A Long-Needed Plan to Build More Housing in Los Angeles

by Gary Toebben

In economics, supply and demand impact pricing. Nowhere is that more obvious than in housing in Los Angeles. Our lack of housing has pushed prices upward and forced many employees to endure hour-long commutes between where they work and where they can afford to live.

Last month, L.A. Mayor Eric Garcetti discussed this crisis during a housing conference sponsored by the Building Industry Association of Los Angeles and Ventura Counties. The Mayor has established the goal of permitting 100,000 new housing units in the City of L.A. by 2021. During his speech, he outlined three key ways in which City Hall will work with developers and the construction industry to facilitate this goal.

1. Streamline development review to improve customer service by reducing time, uncertainty and cost. 
2. Create new incentives and resources to help developers build and preserve affordable housing units.
3. Integrate technology into the development process at City Hall.

Mayor Garcetti described a series of sweeping changes at the City’s Development Service Centers to integrate project review and approval functions. He said that City engineers and other customer service personnel are ready to provide immediate, same-day service, and that each project will have a single point of contact to coordinate inspections during entitlement and permitting. The Mayor likened the reforms to the concierge service at the Ritz and said that it would reduce construction time by three to six months for 600 projects a year.

To further streamline customer service, the Mayor promised that, within three years, the City would have a single online development portal called “Build L.A.,” which will integrate services for all of the development review departments within the City. “Build L.A.” will accept electronic plan submittals, replace 23 existing platforms and eliminate the need to shuttle plans between departments.

Mayor Garcetti concluded his speech by asking builders and developers to “join me in taking the brave steps that will guarantee safe, comfortable and affordable L.A. homes for our children and grandchildren.” I told the Mayor after the speech that our members have been asking for these reforms for decades and we are ready to help. Together we can improve the ratio of supply to demand for housing in L.A. and save our employees both money and time on the road. A winning combination for all of us.

And that's The Business Perspective.