California Governor Gavin Newsom signed two bills to loosen the grip of the state’s environmental restrictions in an effort to jumpstart housing construction amidst an ongoing housing crisis. Knewz.com has learned that the new housing legislation rolls back portions of the California Environmental Quality Act (CEQA), enabling certain housing projects to bypass the landmark environmental law.
It is worth noting that critics have long argued that CEQA has been exploited by local opponents to obstruct developments they personally opposed, often under the guise of environmental concerns.
Newsom Signs Two Landmark Bills to Change California Housing
Governor Newsom signed two significant pieces of legislation, namely, Assembly Bill 130, introduced by Assemblymember Buffy Wicks, and Senate Bill 131, introduced by Senator Scott Wiener. Assembly Bill 130 removes CEQA review requirements for the majority of urban housing developments, except for taller buildings, i.e., those exceeding 85 feet, and affordable housing projects, which must still meet prevailing wage standards for construction labor.
Senate Bill 131 expands CEQA exemptions further, simplifying and accelerating the approval process not only for housing but also for a variety of nonresidential developments, including facilities like childcare centers, healthcare clinics and advanced manufacturing sites. During a press conference, the California Governor said about the bills, “This is so much bigger in many ways than the issue itself. It is about the reputation of not just Sacramento and the legislative leadership and executive leadership, but the reputation of the state of California.”
‘A Bold Move Forward’
Senator Wiener, who introduced Senate Bill 131, which further expanded the CEQA exemptions, said in a press release, “These new CEQA reforms are a bold step forward toward tackling the root causes of California’s affordability crisis. The high costs devastating our communities stem directly from our extreme shortage of housing, child care, affordable healthcare, and so many of the other things families need to thrive… These bills get red tape and major process hurdles out of the way, allowing us to finally start addressing these shortages and securing an affordable California and a brighter future.”
Many Are ‘Thrilled’ About the Changes The New Bills Will Bring
The new bills passed by Gov. Newsom are an aggressive effort to pull the state out of the crisis by weakening CEQA restrictions. According to reports, many are thrilled about the changes that the new bills have promised. For instance, Southern California land-use attorney Dave Rand said the bills provide “clear, concise, and straightforward CEQA exemptions,” predicting that “several projects that have been waiting for this day can now move forward.” While the CEQA restrictions have now been loosened, it is worth noting that the other factors affecting the housing crisis in California are still very much present.
The California Housing Crisis
California is facing an unprecedented housing crisis driven by a severe supply-demand imbalance, regulatory hurdles and escalating costs. According to reports, the state needs approximately 3.5 million new homes by 2025 to close the housing gap, but is producing just 85,000 to 110,000 units annually…