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    In California’s Housing Fight, It’s Newsom vs. NIMBY

    Laws to encourage more development and denser housing don’t do much good if no one enforces them. As the state political calculus shifts, Gavin Newsom is trying to change that.By any objective measure, nothing that happens in Woodside, Calif., is going to make much difference to a state whose housing crisis is characterized by some of the nation’s highest rents and home prices and has more than 100,000 people living on its streets. The town, a wealthy enclave of the Silicon Valley, is less than 12 square miles and contains about 5,000 of California’s 40 million residents.But earlier this year, when Woodside’s government made a curious announcement that the town was being designated a sanctuary for mountain lions — a move that, as it happened, would also protect a hamlet of multimillion-dollar homes from a new law allowing duplexes across the state — the response was an object lesson in how California politics have shifted as housing has become voters’ primary concern.The Department of Housing and Community Development, California’s main housing agency, said it was investigating the mountain lion plan. The state attorney general followed with a letter (and a news release announcing the letter) that said the proposed sanctuary was illegal, and accused the town of “deliberately attempting to shut off the supply of new housing opportunities.”Along the way legislators, housing advocates and even the Sacramento-based Mountain Lion Foundation pilloried the move. Woodside reversed course after the Department of Fish and Wildlife advised city officials that it was impossible for the entire town to be considered a cougar habitat. Shortly after, the city announced it was taking applications for duplexes.Woodside, Calif., tried to declare itself a mountain lion habitat, a move that would have barred duplex housing in the town. The state pushed back.Jim Wilson/The New York TimesFor the past six years, through boom, bust and pandemic, California’s Legislature has ended each session with a blitz of new laws that aim to make housing more plentiful and affordable. Statewide rent control. Moves to encourage backyard units. A dismantling of single-family zoning rules. The barrage continued in this year’s session, concluded on Wednesday, when lawmakers passed a pair of measures that aim to turn retail centers, office buildings and parking lots into potentially millions of future housing units — moves that caused many political observers to reconsider what is politically possible.The laws received a decent amount of fanfare at each signing, signaling a turn in state policy and priorities. Until recently though, no one put much effort into enforcing them.That has started to change as Gov. Gavin Newsom has, for reasons practical and political, shifted toward an increasingly aggressive effort to enforce laws already on the books. This ranges from small-scale stings, like the state housing agency’s sending letters to local governments telling them that they are out of compliance with state housing regulations, to much larger efforts, like a first-of-its-kind investigation into San Francisco’s notoriously complex development process.In some cases, the governor’s office is working with the attorney general to initiate lawsuits against localities that they believe are breaking the law. Rob Bonta, the California attorney general, who along with Mr. Newsom is running for re-election this year, said he expected this to only get more intense.“We are just getting started,” he said in an interview.The policy is simple: Laws that are good enough to sign should be good enough to enforce. But there are political calculations as well, and they begin with a harsh reality. No matter how much legislation the state passes, its housing crisis is so deep and multifaceted that it will be nearly impossible to show real progress in any given political cycle, and probably not for decades.Read More on the Newsom AdministrationGasoline Cars: California is moving ahead with a ban on the sale of new internal-combustion vehicles in the state by 2035, as part of Gov. Gavin Newsom’s big climate plan,Injection-Site Bill: The governor vetoed a bill for supervised drug-injection sites in California, saying the state was not ready to put the idea into practice.Abortion: With the end of Roe v. Wade, Mr. Newsom vowed to “fight like hell” for abortion rights. His state is also looking to enshrine those rights in its constitution.Contentious Bills: The governor must decide whether to sign into law or veto several proposals that have drawn intense lobbying from both sides. Here is a closer look at some bills under consideration.That is a hard sell to voters who would like quick victories. Lacking a slam dunk to point to in campaign ads, Mr. Newsom and others have been applying the law, loudly. Take, for instance, the recent interview in which the governor told The San Francisco Chronicle that “NIMBYism is destroying the state” (referring to the “not in my backyard” attitude that impedes new housing). Or the mad rush to condemn Woodside. Or the Housing Strike Force that Mr. Bonta announced in November.“Over the last 50 or 60 years, cities have not made the right decisions collectively on housing,” said Jason Elliott, a senior counselor to Mr. Newsom who oversees housing policy. “That has left us in a place where the state has no choice but to enforce the law.”The notoriously complex development process in San Francisco is the focus of a state investigation.Jim Wilson/The New York TimesCalifornia has long been described as a look at the nation’s future, and in the case of housing, the good and bad, this frame has held true since the end of World War II. Today, as the rising cost of housing has ballooned into a national problem, state legislatures across the country have mirrored California by passing a host of new laws that aim to speed new development and allow denser forms of housing.The Biden administration is hoping to encourage these efforts with a “Housing Supply Action Plan,” which, among other things, would use grant funding as a carrot for local governments that liberalize their housing laws.Those reforms won’t amount to much if cities never follow them, however. And while that might sound obvious, passing laws that nobody follows has historically been where state housing policy began and ended. That’s because, in California and elsewhere, most of the power about where and how to build has traditionally been left to local governments, on the theory that land use is better handled by people closest to the problem.“The role the state was playing is that they would mostly advise cities on what to do and make recommendations,” said Ben Metcalf, who is managing director of the Terner Center for Housing Innovation at the University of California, Berkeley. He ran California’s Department of Housing and Community Development from 2016 to 2019.The problem is that homeowners and renters from a wide range of income levels are frequently antagonistic to having anything, and especially anything dense, built in their neighborhoods. And local elected officials are beholden to them. The result is that even though California has had various housing laws on its books for decades, cities regard them as pliable, and the state, in deference to local control, has rarely challenged them.“For decades there has been a pattern where cities flagrantly ignore state housing law and the state responds by halfheartedly saying, ‘Can you pretty please follow the law?’” said Laura Foote, executive director of YIMBY Action, a San Francisco Bay Area-based nonprofit that supports building more housing around the country. “Then the cities ignore them, and the state says, ‘OK, we’ll get you next time.’”Laura Foote, the executive director of YIMBY Action.Andrew Burton for The New York TimesUntil 2017, when a suite of new laws expanded the Department of Housing and Community Development’s authority, it wasn’t even clear if it had the power to penalize cities that weren’t following state housing dictates. Mr. Newsom’s administration has since used $4 million to create a housing Accountability and Enforcement unit to investigate cities and implement the laws, while legislators have usurped local authorities by forcing them to plan for more and denser housing, hemmed their options for stopping it, and created measures to strip them of land use power when they don’t comply.“It gives us something to ensure that these programs aren’t just writing,” said David Zisser, who heads the housing department’s new enforcement unit.As affordable housing problems spread, California’s enforcement kick could be an indication of an increasingly pitched battle between cities and states over housing. It also gives a clue into how Mr. Newsom might defend himself from political attacks over California’s housing and homelessness problems, something that is all but guaranteed to happen if he seeks higher office. (A Newsom run for the Democratic presidential nomination in 2024 is currently the stuff of political parlor games, and despite the chatter, the governor and everyone in his camp dismiss such ambitions.)In the interview, Mr. Elliott, the housing adviser, noted that the advantage the governor has in enforcing tough housing measures is that he draws votes from around the state instead of locally. The administration can play the heavy in a local dispute without having to worry about alienating its entire voting base.“It’s very logical, politically, for an individual city council person or an individual member of a board of supervisors to be against an individual project,” he said. “I think the job of the state is to change the political calculus so ‘yes’ becomes the default instead of ‘no.’”There is already some indication that years of state housing bills, combined with rising voter frustrations, have started to create such a shift. When the state housing department opened its investigation into San Francisco in August, London Breed, the city’s mayor, welcomed it with a tweet.“When I ran in 2018, it was a vulnerability to be an unapologetically pro-housing candidate,” said Buffy Wicks, a Democratic Assembly member from Oakland who wrote one of the two main housing bills passed by the Legislature this week. “Now it is absolutely an asset. I get up on the floor of the Assembly and I say, 10 times a week, ‘We have to build more housing in our communities, all of our communities need more housing, we need low-income, middle-income, market rate.’ You couldn’t do that in a comfortable way four years ago.”Cities seem to have absorbed the new reality of a state on closer watch. Last year, after the Legislature passed the duplex law, dozens of cities responded by adopting a slew of new ordinances that don’t explicitly prohibit the units but, through a series of tiny rules, tried to discourage anyone from actually building them.Woodside’s Mountain Lion proposal got the most attention but was far from the only one.When Temple City, in Los Angeles’s San Gabriel Valley, adopted rules for how it would carry out the duplex law — rules that required new units to have a large outdoor courtyard, the highest level of energy efficiency, and restricted future tenants from parking on site or obtaining permits to park on the street overnight — the City Council was clear what the aim was.“What we are trying to do here is to mitigate the impact of what we believe is a ridiculous state law,” said Councilman Tom Chavez, just before the Council unanimously passed the measure.By April, the Department of Housing and Community Development had warned Temple City that its new ordinance was likely in violation of at least five state housing laws. In an email, Bryan Cook, the city manager, said it was working with the state and would consider changing the ordinance after its work with the state was done. More

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    The Next Affordable City Is Already Too Expensive

    Maybe it was the date night when he and his wife spent two hours driving 19 miles to dinner, or the homeless encampment down the street, or the fact that homes were so expensive that his children could never afford to live near him.Whatever the reasons, and there were many, Steve MacDonald decided he was done with Los Angeles. He wanted a city that was smaller and cheaper, big enough that he could find a decent restaurant but not so much that its problems felt unsolvable and every little task like an odyssey. After the pandemic hit and he and his wife went through a grand reprioritizing, they centered on Spokane, where their son went to college. They had always liked visiting and decided it would be a nice place to move.Eastern Washington was of course much colder. Until this winter, Mr. MacDonald, a native Southern Californian, had never shoveled snow. But their new house is twice as big as their Los Angeles home, cost less than half as much and is a five-minute commute from City Hall, where Mr. MacDonald works as Spokane’s director of community and economic development.He arrives each day to tackle a familiar conundrum: how to prevent Spokane from developing the same kinds of problems that people like him are moving there to escape.“I’m realizing more and more how important the future prosperity of this city is about getting housing right,” he said. “If we don’t, it’s going to track more closely with what happened in Los Angeles.”Mr. MacDonald knows the pattern, and so does everyone else who has been following the frenetic U.S. housing market for the past decade. The story plays out locally but is national in scope. It is the story of people leaving high-cost cities because they’ve been priced out or become fed up with how impossible the housing problem seems. Then it becomes the story of a city trying to tame prices by building more housing, followed by the story of neighbors fighting to prevent it, followed by the story of less expensive cities being deluged with buyers from more expensive cities, followed by the less expensive cities descending into the same problems and struggling with the same solutions.It’s easier to change where we live than it is to change how we live.Whether it’s Boise or Reno or Portland or Austin, the American housing market is caught in a vicious cycle of broken expectations that operates like a food chain: The sharks flee New York and Los Angeles and gobble up the housing in Austin and Portland, whose priced-out home buyers swim to the cheaper feeding grounds of places like Spokane. The cycle brings bitterness and “Don’t Move Here” bumper stickers — and in Spokane it has been supercharged during the pandemic and companies’ shift to remote work.No matter how many times it happens, no matter how many cities and states try to blunt it with recommendations to build more housing and provide subsidies for those who can’t afford the new stuff, no matter how many zoning battles are fought or homeless camps lamented, no next city, as of yet, seems better prepared than the last one was.Just a few years ago, a Spokane household that made the median income could afford about two-thirds of the homes on the market, according to Zillow. Now home prices are up 60 percent over the past two years, pricing out broad swaths of the populace and fomenting an escalating housing crisis marked by resentment, zoning fights and tents.Nadine Woodward, the mayor of Spokane, Wash., said the city might be too expensive even for her own son and his wife.Rajah Bose for The New York TimesBeing an “it” place was something Spokane’s leaders had long hoped for. The city and its metropolitan region have spent decades trying to convince out-of-town professionals and businesses that it would be a great place to move. Now their wish has been granted, and the city is grappling with the consequences.The Great ReadMore fascinating tales you can’t help but read all the way to the end.Garage doors, a straightforward finishing touch, have become a source of woe for the home-building industry, thanks to supply-chain issues.Was the “Russian flu” of the late 19th century actually a pandemic driven by a coronavirus? And could its course give us clues about our pandemic?Our reporter hid seven tracking devices in her husband’s belongings to see how invasive they were and which ones he would find.Growth is never perfect, and Spokane’s influx has been accompanied by a booming employment market that has increased wages, turned abandoned warehouses into offices and helped the city recover jobs lost during the pandemic. This is normally called progress. But for people who already lived in and around Spokane or the suburbs just across the border in north Idaho, the shift from living in a place that was broadly affordable to broadly not has come on with the suddenness of a car crash. Now many workers are wondering what the point of growth is if it only makes it harder to keep a roof over their head.Even the mayor isn’t immune. In an interview, Nadine Woodward, a Republican who was elected in 2019, noted that her son and daughter-in-law, newlyweds who moved home during the pandemic, were living with her and her husband while they figured out where they could afford to settle. They came back to Spokane from Seattle, where they were long ago priced out. Austin was the next city on their list, but then its home prices shot up to about where Seattle’s were when they left. At this point, even Spokane is seeming pricey.“I never thought I’d see the day where my adult children couldn’t afford a home in Spokane,” Ms. Woodward said.Between Seattle and MinneapolisStanding by a snow-covered lawn on an overcast afternoon, Steve Silbar, a local real estate agent who has been selling homes for five years, explained Spokane’s transformation in terms of a six-inch screen. When he thinks of a typical buyer, Mr. Silbar said, he imagines a couple thousands of miles away, perhaps on a beach, looking at their phones. They’re considering moving to a cheaper city, and do a search for homes.Clients like this are why Mr. Silbar invested $3,000 in a camera that allows him to create three-dimensional tours of his listings, and why the exterior of every home he sells is showcased with an aerial video shot by a drone. In a market that attracts so many outsiders, a virtual walk through the interior and bird’s-eye flight over the street can be the nudge buyers need to bid on a home they’ve never entered, in a city they’ve never seen.“I have to assume that the person that is looking at my listing has never been to Spokane, does not know about Spokane, has no clue,” Mr. Silbar said.Steve Silbar, a real estate agent, showing a home in Spokane. He relies on virtual methods to help buyers from outside the region.Rajah Bose for The New York TimesSpokane is the largest city on the road from Seattle to Minneapolis. This fact is frequently cited as the logic behind its economy: It’s between things. The city was incorporated in 1881 and grew into a transportation hub for the surrounding mining and logging industries. It remains a hub, only instead of shipping out timber and silver, businesses revolve around Fairchild Air Force Base and a collection of hospitals and universities that draw from the rural towns that stretch from eastern Washington to northern Idaho and into western Montana.The transition from past to present plays out across a skyline in which the usual collection of anonymous bank and hotel towers is broken up by historic brick buildings that seem to be either in a state of abandonment or rehabilitation or occupied by low-rent tenants while waiting for redevelopment. The current boom has already made its mark in the form of new apartment towers, warehouses turned office buildings and an empty lot that will soon contain a 22-story building that will be the city’s tallest.Driving around town, Michael Sharapata, a commercial real estate broker who moved to Spokane from the Bay Area in 2017, gave a staccato accounting of new leases, such as the millions of square feet that Amazon occupies out by the airport, or the satellite offices rented by various regional accounting and building firms.His family is coming, too. After Mr. Sharapata and his wife moved north, they were followed, in rapid succession, by his brother-in-law in Austin, another brother-in-law in the Bay Area and his sister-in-law in Salt Lake City.“We were looking for an affordable community that had an opportunity to accommodate all of us,” he said.As in most of urban America, much of the growth in the Spokane area is on the fringes, where heavy equipment and the skeletal outlines of new subdivisions unfold in every direction and into Idaho. Building permits have surged, and the cadre of mostly local builders who had the market more or less to themselves now grumble that the rapid growth has attracted big national builders like D.R. Horton and Toll Brothers.All of this happened fairly recently. In the years after the Great Recession, when homebuilders were in bankruptcy or hibernation, migration to the Spokane region plunged. That pattern shifted in 2014 when, as if a switch had been flipped, waves of migrants started arriving as already high-cost cities like Seattle and San Francisco saw their housing markets go into a tech-fueled frenzy.By the end of 2014, migration to the Spokane region had jumped to more than 2,000 net new residents, compared with a net loss the year before, according to Equifax and Moody’s Analytics. Annual growth has only continued, rising further with the pandemic to more than 4,500 net new residents.Sometimes they come for the chance to buy their first home. Other times it’s a bigger house or some land. Joel Sweeney, an academic adviser at Eastern Washington University, wanted the best of both: a single-family house on a quiet street that was close enough to downtown that he could walk to a good brewery. That sort of Goldilocks urbanity could cost a million in Austin, where he and his wife lived until last year. When they moved to Spokane they paid less than a third of that.“You could not get a house for $299,000 in Austin where you could walk to a bunch of different stuff,” he said.Nurses and teachersLindsey Simler, who grew up in Spokane, wants to buy a home in the $300,000 range, but put her search on pause after a dozen failed offers.Rajah Bose for The New York TimesThe white house with the red door sits on a quiet block near Gonzaga University. It has two bedrooms, one bathroom and 1,500 square feet of living space.Mr. Silbar, the real estate agent, has sold it twice in the past three years. The first time, in November 2019, he represented a buyer who offered $168,000 and got it with zero drama. This year it went back on the market, and Mr. Silbar listed it for $250,000. Fourteen offers and a bidding war later, it closed at $300,000.When Mr. Silbar got into the business, he said, his clients were “nurses and teachers,” and now they’re corporate managers, engineers and other professionals. “What you can afford in Spokane has completely changed,” he said.The typical home in the Spokane area is worth $411,000, according to Zillow. That’s still vastly less expensive than markets like the San Francisco Bay Area ($1.4 million), Los Angeles ($878,000), Seattle ($734,000) and Portland ($550,000). But it’s dizzying (and enraging) to long-term residents.Five years ago, a little over half the homes in the Spokane area sold for less than $200,000, and about 70 percent of its employed population could afford to buy a home, according to a recent report commissioned by the Spokane Association of Realtors. Now fewer than 5 percent of homes — a few dozen a month — sell for less than $200,000, and less than 15 percent of the area’s employed population can afford a home. A recent survey by Redfin, the real estate brokerage, showed that home buyers moving to Spokane in 2021 had a budget 23 percent higher than what locals had.One of Mr. Silbar’s clients, Lindsey Simler, a 38-year-old nurse who grew up in Spokane, wants to buy a home in the $300,000 range but keeps losing out because she doesn’t have enough cash to compete. Spokane isn’t so competitive that it’s awash in all-cash offers, as some higher-priced markets are. But prices have shot up so fast that many homes are appraising for less than their sale price, forcing buyers to put up higher down payments to cover the difference.A dozen failed offers later, Ms. Simler has decided to sit out the market for a while because the constant losing is so demoralizing. If prices don’t calm down, she said, she’s thinking about becoming a travel nurse. With the health care work force so depleted by Covid-19, travel nursing pays much better and, hopefully, will allow her to save more for a down payment.“I’m not at the point where I want to give up on living in Spokane, because I have family here and it feels like home,” she said. “But travel nursing is going to be my next step if I haven’t been able to land a house.” ‘Positive activity’From her seventh-floor office atop the Art Deco City Hall, Ms. Woodward, the mayor, looked out at the Spokane River, where in the warmer months a gondola glides past her window to a park built for the World’s Fair. Spokane hosted the fair in 1974 as a means of revitalizing its blighted downtown, and during the recent interview Ms. Woodward pointed out the window at cranes and construction sites that she calls “positive activity.”Spokane’s job market is among of the strongest in the nation, and the virtuous economic cycle — of people coming for housing, causing businesses to come for people, causing more people to come for jobs — is in full swing. And yet, as in Seattle and California before and increasingly across the nation, the scourge of rising prices, particularly for rent and housing, makes it feel less virtuous than advertised.The recent Realtors report warned of “significant social implications” if the city doesn’t tackle housing. The issues included young families not being able to buy or taking on excessive debt, small businesses not being able to hire, difficulty keeping young college graduates in town.In the dominoes of the housing market, the disappointments of aspiring buyers like Ms. Simler get magnified as they move down to lower-income households. With homes so hard to buy, rents have shot up, and the vacancy rate for apartments is close to zero.All of this has compounded at the lowest end of the market, where the nonprofit Volunteers of America’s Eastern Washington and Northern Idaho affiliate, which runs three shelters and maintains 240 apartments for people who were formerly homeless, said it will lose a quarter of its units in the next fiscal year as more of its funding goes to higher rents.Julie Garcia, right, founder of Jewels Helping Hands in Spokane, at her organization’s warming and food tent for people in need.Rajah Bose for The New York TimesA homeless camp in Spokane, where Mayor Woodward declared a housing emergency last year.Rajah Bose for The New York TimesIn December, as temperatures dropped and shelters filled, advocates and members of the homeless population protested by setting up several dozen tents on the City Hall steps. The encampment was gone two weeks later but has since been reconstructed on a patch of dirt on the other side of town. In the winter cold it smells like ash and soot from the open fires burning to keep people warm.Last year, Ms. Woodward declared a housing emergency, and her administration has put in place initiatives that mirror those of housing-troubled cities on the West Coast. The city has built new shelters, is encouraging developers to repurpose commercial buildings into apartments, is making it easier for residents to build backyard units and is rezoning the city to allow duplexes and other multiunit buildings in single-family neighborhoods.Ms. Woodward pointed to Kendall Yards, one of the developments outside her City Hall window, as an example of what she wanted to see more of. The mixed-density project could be a postcard picture of what economists and planners say is needed to combat the nation’s housing shortage and sprawl. In defiance of the single-family zoning laws that dictate the look of most U.S. neighborhoods, Kendall Yards has houses next to townhomes next to apartments, with retail and office mixed in.People in town seem to love it, but are leery of there being more places like it, especially in their neighborhood.“I think it’s awesome — I have friends there, and we go down there to the farmers’ market and walk around,” said John Schram, a co-chair of the neighborhood council in Spokane’s Comstock neighborhood. “That’s just not my vision of what I want for me. My concern is that I move into a neighborhood because of the way that it was designed when I got there, and when somebody else comes in and wants to change that I’m going to be concerned.”He added: “I have nothing against duplexes and triplexes, just not next to my house.” More

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    Seeing the Real Faces of Silicon Valley

    Mary Beth Meehan and Mary Beth Meehan is an independent photographer and writer. Fred Turner is a professor of communication at Stanford University.The workers of Silicon Valley rarely look like the men idealized in its lore. They are sometimes heavier, sometimes older, often female, often darker skinned. Many migrated from elsewhere. And most earn far less than Mark Zuckerberg or Tim Cook. More