Housing Crisis Act

Housing Crisis Act
Name	Housing Crisis Act
Enacted by	California State Legislature
Signed by	Gavin Newsom
Date signed	2019
Status	active

Housing Crisis Act

The Housing Crisis Act is a statute enacted to expedite residential development, alter land-use controls, and limit local regulatory obstacles in response to shortages identified by California Department of Housing and Community Development, National Low Income Housing Coalition, and housing advocates. The act interfaces with state planning frameworks such as Senate Bill 35 (2017), Regional Housing Needs Assessment, California Environmental Quality Act, and municipal zoning ordinances. Proponents cited analyses from Terner Center for Housing Innovation, Urban Land Institute, and McKinsey & Company on supply constraints; opponents referenced case law including California Supreme Court decisions and litigation by groups like Howard Jarvis Taxpayers Association.

Background

Legislative impetus followed demographic studies from U.S. Census Bureau and affordability reports by Joint Center for Housing Studies of Harvard University, with high vacancy rates and rent burden research from Pew Research Center and California Budget & Policy Center. Political context included statewide initiatives such as Proposition 13 (1978), fiscal pressures post-Great Recession, and regional planning debates involving entities like the Association of Bay Area Governments and Southern California Association of Governments. Advocacy and opposition drew in stakeholders including California Realtors Association, California Housing Partnership Corporation, Non-Profit Housing Association of Northern California, and environmental groups such as Sierra Club.

Legislative History

Drafting occurred amid lobbying by developers represented by California Building Industry Association and tenant organizations including Tenants Together and Coalition for Economic Survival. Committees involved included the California State Assembly Committee on Housing and Community Development and California State Senate Committee on Governance and Finance. Amendments referenced precedent statutes like Costa-Hawkins Rental Housing Act and proposals from legislators such as Scott Wiener and Toni Atkins. The bill’s passage incorporated hearings with testimony from researchers at Public Policy Institute of California, legal analyses from University of California, Berkeley School of Law, and fiscal notes by California Legislative Analyst's Office.

Key Provisions

The act contains provisions affecting zoning, permitting, and environmental review. It establishes criteria for streamlining projects similar to Transit-Oriented Development incentives and modifies permit processing timelines akin to provisions in Senate Bill 9 (2021). It sets thresholds for prevailing wage and affordable housing set-asides informed by guidelines from U.S. Department of Housing and Urban Development and California Department of Housing and Community Development. Exemptions and ministerial review procedures parallel mechanisms used in California Environmental Quality Act reform efforts; enforcement relies on remedies seen in cases litigated in United States District Court for the Northern District of California.

Implementation and Enforcement

Implementation required coordination between state agencies such as California Department of Housing and Community Development and local entities including county planning departments and city councils like Los Angeles City Council and San Francisco Board of Supervisors. Compliance monitoring drew on data systems used by California Housing Data Dashboard and reporting guidelines similar to those of U.S. Department of Housing and Urban Development. Enforcement actions involved administrative remedies, judicial review in California Superior Court and appellate litigation reaching the California Court of Appeal, with involvement from nonprofit litigants such as Public Advocates and civil rights organizations like ACLU of Northern California.

Impact and Outcomes

Analyses by Terner Center for Housing Innovation, Urban Institute, and RAND Corporation tracked changes in housing starts, permitting velocity, and affordability metrics. Outcomes included increased applications for multi-unit projects in jurisdictions like San Diego, Oakland, and Sacramento, and contentious redevelopment proposals in Bay Area Rapid Transit corridors. Fiscal impacts were assessed by California Legislative Analyst's Office and local treasurers such as Los Angeles County Treasurer and Tax Collector. Social outcomes prompted studies from California Health Care Foundation and Public Policy Institute of California on displacement, homelessness measured by U.S. Department of Housing and Urban Development point-in-time counts, and neighborhood change documented by American Planning Association.

Criticism and Controversy

Critics included municipal associations like the League of California Cities, homeowners’ groups such as Howard Jarvis Taxpayers Association, and environmental justice advocates referencing precedents from NIMBY conflicts and litigation influenced by California Supreme Court rulings. Objections centered on impacts to historic preservation protected by National Register of Historic Places, infrastructure strain near Metropolitan Transportation Commission corridors, and concerns voiced in briefs by Natural Resources Defense Council and Greenbelt Alliance. Legal challenges cited constitutional issues examined by scholars at Stanford Law School and cases in federal courts including Ninth Circuit Court of Appeals.

Comparative and International Perspectives

Comparisons were drawn to land-use reforms in Germany, Japan, and United Kingdom models studied by OECD and World Bank. Researchers compared streamlined permitting similar to practices in Singapore and housing supply interventions analyzed in reports by International Monetary Fund and European Commission. Municipal responses mirrored measures in Vancouver and Melbourne (Australia), with scholarship from Lincoln Institute of Land Policy and Brookings Institution informing cross-jurisdictional lessons.

Category:California statutes Category:Housing in California