California REALTORS®® applaud a "build by right" proposal by Gov. Jerry Brown that would create a voluntary permit streamlining approval process for developers to use.
"With a historically low homeownership rate of 54 percent and record high rents, the dream of owning a home in California has become increasingly more difficult to attain," said California Association of REALTORS®® (C.A.R.) president Pat "Ziggy" Zicarelli. "C.A.R. recognizes the urgency of California's housing crisis and fully supports Gov. Brown's efforts to reduce development costs and improve the pace of housing production. We encourage the Legislature to include this proposal in its final state budget."
Gov. Brown's proposal, in the May revision to the 2016-17 budget, includes a "build by right" proposal that would create a voluntary permit streamlining approval process for developers to use. The proposal will exempt from detailed local government reviews developments already zoned and approved for housing when 5 to 20 percent of the newly constructed units are set aside for low-income residents.
C.A.R. supports a $1.3 billion proposal by the Assembly Housing and Community Development Committee to invest a portion of the state's budget surplus to address the state's housing crisis. C.A.R.'s Affordable Workforce Housing Task Force has made recommendations to increase the availability of affordable work force housing in California.
"The Governor's proposal is needed due to the lack of housing supply the state is experiencing, especially in places of high employment growth, like Silicon Valley. We want our economy to continue to grow, but we need to be able to provide the necessary infrastructure. In Silicon Valley, we need more housing for the work force that companies are bringing in," said Karen Trolan, president of the Silicon Valley Association of REALTORS®®.
California housing affordability was slightly higher in the first quarter of 2016, compared to the previous quarter due to a combination of higher wages and lower home prices, according to C.A.R. When compared to the previous year, rising home prices offset income gains.
C.A.R.'s reports states 34 percent of California home buyers could afford to purchase a $465,280 median-priced median priced home in first-quarter 2016 up from 30 percent in the fourth quarter of 2015 and unchanged from first-quarter 2015. California's housing affordability index peaked at 56 percent in the first quarter of 2012.
Eight of nine counties saw improvement in the affordability index, San Francisco (13 percent), San Mateo (16 percent), and Santa Cruz (18 percent) counties were the least affordable in the state. Santa Clara County was not far behind, with 22 percent of home buyers able to afford to purchase a $970,000 median priced home in the first quarter.
"Increasing the housing supply would improve affordability, helping more people achieve the American dream," said Trolan.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.