Housing
The Lookout: New Cal Housing Bills Could Change the Look, Feel of Your Neighborhood
But lawmakers disagree about whether the bills would make housing more affordable or cause a host of other issues for the state’s single-family household neighborhoods that so many California homeowners appreciate.

California, known for its sprawling residential neighborhoods of single-family homes spread out with driveways, front yards and garages, even in urban areas, may soon get an architectural makeover. That’s if two new bills approved by the Legislature and awaiting the governor’s signature are signed into law.
Both Senate Bill (SB) 9 and Senate Bill (SB) 10 are legislative responses to California’s twin crises — the lack of affordable housing and an overall shortage of homes.
But lawmakers disagree about whether the bills would make housing more affordable or cause a host of other issues for the state’s single-family household neighborhoods that so many California homeowners appreciate.
SB 9, authored by California’s Senate President pro Tempore Toni G. Atkins (D- San Diego), would allow homeowners in single-family households to have up to four housing units on their property. SB 10 would allow cities and counties to bypass the usual environmental review process for projects or developments with a maximum of 10 units in urban areas.
“Growing up, my family moved between rentals — some better than others, but none of them ‘ours.’ Even though my mom and dad clocked into honest jobs their whole lives, the idea that the Atkins family could own a home of our own was hardly a goal. It was a far-off fantasy,” said Atkins late last month after the Senate approved SB 9.
“Today, too many hard-working California families are saying the same. With SB 9, we have the chance to change that,” Atkins continued. “This bill would give homeowners the tools to help ease our state’s housing shortage while creating a new source of income in their own backyard. It would allow our communities to welcome new families to the neighborhood and help more folks set foot on the path to buying their first home.”
But, in cities and neighborhoods across the state, there has been strong and vocal opposition to SB 9 and SB 10. Organizations like the League of California Cities claim SB 9 would actually be detrimental to affordable housing without the appropriate safeguards.
“The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions,” the local governance advocacy association wrote in an opposition letter.
“This bill, among other things, would require a proposed housing development containing no more than two residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements,” the letter continued.
However, California Yes In My Backyard (YIMBY), a pro-affordable housing organization, argues that SB 9 is precisely what California residents need, especially following a pandemic.
“California has a severe shortage of middle-income housing, or small (fewer than 10 homes) multi-family housing developments near jobs and transit; the lack of such housing is driving the displacement and severe rent burden of Californians across the state. The problem: it is illegal to build middle-income housing in over 70% of the state,” the organization’s website states.
“SB 9 would legalize this middle-income housing by adopting best practices from housing experts at the University of California Los Angeles. It will also help California respond to historic job loss in the construction sector and a 45% decrease in home construction due to COVID-19,” the statement continues.
There has been significant opposition to SB 10 as well. Many of its critics feel it is a shallow solution to a complex problem.
“While the intent of providing more housing may be good, these bills and approach are highly problematic. It poses a one-size-fits-all solution and a blunt, statewide fix that would outstrip local authority and planning. It also does not recognize the diversity of communities and development statewide, let alone throughout Greater Los Angeles,” the Los Angeles Conservancy wrote in an opposition statement.
Both SB 9 and SB 10 have passed in the State Senate and are now awaiting final approval from Gov. Gavin Newsom, who has until October 10 to sign or veto these bills.
Meanwhile, in the California State Assembly, Assembly Bill (AB) 1199 imposes an excise tax on landlords as a way to disincentivize them from buying foreclosed or under-market value homes in order to make a massive profit from these homes by using them as rental properties.
AB 1199 author Assemblymember Mike Gipson (D-Carson) claims that this bill could help build generational wealth for low-income families.
“First-time homebuyers and working families lack opportunities to own homes and build generational wealth,” Gipson stated.
“AB 1199 corrects the excessive practice of corporations buying up foreclosed or under market value homes in order to profit from increasingly inflated rents. The state would impose an excise tax on large corporations that own and rent out 10 or more properties. The bill would create a fund from the taxes to support first time homebuyer education, down payment assistance programs and rental assistance for low-income families,” he continued.
The Assembly has not yet voted on AB 1199.
California Black Media
California to Roll Back Grant Program That Helps Low- and Middle-Income Residents Build ADUs
The California Housing Finance Agency’s Accessory Dwelling Unit (ADU) Grant Program may receive only $25 million in new funding instead of the $50 million investment lawmakers initially proposed after negotiations with Gov. Newsom. The state had previously allocated $100 million to increase the housing inventory and address the homelessness crisis, but these funds were depleted months ago.

By Joe W. Bowers Jr. and
Edward Henderson
California Black Media
The California Housing Finance Agency’s Accessory Dwelling Unit (ADU) Grant Program may receive only $25 million in new funding instead of the $50 million investment lawmakers initially proposed after negotiations with Gov. Newsom.
The state had previously allocated $100 million to increase the housing inventory and address the homelessness crisis, but these funds were depleted months ago.
Since its inception, the program has provided up to $40,000 toward pre-development and non-recurring closing costs associated with the construction of the ADUs, an innovative, affordable, and effective living option for low-to-middle-income residents.
The predevelopment costs the grants cover include site prep, architectural designs, permits, soil tests, impact, fees property survey and energy reports.
One of the hurdles for ADU construction has been the reluctance of California lenders and major banks to offer ADU loans. Although CALHFA provides a $40,000 grant to qualified homeowners, the overall cost of an ADU can range from $300,000 to more than $400,000.
Funding for the program is in flux because of a disagreement between CalHFA and lawmakers over how to use it.
Lawmakers and Newsom signed a budget bill that would restore the $50 million funding in July only to see another budget bill in August take the money back. Now an amendment will put half of the money back to restart the program this month.
Business
Residential Insurance Prices Increase as Insurers Slow Business in California
Joseph Thomas was surprised to receive a notice from his homeowner’s association (HOA) this spring letting him know that there would be an increase in insurance premiums for him and other condominium owners at The Met in Los Angeles’ San Fernando Valley. The letter stated the increase was due to instability in California’s property insurance market. This left Thomas feeling perplexed.

By McKenzie Jackson
California Black Media
Joseph Thomas was surprised to receive a notice from his homeowner’s association (HOA) this spring letting him know that there would be an increase in insurance premiums for him and other condominium owners at The Met in Los Angeles’ San Fernando Valley.
The letter stated the increase was due to instability in California’s property insurance market. This left Thomas feeling perplexed.
“They said the premium was going up because it was hard to get insurance in California now, and a lot of companies are leaving,” he recalled. “I started Googling because I didn’t believe it. I thought they were robbing us of our money, but I Googled it. It is a thing.”
The withdrawal of large insurance carriers like Allstate and State Farm from California’s insurance market will have a significant impact on claims, at least one claims services provider has told insurance businesses, said Maurice Arnold of Robert Arnold and Company in Oakland.
Remaining carriers must shoulder huge catastrophic risks in the state, which often sees enormous claims from wildfire damage. We can expect insurance carriers to respond by tightening their underwriting and raising premiums. When lots of companies pull out of the market, it puts pressure on exiting companies to try to offset risk with tighter underwriting and increase premiums, Arnold said.
Giant insurance companies are refusing to offer or renew coverage for homes and residential complexes across the state due to the looming threat of wildfires, natural disasters, inflation, and other factors and, as they claim, their ability to get adequate rates to pay for these increased costs.
Since 2020, the state has experienced eight disaster events resulting in overall claims ranging from $20 billion to $50 billion. This has caused an increase in pressure from insurance companies to tighten California’s consumer-friendly policies that have held down rates for years.
California Rental Housing Association (CalRHA) Executive Director Russell Lowery said insurance premium costs have jumped up millions of dollars for property owners in his group.
“With insurers leaving the market that means our members don’t get as competitive of a quote,” he noted.
Lowery said rising insurance prices hit renters’ pockets also.
“Extraordinary increases,” he noted. “The pressure on property owners to pay that cost in the form of higher rent is very real.”
California Insurance Commissioner Ricardo Lara has taken steps to make insurance more affordable for Californians. The steps include expanding FAIR Plan coverage options and requiring insurance companies to acknowledge and reward wildfire safety and mitigation efforts made by property owners. The commissioner is also in ongoing discussions with insurers to address their rate increase requests.
Bay Area
$10 Million Award for Affordable Housing, Transit Access in West Oakland
The City of Oakland has received a Regional Early Action Planning (REAP) 2.0 grant of $10 million to support housing, infrastructure, streetscape, and transit access for Mandela Station in West Oakland. This grant will support the construction of affordable housing adjacent to the West Oakland BART station and improve mobility for new and existing West Oakland residents.

Grant supports housing development, infrastructure, streetscape improvements; follows $2.39 million Prohousing Grant earlier in 2023 |
[Courtesy City of Oakland Public Information Office]
The City of Oakland has received a Regional Early Action Planning (REAP) 2.0 grant of $10 million to support housing, infrastructure, streetscape, and transit access for Mandela Station in West Oakland. This grant will support the construction of affordable housing adjacent to the West Oakland BART station and improve mobility for new and existing West Oakland residents.
“We are committed to creating housing families can afford,” said Oakland Mayor Sheng Thao. “This grant will help us make significant progress in bringing 240 units of affordable housing to West Oakland and I appreciate the hard work of our City team in securing this funding. I’m proud that our recently passed budget also includes a historic investment of over $200 million in affordable housing which we can leverage for future grants as well. Oakland agrees — we need affordable housing now and we’re going to work hard to make that happen.”
Award components include:
– $4.0 million for the Bay Area’s largest planned 100% affordable housing project (240 units) that will focus on the pre-development efforts necessary to complete the construction document planning and building permitting process. This will accelerate the project team’s ability to complete the remaining financing efforts and begin construction.
– $4.0 million in Transit Oriented Development (TOD) infrastructure (sewer main extension) that is required to begin the 100% affordable project as well as an additional 2,705 units of very high-density infill housing (178 additional affordable units), 300,000 square feet of commercial space, and 111,661 square feet of retail space, all adjacent to a BART Station in the heart of the transit system.
– $1.55 million for the City’s Seventh Street Corridor project. This includes connecting the existing and new TOD community with direct access to a high-quality protected bicycle connection between the West Oakland BART Station with the jobs and amenities available in Downtown Oakland.
Furthermore, this project improves pedestrian connection across and along Seventh Street for people walking to their destination or to a transit stop on Seventh Street. Finally, this project will provide transit improvements, including bus boarding islands, upgraded bus shelters, and queue jump lanes.
– $450,000 for equitable transit access by providing funding for prepaid debit cards through Oakland’s Universal Mobility Program for a priority population in the project area.
This program allows recipients to pay for any transit service or shared mobility option, such as bikeshare and e-scooter. By removing financial barriers to transit options, the Universal Mobility Program will provide a positive impact on system-wide ridership across the various transit, micro-mobility, and rail operation services.
This will also serve as a valuable pilot to study ways to boost transit usage.
Together, these investments represent a critical investment in the future of West Oakland as part of a broader strategy to reverse historic disinvestment.
The REAP grant award follows the City’s successful application in early 2023 to secure $2.39 million from the state’s Pro-housing Incentive Pilot Program Grant. This $2.39 million has been committed to support new permanent affordable housing production and leverage additional State resources in summer 2023 funding opportunities. Oakland qualified for this Pro-housing grant when it became the first state designated Pro-housing city in the Bay Area in December 2022.
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