Eye on the State: Housing crisis tied to income inequality

Op-ed By Peter Cohen : sfexaminer – excerpt

Here on our San Francisco island, struggles over affordable housing and land-use policy have for decades absorbed much collective energy. Now, beyond our shores, there is a statewide “housing crisis,” and ideas about how to “solve” it are flying around the Capitol. Eye on the State will examine the local implications of proposals brewing in the Capitol from the perspective of community, housing, labor and environmental advocates representing everyday people.

To start, let’s get some clarity on the problem: California’s “housing crisis” is, at heart, an affordable housing crisis. Yes, housing production plummeted statewide after the 2008 financial crisis and has yet to recover. But the core question about the need for increased housing supply is: “supply for whom?”…

Let’s also be clear that this affordability problem is as much related to income inequality as simply affordable housing “production.” While the dramatic rise of the tech sector with its high paying jobs is widely reported, less talked about is the up to six lower paying support and service jobs created for every tech job, driving up the need for low- and moderate-priced housing. Yet the reality is that the real estate market tends to only cater to the top-end earners…

Solving the housing affordability crisis is not simple or easy. The California legislature has tried a variety of bills over the last three years, from protecting tenants, to strengthening “inclusionary” housing law and securing permanent state funding for affordable housing. But heavyweight interests, namely the realtors, the apartment association and the building industry, have fought these solutions tooth and nail.

Instead, the real estate industry is pushing the concept of development approvals “by right” — the idea that if local review processes are eliminated or “streamlined” then market-rate development will happen faster, more bountifully and with lower costs, all of which might result in more affordability for everyday Californians, everywhere. For a city like San Francisco where development is blazing and approvals are flipped out like pancakes at the Planning Commission, stripping away local public review for market-rate development is a power grab putting developers’ “right” to expect development approvals over the city and community’s “right” to push for more affordability or better environmental or labor standards in new development. Last summer Governor Brown ran a by-right development proposal up the flagpole, and it was blasted by a statewide array of community, housing, labor and environmental organizations. And this year new by-right bills are already being introduced again in the legislature.

Eye on The State is a monthly report from San Franciscans for Community Planning and will follow this new round of by-right bills and other proposed housing bills over the next six months making their way through the 2017 state legislative session…(more)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s