The law of supply and demand in economics helps explain one of the reasons why California's housing costs are high. When demand is strong and supply is low, prices go up. We simply need to add more housing.
The state Legislature has approved a number of laws to make it easier to build more homes and multi-unit residences. We have also allocated funds for affordable housing developments. We know we have to do more.
This year, I have three housing bills that are gaining momentum in Sacramento, each winning committee approvals this month. Two of them were profiled in the San Francisco Chronicle last week, AB 976 & 1033. Both proposals can further the boom California is experiencing with accessory dwelling units (ADUs), which are commonly known as backyard cottages, casitas and other terms that refer to livable spaces on a property that is separate from the main house. AB 976 ensures ADUs don't have to be owner-occupied, and AB 1033 would allow ADUs to be sold separately, like a condo.
I am a big supporter of ADUs and have championed laws to expand them. I like how they allow multi-generational families to live near each other. These small homes also give property owners a chance to earn rental income. Combine my efforts with other legislative actions, and ADUs have become a quiet housing success story, a sort of backyard revolution.
My third bill, AB 1633, is also poised to have a big impact on housing supply. It aims to keep projects moving forward. If they meet the requirements under the California Environmental Quality Act (CEQA), they can no longer be delayed under my proposal. CEQA has been used - and abused - by residents and local jurisdictions to delay developments. We must put an end to this tactic.
I will keep you updated on how my housing bills do.