Newsom signs 'the most consequential housing reform in modern history'
How Newsom overhauled housing reform in California
Gov. Gavin Newsom signed two bills which he said are the "most consequential housing reform in modern history."
BERKELEY, Calif. - Gov. Gavin Newsom has signed two housing bills into law, aimed at making it easier and faster to build new housing.
These new laws are going to help break down one of the biggest barriers to building new housing: the California Environmental Quality Act or CEQA.
When CEQA passed in 1970, it was meant to set standards to protect the environment, but over the years it has been abused and used to stop new housing from being built, especially affordable housing.
"It’s incredibly powerful for anyone who’s looking for a side deal from the developer. Maybe they want special concessions for hiring unionized workers, or money to be paid to a community group. Or who knows what other crazy ideas they might have or things they might want," said Chris Elmendorf, a law professor at UC Davis who teaches housing policy. "Because anybody could push that delay switch, and cost the developer hundreds of thousands or millions of dollars by pushing that delay switch, they have incredible leverage."
The first bill, AB 130, introduced by Assemblymember Buffy Wicks (D-Oakland), exempts most urban housing projects from environmental review. It also only requires buildings taller than 85 feet and low-income buildings to pay union-level wages for construction workers.
The second bill, SB 131 by Sen. Scott Wiener (D-San Francisco), waives the environmental restrictions for other buildings too – like health clinics, child care, food banks and more.
Newsom essentially forced these two bills through – saying his signature on the budget would be void if they didn’t pass.
Newsom called this change "the most consequential housing reform in modern history."
Elmendorf agreed, saying he was "astounded" lawmakers were able to pass these bills. He called Newsom's move to attach the bills to the budget an "example of true leadership."
He expects developers are going to be more willing to build and projects will be less expensive.
The hope is that this eventually makes Bay Area housing more affordable.
"That’s the reason why old homes in the Bay Area are so expensive. We’re not building new ones, we’re not building ones that people with that income tier would otherwise be living in, so they’re bidding down. They’re pushing people off of the chair in a really long game of musical chairs. "So by adding more chairs to that game, we’re hoping the pushing will end," said Louis Mirante, senior vice president of Public Policy for the Bay Area Council, a group that co-sponsored one of the bills.