An update to the Bay Area’s long-range regional housing and transportation planning roadmap, Plan Bay Area 2040 (PBA), has been finalized and we’ve got a lot of catching up to do. Since the first plan was approved in 2013, the region has produced just under half of the housing that was called for to keep pace with a healthy, growing economy. The Council argued during the first go-around that the housing targets badly underestimated the region’s need, so it’s likely the gap is even wider based on job and population growth. In addition to creating a massive affordability crisis, the shortfall undercuts the goal of PBA to reduce greenhouse gas emissions from vehicles by forcing residents on longer and longer polluting commutes in search of housing they can afford.
The regional planning agencies responsible for PBA have little authority to create housing themselves, but the Council is working to toughen state laws that compel cities to meet their housing obligations under the plan. Gov. Brown last week signed two bills by Sen. Nancy Skinner and supported by the Council that aim to do this. And, the Council is also working to encourage cities to adopt streamlining measures for granny or in-law units, also known as accessory dwelling units (ADU), under legislation we sponsored last year. Cities that have embraced the ADU streamlining measures have seen a dramatic surge in applications.
California took an important first step today in addressing its massive housing crisis when Gov. Jerry Brown signed a package of legislation aimed at providing new funding, streamlined local approvals and stronger enforcement of existing housing laws. Bay Area Council CEO Jim Wunderman joined Gov. Brown, legislators and housing advocates from around the state at a signing ceremony in San Francisco’s Hunter’s Point for 15 bills that included a handful for which the Council had advocated. SB 2 (Atkins) creates a $75 real estate transaction fee that is estimated to generate $250 million annually for affordable housing and SB 3 (Beall) authorizes a statewide $4 billion bond measure for housing that is expected to appear on the ballot in 2018. In addition, SB 166 (Skinner) and SB 167 (Skinner) add teeth to existing laws requiring cities to approve new housing. Much more remains to be done to open the pipeline of new housing the state so badly needs and the Council is already turning its attention to the next legislative session. With an annual shortfall of about 80,000 housing units on top of an estimated 2 million unit deficit, California has a long way to go before it closes the gap and begins to make a dent in its affordability problem.
Results of a new statewide poll gave added urgency to the Bay Area Council’s efforts in securing Gov. Jerry Brown’s signature on legislation to address California’s epic housing crisis. The survey by UC Berkeley’s Institute of Governmental Studies found that 25 percent of voters are considering leaving California because of skyrocketing rents and home prices fueled by a massive housing shortage. The poll found that 92 percent of Bay Area voters think that housing affordability is a serious problem, exceeding the 84 percent level statewide. Council CEO Jim Wunderman was a featured guest on KQED Forum on Thursday to talk about the Berkeley poll results and the solutions on which the Council is focused.
The Council is urging Gov. Brown to sign SB 2 (Atkins) and SB 3 (Beall), which would authorize a statewide vote in 2018 on a $4 billion bond measure for affordable housing and a $75 real estate transaction fee to support local housing, respectively. The Council also is urging the Governor’s signature on two bills by Sen. Nancy Skinner (SB 166 and SB 167) that add teeth to existing laws requiring cities to approve housing.
Listen to the KQED Forum segment with Jim Wunderman>>
The state legislature late Thursday (Sept. 15) took a first step in addressing California’s epic housing crisis by approving a package of bills aimed at providing new funding for affordable housing and easing regulatory hurdles. Two funding bills the Bay Area Council was supporting—SB 2 (Atkins) and SB 3 (Beall)—won passage along with two other bills—SB 166 (Skinner) and SB 167 (Skinner)—that add teeth to existing laws requiring cities to approve new housing. SB 2 creates a $75 real estate transaction fee that is estimated to generate $250 million annually for affordable housing, while SB 3 authorizes a statewide $4 billion bond measure for housing that is expected to appear on the ballot in 2018. The bills, which still need Gov. Brown’s signature, represent a welcome opening salvo against the state’s massive housing shortage and affordability problem, but much more must be done to close an ongoing housing shortfall of 80,000 units a year. To engage in the Council’s housing policy work, please contact Senior Vice President Matt Regan.
After months of the Bay Area Council’s intense advocacy in Sacramento, a bill that could lead to major transportation improvement projects to ease traffic and transit woes throughout the region passed a critical hurdle in the Assembly Appropriations Committee last week and heads to the Assembly Floor in a few days. SB 595 (Beall) would authorize Regional Measure 3, a nine-county ballot measure asking voters to decide whether to raise tolls on the state-owned bridges and generate $4.2 billion for critical transit investments and congestion relief projects.
The Bay Area Council has been advocating for a comprehensive expenditure plan that would address the biggest challenges in each county and massively enhance BART, ferry, and bus capacity across the region. We applaud the hard work of the Bay Area legislators for crafting a commendable plan that will make transformative investments throughout the region and provide widespread benefit to residents across the nine-county Bay Area. This is our only shot at significantly adding transit capacity and reducing traffic gridlock in the foreseeable future.
With approval on the Assembly Floor next week, the bill would go back to the Senate for a concurrence vote, and then to the Governor’s desk later this month. The passage of SB 595 would set the stage for a region-wide vote in June 2018, which the Council plans to take a lead role in organizing. To learn more about Regional Measure 3 and the Council’s transportation work, contact Policy Director Emily Loper.
The missing middle has become an increasing problem in the Bay Area, with affordable housing production aimed at low and very low income residents and market rate production taking care of higher income residents. This week (Sept. 6) San Francisco Supervisor Katy Tang spoke with the Bay Area Council Housing Committee about her solution to this, a new program called Home-SF. Home-SF is a new density bonus program focused on increasing housing for middle income families. It is estimated to generate about 5,000 new units of housing for middle income families, helping close the gap for the missing middle in San Francisco.
The Housing Committee also heard from Committee Co-Chair Denise Pinkston of TMG Partners regarding the huge uptick in ADU permits across the state now that Bay Area Council sponsored SB 1069 (Wieckowski) has taken effect. San Francisco, San Jose, Oakland, Berkeley, Los Angeles, and Santa Barbara, among others, have experienced a significant upsurge in ADU permits. In addition, the committee learned about the benefits of modular development from new Bay Area Council member Jason Laub of RAD Urban. Modular manufactured housing can reduce both cost and time of building housing by 20%, making it a key cost reduction strategy for the Bay Area Council. To engage with the Bay Area Council Housing Committee, please contact Senior Vice President of Public Policy Matt Regan.
Chinese investment in the U.S. is booming and the Bay Area Council is working to attract as much as possible to our region. Chinese foreign direct investment in the United States reached $45.6 billion in 2016, triple the amount from 2015. Real estate development is one the biggest segments of Chinese investment, with deal volumes reaching a record high of $19.2 billion in 2016, according to a recent article in Forbes that put the Bay Area as the second largest recipient of incoming funds among major metropolitan areas.
Against that backdrop, the Council on Tuesday (Aug. 8) was honored to welcome executives from Agile Property Holdings Ltd., a leading real estate developer in the Chinese market considering expansion to the Bay Area. The discussion, which included executives from member companies Colliers International, Deloitte, Greenberg Traurig, and Hanson Bridgett, centered on the region’s housing need, market opportunities, and real estate challenges. To learn how the Council facilitates inbound business and investment and to capitalize on like business opportunities, please contact Chief of Global Business Development Del Christensen.
The Bay Area’s jobs-housing imbalance is getting worse, adding to the region’s affordability crisis and threatening to undermine the region’s strong economy. An analysis of regional housing and employment data by the Building Industry Association of the Bay Area shows that since 2011 the region has added 531,000 jobs while creating just 124,000 new housing units. This amounts to a ratio of 4.3 jobs per housing unit, a rate well in excess of a healthy balance of 1.5 jobs per housing unit. The Council has been working aggressively to advocate for statewide policy reforms that will encourage more housing production. Gov. Brown recently signed legislation the Council sponsored that will allow for up to 20,000 units of new housing near BART stations. The Council is also working to implement legislation we sponsored last year that has the potential to add hundreds of thousands of affordable granny or in-law units. To engage in the Council’s housing policy work, please contact Senior Vice President Matt Regan.
Legislation the Bay Area Council sponsored that could bring 20,000 units of new housing to the region got Gov. Brown’s signature last Friday (June 21). SB 680 authored by Senator Bob Wieckowski extends the radius within-which BART can pursue transit-oriented development (TOD) projects from ¼ mile from BART stations to ½ mile. The legislation garnered broad support by various groups across the Bay Area, including The Non-Profit Housing Association of Northern California, SPUR, North Bay Leadership Council, SAMCEDA, Transform, among others.
“In the face of a severe housing and affordability crisis, constructing dense housing near main transit hubs will be key to our region’s continued prosperity,” said Jim Wunderman, President and CEO of the Bay Area Council. “SB 680 is a much-needed, common sense solution that uses public lands for public good. It will add an estimated 20,000 new housing units near BART stations, keeping jobs in the Bay Area, reducing commutes and moving our region toward a more sustainable future.”
The Bay Area Council is thrilled to help pass this commonsense solution that will add thousands of units near public transportation. We want to thank Sen. Wieckowski for his leadership on housing. The Council worked with Sen. Wieckowski last year to pass legislation that removes major barriers to creating affordable granny units. To engage in the Council’s housing policy work, please contact Senior Vice President Matt Regan.
MILLBRAE, CA— Bay Area Council President and CEO Jim Wunderman today joined Governor Jerry Brown, Congresswoman Nancy Pelosi, Congresswoman Anna Eshoo, Congresswoman Jackie Speier and other key stakeholders at the Millbrae Caltrain Station for the official groundbreaking ceremony of the Caltrain Electrification Project. The Bay Area Council released the following statement attributable to Jim Wunderman.
“It’s ironic that the region that invents much of the future has struggled with an overcrowded, diesel-powered, 153-year-old rail line running right through its heart – but today that changes. Silicon Valley will soon have a modern, fast and clean rail system that according to our 2012 study, will deliver 9,600 construction and related jobs and generate more than $2 billion in economic activity across America. Our region is not alone dealing with outdated infrastructure and we hope Congress can unite around a large-scale national improvement program this year, making Caltrain Electrification the start of a legacy of new building.”
The Council has long advocated for an electrified Caltrain and helped assemble the original package of federal, state and regional funding for the project. The final push across the finish line came in May when U.S. Secretary of Transportation Elaine Chao approved a final $647 million grant that had been promised to help pay for the project.
Special thanks goes to Senator Dianne Feinstein who worked very hard behind the scenes to achieve this momentous goal.