The Bay Area Becomes LA North

Uh oh, it is about to get a whole lot more crowded around here in the Bay Area if our Gov has his ways.

http://www.bizjournals.com/sanfrancisco/blog/real-estate/2016/05/brown-affordable-housing-development-approval-ceqa.html?surround=etf&ana=e_article&u=T8a7K0dcAgBxliH8kC6SjQ095de5e4&t=1463498198&j=73271932

I actually kinda like it :slight_smile:

It does say local height and density limits would still be in force. So no monster building in the middle of cottages, I guess.

As owners I like high housing prices. Let’s be honest here. But I do worry prices too high will kill the goose that lays the golden eggs. If our economy tanks because it’s too darn difficult for people to live here, we all lose.

How many projects would be profitable with 20% low income units?

Wouldn’t buyers simply factor that into the cost of buying the land?

If every developer has to do 20% BMR, every new project will have that base cost baked in. Everyone who buys new will pay that extra bit. It will make new projects more expensive compared to old, existing houses. But among other new projects it will be a non-issue.

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BMRs are a tax on market rate buyers…most of whom didnt get a chance to vote on them.taxation without representation…What the Revolutionary War was fought for…UnAmerican and unconstitutional. …Jerry Brown should kill it at the State level…

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@Elt1

The bottom line is, people are getting soft (literally and figuratively speaking). Everyone wants steak at hamburger prices, and they want it NOW!!! Unfortunately, to do business around these parts BMRs are not going to go away anytime soon. It would be great if we just let builders build and let market forces work, meaning if we had a glut of housing, rents/sale prices will probably fall inline with that. Falling rents and sale prices will then curtail excess building as projects don’t pencil out financially. We then inch towards equilibrium where you have “enough” housing supplied vs demanded via natural not artificial induced forces.

BMR is actually a terrible deal for the buyers. They never build any wealth with BMR because when they sell they have to sell at artificially low price dictated by the government. But at least they get the rent money back.

It should be used as the absolute last resort for the buyers. I myself would rather buy in crime infested Oakland than a BMR in some pretty part of SF. At least I have a shot at winning the appreciation game and move up from there. With BMR one is forever stuck.

Well, you and a lot of folks probably wouldn’t qualify for BMR purchases anyway. It is the classic case of making too much to qualify yet you can’t afford to buy at the alternative full market rate. Middle class folks are screwed always.

BMRs came from dem political hacks pandering to their public unions base…the only politically powerful unions left…teachers cops and fireman…