New Becker bill to tighten policy on builder’s remedy

“The main thing we’re doing in the bill is we’re closing a loophole where a city adopts a housing element, but then if HCD takes its sweet time to approve it in that interim, right now, developers can submit those remedy projects,” Becker said. “Which isn’t really fair.” 

The legislation would not apply if HCD doesn’t approve the housing element — a state-mandated requirement for local cities to meet increased growth and housing needs. 

Jeremy Levine, San Mateo County Housing Leadership Council policy manager, rejected the idea that current builder’s remedy laws offer developers major loopholes in practice. 

“There aren’t that many builder’s remedy projects in San Mateo County, and the vast majority of the projects that have been proposed, [were] for the most part proposed after cities have been out of compliance for a year or more,” he said. “Partly, why I protest the loophole thing is [because] the handful of builder’s remedy projects that are active in the county have largely come when cities were quite far behind.” 

Additionally, the state Legislature responded to concerns around builder’s remedy with legislation that attempted to further define size and scope of developments last year, Levine said.  

The HLC hasn’t taken a stance on the legislation, Levine said, and noted that the organization’s first goal will always be for cities to have state-compliant housing elements and plan for housing on their own. 

“We’re never going to say that a community needs builder’s remedy,” he said. “We will say that communities can plan better for housing.” 

In parts of Becker’s district, builder’s remedy has become an increasingly common tool, he said, noting 22 builder’s remedy projects in Saratoga and 16 in Los Gatos. Builder’s remedy was also used for a 461-foot building in Menlo Park and a 177-foot building in Palo Alto, spurring local concern. 

“That has galvanized a lot of residents,” he said. 

A second element of the proposed legislation would require developers to submit complete applications for builder’s remedy projects — with the goal of eliminating placeholder applications that aren’t seriously ready for development, Becker said. 

“It’s often speculative filings and that ties up that land, where you might have other people with real, shovel-ready projects that then can’t come through,” he said. 

Ultimately, changes to builder’s remedy law may change the incentive structure for localities that need to increase housing growth, Levine said. 

“It is conceivable that fewer projects get built under the builder’s remedy in places that are not complying with the law,” he said. 

Amidst consistent battles between state housing policy and local control, Becker said his approach to housing growth is focused on the reality of housing design and expansion. 

“Keep the focus on real, sustainable and well-designed housing solutions, right?” he said. “So looking at what is smart growth for San Mateo and Santa Clara counties.”