Starting in 2024, California homeowners will have the opportunity to sell the auxiliary dwelling unit (ADU), commonly known as the “granny unit,” in their backyard. Simultaneously, religious institutions will be allowed to construct housing on their land, and developers can add more homes along the coast where it was previously prohibited. These sweeping initiatives were part of the more than 50 housing bills signed by Gov. Gavin Newsom to alleviate the state’s severe housing shortage and protect tenants from evictions. The support for these housing bills came from labor interests and housing advocates who united to overcome resistance from local governments that would lose control over housing approvals.
In his statement, Gov. Newsom emphasized the necessity of building more affordable housing in California to address the ongoing crisis. The legislation aims to not only support tenants but also hold cities accountable for planning and permitting their fair share of housing. Despite prior legislation, the state has fallen behind on its housing production goals, with many localities impeding progress. Newsom has taken a more aggressive stance against “not in my backyard” politics and has allocated billions towards affordable housing production while enforcing state housing laws with the assistance of the attorney general.
Senator Scott Wiener, a prominent figure on housing issues, played a significant role in advancing these efforts. Wiener authored two major bills during this year’s session, SB 4 and SB 423, which signal an end to the era of rejecting housing initiatives. The legislation extends SB 35, a law that streamlines the approval process for developers constructing multifamily housing in cities that lag behind their state-mandated housing goals. This extension allows for an additional ten years of expedited approval, effectively reducing costs and enabling timely delivery of housing.
SB 423 also permits construction in specific coastal areas previously exempted from the 2017 law. Initially opposed by environmental groups and coastal communities concerned about potential flooding and rising sea levels, the California Coastal Commission dropped its opposition after clarification from Wiener that environmentally sensitive and hazardous areas would not be impacted. Developers utilizing this streamlined process will be required to pay prevailing union wages—a provision supported by the California Conference of Carpenters, a co-sponsor of the bill. However, some developers argue that this provision raises construction costs and limits their ability to benefit from the law.
Wiener’s SB 4, also known as “Yes in God’s Backyard” or YIGBY, rezones land owned by religious organizations and nonprofit colleges to allow for the construction of affordable housing. This legislation, in its third attempt, opens up approximately 171,000 acres of land across the state for affordable housing. It received support from various religious and nonprofit organizations eager to contribute to resolving the homelessness crisis.
Moreover, there has been significant growth in the construction of ADUs since 2016 and 2017 when state laws streamlined the permitting process. These ADUs, also referred to as accessory dwelling units or “granny units,” account for nearly one in five newly built housing units in California. A new bill, AB 1033, allows property owners to sell these dwelling units separately from their homes, enabling more rental units and affordable homeownership opportunities.
Furthermore, a law drafted in response to a lawsuit filed against a UC Berkeley housing project at People’s Park exempts noise generated by residents of a residential project as an environmental impact under the California Environmental Quality Act (CEQA). The bill, AB 1307, authored by Assemblymember Buffy Wicks, aims to establish over 50 years of CEQA precedent and reinforces the notion that people should not be considered pollution. Although the case still awaits a ruling from the state Supreme Court, this law challenges the appeals court ruling from February.
Lastly, in a victory for renters, Gov. Newsom signed AB 12, which limits landlords to charging no more than a month’s rent for security deposits, starting in June 2024. Currently, landlords can charge up to two months’ rent for a deposit, or three months for furnished properties. Advocates for this legislation argue that exorbitant security deposits create significant barriers for Californians in finding affordable and accessible housing.
By enacting these comprehensive housing bills, California seeks to address its housing crisis and promote more affordable and accessible housing options for its residents.
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