The Defeat of California’s SB-827

Sad to report that a promising and important piece of legislation went down to defeat this week in the California State House. SB-827 , placed in the hopper by Senator Scott Wiener (D-San Francisco), would have superseded municipal zoning ordinances to permit five-story housing development within half a mile of most railroad stations, and within a quarter mile of certain major bus routes.

California, of course, has some of the highest home prices in the world. More than its booming tech economy, a resistance to new development, combined with decades of population growth, has driven the crisis. Local political resistance comes from two sources: sentiment and shrewdness. Between residents who hate change, and those who realize that their own property values are inflated (at least while the music keeps playing) by an artificial shortage, it is usually possible to muster opposition to any new proposed development if the permission-granting institution is only accountable to municipal residents. SB-827 would have overridden the local political resistance to new development in the parcels most able to support higher densities than what is presently allowed.

The shortage of affordable housing in the metropolitan regions of California — as in the regions surrounding New York City, Washington, and several of the capitals of Western Europe — is perhaps the most salient driving force behind rising inequality in the West. High housing costs block people from moving to the cities where the opportunities exist; they shut people out of opportunities to build equity in real estate; and they enshrine the economic advantages of those who inherit, or can afford to purchase, real estate in hot markets. Ryan Avent wrote about this phenomenon at length in his well-written piece, The Gated City. LT has belabored it for years. And my recent article advocating for a left-right consensus on zoning reform is focused on the costs of bad zoning policy.

The good news is that, although SB-827 has been defeated, it has also significantly raised the profile of the nexus between zoning and housing supplies. The expectation (and certainly my hope) is that a revised version of the bill will be presented soon. It is a hopeful sign that in the California State House, even the bill’s opponents were forced to concede that the diagnosis was accurate, even as they rejected the prescription. This issue is not going away, and neither is the impetus to address it. I don’t think we can (or should) be returning to a Victorian-era, common-law land use policy, where bare-bones building codes, private covenants, and nuisance lawsuits are the only restraints on private development. BUT, we do need to move in the direction of significantly liberalizing the density restrictions on housing development in competitive real estate markets. SB-827 would have been a major step in that direction; and with the heightened awareness that its debate has caused, creative variations on the proposal can now be tested in the laboratories of democracy.

Only with a lot more supply — new units — can the cost of housing be returned to some sort of equilibrium with people’s incomes. And only with such a change can we hope to create in the economic centers of the West a tangibly more egalitarian economy.

Time for a Left-Right Consensus on Zoning Reform?

Early “use-district” map of Midtown New York. Source: NYPL.

My latest piece — in which I venture into more political writing for TAC — argues that the failures of Euclidean zoning antagonize some of the most fundamental priorities of American traditions on both the Left and the Right; and that there may be an opening for some agreement between people with a broad range of philosophies. For example:

During the postwar era—when suburbs and cars were the way of the future, and cheap, undeveloped land surrounded all our cities—the postwar type of zoning seemed a reasonable trade-off for many conservatives. While it regulated the private land market, it was locally enacted. In addition, its intent was to protect a broad base of individual, private owners.

Today, things have changed. Many of our most prosperous regions have been effectively built-out—few undeveloped lots remain—and laws preserve building patterns from the less populous 1950s and 1960s. This in turn has created an artificial shortage of housing units to which local markets cannot respond. Property owners who could benefit from making more intense use of their parcels find their hands tied by local zoning. Families and individuals are priced out of regions where opportunities are strongest. Personal potential and mobility are limited. And local governments become powerful fiefdoms, selectively approving lucrative projects for (often) politically-connected developers while preventing smaller owners from similarly maximizing returns.

Meanwhile, from the Left:

If local zoning had simply permitted [working-class neighborhoods in major cities] to absorb growth as it occurred, it is likely many longtime residents would never have been priced out by rising rents or property taxes. This means that more young people could have remained in their home communities and benefited from deep ties to family, social networks, and local wealth; and space could also have been made for new immigrants (and internally-migrating Americans) on much friendlier terms. Instead, our inability to accommodate change at the neighborhood level has resulted in the attenuation of countless social ties; the loss of myriad old communities; and an increased degree of hostility and resentment between competing, but similarly powerless groups, over space that never needed to be so scarce. If anything should outrage even the most nominal leftist, it is a bureaucratic policy that pointlessly pits the American working class against new immigrants over something as fundamental as the need for decent housing.

Feel free to join in the discussion at the bottom.

Single-Family Houses and the Affordability Crisis

A zoning map from East Rockaway, New York, shows the abiding prevalence of single-family housing zones (Residence A) in a highly competitive land market.

This Times article, I think, really takes aim at the largest zoning-related cause of the housing crisis. Single-family neighborhoods will have to give way to multifamily development, one way or another, if we are ever going to build enough housing units to absorb demand in the places where economic opportunity exists. The California law facilitating “granny flats” is one step in the right direction. New Jersey’s Mount Laurel doctrine is based on a prescient, 1970s recognition of the exclusionary role of zoning. (Unfortunately, it has not done nearly enough to counter the zoning-driven shortage of affordable housing, especially in Northern New Jersey.

What other measures will come, based on the principle (which we have often recited) that restrictive zoning is creating artificial housing shortages? Innovation in this realm cannot happen soon enough. At some point, the dam is going to break. There will either be more housing; or there will be a dampening of the regional economies in places that cannot provide a housing equilibrium. What worries me, next, is that the artificial shortage of housing may have become such a chronic, long-term situation in our most affluent regions that we may have reached a point where the economy is dependent upon an artificial shortage being preserved.

Zoned for single-family.

That is to say, so many mortgages have been written on the assumption that astronomically high prices are stable; so much private wealth is now sunk into ultra-high-cost real estate. If the regulatory barriers came down, and builders were able to begin to catch up with market demand in places like New York City and California, then how much wealth would gradually begin to evaporate as prices trended toward a healthier equilibrium? The saving grace is that — absent a watershed court decision — the gears of this change will probably be quite slow to turn.

 

California’s Radical Experiment: Granny Flats

Most would not be as fancy as Alexandre Dumas’.

Driving home from the train station on a recent night, I heard this piece on NPR’s Marketplace: a story about a recent California statute that makes it significantly easier for homeowners in that state to develop additional units on their property. Here’s a link to a memo from the Department of Housing and Community Development, describing the changes. Among other things, the new statute overrides certain off-street parking requirements, which can preclude new units that would otherwise be permitted under zoning rules. These requirements are particularly onerous in large cities where public transportation is a viable option — and this law takes aim, specifically, at requirements within walking distance of transit. Of course, this development is just a small step toward achieving a land marketplace that is actually allowed to be responsive to market demands, rather than legal ones; but I think it is a very important one.

As early as the mid-1970s, the primary cases in New Jersey’s Mount Laurel doctrine began to lay out all of the major land use regulatory devices that have stifled the development of resourceful housing options since the early 20th century. Getting rid of unnecessary off-street parking requirements, and taking a publicly favorable stand toward in increase in the number of units in heavily-regulated suburban neighborhoods, are both major steps toward dismantling the regulatory morass that has been strangling housing development as the amount of raw, zoned land has dwindled throughout our major metropolitan areas. This is an important step in the right direction. Would be interested in hearing from people who would like to see a similar bill in New Jersey.

One of the most important takeaways from the NPR story was its hard evidence of pent-up demand for smaller, less-expensive housing units in pricey California. Local builders and contractors who specialize in the construction of small homes cannot keep up with demand. Their schedules are full for months into the future.

Safety Codes, Politics, and the Crowding of Old Manhattan

‘Old law’ tenements on New York’s Lower East Side. Theo Mackey Pollack.

My recently published piece highlights how architects and builders used resourceful massing devices to save scarce urban land when developing many of the Late Victorian apartment buildings in New York City. So I was intrigued by a journal article I recently found that examines the city’s massing in the same period from a different angle: the restrictive height regulations that governed buildings and even, in the pre-zoning era, placed artificial restrictions on builders that may have exceeded the requirements of safety. In Keeping the Tenants Down: Height Restrictions and Manhattan’s Tenement House System, 1885-1930, Professor Michael Montgomery highlights the history of tenement laws and other safety codes in New York City during that time, shining a spotlight on how they limited the ability of the market to respond to the demand for more and better inexpensive housing units.

A bunch of examples of pre-law, old-law (dumbbell/airshaft), and new-law (courtyard) tenements can be found in my photo galleries of Chinatown and the Lower East Side.

Spotlight: Rockaway Blues and Coney Island Rain

Rockaway Blues & Coney Island Rain

Click on the above photo to see my full album.

Just some pictures from a couple of trips to New York City beaches this summer. Honey and I made it to Rockaway Beach on an absolutely beautiful day, in early August. The ocean was about as blue as you could imagine, and the beach has been completely remade with white sand and a new boardwalk, replacing the one that was destroyed during Hurricane Sandy. The little things in the photos that look like pebbles are actually tiny clams, coming in by the thousands that day with each wave, then burrowing their way into the sand when the water went out. It was really something to see.

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About a week later, I wound up on a work-related field trip to the coastal parts of Brooklyn, to observe the progress that my program has made in rebuilding private homes in Gerritsen Beach, Sheepshead Bay, and Coney Island. We were supposed to have a happy hour afterwards on the Coney Island Boardwalk, but it was cancelled because of the intermittent (but occasionally heavy) rain. The neighborhood was eerie and abandoned, with wet streets and empty sidewalks. I thought it was photogenic. It’s interesting to me how many of the individual artifacts of the Coney Island my grandparents would have visited are still there — Nathan’s, Luna Park, the Cyclone; and even more interesting, from a planner’s perspective, that this famous seaside spot has never been redeveloped.

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At the end, I included just a few pictures of the work that our program is getting done in the Sandy-affected parts of Brooklyn. It has been a long process getting to a point where physical progress can been seen in these places. Everyone who has been involved in since 2013 should be proud of what he or she has done, especially the homeowners and tenants who have stuck with it for the long haul.

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New York City: A Century of Zoning

The Equitable Building from Nassau Street. Photo: Theo Mackey Pollack.

The last straw. The 1913 Equitable Building led to passage of the 1916 law.

Today is the 100th anniversary of New York City’s original zoning ordinance. In commemoration of a century of land use regulation (it was also America’s first zoning law), the local chapter of the AIA has published Zoning at 100, which includes a number of essays by top architects, planning officials, and scholars, looking back, and looking forward. (Thanks to H. for the link!) Authors include Robert A.M. Stern, Bill Rudin, Carl Weisbrod, and Gina Pollara. Looking forward to finding some time to read these.

Here are a few more pictures I’ve taken of the massive 1913 Equitable Building, located at 120 Broadway, which put the issue of development massing at the forefront of city politics, and led to the law.

Spatial and Tactile Urbanism

TwoBridgesJune2016My interest in urbanism has recently shifted to absorbing its visual elements and textures. Working in Lower Manhattan has given me a chance to process the city’s massive urban fabric much more deeply. I use my lunch hours to explore, and I try to go slowly. Also, my S.O. lives in Battery Park City, so I’m often here in the evenings. Being in the city has led me to more photography and less writing. I’ve been able to absorb common law urbanism on a spatial, tactile level: walking the old blocks with their pavements of slate, cobblestone, and concrete; studying the varied architecture, from pitched-roof, colonial row houses to futuristic Art Deco skyscrapers; sitting on park benches in triangles and churchyards; touching the iron and stone and cement. It sometimes surprises me how much there still is to discover in this embryonic core of New York, and how the organic city still lives and exerts its patterns, in spite of all the modern forces that promote homogeneity.

Since I’ve had less to say lately, I’m going to start posting some of the pictures I’ve been taking, in place of frequent commentary. I will add links to Flickr albums with particular themes, and will backdate them to (roughly) when the pictures were taken. (I was hoping to embed entire albums directly into the LT page, but that turned out to be more time consuming than I can handle, given the amount of material I’d like to share. So, a cover photo that links to the Flickr album will have to do, for now). Hope my readers enjoy. And please do comment on the photos. : )

One last thing: if you have a Flickr or Yahoo account, please SIGN IN. Doing so will prevent you from having to occasionally click through distracting ads when navigating my albums. Thanks!

Should America’s Condo Laws be Reformed?

432 Park. Source: Macklowe Properties / CIM. (Fair use.)

432 Park. Source: Macklowe Properties / CIM. (Fair use.)

Matthew Gordon Lasner, who teaches at Hunter College, believes they should. (He also provides a nice, succinct history of residential shared-ownership arrangements in the United States.) There has been an uptick recently in the amount of ink spilled about luxury condominiums as cash-stashes, rather than residences. The Times has been running a series called ‘Towers of Secrecy’, and New York magazine had a long-form article last June about the same phenomenon. The statistic that struck me most from the New York article:

The Census Bureau estimates that 30 percent of all apartments in the quadrant from 49th to 70th Streets between Fifth and Park are vacant at least ten months a year.

So, in a city with no affordable market housing, much the best residential real estate sits almost completely vacant. Wonderful. If the laws can be tweaked to discourage this, they should be. Lasner suggests limits on the numbers of absentee or anonymous buyers — I think those kinds of measures could help.

Still, the results of this development trend are a mixed bag for New York City, even in the realm of social equity. When I worked on Mount Laurel analysis at Rutgers (for New Jersey’s constitutionally-mandated affordable housing programs), one of the factors that we analyzed was filtering — or, the tendency of new, market-rate units to take some of the price pressure off of the existing housing stock. In theory, at least, a larger number of units in a particular region will bring down the degree of competition for housing units, across the board. So, even the development of incredibly expensive luxury units ought to have some knock-on effect for housing affordability in the local market, by taking wealthy buyers out of competition for (and gentrification of) existing units in the same city.

111 West 57. Source: SHoP Architects. (Fair use.)

111 West 57. Source: SHoP Architects. (Fair use.)

Finally, on a purely aesthetic level, I do like the architecture of many of the city’s new sliver skyscrapers. Vishaan Chakrabarti, in particular (who led the design of 111 West 57th Street, above), has an incredible eye, and a vision of urbanism that goes far beyond luxury investment units. Technology allows for the development of slender, elegant towers that were physically impossible in the past. They represent the forefront of engineering and design, and some of them are truly striking. Beautiful architecture — even if it contains private spaces — can still bring value to everyone who spends time in the city.