California must get serious about housing supply in 2020

Lawmakers who worked to fix California’s housing shortage and affordability crisis learned hard lessons in 2019. Despite much fanfare and commitments, the gap between housing supply and demand actually worsened.

As a new decade dawns, we will soon determine if California has learned the lessons of 2019 or will simply repeat them.

Will the state have the courage to make increasing housing supply a top priority? Will we have the courage to stand up to local governments that vigorously block housing development? Will we do the right thing in the face of overwhelming evidence that the housing shortage and affordability crisis is contributing to homelessness and driving college graduates and working families to leave California?

The deadline to pass bills introduced in 2019 is Jan. 31. On behalf of my organization, the California Association of Realtors, I urge the Legislature to approve the Realtor-sponsored Senate Bill 50 by Sen. Scott Wiener, San Francisco Democrat.

This bill would reform zoning laws to promote higher density development in areas surrounding transit hubs and job centers. It was hotly debated in 2019. That it didn’t pass demonstrated the power of special interests that profess to care about housing yet, when given the opportunity to do something, defended the status quo.

Gov. Gavin Newsom has said he supports the idea behind SB 50 as does Senate President Pro Tem Toni Atkins. A recent UC Berkeley study concluded that SB 50’s reforms could increase

Bay Area housing by 400% and increase affordable housing by 500%.

If we’re truly serious about increasing the supply of housing, SB 50 would be the perfect start.

Its passage would create powerful momentum we could ride the whole year through.

The California Association of Realtors also sponsoring SB 592, also by Sen. Wiener. This bill would allow development of second units on existing properties. To maximize the use of limited land resources and provide relief to communities, we should permit private property owners to modify an existing bedroom or add an additional unit on their land.

A recent state housing report found housing production is stymied throughout California due to high developer fees that vary widely and are often hidden.

Assemblyman Tim Grayson, Concord Democrat, is to be commended for authoring legislation, which was signed by Gov. Jerry Brown, that provides this important data.

Now we must take action. While 2019 did bring some movement in the right direction, Gov. Newsom’s approval of Senate Bill 330 by Sen. Nancy Skinner, Berkeley Democrat, will create certainty in the development application and permitting process for developers building new housing units, more must be done this year.

California’s housing supply and affordability crisis is not a partisan issue. It does not discriminate geographically, ethnically or otherwise. The reality is that inaction hurts everyone. Conversely, if we have the political courage to demand that state and local governments take action by working together, each doing its part to increase the supply of well-planned housing, then our entire state will be better for it.

In 2020, the California Association of Realtors and its 200,000 members stand ready to help. We will engage legislators in Sacramento and local governments throughout California. Whether it be through the legislative, regulatory or legal process, our members stand ready to support the governor’s call for more housing. It starts this January and will continue throughout the year.

Let’s be bold and seize the opportunity to make 2020 the year we took action to increase the supply of housing.