By Alfred Twu
Nov 16, 2024
https://www.sfchronicle.com/opinion/openforum/article/california-housing-laws-19913928.php
New California housing laws will make it easier to build in commercial zones and split lots for multiple homes. Alfred Twu/Special to the Chronicle
In California, 2023 was a blockbuster year for housing legislation with bills that streamlined approvals in most major cities, doubled the affordable housing density bonus, created more options for townhouses, condos and ADUs, and allowed religious organizations to build affordable housing on their land, regardless of zoning.
This year’s housing bills were less sweeping. Instead, they built on previous work to make existing laws easier to use.
Commercial zones continued to be the primary target areas to accommodate new housing. Shopping centers and office parks are large enough to benefit from economies of scale and are typically near jobs, shops and transit.
Redeveloping these sites also has less impact on nearby residents. A single mall has enough land for dozens of apartment buildings, allowing work to take place in phases. Parking lots can be replaced by housing above garages. Sometimes, the mall itself is also replaced one piece at a time with housing above shops. This was the original plan when malls were first proposed in the 1950s — a cluster of businesses that would then be surrounded by apartments, offices and public services.
Some malls have already made the move and combine retail with thousands of homes.
Examples can be found in downtown Sunnyvale and near the San Antonio Caltrain Station in Mountain View.
This year’s flagship bill, AB2243, was designed to make it easier to undertake these types of developments. It updated 2022’s AB2011, which legalized housing in all commercial zones, even if they previously didn’t allow it. The biggest change is that regional malls up to 100 acres are now eligible for building housing — previously, AB2011 was limited to sites up to 20 acres. A typical mall, such as the Stonestown Galleria in San Francisco, is around 40 acres, while a large mall like Serramonte Center in Daly City covers about 80 acres. Under AB2243, the height limit for housing ranges from 35 feet (on narrower roads) up to 65 feet near transit, These heights can be increased by the affordable housing density bonus. Projects are exempt from the California Environmental Quality Act or other local reviews and are required to pay prevailing wages and meet other labor standards.
With many millennials eager to buy homes, legislators have also worked to encourage the building of more for-sale housing. In 2023, SB684 made it easier to subdivide multifamily lots to create subdivisions with up to 10 houses, townhouses or condos. This year, SB1123 adds vacant lots in single-family zones to the list of eligible sites. For lots that already have a house, this year’s SB450 updates 2021’s duplex and lot split bill SB9 to make it easier to use.
Recently, the Builder’s Remedy — which allows developers can exceed zoning in cities that aren’t following state housing laws — made headlines after skyscrapers were proposed in low-rise neighborhoods. The Builder’s Remedy dates to 1990. However, due to uncertainty over the process, it was mostly used as a bargaining tactic, with developers submitting plans for towers and then negotiating to approve a smaller building.
This year’s AB1893 cleaned up ambiguities with the Builder’s Remedy. It will be easier to use, and as part of the deal, density is no longer unlimited. The new cap is three times the existing zoning, or 1.5 times Mullin density, whichever is higher. The Mullin density allows 30 units per acre in metropolitan areas; 20 units per acre in suburban areas, which includes Bay Area cities with populations under 25,000; 15 units per acre in incorporated cities in rural areas and 10 units per acre in unincorporated rural areas.
For comparison, a Victorian duplex in San Francisco is about 45 units per acre.
Accessory dwelling units got a boost this year. SB1211 allowed apartments to add more to the same lot, up to the number of existing apartments, or eight, whichever is less. For example, a fourplex could add four ADUs. AB2533 also made it easier to legalize unpermitted ADUs built before 2020.
Development and permit fees can be over $100,000 per unit in many cities and are a major obstacle to new housing. Legislators took three approaches to lessen the impact this year: reducing some fees (AB3177), allowing others to delay payment until the building is completed (SB937, AB2729) and more transparency so that builders can accurately know what fees to expect (SB1210, AB1820, AB3012).
For tenants, there were fee reductions to cut moving costs. AB2493 could reduce the cost of screening fees when applying for a rental. Landlords now have the choice of either accepting the first qualified applicant — similar to Seattle’s first-in-time system — and refunding fees for all later applicants. Or, if they want to be more selective, they can refund fees for all applicants not selected.
SB611 bans some junk fees, while AB2801 requires landlords to provide more documentation if they want to hold onto part or all of the security deposit on move-out and limits the things a landlord can hold onto a deposit for.
Other bills protect tenants in affordable housing. Since rents in affordable housing are otherwise based on area median income, tenants have been hit with large rent increases when their county got wealthier, even if they did not. AB846 capped rent increases in affordable housing. Meanwhile, AB2926 helped preserve affordability at older affordable housing where deed restrictions that limit rent are about to expire.
In rural areas, AB2240 allowed farmworkers and their families to live year-round in farm labor centers, reflecting changes in the workforce. Today’s farmworkers are mostly commuters rather than migrants, staying in one community with their family rather than moving from farm to farm.
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Other notable bills include density bonuses for student housing (AB3116) and residential care homes (AB2694), and extending the time to respond to an eviction (AB2347).
Given California’s budget woes, the 2024 housing package is still impressive, with over 60 bills signed. Next year, with new legislators taking office, we should expect some fresh ideas and ambitious plans.
Alfred Twu is an architect, artist and housing advocate who creates illustrations explaining state housing legislation.