(The Center Square) – A new law taking effect next year would require the state’s biggest cities to bring some life into downtowns to the tune of roughly $1.48 million to taxpayers.
The law – Assembly Bill 2074 – introduced by Assemblymember Matt Haney, D-San Francisco, requires big cities to designate transit hub districts in high-density downtown areas to serve taxpayers who live, work and take transportation downtown.
The new law also requires the California Housing Finance Agency to look at the prospect of a housing construction loan and financing program. The law requires the submission of a report to the Legislature by March 1, 2028.
The California Housing Finance Agency would have to include an analysis of existing construction loan programs, recommendation for how a taxpayer-funded construction loan program would function and an analysis of taxpayer-funded state resources needed to establish a loan fund to build housing in California’s downtowns, according to the bill analysis. The study itself would cost California’s taxpayers $250,000 to conduct and $236,000 a year for a staff member at the California Department of Housing and Community Development. Costs also include about $1 million for the California Labor Commissioner’s Office to oversee construction of housing projects in big cities’ downtown neighborhoods.
The bill was introduced in the Legislature earlier this year to find ways to create more high-density housing in California’s downtowns. The law also requires more housing to be built near popular public transportation routes, according to a legislative analysis of the bill.
“California’s downtowns are at a crossroads,” Haney wrote in author comments included in the bill analysis. “In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure.”
Haney did not respond to The Center Square on Friday.
Supporters of the new law, like California Yes in My Backyard, said businesses in California’s downtowns have struggled in recent years after decades of workers living in suburbs and only coming downtown to work. By bringing more people back into downtown hubs to live, big cities will see economic revitalization.
“For decades, we have really focused on housing developments in more suburban areas because it’s easier, it was cheaper and it was backed by the federal government,” Muhammad Alameldin, director of growth for California Yes in My Backyard, told The Center Square on Friday. “We don’t have as much available land and suitable commutes for people unless they want to drive two hours to a job center. Our downtowns are our job centers.”
According to a study published by the Institute of Governmental Studies at University of California, Berkeley, the COVID-19 pandemic emptied many already-struggling downtowns across the country as workers and taxpayers were forced to work remotely, resulting in many boarded-up offices buildings and commercial spaces. That also includes California’s major metropolitan areas, including San Francisco, Sacramento and Los Angeles.
“This is the kind of policy that big cities need right now,” San Diego Mayor Todd Gloria said in an announcement from Haney’s office. “It makes it easier to build more affordable housing while directly supporting good-paying jobs. In San Diego, we’ve done the work to get housing built faster, and we’re seeing the results. This bill takes the next step by turning underused spaces into homes near jobs and transit.”
Gloria, as well as Los Angeles Mayor Karen Bass, San Jose Mayor Matt Mahan and Sacramento Mayor Kevin McCarty did not respond to The Center Square on Friday. The office of San Francisco Mayor Daniel Lurie declined to comment for this story. Several state politicians who are members of the Select Committee on Downtown Recovery also did not respond to The Center Square before publication time on Friday.
