California Law Allows Religious Institutions and Nonprofit Colleges to Convert Properties into Low-Income Housing

In a bid to combat the ongoing homeless crisis, California has passed a new law that permits religious institutions and nonprofit colleges to convert their properties into low-income housing. The law, signed by Governor Gavin Newsom on Wednesday, rezones land owned by these institutions, such as churches, mosques, and synagogues, to allow for affordable housing. This move aims to address the state’s dire housing shortage and homelessness issue, as California is home to nearly a third of all homeless people in the U.S.

Starting in 2024, religious institutions and nonprofit colleges will be able to bypass most local permitting and environmental review rules, which are often costly and time-consuming. This exemption will be in effect until 2036. The law, known as “yes in God’s backyard” or “YIGBY,” has already sparked a movement among religious institutions across the state, with numerous projects already in progress.

However, churches and colleges have faced significant challenges in converting their surplus land and underutilized parking lots into housing due to zoning restrictions. This new law will provide them with an additional tool to help meet the demand for affordable housing in the state. A recent study by the University of California, Berkeley estimated that religious and higher education campuses in California have over 170,000 acres of land that would be eligible under this bill.

While the law has received support from advocates who see it as a necessary step towards addressing the housing crisis, several cities have expressed opposition, arguing that it takes away local control over housing developments. Nevertheless, Governor Newsom believes that these measures are essential to ramp up housing production in California.

In addition to the religious institution housing law, Governor Newsom also signed another high-priority housing bill authored by Senator Scott Wiener. This bill extends the life of a landmark law that streamlines rules for housing projects, resulting in the construction of thousands of homes aimed at alleviating the state’s housing crisis.

The original law, which took effect in 2018 and is set to expire in 2026, has already fast-tracked the development of over 19,000 homes, with around 60% of them being affordable housing. The new law would extend the existing rules for another 10 years. It also removes the requirement to hire “skilled and trained workers” for certain projects, a provision sought by construction trades unions. Instead, workers will be paid the prevailing wage for their area.

The bill faced opposition from labor groups concerned about labor regulations, as well as from the state Coastal Commission and environmental groups who worried about the impact on coastal zones. However, Senator Wiener worked with the commission to clarify that the legislation would not apply to environmentally sensitive or wildfire-prone areas. The commission withdrew its opposition, but some cities in Southern California continue to oppose the bill, arguing that it undermines local control.

Governor Newsom signed these bills on the same day that his administration and Sacramento leaders announced the location of the first group of 1,200 tiny homes he has pledged to build in four cities to address homelessness. This demonstrates his commitment to tackling the homelessness crisis through various initiatives.

Overall, these new laws and initiatives aim to provide more affordable housing options and streamline the development process in California. While they have faced opposition from some cities and interest groups, advocates believe they are critical steps towards addressing the state’s housing crisis and homelessness problem.

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