Category Archive: Transit Oriented Development

  1. California House, Senate Continue Efforts to Increase Supply of Affordable Housing

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    Picking up where they left off at the end of the 2017 legislative session, California lawmakers in both the House and Senate advanced several bills aimed at increasing the supply of affordable housing. These include efforts to modify laws related to the Regional Housing Needs Assessment (RHNA) and Housing Element, override local zoning requirements, and produce accessory dwelling units.

    RHNA/Housing Accountability

    SB 828 Land Use: Housing Element, authored by Sen. Scott Wiener (D-San Francisco), would require the State’s Housing and Community Development Department (HCD) to address the underproduction of housing.  This bill would require cities and counties to meet 125% of their RHNA requirements in their inventories.  Where that is not possible, cities and counties would be required to identify ways in which it will accommodate their RHNA, such as through rezoning. HCD would be required to complete a comprehensive assessment on the unmet needs for each region, and include the results of the assessment in regional allocations for the next housing element cycle. HCD would have to establish a methodology for the comprehensive assessment on unmet need that considers median rent or home prices and, in communities with high rates of income growth, sets a high rate of new housing production for all income levels to ensure equity and stabilize home prices. SB 828 would also prohibit a Council of Government (COG) from underestimating allocations for local jurisdictions based on predicted additional unmet need allocations.  This bill would require the final regional housing need plan to reflect equitable allocations for housing of all income levels, and not demonstrate disparities that promote racial or wealth disparities throughout a region.

    SB 1771 Planning and Zoning: Regional Housing Needs Assessment, authored by Sen. Richard Bloom (D-Santa Monica), would require jurisdictions to adopt long-term plans that address the development of land not only inside their jurisdiction, but in some cases, outside local boundaries as well.  As is currently the law, COGs would be required to create and adopt a “Final Regional Housing Needs Allocation Plan,” but which would now  be required to allocate housing needs according to certain specified objectives, including doing so in an equitable manner by dispersing housing typologies, affordability levels, and housing tenure  (whether owner or rental) across the region. It would also revise many of the current requirements of the RHNA plan.  Plans would be required to further objectives, rather than simply be consistent with them as is currently required.  COGs would be required to include data showing both the number of low-wage jobs within a jurisdiction as well as the number of housing units which are affordable to those workers.  In addition, COGs will be required to project the number of low wage workers and the number of housing units needed to house them during the planning period.   This would be a new focus on existing and projected demand, replacing the previous requirement to respond to housing demand. It would also limit the grounds upon which a jurisdiction could appeal to the COG to these three: the methodology was not informed by survey information submitted by the jurisdiction; the jurisdiction has undergone significant and unforeseen changes; and, the methodology used to calculate the RHNA was in violation of state law.

    AB 3194 Housing Accountability Act: Project Approval, authored by Assemblymember Tom Daly (D-Santa Ana), would prohibit a jurisdiction from disapproving, or placing infeasible conditions upon, a development of very low-income, low-income, or moderate-income housing (including emergency shelters), unless a preponderance of the evidence shows that the development would have a “specific, adverse impact upon the public health or safety.”  The State of California defines “preponderance of the evidence” as evidence that outweighs, not in its quantity but rather in its effect, the evidence of the other side.[1]  In 2017, AB 1515 (Daly) added the requirement for “substantial evidence,” which is defined as “being of ponderable legal significance,” and “which is reasonable in nature, credible, and of solid value.”[2] The proposed requirement for a preponderance of the evidence is a higher standard and could result in a higher number of housing developments being covered by the Housing Accountability Act (HAA). If approved, this bill would impart the protections of the HAA to projects that are both inconsistent with zoning and consistent with the objective general plan standards. Such projects would be deemed approved without having been rezoned.

    Overriding Local Zoning Requirements

    AB 2923 San Francisco Bay Area Rapid Transit District: Transit-Oriented Development, introduced by Assemblymembers David Chiu (D-San Francisco) and Timothy Grayson (D-Concord) and coauthored by Kevin Mullin (D-San Mateo), Richard Bloom (D-Santa Monica), and Phil Ting (D-San Francisco), would require the board of the San Francisco Bay Area Rapid Transit District (BART) to adopt new TOD guidelines for certain BART-owned land.  The new guidelines would establish minimum zoning requirements for land within 1/2 mile of a current or future BART entrance, on contiguous parcels that are at least .25 acres in size.  The bill would also require the board to adopt streamlining measures for TOD projects, and require that projects within these areas include 20 percent affordable housing. The effect of this bill, if approved, could be that jurisdictions where BART stations are located would have little control over what is built in their communities.

    SB 827 Planning and Zoning: Transit-Rich Housing Bonus, authored by Sen. Wiener (D-San Francisco), the bill would have promoted multi-family housing near transit. Among other things, SB 827 would have allowed developers to circumvent zoning in transit areas, and build to height, parking, and density levels that exceed zoning limits. The proposed height limit would have been five stories in areas within a half mile of a transit or subway station, and developers would also have benefited from reduced parking and density restrictions. Advocates of the bill purported it to be a nail in the coffin of residential racial segregation, forcing housing into neighborhoods that were historically zoned low-density in order to perpetuate the segregation of race and class.  The bill failed to pass in the Committee on Transportation and Housing.

    Accessory Dwelling Unit Requirements

    Interior view of an accessory dwelling unitAB 2890, authored by Sen. Ting (D-San Francisco), would require local jurisdictions to consider permit applications for ADUs within 60 days of receipt.  Current law allows jurisdictions up to 120 days to consider such permits.  It would also require that jurisdictions that condition permits on owner-occupancy to not monitor those units more than once per year. This bill would expand the law to allow for ministerial approval of ADUs on both single-family and multifamily lots, and prohibit certain requirements such as lot coverage standards, minimum lot size, and floor area ratio. If passed, HCD would be required to proposed small building standards by 2020, which would provide further oversight into  local ordinances.  If an ordinance is found to be in violation of the law, HCD could additionally notify the Attorney General.

    SB 831 Land Use: Accessory Dwelling Units, introduced by Sen. Wieckowski (D-Fremont) and coauthored by Sen. Toni Atkins (D-San Diego), Sen. Nancy Skinner (D-Berkeley), and Sen. Wiener (D-San Francisco), would require jurisdictions to designate, in their ADU ordinances, any areas where ADUs would be excluded because of certain health and safety concerns.  It would delete the authority to include lot coverage standards.  It would also prohibit jurisdictions from taking the square footage of the proposed ADU into account when determining the allowable FAR or lot coverage. In addition, a permit for the development of an ADU would be automatically approved if not considered within 60 days of its submittal.  It would prohibit requirements to replace off-street parking that is lost due to the development of an ADU. It would also prohibit the use of any other local policy, ordinance, or regulation as a means to inhibit the development of ADUs. This bill would not only prohibit local ordinances from owner-occupancy conditions, but also make void any such existing requirements. It would also prohibit a jurisdiction from considering an ADU as a “new residential use,” for purposes of determining fees.  School fees would be an exception; however, they would be limited to $3,000.

    Artemis Spyridonidis, Senior Associate, covers housing policy issues, including structural solutions to the housing affordability crisis, consolidated plans, housing elements, accessory dwelling unit policy implementation, and regional issues across the state of California. For information about linkage fees and other housing policy issues, contact Artemis Spyridonidis, at artemis@lesardevelopment.com.

    [1] Glage v. Hawes Firearms Co. (1990), 226 Cal.App.3d 314, 325, quoting People v. Miller (1916), 171 Cal. 6149, 652.

    [2] Kuhn v. Department of General Services, (1994) 22 Cal.App.4th 1627, 1633, 29 Cal.Rptr.2d 191; Mohilef v. Janovici, (1996) 51 Cal.App.4th 267, 305, fn. 28, 58 Cal.Rptr.2d 721.

  2. Fruitvale Village Study Highlights TOD Benefits

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    A new study of Oakland’s Fruitvale Village conducted by the UCLA Latino Policy and Politics Initiative showed that transit-oriented development enhanced residents’ socioeconomic well-being without resulting in the displacement of Latino residents. The study highlights how BART worked with the local Unity Council to create a community-driven transit-oriented development plan that resulted in improved education outcomes and higher incomes and home ownership rates as compared to similar communities within the region and statewide. The study provides valuable insight for other jurisdictions planning transit-oriented development projects to address the housing crisis.

  3. Celebrating the 1/3 Point Progress with CASA – The Committee to House the Bay Area

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    Sen. Scott Wiener Speaking to CASA

    CASA is a year-and-a-half long convening of diverse, multi-disciplinary Bay Area leaders to create a regional housing implementation plan that commenced in June 2017 and will wrap up in October 2018.  Led by representatives from local and regional government, business, the social equity community, labor, private and affordable housing development, philanthropy, and finance, CASA is one-third of the way toward developing the plan, which aims to dramatically change the housing production paradigm and enable the Bay Area to meet its housing needs and protect its most vulnerable residents.

    As the CASA facilitator, I have had the opportunity to work closely with the Co-Chairs and Metropolitan Transportation Commission (MTC) leadership to guide the process for both its Steering Committee and Technical Committee. By December, the group had held five Technical Committee meetings and one Steering Committee meeting, and had completed a significant portion of its preliminary work. You can download the meeting agendas to learn more about the group’s work, but here’s a quick recap of where we have been and a forecast on where we are going:

    • June: 50 members of the Steering and Technical Committees shared the impacts of the housing crisis, key obstacles faced by their organizations and constituents, and actions they were taking in response to the lack of affordability and availability of housing.
    • July: Key themes from the June meeting and a literature review on the Bay Area crisis and relevant statewide, national, and international thought leadership were shared.  A work plan strategy map was presented.
    • September: The three Co-Chairs presented preliminary ideas corresponding to our Actions Strategy focusing on housing production, the preservation of affordable housing stock, and the protection of vulnerable residents and communities. We also debuted our governance frameworks and action ideas templates, and received an overview of MTC’s funding sources (new vocabulary for housing and social equity folks!). Using our Gradients of Agreement decision-making system, we scored the protection and production action ideas.
    • October: We scored the last of the three prongs of our work – the preservation ideas, and we reviewed the scoring from the September meeting to determine where we had general agreement and/or lack of consensus.  We also had detailed presentations on distinguishing between gentrification and displacement, understanding the underlying pressures and strategies to strengthen the resilience of communities, and understanding the financial realities of building housing.
    • December: We held our first workshop to begin building the key elements of our regional housing framework, and to gather feedback on our community engagement strategy.  Detailed presentations identified the amount of publicly owned land that could be available for transit-proximate housing development, and we received an update on MTC’s work on its housing actions from its Plan Bay Area 2040.

    2018 will bring continued focus on articulating our framework to ensure that the plan is equitable, inclusive, and impactful, and that it puts the Bay Area on a trajectory to meet the needs of its current and future residents. Please follow our progress as we build out and vet our action ideas through our Technical and Steering Committees, community meetings, and CASA members’ networks. If you are interested in adapting and building upon this process for your region or local community, please reach out to Jennifer at jennifer@lesardevelopment.com.

    With more than 30 years of experience in the real estate development and investment banking industries, Jennifer LeSar brings a diverse background to her work in community development and urban revitalization. Her technical expertise spans from policy and program development to the origination and underwriting of complex investments in equity funds, multi-family portfolios, and historic and low-income tax credit properties utilizing federal and state financing programs.

    For more information about innovative approaches to address our housing crisis, contact Jennifer LeSar, President and CEO, at Jennifer@lesardevelopment.com.

  4. MATCH Program to Fund Affordable Housing Near Transit

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    Los Angeles Metro BusLos Angeles County took a bold step forward in its efforts to preserve affordable housing near transit earlier this month with the launch of the Metro Affordable Transit Connected Housing (MATCH) program. Touted as “new terrain” for transit agencies, the program will provide $75 million for acquisition and predevelopment financing to qualified developers to buy land or existing housing and replace it with affordable housing located near public transit. The fund is expected to produce a net increase of 1,800 units.

    As part of the Los Angeles County Metro Transportation Oriented Communities program, MATCH seeks to provide convenient transit options that connect residents to schools, jobs, healthcare providers, and other amenities with the goal of improving social and health outcomes for residents. To qualify for a MATCH loan, developers must purchase land or housing within a half-mile of rail or bus lines offering peak service every 15 minutes or less.

    “MATCH represents an innovative, multi-sector response to address the growing unaffordability and inequity of opportunity in the Los Angeles region,” said Kimberly Latimer-Nelligan, COO and EVP, Community Investment for the Low Income Investment Fund, the statewide nonprofit selected to serve as the fund administrator. “The goals of the MATCH Fund align directly with the Low Income Investment Fund’s work to stabilize families, boost local economies, and build more resilient communities.”

    The MATCH program was funded with $9 million seed capital from the Los Angeles County Metropolitan Transportation Authority, which was matched with investments by local foundations, including the California Community Foundation, The California Endowment, and the Weingart Foundation. Three national Community Development Financial Institutions– the Enterprise Community Loan Fund, the Local Initiatives Support Corporation, and LIIF – have formed a consortium to manage the program, provide leverage financing, and originate loans.

    For more information, including borrower and project eligibility, visit www.matchfundla.com.

    Liz Tracey-4x5For information about affordable housing and community development financing resources, contact Liz Tracey, Senior Principal, LDC at: liz@lesardevelopment.com.

    Liz Tracey is an expert on affordable housing and community development finance using tools such as the Low Income Housing Tax Credit and New Markets Tax Credits.

  5. Unlocking Land for High-Impact Development

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    Modern apartment buildingThe most recent forecast shows that California needs 1.8 million new homes by 2025 to keep pace with population growth, projected to reach 39 million to 50 million by 2050, yet annually produces fewer than half the homes necessary to meet those needs. As a result, cities and counties throughout the state now face an unprecedented affordable housing crisis that threatens economic growth.

    While new sources of housing financing are part of the solution, many jurisdictions are also taking steps to maximize the development potential of existing land. According to the widely circulated “A Blueprint for Addressing the Global Affordable Housing Challenge” and its California companion report “Closing California’s Housing Gap,” both published by the McKinsey Global Institute, efforts to “unlock land” are the most important measures jurisdictions can take to reduce the costs associated with housing production. This is especially true in California where the growing population and limited availability of buildable parcels makes it imperative to prioritize sites based on their capacity for high-impact development.

    In recent years, many jurisdictions have turned to transit-oriented development to unlock land with existing infrastructure near transit hubs and corridors. Since 1995, the Los Angeles County Metropolitan Transportation Authority has routinely sought opportunities to collaborate with developers to increase transit use by building pedestrian-friendly communities on Metro-owned properties. To date, the agency has completed more than 2,017 housing units, as well as nearly 1.5 million square feet of combined retail and office space, across 18 projects. In 2015, the agency updated its joint development policies to require that 35% of the total housing units be affordable to households earning no more than 60% of the area median income.

    San Diego has also taken steps to develop or repurpose government-owned land. In June 2017, San Diego County Supervisors Dianne Jacob and Ron Roberts announced an affordable housing initiative that included identifying 11 county-owned properties for evaluation to determine whether they can be redeveloped. County officials are currently evaluating these sites to determine the feasibility of different redevelopment options.

    Other jurisdictions are working with private landowners to spur development on underutilized or idle land. Last year, Alameda County passed a general obligation bond to provide $580 million in funding for affordable housing initiatives. One initiative capitalizes on the interest faith-based and community organizations expressed in developing their available land and buildings for affordable housing. To launch the Housing Development Capacity Building Program, the County Board of Supervisors has allocated $750,000 to provide qualifying organizations with the capacity development and training necessary to convert their assets into affordable housing. The County also seeks to leverage its contribution with other resources to expand its services.

    In addition, more communities—including Santa Monica—are adopting inclusionary zoning policies. In July, the Santa Monica City Council voted to require most new developments to set aside up to 30 percent of units for low-income households.

    As local governments seek to resolve the affordable housing crisis, they will need more innovative strategies to spur development by unlocking land. By analyzing how available land is currently used, local governments can determine which locations offer the greatest potential for lower-cost, high-impact housing development.

    To learn more about LDC’s policy services, contact Artemis Spyridonidis, Senior Associate, at artemis@lesardevelopment.com.

    LeSar-Artemis-4x5Artemis Spyridonidis covers housing policy issues, including structural solutions to the housing affordability crisis, consolidated plans, housing elements, accessory dwelling unit policy implementation, and regional issues across the state of California.

  6. New Study on CA Rail System Casts Spotlight on Transit-Oriented Development

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    Passenger train in downtown San DiegoSince the early 20th century, California has forged its identity as a car-based culture, especially in the southern regions of the state. However, concerns about the impact of climate change, commute times, and the costs associated with owning a vehicle have triggered interest in alternatives to the combustion engine as the prime mover of the California economy. These options include enhancing access to one of the largest rail systems in the nation.

    Rail and the California Economy, a recent report published by the University of California, Berkeley, examines the dynamic role passenger and freight rail play in shaping cities and influencing where jobs are located. California has almost 4,000 miles of track owned by Union Pacific and BNSF, with an additional 800 miles operated by short-line regional railroads. This network circulates through our main metropolitan areas (Sacramento, San Francisco, San Jose, Los Angeles, San Diego, and Fresno) and connects coastal communities with those further inland, moving over 38 million passengers to their destinations each year.

    The clustering of people, firms, housing, goods, and services – called “agglomeration” or transit-oriented development – within transportation corridors adds an exciting dimension to housing development. After years of debating the environmentally-friendly concept of “smart growth,” regional planning and transportation agencies now view the underutilized land surrounding transit hubs or stations as fertile sites for increased density and vibrant employment centers.

    One benefit of clustering arises from a public financing tool called “value capture,” which occurs when a transit agency leverages a station’s created value by actively seeking to develop land it owns around that station for housing, retail, and other commercial uses. San Francisco’s new Transbay Terminal is one such project. The Transbay Transit Center Project transforms downtown San Francisco and the San Francisco Bay Area’s regional transportation system by creating a “Grand Central Station of the West,” and has anchored a resurgence of the transit-friendly neighborhood. The approximately $6 billion project replaces the former Transbay Terminal at First and Mission Streets in San Francisco with a modern regional transit hub connecting eight Bay Area counties and the State of California through 11 transit systems: AC Transit, BART, Caltrain, Golden Gate Transit, Greyhound, SF Muni, SamTrans, WestCAT, Amtrak, and future high speed rail from San Francisco to Los Angeles/Anaheim.

    The San Francisco Redevelopment Agency, in collaboration with the Transbay Joint Powers Authority, is developing the Transbay project through competitive bid by private developers. Financing consists of a Transportation Infrastructure Finance and Innovation Act (TIFIA) direct loan of $171 million from the U.S. Department of Transportation. The TIFIA loan is secured by a senior lien on project revenues, which include dedicated tax increment revenues from land sold and developed in the state-owned parcels surrounding the transit center (98% of revenues), and a commitment of passenger facilities charges from the transit center’s initial primary tenant, AC Transit (2% of revenues). This is the first TIFIA loan secured by value capture revenues from real estate taxes on surrounding transit-oriented development.

    The study also features Redwood City as an excellent example of how transit-oriented development can generate the benefits of an agglomeration economy. By implementing a comprehensive, high-density development plan anchored by its Caltrain station, Redwood City has experienced explosive growth in the neighborhood surrounding the train station.

    As a target for value capture, the land surrounding urban rail is a primary focus of new development. However, to overcome the constraints of investing in TOD areas without existing markets, financial incentives are typically required. Joint land use and leveraged funding among transit agencies, cities, and foundations are laying the groundwork for a high level of economic stimulus and return on investment in underutilized neighborhoods.

    For more information about AHSC grants and technical assistance opportunities, please contact Autumn Bernstein, Principal, at autumn@elpadvisors.com.

    LeSar-Autumn-5x7Autumn Bernstein, Principal, Estolano LeSar Perez (ELP) Advisors, is an expert in urban planning, transportation, housing, and environmental policy. She has 15 years of experience as a policy advocate, strategic advisor, non-profit executive, and facilitator in communities across California. Autumn is a native of the San Francisco Bay Area and lives in El Cerrito.

  7. New AHSC Grant Guidelines Approved, ELP Advisors Again Provides Technical Assistance

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    AHSC Sustainable CommunitiesCalifornia is gearing up for Round 3 of the Affordable Housing and Sustainable Communities (AHSC) grant program, and ELP Advisors will once again play a key role in providing technical assistance to select applicants.

    On July 17th, the Strategic Growth Council (SGC) approved new guidelines for the next round of AHSC grantmaking. Earlier this month, the council announced that LDC’s affiliate, Estolano LeSar Perez Advisors, in partnership with Enterprise Community Partners, has once again been chosen to provide technical assistance to qualifying AHSC applicants. We are excited to continue our successful partnership with SGC and to team with Enterprise in providing comprehensive assistance to applicants across California.

    The new AHSC guidelines make some important changes since the last round, many in response to feedback from applicants. We are hopeful that these changes will make the application process less cumbersome, more effective and allow a wider range of communities to be competitive for funding. Here’s a rundown of the major changes:

    Bye bye, concept app: Repeat AHSC applicants will be happy to learn that concept applications are no longer required. They have been replaced with a checklist and an optional consultation with SGC staff. This change should greatly streamline the application process and give applicants a good idea of their competitiveness prior to investing time and money into a detailed application. A host of other, smaller changes are also aimed at streamlining and simplifying the process.

    New housing and anti-displacement requirements: The guidelines strengthen and, in some cases, add new requirements aimed at ensuring AHSC funds flow to communities that are complying with state housing law and protecting vulnerable communities from displacement.

    Changes to include more rural projects: Thanks to changes to the net density requirements, projects across a wider spectrum of rural communities will now be eligible for AHSC.

    Indian Tribes now eligible: Federally-recognized Indian Tribes are now eligible to apply for AHSC grants.

    New threshold criteria: Several scoring elements that were optional last year have become mandatory, known in AHSC lingo as “threshold” requirements. These include certain housing affordability and urban greening elements.

    You can review the new guidelines here.

    With the guidelines adopted and the technical assistance team in place, Round 3 of AHSC grantmaking will get underway this fall. The notice of funding availability (NOFA) will be released in October, applications will be due in January, and awards will be announced in May.

    Even before the NOFA is released, the council will begin the process of selecting applicants to receive free technical assistance from ELP Advisors and Enterprise. No details yet, but we expect there to be an announcement in August. We’ll keep you posted.

    For more information about AHSC grants and technical assistance opportunities, please contact Autumn Bernstein, Principal, at autumn@elpadvisors.com.

    LeSar-Autumn-5x7Autumn Bernstein, Principal, Estolano LeSar Perez (ELP) Advisors, is an expert in urban planning, transportation, housing, and environmental policy. She has 15 years of experience as a policy advocate, strategic advisor, non-profit executive and facilitator in communities across California. Autumn is a native of the San Francisco Bay Area and lives in El Cerrito.

  8. Legislature Passes Cap and Trade, Delays Vote on Affordable Housing Measures

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    After months of intense negotiations, Gov. Jerry Brown and state legislators reached an agreement to extend cap and trade until 2030. On Monday, the Legislature voted to approve two bills that will assure the continuation of the market-based climate program. Legislative leaders also announced that they are postponing a vote on several affordable housing bills until August.

    Cap and Trade

    Gov and State Lawmakers Unveil New Plan to Extend Cap and TradeYesterday’s vote on Assembly Bill 398 (Eduardo Garcia, D-Coachella) will require the California Air Resources Board to establish a firm upper limit for the price of allowances or permits to emit one metric ton of greenhouse gases. The current cap-and-trade system set a floor for prices but did not have a fixed ceiling to prevent prices from rising.

    Assembly Bill 617 (Cristina Garcia, D-Bell Gardens; Eduardo Garcia, and Miguel Santiago, D-Los Angeles) requires stricter air pollution monitoring around industrial facilities and tougher penalties for violating pollution regulations. This benefits communities located near these facilities.

    “Today’s vote on AB 398 to extend Cap and Trade marks an important milestone in the fight against climate change,” said Sen. Toni Atkins (D-San Diego), who previously led efforts to direct cap and trade funding toward transit-oriented affordable housing projects while serving as Speaker of the Assembly. “Without this extension, California would have been in serious danger of failing to meet our ambitious, world-leading climate goals.”

    Passage of these bills represents a second milestone in assuring the future of cap and trade. In June, California’s Supreme Court upheld an appeals court’s approval of the program. Opponents had challenged the program as essentially amounting to an unauthorized tax.

    Affordable Housing

    Senate Bill 2 Leaps Forward in the State AssemblyAmid Monday’s debate on cap and trade, the Governor, Senate President pro Tempore Kevin de León, and Assembly Speaker Anthony Rendon issued a joint statement reaffirming their shared commitment to address California’s housing needs when the Legislature resumes in August.

    “Astronomical housing costs are straining family budgets and stress employees who can’t afford to live where they work. That’s unacceptable, and it’s why the affordable housing crisis has been one of our top priorities. The package of legislation we are all working on will help ensure Californians won’t have to pay an arm and a leg to have a roof over their head.”

    The package of bills under consideration includes the Building Homes and Jobs Act (SB 2), which was authored by Sen. Atkins and 12 co-signers and gained momentum on July 12th following an approval vote in the Assembly Housing and Community Development Committee and a motion that allowed the bill to bypass the Appropriations Committee and move directly to the Assembly Floor.

    The Building Homes and Jobs Act establishes a permanent funding source that will increase California’s supply of affordable homes, create jobs, and spur economic growth. Ongoing revenues would be obtained through fees on real estate document filings, excluding residential and commercial property sales. Fees would not exceed $225 per transaction.

    Modeled on the Building Homes and Jobs Act bill (AB 1335 — Atkins), SB 2 would address the urgent need for affordable housing funding lost through the elimination of Redevelopment Agencies in January 2012. The bill would generate an estimated $200 million annually following implementation in 2018.

    According to the bill’s sponsors, the California Housing Consortium and Housing California, SB 2 will create approximately 29,000 jobs for every $500 million raised, primarily in the construction sector. The bill would also leverage an additional $2.78 billion in federal, local, and private sector investment.

    Other bills that will be under consideration by the Legislature include:

    Senate Bill 3, the Affordable Housing Bond Act of 2018 (Beall, D-San Jose), which would authorize a ballot measure asking voters statewide to approve $3 billion in bond financing for rental housing and existing housing programs in the November 2018 election.

    Senate Bill 35 (Wiener, D-San Francisco), which would eliminate multiple local planning reviews for individual projects that meet certain zoning and affordability standards. Under provisions negotiated with the State Building and Construction Trades Council of California, projects of more than 10 units that qualify for expedited approval would pay union-level wages to construction workers, and developers of some larger projects would have to agree to union-standard work rules or apprenticeship programs.

    Assembly Bill 45, the California School Employee Housing Assistance Grant Program (Thurmond, D-Richmond), which would require the California Housing Finance Agency (CalHFA) to administer a $25 million predevelopment grant and loan fund for the creation of affordable housing for school district employees.

    For more information about innovative approaches to policy and real estate development, contact Jennifer LeSar, President and CEO at Jennifer@lesardevelopment.com.

    Jennifer LeSarWith more than 25 years of experience in the real estate development and investment banking industries, Jennifer LeSar brings a diverse background to her work in community development and urban revitalization. Her technical expertise spans from policy and program development to the origination and underwriting of complex investments in equity funds, multi-family portfolios, and historic and low-income tax credit properties utilizing federal and state financing programs.

  9. Register Now for the 2017 California Economic Summit

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    CES logoRegister for the 2017 California Economic Summit taking place in San Diego on November 2-3, and save $100 on registration through August 31 using LeSar Development Consultants’ special code: LESAR17.

    Join the state’s largest existing coalition of public- and private-sector leaders, coming together for the sixth annual Summit to advance three ambitious goals:

    • Create a unifying triple-bottom-line vision for increasing economic security and upward mobility
    • Expand the strength and diversity of the Summit network to increase its influence on state and local policy decisions
    • Mature the Summit as a formal civic partner with government to advance triple-bottom-line policies

    The Summit highlights progress on The 2017 Roadmap to Shared Prosperity, which offers detailed action plans to improve the workforce pipeline, increase the supply of housing near jobs and transit, and expand regional water management of the state’s vital water supplies.

    register_now

    Jennifer LeSar, CEO of LeSar Development Consultants and Chair of the Summit Host Committee, was among the local leaders who collaborated to bring the Summit to the San Diego region.

    For more information about innovative approaches to policy and real estate development, contact Jennifer LeSar, President and CEO at Jennifer@lesardevelopment.com.

    Jennifer LeSarWith more than 25 years of experience in the real estate development and investment banking industries, Jennifer LeSar brings a diverse background to her work in community development and urban revitalization. Her technical expertise spans from policy and program development to the origination and underwriting of complex investments in equity funds, multi-family portfolios, and historic and low-income tax credit properties utilizing federal and state financing programs.

  10. The Battle to Extend Cap-and-Trade Intensifies

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    Smokestack PlantCalifornia’s Supreme Court has upheld an appeals court’s approval of the greenhouse gas cap-and-trade program. Opponents such as the California Chamber of Commerce, the National Association of Manufacturers and Morning Star Packing Company had challenged the program as essentially amounting to an unauthorized tax.

    However, the issue of whether cap-and-trade has the authority to continue operating past 2020 continues to pose a challenging debate.

    According to the LA Times, after signing the new state budget in June, Gov. Jerry Brown has intensified efforts to reach a deal with lawmakers on a blueprint for California’s future climate change policies. Advisers believe an agreement to extend the cap-and-trade program can be reached in July.

    In a shift from recent quarterly auction results, nearly all of the permits offered by the state in its latest cap-and-trade auction were purchased, generating an estimated $500 million in revenue. Auction proceeds fund environmental, infrastructure and affordable housing programs.

    Three bills were introduced this year to extend the program after its 2020 expiration date. SB 775 (Bob Wieckowski, D-Fremont), would establish a stable structure for the carbon pricing program, eliminate allowance banking, and include a border tax on the import of specific high-GHG intensive products. Under SB 775, revenue from cap-and-trade would raise several billion dollars annually and climb steadily over time, with California consumers receiving a “climate dividend rebate” from quarterly auction revenues. The California Climate Equity Coalition is advocating for “a means-tested dividend that focuses on low-income households most burdened by energy costs as the primary beneficiaries. Dividends to individuals should be balanced by continuing robust public investments that will help Californians transition to a clean energy economy, including clean transportation, affordable housing near transit, transit operations and passes, urban forestry, energy efficiency and solar.”

    The price of a metric ton of carbon dioxide has a rising price floor, currently set at $13.57 per metric ton. SB 775 establishes a floor and ceiling “price collar,” with bidding starting at $20 and $30 per metric ton in 2021, rising to $20 and $40 in 2022, and then increasing each subsequent year by $5 and $10. The ceiling would exceed the price of carbon in most European nations, and would be higher than the $37 tax in Canada starting in 2022. By 2030 the ceiling could eventually surpass Sweden’s carbon tax of around $150 per metric ton, the most expensive in the world. Passage of the new measure will require two-thirds majority approval in both houses of California’s legislature.

    Assembly Bill 378 (Christina Garcia, D-Bell Gardens), which proposed extending cap-and-trade to 2030 and requiring facility-specific air pollutant emissions standards after 2020, failed in the Assembly on June 1st. Another bill, AB 151 (Autumn Burke, D-Inglewood, and Jim Cooper, D-Elk Grove), that would have made cap-and-trade permanent never came up for a vote.

    For more information about innovative approaches to policy and real estate development, contact Jennifer LeSar, President and CEO at Jennifer@lesardevelopment.com.

    Jennifer LeSarWith more than 25 years of experience in the real estate development and investment banking industries, Jennifer LeSar brings a diverse background to her work in community development and urban revitalization. Her technical expertise spans from policy and program development to the origination and underwriting of complex investments in equity funds, multi-family portfolios, and historic and low-income tax credit properties utilizing federal and state financing programs.