FOR IMMEDIATE RELEASE

AFFORDABLE HOUSING BUILDERS AND LENDERS DISAPPOINTED BY LACK OF COMMITMENT TO ADDRESSING STATE’S HOUSING CRISIS

Sacramento, California –The California Council for Affordable Housing, comprised of lenders, developers, management companies and other advocates of affordable rental housing production, expressed its disappointment and frustration today with the announcement by labor and environmental groups that they will not participate further in any negotiations with Gov. Brown on the By-Right Development legislation to increase rental housing production to bring supply in line with demand.

Given the shortfall of more than one million units in rental housing, according to the California Department of Housing and the Legislative Analyst’s recent report, this is not the time for tinkering with and delaying the passage of By-Right Development proposed by Governor Brown. We must move California forward on increasing the supply of rental housing to meet the ever increasing demand and put the brakes on never ending rent increases.

Patrick Sabelhaus, Executive Director of CCAH, emphasized that the City of Los Angeles has had By-Right Development of rental housing for some 30 years or more and has not suffered any of the implied environmental problems or protection of tenants’ rights expressed by some of the proposal opponents

“The By-Right ordinance of the City of Los Angeles is similar to what other jurisdictions should adopt given its successful increase in rental housing production over the years with no harm to the environment and increased jobs for construction workers,” Sabelhaus said.

CCAH also stated that since the days of the New Deal under President Roosevelt, prevailing wages have been required for projects involving public funds and the By-Right Development bill does not include any required public funds but merely expedited processing of rental housing development approvals.  As such, prevailing wages should not be imposed.

“Governor Brown’s proposal is not only reasonable but absolutely essential to overcome the shortfall of rental housing throughout all of California.  If By-Right is not passed and implemented by the legislature, then all renters in California will suffer further rent increases and dislocation.  And, most noteworthy, construction jobs will suffer,” said Sabelhaus.

The California Council urges the legislature to move forward with the By-Right Development bill so that all Californians will eventually have access to adequate housing at reasonable affordable rents.

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