Showing posts with label Zelda Bronstein. Show all posts
Showing posts with label Zelda Bronstein. Show all posts

Friday, January 4, 2019

Regional planners mount a quiet coup to promote developers and attack vulnerable communities

Regional planners mount a quiet coup to promote developers and attack vulnerable communities




Public money finances secret meetings of powerful group—to encourage the Growth Machine with no protections for tenants and no barriers against displacement, all in the name of solving the housing crisis.

BY ZELDA BRONSTEIN - January 3, 2019
The Metropolitan Transportation Commission has been planning a coup.

Not the putsch kind of coup, where armed insurgents overthrow a duly constituted government, but an insidious takeover led by an ad hoc public-private coalition, authorized by new laws, and justified by artful rhetoric—above all, a reiterated declaration of emergency. The goal is not to overthrow the ruling order, i.e., the Capitalist Growth Machine, but to secure and aggrandize it at the expense of the most vulnerable.



The MTC cabal, otherwise known as The Committee to House the Bay Area or CASA, would have us believe that the region’s housing crisis necessitates:

creating a public-private agency that would standardize zoning across the region
imposing as much as a billion dollars of new taxes on the Bay Area
rolling back environmental review
lowering housing affordability standards
re-zoning “high opportunity” single-family neighborhoods for higher-density market-rate housing development, regardless of transit accessibility
accepting the assumption that building market-rate housing lowers the price of all housing
enhancing private developers’ profit margins 
ensuring continuous, explosive job growth while ignoring services and infrastructure to support that growth
These fatuous propositions inform the “CASA Compact: A 15-Year Emergency Policy Package to Confront the Housing Crisis in the San Francisco Bay Area,” a 31-page manifesto and plan of action finalized on December 12. Now MTC/CASA is lobbying the state Legislature to pass laws, including SB 50, State Senator Scott Wiener’s do-over of his failed SB 827, that implement the Compact’s recommendations.

For the sake of democratic governance, fiscal sanity, environmental protection, and housing justice, MTC/CASA needs to be stopped.


Laying the groundwork: MTC’s hostile takeover of ABAG 



SF Mayor London Breed endorsed the plan at a Dec. 12 meeting
The CASA power grab is predicated on a prior usurpation: MTC’s 2016 hostile takeover of our region’s land use planning agency, the Association of Bay Area Governments. 

As MTC’s name indicates, the agency’s official mission is transportation. Every region in California has a Metropolitan Planning Organization that channels federal transportation dollars to the area. The Bay Area’s MPO is MTC. Created in 1970 by the California Legislature, MTC administers more than $2 billion a year, including more than $600 million in bridge tolls, for the operation, maintenance, and expansion of the Bay Area’s surface transportation network. It is rich, powerful, and feared.


Oakland Mayor Libby Schaaf also endorsed the plan.
MTC is also a profligate, rogue agency. In 2010, MTC lost more than $120 million worth of bridge tolls in credit swaps gone bad. It had a major hand in the Bay Bridge debacle. Its new headquarters in San Francisco ran $90 million over budget; the agency’s use of bridge tolls to buy the building prompted then-State Senator, now-Congressman, Mark DeSaulnier to get the state Legislature to unanimously pass a law forbidding MTC to use bridge tolls for real-estate speculation. MTC is facing two lawsuits over the constitutionality of placing Regional Measure 3 on last June’s ballot as a fee, not a tax; the passage of RM3 increased bridge tolls by three dollars, starting with a $1 raise on January 1. 

The grim state of the region’s surface transportation attests to MTC’s failure to carry out its basic mission. Congestion is so bad, Bay Area News Group reporter Gary Richards recently wrote, that in 2019, local transit agencies will seek state legislation to authorize a once “unthinkable” practice: allowing buses and possibly carpools to drive on the shoulder of freeways and bridges during the heaviest commute times. According to Richards, MTC “is a strong proponent” of the change.

Like every other major region in California, the Bay Area also has a land use planning agency called the Council of Governments (COG). The Bay Area’s COG is the Association of Bay Area Governments. Unlike MTC, a state agency, ABAG is a voluntary organization, created in 1961 by the cities and counties of the Bay Area. Whereas MTC is dominated by the three biggest cities in the region, every city in the Bay Area has a representative in the ABAG General Assembly. 

In every other region in California, the MPO is subordinate to the COG. The Bay Area has been an exception. Until 2016, MTC and ABAG uneasily co-existed as semi-independent bodies. ABAG, the poor relation, was financially dependent on MTC. With the passage of SB 375, the Sustainable Communities and Climate Protection Act of 2008, the two agencies were forced to collaborate on Plan Bay Area. 

The preparation of the initial Plan Bay Area, which was approved by MTC and ABAG in July 2013, engendered conflicts over policy and finances. Those tensions moved MTC to execute a hostile takeover of ABAG in 2016. That offensive entailed a year-long fight that culminated in the so-called merger of the two agencies under the aegis of MTC’s administration. ABAG retains its board, but its staff now reports to MTC Executive Director Steve Heminger. 

The takeover signaled MTC’s intention to transform itself into a one-stop regional transportation and planning agency. Enter CASA.   


Who is CASA?


A year and a half ago, Heminger secretly hand-picked 53 “stakeholders” to participate in CASA. The group is dominated by the real-estate industry, with representatives from some of the region’s largest market-rate and affordable housing developers (Related California, TMG Partners, MidPen Housing), as well as the California Apartment Association, the Building Industry Association, pro-growth affordable housing advocates (Nonprofit Housing Association of Northern California, SV@Home), think tank SPUR, and BART). 

TMG Partners Chairman and CEO Michael Covarubbias is one of CASA’s three co-chairs. A second co-chair is SV@Home Executive Director Leslye Corsiglia, formerly a staffer at the state’s Department of Housing and Community Development and director of the San Jose Housing Department.

CASA’s paid consultants include Carol Galante, former CEO of Bridge Housing and current head of UC Berkeley’s Terner Center for Housing Innovation. The ferocity of Galante’s attacks on CEQA are rivaled only by those emanating from Holland & Knight attorney and CASA member Jennifer Hernandez. Terner also has a representative on CASA, Committee, Visiting Scholar Ophelia Basgal, listed on the roster by another of her UC Berkeley associations, the Center for Community Innovation. Basgal and Hernandez are joined on CASA by Janice Jensen, who represents another vocal CEQA opponent, Habitat for Humanity.

Big Tech (Google, Facebook), Big Philanthropy (Chan-Zuckerberg Initiative, San Francisco Foundation), and Big Pharma (Genentech) are also at the table. San Francisco Foundation CEO Fred Blackwell is the third CASA co-chair.

Other CASA members include local officials, half of whom represent the three largest of the region’s 101 cities; equity advocates (PICO California, Urban Habitat, Working Partnerships USA, Tenants Together, California Housing Partnership); building trades unions (Alameda County Building and Construction Trades Council and Nor Cal Carpenters Regional Council); and a healthcare workers union (SEIU-UHW).

The original CASA lineup included as one of its two putative environmentalists Jeremy Madsen, then-Executive Director of Greenbelt Alliance. Introducing himself at the CASA Steering Committee’s meeting on September 26, 2017, Madsen said, “I sometimes joke internally that “we’re the most pro-development environmental group you’re going to run across.” In January, Madsen left Greenbelt Alliance to became program director for The Energy Foundation; he subsequently resigned from CASA. His seat was taken by Greenbelt Alliance Deputy Director Matt Vander Sluis. Growth environmentalism’s other representative on CASA is Stuart Cohen, Executive Director of TransForm. 

The full CASA roster appears at the end of this article.


CASA operates largely in secret…


CASA has two sub-groups: a 32-member Technical Committee, which has done most of the work,  and an eighteen-member Steering Committee that has itself been steered by CASA’s three co-chairs and Heminger. From June 2017 to December 2018, the Technical Committee met publicly almost every month; the Steering Committee met publicly six times on an irregular basis.

Only three of the public meetings published written minutes, and only one of those three (the summary of the Technical Committee’s first meeting on June 28, 2017) documents the names of the speakers and summarizes what they said. The other two only name CASA members in attendance and people who spoke at public comment. Two meetings lack official video or audio documentation; three have only audio. And of course the secret meetings have no public documentation at all. 


If the meetings were secret, how do we know that they took place? 



Simple: At the public meetings, Technical Committee members repeatedly referred to them. They professedly met at night, on weekends, and on at least one holiday: On November 14, Covarrubius boasted to the Steering Committee, “We were here six hours on Veterans Day, about 30 people”—“here” being MTC headquarters.

The most spectacular instance of this covert activity came to light at the Steering Committee’s Dec. 12 meeting, when Oakland Mayor Libby Schaaf referred in passing to a trip that she and other, unspecified CASA participants had recently taken to New York City. That trip never appeared on any CASA agenda, nor was it ever mentioned at any of CASA’s public meetings before it took place. I’ve filed a Public Records Act query with MTC asking to see documentation of the costs associated with each member’s travel, room, and board as well as itineraries and agendas. 

I also asked the California First Amendment Coalition about the legality of CASA’s lack of written minutes. I was told that because CASA is not an official legislative or judicial body, it is not subject to the Brown Act and does not have to publish written minutes of its meetings. 

At the CASA Technical Committee’s meeting of May 16, committee Co-chair Covarrubias approached me and said, “You’re a journalist?” I replied: “Yes. I have to come to these meetings, because there are no minutes.” Covarrubias: “We like it that way.”


…but is publicly financed


Technical Committee members—all volunteers—repeatedly congratulated each other on their diligence and dedication. And they did work very hard. But their labors were considerably eased by MTC’s largesse, which included a free, tony meeting space; free food; ample support from staff and paid consultants; grants for outreach to community-based organizations; a place on MTC’s website that featured a professionally produced video; a telephone poll “of all Bay Area residents;” and the trip to New York City. 

The only information about the CASA funding that appeared on any CASA agenda was contained in a memo to the Technical Committee dated December 6, 2017 and posted on the committee’s December 13, 2017, agenda. Under the heading “DRAFT Community Outreach and Engagement Plan,” MTC Planning Director Ken Kirkey wrote:

In order to engage communities traditionally unrepresented in government decision making,….MTC will provide a $5,000 stipend each to four community-based organizations (CBOs) to host and conduct the first of two rounds of outreach meetings with disadvantaged communities” in spring 2018.

Kirkey added:

MTC will provide a second round of stipend to the same community-based organizations to conduct a second round of meetings with disadvantaged communities.

On April 23, I filed a California Public Records Act Request with MTC asking to see all documents related to funding the Committee to House the Bay Area. In response, on May 18, MTC provided with 55 pages of documents that included

sole source contracts with Estolano LeSar Perez Advisors “for facilitation services for the Committee for Housing the Bay Area” totaling $450,000
sole source contracts with the UC Regents totaling $133,400 for Terner Center Director Carol Galante and Urban Displacement Director Karen Chapple “for facilitation service for the Committee for Housing the Bay Area” that included “Just Cause Policy Research,” a “Protection Lens for Rent Gouging and Costa Hawkins Research,” an “Equitable Development by Neighborhood Conditions Framework” and “Production Pipeline Analysis.”
a “Letter of Agreement for $19,922 between the San Francisco Foundation and MTC for the CASA Initiative” to “support research that will be conducted by the Urban Displacement Project” at UC Berkeley
a letter from Heather Hood and Geeta Rao, Enterprise Community Partners to “Ken Kirkey and Team, Metropolitan Transportation Commission” setting forth the “Scope for Bay Metro to Support CASA with Research,” thanking MTC “for entrusting us to be a thought partner,” and estimating the total cost of the work to be $25,000, of which Enterprise “can contribute $25,000 of that time and materials in kind (paid by grants we have already secured).”
On December 12, I made additional PRA Requests, asking (again) to see all documents related to CASA’s funding, as well as all expenditures that passed through MTC to fund the recent trip to New York City, including allocation for CASA members’ travel, room, and board, and any agendas and itineraries. 

On December 21, MTC informed me that, as per the California Public Records Act, because my request necessitated “consultation with another agency having substantial interest in the matter of the request or among two or more components of the agency having substantial subject matter interest therein,” additional time would be required to respond, and that it anticipated releasing a response by January 11, 2019.


The CASA Compact


While the political energies of many Bay Area residents were absorbed by the two elections of 2018, CASA drew up its Compact. Finalized in mid-December, the 31-page mainfesto/plan of action is organized around “Three Ps:”

Increasing housing productionat all levels of affordability
Preserving existing affordable housing
Protecting vulnerable households from housing instability and displacement (p. 5)
The gist of the compact is contained in ten dense “elements,” each setting out a major policy proposal (a list of the elements appears at the end of this article). 

The two most audacious Elements— Number 9, “Funding and Financing the CASA Compact,” and Number 10, “Regional Housing Enterprise”—deal with money and governance. One of CASA’s many foundational myths is the fiction that “everyone” is to blame for the Bay Area’s housing woes, and thus everyone should “share the pain” of remedying them. “[T]he beauty of this,” co-chair Covarrubias told the Technical Committee on September 18, is that it’s “a solution that doesn’t have a target, [but] that has everybody as a target.” 

Another CASA conceit is that the compact is a “grand bargain” in whose formulation all parties have compromised for the sake of the common good. But some parties are expected to compromise a lot more than others, as indicated by the “Allocation formula” in Element 9, which divvies up the anticipated new revenues by percentages:


Allocation formula


minimum 60 percent for “subsidized housing production”
up to 10 percent for tenant protection services 
up to 10 percent for “local jurisdiction incentives (including funding for hiring more building inspectors”
up to 20 percent for affordable housing 
Note that production is designated for the lion’s share of the funding, and that only production comes with a funding floor. The other allocations all have an ambiguous (“up to”) ceiling; in other words, they could get less than the designated percentages. 

Also ambiguous: the term “subsidized housing production.” Exactly what kind of housing is CASA proposing to subsidize? Is it market-rate? If not, why does “affordable housing” have a different allocation? 

Answers to these questions may be gleaned from “Figure A: The CASA Compact Framework,” which shows “Numeric Targets” for each of the P’s. Under “Produce,” we read: “35,000 Housing Unit/Year, 14,000 of Which are Affordable to Lower-Income and 7,000 to Moderate Income Households” (p. 5). 

In other words, 60 percent of the total funds for housing production would apparently go to—or to borrow the Compact language, subsidize—market-rate housing. And, as noted in detail below, thanks in large part to the Bay Area’s insane housing prices, what’s officially affordable is far beyond the means of many of the region’s residents.

The funds would be disbursed by the “Regional Housing Enterprise,” a new governmental agency described in Element 10 as an “independent,” public-private, regionwide entity that has authority to impose taxes; issue debt; buy, lease, and sell land; provide technical assistance to local governments; “collect data to monitor our progress;” and administer zoning standards for the region’s nine counties. 

Heminger has referred to the Regional Housing Enterprise as a “housing assembly authority” (Technical Committee, October 17, 2018) and “a financing vehicle and data warehouse” (Steering Committee, December 3, 2018). At the Steering Committee’s meeting in October, he described CASA as “a public-private enterprise” and said that “it would make some sense to try to mimic that in the governance of this new institution.” Just so, Element 10 recommends that “[s]tate law should establish an independent board, with broad representation to [sic] MTC, ABAG, and key stakeholder groups that helped develop the CASA Compact.” 

Some people, including me, complain that MTC and ABAG are undemocratic because their governing boards are not elected. More precisely, the officials sitting on those boards—mayors, councilmembers, county supervisors—are elected, but they’re not elected to oversee regional agencies. In terms of representative democracy, the Regional Housing Enterprise would be even far less accountable to the public: its board would include and very likely be dominated by individuals who haven’t been elected to anything at all. 

At the Technical Committee meeting on December 3, Heminger responded to criticism made at public comment that the Regional Housing Enterprise would be unelected. “The fact is,” he asserted, “that there’s only one elected regional board in America—in Portland.”

The MTC chief then sought to further discount a regionally elected government by commending the “innovation” of having private parties on the RHE board. Apparently the novelty that distances government further from the public at large is welcome at MTC/CASA, while the kind that puts the two in greater proximity is not.

The compact says that “[t]he new enterprise will not have direct regulatory authority” (Preamble). But the two models referenced in the compact—the New York City Housing Development Corporation and the Twin Cities revenue-sharing program—both exercise regulatory authority. Neither program was ever discussed in detail at a public CASA meeting.

With the authority to “levy fees and seek voter approval to impose taxes for housing” (E10) and to “administer any new regional funds that might be approved for housing” (Preamble), the Regional Housing Enterprise would effectively be calling some big shots on land use in the Bay Area. And as envisioned, it would have a lot of money at its disposal. 


Dodging Bay Area voters


The compact estimates the cost of the Regional Housing Enterprise at $2.5 billion a year for 15-20 years, with $1 billion coming from unspecified state and federal sources and the remaining $1.5 billion from new regional and “local self-help measures.” 

A “menu” of potential new sources of revenue are laid out in Compact Element 9. CASA confusingly distinguishes “parcel taxes,” “taxes on local governments,” and taxes on “taxpayers.” In fact, “taxpayers” would be paying all three kinds of charges, as well as the interest on the general obligation bonds.

Taxes on Property Owners: $200 million

1% tax on vacant homes, regionwide ($100 million)
$48 per year region-wide parcel tax, regionwide ($100 million)
Taxes and fees on Developers: $400 million

$5-$20 per sq. foot commercial linkage fee on new construction ($200 million)
$10 per sq. foot flat commercial linkage fee on new construction ($200 million)
Taxes on Employers: $400 million

0.1%-0.75% regionwide gross receipts tax; small businesses and employers in a jurisdiction with an existing tax would be exempt ($200 million)
$50-$120 per job regionwide variable head tax ($200 million)
Taxes on Local Governments: $300 million

25% “Redevelopment Revenue Set-Aside for affordable housing” ($200 million)
20% “Revenue Sharing Contribution from future property tax growth, regionwide” ($100 million)
Taxes on Taxpayers: $500 million

1/4 –cent sales tax, regionwide ($400 million)
5-year term general obligation bonds issued by Regional Housing Enterprise, renewed every five years ($100 million)
At the Technical Committee’s meeting in October, Heminger noted and then discounted objections to certain items on the revenue menu. Sales tax, he observed, “is regressive, but here in California, food and medicine are exempt….[I]f you’re spending it to fund a bunch of affordable housing, I would consider that progressive.” He also noted that 

some of [the] measures in the developer-employer orbit could be considered fees, and, depending how the enabling legislation is passed in Sacramento, could be authorized without a vote of the people. I have no doubt that that would be litigated; we’re litigating RM3 right now for bridge tolls.

Heminger seemed unfazed by the prospect of new litigation, possibly because at the end of February, he’s leaving MTC. “Maybe,” he joked, “we’ll use our precedent to see what we can do on housing.” He also opined:

“I doubt that you could put five of these suckers on the same ballot and expect to pass any one of them. So one, we’re going to have to be selective; and two, some of these may not require voter approval, and that’s indeed helpful, if that’s true…” 

Indeed, as Heminger wrote in a memo for MTC’s November 28-29 retreat at the Fairmont Sonoma Mission Inn, the compact advances “a suite of legislative reforms” whose authorization requires action in Sacramento. Well before MTC approved the compact, CASA members were negotiating behind the scenes with the Bay Area’s state legislators. The compact says that they will continue lobbying the Legislature “to implement” its “principles” (p. 5).

Missing from the compact is the “CASA Work Window” that was handed out at the Technical Committee’s September 2018 meeting. That document set out a five-year plan:

2018   CASA Development

2019   Legislative Package

2020   Election #1 Presidential

2021   PBA/RHNA Adoption

2022   Election # 2 Gubernatorial

On October 17, Heminger told the Technical Committee that the “infrastructure community” was discussing a regional “mega-measure” to pay for a second BART tube. “If [that proposal” is “live around 2020 election,” could his listeners entertain “some scenario where we might join forces and help each other?” Going in as “partners,” he mused, “might involve a better chance of success for both.” At the Steering Committee’s November meeting, he said getting such a measure on the 2020 ballot was an “imperative.”

Heminger and the CASA co-chairs have repeatedly stated that the 10 elements in the compact must go forward together. But on December 3, the first day of the Legislature’s new session, members of the Bay Area Caucus introduced bills—most notably Wiener’s SB 50—that  incorporate CASA’s recommendations. Except for Skinner’ SB 18, which vaguely echoes Element 3, “Emergency Rent Assistance and Access to Legal Counsel,” none of the measures incorporate any of the compact’s proposals for either a regionwide just cause eviction policy (Element 1) or an emergency rent cap (Element 2); instead, they’re all aimed at weakening restrictions on growth. So much for a package deal.

AB 4 (Chiu): Redevelopment 2.0

AB 68 and AB 69 (Ting): further loosen regulations on in-law units

SB 4 (McGuire and Beall): Limit local land use policies that restrict housing and encourage new housing near transit and job centers

SB 5 (McGuire and Beall): Redevelopment 2.0

SB 6 (Beall): Streamline housing production and penalize local planning that restricts production 

SB 13 (Wieckowski): further loosen regulations on in-law units

SB 18 (Skinner): legal assistance for tenants 

SB 50 (Wiener): upzoning near transit and job center

Plus AB 2065 (Ting): surplus public lands (introduced in 2018 and still live)

CASA’s legislative initiative has a pay-to-play aspect: Estelano LeSar Perez Advisors, the consultantcy with the $450,000 contract with MTC noted above, is co-owned by Jennifer LeSar, the wife of California State Senate President Pro Tem Toni Atkins. 

Addressing the Steering Committee on November 14, Heminger said that the region’s state legislators “are quite excited about this CASA thing you’ve all invented.” 

This is the Part One of a series on CASA and Bay Area housing and development. 

CASA Roster:

Co-Chairs and Convener

Fred Blackwell
Chief Executive Officer | The San Francisco Foundation

Leslye Corsiglia
Executive Director | Silicon Valley at Home

Michael Covarrubias

Chair and Chief Executive Officer | TMG Partners 

Steve Heminger 
Executive Director | Metropolitan Transportation Commission

CASA Steering Committee Members

Ariane Hogan

Associate Director | Genentech

 Bob Alvarado

Executive Officer | Nor Cal Carpenters Regional Council

 Dave Cortese

District 3 Supervisor | Santa Clara County

 Dave Regan 

President | SEIU

 David Rabbitt 

Second District | County of Sonoma County

 Ellen Wu

Executive Director | Urban Habitat

 Grace Crunican

General Manager | BART

Jake Mackenzie
Mayor | City of Rohnert Park

 Julie Combs

City Council Member | City of Santa Rosa

 Keith Carson

District 5 Supervisor | Alameda County

 Kofi Bonner 

Regional President, Northern California | FivePoint

 Libby Schaaf

Mayor | City of Oakland

 London Breed

Mayor | City and County of San Francisco

 Matthew Franklin

President | MidPen Housing

 Michael Matthews

Director of California Public Policy | Facebook

 Rebecca Prozan

Chief of Public Policy and Government Affairs | Google

 Sam Liccardo

Mayor | City of San Jose

 Stuart Cohen 

Founding Executive Director | TransForm

CASA Technical Committee Members

Abby Thorne-Lyman
TOD Program Manager | BART

Adhi Nagraj

Director | SPUR

 Aimee Inglis

Associate Director | Tenants Together

 Amie Fishman

Executive Director | Non-Profit Housing Association

 Andreas Cluver

Secretary-Treasurer | Building and Construction Trades Council of Alameda County

 Bill Witte

Chair and CEO | Related California

 Bob Glover

Executive Officer | BIA Bay Area

 Caitlyn Fox

Policy | Chan Zuckerberg Initiative

 Denise Pinkston 

Housing Committee Co-chair | Bay Area Council

 Derecka Mehrens

Executive Director | Working Partnership, USA

 Doug Shoemaker

President | Mercy Housing

 Jacky Morales Ferrand 

Housing Department Director | City of San Jose

 Janice Jensen

President and CEO | Habitat for Humanity

 Jennifer Hernandez

Partner | Holland and Knight

 Dr. Jennifer Martinez

Executive Director | Faith in Action Bay Area

 Jonathan Fearn

Vice President of Development | Summerhill Housing Group

 Joseph Villarreal 

Executive Director | Contra Costa Housing Authority

 Joshua Howard 

Senior Vice President, Northern California | California Apartment Association

 Linda Mandolini 

President | Eden Housing

 Lynn Hutchins 

Attorney | Goldfarb Lipman LLP

 Mark Kroll 

Managing Director | Saris Regis Group

Mary Murtagh 
President and CEO | EAH Housing

 Matt Schwartz 

President and CEO | California Housing Partnership

 Matt Vander Sluis

Deputy Director | Greenbelt Alliance

 Michele Byrd

Director, Housing & Community Development | City of Oakland

 Ophelia Basgal 

Visiting Scholar | Terner Center for Housing Innovation

 Randy Tsuda 

Community Development Director | City of Mountain View

 Rich Gross 

VP and Market Leader for Northern California Market | Enterprise Community Partners

 Robert Apodaca 

Principal, Zezen Advisors | California Community Builders

 Scott Littlehale 

Senior Research Analyst | Nor Cal Carpenters Reg. Council

 Tomiquia Moss 

Executive Director and CEO | Hamilton Families

CASA Compact Elements



#1   Just Cause Eviction Policy

#2   Emergency Rent Cap

#3   Emergency Rent Assistance and Access to Legal Counsel

#4   Remove Regulatory Barriers to ADUs

#5   Minimum Zoning Near Transit

#6   Good Government Reforms to Housing Approval Process

#7   Expedited Approvals and Financial Incentives for Select Housing

#8   Unlock Public Land for Affordable Housing

#9   Funding and Financing the CASA Compact

#10  Regional Housing Enterprise

Monday, February 5, 2018

Scott Wiener’s war on local planning

Scott Wiener’s war on local planning


His next round of housing bills force cities to accept growth and displacement—without giving them the money or tools to mitigate it
BY ZELDA BRONSTEIN
-
February 1, 2018


On January 19, I attended UCLA Extension’s 2018 Land Use Law and Planning Conference at the Biltmore Hotel in downtown Los Angeles. Seated in long rows of tables under the glittering chandeliers of the hotel’s Crystal Ballroom, hundreds of elected and appointed public officials, developers, attorneys, and consultants are annually briefed by sharp pro-growth land-use lawyers and other like-minded experts on the latest California land-use legislation and case law.Sen. Scott Wiener wants to force cities to allow more high-end housing, without giving them the tools or money to control the impacts

This year the star of the show was State Senator Scott Wiener. He earned that role by authoring SB 35, the controversial “by-right” housing bill that Governor Brown signed into law in September. Like his fellow Yimbys, Wiener believes in a supply-side, build-baby-build solution to California’s housing woes and blames those woes on local jurisdictions’ resistance to new residential development. He presents himself as a brave policymaker who grapples with hard issues that others have dodged—an image belied by his evasive responses to my questions.

In California, Wiener told the conferees, “housing has been a purely local thing.” There have been “few laws on the books,” those that are on the books “are not enforced” and are outdated. What needs to happen, he said, is that the state should govern housing the way it governs education. Local school boards “set policy,” but “the state sets the ground rules.” Just so, last February the senator told Streetsblog, “if you [a city] are meeting your RHNA [Regional Housing Needs Allocation, set by the state’s Department of Housing and Community Development] goals…you maintain full local control.”

This strains to the breaking point any reasonable definition of local control, which, moreover, the Legislature has been chopping away for years. For starters, see SB 375, which spawned Plan Bay Area; SB 743, which eliminated local congestion as an environmental impact; and, in last year’s “housing package,” SB 35, SB 167 and AB 1515. On January 3, Wiener introduced two new bills, SB 827 and SB 828, that move beyond chopping into slash-and-burn territory.

SB 827

Drafted by California Yimby Executive Director Brian Hanlon, and coauthored by State Senator Nancy Skinner (D-Berkeley) and Assemblymember Phil Ting (D-San Francisco), SB 827 would prohibit cities from limiting heights to lower than 45 feet (six stories) or 85 feet (eight stories)—depending on the width of the street—on parcels within a half-mile of a “major transit stop” or a quarter-mile of “a high-quality transit corridor.” For such parcels, SB 827 would also suspend local parking minimums, density restrictions, and “any design standard that restricts the applicant’s ability to construct the maximum number of units consistent with any applicable building code.”

The bill defines a major transit stop as “a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.” The California Government Code defines “a high transit corridor” as “a corridor with fixed route bus service that has service intervals of no more than 15 minutes during peak commute hours.”

SB 828

Wiener’s companion bill, SB 828, would exponentially increase both cities’ Regional Housing Needs Allocations (RHNAs) and state authority over local land use planning. I’m going to review the bill in wonky detail, because though SB 827 has gotten the lion’s share of publicity, support, and pushback, SB 828 is likely to have at least as much impact.

Every eight years, the California Department of Housing and Community Development determines how much housing at various income levels will be needed to accommodate each region’s forecasted population. The region’s council of governments—in the Bay Area, the Association of Bay Area Governments—divvies up this number among its local jurisdictions, who must then plan and zone accordingly. See the FULL ARTICLE HERE

Tuesday, December 5, 2017

Little-known Yimby-developer bills will have big impact on local planning

Little-known Yimby-developer bills will have big impact on local planning


Growth machine continues its attack on anything that stands in the way of more market-rate housing

BY ZELDA BRONSTEIN
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December 3, 2017


Of the fifteen bills in the “housing package” signed into law by Gov. Jerry Brown on September 29, the one that got the most attention in the news media was State Senator Scott Wiener’s SB 35—and for good reason: SB 35 goes a long way toward “putting teeth” in California’s Regional Housing Needs Allocations, the number of housing units whose each city’s and county’s zoning must accommodate. Moreover, the bill’s provisions for “by-right” approval of certain multi-family, infill developments both circumvent the California Environmental Quality Act and eliminate negotiations with developers over community benefits.Housing for all — or just market-rate housing for the rich?

But two other items in the package, SB 167 and AB 1515, that either got much less publicity (SB 167) or virtually none at all (AB 1515) will likely do much more damage to the democratic governance of land use in the state. Both amend California’s Housing Accountability Act, a once-dormant law now being exploited by Bay Area Yimbys.

Passed in 1982, the HAA limits the ability of local agencies to reject or make infeasible housing developments without a thorough analysis of the economic, social and environmental effects of such action. It applies to all housing projects. Most important, the HAA allows a court to compel a city to take action on proposed developments.

Analyzing AB 1515 for the State Senate Rules Committee, Senate staffer Alison Hughes observed that when a jurisdiction is sued under the HAA,

the local government bears the burden of proof that its decision has conformed to all of the requirements in the law, including, if applicable, any findings that the development was not consistent with the city’s general plan or zoning standards.….

[I]n order to qualify for the Housing Accountability Act’s protections, a development must be consistent with a city’s general plan and zoning standards in effect at the time that the application was deemed complete. In land use cases, when the issue is such consistency, courts have tended to defer to local governments, unless the court finds that the local government acted arbitrarily, capriciously, or without evidentiary basis.

In legalistic terms, a local government’s decision would be upheld unless no reasonable person could have made the same decision—a very high bar. AB 1515 effectively lowered the bar to the ground.

AB 1515, Hughes explained, “requires courts to give less deference to a local government’s consistency determination. It changes the [evidentiary] standard of review by providing that a project is consistent if there is substantial evidence that would allow a reasonable person to find it consistent.”

AB 1515 was sponsored the California Building Industry Association. The Legislature staff analyses list only one opponent: the California chapter of the American Planning Association. Given that professional planners are usually avid proponents of development, Cal APA’s opposition is striking.

In a letter sent to the members of the Legislature on August 1, Cal APA laid out the harm that AB 1515 does to democratically accountable land use policymaking:

Under current law, a city council or board of supervisors weighs the evidence and reaches a decision based on established principles of democratic decision-making—local governments are ultimately held accountable for their decisions by the local electorate.

AB 1515 would replace the judgment of local elected officials with that of any “reasonable person,” including the project developer who has a fundamental economic interest in the project. When fundamental land use decisions, like general plan consistency, are made by developers rather than elected representatives, local government accountability is compromised and the recourse available to the electorate is taken away.

AB 1515 will allow the applicant, rather than the local agency or a judge, to determine consistency of a development with the General Plan and zoning by allowing the applicant to provide contrary reasons why the project is consistent.

As a result, the issue will be whether a “reasonable person” could conclude that the project is consistent—not whether the city or county had substantial evidence to back up its conclusion.

In response to my e-mailed query, Cal APA Executive Director Sande George elaborated:

Under this bill, a project would have to be found consistent with local plans if there’s any evidence or interpretation supporting a finding of consistency, regardless of circumstances and evidence to the contrary.

The existing standard is that the local agency’s finding is assumed to be correct unless no reasonable person could reach that conclusion. This [standard] retains the “reasonable person” phrasing in the bill but does not allow developers to begin making what are clearly local determinations, or to take a local agency to court over every finding.

Cal APA asked that AB 1515 be amended to read: “the local agency’s finding is assumed to be correct unless no reasonable person could reach that conclusion.” Request rejected.

The Legislature approved AB 1515 on September 15. On September 19, the League of California Cities sent Gov. Brown a letter requesting him to veto the bill. Like the APA, the League argued that AB 1515 “would deviate from longstanding judicial precedent” that generally deferred to local determination of a project’s consistency with a jurisdiction’s planning.

But whereas the APA held that the bill authorized developers to begin making such determinations, the League contended that it
would essentially allow a court to determine whether a project is consistent with local zoning and general plan [sic] by selecting the substantial evidence it wishes to rely on rather than reviewing whether the city council relied on substantial evidence.
Instead, the League wrote, “[l]ocal governments are in the best position to determine whether a project is consistent with adopted general plan and zoning requirements.”

The Yimbys Seize on the HAA


Besides the California Building Industry Association, AB 1515 supporters included the Bay Area Council, the California Apartment Association, the California Chamber of Commerce, the Silicon Valley Leadership Group, the Nonprofit Housing Association of Northern California, and Yimby Action. Every one of these organizations also supported SB 35.

But the Yimby support for AB 1515 is particularly notable.

To begin, the California Renters Legal Advocacy and Education Fund or CaRLA, self-described as “the legal advocacy arm of the Yimby Party,” qualifies as a “housing organization” that can sue cities under the HAA. The law that made housing organizations eligible to sue under the HAA, AB 2584, is one of the eleven bills listed on the Yimby Legislative Report Card for the California Legislature’s 2016 session. Like AB 1515, AB 2584 was authored by Assemblymember Daly.

Developers are reluctant to sue a city, because they are constantly negotiating with city officials over their projects. The Housing Accountability Act allows a developer’s surrogates to do the dirty work by authorizing as plaintiffs not only a project applicant but also a person who would be eligible to apply for residency in the development, and a housing organization.

As state staffer Rebecca Rabovsky wrote in her analysis of AB 2584, previously “only the project developer or an eligible tenant of the proposed development [could] bring an action against [a] jurisdiction to enforce the provisions of the HAA.” HAA added a “housing organization” to the roster of prospective plaintiffs.

As amended by AB 2584, HAA defines a housing organization as

a trade or industry group whose local members or primarily engaged in the construction or management of housing unit, or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the project.

In 2015, CaRLA sued Lafayette under the HAA and lost; the petitioners were Sonja Trauss and SFBARF (San Francisco Bay Area Renters Federation). In 2016 it sued Berkeley and won; this time the petitioners were SFBARF, CaRLA, Trauss, and Diego Aguilar-Canabal. On November 2, CaRLA sued Sausalito; the petitioners are SFBARF, CaRLA, Trauss, and Sausalito resident and San Francisco property owner Robert Tillman. None of these lawsuits concern affordable housing, and two of them don’t concern much new housing of any sort. The Lafayette case involved 44 single-family homes. In Berkeley, the issue was whether an existing single-family home would be demolished and replaced with three single-family units. In Sausalito, the city has denied an application to demolish and remodel a duplex and add a new single-family unit.

SB 167 was drafted by prominent Bay Area Yimby Brian Hanlon. Hanlon runs CaRLA with SFBARF founder Trauss.

Like AB 1515, SB 167 weakens local authority over land use decisions by changing the evidentiary standard for determining whether a proposed development is consistent with a jurisdiction’s zoning. The change is different, however. AB 1515 makes it much easier to challenge a city’s disapproval of a project by lowering the standard of evidence for mounting such a challenge. SB 167 makes it much harder for a city to disapprove a project in the first place by raising the standard of evidence for such a disapproval.

Before SB 167, a city could disapprove a project based on “substantial” evidence in the record, which means requiring “more than a ‘mere scintilla of evidence.” SB 167 changed the standard to “a preponderance of” evidence in the record, which is to say, to evidence showing that the argument at hand is more likely than not to be convincing and accurate.

SB 167 further strengthened the developer hand at the expense of local government by expanding the Housing Accountability Act’s provisions about attorney’s fees. Before SB 167, a court could award “reasonable attorney’s fees and cost of suit” to a petitioner. SB 167 mandates that a housing organization shall be entitled to reasonable attorney’s fees if it sues a city under the HAA and wins.

SB 167 also increased the size of fine that a court can impose on a city. If a court finds a violation of the HAA, SB 167 requires the court to impose a fine in a minimum amount of $10K per housing unit (in the Yimby first draft of the bill, the fine was $100K per unit). Money cannot be paid out of a fund already committed to affordable housing. Fines go into an affordable housing trust fund with the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households.”

And if a court finds that a city acted in bad faith when it rejected or conditionally approved the housing development or failed to carry out the court’s order within 60 days, the court must multiply the fine by a factor of five.

Like the other bills in the housing package. AB 1515 and SB 167 take effect on January 1, 2018.

The Yimbys and other stalwarts of the California growth machine cast growth-resistant communities as a mighty political force. Yet AB 1515 and SB 167 made their way through the Legislature without grass-roots protest. That history suggests that the growth entrepreneurs’ portrait of a Nimby juggernaut is a caricature whose main purpose is to justify the machine’s ongoing assault on local authority over land use.

Saturday, July 22, 2017

Inside the Yimby conference

Inside the Yimby conference

Nice civil discussion on the surface -- and some nastiness behind the scenes
Last weekend about 120 attendees from 17 cities gathered in downtown Oakland for the Yimbytown 2017 conference. Organized by East Bay Forward, the event was bankrolled by a $40,000 grant from Open Philanthropy, a project of Cari Tuna and Facebook co-founder Dustin Moskovitz that also funded the initial Yimbytown conference in Boulder. Chicago Cityscape also funded scholarships for a quarter of the conferees. Admission was $75.
The event featured 20 sessions and three keynote speakers, including State Senator Scott Wiener. For this reporter, the most memorable aspect of the proceedings was the contrast between the participants’ civility and collegiality at the event proper and the organizers’ incivility and paranoia behind the scenes. A close second was Wiener’s disingenuous put-down of his and other Yimbys’ San Francisco opponents.
In an unusual gesture, Open Philanthropy posts the applications of its would-be grantees online. The Yimbytown application describes the conference as the “annual…catalyst for unifying housing organizers, funders, builders, and thought leaders on a national scale.” This year’s grant went to CaRLA (California Renters Legal Advocacy and Education Fund), the legal affiliate of SFBARF (Bay Area Renters Foundation) that sues suburban cities for purported violations of the state’s Housing Accountability Act.
Housing for all — or just market-rate housing for the rich?
The application lists four goals for Yimby 2017:
  • Unite the North American Yimby Movement
  • Facilitate Peer to Peer Learning
  • Construct a National Yimby Framework to “further create a national visual brand, platform and chapter structure”
  • Amplify Yimby Research, Opportunities, Concerns and Solutions

A Yimbyism Primer
Missing from the application’s anodyne language is the actual content of Yimby ideology. Its basic assumptions: growth is good; limiting growth is bad. But sprawl is also bad. Hence, Yimbys push for the “densification” of existing, urbanized areas (upzoning)—the denser, the better—and fight those who seek to limit the construction of compact new housing. In the Yimby playbook, that means fighting current residents, especially owners of single-family homes, and the elected local officials who respond to such constituencies by passing or maintaining low-density zoning.
Yimbys also hold that growth constraints, particularly “exclusionary zoning,” harm disadvantaged populations by limiting supply and thereby driving up the price of housing.
I find this curious: To begin, all zoning is in some way exclusionary; that’s the point of zoning. Moreover, what’s primarily boosting the price of housing in the Bay Area is a factor that went unmentioned at Yimbytown 2017, tech-industry-driven demand. I also find curious the Yimby conviction that building market-rate housing will generate ample housing for people who can’t get into the market.
To my pleasant surprise, at the conference a few speakers voiced support for rent control and inclusionary housing, requirements that market-rate development include a certain percentage of officially affordable housing. However, I did not hear any references to the fierce battles being waged in San Francisco and Berkeley over the percentages, with Yimbys at times arguing for lower numbers and their adversaries arguing for higher ones.

Four Sessions at the Conference
The Yimby precepts were variously elaborated by the presenters at the four sessions I attended on Friday. Alan Durning, founder and executive director of the Sightline Institute in Seattle, spoke about that city’s Housing Affordability and Living Agenda, the ambitious program initiated by Mayor Ed Murray—a program that, in Durning’s words, came “straight out of the Yimby imagination.” He identified four HALA principles: upzoning combined with developer incentives for affordable housing; loosensed single-family zoning (in HALA-speak, Mandatory Housing Affordability or MHA) —“by far the most controversial”—55% of Seattle’s buildable land is zoned for single-family homes; reduced parking quotas; and re-legalized micro-apartments.
Yimby messaging: Downzoning hurts affordable housing
According to the city’s website, the mayor has set a goal of 50,000 new homes, including the preservation and production of 30,000 new homes in ten years. One of the fastest growing cities in the U.S., Seattle has a population of around 700,000.
Durning didn’t simply cheerlead for HALA; rather, he offered a nuanced evaluation of its progress so far: “too early to judge.” In downtown and the South Lake Union districts, he said, they city “got upzoning right.” In the University district, the “math is bad:” The upzoning is not high enough to motivate developers to build. The result will be “higher prices” and “fewer affordable homes.” He commended the idea of a “parking benefit district,” whereby revenues from parking meters funds local improvements, a concept that Seattle is testing via a pilot project. See full article HERE

Monday, February 27, 2017

YIMBYs, Smart Growth and unanswered questions: Developers love smart growth; here's why

YIMBYs, Smart Growth and unanswered questions: Developers love smart growth; here's why

On February 1 I flew to St. Louis for the New Partners for Smart Growth conference, the largest gathering dedicated to dense, transit-oriented/walkable/bikeable development in the United States.
For many years the event has been run by the Local Government Commission, a non-profit, i.e., private, organization headquartered in Sacramento. In 2014 the U.S. Environmental Protection Agency awarded LGC a $208,000 grant to organize and plan the annual conference for five years (2014-2018). The 768 people listed on the 2017 roster of participants included public officials, consultants, developers, educators, health care professionals, and others. To my knowledge, I was the only member of the press in attendance.
48hillsnimby
What drew me to St. Louis, where the temperatures can (and did) drop below freezing in early February, was a desire to see how smart growth, the dominant paradigm in U.S. city and regional planning, would be presented on a national stage.
I had a particular interest in the session alliteratively entitled “Growing Grassroots ‘Good Growth’ Group.” Moderated by Greenbelt Alliance Executive Director Jeremy Madsen, the panel of three self-declared YIMBYs (Yes in My Backyard) included BARFer and East Bay Forward founding member Gregory Magofña, who was a legislative aide to former Berkeley Mayor Tom Bates.
I sat in on that session and four others dealing with smart growth basics, inclusionary housing, urban manufacturing, and public-private partnerships for “shared mobility.” That was a tiny sample of the nearly 90 sessions convened during the three-day event (I was there for two of those days), but it left some strong impressions.
I was hoping that the conference format would allow me to raise forbidden questions—planning issues that are suppressed in public policymaking in the Bay Area and beyond—and to see how smart growth advocates would respond. It did, as I describe in the following accounts of the Good Growth and “shared mobility” sessions.
Three flavors of YIMBY
The description for the Good Growth session:
We’ve all seen proposals for high-quality smart growth projects, policies and plans downsized, delayed or defeated by a small group of well-organized detractors. Local elected officials who make decisions to approve or deny development projects, policies and plans are responsive to residents of their community. If elected officials see more constituents supporting smart growth, they will be more likely to approve good proposals. Recent years have seen a rise of grassroots “good growth” groups in communities across the country. This session will explore this phenomenon and the impact it is having on the smart-growth movement. How are these groups forming? Who are their members? How do they determine shared goals? How do equity considerations factor into their work? What’s working well and what remains challenging? What are the pros and cons of different models? How are they having an impact in their communities?
In the course of the 75-minute session, moderator Madsen posed each of those questions to Magofña and the other two panelists: Susan Somers, president of the Board of Directors of AURA, a non-profit in Austin whose website says its members “want anyone and everyone who wants to call themselves an Austinite should have an opportunity to do so”; and Will Toor, a member of the steering committee of Better Boulder, described on its website as “advocat[ing] for sustainable and smart development.”  See Full Article HERE