NIMBYs, Design Standards, Parking Add to Costs for Affordable Housing

Community opposition (NIMBYs), design changes and parking requirements are among the factors driving up the cost of building affordable housing in California according to a report from several state housing agencies.

The report was designed to find ways to make the state and federal Low Income Housing Tax Credit Program more efficient. The program, which is is one of the largest pools of money available to fund affordable housing in California, contributed $160 million to 113 projects around the state last year.

For example, San Mateo County is running an almost 24,000 housing unit deficit while in Los Angeles County alone, nearly 500,000 more units are needed to meet demand. The study estimates that projects with major community opposition saw their costs go up by 5 percent and underground parking added 6 percent to the cost.

Mandating more stringent construction standards and energy-efficiency requirements also added to the cost (an average of 8 to 10 percent). The report noted larger projects, those built by larger developers and apartments for senior citizens tended to have lower costs per unit.

Interestingly, land costs were not measured, which can vary widely depending on location, site conditions, how a site is acquired, and the growth or no growth policies of a jurisdiction. The report did find that costs per unit were highest in San Francisco and lowest in the northern and central parts of the state, reflective of constraints on land made available for housing and growth control policies.