California stakeholders call for streamlined housing process and new agency formation

On May 13, 2025, the California State Assembly convened a joint hearing of the Assembly Business and Professions Committee and the Assembly Housing and Community Development Committee to address pressing issues in the state's housing and homelessness strategies. A significant focus of the discussions was the need to reform the closing process for housing projects, which stakeholders identified as a critical barrier to timely development.

Participants in the meeting, including representatives from various associations and developers, emphasized that the current closing process, particularly at the California Department of Housing and Community Development (HCD), is excessively lengthy. Many stakeholders expressed a strong desire for a more business-oriented approach that could reduce the closing timeline from as long as 18 months to a more manageable three to six months. This urgency is underscored by rising interest rates that are impacting state resources and overall project viability.

Former developers highlighted the hidden costs associated with delays in the closing process, noting that general contractors have begun to factor in these uncertainties into their bids. This behavior reflects a broader concern within the market about the inefficiencies stemming from the current system, which could ultimately inflate project costs and hinder the development of affordable housing.

Another key topic discussed was the proposal to establish a California Housing and Homelessness Agency. Elise Borth, representing Enterprise Community Partners and All Home, voiced support for this initiative, arguing that the existing framework of funding from multiple state departments is duplicative and inefficient. Borth called for a streamlined application process that consolidates financing options, such as tax credits and bonds, to facilitate quicker and more effective housing solutions.

The meeting concluded with a call for a coordinated governance framework that would enhance collaboration among agencies involved in housing development. Stakeholders expressed a strong desire for alignment in processes, particularly in the early stages of funding allocation, to improve overall efficiency and effectiveness in addressing California's housing crisis.

As the Assembly moves forward, the discussions from this hearing highlight a critical juncture in California's approach to housing and homelessness, with potential reforms aimed at expediting development and improving resource allocation. The outcomes of these discussions could significantly influence the state's ability to meet its housing demands in the coming years.