Bay Area Council Blog: Housing and Sustainable Development Archive

affordable housing

LEGISLATURE TAKES FIRST STEP IN ADDRESSING HOUSING CRISIS

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.

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MAJOR TRANSPORTATION FUNDING MEASURE CLEARS CRITICAL HURDLE

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.

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SUPERVISOR TANG TALKS NEW LOCAL DENSITY PROGRAM FOR MISSING MIDDLE

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.

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WORKING TO CAPTURE BIGGER SHARE OF CHINESE INVESTMENT

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.

affordable housing

BAY AREA JOBS-HOUSING IMBALANCE GROWS

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.

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Council Scores Another Housing Win with New TOD Law

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.

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Statement: Caltrain Electrification Groundbreaking

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.

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Bay Area Balance: Preserving Open Space, Addressing Housing Affordability

Failure to produce housing in the Bay Area’s urban core and near transit represents a serious threat to the region’s open space, according to a new study released yesterday by the Bay Area Council Economic Institute that makes the economic case for preserving natural and working lands and identifies opportunities for responsible development in the region.

Despite the vast opportunity and need – let alone a requirement by law to help meet California’s ambitious GHG reduction targets – the Bay Area has made glacial progress realizing only 57% of the full potential for infill housing development of its urban core. Inability to build housing in the region’s core is forcing development further away from job centers, jeopardizing valuable open space and undermining state climate change goals. The analysis estimates the Bay Area greenbelt’s value to be as high as $14 billion per year – with direct and indirect benefits stemming from food, recreation, clean air, natural resources and protection against sea level rise.

“Building more housing and protecting open space are not mutually exclusive,” says Bay Area Council Economic Institute President Micah Weinberg. “We need to develop responsibly and actually fulfill state-mandated requirements to build within Priority Development Areas, meeting transit-oriented, infill housing goals. Smart growth will spare our open space and keep the Bay Area economically resilient, sustainable and equitable.”

Read Bay Area Balance: Preserving Open Space, Addressing Housing Affordability>>

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Council Hails Key Vote on Bill to Address Bay Area’s Traffic, Commute Crisis

SAN FRANCISCO—Following weeks of intensive advocacy in the Bay Area and Sacramento, the Bay Area Council today hailed a pivotal vote by the Assembly Transportation Committee on a bill that could lead to $4.2 billion in new funding to help ease the Bay Area’s traffic and commuter nightmare. The bill—SB 595 authored by state Sen. Jim Beall—would authorize a regional, nine-county ballot measure in June 2018 for a $3 toll increase on state-run bridges in the Bay Area that a recent poll found was supported by 56 percent of voters.

“We’re one step closer to taking a big leap forward in addressing the region’s transportation and traffic crisis,” said Jim Wunderman, President and CEO of the Bay Area Council. “With the funding that a regional toll increase would generate we can make important investments to expand mass transit like BART, Caltrain and ferries, ease congestion on traffic-clogged freeways and address the number one frustration plaguing Bay Area commuters. We applaud the Assembly Transportation Committee under the leadership of Chair Jim Frazier for working to create a balanced plan that makes meaningful improvements to the region’s beleaguered transportation system.”

With the Committee’s approval, the bill now moves to the Assembly Appropriations Committee for a vote and, with approval, to the Assembly floor later this summer for final approval before heading to the Governor’s desk for his signature. Passage is expected. The passage of SB 595 would set the stage for a region-wide vote in June 2018, which the Council would play a leading role in organizing. Voters have approved two previous measures.

The Council provided key testimony in support of the legislation at today’s hearing and has worked closely over the past few months with Bay Area legislators and many other stakeholders to shape the spending plan included in SB 595.

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Council-backed Housing Bill Heads to Governor’s Desk

The Bay Area Council today (July 6) cheered the passage by the California Legislature of a bill by state Sen. Bob Wieckowski (Fremont) that clears the way for the construction of up to 20,000 new housing units near BART stations. Introduced at the Council’s request, the bill would extend from a quarter mile to a half mile the distance at which BART can engage in transit-oriented housing developments on land it controls. BART estimates that the change could result in 20,000 units of new housing, including 7,000 designated as affordable, and reduce carbon emissions by 680,000 pounds daily. The bill now heads to Gov. Brown’s desk, where the Council will be advocating for his signature.

“Building new housing near mass transit is a no brainer,” said Jim Wunderman, President and CEO of the Bay Area Council. “We are facing a massive housing shortage and affordability crisis and this bill smartly leverages public land to serve the public good. Putting more housing near BART will keep jobs and workers in the Bay Area, reduce commutes and cut greenhouse gas emissions. We applaud Sen. Wieckowski for his leadership in authoring this bill and we encourage Gov. Brown to sign it.”