New federal housing law may have significant effect on California and San Diego

It’s the largest single piece of housing legislation to come out of Congress since at least 1990.

SAN DIEGO — The largest single piece of housing legislation to come out of Congress since at least 1990 is now law. The 21st Century Road to Housing Act officially became law on July 11. 

President Donald Trump neither signed nor vetoed the bipartisan legislation, but it passed the Senate 85-5 on June 22 and the House 358-32 on June 23.

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The sweeping housing package is meant to kick-start housing construction across the county and features a grab bag of regulatory tweaks, pilot programs, and targeted loans and grants. 

“It’s 47 different articles in this legislation, and no single one of them is the magic bullet to change the housing market. But in aggregate across the entire nation, they’re going to have an impact. And, most importantly, over time,” Stephen Russell, the President and CEO of the San Diego Housing Federation, said. 

He told CBS 8 that the U.S. is short millions of units needed to bring housing costs down to affordable levels. A disproportionate number is needed in California’s urban areas, including San Diego. 

Among the new provisions that could have a significant effect on California: 

Federal grants can be awarded to cities that build more housing, and likewise, taken away from those that don’t. A regulatory change aimed at making pre-built housing cheaper.A program to speed up long-term recovery after natural disasters, such as wildfires.

“It incentivizes communities to streamline housing production and to make the zoning, land-use designations, more conducive to producing more housing,” Russell said.

Russell said the City of San Diego’s existing housing stock is limited, a classic supply and demand scenario. 

“…And so much so that housing that is naturally affordable to households– housing that is maybe 30-40 years old that used to rent for very low prices– the market has driven the prices up considerably,” Russell said. “We believe the provisions of this law, first of all, create the conditions for more housing production. And, most importantly, I think it demonstrates that there is a hunger and a need of our entire electorate for the solutions to the housing crisis.”

While this legislation is being applauded, experts argue that relief won’t happen overnight. 

Russell told CBS 8 that in maybe two or three years down the line, we will see benefits materialize gradually.