This week in affordable housing news the Los Angeles Times Editorial Board weighed in on the high impact of local “impact fees” imposed on housing development—highlighting a package of eight bills introduced this week by Assembly Democrats seeking to address the issue. “The cost of building new housing in California is too damn high,” says the LAT. “And one reason is all the pricey development fees layered on new apartments, single-family homes and even affordable housing projects.” The LAT acknowledges these fees are intended to help local governments pay for services provided to new residents—“but all those fees add up,” says the editorial, noting that in some cities fees amount to 18% of the cost of building a median-priced home. Bills by Assemblymember Tim Grayson (D-Concord) would cap fees at 12% of local median home prices and require the state to reimburse cities that waive impact fees on affordable housing.

Housing fees also made the news this week in advance of next Tuesday’s primary election, with CalMatters taking a close look at some noteworthy fee provisions in the only statewide initiative on the ballot: the $15 billion school bond known as Proposition 13 (no, not that Prop 13). In addition to raising money for school construction, the measure also proposes to significantly reduce the amount of school impact fees paid by multi-family housing developments. If passed, Proposition 13 would waive school fees for multi-family housing within one-half mile of transit and reduce fees by 20% for all other multi-family housing—with both provisions expiring on January 1, 2026. “We need to watch what fiscal impact this has on school districts across the state,” Assemblyman Patrick O’Donnell, author of the bond, told CalMatters. “If it’s significantly impactful we may have to backfill the fees that the districts will lose because of this policy.”

Finally, with affordable housing and homelessness topping Governor Newsom’s agenda, the Sacramento Bee reports on the ongoing staffing shortfalls at the state Department of Housing and Community Development. This important state agency, responsible for administering most of the state money allocated to affordable housing—including $2 billion raised by Proposition 2 in 2018—currently has “about 21% of its positions unfilled,” according to the Bee. That includes the director’s position, as well as a deputy director position responsible for overseeing grants and loans. “If we don’t fill these positions, there will be big backlogs,” says deputy director of administration Russell Fong. “We’ve got to ramp up quickly.” Newsom spokesperson Jesse Melgar told the Bee: “Since taking office, the Newsom Administration has been urgently focused on addressing California’s housing and homelessness crisis. He intends to appoint a director…in the near future and that appointee will be empowered to build their team to best execute the Governor’s housing agenda.”

STATE HOUSING POLICIES

High fees that boost California housing costs targeted by Assembly Democrats
San Francisco Chronicle
Home builders have lobbied for years to cut the fees that local governments can charge them to offset the effects their projects have on roads, police and other public services, arguing that the additional costs make construction prohibitively expensive in California. A legislative package unveiled Monday by five Assembly Democrats proposes to cap those fees and waive them altogether for some projects, in hopes of providing a jolt to the state’s stagnating construction rates and easing the housing shortage.

The developer bonus tucked into the school bond on your ballot
CalMatters
California voters are being asked to approve a controversial measure making it easier for developers to build apartment buildings within a half-mile of public transit. Most will think they’re only voting on whether the state should borrow more money to fix broken air conditioners in schools. 

Legislators introduce $2B measure to address homelessness
Politico California Pro

A group of Assembly members today introduced a bill that would inject $2 billion into addressing California’s homelessness crisis — an immediate effort to meet the governor’s request for permanent funding to tackle the problem. Under Assembly Bill 3300, the funding would be appropriated to cities, counties, regional associations called Continuum of Care and affordable housing developers. The money would speed up help finding affordable housing, paying for rent and getting connected to the services they need.

Newsom makes big political wager
CalMatters
Gavin Newsom is rushing in where angels — and more cautious politicians — fear to tread by devoting virtually all of his second State of the State address to California’s seemingly intractable housing and homelessness crises. Newsom is staking his governorship, and perhaps his hopes of climbing further up the political pecking order, on jump-starting housing construction and moving tens of thousands of men, women and children off the streets.

Editorial: California housing prices are too damn high. Cities can help change that if they want to
Los Angeles Times
The cost of building new housing in California is too damn high. And one reason is all the pricey development fees layered on new apartments, single-family homes and even affordable housing projects. Cities throughout the state collect an assortment of fees from builders to raise money for such things as parks, schools, public art, affordable housing, transportation, environmental protection, fire and police service and city facilities such as libraries and sewer systems. 

HOUSING CRISIS

Farmworkers struggle with high cost of housing
CalMatters
When Resi Salvador’s three little brothers walk through the door, they make a beeline for her, seated at a folding chair at her parents’ kitchen table. They snuggle into her arms. Resi laughs. She’s home. Just a few feet away in the living room stands a bunkbed, where Resi sleeps when she’s home. All told, nine people reside in the Salvadors’ Salinas two-bedroom apartment.

LOCAL HOUSING INITIATIVES

San Francisco’s new eviction-prevention program is working, but is it enough?
San Francisco Chronicle
In the midst of a punishing housing crisis and deepening concerns about displacement, a program to give free legal advice to those facing eviction helped nearly 730 people stay in their homes in a six-month span last year. A new report released Monday from the Mayor’s Office of Housing and Community Development looked at how San Francisco’s voter-approved tenant right-to-counsel program has been working.

HOMELESSNESS

Homelessness tops Gavin Newsom’s agenda. So why is his housing department understaffed?
Sacramento Bee
Gov. Gavin Newsom’s ambitious plans to build houses and reduce homelessness in California depend on a state department that is understaffed, lacking permanent leaders and struggling to adjust to change, according to documents and interviews. The Department of Housing and Community Development, which administers most of the state money for housing, has one of the highest vacancy rates among large state departments, with about 21 percent of its positions unfilled, according to figures provided by the department and the State Controller’s Office.

Newsom is promising a database to track homeless people statewide. It won’t be that easy
Los Angeles Times
“Because you can’t manage what you don’t measure,” Gov. Gavin Newsom said in his State of the State address last week that California “will establish a unified homelessness data system to capture accurate, local information.” He made it sound so simple and matter-of-fact. But for those homeless advocates who have long struggled to compile such data, Newsom was evoking a quest like that for the Holy Grail — a prize that is difficult to reach, but which everyone wants.

California getting tough on homeless?
CalMatters
Gov. Gavin Newsom devoted most of his State of the State address this month to California’s ever-growing crisis of homelessness, outlining a broad new approach and pledging that he will make it work. “I don’t think homelessness can be solved,” he concluded, “I know homelessness can be solved. This is our cause. This is our calling.”

Editorial: Newsom’s focus on homelessness needs more focus, not just more money
San Diego Union Tribune
Gov. Gavin Newsom’s decision to focus on homelessness in his State of the State speech is a welcome recognition of how bad the problem has become across California, and one of his proposals — limiting state environmental reviews of new shelters and supportive housing — is a smart idea. Yet there is reason to fear that the governor’s faith in Sacramento — “I don’t think homelessness can be solved,” he declared. “I know homelessness can be solved” — will mean throwing money at a problem.