03/04/2022
We here at Red Brick have made a substantial investment in developing our Construction Risk Management practice for the multi-housing markets.
We saw this coming 5 years ago and at this point, we are providing consulting services on over 10,000 housing units being constructed all across the west (and have another 5,000 in the pipeline).
We only see this market getting larger over the next decade.
Our services help the project owners, investors, and contractors figure out how to build complex construction to meet the pro-forma timelines as well as manage the chaos of this crazy economy.
So thankful that we saw this coming...
Sacramento housing policy is setting off flashing red lights across cities right now. You need to be aware of how this could change your community.
As a matter of policy, decisions ought to be made at the level closest to those effected. In a recent article, I was quoted saying: “When a new development is contemplated in or around a neighborhood, residents naturally expect that they can speak to their local city council … A mayor is a whole lot easier to get on the phone than the governor. Cities should have an overriding say on what happens in their borders.”
Instead, Sacramento has declared that lack of housing supply is a statewide concern and is passing legislation overriding local land use decisions for cities throughout the state.
Plus, an administrative agency called “Housing &Community Development” (HCD) has the power to dictate that regions plan for a certain number of units. These regional governments then dictate to cities how many housing units they plan for the next 8 years.
Every city has to have a “General Plan” primarily for land use. One element of the General Plan is a “Housing Element.” So, every 8 years, a city has to submit a new housing element to HCD for review and certification that the city complied with the dictated number of housing units.
In this coming cycle, HCD has dictated MASSIVE numbers of housing units. NB must plan for 4845 new units; Costa Mesa (11,760), HB (13,368), Irvine (23,610), etc.
If HCD refuses to certify an element (it has only approved 7 of 197 so far), then new legislation requires that the city change its entire zoning code by October … of this year. That’s typically a multi-year process.
And HCD just this past week rejected Los Angeles’ element. LA must now rezone to accommodate 250,000+ housing units by mid-October. Failure means lost access to housing grants and subjects a city to substantial state enforcement. For example, CA’s Attorney General can sue noncompliant cities, request to take over a city’s planning department, and simply start issuing permits.
Arrogance and tyranny are at our doorstep. Back your city council if we have to fight.
(Thanks to for today’s pic!)
Resources:
· Good twitter thread discussing LA’s element rejection: https://mobile.twitter.com/cselmendorf/status/1496762637455028229
· LA Times “L.A. must add more than 250,000 homes to zoning plan by October, state rules” https://www.latimes.com/homeless-housing/story/2022-02-24/la-needs-to-rezone-for-a-lot-more-housing
· Voice of OC “New Housing Plans Pit OC Cities Against Sacramento Over State Mandated Housing Goals” https://voiceofoc.org/2022/02/new-housing-plans-pit-oc-cities-against-sacramento-over-state-mandated-housing-goals/
· SCAG’s allocations: https://scag.ca.gov/sites/main/files/file-attachments/6th-cycle-rhna-proposed-final-allocation-plan.pdf?1614911196
· Statewide Housing Plan - https://statewide-housing-plan-cahcd.hub.arcgis.com/