“In a truly rare turn of events, California’s successful approach to legalizing more types of housing is serving as inspiration for reforms elsewhere in the country.
Over the past several years, lawmakers in the Golden State have passed a suite of bills that make it much easier for homeowners to build accessory dwelling units (ADUs), sometimes called granny flats or in-law suites, on their property, while also making it harder for local governments to stop such construction.
It’s proven to be one of the few YIMBY (yes, in my backyard)-inspired zoning reforms that has actually led to more housing being built. Now other states and cities with their own affordability crunches are passing or considering their own ADU deregulations.
Last week, New York Gov. Kathy Hochul, a Democrat, released her 200-page State of the State legislative agenda. Among other things, it took a swipe at local rules that prevent homeowners from turning their garage or attic into a new housing unit.
ADUs “can provide an affordable multi-generational housing option that helps families live closer together,” reads the State of the State book. “Current land use restrictions prevent homeowners in some communities from building ADUs.”
The governor’s agenda says she’ll propose legislation that would require localities to allow at least one ADU on owner-occupied residential lots. This legislation, per the agenda, would also prevent localities from adopting rules that legalize ADUs on paper, but prevent their construction in practice.
That reflects a lesson learned from California’s ADU experience, where state laws allowing homeowners to build a backyard apartment have technically been on the books since the 1980s.
For decades, however, cities were able to stop them from being built by imposing infeasible requirements that they come with off-street parking, be a minimum size, or receive special, discretionary permits in order to be built.
It took the passage of several additional bills between 2016 and 2019 limiting what localities could require of ADUs, and then several lawsuits to actually enforce those new rules, to really kick off new ADU construction.
The results have been pretty amazing so far.”
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“To be sure, neither California’s nor New York’s high housing costs are going to be completely solved by more granny flats. But these reforms are an important piece of the puzzle.”
“Complicated local rules, understaffed city departments and slow communication with state regulators have made starting a weed business in California a protracted and risky ordeal. Red tape and paralyzing legal battles are stunting the market’s growth, leaving aspiring entrepreneurs in cities such as Los Angeles, Pasadena and Fresno waiting months or even years for permission to open, often while leasing empty storefronts.”
“the Los Angeles Times published an excellent editorial on Los Angeles County’s continued and outrageous mistreatment of the city’s “iconic” street-food vendors.
The editorial centers on the county’s failure to implement California’s Safe Sidewalk Vending Act. The much-touted, statewide law, which I touched on after then-Gov. Jerry Brown signed it into law in September 2018, was supposed to decriminalize and legalize street vending for the estimated 10,000 underground food vendors in Los Angeles County—and others across the state. As the Times editors detail, that hasn’t happened in Los Angeles.
“Street vending may be legal in California, but for the vendors selling sliced fruit, tacos and other food items it’s nearly impossible to get a permit to operate without fear of penalty, particularly in Los Angeles County,” reads the lede. They blame “state and county public health regulations for selling food from a street cart [that] remain so complicated, impractical and expensive that the vast majority of vendors have not—and cannot—get permitted.”
Hence, years after the law was passed, L.A. County has only issued permits to around two-percent of the underground vendors who sell there. One of the most onerous requirements to obtain a permit, the Times explains, is the rule that vendors must spend thousands of dollars to buy a needlessly fancy food cart that features “four sink compartments, multiple water tanks for washing cookware and hands, and mechanical exhaust ventilation… which is just not practical for vendors who earn $15,000 a year, on average.””
“the U.S. Department of Labor has denied California $12 billion in transit funding, including grants from the recently signed infrastructure bill. The reason? A 1964 federal law requires the labor department to certify that the state agencies seeking any mass-transit grants are “protecting the interests of any affected employees,” The Fresno Bee reported.
So, the Biden administration is claiming that California—the state that provides its public employees with unparalleled pay and pension benefits, and provides collective-bargaining rights unheard of anywhere else—is being mean to its “affected” public employees because the state passed a 2013 law, authored by Democrats, that infinitesimally reined in pension benefits.
As SFist summarized, “Biden is withholding giant amounts of federal money from California public transit because the state’s public-employee pension system is apparently not paying people enough.””
“With a stroke of his pen, Gov. Gavin Newsom has officially ended the over 100-year scourge of single-family-only zoning in California.
Single-family-only zoning laws make it illegal to build anything but a single-family home on a particular lot of land. Now (with small exceptions like for fire-prone areas) it is also legal to build duplexes.”
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“While overhauling single-family-only zoning might sound revolutionary, the bills are gentle attempts at increasing density: legalizing duplexes and quadplexes and making it easier to build small apartment buildings that provide up to 10 homes. This doesn’t mean single-family homes are outlawed or can no longer be built, but it provides homeowners the option to convert their homes into duplexes or sell their homes to people who want to do so. Before now, it was illegal for someone to convert their home to a duplex on a lot zoned for single-family zoning. Not anymore.
This isn’t a panacea for housing production. UC Berkeley’s Terner Center for Housing Innovation found that SB 9 (the bill that legalizes duplexes) will “modestly accelerate the addition of new units relative to the status quo.” Other laws that restrict the building of new and more affordable homes are still in effect — in particular, local laws around minimum lot sizes will continue to make it illegal to turn single-family homes into duplexes if the existing lot is too small to subdivide while still adhering to the size regulations.
However, the Terner Center finds that “approximately 700,000 new, market-feasible homes would be enabled under SB 9.” That’s a lot! But because many people won’t want to sell their homes or subdivide them themselves, “only a share of that potential is likely to be developed, particularly in the near term. … As such, while important, the new units unlocked by SB 9 would represent a fraction of the overall supply needed to fully address the state’s housing shortage.””
“There are several key ingredients needed for wildfires. They need favorable weather, namely dry and windy conditions. They need fuel. And they need an ignition source.
The California Department of Forestry and Fire Protection said that they are still investigating the origins of most of the blazes underway. But other factors this year stacked the deck in favor of massive conflagrations.
California and much of the western US are in the midst of a years-long drought. With limited moisture, plants dry out and turn into kindling. Ordinarily, vegetation at higher altitudes would still hang onto some moisture and act as a barrier to wildfires in places like the Sierra Nevada. However, the severity of the drought has caused even this greenery to turn yellow and gray.”
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“human activity has made wildfires worse at every step. Climate change caused by burning fossil fuels is increasing the aridity of western forests and increasing the frequency and severity of extreme heat events.
People are also building closer to wildland areas. That means that when fires do occur, they cause more damage to homes and businesses. That proximity also means that humans are more likely to spark new infernos. The vast majority of wildfires are ignited by people, up to 84 percent, whether through errant sparks, downed power lines, or arson.
And for hundreds of years, people have suppressed naturally occurring fires. European settlers also halted cultural burning practices from the Indigenous people of the region. Stopping these smaller fires has allowed forests, grasslands, and chaparral to grow much denser than they would otherwise. Paradoxically, that means more fuel is available to burn when fires do occur, causing blazes to spread farther and faster.”
“some states legalized it, hoping to put an end to the black market. But legalization hasn’t ended the violence.
Why? Because many states impose so many unnecessary rules.
California is one of the worst.
“The illicit market is approximately two to three times the size of the legal market,” says cannabis industry lawyer Tom Howard in my new video.
Illegal sales thrive in California because politicians make distribution pointlessly difficult.
Howard advises clients who want to open a dispensary, “You have to have a $50,000 safe, a $200,000 security system, and a $100,000 consultant help you make an 800-page application.”
Every single plant must be weighed, tagged, and tracked from seed to sale.
This information is “not being used to benefit anybody,” complains grower Jason Downs. “It’s just a waste of everybody’s time, money.”
While legal sellers struggle, clueless California Gov. Gavin Newsom complains: “Illegal cannabis grows! They’re getting worse, not better.”
His solution: California taxpayers now will spend $100 million to bail them out!”
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“Illinois’ rules are probably the worst.
“Only ‘social equity veterans’ in Illinois can get a license,” explains Howard. In other words, new licenses are supposed to go to prior “victims of the drug war.”
But the bureaucrats’ rules are so complex that a full year after legalization, zero new licenses have been issued.
Meanwhile, politically connected people grabbed every existing license.
One billionaire from the Wrigley gum family “paid $155 million for six dispensary licenses,” says Howard. Illinois is “creating a cartel.””
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“Other states have bad rules, too.
“Florida and Arizona are millionaires’ clubs,” says Howard. “You have to not only grow it; you have to be able to produce it and process it. You have to own your own dispensary. If you have $40 or $50 million, it’s great.”
Massachusetts requires all dispensaries to black out windows lest anyone see the marijuana. Stores must also check everyone’s IDs multiple times.
Legalization doesn’t have to be stupid.
Oregon and Colorado have reasonable rules, and in Oklahoma, “anyone can get a cannabis license,” says Howard, “provided you’ve lived in Oklahoma for two years.”
The result?
“You get a lot more innovation—more entrepreneurs coming into market. Some go out of business, and some do very well….It’s free market capitalism.”
“Planning documents show that in 2013 the city granted permission for the construction of five buildings—containing 10 units of housing plus office space and ground-floor retail—on lots that were either vacant or featured a shuttered gas station.
The developers instead ended up building 29 total units without any of the offices or open space they had promised. In addition, the final project lacked some of the promised parking spots and had none of the fancy façade features depicted in the original plans. The new units also lack a second means of egress, which is required for fire safety purposes.
The project received its final certificate of occupancy in 2016. According to the Chronicle, problems with the neighbors began even before construction was finished, as it became clear that the façade going up in their neighborhood did not match the plans approved by the city.
“I saw it go up and I thought, ‘This turd is not what we were promised,'” one neighbor told the Chronicle.
The Planning Department’s website shows several complaints dating back to 2017 about the building’s illegal units, lack of below-market-rate rental units, and absence of promised street trees.”
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“The question is what will now happen at the currently occupied apartment complex.
The developers’ attorneys have filed applications to legalize the additional, unapproved units and to add fire escapes on the rear of the building. That will require the city to grant variances for the properties, which are collectively zoned for only 14 units. That’s not guaranteed to happen, so some of the current units may end up getting dismantled and their occupants forced to move elsewhere.”