Welcome to today’s real estate news roundup! In California, there is a growing debate about the balance between coastal protection and housing needs. Pro-housing legislators and advocates are pushing for the erosion of the California Coastal Commission’s authority to promote housing development. On the other hand, some argue that the Coastal Act should apply less rigidly in areas with existing dense development, while others emphasize the importance of protecting coastal resources and addressing climate change concerns. Discover more about this potential erosion of coastal protections in California here. Additionally, find out about the California Housing Finance Agency’s new loan program for first-gen homebuyers, changes in buying and selling homes in California, the trend of privately funded affordable housing, and proposed legislation to strengthen California’s housing laws. Explore the full stories below!
California may erode coastal protections to build more housing – CalMatters
Pro-housing legislators and advocates in California are pushing for the erosion of the California Coastal Commission’s authority in order to promote housing development. Several bills introduced by Democrats aim to limit the commission’s power and regulations, sparking a debate about the balance between coastal protection and housing needs. While some argue that the Coastal Act should apply less rigidly in areas with existing dense development, others emphasize the importance of protecting coastal resources and addressing climate change concerns. The bills reflect a growing focus on reevaluating the commission’s role and finding ways to increase housing supply without compromising environmental sustainability.
Read more about the potential erosion of coastal protections in California
California Housing Finance Agency Launches Loan Program for First Gen Home Buyers – The Sacramento Observer
The California Housing Finance Agency (CalHFA) has introduced the California Dream for All Shared Appreciation Loan Program, aimed at increasing access to home loans and down payments for first-generation homebuyers in underserved communities. With this program, qualified applicants can receive a loan of up to 20% of the purchase price or $150,000, reducing their first mortgage amount and monthly payments. The funds received from homes sold or refinanced will be used to assist future applicants. CalHFA aims to help another 1,600 to 2,000 homebuyers in the second round of the program with additional funding from the California Legislature. Interested individuals can learn more about the program and how to apply on the CalHFA website.
Find out more about the California Dream for All Shared Appreciation Loan Program
Buying and Selling a Home in California Is About to Change: Here’s How | KQED
The National Association of Realtors has settled a major class-action lawsuit that accused the group of inflating commissions for its agents in home sales. If approved by the court, the settlement agreement is expected to reduce the amount Americans collectively pay in real estate agent commissions by an estimated 20%–50%. The settlement requires the association to pay $418 million over four years, change its practices around setting commissions, and give up its right to appeal. As a result, buyers and sellers will have more flexibility to negotiate commission rates with their agents. This change could lead to increased competition among realtors and potentially lower rates for consumers. However, the settlement only applies to certain metro areas and does not include California.
Learn more about the changes in buying and selling homes in California
California Developers Opt for Privately Funded Affordable Housing | Planetizen News
Developers in California are increasingly choosing to finance affordable housing projects privately, bypassing government subsidies to reduce construction costs. While this approach cuts down on “soft costs” and speeds up production, housing advocates express concerns about the long-term affordability and maintenance of these buildings without government oversight. The article highlights the need for increased federal funding for housing vouchers to sustain privately funded affordable housing developments. Recent legislation in California has made it easier for privately financed affordable housing projects to move forward, although many still rely on government funds to operate.
Read more about the trend of privately funded affordable housing in California
State Senator Wants to Put “Fangs” in California Housing Law
California State Senator Scott Wiener has proposed new legislation that would impose fines on cities that fail to plan for more housing. Under the proposed bill, cities would face penalties ranging from $10,000 to $50,000 per month if they violate state housing laws and lose a legal action filed by the state attorney general. The revenue from these fines would be used to fund affordable housing in the respective cities. The legislation aims to create financial incentives for cities to comply with housing laws and streamline the approval process for affordable housing projects. The bill has the support of Attorney General Rob Bonta and is seen as a way to strengthen enforcement of housing element laws in California.
Learn more about the proposed legislation to strengthen California’s housing laws
New bill may boost California AG’s enforcement powers over housing law – CBS San Francisco
A new bill introduced by California State Senator Scott Wiener and Attorney General Rob Bonta aims to give the attorney general more power to discipline local governments that violate state housing laws. Under Senate Bill 1037, the attorney general could seek penalties ranging from $10,000 to $50,000 per month for each violation, starting from the date of the violation. The fines collected would be allocated towards affordable housing in the respective jurisdiction. The bill addresses the need for a more effective penalty system, as current regulations allow cities to evade penalties by waiting the full 60-day compliance period and appealing decisions. The legislation is expected to be heard in committee next month and, if approved, will go into effect on January 1, 2024.
Learn more about the proposed bill to enhance enforcement of housing laws in California