LOS ANGELES — Councilwoman Katy Yaroslavsky today announced a two-part plan aimed at expanding pathways to homeownership in Los Angeles by making condominiums, townhomes and other smaller for-sale homes easier and less expensive to build.
Yaroslavsky introduced the first motion Wednesday, directing the Department of City Planning to develop a streamlined approval process for new condominium projects. A companion motion, expected later this week, would examine City fees imposed on small-scale ownership housing and identify options to reduce or defer costs that discourage construction.
“For too many Angelenos, the first rung of homeownership has disappeared,” said Councilwoman Yaroslavsky. “We are living in an economy where people who already own assets keep building wealth while working and middle-class families fall further behind. If the path to homeownership starts with a $1.5 million single-family home, we are shutting too many Angelenos out. Condos, townhomes and other starter homes should give first-time buyers a real opportunity to own a piece of Los Angeles and build wealth over time.”
Only 36 percent of homes in Los Angeles are owner-occupied, while the city’s median home price has surpassed $1 million. In L.A. County, where most residents are renters, homeowners only begin to outnumber renters at age 59.
At the same time, condominium construction has collapsed. Research from UC Berkeley’s Terner Center found new condominium construction in Southern California has fallen roughly 90 percent from its mid-2000s peak, with higher insurance costs and construction-defect liability creating major disadvantages compared with otherwise similar rental projects.
Yaroslavsky’s first motion focuses on the City’s approval process. Under current Los Angeles rules, an otherwise by-right housing development becomes subject to a lengthy discretionary subdivision process when its units are proposed for individual ownership as condominiums. The motion directs City Planning, with assistance from the Department of Building and Safety and Bureau of Engineering, to draft an ordinance within 30 days creating simplified and expedited procedures for eligible new-construction condominium projects.
A companion motion by Yaroslavsky would focus on cost. The proposal would examine why the City often charges more to build homes for individual ownership than to build the same units as rental apartments.
Today, a multifamily project can face tens of thousands of dollars in additional City fees if its units are subdivided and sold as condominiums rather than held by one owner and rented as apartments. Those costs can include park fees, the Affordable Housing Linkage Fee, subdivision and mapping fees, and other development charges. The motion would direct the City Administrative Officer and relevant departments to identify those differences and evaluate options, including fee reductions, credits, deferrals and more proportional fee structures.
The proposals come as state and local housing laws are allowing more homes to be built in more places. Senate Bill 79 created new housing standards near major transit stops, while Los Angeles is advancing its Missing Middle LA program to expand smaller-scale housing, including ADUs, small-lot subdivisions and starter homes.
“As state and local rules have changed to allow more housing in more places, we have to make sure homeownership stays part of the conversation,” said Yaroslavsky. “If our rules make a condo substantially harder or more expensive to build than the exact same home as an apartment, we shouldn’t be surprised when everything gets built for rent.”
Yaroslavsky has also pushed Sacramento to address barriers outside the City’s control. Earlier this year, she led the City Council’s support for Assembly Bill 1903, legislation by Assemblymember Buffy Wicks aimed at reforming California’s construction-defect process and reducing one of the major costs associated with condominium construction. The bill passed both houses without a “no” vote but did not receive a final concurrence vote before the legislative deadline.
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