California’s governor is pushing for new legislation to address the need for affordable housing throughout the state, but simply wishing it is not all that is needed to create more affordable housing in the state. As things stand, developing affordable housing in California is a very complicated process.
Any sort of housing development requires the developer to jump through an enormous number of hoops and meet many guidelines and standards, which can eat away at profit margins and encourage the cost of any project to skyrocket. While that may be acceptable to some degree in a completely open marketplace, when it comes to creating affordable housing in a state with one of the highest costs of living anywhere in the country, it is a little more difficult.
The governor remains committed to finding a way to create clear paths forward for affordable housing developers, but the issue is far from resolved. As it stands, residents of California spend an average of one-third to one-half their take-home pay on housing, which is difficult to sustain. The governor and the legislature are both hopeful that they can reach fair arrangements that protect the underlying land and natural resources of the state while fostering an environment where developers can find ways to build affordable housing and still remain profitable.
If you are considering a development project, it is always wise to consult with an experienced property development attorney who can help you understand all of the regulations and guidelines you must work within when planning and executing your project, to keep you interests protected.
Source: Sacramento Bee, “Climate change talks provide ‘tension’ for housing deal, California lawmaker says,” Angela Hart, July 13, 2017