California's recent legislative changes exempt housing projects up to 85 feet tall from public review under the California Environmental Quality Act (CEQA), benefiting small to midsize urban housing developers. This 'infill' development primarily targets multifamily housing in Los Angeles, excluding high-rise commercial and new single-family homes. The changes have heightened tensions between infill builders and the Building Industry Association (BIA), which voiced concerns about increased costs and impacts on housing availability for working families. Despite the BIA's criticism, they acknowledged positive aspects of the legislation, stressing the need for further collaboration.
Small to midsize urban housing developers are the winners in California's rollback of environmental protections this week. The pair of budget trailer bills that Gov. Gavin Newsom signed into law Monday night exempt housing projects up to 85 feet in height from public review under the California Environmental Quality Act (CEQA), so long as they're located in existing neighborhoods.
The exemption will apply broadly to multifamily housing construction in Los Angeles and its sprawling suburbs, but not to high-rise commercial projects—or new single-family subdivisions. The details of the adjustments to CEQA appear to be deepening a rift in the industry between infill builders and the Building Industry Association (BIA).
The BIA put up a fight against the CEQA adjustments that have sparked glowing reports in national and local media. The trade group ran a last-minute ad campaign that labeled the bill package a housing killer and warned that it would drive up costs of residential development throughout California.
While the California Building Industry Association appreciates the positive steps taken in the recently signed budget trailer bills, AB 130 and SB 131, we remain committed to working with the governor and legislature on cleanup language that might allow for better collaboration between the interests of urban developers and larger construction firms.
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