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Why is it so expensive to build low-cost housing in California?

New construction is one of the requirements of California's booming economy. The strength and diversity of the state rely on new housing and office solutions for all sizes and shapes of families and businesses. The government in Sacramento may attempt to tackle the challenges to making new homes affordable to developers and buyers alike.

What's one of the challenges that developers face?

A controversial section of the state constitution passed in 1950 makes it impossible to build low-rent housing without a municipality's review process and approval. The law has led to reduced opportunities for many Californians, including the right to live affordably in some communities.

What are the costs of this law?

Compliance with Article 34 can cost developers and their clients between $10,000 and $80,000 per project. Some municipalities also find it difficult or impossible to fund affordable housing with civic funds, and some projects cannot proceed without savings or tax credits.

What are lawmakers looking to change?

A state senator is proposing the repeal of Article 34 next year, while a member of the State Assembly is attempting to pass reform of the state's allowances on civic funding and state tax credits for housing development. The hope is that reduced costs of new construction will keep the products of this hard work accessible for more Californians.

What are some other challenges that developers often face in California?

Lawsuits against state and municipal laws can delay funding or payment for construction projects, leaving developers out in the cold. Legal representation for builders and contractors can help elevate these concerns to a negotiated settlement or civil court lawsuit to make sure developers get paid.

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