California to Convert More Underutilized Sites Into Housing

Introduction to Affordable Housing

There have been enough examples of cities scared straight into getting their housing elements in order. At least the state’s also trying to do its part in boosting California’s affordable housing supply.

Gov. Gavin Newsom said Friday six more affordable housing developments will turn surplus, state-owned real estate more productive.

Central and inland California will be the biggest beneficiaries: Atascadero, Napa, Fontana, San Bernardino and Stockton will see repurposed properties once operated by the Department of Motor Vehicles, Department of State Hospitals and Department of General Services.

At least 850 units are slated for development, the vast majority affordable with one or two market-rate homes at each.

Tenants will be under a lease option agreement, which offers the chance to purchase the unit at the end of a specific term.

What’s in it for developers? An approval process of less than five months.

A total of 10 additional sites are currently available and accepting developer proposals in places such as Los Angeles, San Bernardino, Santa Barbara, Marin and Sacramento counties, according to the state’s portal.

The Importance of Affordable Housing

Why does any of this matter? For starters, Newsom and California Attorney General Rob Bonta have been on a tear in recent years, making affordable housing production one of their major missions with policy and enforcement working hand in hand.

The industry’s already seen this in places such as Huntington Beach, Beverly Hills and La Cañada Flintridge where cities with housing elements unapproved by the state’s Department of Housing & Community Development get swept up in litigation and exposed to builder’s remedy provisions.

Newport Beach Density Pushback

A new question has emerged in the housing tussle between the state and some local governments.

That is, what happens when voters attempt to reject the housing element, the state-mandated long-term housing plans cities must create lest they want to jostle with the attorney general or a builder’s remedy push? Newport Beach is buckling up to find out in what could turn out to be a wild ride.

Residents obtained enough signatures to move a measure onto the ballot next year that would zone for 2,900 new homes instead of the city’s original plans for more than 8,000, as reported by the Voice of OC.

This could place the city in a precarious situation with the state. It also represents a new twist in the state vs. local tug-of-war playing out through housing development. That is, how the state mandate can coexist with zoning or voter-approved measures. Or can it?

Housing a Lynchpin for Mayoral Victory

The housing conversation at the state and local levels comes as a new mayoral hopeful with a history in housing advocacy enters the race in Los Angeles.

Rae Chen Huang is a long-time housing and tenant rights activist who has publicly spoken on the merits of social housing and turning underutilized public land into residences for low- to moderate-income households.

That’s a big part of what’s known of the Democratic Socialists of America member’s public-facing stance.

Huang is deputy director of Housing Now! California, which backed legislation forcing the completion of a social housing study that would offer a long-term strategy for how to boost such supply. Senate Bill 555 became law in 2023, with the study expected to be completed by 2027 and create a framework for as many as 1.2 million to 1.4 million more housing units.

Who’s Poaching Who

In brokerage news, local recruiting’s been quiet the past few months. Chalk it up to a holiday slowdown.

Still, Coldwell Banker Realty made a big splash this week with the announcement that its Beverly Hills office recruited five new agents under newly appointed branch manager Matthew Clayman. That’s a big win for Clayman, who took on the top spot leading the Beverly Hills and Hancock Park offices. He succeeded Coldwell Banker veteran Tom Dunlap in August.

Another two agents also jumped to Coldwell Banker, but declined to be named publicly. The seven combined had production of more than $150 million over the past 12 months.

Those who joined the Beverly Hills office include Severin Braham, Hannah Babitt, Katy Johnson, Mary Swanson and Myles Lewis.

Read More

Q&A: La Cañada Flintridge a poster child for builder’s remedy
Newport Beach voters to determine state-mandated housing plan’s fate
Who is LA mayoral “longshot” Rae Chen Huang to real estate?

Conclusion

In conclusion, California is taking steps to convert underutilized sites into housing, with a focus on affordable housing. The state is working to increase the supply of affordable housing, and developers are being incentivized with a fast-track approval process. However, there are also challenges and controversies, such as the pushback from some local governments and the question of how to balance state mandates with local zoning and voter-approved measures.

FAQs

Q: What is the state of California doing to increase affordable housing?
A: The state is converting underutilized sites into housing, with a focus on affordable housing, and offering developers a fast-track approval process.
Q: What is the issue with Newport Beach’s housing plan?
A: Residents have obtained enough signatures to move a measure onto the ballot that would zone for 2,900 new homes, instead of the city’s original plans for more than 8,000.
Q: Who is Rae Chen Huang and what is her stance on housing?
A: Rae Chen Huang is a long-time housing and tenant rights activist who has publicly spoken on the merits of social housing and turning underutilized public land into residences for low- to moderate-income households.