Officials Urge Developer to Prioritize Local Buyers
(CLAIR | Simi Valley, CA) — Simi Valley’s City Council has approved a 26-unit townhome development at 4868 Cochran Street, including three affordable units for moderate-income buyers. These units will be restricted for sale and occupancy to moderate-income households for a period of 45 years under an affordable housing agreement.
To qualify for the affordable units, a two-person household is used as the basis for determining eligibility, with a maximum income limit of $120,000 for such households.
The site is located behind the Korean Baptist Church and was identified in the city’s housing element as a location for new housing. The council’s approval includes both a development permit and an affordable housing agreement with City Ventures Homebuilding LLC, the project developer.
City staff explained that the project makes use of underused land and supports the city’s long-term housing goals. The plan includes four buildings, each three stories tall, with units ranging from one to four bedrooms. Every unit includes a garage, and the development will have 10 guest parking spaces, landscaping, and a shared outdoor area with picnic tables and a barbecue.
Councilmember Joseph Ayala raised concerns about the affordable units being limited to one-bedroom homes. He stated, “Families can’t move into one-bedroom units. We talk about keeping our kids here in Simi Valley, but these homes don’t help us do that.” He requested that future projects consider spreading affordable units across multiple bedroom sizes.
Councilmember Elaine Litster asked about neighborhood feedback, noting that Neighborhood Council 1 voted against the project (6-4, with the audience split 4-1) and Neighborhood Council 2 had mixed feedback (6 in favor, 2 opposed). Litster requested that city staff summarize the concerns raised by the councils and whether the developer had addressed them.
A discussion also took place regarding whether the city could prioritize local buyers or prevent investors from purchasing multiple units. City officials clarified that the affordable housing agreement gives first priority to applicants who live or work in Simi Valley. For all other units, there are no restrictions on who may purchase them, and the city confirmed it does not have an ordinance limiting bulk purchases by investors.
A representative for the applicant, City Ventures, spoke in favor of the project, stating: “We’ve met with multiple neighborhood councils and worked extremely hard to ensure that the design we’re proposing tonight exceeds all city expectations. City Ventures, founded in 2009, is one of the leading infill development companies in California. We focus on green and efficient building features that benefit both homeowners and the city.”
The representative also explained that in 2021, the city updated its general plan and zoning to allow residential high-density development in the surrounding area, including the project site and properties along Cochran Street. The Lighthouse Bible Church to the east is currently going through the entitlement process for redevelopment into housing, while a senior living apartment complex to the west, built in 2015, consists of 53 units. Fourteen trees will be removed as part of this development, but 14 replacement trees will be planted. Once completed, the development will be managed and maintained by a Homeowners Association. The representative emphasized that the project is a step forward toward addressing the city’s housing needs.
In response to questions about prioritizing Simi Valley residents for purchasing units, the developer stated, “I don’t know if it’s required, but it is something we typically do. I will need to confirm with our sales team, but that’s the intent, if that’s what is in the agreement. We have no problem with that.” The developer also noted that while the total number of units that can be purchased by investors was still to be confirmed with their sales team, they believe the limit is 10%, ensuring that no single investor could purchase the entire development.
Councilmember Joseph Ayala raised concerns about the choice of the three one-bedroom units as the affordable housing units. The developer, City Ventures, explained that the decision to designate one-bedroom units for affordable housing was driven by the project’s overall design and market demand. The developer described the three-story townhomes as “attainable homes”, noting that the median price for a single-family home in Simi Valley is $850,000, and the one-bedroom units would be priced at $357,000, significantly lower than the median.
The developer further explained that the smaller units are intended to serve individuals, retirees, and couples who may not be able to afford larger homes. While acknowledging that the one-bedroom units may not suit larger families, the developer emphasized that the goal was to provide affordable options for single individuals, couples, and others who are often priced out of homeownership due to rising rental costs and a lack of smaller housing options. However, the developer also noted that spreading the affordable units across multiple sizes (e.g., one, two, and three-bedroom homes) would be financially infeasible for a project of this scale.
In response, Councilmember Ayala expressed his concern that the proposed affordable units would not adequately support families, especially those hoping to remain in Simi Valley and raise their children there. He suggested modifying the affordable housing agreement to include one one-bedroom, one two-bedroom, and one three-bedroom unit, while maintaining the total of three affordable units. Ayala also expressed his concern that affordable housing should be considered at the beginning of the planning process, not as an afterthought. He added that he would ask the city attorney to discuss whether the city could adopt an inclusionary housing ordinance to provide more influence over the affordable housing makeup in future developments. Ayala acknowledged that the developer was following the letter of the law, but emphasized the importance of also following the spirit of the law.
After the extended discussion, the Council voted in support of the development proposal. They recognized the city’s need for housing and the challenges of balancing affordability with feasibility. While there were concerns, particularly regarding the affordability of the one-bedroom units for families, the council members agreed that the overall plan aligned with the city’s long-term housing goals. Councilmember Ayala, while supporting the project, emphasized that future housing projects should consider a more diverse range of affordable unit sizes earlier in the planning process.
The project includes several waivers to development rules, such as reduced setbacks and changes to parking space dimensions. These waivers are allowed under state housing law because the project includes income-restricted units.
The council passed the development proposal and agreement unanimously. Construction is expected to begin later this year.
