Gov. Brown proposes fast-track for affordable housing

In the May revision to the 2016-17 state budget, Gov. Jerry Brown addressed California’s severe housing shortage by suggesting legislation to expedite the permitting process for developers who include affordable homes in their projects.

The plan includes a “build by right” proposal that would create a voluntary permit streamlining approval process for developers to use. The proposal would exempt developments already zoned and approved for housing from detailed local government reviews when 5 to 20 percent of the newly constructed units are set aside for low-income residents. Developers of urban, multi-family housing would need to include 20 percent affordable units in any development in order to qualify for fast-tracking, and that number goes down to 10 percent if the development is close to transit.

This process would be a radical departure from the current policy of many cities, where new housing projects are subject to extensive review and can take years to approve.

The plan has come under fire from environmental organizations who say the California Environmental Quality Act requires developers to study a broad range of environmental effects and pay to lessen any negative effects. Brown’s plan would allow developers that qualify to avoid that law.

In a review of the plan, California’s Legislative Analyst’s Office said, in effect, that the proposal addresses “not-in-my-backyard” opposition to development.

“For decades, California’s local communities - particularly coastal communities -have built too little housing to accommodate all those who wish to live here. Many local communities have used their authority in ways that have constrained housing development. These community decisions understandably reflect residents’ concerns about the changes that new housing may bring. New housing - and the associated new residents - can exacerbate traffic congestion and parking shortages, stretch local facilities, slow home price appreciation, and alter the community’s character.”

The report also said, however, that requiring developers to set aside 20 percent of housing for low-income households may prevent many developers from taking advantage of the proposed streamlined approval.

“This could substantially limit how much new housing the governor’s proposal will produce.”

The California Association of Realtors applauded the voluntary permitting process.

“With a historically low homeownership rate of 54 percent and record high rents, the dream of owning a home in California has become increasingly more difficult to attain,” said C.A.R. President Pat Zicarelli. “C.A.R. recognizes the urgency of California’s housing crisis and fully supports Gov. Brown’s efforts to reduce development costs and improve the pace of housing production. We encourage the Legislature to include this proposal in its final state budget.”