Association for Public Policy Analysis & Management

Live, work, play. There may not be a better location to do these three things than in Orange County, California. Unfortunately, the current housing crisis has made living in this county more difficult. Apartment rents have increased by 15-25 percent since 2011 (Consumer Price Index), and for those looking to buy a home the median cost is now over $785,000 (Orange County Community Indicators, 2018).

These housing costs lead to a litany of unfortunate consequences. Economic growth is stymied as more of a resident’s paycheck is tied up in housing costs. Traffic worsens as people commute further for work. To avoid negative outcomes, the county must deal with the underproduction of new housing units.

According to the Orange County Business Council, 65,000 new homes are needed to properly house residents. Senate Bill 35 puts pressure on local and regional governments to meet their Regional Housing Need Allocation (RHNA) targets, while reducing city governments’ discretion to approve housing developments if RHNA goals are not met. Furthermore, Governor Newsom’s budget proposal includes proposed strategies that would withhold state transportation funds if cities fail to reach their stated RHNA goals.

A group of Master’s in Public Policy graduate students at the University of California, Irvine are working with the Association of California Cities – Orange County (ACC-OC) to address this problem. MPP instructor and former Newport Beach City Councilmember Tony Petros is serving in an advisory capacity on the project. We are looking to assist cities to develop a response to Sacramento’s new stringent housing policies by answering the question: What has constrained and/or enabled Orange County cities to meet RHNA goals? The research project hopes to provide tools that will help overcome the planning, logistical, and political obstacles cities face. There might be many impediments to housing growth. Is it lack of available land? Political will or NIMBYism? Is it constrained by regulations or resources? Based on the obtained information and through innovative policy analysis, the final report will provide a set of recommendations for cities to meet RHNA requirements.