Governor Gavin Newsom has signed two significant housing bills aimed at expediting the construction of new housing in California by addressing barriers posed by the California Environmental Quality Act (CEQA). Originally enacted in 1970 to protect the environment, CEQA has been criticized for being exploited to hinder housing development, particularly affordable housing.
The first bill, AB 130, introduced by Assemblymember Buffy Wicks, exempts most urban housing projects from environmental review and mandates that only buildings over 85 feet tall and low-income housing must pay union-level wages for construction workers. The second bill, SB 131, proposed by Senator Scott Wiener, extends exemptions from environmental restrictions to various essential buildings, including health clinics, childcare centers, and food banks.
Newsom emphasized the importance of these reforms, asserting that they represent “the most consequential housing reform in modern history.” He effectively compelled the passage of these bills by linking them to the state budget, a move praised by experts like Chris Elmendorf, a law professor at UC Davis, who characterized it as a demonstration of strong leadership.
The expectation is that these legislative changes will encourage developers to undertake new projects, ultimately leading to more affordable housing in the Bay Area. Louis Mirante, Senior Vice President of Public Policy for the Bay Area Council, highlighted that the scarcity of new homes has driven up prices for existing ones, creating a challenging market for many residents. By increasing housing supply, the hope is to alleviate this pressure and make housing more accessible.
