California Association of Realtors President Dave Walsh has issued the following statement in response to new data showing a continuing decline in homebuilding in California in 2020:
"California Realtors have said it over and over: we need more housing now. The latest homebuilding data released by the Construction Industry Research Board (CIRB) showed the second straight year of decline in housing production in California. It's the exact opposite direction our state should be headed in if we're to solve the housing affordability and availability crisis.
"There's not enough housing supply in California to match the overwhelming demand. Until our state prioritizes policies to build more housing at every income level, we will continue to fight so that more Californians can find a place to call home," said Walsh.
Walsh said C.A.R. strongly supports SB 6 (Caballero) and SB 7 (Atkins), and is sponsoring AB 571 (Mayes). "We urge the legislature to pass these bills because we can't afford another year of inaction," said Walsh.
SB 6, The Neighborhood Homes Act, would allow property zoned for commercial use to be more easily utilized for housing. It will require that a local government ministerially approve housing developments of at least 20 units per acre on lots zoned for office, retail or commercial use on a neighborhood lot. These proposed housing developments would continue to be subject to all local zoning, parking, and design ordinances, as well as any design review or other public notice, comment, hearing, or procedure applicable to a housing development.
SB 7, Jobs and Economic Improvement Through Environmental Leadership Act of 2021, would extend AB 900 for five years. Both bills streamline the California Environmental Quality Act (CEQA) timetables for approval and litigation that otherwise would stall projects that have highly beneficial environmental attributes, like reducing GHG emissions, satisfying LEED standards, smart growth, build-out of transit, and more.
AB 571, Density Bonus: Fee Reduction to Construct Below Market Rate Unit, helps reduce the costs to build affordable housing. Fees and costs associated with the construction of affordable units are often passed along to buyers in the form of higher home prices or can increase the amount of subsidy needed to build affordable housing units.
Sponsored by C.A.R., AB 571 prohibits local governments from assessing affordable housing fees on deed restricted affordable units contained within a density bonus application. The state Realtor association says affordable deed restricted housing should not be required to pay a fee intended to construct other affordable housing. This fee only serves to increase costs to construct deed restricted affordable housing, making it less likely that developers maximize the affordable unit set aside within their density bonus application.
"California's homeownership rate is 55.2 percent and falling. In Silicon Valley home prices are skyrocketing because of the housing shortage, such that homes are only attainable by the very wealthy," according to Joanne Fraser, president of the Silicon Valley Association of Realtors. "To close California's housing gap, we need 3.5 million new housing units by 2025, yet only about 100,000 new units are built every year. These bills would help clear the way for more housing in our state."
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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.
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