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California Leaders Propose Rewards, Fines to Spur Housing

California Leaders Propose Rewards, Fines to Spur Housing

Faced with a crippling housing shortage, California’s governor and legislative leaders have agreed to reward local governments that make it easier to build houses faster and punish those that don’t.

The proposed law, which still needs approval by both houses of the Legislature, would let state officials reward “pro-housing” jurisdictions with more grant money for housing and transportation. The plan does not define what local governments must do to be declared “pro-housing,” other than passing ordinances involving actions to be determined later.

Local governments that don’t comply with state housing requirements could face court-imposed fines of up to $600,000 a month. In some cases, the court could take over a local government’s authority to issue housing permits.

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