Letter to the Editor: SB79 Threatens Olive Avenue Neighborhoods

Understanding the Impact of SB79 on Local Communities

Senate Bill SB79, often labeled as "affordable housing" legislation, is being scrutinized for its potential to negatively impact stable neighborhoods and commercial areas. Critics argue that this bill is not designed to increase affordable housing but rather to facilitate development that benefits real estate speculators and developers at the expense of existing communities.

Currently under consideration by the State legislature, SB79 has already passed in the Senate and is now moving through the Assembly. The bill focuses on increasing density in residential and commercial areas located within a half-mile of major bus or rail transit stops. It categorizes these stops into three tiers, each with specific density targets that could significantly alter local landscapes.

SB79's Effects on Neighborhoods Along Olive Avenue

The implementation of SB79 could have profound effects on neighborhoods along Olive Avenue, particularly those near Bus Rapid Transit (BRT) stations. These BRT stops are classified as Tier 2 under the bill, which mandates certain development standards. For instance, within a quarter mile of a BRT station, the bill prohibits city councils from imposing height limits below 65 feet and maximum density standards less than 100 dwelling units per acre.

Additionally, SB79 allows for higher densities if minimal levels of affordable housing are provided. Within a half-mile of a BRT station, similar restrictions apply, with height limits set at 55 feet and density standards at 80 dwelling units per acre. These provisions could lead to significant changes in neighborhood character, potentially displacing long-time residents and altering the community's social fabric.

Legal Context and Implications

Several state laws further complicate the situation. For example, AB2097 (2022) eliminates parking requirements for new units, while AB1482 (2019) prevents rent control for the first 15 years. These laws may contribute to an environment where developers prioritize market-rate and luxury housing over affordable options, exacerbating the housing crisis.

SB79 specifically targets single-family neighborhoods, which are predominantly owner-occupied. This targeting could lead to the replacement of owner-occupied housing with rental units, thereby affecting home ownership rates and wealth accumulation for middle-class families. Homeownership is a critical factor in protecting against housing cost inflation and building long-term wealth.

The Broader Implications of SB79

The bill’s focus on densification could result in the demolition of multi-family rent-controlled units, allowing developers to replace them with larger apartment buildings. This process might involve evicting tenants and waiting five years before constructing new developments, which can disrupt communities and create instability for residents.

Home equity plays a vital role for seniors and families facing medical and eldercare expenses. SB79 threatens to undermine this stability by promoting real estate speculation, which is a primary driver of rising housing costs in California. With nearly 20% of homes now owned by investors, the bill could worsen this trend, making home ownership even less accessible.

Affordability Concerns and Housing Goals

SB79 is criticized for not aligning with the goals of increasing affordable housing. Under the bill, developers building 10 units would not be required to provide any affordable housing. For developments with 11 or more units, the requirement is minimal—7% extremely-low-income, 10% very-low-income, or 13% low-income units. This approach contrasts sharply with current housing element requirements in regions like SCAG, which mandate a much higher percentage of low-income units.

Developers may prefer to build market-rate and luxury units, leading to a lack of affordable housing despite the bill's intentions. This misalignment could result in little to no affordable housing near transit stops, further marginalizing low-income populations who rely on public transportation.

Encouraging Destruction of Single-Family Homes

SB79's provisions could encourage the destruction of single-family homes, particularly in areas like Burbank, where lots are typically between 5,445 and 7,260 square feet. The bill allows for large apartments averaging 1,750 net habitable square feet, which could lead to the construction of 5-6 story buildings with 10 units each. This development model could displace homeowners and convert neighborhoods into rental-only areas, reducing opportunities for equity building.

A Call to Action

SB79 represents a broader challenge to homeownership and the middle class in California. As cities update their Housing Elements to meet state projections, this legislation may hinder their ability to achieve housing affordability targets. By overriding local planning and land use controls, SB79 risks creating unpredictable patterns of densification that could strain infrastructure and community resources.

Residents are encouraged to contact their state legislators and advocate for a "NO" vote on SB79. By taking action, individuals can help protect their neighborhoods and ensure that housing policies support the needs of all community members.