Having checked gas taxes and cap-and-trade off their 2017 agenda, California political leaders will turn to the state’s housing crisis after a month-long midsummer vacation.
It’s high time, because California is building barely enough new housing to handle current population growth and making no dent in a years-long backlog.
Between 2003 and 2014, California built just 47 percent of what it needed, according to state housing officials, with construction dipping at one point during the Great Recession to a sixth of pre-recession levels. Although the economy has fully recovered, homebuilding has increased to just half of its pre-recession high.
The shortage has sent home prices and rents soaring, particularly in coastal urban areas, thus forcing many working families to spend half or more of their incomes for shelter – if they can find it. The crisis not only exacts a human toll but is an existential threat to the state’s economy.
Housing authorities bluntly say that the core issue isn’t a lack of potential housing development investment but rather the reluctance of local governments to approve new projects, particularly high-density complexes for low- and moderate-income renters, because of “not in my backyard” resistance among homeowners and voters.
When the Legislature reconvenes in August, it will face dozens of bills that purport to relieve the housing crisis, but four major approaches:
—Senate Bill 2, which would impose a $75 per document fee on real estate transactions, with a $225 ceiling, and raise about $250 million a year for low- and moderate-income housing;
—Senate Bill 3, which would place a $3 billion housing bond issue on the 2018 ballot;
—Senate Bill 35, or some variation, which would force cities to meet their state-imposed housing quotas by diluting, or eliminating, local land use powers; and