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California Lawmaker Tackles Regulatory Barriers to Housing

A regional effort in California focusing on the many regulatory and public policy constraints faced by home builders trying to meet the housing needs of low- and moderate-income families follows an approach that could help spur housing around the country.

Supported by the California Building Industry Association (CBIA), a legislative effort led by California assembly member Darrell Steinberg (D-Sacramento) would ask communities in the six-county Sacramento region to establish their own affordable standards for new homes and apartments.

Among the regulatory barriers that need to be removed:

• An inadequate supply of land designated for residential use
• Limitations on housing densities
• Excessive municipal fees for a variety of services
• Arbitrary growth limits

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These and other barriers, along with the high demand for housing in the region, helped drive up the cost of Sacramento’s new homes by 13% in 2002 on the heels of a 10% climb in 2001, according to local housing analysts. A serious shortage in available lots resulting from the area’s lengthy approval process for new housing development is adding to cost pressures on housing construction.

According to the Sacramento Business Journal, one major builder in the region is now paying $85,000 a lot, up from $50,000 a lot two years ago — a 70% jump.

Richard Lyon, senior legislative advocate for CBIA, cited recent findings of the Sacramento Regional Research Institute that home building is a $40 billion a year industry statewide, generating 359,000 jobs. In Sacramento alone, new residential construction generates more than $4 billion a year in economic activity and employment for 38,000 workers.

For more information, go to the CBIA Web site.
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