Grades are in

"When Gov. Gavin Newsom signed two budget trailer bills that scaled back an environmental law that's been a frequent scapegoat for the state's housing woes, it seemed like an offering of sorts to the real estate world. Was this recognition that California understood how badly regulations were getting in the way of investment and development? That the state would become a friendlier place to build? From your lips to God's ears, Cityview Chief Executive Sean Burton said."

"But reforms to the landmark California Environmental Quality Act (CEQA) are only one piece of the puzzle when it comes to mending the relationship between the public sector and real estate industry, especially after the City of Los Angeles generated even more friction with Measure ULA, which boosted property-transfer taxes on high-end deals. This worsened the strife with players in the city, who've pushed back against it since day one. Los Angeles Mayor Karen Bass, who once said she was considering a pause on the tax, appears to have backtracked."

"So it makes sense that the industry is squinting for any hint of a changing tide. There have been other attempts to make things better, but so far nothing has come as close as the pitch to fix CEQA — which insiders weren't even expecting, since it failed to pass through the legislature before being tacked on to the governor's budget bill at the last minute, Sheri Bonstelle, a real estate attorney, said."

Governor Gavin Newsom signed budget trailer bills that scaled back parts of the California Environmental Quality Act (CEQA). Real estate stakeholders viewed the changes as a potential easing of regulatory barriers to investment and development, but observers cautioned that CEQA reform is only one element of needed fixes. The relationship worsened after Los Angeles implemented Measure ULA, increasing property-transfer taxes on high-end deals and prompting industry pushback. Mayor Karen Bass reportedly retreated from considering a pause on the tax. CEQA, enacted in the 1970s, has been blamed for blocking development and contributing to the state's housing crisis.

Read at therealdeal.com