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Eight Solutions to Boost Housing Production

California’s housing production continues to fall dramatically short of what’s needed to address the state’s ongoing housing crisis and meet future demand.

According to the California Department of Housing and Community Development, the state must build 180,000 new homes each year to keep pace. Yet, over the past decade, production has averaged fewer than 80,000 homes annually—and current rates remain well below the mark. (See housing production trends from 2005–2022.)

Policy Recommendations to Accelerate Housing Production: The California Building Industry Association has identified a range of actionable policy solutions—some that involve straightforward enforcement of existing laws, and others that require broader reforms to streamline construction and increase housing supply. We urge the Legislature to take meaningful action to remove obstacles to homebuilding and ensure California can deliver the homes needed to achieve Housing for All.

Low-Cost, High-Impact Policy Fixes (“Easy Wins”):

  1. Enforce timely issuance of Certificates of Occupancy
    Ensure jurisdictions comply with the California Building Code by issuing Certificates of Occupancy promptly. This low-cost step helps move completed, approved homes to market more quickly.
  2. Enforce partial release of subdivision bonds under the Subdivision Map Act
    Require jurisdictions to follow existing law by releasing subdivision bonds in a timely manner, reducing financing costs and speeding up project completion.
  3. Authorize HCD enforcement of existing housing laws
    Grant the California Department of Housing and Community Development the authority to enforce state housing laws. The potential for investigation and loss of funding will encourage greater local compliance.
  4. Require plaintiff identification in CEQA lawsuits
    Increase transparency by mandating the disclosure of the individuals or entities filing lawsuits under the California Environmental Quality Act (CEQA).

Broader Structural Reforms (“Heavier Lifts”):

  1. Local Impact Fees
    Cap or scale fees so they reflect the true cost of providing services for new developments. Eliminate or reduce “discretionary” developer requirements that drive up costs and delay projects.
  2. RHNA (Regional Housing Needs Assessment) Reform
    Link RHNA compliance to state and regional funding to incentivize local governments. Align RHNA targets with job growth data to prioritize housing near employment centers. Measure compliance based on actual housing units approved and built—not just planning metrics.
  3. CEQA Litigation Reform
    Limit repeated litigation: Once a project has corrected deficiencies identified through CEQA litigation, it should be protected from further CEQA-related lawsuits on the same grounds.
  4. Local Planning and Approval Reforms
    Standardize and simplify building codes and design guidelines to reduce delays and promote more efficient development. Require timely, meaningful responses from local agencies on submitted plans and permit applications. Prohibit the downsizing of already-approved projects, which undermines housing capacity and investor confidence.
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