Featured News

California threatens to fine cities that don't build enough homes

The state of California is trying to address housing shortages with a new bill that gives it the power to fine cities that don’t build enough new homes. Cities in the state could face fines of up to $600,000 per month if they don’t meet building targets, lawmakers said.

Under the bill, courts will be able to impose the fines on a city or county that’s found to be in violation of state laws stipulating how much housing a community requires to build to meet its population needs.

Local governments found in violation of these laws would be given one year to comply before the fine kicks in. Courts also have the power to take over local governments’ housing plans after six months of fines.

California is taking action as its earned a reputation for its shortage of affordable housing. State Governor Gavin Newsom is leading the charge to fix the situation, having recently pledged to create a $1 billion fund that rewards cities that implement “pro-housing” laws designed to increase home construction.

“If cities aren’t interested in doing their part, if they’re going to thumb their nose at the state and not fulfill their obligations under the law, they need to be held accountable,” Newsom said at a recent news conference.

Earlier this year, California lawmakers sued Huntington Beach and accused Orange County of not doing enough to add housing for low-income residents. Newsom has threatened to sue other cities for the same lack of action.

But not everyone is convinced that punishing individual cities is a good idea.

“We find new penalties on local governments already struggling to add housing and address homelessness concerning,” Graham Knaus, executive director of the California State Association of Counties, told The Sacramento Bee. “Nonetheless, California’s 58 counties stand ready and committed to meet this challenge.”

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

Best Ways to Choose a Mortgage Lender

When buying a home, one of the essential tasks is choosing a lender. With so…

15 hours ago

A Brief Guide to CMB Securities

Commercial mortgage-backed securities (also known as CMBS) are a type of fixed-income security forming 2%…

1 day ago

How Important Are Real Estate Reviews? 5 Things to Know

Research from 2018 showed that only 11% of Americans trusted real estate agents. Much of this came…

2 days ago

How ChatGPT Can Be a Great Marketing Tool for Agents

The global advertising industry was worth $590.3 billion in 2021 and has grown since then. This includes…

2 days ago

A suppliers guide to marketing to estate agents

There are many factors that can differentiate one estate agent supplier from the next, so…

3 days ago

Digital Curb Appeal: The Secret to Showcasing Properties Properly Online

In the real estate sector, it’s well-known that the value of curb appeal simply can’t…

5 days ago