Dive Brief:
- Seven cities in California could see taller residential buildings if Gov. Gavin Newsom signs a downtown density bill passed by the state legislature in August.
- AB 2074 requires major cities with transit to establish regional transit hub districts, areas with at least one transit-oriented development stop where the city must allow residential building height limits to be set at a maximum of at least 150 feet. Residential buildings with a maximum height of at least 450 feet would have to be allowed in at least 25% all regional transit hub districts in a city.
- The bill is part of a larger effort to increase housing density in the state to meet a goal of 2.5 million new homes by 2030. Cities impacted by the bill, with at least two transit stops and populations of at least 400,000, include Long Beach, Los Angeles, Oakland, Sacramento, San Diego, San Francisco and San Jose, according to California YIMBY, which championed the bill.
Dive Insight:
As the housing crisis continues to plague local governments, California is among multiple states that are stepping in with mandates for cities and counties to boost development.
More preemption bills were introduced in California than in any other state last year, according to a National Association of Counties analysis. Newsom brought legal action against several localities in July for allegedly failing to meet state housing planning measures.
A California Senate Appropriations Committee analysis noted that AB 2074 would impose new and unknown costs on the seven impacted cities that are not “state-reimbursable.”
If Newsom approves AB 2074, it would trigger a housing construction loan and financing study by the California Housing Finance Agency.
San Diego Mayor Todd Gloria endorsed the legislation in April, calling it “the kind of policy that big cities need right now.”
