Split forms over housing proposal

The discussion fuels the flames in a larger disagreement over local control and whether elected officials are accountable in creating the affordability problems which Newsom seems dead set on extinguishing.

For Matt Regan, a Bay Area Council public policy executive, Newsom’s proposal is an overdue policy proposal designed to combat the housing shortage while also offering ecological benefits.

“We will put our transportation dollars into the communities that build infill housing near transportation,” said Regan.

He said the idea stands to increase affordability by ramping up housing supply while also cutting greenhouse emissions from those priced out of job centers facing long commutes to work each day.

He also characterized Newsom’s proposal as a choice for local officials who can do their part in approving development, or seek other sources of money used to address transportation issues.

“If you don’t want to provide housing for people and force them into long commutes, we won’t pay you,” he said.

Agencies which advocate for the authority of locally-elected officials take a different position on the proposal though.

“While we have concerns about specific proposals that would raid local transportation funds that voters have repeatedly dedicated to local communities, we believe there are other viable ways to accomplish our mutual goal of increased housing,” the League of California Cities said in a prepared statement. “We pledge to work with the governor and legislators in the coming weeks and months.”

The California Association of Counties shared a similar perspective, suggesting public funds should not be tied to housing developments most often proposed by private entities.

“We are concerned about placing additional conditions on counties that could limit access to SB 1 funds,” the association’s executive director Graham Knaus said in a prepared statement, which also characterized the proposal as disheartening.

Much of the perspective shared by the two sides mirrors sentiments expressed last year when state Sen. Scott Wiener, D- San Francisco, proposed legislation seeking to strengthen the Legislature’s authority to compel cities to meet regional housing goals.

While the most ambitious proposal from Wiener failed last year and its fate in the current legislative session resurrected as Senate Bill 50 is yet to be determined, Regan said he is heartened to see Newsom take a strong stance on a similar issue.

“I think it’s a drastic sea change from what we’ve seen in the past,” he said, noting the difference in Newsom’s approach to solving housing issues from his predecessor former governor Jerry Brown.

Regan acknowledged there could be shortfalls in Newsom’s most recent proposal though, such as the opportunity for more affluent cities to elect to forgo the state funding and continue to hold off on development in the name of preserving community character.

“When you are making big changes, the law of unintended consequences is something you need to be mindful of,” he said.

But he also noted the changing nature of municipal budget development and suggested officials may rely so heavily on the state funding that they cannot elect to pass over an essential chunk of money.

“It’s a large piece of the pie chart when it comes to budgeting,” said Regan, who pointed to the increased pension obligations facing cities across the state as an additional financial hurdle officials must consider when potentially electing to opt out of the state money. He also noted state revenue is often used as a source of matching funds for local initiatives, which could multiply the value of the transportation dollars.

Looking ahead to the ongoing negotiations for Newsom’s proposal ahead of the summer approval deadline, Regan expressed optimism the financial incentive would not be bargained out of the final budget.

“Given the depth of our housing crisis, and all the societal ills that come with it, I would hope that there would be enough collective will to enforce it,” he said.

And in the wake of years of local decisions which he feels contributed to the housing shortage, Regan said he believes it is time to shift the nature of the conversation around residential development throughout the state.

“Carrots are great,” he said. “But absent the stick, very little actually happens.”

austin@smdailyjournal.com

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