Newport Beach residents near John Wayne Airport will see fewer affordable homes built in a 145-acre development zone after the City Council cut the inclusionary housing requirement for projects selling units and formally overrode a regional commission's objection to the change.
The council voted July 14 to reduce the affordable housing mandate in the Newport Place Planned Community from 15% to 6% for low-income units and 8% for moderate-income units in for-sale projects. The action also overrode an April 16 determination by the Orange County Airport Land Use Commission that found the amendment inconsistent with the 2008 airport area plan.
The reduction was prompted by Intracorp Homes, the developer of a 67-unit luxury condominium project within Newport Place. The company initially submitted plans meeting the 15% threshold but returned to the city arguing the requirement was cost-prohibitive, the OC Register reported.
"They asked the city to consider reducing it for for-sale projects, and we did an analysis and realized that 15% for a for-sale project is too high," Community Development Director Jaime Murillo said at the July 14 meeting.
If Intracorp resubmits under the new rate, the number of affordable condos in its project could drop from 10 units to as few as six, according to Murillo. The company has not yet filed a new application.
The change applies only to for-sale projects. Four rental developments already approved in the same area remain subject to the 15% requirement.
A shrinking mandate
The Newport Place housing overlay has been reduced twice in four years. When it was adopted in 2012, the overlay required 30% affordable housing. That dropped to 15% in 2023 and now sits at 6% for low-income for-sale units.
Newport Beach must plan for 4,485 new housing units by 2029 under its state-mandated Regional Housing Needs Allocation. Of those, 1,456 must be zoned for very-low-income residents, 930 for low-income and 1,050 for moderate-income. The city is required to create zoning conditions for development but does not have to build the units itself.
Residents criticize reduction
Residents criticized the reduction during public comment at the July 14 meeting. One said the council bends over backwards to help developers avoid building affordable housing and warned that state mandates cannot be deferred indefinitely.
Another resident noted the airport area was designated for affordable housing more than a decade ago but said the overlay has failed to produce the units it was meant to require.
No council members responded during the public comment portion of the meeting.
The Voice of OC reported that state transportation officials and airport commissioners have also said the move does not follow their guidelines for the area.
What's next
The Planning Commission meets Thursday, Aug. 6 at 6 p.m. in City Council Chambers, 100 Civic Center Drive, to discuss Airport Area housing. Residents can attend or submit written comments through the city's meeting page.
