Housing Crisis in California: Municipalities Face New Rules and Financial Constraints
Municipalities in California are facing a double-edged challenge: building more housing while navigating complex regulations. Attorney General Rob Bonta has announced that his office will be empowered to seek civil penalties starting from the date a housing law violation begins, rather than waiting for a judge’s ruling. This new authority aims to strengthen enforcement and encourage municipalities to comply with state housing laws more diligently.
Senate Bill 1037, a measure supported by Attorney General Bonta, addresses the statewide housing shortage crisis by giving his office enhanced civil penalty authority. This change in legislation is expected to serve as a powerful disincentive for local governments to delay or refuse actions needed to promote and facilitate affordable housing development. The bill was authored by Senator Scott Wiener and passed through both the Senate and Assembly before being reviewed by Governor Gavin Newsom.
“Local governments have minimal incentive to comply with existing housing laws due to the current system where the state must file a lawsuit to enforce compliance,” said Attorney General Bonta. “By allowing us to seek penalties from the date of the violation, we can more effectively ensure that affordable housing projects are not improperly denied.”
One notable example of how this new authority might play out is the case of the City of Elk Grove. The city was initially found to be in violation of Government Code ยง 69513.4 for failing to meet regional housing need allocation targets and not using an objective process when denying housing projects. Although Elk Grove eventually reached a settlement with the Oak Rose Apartments housing project, Attorney General Bonta pursued a lawsuit due to the city’s unlawful basis for denying the project, which had caused delays and unnecessary legal fees for taxpayers.
Elk Grove’s settlement required the city to pay 0,000 in attorneys’ fees and costs, subject it to reporting requirements, and identify an additional location for low-income housing development. This outcome highlights the need for municipalities to comply proactively with state housing laws to avoid costly legal battles.
The creation of the Housing Justice Team by Attorney General Bonta in 2021 underscores his commitment to addressing California’s housing crisis. The team has been involved in various initiatives, including filing lawsuits against cities for failing to approve housing proposals and securing settlements that allow for the development of thousands of new homes, including those for low- and very low-income households.
Despite these efforts, the main obstacle remains the financial constraints faced by municipalities. With the escalating costs of land acquisition, construction, and regulatory compliance, it can be challenging for cities to allocate funds towards affordable housing projects. This financial burden necessitates innovative solutions such as public-private partnerships or leveraging federal funds to support affordable housing initiatives.
- Key Points:**
– Senate Bill 1037 empowers Attorney General Rob Bonta to seek civil penalties from the date of housing law violations.
– The bill aims to strengthen enforcement and encourage municipalities to comply with state housing laws.
– The Housing Justice Team has been instrumental in advancing housing access, affordability, and equity in California.
– Municipalities face financial constraints in building affordable housing, despite legislative efforts.