Sacramento’s Legislators Are So Wrong on Housing

Graph from California Legislature’s report “Recent Legislative Actions to Increase Housing Production in California”

As has become usual over the past several years, the California legislature is considering a number of bills that would override local planning control and weaken environmental review for new development projects. Two of the most controversial bills are SB 79 and SB 607. SB 79, from State Senator Scott Wiener, would remove local zoning restrictions for housing projects proposed on sites near transit. SB 607, also from Senator Wiener, along with principal co-author Assembly Member Buffy Wicks, would essentially gut the California Environmental Quality Act (CEQA), giving local agencies broad latitude in deciding what level of environmental review was needed for a project, if any. (On May 19, both bills were placed in the Senate Appropriations Committee suspense file, which generally means a bill is on hold, but both are scheduled to be heard again by the Committee today, May 23.)

You probably won’t be surprised to hear that, while these bills have a long list of supporters, they’ve also generated major pushback from both individuals and established organizations. SB 79 is opposed by Public Counsel, the Public Interest Law Project, the Western Center on Law & Poverty, and numerous California cities. SB 607 is opposed by a number of environmental groups, including the Center for Biological Diversity, Sierra Club California and Friends of the LA River. (Full disclosure: I work with a group that has sent letters opposing both bills, United Neighborhoods for Los Angeles.)

This has turned into a routine. Every new session, state legislators present a number of bills designed to allow developers to build bigger and faster, with little or no environmental review. The legislators claim it’s the only way to solve the housing crisis. What’s unusual about this year is that Governor Gavin Newsom has upped the ante. As the efforts of citizens and organizations opposed to these bills seem to be having an impact on legislators, Newsom has come forward to say that he’s going to use the budget process to achieve the goal of speeding up new development. Like Wiener, Wicks and many others, Newsom sees the housing affordability crisis purely as a matter of supply and demand. They believe that housing prices will go down if they erase local planning authority and let developers build with little or no environmental review. It’s the classic supply-side economics argument. Unleash the free market, and it will solve your problems.

Unfortunately, the legislature has been unleashing the free market for years now, and it doesn’t seem to working. Take a look at the graph above. This is taken from a report produced by the State Senate and State Assembly Housing Committees. The report is titled….

Recent Legislative Actions to Increase Housing Production in California

With the sub-heading….

California’s Housing Crisis: More Construction Is Needed to Meet the State’s Housing Needs

The paper was produced by the State Senate and Assembly Housing Committees. It argues that California has failed to produce enough housing for decades, and that lawmakers in Sacramento have been reversing this trend with the many bills that have been passed in recent years. They cite reforms to density bonus law, reforms to the Surplus Lands Act, faster approval timelines, and increases in “by-right” approvals. (When a project is approved “by-right”, it means an application is approved automatically, with no public hearings and no environmental review.) The text emphasizes large increases in the percentage of Low-Income and Very Low-Income units completed, and says there’s been a 61.5% overall increase in affordable housing production. That’s great, but the report doesn’t give numbers for rent-stabilized units lost during the same period, or the number of affordable units that converted to market-rate when their covenant expired, which means we don’t know if there’s really been a net gain.

And in spite of the report’s claims about increased housing production, the graph seems to show the opposite. By my count, the report lists 98 bills that were intended to spur housing growth over the last two decades. Things really kicked into high gear in 2017, when Sacramento passed 15 pieces of legislation related to housing. Looking at the lists compiled in the report, it appears that from 2017 through 2024 the Legislature approved a startling 87 bills to jump start housing. Based on the number of bills, if you accept the arguments that Wiener and friends are making, you’d expect housing production to go through the roof. But if we look at the chart above, you can see that the number of units permitted since 2017 is well below the number permitted during the first decade of this century. While it looks like there’s been a slight increase in multi-family units produced over that period, there’s been a huge drop in the number of single-family homes produced. The numbers look even worse if we go back to the 80s. The quantities of both multi-family and single-family homes produced in that decade are far higher than the quantities produced since 2017.

Which brings us to the question, What has this onslaught of legislation actually accomplished? Wiener and his pals have spent years pushing bills to override local zoning restrictions, and they’ve also been busy hacking away at the California Environmental Quality Act (CEQA). They argue that loosening local zoning and sidelining CEQA will spur new housing growth. But look at the numbers. Wiener and friends started their assault on local zoning and CEQA back in 2017. While the text of the report seems to be telling us that their campaign has been a resounding success, the graph the authors lead off with tells a different story. Housing production since 2017 is well below what it was in the 2000s, and it’s WAY below what it was in the 1980s. And it’s important to point out that in both of these earlier periods, local zoning was more restrictive than it is now, and CEQA was in full force. No doubt some will argue that the pandemic held down new construction, but California’s own housing dashboard shows that the number of permits issued actually increased during the crisis. (See slide 8 on the housing data dashboard.)


Newsom, Wiener, Wicks and their cohorts keep telling us that local zoning and environmental review are two of the biggest roadblocks to new housing. But given the numbers that we see in the Legislature’s own report, it seems these folks have no idea what they’re talking about. The graph they lead off with tells the story. California was producing more new housing before the Legislature began its attack on local zoning and environmental review.

Thoughts on LA, Fires and the Future

Map of current fires in LA area from Cal Fire, as of January 12, 2025

If you’re looking for updates on the fires in LA, this post won’t offer anything you haven’t heard already. The LA Times, Daily News, and local news stations have been doing an excellent job reporting on the situation. I’m writing this post because I want to talk about what comes next. While the fires are still burning, and may continue to burn through next week, we do need to start talking about the future of LA. And I think the best way to start talking about the future is to begin with the past….

The City of LA was built on real estate speculation. To some degree, this is true of most cities, but it’s especially true of Los Angeles. Writers have commented on the fact that this area lacks a number of the things that are generally the basis for large scale development, most fundamentally a reliable source of water. Nor did the City of LA initially have a port, and only gained one by annexing San Pedro in 1909. That area is only tenuously connected to the rest of the city by a narrow, 20-mile corridor that’s basically just a rail line.

LA did have oil. Drilling began in the 19th century, and in the early 20th century large sections of the city, including Downtown, were covered with oil wells. But real estate investors saw huge amounts of money to be made by residential and commercial development, and gradually most oil wells were either shut down or hidden. (The majority of wells that are still visible are located in the southern part of LA, and the low-income communities that are impacted don’t have the political clout to shut them down.) The real estate investors promoted Los Angeles aggressively, putting ads in newspapers nationwide, essentially selling the climate. LA had lots of sun and little rain. People came, but the investors knew that to sustain new development they’d need to bring more water to the area. The LA Aqueduct was completed in 1913, after business interests used dishonest means to buy up the rights to the Owens Valley’s water resources. As the city continued to grow, LA snagged more water from the Colorado River with the construction of Hoover Dam during the Depression. Then came the construction of the California State Water Project, which extended from the 50s through the 70s. The bottom line is, the City of LA is only able to support a population of almost four million people because it imports about 90% of its water from areas that are hundreds of miles away.

I’m talking about the way LA was built because I think it’s important to understand the city’s history in talking about the fires that have devastated LA’s communities. Real estate investors built LA because there were fortunes to be made. In the first past of the 20th century, the only efforts at planning were driven by investors looking for profit. In the second half of the 20th century, there was more of an effort to plan for growth, but efforts at responsible planning were often overridden by the same investors looking for more profits. In the 21st century, there’s a lot of talk about planning at City Hall, but really most of it boils down to upzoning large swaths of the city to promote more growth. Planning in the City of LA is still largely driven by investors and their lobbyists. If you don’t believe me, please read up on the recent convictions of former Councilmember Jose Huizar, former Deputy Mayor Ray Chan and others who were caught up in a massive scandal involving bribery, fraud and racketeering. And if you think those convicted were the only ones involved, it’s important to remember that projects backed by Huizar were almost without exception unanimously approved by the LA City Council.

Image from Cal Fire Update, January 11, 2025

The point here is that development in LA is not driven by responsible planning. Development in LA is driven by money. If you want to know why projects were approved and are still being approved in fire-prone areas, follow the money. While there have been individuals who chose to build their own homes in areas where fire risk is high, most of the residential development in these areas is the result of the creation of suburban subdivisions. Even when citizens expressed concern about fire risks in these areas, they were almost always ignored by the politicians, who had often received campaign contributions from the developers. The Porter Ranch area has been repeatedly threatened by fires, but that didn’t stop the City of LA from approving The Vineyards at Porter Ranch, a recent multi-phase mixed-use project that includes apartments, a hotel and a large retail component. The project location has been designated by the LA Fire Department as a Very High Fire Hazard Severity Zone (VHFHSZ). Another example is LA City Planning Director Vince Bertoni’s approval of the initiation of a General Plan Amendment (GPA) to make way for the Bulgari Hotel, a massive luxury hotel project that was to be located in another VHFHSZ in the Santa Monica Mountains. The request for the GPA was submitted by developer representative Stacey Brenner, whose husband served as a deputy to former Councilmember Paul Koretz. The project was in Koretz’ district. The Bulgari Hotel was only stopped because area residents put intense pressure on Koretz’ successor, Councilmember Katy Yaroslavsky, who promised to stop the project during her campaign for the office.

Many of the areas that have been burned in the current spate of fires have burned repeatedly before. In the last few decades there have been multiple fires in Brentwood, Bel Air and the Hollywood Hills. Other communities like Baldwin Hills, Sunland-Tujunga and Chatsworth have all been hit by devastating fires. But, with rare exceptions, the City of LA continues to approve new development in fire prone areas.

As fires continue to rage across Los Angeles County, talk of rebuilding has already begun. I wish our elected officials would take some time to think about this. We need to have a tough conversation about rebuilding. I understand that thousands of people have lost their homes, and their dearest wish would be to rebuild and return to their communities. If individuals have the resources to do this, and if they understand the risks, they should be able to make that choice. But with the death toll from the current fires at 16, and damages worth billions of dollars, our elected officials should think long and hard about pushing for large scale development in fire prone areas. In most of these areas, the question is not whether they’ll burn again but when they’ll burn again. The LA area has always been prone to fires. As climate change continues to make the region drier and warmer, the risks will only increase. And while our firefighters can work miracles when conditions are favorable, we’re now seeing a brutal demonstration of how hard it is to control wind-driven fires.

It remains to be seen how strong the push for rebuilding will be once the fires stop. No doubt the real estate investors are already weighing their options. Some may want to bet on rebuilding. Others may think the risk is too great and decide to put their money elsewhere. But California Governor Gavin Newsom has already announced the suspension of laws that would require environmental review for rebuilding in fire prone areas. This is just crazy. After this disaster we should be insisting on stronger environmental review. The California Environmental Quality Act (CEQA) requires an assessment of whether new development will result in wildfire risks. It also requires cities to ask whether fire departments can provide adequate protection and whether the site can be safely evacuated in an emergency. Instead of brushing these issues aside, we should be insisting on careful scrutiny.

CEQA also requires review of a project’s greenhouse gas emissions (GHGs), because of the growing threat of climate change. Most Environmental Impact Reports I’ve read make no meaningful effort to accurately assess a project’s GHG impacts. Instead, the preparers rely on the State’s CalEEMod platform, which allows them to input whatever numbers they want, thereby pretty much guaranteeing that no project will ever appear to cause significant GHG impacts. In reviewing the EIRs, LA City Planning generally accepts whatever the developers claim without question. While the City of LA and the State of California claim to be fighting climate change, in reality both of them usually support new development regardless of what the GHG impacts are.

Again, I totally understand that many of those who lost homes in the fire are anxious to rebuild. If I were in their situation, I’d probably feel the same way. But LA has been repeatedly hit by deadly and devastating fires. As much as we may want to hear inspiring words about rebuilding, we need to ask: Do we want to be reliving this tragedy over and over again?

Let’s think carefully before we start to build again. And let’s demand that our elected officials do the same.

Image from Cal Fire Update, January 11, 2025

Tenants Kicked Out as Landlords Cash In

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Ellis Act evictions are so common in LA these days that I’ve gotten used to hearing reports of landlords kicking their tenants out. It happens all the time. As speculative development continues to push property values higher, property owners are eager to cash in. Over 20,000 units have been removed from the rental market through the Ellis Act since 2000. And in addition to the thousands of tenants who’ve been kicked out under Ellis, it’s likely that thousands more have lost their apartments because they were bamboozled by unscrupulous landlords using cash-for-keys scams.

In the course of writing this blog I’ve met a number of people who’ve either already been evicted or are facing eviction. So when I went to meet a group of tenants who live in a small building on Las Palmas it seemed like a familiar scenario. The owner plans to demolish the existing structure in order to build a 7-story mixed-use project, and so the people currently living there have got to go. The breadwinners in these families are working hard to make ends meet, and odds are they’re getting by on paychecks that add up to well below LA’s median income. While I’m sure they’re worried about getting evicted, one thing that encouraged me is that they seemed much more angry than scared. They’re not going to take this lying down.

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Some of the tenants facing eviction.

The tenants are paying much less than the area’s median rent, but they’re also getting next to nothing in terms of repairs and maintenance. I could see walking into the building that the owner wasn’t taking care of it properly. The tenants told me a number of stories about problems with their units that the landlord was either slow to fix or didn’t fix at all. My guess is that he’s been sitting on the property, waiting for the right deal to come along, and didn’t see any point in spending money on upkeep. I should mention that he has laid out some cash to fix up a few of the units, just not the ones that are occupied by the current tenants. You may be asking, why would he do that? The answer is simple. He’s posting the refurbished units on the net as short-term rentals. This is a pretty common practice. Landlords are doing it all over the city, and it’s more or less legal unless the tenants were evicted under the Ellis Act. So when we talk about a shortage of apartments in LA, we have to remember that there are probably thousands of units that are actually being used as unofficial hotel rooms.

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Council District 13 Candidate Sylvie Shain.

My friend Sylvie Shain came by to talk with the tenants. Sylvie is running for the CD 13 council seat, in large part because of her concern over LA’s affordable housing crisis. She knows first-hand what it’s like to be evicted, having been forced out of her apartment by owners who planned to turn the building into a boutique hotel. Sylvie spent over an hour with the tenants, giving them info on what protections they had under the law and helping them figure out their next steps.

Several days later I went to a neighborhood council meeting on the proposed project. The purpose of the meeting was to talk about the impacts of the new structure, not the eviction of the current tenants, but it’s hard to separate the two. The owner has said that he will reserve seven units in the new building to replace the seven units that are currently occupied in the old building, and that he will offer them to the current tenants at the price they’re now paying. This may sound like a good deal, but there are a few problems with it. First, the owner hasn’t actually signed an agreement, which means he’s under no obligation to honor these terms. Second, while the owner is offering to replace seven units, there are actually fifteen units in the existing building that are covered by the rent stabilization ordinance (RSO). His deal would mean the loss of eight more RSO units. This may not sound like a lot by itself, but thousands of RSO units have been taken off the market in recent years, which is one of the reasons affordable housing is so scarce these days. Third, the owner knows that the new structure will probably take a couple of years to complete. If the current tenants get forced out, there’s a good chance they won’t find anything they can afford in LA. It’s entirely possible that by the time the proposed project is completed, none of them will still be living in the area, and he won’t have to offer them anything.

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Neighborhood Council meeting on the proposed project.

Then there’s the way the Department of City Planning (DCP) is trying to push this project through. They’re trying to approve it with a categorical exemption, which means they’re arguing that because it’s in-fill development and conforms to the current zoning, the California Environmental Quality Act (CEQA) doesn’t require an environmental assessment. And to make that argument, they cite CEQA Guidelines, Section 15332. But CEQA requires that the project meet a number of conditions in order to grant the exemption, including the following….

Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.

Traffic is already getting to be a problem on Las Palmas. Formerly a quiet residential street with one lane going each direction, in recent years it’s become a short cut for drivers looking to avoid congestion on Highland during rush hour. And traffic on Las Palmas is going to get a lot worse, because in addition to this project there are two others about the same size that are currently under construction, one just to the north and one just to the south of the existing building. But wait, there’s more. At the corner of Las Palmas and Franklin work recently began on a complex that wil contain over 100 units. In other words, if this project is approved, the neighborhood will gain about 300 units, which will definitely have a significant impact on traffic.*

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Traffic northbound on Las Palmas at rush hour.

What’s more, the proposed project is about 500 feet away from the facility that houses both the Canyon Pre-School and the Las Palmas Sr. Center. Children and seniors are known to be sensitive receptors, and to say that there will be no significant impacts to air quality or noise levels during construction is ridiculous. The kids and seniors at this small facility already suffered an onslaught of construction dust and noise when work on the project at Las Palmas and Franklin began last year. But the DCP apparently just doesn’t give a damn, and so they’re trying to rush this project through with no environmental review whatsoever.

After the neighborhood council meeting, I contacted the DCP hearing officer to find out what the timetable was for the project’s approval. It’s tentatively scheduled to go before the City Planning Commission on April 13, though it could get pushed back. Meanwhile, the tenants wait and wonder whether they’ll have to find a new place to live, in a city where rents are spiralling higher every year.

*
Some housing advocates may be cheered by this news, but don’t get too excited. The vast majority of these units will be well beyond the reach of those making the area’s median income, $34,807 a year. [Source: LA Times, Measuring income along L.A.’s Metro stations by Kyle Kim and Sandra Poindexter, March 4, 2016]

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View of construction site from Highland.