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Housing Production


Principles and steps to dramatically increase our housing supply.
Housing development in California

Key Takeaways

1. Address high development fee costs by local governments

Reduce fees; monetize fees over time with a state assistance/loan program; defer payment of development fees for 10 years with a state backfill.

2. Streamline approval process to fast-track new housing

Create a one-stop, cross-agency approval process at the local level with the goal of start to finish approvals of 90days for completed applications; use state resources to assist in theapplication process for new housing developments.

3. Modify the CEQA process for new large housing developments

Provide that large housing developments that meet certain criteria have a presumptive negative impact on the environment (negative declaration).

California’s longstanding — and accelerating — housing crisis has been called the state’s “original sin.”Spiraling prices crush the middle class, drive talented young people and families to leave the state, and diminish the rich labor pool that has drivenCalifornia’s economic dominance for decades. Within the state, workers fleeing urban job centers for more affordable housing in distant exurbs creates more congestion and threatens the progress the state has made on emissions reduction.

New housing must be produced at scale(market-based without subsidies) at 4x average median income for each county; this requires a significant reduction in housing costs that should not penalize labor, but should substantially limit entitlement process durations and costs, eliminate lawsuit risks, and cap fees and mitigation costs to no more than 10%of housing production costs.