AFFORDABLE HOUSING COMPROMISE OFFERED.

Byline: Rick Orlov Staff Writer

A coalition of business groups and builders offered a compromise Tuesday to a city proposal that would require developers to set aside housing units for the poor.

Carol Schatz, president of the Central City Association, said the compromise would counter what the group sees as onerous provisions of the so-called ``inclusionary zoning'' proposal pending before the city. It would allow for more development of all price ranges of housing, while keeping neighborhoods intact.

``We have to recognize that we have limits and that we can't grow out anymore,'' said Schatz, whose compromise has been endorsed by several other business groups.

Key provisions of the compromise would create overlay zones allowing additional development, with bonuses to developers who build below- market-value housing.

``Affordability begins with availability,'' said Ray Pearl of the Building Industry Association. ``The only true policy to solve the home-affordability crisis in Los Angeles must address the supply and production of new homes for families.''

City Councilman Eric Garcetti, one of the authors of the ``inclusionary'' zoning measure, said he liked much of what was being proposed.

``There's a fine line between a mandate and an incentive under their proposal, but we can talk and try to work out the differences,'' Garcetti said.

The zoning measure being considered by the City Council would require a ``set-aside'' of up to 20 percent of all new construction for affordable units.

It has raised fears among several neighborhood councils and homeowners groups about the prospect of overdevelopment. The council is expected to address the issue in September.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com