California Senate Bill 50, introduced by Senator Scott Wiener, proposed significant changes to the state’s zoning laws with hopes of relieving California’s housing crisis. California is currently experiencing a shortage of 3.5 million homes, according to the California Housing and Community Development Department. However, to the surprise of many, the bill was stalled in the Senate Appropriations Committee and postponed until 2020.
The bill was strongly supported by California construction trades including the State Building and Construction Trades Council of California, which represents 400,000 construction workers in 14 building trade crafts across California. Supporters of the bill expected that it would accelerate the pace of new construction and alleviate high housing costs. The bill was defeated by a coalition of suburban groups who opposed the notion of increasing density in residential areas. The bill also faced resistance from local governments concerned about losing control over local zoning laws.
Most California cities have largely prohibited higher density or multifamily housing developments. As a result, such single-family zoning restrictions have contributed to the shortage of affordable housing for both renters and owners. If enacted, this bill would have prevented cities from prohibiting such development near transit and employment centers.
The generation of multifamily housing development would have been implemented under the bill with the following provisions:
Streamline Process for Multifamily Structures
The bill would establish a ministerial review and approval process to streamline the construction of multifamily structures on vacant land, or to convert existing structures, consisting of up to four residential dwelling units. The bill would limit the authority of local agencies to impose parking standards on a streamlined development and exempt such projects from the CEQA approval process.
Equitable Communities Incentive
Local jurisdictions would be required to grant an “equitable communities incentive” for qualifying projects near transit or employment opportunities. In exchange, projects would have to allocate a portion of the units as affordable. These projects would still have to comply with CEQA and local restrictions but would be exempt from maximum height requirements less than 55 feet and any minimum parking requirements.
Sensitive Communities
The bill would delay implementation for five years in potentially sensitive communities at risk of gentrification and displacement. Sensitive communities may satisfy its requirements by developing a community plan that encourages multifamily housing and complies with minimum affordability standards found in the bill.
Similar provisions have already been enacted in Minneapolis, which was one of the first major U.S. cities to do away with single-family home zoning. We expect to continue to see a growing trend of states that now seem to favor ending single-family home zoning. The failure of SB 50 highlights California’s need for more policies that incentivize the production of denser housing near transit-served and employment-rich areas.
