Chris Elmendorf Profile picture
Oct 13, 2025 26 tweets 6 min read Read on X
SB 79 Thread #5.2: Advice for Leg, longer term.

tl, dr: I agree w/ @mnolangray that Leg should focus on (1) lowering construction costs, and (2) protecting incumbent tenants w/o blocking redevelopment on fair terms to tenants.

I also think (3) that...

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Leg should probably try to accommodate the most passionate & deep-pocketed NIMBYs, who might otherwise bring the whole framework crashing down.

Worst case is a "Prop 13 for land use" ballot measure.

/2
Short of a nuclear ballot-measure, NIMBY opposition to SB 79 could induce cities to pass local measures that hinder multifamily housing development across the board, not just SB 79 projects.

/3
While SB 79 prevent local gov'ts from enacting development controls that discriminate against SB 79 projects, it doesn't bar local measures that impair development everywhere.

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I'm particularly worried about new demolition controls, but NIMBY cities may also respond w/ higher IZ; infeasible minimum-density, min.-height & min.-amenity requirements (see: Texas); higher impact fees; costly building-material mandates; & more.

/5

texastribune.org/2025/09/03/tex…
In CA, unlike TX, such evasive tactics will be checked by the Housing Crisis Act's "no backsliding relative to 2018" rule.

But it's not clear how far this limitation reaches, and city councils under pressure from NIMBYs may test the limits.

/6

Extant "protections for NIMBYs" are a little weird.

If your lot is part of a subdivision w/ covenants that restrict development to SFHs, no SB 79 project can go up nearby. (In all likelihood, the covenants renew automatically every 30+ years.)

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But if your lot is not part of covenanted subdivision (generally true of older homes), you're "protected" against SB 79 projects only if you can persuade city council to landmark all the houses nearby -- or to pass demo controls or cost-prohibitive dev. standards.

/8
I don't think this disparity between covenanted & non-covenants properties is warranted & I doubt it does a great job distinguishing the most NIMBY neighborhoods from n'hoods that are more tolerant.

(Covenants reflect age of subdivision, not current preferences.)

/9
To fix it, the Leg could:
- (1) make HOA covenants lapse if not affirmatively renewed by supermajority vote of homeowners once a generation;
- (2) give cities more leeway to remove parcels from SB 79 w/o pretextual landmarking or demo controls

/10
E.g., Leg could authorize cities to prohibit SB 79 projects on (say) up to 25% of land area within SB 79 zones, while banning local demo controls in the rest of the SB 79 zones & requiring cities to reallocate the forgone density elsewhere.

/11
Leg could also condition SB 79 exclusions on Houston-style opt-out petitions, to ensure that they respond to actual neighborhood concerns, rather than city councils projecting their own NIMBY ideology.

/12

worksinprogress.co/issue/houston-…
Leg could also soften NIMBY opposition by authorizing cities to ban street parking for residents of SB 79 projects, or to convert residents' street-parking permits into tradable property.


/13slowboring.com/p/can-we-nimby…
Any NIMBY accommodation should be paired with measures that strengthen SB 79 in the non-exempted areas. E.g.:
- ban local demo controls (as noted)
- cap local minimum density requirements
- clarify that for 7th cycle, SB 79 implementation ordinances & "Eckhouse plans"...

/14
must, like a housing element, be approved by HCD or court to forestall direct implementation of GC 65912.157, x.com/CSElmendorf/st…
- authorize HCD to preempt local dev. standards that unreasonably impair the financial feasibility of SB 79 projects, x.com/CSElmendorf/st…

/15
What about those other big cans of worms, tenant protections and the cost of building?

/16
On tenant protections, I'd love to see a grand bargain where Leg enacts a rental registry (long opposed by @caanet) -- and requires tenant-buyout agreements to be registered -- in exchange for allowing redevelopment of any property s/t a duly registered buyout.

/17
Leg could impose other procedural protections for tenants, e.g., notice of SB 330 rights prior to buyout, cooling off period, etc.

I also think Leg should authorize buyouts by supermajority vote of tenants, so that small minorities can't stymie tenant majorities.

/18
Tenant-protection law should prevent landlords from exploiting asymmetric info (e.g., about value of buyout or tenant rights), and cushion tenants against economic shocks, not lock bad land uses into place.

/19


The anti-buyout status quo is lose-lose-lose: bad for current tenants, bad for future tenants, and bad for landlords.

The fact that a few advocacy orgs like it is a poor reason to maintain it.

/20
Finally, the cost of building!

There's so much to be said about it but only 5 tweets left in this thread.

/21
Big picture, I would love to see:

- Incorporation of the SB 35 / AB 130 labor deal into SB 423 & AB 2011, so that ministerial projects can be done w/ market-rate labor if project isn't a high-rise.

/22
- Cost-benefit audits of building codes.
(@GavinNewsom issued a good exec directive about cost of building but I don't know that anything has come of it, )

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- Direct updating of the building code by the Legislature with respect to narrow, priority issues (e.g., single-stair, elevator size). As other states are doing!

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- Replacement of impact fees & unfunded IZ mandates with parcel taxes.
(I'll be writing more about this soon so stay tuned.)

/end

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More from @CSElmendorf

Dec 31, 2025
New decision from CA Court of Appeal on the fee-shifting provisions of AB 1633 has big implications for NIMBYs' incentive to challenge housing approvals under CEQA & beyond.

This one belongs in a Law of Abundance casebook.

🧵/24
law.justia.com/cases/californ…Image
Context: As part of the 1970s revolution in admin law, states & the federal gov't actively encouraged self-appointed "private attorneys general" to sue, via attorneys' fee bounties.

/2
Asymmetric fee-shifting provisions were written into scores of public laws: If a plaintiff challenging a gov't decision wins, the gov't has to pay for the plaintiff's attorney; if the plaintiff loses, they don't have to pay for the gov's attorney.

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Read 25 tweets
Dec 30, 2025
"For a typical mid-rise apartment in San José, construction costs can exceed $700k–$900k per unit."

I 💯% agree w/ @MattMahanSJ that reducing construction costs should be a top priority for 2026 -- and that this is mainly a job for the state legislature.

🧵/22
Reason #1. CA's fiscal constitution + local political incentives push local govs to extract "value" from development w/ impact fees, IZ & transfer taxes.

This drives up the cost of building enormously.

/2
The state leg should preempt most such fees, IZ, & taxes, ***and create a substitute source of local revenue.***

My preferred alternative: a state parcel tax assessed on the "net potential square feet" or "net potential units" created by upzoning pursuant to state law.

/3
Read 22 tweets
Dec 28, 2025
Could L.A. really land in the Builder's Remedy penalty box, just for f'ing around with a single low-income housing project which a nonprofit developer wants to build on city-owned land?

Yes.

A quick explainer🧵.
In October, @California_HCD sent L.A. a sharply worded letter, warning that the city's housing element had relied on the Venice Dell project both as a "pipeline project" and as part of the city's strategy to "affirmatively further fair housing."

/2

hcd.ca.gov/sites/default/…Image
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The HCD letter also flagged five "policies" and two "programs" in L.A.'s housing element that per HCD should "facilitate the project."

The city's course of action has been "inconsistent with these policies."

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Read 11 tweets
Dec 20, 2025
Cooking in San Diego: A turquoise, 23-story test of the Permit Streamlining Act's new-and-improved "deemed approved" proviso.

This could turn into a big constitutional battle.

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Enacted in 1977, the PSA put time limits on CEQA and other agency reviews of development proposals.

If an agency violated the time limits, the project was to be "deemed approved" by operation of law. Wow!

It proved wholly ineffectual.

/2
As @TDuncheon & I explained, courts first decided that the Leg couldn't possibly have meant for a project to be approved before enviro review was complete.

Ergo, CEQA review must be finalized before the deemed-approval clock starts ticking.

/3

papers.ssrn.com/sol3/papers.cf…
Read 23 tweets
Dec 5, 2025
In the topsy-turvy world of CA Density Bonus Law:

- San Francisco almost certainly must approve this 25-story project on a site zoned for 4 stories

- The city's new ordinance deregulating density in "well-resourced areas" will operate as de-facto downzoning of such sites

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This project's site is zoned for retail use and is currently occupied by the Marina Safeway.

The zoning classification also allows residential use at density of 1 unit per 600 sqft of lot area or density of nearest residential district, whichever is greater.

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The nearest residential district, RM-4, allows density of 1 unit per 200 sqft of lot area.

That translates into 567 units on site.

Developer proposes to build 790 units, which requires a 39% density bonus (790/567 = 1.39).

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Read 21 tweets
Nov 19, 2025
Bharat's substack response ⤵️ to my thread about his & @nealemahoney's op-ed has brightened my day.

So refreshing compared to the snarks (and vivid expressions of desire for my assassination) conveyed on this platform.

A few notes on possible paths forward.

🧵/13
By describing the credible commitment problem (the need to reassure developers of new housing or energy that their project won't face price controls for a very long time) I didn't mean to imply, as some critics on the right insist, that the problem is insurmountable.

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I think the problem can be greatly mitigated:

1. By offering DC-style "certificates of assurance" to developers, i.e., recordable contracts for compensation if the project is subjected to price controls within a defined period of time.

/3

Read 14 tweets

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