California Democrats have new plan to battle housing crisis — by encouraging duplexes

Amid a coronavirus pandemic that’s shuttered the economy, California Senate Democrats announced on Wednesday a plan they said would recommit the state to solving another crisis: housing production.

The plan unveiled with support from Senate President Pro Tem Toni Atkins, D-San Diego, aims to boost housing supply and reduce red tape on development.

It includes bills that would encourage construction of duplexes, offer building incentives and allow housing units in under-used office parks, among other proposals.

“At the start of the year, my colleagues and I committed to developing a comprehensive, successful approach to housing production,” Atkins asid in a written statement. “We remain dedicated to that goal, but due to COVID-19 and the economic fallout that has accompanied it, we must pivot our approach.”

A coalition of nine Democratic senators behind the framework represent a wide swath of California, from the Bay Area to the Central Valley.

The group also includes a handful of Los Angeles Democrats who helped sink Senate Bill 50, the high-profile legislation that would have spurred new construction through zoning reform, but failed on the Senate floor in January.

SB 50’s failure, said state Sen. Scott Wiener, the San Francisco Democrat who wrote the bill, sparked a “long-overdue, intense conversation” within the caucus, which led to Wednesday’s announcement.

“What (Atkins) wanted was for whatever to come out of this working group to have broad-based buy in,” Wiener said. “I periodically swing for the rafters because I want to get it done. But sometimes you have to take a solid step and a solid step until you get there.”

Here’s the plan:

Local control over environmental review

Wiener’s Senate Bill 902 would allow local governments to skip the stringent, and often expensive, environmental review process for projects up to 10 units.

The buildings have to be located areas close to jobs and transportation.

Wiener, chairman of the Senate Housing Committee, said this proposal would help chip away at the state’s housing shortage, while avoiding construction “sprawl” that lead to supercommutes.

“Step by step, we are enabling more housing to be built in the areas where we should have more housing because it’s too expensive and people are being pushed out,” Wiener said.

More duplexes

Cities would be encouraged to streamline duplex construction in smaller neighborhoods under Atkins’ Senate Bill 1120.

Homeowners would have to qualify for the process. The bill would also allow them to divide their lots, which could allow them to build two duplexes, or four units total.

More construction, new jobs

Another one of Atkins’ proposals is Senate Bill 995, which would streamline the environmental review process for smaller housing projects that promise to designate at least 15 percent of units as affordable.

The bill would also expand cities’ ability to speed up housing approvals through “upfront planning,” Atkins said, and add new construction that inspire additional jobs.

“This package of legislation would make more housing production possible generating high-wage jobs for skilled construction workers, even while we continue to work through the new realities and uncertain times caused by the pandemic and economic downturn,” Atkins said. “And it positions California to leap forward exponentially on affordable housing as times get better.”

Affordable housing incentives

The fourth proposal would offer builders additional incentives to building affordable projects.

Cities and counties would be able to grant a density bonus if developers agree to allocate a number of units for a project as affordable and below 30 percent of the market rate.

State Sen. Nancy Skinner, D-Berkeley, said her measure would free up “very affordable” and “moderately priced” units for California’s “missing middle,” including first responders and teachers.

Using abandoned office space

If a building has sat vacant for at least three years on a lot zoned for office and retail space, the fifth production bill would allow cities to use that space for new homes.

The bill, written by Sen. Anna Caballero, D-Salinas, would also “unlock” existing, but empty, retail and office lots to increase housing supply.

Rent relief

Senate Democrats announced earlier this month a rent stabilization plan to use state funds to purchase outstanding rents from tenants economically disadvantaged by COVID-19.

The renters would then have 10 years beginning in 2024 to pay back the debt, interest free. Landlords would then receive a tax credit during the same time period to cover financial losses, depending on their commitment not to evict renters. They could also sell their credits.

This story was originally published May 20, 2020 at 4:08 PM with the headline "California Democrats have new plan to battle housing crisis — by encouraging duplexes."