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| UCLA report chiping in: evaluation the effects of LA's citywide housing incentive program on neighborhood development potential, mary cummins, real estate appraiser, los angeles, california, zoning, housing crisis, homelessness, homeless, rezoning, city wide housing incentive program CHIP |
"At any given moment, thousands of people in L .A. County experience homelessness, but many thousands more teeter on its brink, living precariously in the region’s unforgiving housing market. Despite considerable public investments in supportive housing and homeless services, the county has thus far failed to reduce homelessness. This lack of progress can partly be attributed to inattention to the upstream determinants of homelessness. A combination of local, state, and federal efforts have helped a growing number of unhoused people return to stable housing, but we have made little headway combatting the conditions that put people at higher risk of homelessness in the first place. We have successfully increased the outflow from homelessness, but we have failed — so far — to reduce the inflow into homelessness."
Back in 2022 Los Angeles City approved a plan to rezone to accommodate more housing. It included rezoning some single family residential R1 zones for multifamily use i.e. two plus units.
"CHIP differs significantly from the rezoning plan proposed in the city’s certified housing element, adopted by the Los Angeles City Council in 2022. In its housing element, the city outlined strategies for allowing up to 1.3 million newunits across 15 programs, including some that would rezone properties currently zoned only for single-family detached housing. As part of CHIP, the city substantially revised these original rezone programs and removed proposed changes to single-family zones, which account for 74% of residentially zoned land in LA (Menendian et al., 2022). This departure from the adopted housing element has important implications for the city’s ability to meet itshousing production goals and to affirmatively further fair housing (AFFH) —as mandated by state and federal law —by increasing housing options in well-resourced, opportunity-rich neighborhoods."
The UCLA report states that the current CHIP approved plan will not produce enough housing to meet the city's goals or needs. The main reason is because rezoning is one thing but developers actually building more housing units in those areas is another thing. It doesn't make economic sense to build in the areas the city with these mandatory requirements. CHIP offers bonuses if developers deed restrict some units for low income. This forces developers to pay to build and subsidize housing for poor people on their privately owned land. They lose money doing this so it doesn't make economic sense. It's like telling developers they must build housing with both hands tied behind their back. The issue is NIMBYs telling the city they don't want more housing in their areas because they fear traffic, lack of parking, yadda yadda... Lower income people tell the city not to allow more housing unless they get free or almost free housing. UCLA believes in order to meet the housing needs of the city the city must go back to just allowing more housing with fewer restrictions in single family and other zones.
I totally agree with this and have been saying this for years. Part of homelessness is lack of sufficient number of housing units. Had the city allowed more housing years ago, we'd have enough affordable housing today. Yet they continue to not allow enough housing to be built. This just makes housing even more expensive and scarce. Then when housing is too expensive they enact more rent control which makes the problem ten times worse. Rent control helps a very few people short term at the cost of loss of more housing for everyone in the future. Rent control ends up hurting everyone including tenants, cities, property owners and developers.
https://escholarship.org/uc/item/7xf2b3j0
Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.
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