Friday

07-04-2025 Vol 2011

Los Angeles Proposals Aim to Accelerate Housing Development and Boost Homeownership

Members of the Los Angeles City Council have introduced a series of innovative proposals aimed at addressing the city’s ongoing housing crisis, particularly focusing on the challenges many Angelenos face in homebuying.

Among the five proposals unveiled this week, two specifically target accessory dwelling units (ADUs), which homeowners have increasingly built in their backyards as a solution for family housing needs or a way to generate supplemental income.

One of the proposals seeks to enable homeowners to sell ADUs independently of their primary residences, creating a potentially more affordable path to homeownership for the majority of Angelenos who find traditional single-family homes out of reach.

Councilmember Nithya Raman, chair of the Housing and Homelessness Committee, emphasized that these smaller housing options align well with L.A.’s decreasing average household size.

“There are many more households where it’s just one person or two people without children,” Raman explained. “If that’s the case, then how do we reorganize our housing market and our rules to ensure that we’re producing what’s going to address their needs? I do think ADUs can be a really powerful tool for that.”

Additional proposals from Raman and Planning and Land Use Management Committee Chair Bob Blumenfield aim to streamline the permitting process for new housing projects and expedite utility hookups.

According to the L.A. Planning Department, ADUs accounted for 41% of the new housing permits issued last year, showcasing their importance in the city’s housing landscape.

Azeen Khanmalek, the executive director of the housing production advocacy group Abundant Housing L.A., expressed enthusiasm for the proposal allowing the sale of ADUs.

He noted that this change could significantly increase the availability of entry-level homes for younger buyers while also providing financial stability for older homeowners.

“If you are an aging household and you’d rather stay in place, you can perhaps build an ADU and sell it, stabilize your own finances, keep that property in the family and pass it on to your kids or your grandkids,” Khanmalek asserted.

A recent state law has paved the way for the buying and selling of ADUs, but local cities must adopt an ordinance to facilitate these changes.

Currently, San Jose has opted to permit ADU purchases, and the Berkeley City Council is contemplating a similar move.

Another notable proposal from Raman aims to fast-track projects benefiting from incentives within the city’s updated housing plan.

These projects could receive approvals without necessitating a City Council vote, which previously allowed council members to hinder new housing developments in their districts.

Raman remarked on the need for a cultural shift within City Hall regarding housing.

“Political officials are punished for saying yes to housing,” she stated. “There’s no reward right now for building desperately needed housing, the way that the system is structured. I think we need to change that structure in order for us to really address our current housing crisis.”

Los Angeles has significantly underperformed in its housing development goals over recent years, with the city approving only about 30% of the new housing needed to meet a state target of nearly half a million new homes by 2029.

This shortfall is occurring at a time when nearly two-thirds of Los Angeles households are tenants facing rents deemed unaffordable under federal standards.

Various factors have contributed to the city’s inadequate housing production, including high interest rates complicating project financing and the effects of the city’s mansion tax, which some studies indicate discourages new apartment developments.

Critics of L.A.’s housing policies assert that there’s no single culprit; rather, bureaucratic delays and inefficiencies cumulatively hinder development.

Raman asserts that the feedback she has received indicates a pressing need to transform the city’s housing strategy.

This realization has spurred other recent initiatives, such as allowing more apartment buildings to be constructed around a centralized staircase and eliminating city-wide parking requirements for new developments.

“What I hear across the board from people’s interactions with the city is that this is the city that says no,” Raman noted.

She believes the current set of proposals represents a critical first step towards fostering a culture that is more affirmative regarding housing development.

As the City Council enters its July recess, none of these proposals have been scheduled for a vote at this time, leaving them in preliminary stages.

These proposals come amidst a broader push by state lawmakers to dismantle barriers hindering housing development across California.

image source from:laist

Benjamin Clarke