12/25/2024

News

Dan Walters: Will California politicians really address housing crisis or settle for tokenism?

Simple arithmetic reveals why permit streamlining is critical. The state says we need 180,000 new units of housing a year, but we’re building only 100,000 now. Closing that 80,000-unit gap would require more than $26 billion a year in additional investment at the average cost of $332,000 per unit for lower-end housing cited in Brown’s budget. Under even the best circumstances, therefore, the state could provide only a tiny fraction of the needed money, so making it easier for private and non-profit money to flow into actual construction is the most vital element of any package. The major pitfall is that faced with the difficult politics, Brown and legislators will settle for a token response – throwing a few billion dollars at the problem that won’t make even a small dent and failing to enact the regulatory reforms. That not only would ignore the most vital issue, but would allow politicians to claim a face-saving, undeserved victory, much as they did for a roadway improvement package that covers only a fraction of the unmet need.

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Affluent Marin County can continue to limit home building under bill signed by Gov. Jerry Brown

Marin County will continue to limit home building beyond what other regions of California are allowed under affordable housing laws after Gov. Jerry Brown signed legislation Friday afternoon. The measure, Senate Bill 106, lets Marin’s largest cities and incorporated areas maintain extra restrictions on how many homes developers can build. Assemblyman Marc Levine (D-San Rafael) inserted the provision into the bill, which was tied to the state budget and didn’t have to go through the regular committee process.

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House-rich, cash-poor: why these older LA homeowners are standing with Airbnb

Pollack found she could make enough extra income renting out a bedroom and her pool house so that she could keep paying the mortgage on her Sherman Oaks home. And she could still pursue acting and producing, even though work is harder to come by as a woman in her late 50s. “My greatest income of source is my home, and if I lose both of those – honestly, it’s not an option for me,” Pollack said. The unthinkable for home sharers has become a looming possibility as city officials move toward capping the number of days they can rent out a listing, part of a set of new rules proposed for a booming short-term rental industry. In Los Angeles, one of the world’s biggest tourist markets, Airbnb alone generates $670 million a year by the company’s count.

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On Peninsula and in South Bay, RVs Have Become Symbol of Homelessness

Anderson-Williams raised her kids in nearby Burlingame, but last year she had a falling out with her landlord and couldn’t find anyone willing to take a Section 8 voucher. So now she lives in an RV. Her adult son, Malik, lives in the one next door, and her two daughters are living with their godparents in Burlingame until they finish school. In San Francisco and Oakland, tents are a symbol of the homeless problem. But in the Peninsula and South Bay, from Palo Alto to Mountain View to Gilroy, RVs have become that symbol.

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Bay Area rent increases leave wage gains in the dust

Wage gains have fallen far behind skyrocketing costs for housing, a gap that’s emerged despite a robust job market in recent years, according to an unsettling report released Monday. The housing-wage gap highlighted by the report from the Silicon Valley Institute for Regional Studies suggests that it is becoming increasingly difficult for residents in the Bay Area to keep up with the cost of owning or renting a home. Over the five years that ended in 2016, wages in the Santa Clara County, San Mateo County and San Francisco areas have risen by an average of 2.8 percent a year. Over the same stretch, the cost of rental housing has jumped by an average of roughly 9 percent annually, the report by the Silicon Valley Institute stated. In aggregate, from 2011 to 2016, the median wage in the three counties rose 14 percent, while the median apartment rent rose by a cumulative 45.2 percent, reported the regional institute, a unit of Joint Venture Silicon Valley.

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Political Road Map: Here’s how aging baby boomers will change the impact of Prop. 13

In a report last month, the analysts noted while 16% of properties statewide were sold in 1977-78, just 5% were sold in 2014-15. Less turnover means tax rates don’t get recalibrated, resulting in less revenue for government services. But the report concluded that’s likely to change, as more than half of California’s homeowners are 55 or older. The homes of baby boomers, as their lives come to an end or when they seek alternatives like assisted living, will end up on the market. The property tax rates for new owners will be set by higher purchase prices. The impact could be substantial. The report pointed out that the typical homeowner over the age of 65 has been in that house for at least 20 years. Many of those are in Southern California.

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Program to Spur Low-Income Housing Is Keeping Cities Segregated

A review of federal data by The New York Times found that in the United States’ biggest metropolitan areas, low-income housing projects that use federal tax credits — the nation’s biggest source of funding for affordable housing — are disproportionately built in majority nonwhite communities. What this means, fair-housing advocates say, is that the government is essentially helping to maintain entrenched racial divides, even though federal law requires government agencies to promote integration.

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Residential Building Codes Do Save Energy: Evidence From Hourly Smart-Meter Data

In 1978, California adopted building codes designed to reduce the energy used for heating and cooling. Using a rich dataset of hourly electricity consumption for 158,112 California houses, we estimate that the average house built just after 1978 uses 13% less electricity for cooling than a similar house built just before 1978. Comparing the estimated savings to the policy’s projected cost, we conclude that the policy comfortably passes a cost-benefit test.   

Research & Studies
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California lawmakers have tried for 50 years to fix the state’s housing crisis. Here’s why they’ve failed

Developers have built more than 500 homes in Foster City since the council approved its housing plan in 2015, a number that already exceeds the new houses called for under the plan through 2023. But all those new homes came from projects approved before 2012 that home builders are just now putting on the market. And the city has turned away other developers interested in building housing where the city’s plan said they could, Perez said. Since early 2015, Foster City’s median home value has increased 13% to a record $1.5 million, more than seven times the national average. Perez believes state politicians should hold cities accountable for approving new housing projects by providing money to local

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What housing crisis? Last-minute bill would let wealthy Marin County limit home building

One of California’s wealthiest counties may continue to get a pass under the state’s affordable housing laws. Lawmakers are considering a measure that would allow parts of Marin County to limit growth more tightly than other regions of California. The provision, inserted last week into a bill connected to the state budget, lets Marin County’s largest cities and unincorporated areas maintain extra restrictions on how many homes developers can build. . . . Since the changes are tied to last week’s passage of the state budget, which Brown has yet to sign, the measure does not have to go through the regular committee process. It’s had just one public hearing and lawmakers could vote on the bill as early as Thursday. . . . Today, the county’s per capita income of $60,236 is the highest of any county in the state, according to U.S. census figures. But the average renter in Marin County makes just $19.21 an hour and would need to work 77 hours a week to afford a studio apartment at the $1,915-a-month market rate, according to data from the National Low Income Housing Coalition.

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Report: LA is the nation’s most unaffordable housing market—and prices will keep rising

Home prices in Los Angeles have never been higher, and rents are increasingly unaffordable for many residents. Sadly, a new report from the UCLA Anderson Schoolf of Management predicts the situation is unlikely to change in the near future. The report finds that three of the six most unaffordable cities for homebuyers nationwide are in Southern California and that Los Angeles is the single most unaffordable city for both renters and buyers. Though the cost of housing is higher in other cities, median income in LA is low enough that more residents will struggle to make monthly rental payments or save to buy a home.

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Think rent is high in California? Here’s why it probably will get higher

Market-rate development has outstripped the supply of affordable units. And “regressive” zoning and environmental regulations, combined with California’s reputation as a tech behemoth are leading to the “hollowing out of the middle class,” Shulman said. “President Trump wants to keep people out by building a wall. California is more sophisticated – it uses zoning and development laws to keep people out, but they have the same effect,” he said.

Slow website
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Oregon May Strip Portland of Its NIMBY Powers

People can’t afford to be poor in Portland, Oregon. Nearly half of the households that rent in the Portland metro area pay too much. Almost one-quarter (24.3 percent) of these households are severely cost burdened, meaning half of their household income goes to keeping a roof over their heads. The median income of Portland metro homeowners is nearly twice that of renters: $81,900 versus $41,600, per a new Harvard report on housing. Oregon has decided to do something to boost affordable housing in the state. A new law before the legislature has opened unexpected fault lines in the already fractured political debate over housing costs. The bill represents something of a mixed blessing for affordability boosters: it’s designed to remove barriers to new construction, but at the cost of local authority.

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Report: Housing construction collapses in San Diego County

Homebuilding was down across Southern California in the first three months of 2017, but nowhere more than San Diego County, said a Real Estate Research Council report released Monday.

Residential building permits were down by 10 percent in the seven-county region compared to the same time last year and 37 percent in San Diego County.

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LA prepares for 600,000 applicants to subsidized housing program; only a fraction will get help

In yet another sign of L.A.’s growing poverty and lack of low-income housing, local officials are preparing for a torrent of applications when they open up the wait list for federal housing aid later this year.

The city stopped taking applications for Section 8 housing over a decade ago because there were too many people already waiting for the limited rental assistance vouchers.

Last time L.A.’s waitlist opened, in 2004, about 300,000 people applied. When the process opens for a two-week window this year, officials are expecting at least twice that number. As a result, only a fraction of people who apply will make the cut.

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