CHEAPER HOMES MAY MAKE RESIDENTS OF CITY WORKERS.

Byline: Rick Orlov Staff Writer

With most families priced out of a home in Los Angeles, local officials and builders have come up with incentives to make housing more affordable - at least for government and health care workers.

By setting aside parts of new developments for affordable housing, offering low- or no-interest loans and even discounts, officials hope to attract the targeted class of workers - teachers, nurses, firefighters and police officers - and stimulate the flagging construction industry.

``We need to find a way to provide good housing for people who are doing good for the city,'' said Steve Soboroff, president of the Playa Vista development project and a former candidate for mayor.

``What we've done is set aside 15 percent of our nearly 6,000 units to make them affordable so these people can live in the city.''

The Playa Vista development near Marina del Rey is unique in Los Angeles today because it is building new units on one of the last large pieces of available land. Most other development is taking place as either replacement housing or part of a gentrification of the inner city where lofts, old hotels and other businesses are being converted into housing units.

But the concept of workplace construction and incentives for city workers is catching on with other builders in the city and across the state.

Pollster John Fairbank said he has been called in to assess public reception to new projects - both with and without the incentives, particularly for teachers.

``The reason is, we are looking at communities that have been traditionally against growth,'' Fairbank said. ``But as a result, housing is so expensive that people like teachers can't afford to live there. Offering incentives is a way to keep teachers in a community that they couldn't otherwise afford to live in.''

The effort to make housing more affordable to government workers takes a variety of forms - low-interest loans, credits, discounts.

Julie Butcher, general manager of Service Employees International Union, Local 347, which represents many city workers, says the price of an average home - $335,000 - is too high for many.

``And the fact is, city workers can't afford to buy in this city. If we can offer incentives, we not only make good neighborhoods - these are people who get involved in neighborhood councils and PTAs - but we help save the middle class in the city.''

City Planning Director Con Howe said work-force housing is becoming more common in development planning.

``The debate has changed from 'public housing' to 'affordable' to 'workplace housing,''' Howe said. ``Workplace housing has an emphasis on police, firefighters and teachers.''

Los Angeles does not require developers to provide affordable housing, but it offer bonuses to encourage density.

Jack Kyser, chief economist of the Economic Development Corp., said new initiatives are needed.

``If you look at costs today, it's out of the reach of a lot of people,'' Kyser said. ``We are running out of land in Los Angeles and running out of freeway capacity, so we have to look at ways we can encourage in-fill and keep people in the city.''

Mayor James Hahn created the Affordable Housing Trust Fund last year with a goal of getting it funded to the $100 million level, but until that happens, other jurisdictions have been developing their own programs to help employees.

Beverly Cook, vice president of United Teachers Los Angeles, said a program has been established to help teachers find houses.

``It is particularly tough for new teachers, who aren't making the money that police officers or firefighters do,'' Cook said. ``We want to see teachers be part of the neighborhood and familiar with what's going on and not have to drive 60 miles each way every day to get to work.''

Ten years ago, the city responded to the 83 percent of police officers who lived outside the city with a program to help them find housing in Los Angeles. But money was limited, and the program had little impact.

``This is a work-force issue,'' said Councilman Eric Garcetti, who has been an advocate for affordable housing. ``We are looking to preserve the middle class in this city and this is one way to do it.

``We are looking for a way to find dollars to subsidize an officer who can live in the city.''

Councilwoman Wendy Greuel noted that Los Angeles has one of the worst homeownership rates in the country, at 38 percent.

``Homeownership is one of the components to improving neighborhoods,'' she said.

Sam Mistrano, acting executive director of the Southern California Foundation of Nonprofit Housing, said Los Angeles needs 60,000 new housing units.

``We used to see people move up in the housing market, but that's no longer the case. A lot of people get in a position where they can't afford to move.''