Housing supply

Governor Newsom Signs Landmark Legislation to Boost California Housing Supply and Tackle Housing Crisis

Governor Newsom’s plan to return to California will lead to more than 84,000 new homes and an end to homelessness, including today’s announcement of $1.75 billion in housing funding affordable for new california housing accelerator

SB 8 extends Housing Crisis Act of 2019 to further boost housing production

SB 9 gives landlords additional tools to add critically needed new homes and help ease California’s housing shortage

SB 10 establishes a voluntary, streamlined process for cities to zone for multi-unit housing – making housing construction easier and faster

SACRAMENTO — Governor Gavin Newsom today signed bipartisan legislation to expand California housing production, streamline housing permits and increase density to create more inclusive and vibrant neighborhoods across the state. The series of bills will also help address the interrelated issues of climate change and housing affordability by promoting denser housing closer to major employment hubs – a key element in limiting greenhouse gas emissions. California greenhouse. The governor also highlighted the state’s ongoing work to further stimulate housing production, address barriers to construction and hold local governments to account.

“The housing affordability crisis is undermining the California dream for families across the state and threatening our long-term growth and prosperity,” Governor Newsom said. “Making a meaningful impact on this crisis will take bold investments, strong collaboration across sectors, and the political courage of our leaders and communities to do the right thing and build homes for all. I thank Pro Tem Atkins and all Legislative Housing Leaders for their vision and partnership in moving California forward on this fundamental issue.

Today, California officials announced the new California Housing Accelerator – a $1.75 billion component of Governor Newsom’s California comeback plan to accelerate the construction of approximately 6,500 affordable multifamily units ready for development. employment in projects blocked due to constraints on offering tax-exempt bonds and low-income housing tax credits.

The California Comeback Plan is investing an unprecedented $22 billion in housing and homelessness, which will lead to the creation of more than 84,000 new affordable homes for Californians, including more than 44,000 new homes and beds. treatment for people coming out of homelessness. This plan marks the largest housing investment in California history with $10.3 billion proposed for housing and more than $12 billion for those without homes.

The Governor today signed California State Senate Chairman Pro Tempore Toni G. Atkins’ SB 9, the California Housing Opportunity and More Efficiency (HOME) Act, which the White House recommended this month to increase the supply of housing. The HOME Act makes the process easier for homeowners to build a duplex or split their current residential lot, expanding housing options for people of all incomes, which will create more opportunities for homeowners to add units on their existing properties. It includes provisions to prevent the displacement of existing tenants and to protect historic neighborhoods, fire-prone areas and environmental quality.

“I appreciate Governor Newsom’s continued commitment to solving one of the toughest issues facing our state – increasing housing and expanding access for more Californians,” said Senator Pro Tem Atkins. (D-San Diego). “SB 9 will open up opportunities for landlords to help ease the housing shortage in our state, while protecting tenants from displacement. And it will help our communities welcome new families to the neighborhood and get more people on the path to buying their first home. I am grateful for the Governor’s partnership and our shared resolve to turn the corner on California’s housing crisis. »

SB 10 by Sen. Scott Wiener (D-San Francisco) creates a voluntary process for local governments to access a streamlined zoning process for new multi-unit housing near public transit or in urban infill areas, with up to 10 units per plot. The legislation simplifies CEQA requirements for zoning, giving local leaders another tool to voluntarily increase density and provide affordable rental opportunities to more Californians.

“California’s severe housing shortage is seriously hurting our state, and we need many approaches to address it,” said Senator Wiener. “SB 10 provides an important approach: making it significantly easier and faster for cities to zone in for more housing. It shouldn’t take five or 10 years for cities to re-zone, and SB 10 gives cities a powerful new tool to get the job done quickly. I want to thank the Governor for signing this critical bill and continuing to lead on housing.

A signing post for SB 10 can be found here.

The governor also signed SB 8 by Sen. Nancy Skinner (D-Berkeley), which extends provisions of the Housing Crisis Act from 2019 to 2030. The Housing Crisis Act of 2019, which was set to expire in 2025, speeds up the approval process for housing projects, limits the ability of local governments to reduce areas, and limits fee increases on housing applications, among other key accountability provisions.

“California needs more housing, and we need it now,” said Senator Skinner. “Thank you, Governor Newsom, for signing these bills into law that will allow landlords and our communities to add much-needed and affordable housing efficiently and quickly. Housing close to jobs, schools and services helps our housing shortage and is critical to meeting California’s greenhouse gas reduction goals.

“For too long, California has kicked the streets when it comes to building more housing,” said San Francisco Mayor London Breed. “The housing crisis is at the center of our state’s greatest challenges – our children and our most vulnerable bearing the brunt of exorbitant costs and a severe housing shortage. Fortunately, Governor Newsom and our legislative leaders are taking bold steps to address this shortage with smart, targeted housing packaging that will allow our communities to grow with inclusion and expand the dream of home ownership. ownership and housing stability to California residents.

“Senate Bills 8, 9 and 10 will give California and its cities new tools to build homes that improve communities and expand opportunities for working families,” said the mayor of San Diego, Todd Gloria. “Together, they will increase housing options for middle and working class Californians while slowing the rate of rent increases as supply increases. I am grateful to Governor Newsom and our legislative leaders for their unwavering commitment. to fight against the crisis of accessibility to state housing.

Governor Newsom also signed AB 1174, by Assemblyman Tim Grayson (D-Concord), an emergency measure that makes changes to the existing streamlined ministerial approval process for housing development in jurisdictions that have not yet made sufficient progress in allocating their regional housing. Needs.

“Most Californians cannot afford a typical single-family home, and our state’s desperately limited housing stock has a lot to do with that,” said California Building Industry Association President and CEO Dan Dunmoyer. “This suite of bills will ease some of the barriers to building homes and help combat the already record high cost of housing in our state. I am grateful to Governor Newsom and legislative leaders for their courage in enacting policies that support the construction of low- and middle-income housing with the goal of providing accessible and safe housing for all.

Another pillar of Governor Newsom’s housing agenda is housing responsibility for local governments. Governor Newsom this week hailed the Attorney General’s recent success in defending the validity of California’s Housing Liability Act (the “Anti-NIMBY Act”) against challenge in the California Renters Legal Advocacy case. and Education Fund c. City of San Mateo. Last year, the governor asked the attorney general to intervene in the case to defend this essential tool to hold local governments accountable to do their part to increase housing supply. The resulting Court of Appeal ruling limits the ability of local governments to block new housing that is supposed to be allowed under their own existing rules and general plan.

In his first month in office, Governor Newsom approved a first-of-its-kind lawsuit against a city for obstructing the production of affordable housing and refusing to meet regional housing needs. In his 2019 State of the State address, the governor called for an expedited review of CEQA to include housing, such as under legislation he signed earlier this year to allow small projects to housing to qualify for rationalization.

Since taking office, the governor has signed major legislation to boost housing production and remove barriers to building secondary suites, and signed 16 CEQA reform bills to streamline state laws to maximize housing production. The 2019-2020 state budget made a historic $1.75 billion investment in new housing and created major incentives for cities to approve the construction of new homes. Within the first weeks of his administration, Governor Newsom signed an executive order that created an inventory of all surplus land in the state, and the administration launched partnerships with California cities to develop affordable housing on those lands. lands.