. Zoning issues could prove challenging, along with area resistance. Each area may appeal the numbers proposed for their areas, which could delay any potential projects and deter developers. Numerous issues need to be worked out in order for the plan to move forward. The question is whether the governments can provide appropriate incentives to attract developers.

Building here in Southern California can be a challenge for developers due to zoning issues and other laws that could impede the process. Dealing with governmental agencies usually presents certain obstacles, and attempting to deal with them alone may not be the best option. Instead, it might be better to consult with a real estate attorney with experience in commercial developments.