Housing, homelessness, and the stakes in California’s gubernatorial race

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California’s leading Democratic gubernatorial candidates generally agreed on the following points at a housing forum: That means the state’s affordability crisis isn’t just about money, it’s about how difficult it is to build housing in the Golden State. From modular construction to statewide permits and penalties for cities that don’t comply, the candidates offered competing visions for breaking down the red tape they say is holding back housing supply.

The idea emerged at a May 8 bipartisan forum moderated by Ezra Klein and hosted by the New York Times, the San Francisco Foundation, and the Housing Action Coalition, where Democrats Xavier Becerra, Matt Mahan, Katie Porter, Tom Steyer, and Antonio Villaraigosa faced questions about housing production, homelessness, and housing affordability ahead of California’s June primary.

Leading Republican candidates Chad Bianco and Steve Hilton were invited to the forum, but Klein explained that “they were unable to attend the event.”

Below are key takeaways from forums on topics such as promoting housing and tackling homelessness.

https://www.youtube.com/watch?v=6HETWu7Kfu8

Addressing high costs and slow deployment of housing projects across the state

The candidates largely agreed on the factors driving California’s housing crisis. The idea is that there is too little construction and the development process is so expensive and time-consuming that prices soar before the homes are even built.

Steyer argued that much of the problem stems from high labor and material costs, and said the state needs to “make some substantive changes” to produce affordable housing. He proposed moving away from traditional on-site construction in favor of modular housing, where the state buys prefabricated parts and provides them to developers, similar to the automotive supply chain.

Porter focused on reducing bureaucracy, calling for a single development permit for the entire state to streamline approvals and reduce delays. Shortening the construction period directly translates into lower construction costs, she said.

San Jose was repeatedly cited as a model for speeding up housing production. Mayor Matt Mahan said the city will help move projects forward quickly by simplifying the approval process and granting exemptions to developers who comply with zoning rules. He said he supports a similar “builder’s relief” approach at the state level.

Mahan, Villaraigosa, Becerra and Porter also pointed to local “impact fees” (one-time fees imposed by cities and counties) as a major cost driver, and argued that the state needs to rethink how these fees are applied to new homes.

Encouraging cities and developers to move forward with housing development

Villaraigosa argued that instead of imposing new taxes on homeowners and businesses, the state should reinstate its housing redevelopment program. He said these efforts could incentivize the approval of new projects by allowing cities to reinvest increased property taxes into local development.

Echoing this argument, Becerra said the state needs to create clearer and more reliable funding channels for city and county leaders working to expand housing and comply with California’s housing factor requirements.

But Becerra cautioned against treating such funds as an unlimited pool. Instead, he argued, the state should prioritize communities that actively partner with state officials to implement approved housing plans. He added that cities and counties that refuse to comply with the law or fail to build approved housing should face penalties.

In addition to Becerra, Steyer and Porter expressed support for pushing new legislation that would create billions of dollars in bond funding as a way to speed up housing construction and encourage local governments to move forward with projects.

What went wrong with California’s homelessness policy and how will candidates try to address it?

Klein then shifted the discussion from housing development to homelessness, asking the candidates what California did wrong and how they would address the crisis.

Becerra, who previously served as U.S. Secretary of Health and Human Services under President Joe Biden, said California has spent millions to get people off the streets, but ultimately “didn’t focus on the results.”

He argued that the state is failing to provide the mental health services needed to keep people in their homes. Instead, California should create a stabilization fund that city leaders could use to provide immediate financial assistance, focusing on residents “on the brink” of homelessness, Becerra said.

The proposal is modeled after Santa Clara County’s Homeless Prevention Program, which provides short-term emergency funds for rent, security deposits and other housing-related expenses to prevent people from falling into homelessness.

San Jose Mayor Matt Mahan said the program has been proven to be effective and cost-effective. He noted that 92% of assisted households remain housed and that the program costs the county an average of about $6,500 per person, far less than the long-term costs associated with homelessness.

Klein acknowledged the promise of direct financial aid, but questioned whether states could implement such a system without falling into bureaucracy and red tape.

Porter countered that California already has a similar program in place that provides direct financial assistance to families. She argued that states could streamline these efforts by consolidating several assistance programs into a single system and providing funding directly to households.

“We replace five or six different programs designed to meet basic needs with something like CalNeeds or CalNecessity,” Porter said. “This is one program, it’s a lot of money, and we’re trusting families to understand what they need to do to survive.”

Meanwhile, Steyer and Villaraigosa said the state should focus on expanding its emergency transitional housing program, which provides short-term private units and supportive services as a bridge out of homelessness.

Steyer argued the state’s current approach is failing, pointing to the limitations of shelters and permanent supportive housing.

Villaraigosa echoed that criticism, noting that despite spending $24 billion at the state level, homelessness continues to rise. He said only two approaches, rental assistance and temporary housing, have been consistently successful, and urged the country to expand these programs instead of chasing, in his words, “perfection.”

When will California vote for a new governor?

The primary election will be held on June 2nd, and the top two gubernatorial vote-getters, regardless of party, will advance to the general election on November 3rd.

View California gubernatorial election polls

According to a SurveyUSA poll released on Monday, May 4, 20% of voters would vote for Hilton if the primary were held today. This was followed by Steyer with 18%. Bianco and Becerra were the only other candidates with double-digit support.

on the other hand, Another poll shared by the California Democratic Party on May 4 found that 18% of likely voters supported it. Hilton if the primaries were held today. But 18% of likely voters also believe they support Becerra. The former U.S. Secretary of Health and Human Services defeated Steyer, who has frequently led among Democratic candidates in opinion polls.

How to tell if you’re registered to vote

Not sure if you’re already registered to vote? You can check by submitting your name, date of birth, and a few other pieces of information on the California Secretary of State’s website.

Noe Padilla is a Northern California reporter for USA Today. To contact him, npadilla@usatodayco.comX Follow him at @1NoePadilla or Bluesky @noepadilla.bsky.social.. Sign up for the TODAY Californian newsletter or follow TODAY Californian on Facebook.

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