Court overturns state ruling on San Francisco’s infamous 469 Stevenson project
sfchronicle.com
sfchronicle.com
Newsom has demonstrated he takes housing starts seriously (Really! The fact that virtually every commercial lot is now zoned for ministerial housing approval statewide, abolishing parking minimums statewide, passing SB9 to allow 2-4plexes on single family parcels statewide, and passing SB10 to exempt apartments of less than 10 units from CEQA, and directing the housing authority to decertify rich cities' zoning codes that flout RHNA housing obligations like Santa Monica is huge) and I don't expect him to let up.
> State housing laws, she ruled, do not apply to a project until after a city “certifies” the project’s environmental review.
> Although CEQA puts a one-year limit on environmental review, the court held that this deadline is just advisory
If these rulings stand, you can absolutely bet that CA state housing laws in 2023 will now turn their focus toward CEQA. At a minimum, expect that "advisory" deadline to be formalized, shortened, and certification expedited or even exempted if the project falls within certain categories. Bike and bus lanes were just exempted from CEQA this session, and I absolutely imagine housing that is X% affordable will be soon, too.
In fact, really all California has to do is expand SB 330 or their 2019 Builders Remedy Law (which itself gave an existing state law from 1990 teeth) which states that developers are guaranteed ministerial approval regardless of zoning in any municipality determined to have a non-certified housing element to include expedient and ministerial CEQA approval. What would once be considered unthinkable politically a decade ago is now just a legislative hop and a skip away.
The true test is whether or not this works in Palo Alto. That's the NIMBY capital of California.
I guarantee they when Charlie actually does that, Lucy will nevertheless pull away the ball again.
Strict SFH zoning? It can often be ignored now and build duplexes and four-plexes by right (no CEQA necessary!)
Amply sized commercial lots but no residential multifamily zoning? Those can be residential now. No CEQA necessary in some cases. I believe it's <400 units.
Parking requirements? Gone. In fact a city cannot even consider parking in deciding to issue a permit or not.
Procedural tactics? New laws have been passed capping the amount of required public comment meetings to 3, along with various other things like maximum review windows and mandatory ministerial approvals.
Bad zoning? Cities for which CA decertifies their zoning codes (housing elements) can be considered to _have no zoning_ until they present a housing element the state is satisfied with. Such cities include Santa Monica (recently fixed, but not before 4000+ units qualified), Beverly Hills, Pasadena, Redondo Beach, Davis, soon to be Palo Alto and San Francisco.
The only thing that's left, really, is CEQA reform. California is _so close_ to realizing a building boom. You have the Coastal Commission, too, but that only affects properties directly within the vicinity of the beach, and as a state agency is not something a city itself can really influence.
It will lead to a boom in 4-5 years most likely after big turnover in existing boomer home owners and resets in price expectations lead to cheaper house valuations, which lead to lower land values, which lead to lots being somewhat affordable again.
Then tear downs and builds at higher density become more economic, and the rules unblock it.
According to Wikipedia [4], "Since the early 2000s, the organization has not built more housing. The organization derives resources from the rising value of its properties, which is a consequence of skyrocketing property prices in San Francisco."
EDIT: more context from the Wikipedia quote: "The organization has used these resources to lobby against housing construction, as well as fund various other propositions. The organization has been criticized for using the windfalls of its operation on political advocacy rather than on its properties and resident services."
In other words, they’re basically the real estate equivalent of patent trolls, except you can’t pay them to go away.
1. https://sfgov.legistar.com/LegislationDetail.aspx?ID=5127075...
2. https://www.todco.org/advocacy
3. https://yellow.place/es/todco-group-san-francisco-usa
4. https://en.wikipedia.org/wiki/Tenants_and_Owners_Development...
To make it explicit, this is a very perverse incentive, because essentially, the housing crisis getting worse leads to more resources for them (and vice versa)!
Has anyone tried?
So, to be clear, we are currently paying them to not go away, so you're going to have to come up with something truly exceptional to get them to go away.
0: Tax credits, strictly, which are transferable
> That’s essentially what Alameda County Superior Court Judge Brad Seligman ruled this week when he froze enrollment increases at UC Berkeley in response to a lawsuit by a local NIMBY group called Save Berkeley’s Neighborhoods. The judge found that the university failed to account for the impact of increased enrollment — including late-night parties and crowded parks — in its plans to add more student and faculty housing, in violation of the California Environmental Quality Act, known as CEQA.
Well-intentioned laws (ie environmental impact) are effectively being weaponized for the benefit of rich people.
There have been some victories in Newson's push. A notable example is Santa Monica. The city is quite famous for fighting development to going back decades. Now the state mandates cities have to have a "Housing Element", which is a plan for increasing affordable housing. Santa Monica fought this but got out of compliance. This allowed developed to bypass the city and get thousands of units approved. The city is now in compliance but is lookking at legal options for fighting the approvals.
Santa Monica, like many wealthy cities, also fought against the Westside rail extension into the city [2]. Why? "Crime" of course. What this really means is "undesirables", which itself means "poor people".
You really see the awful cruelty of some people in all this. Rampant NIMBYism and the impact it has on housing supply and affordability is a key contributor to homelessness, poverty and property crime. Oh well, I guess we'll ship everyone off to Martha's Vineyard. Problem solved.
[1]: https://www.sfchronicle.com/opinion/editorials/article/Edito...
[2]: https://la.curbed.com/2013/7/16/10219386/westside-nimbys-han...
"Throwing seniors out of their homes" was effectively used to give incumbent homeowners a massive tax break. Worse, it gave Disney a massive decades-long tax break. What people often don't talk about with respect to Prop 13 is how it benefitted corporations.
Corporations end up owning property in LLCs and they simply buy and sell the LLCs. This doesn't technically count as a transfer (which would trigger a revaluation for tax purposes) so Disney in Anaheim is paying a tax rate for their theme park that was capped (with 1-2% max annual increases) in the 1960s.
The other horrible part is you can inherit a decades-old preferential tax rate. I mean, you wouldn't want to kick people out of their parents' home would you?
California needs to be more like Texas in this regard. Reassess for property tax frequently. Allow property tax deferral for seniors who don't want to move. And there's no beneficial tax rate to inherit.
Why do you think there's a chance?
Almost 80% of home-owners vote - and the CA home-ownership rate is above 55%. Usually less than 50% of renters vote.
Prop 13 is currently popular with both liberal politicians (think about the poor old ladies who'd have to move!) - and conservatives (we actually like regressive taxes).
I can't even see a path to start being hopeful in the next 10 years.
California and Texas both need to drop sales/income/property taxes entirely and replace them with land value taxes.
I was surprised it failed, but it cemented the idea for me that Prop 13 is untouchable.
(See https://www.sanjoseinside.com/news/labor-business-spar-over-... for information about tax breaks for giant developers)
The people who supported prop 15 are evil and racist (it would have put many minority businesses out of business). The only businesses left would be giant corporations who could make deals. (See https://calmatters.org/commentary/my-turn/2020/10/prop-15-wo... ).
You have every right to want to see small businesses replaced by corporate megaliths, but don't pretend you're doing that out of "fairness." That's evil.
To dismiss this political reality is to "bring a knife to a gunfight."
Again, to property owners this is their biggest asset and they're not playing around.
Making large and single family homes more scarce will increase the market value of existing large single family homes.
Allowing more dense development increases land value.
YIMBY policies increase both the improvement and land value of existing real estate with single family homes.
For example, in most of the US, it is illegal to build anything other than single-family homes ("SFHs"). This is NIMBYism and intentionally exclusionary. If you have minimum lot sizes and can only build an SFH on it, you're creating an economic barrier to people living there, usually under the guise of preserving the "character" of that commu8nity.
Likewise, most places are completely car-dependent. This too is intentionally exclusionary.
Even in built up areas like Manhattan, a lot of units are bineg built but they're heavily weighted towards the ultra-luxury segment (>$3,000/sq ft). There were tax incentives to build this ultra-luxury property (ie J-51).
Pretty much every facet of US housing is designed to limit supply and be exclusionary at the policy level.
Which also results in unsustainable neighbourhoods. https://www.youtube.com/watch?v=7IsMeKl-Sv0
There's an element of tyranny and expropriation in the YIMBY movement.
Santa Monica has refused to do so for the past 10 years. This year they just had their entire zoning code essentially overturned by the state (again, per that law) until they were back in compliance. In the 3 months they were deemed noncompliant before they got their act together, applications for 4000 units were filed and now must be approved ministerially, which goes a long away to satisfying their 8000 unit shortage as determined by RHNA!
Beverly Hills and Pasadena just had their housing elements (zoning) thrown out for the same reason. San Francisco, Berkeley, and Palo Alto will be next unless they get their act together. No city itself is the source of the state's housing crisis. But Santa Monica is one part of it.
Anyone who doesn’t understand California housing politics won’t understand why every city would want to arbitrarily kill every housing project. California cities don’t want housing in THEIR city. They want housing in their neighboring city and want the commercial buildings in their own city. This is because Prop 13 prevents cities from collecting RISING taxes from residential properties (but they can collect rising taxes from commercial properties)
This is why California looks obscenely underdeveloped despite its GDP per capita rising 15x in 50 years.
The parenthetical here is incorrect - all property taxes, regardless if they are for residential, commercial, or industrial properties, have capped yearly increases under Prop 13. In 2020, there was a ballot initiative, Prop 15, which proposed a "split roll" to remove the Prop 13 rate caps from certain types of businesses, but it did not pass. You can read more about Prop 15 here: https://ballotpedia.org/California_Proposition_15,_Tax_on_Co...
This is a common fate for laws in CA; they don't like voting down things when they can silently kill them. In this case it'd be popular, as all YIMBY laws are, but was killed by building trade unions. Unions and activists alike rely on a lot of "trolling" features in state law where they just annoy developers to death with process and fake lawsuits until they agree to negotiate with whatever their demand is today. It's probably not a good way to do things.
1st to be pedantic, this was a bill not a law. https://www.youtube.com/watch?v=FBpdxEMelR0
2nd, this is the fate of many a bill in all 50 states and is not something unique to the legislative process in CA.
A developer having to (1) wait a year after submitting the approval to then "call into question" the deadline and then (2) wait another 3 months for a decision after that and then (3) sue the city for a court order to proceed
is not a "streamlined" process. In fact it's more or less what the process already is today in some cities. I'd much rather see a better system introduced, rather than that bandaid solution:
"If the completed environmental review is not approved within a year after submission [for some projects which fulfill X criteria], it is assumed compliant." with further safeguards like "a city must start the review process within 90 days and present major findings within another 90 days after that" to avoid the "we just started reviewing it a day before the deadline" delay tactic.
It isn’t a court’s job to evaluate tone or make policy decisions. If laws lead to bad outcomes, the laws are the problem. Not the courts.
That's not to say the courts can't make things happen, but it's harder. The relevant party can say "look, I'm doing it!" and the court then has to rule "no, you're not."
A writ of mandamus obligates a government official do do his job. If a court wants to order “someone” (read: a citizen who is not a government official) to take some positive action they issue what is known as a positive injunction which is, as the name suggests, a type of injunction.
When a court issues a negative injunction, the enjoined party can say, “Look, I’m not doing it!” and the court still has to decide whether or not that is true, so I’m somewhat unclear of the nature of your argument against positive injunctions.
And probably, when that date passes,
1) someone has to complain to the court
2) the court has to schedule a hearing, where both parties are represented.
In other words, time goes by. Not saying it's impossible.
This sounds like a law which states that you can't break the law.
Note that this is NOT the case usually - if you propose a building today and construction starts in 4 years you often have to code-update everything to the construction start date; or even the construction end date. So the law has a purpose.
Imagine if they spent that on improving the housing situation.
Whenever someone says "image a billion dollars" just remember that amounts to 1000-2000 small apartments at best.
A billion dollars for a thousand apartments is one million per apartment. Even in corrupt, dysfunctional California that's crazy high.
The cost should be a few hundred dollars per square foot to build, plus land cost. Anything over that is overhead California forced on itself.
Don't know if this will work, but Zillow found 285 properties between 475-500k built in 2022 that are houses:
https://www.zillow.com/ca/?searchQueryState=%7B%22pagination...
its time for the California City Development Company to shine. It's already the 3rd largest city in the state so surely they can adequately handle the population growth with current infrastructure.
http://www.desertnews.com/article_7ffe4cb4-fa34-11eb-b387-53...
https://laist.com/news/california-city-podcast-investigation...
Then they are part of the housing problem. You can't have everything - more immigration, cheaper housing, and more restrictions on building.
I wonder if a state can put a “bugger off we’re full” sign on the border?
Is that realistic? I don't know, but it seems clear that any real solution has to be cheaper than what's being spent now.
No, small apartments do not cost $500,000-$1,000,000 to construct in CA. In dense urban cores (whuch are very small parts of even major metro areas) they may cost that much to buy, but that’s not construction costs.
Even if that was true, it would be irrelevant in this context, since we are talking about the cost of a hypothetical program that would be enacted through State law, not private action by developers. And State law can (as demonstrated by things like the builders remedy) suspend or otherwise bypass local administrative barriers.
Short of dissolution the state cannot simply ignore local agencies, as we see with UC vs. Berkeley.
No, short of dissolution, it can also adopt any restriction on or state immunity from local authority it wants. (There are some resrictions that might take a ballot measure rather than just the legislature, but since the hypothetical didn’t limit the methods by which the proposed program would be adopted, that is immaterial.)
> UC vs. Berkeley.
UC, while established by the State, is not coextensive with it and does not independently exercise the full powers of the State.
Can we get a ballot initiative on this for god's sake?
Time to swap her out!
In the meantime, this can be appealed.
Who in hell thought that was a good idea?
Every politician ever says they're tough on crime, and this basically turns judges into politicians. I don't want a judge that's tough on crime, I want a judge that's impartial. I want a judge judging a case purely on its merits, not with one eye on the upcoming election, and what's popular with voters.
I don't know how it's done elsewhere. Probably selection by peers, some kind of veto from the government? You need someone capable of assessing the quality of someone's judgements. The general public ain't it.
Isn't the State of CA supposed to be made of the cities in CA, rather than in opposition to their desires?
If the city doesn't want housing, that should be fought at the city level, rather than the state stepping in. The whole thing just seems upside down to me.
The classic solution to this problem is to create a central authority with the power to compel each citizen to do their fair share. Similarly, the people of California have shown through their votes that they believe the state should take collective action to build enough housing to allow the next generation to move out of their parents' houses.
Absent state action, no city would volunteer to do their share; they would prefer to keep their abundant parking availability and endlessly-rising property values. And so the state steps in to ensure that voters' goal of increased housing production is achieved.
[1]: https://en.wikipedia.org/wiki/Tenants_and_Owners_Development...
[2]: https://en.wikipedia.org/wiki/California_Environmental_Quali...
the League of California Cities fights the State of California daily, forever.. also Counties do it, and the several regional government associations do, too.
it was supposed to be better this way.. compare to Argentina maybe ? the bill is overdue on all of this
Still, this does handle the supposed problem of aging Boomers being stuck in their houses because of Prop. 13.
Supposedly, Boomers in a paid off house in a wealthy area were dissuaded from moving, because their property taxes would skyrocket. Unless they moved to a county that accepted the Prop 13 swap for over-55's, which not all counties did.
Now that is eliminated. Dude.
Too much progress in this country is being slowed down by judges legislating from the bench, on both sides. Everyone should just stop following judges orders, Democrats and Republicans. The only matters judges are qualified to judge are trials.
The problem is that city counsels and judges are skirting laws by violating clear legislative intent.
Issue an injunction, have the construction workers arrested and charge the developers with contempt?
So... no more rule of law. Got it. What could possibly go wrong? /s