Sunday, February 16, 2020

Build Build Build Build Build Build

The City Council of Lafayette, Calif., met the public two Mondays a month, and Steve Falk liked to sit off by himself, near the fire exit of the auditorium, so that he could observe from the widest possible vantage. Trim, with a graying buzz cut, Mr. Falk was the city manager — basically the chief executive — of Lafayette, a wealthy suburb in the San Francisco Bay Area that is notoriously antagonistic to development.

With a population of just 25,000, Lafayette was wealthy because it was a small town next to a big town, and it maintained its status by keeping the big town out. Locals tended to react to new building projects with suspicion or even hostility, and over a series of Mondays in 2012 and 2013, Mr. Falk took his usual spot by the fire exit to watch several dozen of his fellow Lafayetters absolutely lose their minds.

A developer had proposed putting 315 apartments on a choice parcel along Deer Hill Road — close to a Bay Area Rapid Transit station, and smack in the view of a bunch of high-dollar properties. This wasn’t just big. The project, which the developer called the Terraces of Lafayette, would be the biggest development in the suburb’s history. Zoning rules allowed it, but neighbors seemed to feel that if their opposition was vehement enough, it could keep the Terraces unbuilt.

In letters to elected officials, and at the open microphone that Mr. Falk observed at the City Council meetings, residents said things like “too aggressive,” “not respectful,” “embarrassment,” “outraged,” “audacity,” “very urban,” “deeply upset,” “unsightly,” “monstrosity,” “inconceivable,” “simply outrageous,” “vehemently opposed,” “sheer scope,” “very wrong,” “blocking views,” “does not conform,” “property values will be destroyed,” and “will allow more crime to be committed.”

Mr. Falk could see where this was going. There would be years of hearings and design reviews and historical assessments and environmental reports. Voters would protest, the council would deny the project, the developer would sue. Lafayette would get mired in an expensive case that it would likely lose. As Mr. Falk saw it, anything he could do to prevent that fate would serve the public interest. (...)

America has a housing crisis. The homeownership rate for young adults is at a multidecade low, and about a quarter of renters send more than half their income to the landlord. Homelessness is resurgent, eviction displaces a million households a year, and about four million people spend at least three hours driving to and from work. (...)

Nowhere is this more evident than California. It’s true that the state is addressing facets of the mess, with efforts on rent control, subsidized housing and homelessness. But the hardest remedy to implement, it turns out, is the most obvious: Build more housing.

According to the McKinsey Global Institute, the state needs to create 3.5 million homes by 2025 — more than triple the current pace — to even dent its affordability problems. Hitting that number will require building more everything: Subsidized housing. Market-rate housing. Homes, apartments, condos and co-ops. Three hundred and fifteen apartments on prime parcels of towns like Lafayette.

Legislation is important, but history suggests it can do only so much. In the early 1980s, during another housing crisis, California passed a host of bills designed to streamline housing production and punish cities that didn’t comply. But the housing gap has persisted, and more recent efforts have also failed. In late January, the Legislature rejected S.B. 50, a bill that would have pushed cities to accept four- to five-story buildings in amenity-laden areas.

What this suggests is that the real solution will have to be sociological. People have to realize that homelessness is connected to housing prices. They have to accept it’s hypocritical to say that you don’t like density but are worried about climate change. They have to internalize the lesson that if they want their children to have a stable financial future, they have to make space. They are going to have to change.

Steve Falk changed. When he first heard about Dennis O’Brien’s project, he thought it was stupid: a case study, in ugly stucco, of runaway development. He believed the Bay Area needed more housing, but he was also a dyed-in-the-wool localist who thought cities should decide where and how it was built. Then that belief started to unravel. Today, after eight years of struggle, his career with the city is over, the Deer Hill Road site is still just a mass of dirt and shrubs, and Mr. Falk has become an outspoken proponent of taking local control away from cities like the one he used to lead.

A universal platform of more

Although he didn’t know it at the time, Mr. Falk’s transformation began in 2015, with a phone call from a woman he’d never heard of, with a complaint he had never once fielded in his 25 years working for the city. Her name was Sonja Trauss, and she thought the Deer Hill Road project was too small.

Ms. Trauss was a lifelong rabble-rouser and former high school teacher, who’d recently become a full-time housing activist. She made her public debut a couple of years earlier, at a planning meeting at San Francisco City Hall. When it was time for public comment, she stepped to the microphone and addressed the commissioners, speaking in favor of a housing development. She returned to praise another one. And another. And another.

In backing every single project in the development pipeline that day, Ms. Trauss laid out a platform that would make her a celebrity of Bay Area politics: how expensive new housing today would become affordable old housing tomorrow, how San Francisco was blowing its chance to harness the energy of an economic boom to mass-build homes that generations of residents could enjoy. She didn’t care if a proposal was for apartments or condos or how much money its future residents had. It was a universal platform of more. Ms. Trauss was for anything and everything, so long as it was built tall and fast and had people living in it.

The data was on her side. From 2010 to 2015, Bay Area cities consistently added many more jobs than housing units — in some cases at a ratio of eight to one, way beyond the rate of one and a half jobs per housing unit that planners consider healthy. In essence, the policy was to enthusiastically encourage people to move there for work while equally enthusiastically discouraging developers from building places for those people to live, stoking a generational battle in which the rising cost of housing enriched people who already owned it and deterred anyone who wasn’t well paid or well off from showing up.

Ms. Trauss organized supporters into a group called the San Francisco Bay Area Renters Federation, or SF BARF, which was amateur even by local activist standards. But amateur was the point, part of Ms. Trauss’s knack for getting attention. She drove a glittery orange Crown Victoria, showed up to municipal meetings in leggings and white cowboy boots, and spoke in pop philosophical monologues, like declaring that the reason people don’t like new buildings is that it reminds them that they’re going to die.

Her aims were explicitly revolutionary. She told people that her goal wasn’t to enact any particular housing policy, but to alter social mores such that neighbors who fought development ceased being regarded as stewards of good taste and instead came to be viewed as selfish hoarders.

Ms. Trauss started to attract the attention of wealthy donors like Jeremy Stoppelman, the co-founder of Yelp, who had started to worry about housing costs crimping economic growth. And her tactics got more sophisticated. With a friend, Brian Hanlon, who worked a desk job at the United States Forest Service, she co-founded a nonprofit called the California Renters Legal Advocacy and Education Fund, or CARLA. Its mission: “Sue the suburbs.” After reading about an obscure 1982 California law called the Housing Accountability Act, Ms. Trauss decided to try to use it to force Lafayette to build Dennis O’Brien’s 315 apartments.

By then — 2015 — Mr. Falk had been working on the Deer Hill Road project for years. Through dozens of meetings with Mr. O’Brien, he’d hammered out a deal for a more modest development of 44 single-family homes, as well as an agreement to build the city a soccer field and dog park. Mr. Falk was a frequent user of the analogy about sausage-making, and this was definitely some sausage, but he walked out of his talks with Mr. O’Brien feeling like an A‑plus public servant who might have a second career in conflict resolution. When Ms. Trauss phoned him to say the 44-home approach was entirely inadequate, Mr. Falk tried to persuade her otherwise. Of course, he never had a chance. (...)

Ms. Trauss sued a few months later. The great irony was that nobody was more unhappy about it than Mr. O’Brien. He had spent years and millions of dollars proposing two completely different projects. Now some activist group he’d never heard of was suing the city, and him, on behalf of his original project — in essence, suing him on behalf of him.

CARLA’s lawyer had the impossible job of trying to convince a judge that Lafayette had unfairly forced Mr. O’Brien to build 44 houses instead of 315 apartments, while Mr. O’Brien sat on the other side more or less going, No they didn’t. CARLA lost the argument, but after it threatened to appeal, Mr. O’Brien ended up agreeing to pay its legal fees. He had now argued, and paid for, both sides of the same case.

by Conor Dougherty, NY Times | Read more:
Image: Ian C. Bates
[ed. See also: Breaking Development (Current Affairs).]