Two bills introduced this week by Assemblymember Marc Berman aim to aid in affordable housing production by both streamlining the process for developers and preventing cities from charging fees that can limit the construction of below-market-rate units.
The bills tackle issues deeply embedded in the nuance of how affordable housing comes to fruition in the state, and are part of an increasing effort to tackle housing affordability by some legislators. Berman’s district encompasses both Palo Alto and Mountain View, where median rents for a one-bedroom have climbed to more than $2,700 and median home prices are well above $2 million.
“I can’t do anything about the cost of material, I can’t do that much about the cost of land,” said Berman, D-Palo Alto, noting the cost of producing housing. “But there are some ways that the state can remove obstacles or alleviate bureaucratic hurdles and make things less onerous.”
Assembly Bill 2063 would build on the state’s density bonus rule, a law from 1979 that allows developers to construct residential buildings taller than otherwise allowed per local land use rules in exchange for including a certain percentage of below-market rate units. Some cities have imposed fees developers must pay when utilizing the law, limiting its use, a practice Berman’s bill would prohibit.
“The housing’s not built because it financially doesn’t pencil out,” Berman said. “At the end of the day because of all these fees that get tagged on, we’re not getting the affordable housing and we’re not getting the market-rate housing and that’s bad for everybody.”
The other bill, Assembly Bill 2006, would streamline the process required of developers when certifying affordable units with the state. Because affordable units require subsidies that often come from the state, developers must certify that units are being properly used. That involves proving residents meet income caps or other potential qualifications for a given unit.
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According to Berman, the process usually entails reporting similar information in different ways to three separate agencies: the state’s Department of Housing and Community Development, Housing Finance Agency, and Tax Credit Allocation Committee. The bill would require the agencies to work together to streamline the process for developers.
“This is something that will apply to a lot of projects, and even if it saves 2, 3, 4% of a total cost of a project, that’s still a lot of money that we’re talking about,’’ Berman said.
The bills come as cities are increasingly faced with requirements to usher in more affordable housing. Per state law, cities in San Mateo County will need to permit more than 47,000 units of housing combined between 2023 and 2031, the majority of which will need to be rented or sold with below-market rate rents or prices. The allotments — part of the Regional Housing Needs Allocations, represent a hefty increase from numbers prescribed in years prior.
Berman said he hopes his bills will aid in cities’ efforts to meet the allocations, noting he often hears from cities that need help from the state. “That can be either money, but it can also be reducing inefficiencies,” he said.
He said the two bills will be the only housing-related bills he will produce this legislative session, though he expects others in the Legislature will have more housing bills forthcoming.
Wait, am I reading this right? Do we actually have a Democrat willing to address a root cause of why affordable housing is not being built? Wow! Kudos to Mr. Berman. Perhaps he can educate many of the clueless Dems who just talk the talk, but never walk the walk in addressing affordable housing. A thank you to Corey for writing this article.
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Wait, am I reading this right? Do we actually have a Democrat willing to address a root cause of why affordable housing is not being built? Wow! Kudos to Mr. Berman. Perhaps he can educate many of the clueless Dems who just talk the talk, but never walk the walk in addressing affordable housing. A thank you to Corey for writing this article.
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PLEASE TURN OFF YOUR CAPS LOCK.
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