- Elizabeth Larson
- Posted On
City of Clearlake to introduce homestead housing program to create more high-quality homes
The program is the result of a proposal that City Manager Alan Flora put before the council at its Oct. 1 meeting.
He received unanimous support and the council’s approval to earmark $1 million from Series B bond funds for the program.
Flora said staff is trying to figure out a creative solution to encourage housing development, especially market-rate development in the city.
That’s been difficult not just in Clearlake but in the state as a whole, Flora said.
While Clearlake has been home to a number of affordable housing developments over the years, they’re feasible because of subsidies offered by the state and federal governments, he said.
One of the long-term impacts of Northern California’s wildland fires, Flora said, has been to significantly increase construction costs, which now range about $300 per square feet.
For a 2,000-square-foot home, that’s a cost of $600,000. While that might work in a county like Napa, where average homes cost $719,000, or in Sonoma County, where the average home cost is $652,000, Flora said it doesn’t work in Lake County, where the average home cost is $262,000. It’s even less feasible in Clearlake, where the average home price is $173,000.
Flora said that in order to encourage new home construction, incentives are necessary. It would cost millions of dollars to fund a subdivision, so instead, he proposed focusing on individual homeowners and housing in the mid-range of $250,000 to $400,000.
Those are the kinds of homes sought after by professionals but hard to find in Clearlake. Both Adventist Health and Tribal Health have raised that issue when it comes to their employees finding homes. Because of a lack of housing, many employees for those two health care organizations have had to live in other areas of the county, he said.
Flora said the goal is to offset some of those challenges and make it easier for those professionals to build new homes in the city.
Proposed program requirements include that the home be owner-occupied; the applicant must have an existing job within Lake County or a verified employment offer; income level must be classified as median- to moderate-income level, ranging from $49,500 for a one-person household to $84,850 for a four-person household; have the ability to obtain commercial financing for the construction of a new stick-built home or new manufactured home; complete construction of the home within 12 months of the issuance of a building permit; the applicant must enter into an agreement with the city of Clearlake to meet the program requirements in exchange for various subsidies, otherwise the property revert to the city or a lien will be placed on the property to recover the amount subsidized; all obligation of the program participant to the City will cease with the issuance of a certificate of occupancy; and program participants must meet all local and state codes.
Program participants will receive assistance valued at $40,000. They can have a city-owned lot or assistant of up to $10,000 in purchasing another lot.
Flora said he’d hoped by now the city would have been able to acquire some of the tax-defaulted properties throughout the city and work them into this program. That’s not yet reasonable yet with the ongoing situation with the county’s treasurer-tax collector, he said.
While the $40,000 offered by the program wouldn’t cover all costs to build a house it would help cover fees and plan checks for a house up to 1,800 square feet in size, Flora said.
He said the city also has started reaching out to some banks and has talked to contractors, who have said it’s a great plan.
Another idea that’s being considered is to have an architect draw up some sample floor plans, he said.
“I think this is exciting,” said Vice Mayor Dirk Slooten, who raised the issue about whether people who are telecommuting could apply.
Flora said the program currently isn’t written that way, but since it’s a part of the changing workforce that’s likely to linger, if the council supported it, staff could figure out how to make the program work for such applicants.
Slooten asked if the $40,000 value would become a lien, but Flora said that wasn’t staff’s recommendation.
“Ultimately, I think, the goal here is new quality houses,” said Flora.
If an applicant built a home and decided to leave later, Flora said the city would still have what it wanted – a quality new home. He believed the banks, through a construction loan, would be a partner in making sure the construction was finished.
Councilwoman Joyce Overton said she’s fine with new housing but not fine with not putting on the lien requirement. She said she is concerned people will build the homes then sell and take the profit elsewhere, and she doubted they could depend on the banks.
Flora said staff wanted to move forward with developing the program, including coming up with an application. He said requirements could be changed.
“This is great. This is exactly what we should be investing in,” said David Claffey, a member of the city’s marketing committee and a candidate for council this year.
Claffey said that, in quickly doing the math, he estimated the program as presented could help develop 20 to 25 homes.
He asked how many homes have been developed yearly in the city. Flora replied that the bulk of them over the last few years have been Sulphur fire rebuilds.
Councilman Russ Perdock called the program “very exciting.”
The council voted to approve the proposal 5-0 and, in a separate motion, approved amending the budget to allow for use of the funds for the program.
Flora told Lake County News that he’s moving forward with putting the program together.
He’s developing some program flyers that can be shared with employers and others to get the word out about the program.
“I am also developing some partnerships with banks and contractors. The goal is to have a few places that are aware of the program and are willing to partner on these projects to make it as easy as possible for those interested in building,” he said.
Flora said he expects to be ready to take applications by Nov. 1 or before.
“There has been a lot of interest in this, so I am looking forward to getting some homes started,” Flora said.
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it.. Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.