By far the most attention in this fall’s state legislative session went to Gov. Gavin Newsom’s plan for a special redistricting election early in November to counteract a Texas move aiming to convert Democratic House seats there into Republican ones.
But another new law just signed by Newsom will eventually prove far more consequential for the future of California cities.
It’s called SB 79 and once it plays out, will leave many California skylines altered in the direction of population-dense high-rise buildings.
Yes, multi-unit apartment construction is down statewide this year from last year’s figures by about 20 percent, making 2024 building look like it may have been on steroids. The drop comes largely because new apartments today typically need $4,000-$5,000 monthly rent just to break even.
But SB 79 has the long-term potential to change things in the name of housing density that might help solve the state’s shortage. The problem is that it probably won’t do that soon, because the vast majority (about 70 percent) of units being built are to be rented or sold at market rates, rather than seeking occupancy as subsidized affordable housing. Given that well over half of all California renters pay upwards of 30 percent of income for housing, relatively few can afford what are called market rates. So thousands of units built in the last three years now lie vacant, while shortages persist elsewhere.
Here’s what SB 79 sponsor Scott Wiener, a Democratic San Francisco state senator, aims to do: Create a series of mini-downtowns near major transit stops with up to nine-story buildings gradually dropping off in all directions into two-and-three story construction that would often stretch into single-family areas nearby.
Because of resistance from rural lawmakers, the upzoning near transit hubs will only apply in eight urban counties. When big changes come, they will be in Los Angeles, Orange, San Diego, Santa Clara, Alameda, San Francisco, San Mateo and Sacramento counties.
Height limits will depend on just how much bus and light rail traffic a stop handles. But for the busiest stops (designated as “Tier 1”), no local government can limit heights to less than 75 feet for buildings within a quarter-mile of the stop.
No one knows how many of these buildings will actually rise over the next few years. If developers doubt they can make profits off market-rate units mixed with a lesser number of affordable ones, they won’t build very much. Many have such qualms due to the pricing problem. So the trouble with much new construction in California is that most California renters can’t afford to live in it.
Two places whose nature this law won’t change soon are Altadena and the Pacific Palisades district of Los Angeles, both decimated in last January’s firestorms. Unless transit agencies run major new routes through them, they will be exempt from the top heights. There are no such plans today.
Then there’s the matter of pricing out many who now live near transit stops. As a general rule, these immediate areas are less attractive and less desirable than nearby single-family zones, so rents and prices are lower there. Tear down existing housing and replace it with more modern and expansive units, and current residents could be priced out.
But when Democratic Assembly member Rick Zbur of West Los Angeles argued SB 79 would be destructive for existing lower-cost neighborhoods, he was laughed off, while the bill passed the state Senate with applause from most legislators present.
Also ignored were complaints that SB 79 removes any authority many existing homeowners have over their surroundings.
These kinds of reasons were behind the 8-5 vote by which the Los Angeles city council voted to oppose the measure. The council called for Los Angeles to be exempted because it already has a state-approved housing plan, with thousands of units underway.
But labor unions backed AB 79 and that was pretty much all the Legislature needed as most Democratic legislators get a big slice of their campaign money from organized labor.
The upshot is that SB 79 will solve few immediate housing problems, while not helping the many Californians who will continue to find new housing priced beyond their means.
Email Thomas Elias at [email protected]. His book, “The Burzynski Breakthrough, The Most Promising Cancer Treatment and the Government’s Campaign to Squelch It,” is now available in a soft cover fourth edition. For more Elias columns, visit www.californiafocus.net
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