State Sen. Scott Wiener, and Gov.-elect Gavin Newsom, should the two San Franciscans join forces on the effort, face hurdles next year from opponents of the initial bill. | Randy Shropshire/Getty Images California's most controversial housing bill to return. Will Newsom support it?

After his fellow Democrats this year killed legislation aimed at increasing housing density near bus and rail lines in California, state Sen. Scott Wiener (D-San Francisco) is vowing to bring back the controversial proposal in 2019 — and looking for support from the new governor.

Wiener's CA SB827 (17R) made national headlines partly because of the far-reaching land use authority it would have given state government on housing.


The bill was attacked by one big-city mayor as a “declaration of war against our neighborhoods,” and by a San Francisco supervisor as the looming “Manhattanization” of California cities. Local officials were fiercely opposed, as they did not want to relinquish control over housing growth or lose community input on development proposals.

Environmental groups, including the Sierra Club, were opposed, and renters' advocates believed the bill didn’t go far enough on affordability and anti-displacement provisions – components Wiener said could look different in his next version.

It faced so much opposition that it died early in the legislative process, failing to get past the Senate Housing and Transportation Committee.

Wiener told POLITICO this week that he plans to revive his idea, and is ready to partner with Gov.-elect Gavin Newsom, who said after winning election that California can expect to "hear a lot more from me on housing and transportation, because I see the two as the same."

Wiener sees the proposal as an overdue measure to allow developers across California bypass local zoning restrictions on height and density and build more housing within a half-mile of public transit stops and a quarter-mile of transportation corridors, such as those that include major connections to rail lines.

"I'm going to reintroduce SB 827," Wiener said. "There will be some changes to it, but the heart of the bill will be the same — allowing more housing near public transportation, near jobs and legalizing apartment building. When you have hyper-low-density zoning near transit and near jobs, you are effectively banning apartment buildings and affordable housing, and you are making it impossible for more than a small number of people to live near transit and where they work."

SB 827 sought to establish a uniform standard for housing in transit-rich zones and prevent cities from blocking construction of new multi-family apartment buildings based on height or density.

It would have required cities to change local zoning laws and allow development projects — 45 to 55 feet in most cases — near transit at a developer’s request if it met criteria outlined in the bill. That equates to a four- or five-story apartment, though buildings could have gone as high as eight stories if the projects qualified under the state "density bonus" law.

Under Wiener's proposal, a portion of new units would have been set aside for low- to moderate-income earners, depending on the size of the project. Unless banned by cities, it would have also allowed demolition of existing housing for new higher-density projects, with an agreement to not displace current tenants.



If buildings were torn down, the bill would have required developers to offer tenants return rights in the new development at the same rental cost. The bill also would have required that tenants kicked out of their apartments receive relocation expenses and supplemental rent payments during construction of new projects - some of the strongest anti-displacement proposals California has ever seen.

It also sought to scrap minimum parking requirements that add to development costs and can consume space that otherwise could be used for new housing.

Wiener — and Newsom, should the two San Franciscans join forces on the effort — face hurdles next year from opponents of the initial bill.

“If he’s going to bring back 827, I think we’ll have similar concerns that we had last year. … Mainly, that it’s a one-size-fits-all approach for the entire state,” said Jason Rhine, the lead housing lobbyist with the League of California Cities. “City officials and residents want to play a role in deciding what sort of development is going to occur in their communities, and I think anything that’s going to take away input … we would object to that.

“We don’t think a developer, who is in it to make money, is in the best position to address local needs,” he said.

Both the San Francisco Board of Supervisors and the Los Angeles City Council formally opposed the bill, though some leaders in those cities were split.

San Francisco Mayor London Breed, for example, did not support the city's position when she was a mayoral candidate. But Los Angeles Mayor Eric Garcetti opposed Wiener's legislation.

Others said they feared it would further disadvantage low-income residents and lead to mass displacement in primarily black and Latino neighborhoods.

Newsom voiced concern about Wiener’s bill earlier this year, saying he prefers to give cities incentives for building. But that approach hasn’t worked, Wiener said this week.

“Carrots are great, but when it comes to housing, carrots haven’t done the trick,” he said. “We also need rules.”

Newsom, meanwhile, has also praised Wiener for his effort. And Wiener has appeared side-by-side with Newsom at campaign stops in recent months — one indication that the two will be allies in Sacramento.

"I'm thrilled that he is making bold statements on housing," Wiener said. "We're in a deep, deep hole and it's damaging our state in many ways. It's pushing people into poverty and homelessness, spiking carbon emissions, reducing our diversity and pushing middle-income people out of our state entirely."

Both Wiener and Newsom say boosting the supply of housing, at all income levels including market-rate, is what California needs to address the housing crisis. Rents continue to soar, especially in coastal cities, and people are fleeing the state for cheaper living elsewhere.

From 2007 to 2016, California lost a net 1 million people moving to other U.S. states, according to the state Legislative Analyst’s Office, and more have reported leaving in the past couple years due to sky-high housing costs.

Newsom said after his election that part of his ambitious housing strategy — to build 3.5 million more homes by 2025 — includes increasing the supply of low-, medium-income and market-rate housing with a focus on density and transit corridors.

He said preserving current affordable housing, and preventing people from being displaced, are two other areas he plans to focus on. "The housing crisis is three things, not one," Newsom said.

Regions with robust transit connections are prime for higher-density development, Wiener has said. Those include the Bay Area and parts of Los Angeles, for example. The bill could spark a massive development boom in such areas, he believes.

Under one scenario, housing within a half-mile of the Rockridge BART station in Oakland could grow from the current 4,096 units to a staggering 25,500, according to a projection by Urban Footprint, an urban planning data company.

Similarly, housing near MacArthur BART could grow from roughly 4,500 apartments to more than 27,000 new units.