Berkeley’s Housing Element was rejected by the state this week, city and state officials confirmed, exposing one of the East Bay’s biggest cities to
potential fines and the threat
of developers trying to build projects that aren’t constrained by local zoning restrictions.
Berkeley did not fully analyze potential housing sites and the city must commit to removing permit constraints and upzoning wealthier neighborhoods,
according to a letter
from the California Department of Housing and Community Development to the city.
“Despite our best efforts to strengthen Berkeley’s Housing Element, HCD says we have more work to do,” City Councilmember Rashi Kesarwani said in a Twitter message on Monday in response to the letter. “Specifically, HCD tells Berkeley to fix our sites inventory & do more to affirmatively further fair housing.”
Housing growth has massive implications for the future of the city and UC Berkeley. The university
nearly rejected thousands of students
from last year’s fall class
before state lawmakers intervened
to save their spots due to a lawsuit over the school’s housing development plans. Housing battles have roiled the city, including at
People’s Park.
The immediate ramifications of the state’s rejection are disputed. The state has said that cities that aren’t in compliance are subject to the builder’s remedy, which allows developers to get approval for housing projects with at least 20% lower income affordable units or 100% moderate income units, even if they aren’t consistent with local zoning.
But Jordan Klein, Berkeley’s Planning & Development Department director, said the city was not subject to the builder’s remedy because the city was in “substantial compliance” with state law.
“Several stakeholders have inquired as to whether HCD’s latest letter means that housing projects in Berkeley are eligible for ‘builder’s remedy’ and can disregard the City’s zoning rules. However, the City has met the statutory requirement to adopt a Housing Element that is in substantial compliance with State law by January 31, 2023,” Klein said in a statement.
He said he was unaware of any builder’s remedy applications as of Thursday morning. City staff are evaluating the state’s comments and are seeking information on what changes are required for certification, he said.
Berkeley also faces monthly fines up to $100,000 and could lose out on state grant funding if its Housing Element remains out of compliance.
Klein said “the Housing Element commits the City to proactively upzone several areas including the Southside neighborhood adjacent to the UC Berkeley campus and all of the City’s low-density residential districts,” and also seeks to upzone commercial corridors.
The vast majority of Bay Area cities
are out of compliance
with state housing law. Only two cities, San Francisco and Alameda, have received full Housing Element certification as of Thursday. Redwood City and Emeryville have compliant draft housing elements pending final approval, while 39 jurisdictions remain under review, 51 have draft Housing Elements that were rejected, and 15 have not submitted anything, according to HCD.
Roland Li is a San Francisco Chronicle staff writer. Email: roland.li@sfchronicle.com Twitter: @rolandlisf
