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Newsom to let developers convert many vacant stores into homes

September 30, 2022

By JOSH FRIEDMAN

California Gov. Gavin Newsom signed a pair of bills into law on Wednesday that will enable developers to more easily convert vacant stores into homes. [NPR]

The new laws will open much of California’s commercial land for residential development, overriding local codes pertaining to where housing can be built. One law will allow developers to construct housing on some commercial land without needing to ask permission from local governments, as long as a certain percentage of the housing is deemed affordable. The other law will enable developers to build all market-rate housing on some commercial land, but the projects would still need to go through an environmental review process.

“Stores are leaving permanently, the Sears, the Toys R Us, the JC Penneys, the Kmarts — they are closing,” said Democratic Sen. Anna Caballero, author of one of the laws. “There is not a thing that is going to take the place here commercially, and so the ability to actually transform the property and to do it in an expedited way … is invaluable.”

Affordable housing advocates say the new laws will allow for ready-made apartments because existing commercial sites are located near populated areas and have plenty of parking space.

“This is a moment on a journey to reconcile the original sin of the state of California, and that’s the issue of housing and affordability,” Newsom said in San Francisco before signing the bills into law. “We need to all be a little bit more accountable to this crisis of affordability.”

However, many local government officials oppose the new measures, arguing the laws undermine their authority and upend years of planning tailored to community preferences. Local governments also face a financial consequence since stores generate more property tax revenue for them than homes do.

“It’s a concern when state law is going to override these local decisions, particularly when these local decisions are made in a public process with the community as part of a larger housing plan,” said Jason Rhine, assistant director of legislative affairs for the League of California Cities.


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I love the way Governor Newsom continually proves himself to be an incredibly strong leader unafraid to pursue fresh approaches despite a lot of fools who want to tear him down and would just just as soon keep our population in the dark ages. Is there a more courageous and effective political leader in the United States? I can’t think of one.


-27

Good. Let Newsom lead by example and move him and his family into one these places when converted.


32

Been there done that ….Newsom helped push the residential lot splitting baloney to make it possible for multi family buildings on R1 lots … But dealing with the counties and cities to do so is a very lengthy process with lots of cash needed to throw at county cashiers … 10 months was the fast track to friutation and average time was 14 months … Plus numerous habitat environmental etc etc studies …..The only reason lot splitting was approved by GOV was to eliminate properties under prop 13 tax protection .. As every lot is split each lot is reappraised at market value along with any buildings on said lots ..So property taxes that were 500.00 a year skyrocket to $8k to $12k a year … Imagine 600.00 to 1000.00 each month in property taxes ….No property in my opinion is worth paying the GOV 8k to 12k a year so I can own it in some kind of twisted way of thinking . Most of the vacant commercial buildings have property taxes of maybe 1k to 2k a year under prop 13 ….turn them into housing or human warehouses …bingo reappraised at 15k to sky is the limit a year in property taxes AKA Rent payments paid to GOV….and if property taxes not paid for 5 years county owns the property sells it at auction …bingo even higher appraisal on taxes .. A never ending cycle of generating revenue


41

A lot split is not a “reappraisable event”. New consruction and ownership transfers are reappraisable (new assessment) events. So, you have to have a lot split and THEN a transfer and/or build on the new lot to get new assessments. If you just split a parcel, the old assessment just gets allocated to the new parcels (lots). BUT the on and off site improvements to the new lots would be new construction and a new asessment, I believe.

Talk to Bordonaro’s office before you do these things. It is complicated and I “think” I got this right.

And yes, you have to game everything to stay in California. Gov’t never shrinks (except when Prop 13 passed). It is really tiring.


3

“However, many local government officials oppose the new measures, arguing the laws undermine their authority and upend years of planning tailored to community preferences.”


Seems like an opinion based on nothing. In Santa Maria local officials are mostly in favor of converting the Falla’s store in the downtown area into apartments.


I’m sure there will be some opposition, but it’s an obvious move in the right direction.


-41

Typical, typical, typical. Newsom made this happen, so automatically it much be spun as a really bad idea. Had some so called “conservative” come up with this, the same people would be touting it as genius. The fact of the matter is that no one else was solving the growing problem. The same complainers would have then continued to blame Newsom personally for a situation he inherited and rag on the “libs” who run California as responsible for a problem that all our states tend to have. This is actually a great idea. You would be 100% behind it if you were struggling to house your family or yourself. There is a serious need to get real, address our actual problems and stop trying to control things by simply belittling everything the “other side” does.


-82

From the guy who lived in a 12,000 square foot home, ha!


Gov. Gavin Newsom sold his Bay Area home of a decade for $5.9 million in an off-market deal in May, records show.


61

“reconcile the original sin of the state of California” huh, i thought maybe the original sin of california was its treatment of the native americans or mexicans, turns out its strip malls, my bad.


10

In addition to being medical, environmental, and law experts, politicians are now planning and engineering experts? Might as well just study political science so you have authority to do it all.


56

Like any good public official, the governor takes advice from the experts. The medical experts advised him correctly on COVID, if you measure the results. California ranked 38th overall in per capita deaths from the virus. Florida and Texas, which conservatives love to compare with California, had far higher death rates.


On the environment, California is doing the correct thing by moving as expeditiously as possible away from fossil fuels. Over 95% of climate scientists agree that anthropogenic global warming is happening NOW. Judging by the weather headlines of the last several years, it’s hard to deny.


Finally, it absolutely does not take a genius to figure what to do if you have lots of empty buildings and a large homeless population.


-67

That rent price BETTER be cheap if I’m living in an old KMART. Thin walls, minimal insulation, poor views, constant patrons of nearby businesses, 24/7 lights, etc etc. Good idea, but again, it better be cheap for everyone involved! Sadly unlikely.


-27

If your living in an old Walmart, you have made some bad life decisions, just saying.


61

You don’t have to use the existing structure, you can demolish and build new units. Not all units have to be “affordable.” I dislike Newsom and am a Conservative. What better speaks to free market values than allowing property owners to develop property that no longer serves the original purpose. Government needs to get out of the way of development more frequently.


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