The Problem: It takes an average of 4-7 years to get through the LA City and County housing system to build a small multi-family building in Los Angeles, when it could take 8 months (from plan submission to move in day), adding significantly to the cost of housing to the point that not enough projects “pencil out” so they simply never get built. The overwhelming majority of housing experts agree with the need for streamlining and cutting red tape. It turns out a plan already exists – created by a long-time LA City Planner, who implemented a similar program when billions of dollars of bonds were approved to build dozens of brand new schools and modernize others in the early 2000s. The core idea is to replicate this success with LAUSD.

The Backstory in Schools: For 30 years, LAUSD was unable to build new schools despite skyrocketing enrollment. There were multiple reasons that colluded to prevent progress – when billions of dollars of bonds were approved by the voters, the Mayor created a Director of School Facilities position and assigned the planner to run it. She brought representatives from all of the involved city agencies to the table to work through problems in real time. The result: all schools were built quickly and efficiently with no impediments caused by the city of Los Angeles.

The Current Process: Builders (and developers) are put through a dizzying gauntlet of red tape at the city. Most affordable housing projects require six trips to the City Council, with each return visit adding 100 days. There are additional trips to negotiate and bargain with Neighborhood Councils, to address Council Committees, to negotiate density, height and other entitlements with the Planning Department, to have the City Attorney draft covenants, to attend public hearings, to work through ADA and other codes with Building & Safety, to negotiate street/trees/lighting improvements required by Public Works, to address electric and water requirements with DWP, and other issues. Ten city departments are involved in each housing project.

All of this adds huge amount of cost:

• Soft costs – lawyers, consultant, expediters add 20%

• For most Affordable Housing projects, an approvals process necessitates no less than six appearances–and separate approvals–before the City Council, with each hearing adding, on average, 100 days to the project–resulting in almost two years of costly delays.

• Carrying costs – 4-7 years of interest and taxes on the land – 20%

• Fees, rules and requirements – 20%

• Parking requirements are now illegal in CA – but due to lack of mobility options in the city – developers still put in parking – which adds $50k-80k/parking spot (a 2BR needs 2+ parking spots)