Gov. Newsom's Budget Bill Offers Olive Branch to Real Estate World by Scaling Back Environmental Law
Newsom's budget bill offers hope for developers but CEQA reforms are just one piece of the puzzle.
When Gov. Gavin Newsom signed two budget trailer bills that scaled back the California Environmental Quality Act (CEQA), real estate developers were hopeful that the state was finally recognizing the impact of regulations on housing investment and development. However, while these reforms are a step in the right direction, they are only one piece of the puzzle when it comes to fixing the housing crisis in California.
Cityview Chief Executive Sean Burton commented on the reforms, stating "From your lips to God's ears," in hopes that this would lead to a friendlier environment for building. However, these changes are not a guarantee of a more favorable landscape for developers.
While CEQA has been a frequent scapegoat for the state's housing woes, it is not the only hurdle developers face. The high cost of construction, strict zoning laws, and community opposition are all factors that contribute to the difficulty of building in California.
Despite the reforms, many still believe that CEQA is a necessary tool for protecting the environment and ensuring responsible development. The bill does not eliminate the law, but rather streamlines the process for certain types of projects.
As the state grapples with its housing crisis, it is clear that more needs to be done to address the issue. While Gov. Newsom's budget bill may offer some relief for developers, it is important to recognize that CEQA is just one piece of a much larger puzzle.
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