{"id":1432,"date":"2019-09-17T08:30:44","date_gmt":"2019-09-17T15:30:44","guid":{"rendered":"https:\/\/sandiegonewsdesk.com\/?p=1432"},"modified":"2019-09-17T09:34:22","modified_gmt":"2019-09-17T16:34:22","slug":"housing-action-just-half-a-loaf","status":"publish","type":"post","link":"https:\/\/sandiegonewsdesk.com\/?p=1432","title":{"rendered":"Housing Action Just Half-a-Loaf"},"content":{"rendered":"

Written by Dan Walters<\/em><\/p>\n

Gavin Newsom\u2019s first legislative session as governor began with promises to vigorously confront California\u2019s huge and ever-growing housing shortage.<\/p>\n

\u201cIf we want a California for All, we have to build housing for all,\u201d Newsom told legislators in his\u00a0State of the State address<\/a>\u00a0in January, pledging to crack down on cities that don\u2019t meet their quotas of zoning land for new housing and to reduce or eliminate red tape that discourages housing investment.<\/p>\n

\u201cIn recent years, we\u2019ve expedited judicial review on CEQA (the California Environmental Quality Act) for professional sports,\u201d Newsom said. \u201cIt\u2019s time we do the same thing for housing.\u201d<\/p>\n

The session ended last week with\u00a0housing construction in decline<\/a>\u00a0and little or no action to overcome local footdragging and reform CEQA, but with passage of a\u00a0statewide rent control law<\/a>\u00a0that, if anything, will retard housing development even more.<\/p>\n

Newsom had called for \u201cnew rules to stabilize neighborhoods and prevent evictions, without putting small landlords out of business,\u201d and the rent control bill may do that by limiting annual rent increases on units more than 15 years old to inflation plus 5%.<\/p>\n

\u201cThese anti-gouging and eviction protections will help families afford to keep a roof over their heads, and they will provide California with important new tools to combat our state\u2019s broader housing and affordability crisis,\u201d Newsom said in a statement.<\/p>\n

The final, much-tweaked version of the bill divided real estate, development and landlord groups. Large-scale landlords accepted it as a potential antidote to a tougher rent control measure that may appear on the 2020 ballot, similar to one rejected by voters last year. But so-called \u201cmom and pop\u201d rental owners don\u2019t like it.<\/p>\n

Housing developers signed on because newer units are exempt from controls, but the California Association of Realtors remained fiercely opposed, apparently fearing that rent controls would dampen the resale market for rental housing.<\/p>\n

The longer-term impacts of what\u2019s being billed as the nation\u2019s most comprehensive statewide effort to curb rapidly rising rents are uncertain.<\/p>\n

Although the exemption for newer units purports to have a neutral effect on new housing investment, there\u2019s little doubt that once the law takes effect, Newsom and legislators will be under pressure to expand its reach. And that possibility could have a dampening effect on investment.<\/p>\n

Clearly it will make older apartment houses less marketable, and it could discourage their owners from spending money on improvements, particularly if they must borrow to do it. It may encourage more apartment owners to convert them into condos, and even if they retain units as rentals, they almost certainly will treat the inflation-plus-5% cap on rent increases as an annual imperative, regardless of the market.<\/p>\n

While the legislation keeps one Newsom pledge on housing, as construction declines, he and lawmakers are not doing much to reverse the trend.<\/p>\n

A fairly tough bill to overcome local not-in-my-backyard opposition to high-density rental housing was sidelined in the Senate under rather mysterious circumstances, but a weaker version did make it through.<\/p>\n

The survivor,\u00a0Senate Bill 330<\/a>, purports to prevent local governments from taking extraordinary actions to delay or block housing projects, but it\u2019s more a defensive move rather than one to proactively cut red tape or compel cities to accept more construction.<\/p>\n

Bottom line: During his campaign for governor, Newsom set a goal of building 3.5 million new units of housing by 2025. Nothing that occurred in the Capitol this year would even begin to make that happen.<\/p>\n

You can read the original article published in CalMatters<\/em> here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Written by Dan Walters Gavin Newsom\u2019s first legislative session as governor began with promises to vigorously confront California\u2019s huge and ever-growing housing shortage. \u201cIf we want a California for All, we have to build housing for all,\u201d Newsom told legislators in his\u00a0State of the State address\u00a0in January, pledging to crack down on cities that don\u2019t…<\/p>\n","protected":false},"author":3,"featured_media":1434,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,2],"tags":[],"class_list":["post-1432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-politics"],"yoast_head":"\nHousing Action Just Half-a-Loaf - San Diego News Desk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sandiegonewsdesk.com\/?p=1432\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Housing Action Just Half-a-Loaf - 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