California Law Grants Religious Institutions and Nonprofit Colleges the Ability to Develop Low-Income Housing

In a groundbreaking move to address California’s ongoing homeless crisis, a new law signed by Governor Gavin Newsom will allow religious institutions and nonprofit colleges in the state to repurpose their underutilized properties, including parking lots, for low-income housing. This legislation aims to combat the pressing issue of homelessness by rezoning land owned by religious institutions, such as churches, mosques, and synagogues, as well as nonprofit colleges, to make room for affordable housing initiatives.

Starting in 2024, these institutions will gain the ability to bypass many of the local permitting and environmental review regulations that have historically posed significant challenges and delays in the development of housing projects. However, it’s important to note that this law comes with a sunset clause, meaning it will be in effect until 2036.

It’s no secret that California is home to a significant portion of the United States’ homeless population. The severity of the crisis has spurred a movement among religious institutions in the state, often referred to as “yes in God’s backyard” or “YIGBY.” This movement, embraced by cities across California, is committed to converting surplus land into housing solutions for the homeless. Numerous projects under the “YIGBY” initiative are already in progress.

One of the primary obstacles faced by churches and colleges when trying to repurpose their land for housing is the zoning restriction that doesn’t permit residential use. Advocates for this new law argue that it will provide these institutions with a valuable tool to create much-needed housing in the state. A study conducted by the University of California, Berkeley, Terner Center for Housing Innovation revealed that religious and higher education campuses in California have over 170,000 acres of land eligible for repurposing under this legislation.

However, it’s important to note that several cities in California have opposed this law, citing concerns that it would diminish local control over housing developments. Nonetheless, Governor Newsom’s administration remains determined to address the state’s housing crisis, as demonstrated by his support for another housing bill authored by Senator Scott Wiener.

The additional housing bill extends the life of an existing law that simplifies rules for housing projects and has resulted in the construction of thousands of homes aimed at alleviating the housing shortage crisis in California. Senator Wiener expressed optimism about the future of housing production in the state, emphasizing that the era of rejecting housing projects is coming to an end. The original law, which took effect in 2018 and was set to expire in 2026, allowed housing developers to bypass many local permitting processes for multifamily housing projects in cities that fell short of the state’s mandated housing goals. This law significantly accelerated the construction of over 19,000 homes, with approximately 60% of them being designated as affordable housing.

The new legislation extends the existing rules by an additional decade. Notably, it eliminates the requirement to hire “skilled and trained workers” for specific projects, a provision often sought by powerful construction trades unions. Instead, it mandates that workers be paid the prevailing wage, which is the average wage paid to workers, laborers, and mechanics in a particular area. In response to opposition from labor groups, Senator Wiener introduced amendments to reinforce labor regulations on larger projects.

It’s essential to highlight that this bill faced strong opposition from the state Coastal Commission and environmental groups. Their concerns were primarily centered on the removal of exemptions for streamlined housing development in coastal areas. Detractors worried that this would lead to housing projects in areas prone to sea-level rise or wildfires, potentially resulting in luxury apartments rather than affordable housing along the coastline. Senator Wiener collaborated with the commission to clarify that the legislation would not apply to environmentally sensitive or wildfire-prone regions, ultimately gaining the commission’s support.

Nonetheless, a number of cities in Southern California continued to object to the bill, contending that it would infringe on local control over housing initiatives. Despite the opposition, Governor Newsom signed both of these bills on the same day that his administration, in collaboration with Sacramento leaders, announced the location of the first group of 1,200 tiny homes, which he has pledged to build in four cities to address homelessness. This proactive approach underscores the state’s commitment to tackling its housing and homelessness challenges.