Assembly members press experts on why housing laws have not produced more homes

Assembly members pressed witnesses on whether statewide housing laws are producing the housing units policymakers intended and asked what could be done to speed results.

Brian Euler of the Legislative Analyst's Office told the committee that the fundamental problem is a persistent shortage of housing driven largely by regulatory and local constraints on building. "Home building activity still remains at about the same level it was a decade ago," Euler said, arguing the legislature should assess which recent laws have worked, which have not, and whether state action can reduce protracted administrative or regulatory review.

Committee members raised accessory dwelling units as a policy that has produced measurable activity but stressed limits. "There's only so much opportunity there with ADUs," Euler said, noting ADUs serve a segment of the market and will not substitute for broader increases in housing supply. Assemblymember Patel and Assemblymember Stephanie asked whether the state is tracking implementation and enforcement of housing laws such as changes to density bonus rules and SB 4; experts suggested the Legislature can fund or request studies through the budget process and that the California Department of Housing and Community Development (HCD) has oversight tools.

Witnesses warned that state-level streamlining can be undermined if local jurisdictions attach many conditions to receive benefits or if litigation channels persist. Examples discussed included CEQA-related streamlining efforts that did not always shorten project timelines because of extensive conditions and litigation risk.

Assemblymembers emphasized the need for implementation studies and better coordination between the state and local governments to ensure statutes produce housing on the ground.