California’s ambitious legislative agenda reflects a genuine commitment to addressing the housing crisis. However, as the YIMBY Law report indicates, passing laws is only the first step. Effective implementation, coupled with strategic adjustments and collaborative efforts, is essential to transform these policies into the affordable housing that Californians desperately need.
California’s housing crisis has prompted a flurry of legislative activity aimed at increasing the state’s housing supply, but to limited effect as the YIMBY Law report finds.
Several key pieces of legislation were designed to address various aspects of the housing shortage:
- Senate Bill 9 (2021): Intended to eliminate single-family zoning by allowing homeowners to split their lots and build duplexes. Despite its potential, only 140 units were permitted under this law in 2023.
- Assembly Bill 2011 (2022): Aimed to facilitate the conversion of commercial spaces into residential units. In 2023, only two projects received local approval under this law, with eight more in 2024.
- Senate Bill 6 (2022): Similar in intent to AB 2011 but with stricter labor requirements. The report found no projects utilizing this law to date.
- Assembly Bill 2295 (2024): Enabled religious institutions to develop affordable housing on their properties. As of the report’s publication, no such developments have commenced.
The report finds that the limited impact of these laws can be attributed to several factors:
- Stringent Requirements: Many of these laws include provisions that, while aiming to protect workers and ensure affordability, inadvertently deter developers. For instance, mandates to hire union labor or pay prevailing wages can increase project costs, making them financially unfeasible.
- Economic Climate: High interest rates, labor shortages in the construction industry, and rising material costs further exacerbate the challenges. These economic headwinds make new developments risky and less attractive to investors.
- Local Resistance: Despite state-level mandates, local jurisdictions often employ various tactics to delay or obstruct developments. This resistance can stem from community opposition, bureaucratic inertia, or differing local priorities.
Recognizing the gap between legislative intent and on-the-ground reality, advocacy groups and state agencies are stepping up enforcement efforts. The California Department of Housing and Community Development (HCD) received a $4.65 million budget allocation to build a team dedicated to ensuring compliance with housing laws.
Leora Tanjuatco Ross, organizing director with YIMBY Law, emphasizes the need for a cultural shift in housing perceptions: “We’re going to have to have a conversation about revising the sacredness of single-family zoning… This is just the beginning. There’s a lot of work to do.”
To translate legislative efforts into tangible housing developments, the report suggests several strategies should be considered:
- Simplify Regulations: Streamlining requirements can reduce barriers for developers. While labor protections and affordability mandates are essential, finding a balance that encourages development without compromising these values is crucial.
- Enhance Local Collaboration: Building partnerships between state agencies, local governments, and communities can foster a more conducive environment for development. Education and outreach can help mitigate local resistance by highlighting the benefits of increased housing supply.
- Economic Incentives: Offering financial incentives, such as tax breaks or subsidies, can offset the high costs associated with construction and make projects more viable.
- Robust Enforcement: Ensuring that local jurisdictions comply with state housing laws is vital. The HCD’s enhanced enforcement capabilities are a step in the right direction, but consistent oversight and accountability are necessary.
