Monday, May 16, 2016

Silicon Valley's housing crisis: Why we have it and what it costs us

Bob Dylan said you don't have to be a weatherman to know which way the wind blows.

Likewise, you don't need a degree in political science to know that the controlling majority on the Santa Clara City Council is making a u-turn on housing development -- surrendering public policy to the anti-development faction because that's the one that yells the loudest. By micro-managing Irvine's Mission Town Center proposal into a risky venture as far as the developer was concerned, the Council all but assured that our housing crisis will get worse. Now instead of 400 new apartments -- not much compared to the dimensions of the problem, I grant, but it was something -- we have ... nothing.

And this, I've been told without sarcasm, is responsive government in action.

Our children, young educated professionals, aren't here to yell. They took jobs in Dallas, Portland or Pittsburgh where they can afford to buy a house, according to Carson Bruno at Real Clear Markets. So they don't care if Silicon Valley slowly fades into the economic sunset. They're willing to pay higher property taxes (and they do) for a decent home rather than share a $3,000/month one-bedroom apartment with four people to pay the rent.

Council Members would strenuously deny the charge of being anti-development and say they're all for the right development. The beauty of the "right development" is like J.K. Rowling's wizarding world -- it's development that's invisible to the rest of the world.

As that's an impossibility here in the reality-based world, we continue -- and will continue for the foreseeable future, I'm betting -- to enjoy the quaint charm of mid-century strip malls and used car lots on El Camino.

But I wander.

As we know, Silicon Valley has a housing crisis. And the reason is pretty simple: we haven't built enough housing. Not only that, we're make things worse by building even less housing than we did as recently as a year ago.

Joint Venture Silicon Valley's 2016 "Silicon Valley Index" reports that the number of new residential construction permits dropped more than 50 percent between 2014 and 2015 -- from 11,000 to slightly less than 6,000. The percentage of multifamily construction dropped 20 percent. In that time, Silicon Valley built only 22 percent of the needed moderate income housing but 130 percent of the high income housing target, according to the Assoc. of Bay Area Governments (ABAG).

This isn't some kind of inevitable catastrophe like a tsunami or an earthquake. It's  largely of our own making. Only one factor, limited land, has passed out of our control. The rest are in our power to change.

First, there's the California Environmental Quality Act -- an equal opportunity tool for obstructing development and a lucrative revenue source for specialist attorneys with no end of tricks up their sleeves for using CEQA to the advantage of developers, unions and NIMBYs.

In a textbook example of the law of unintended consequences, CEQA is most effective at obstructing its ostensible goal of improving environmental quality.

The most frequently challenged projects are transit-oriented, urban infill, those using renewable energy and housing, according to Elana Eden at Panetizen. Then there's local governments' preference for commercial development with its higher revenues and lower service needs. And last but not least, are vociferous self-absorbed NIMBYs who, quite simply, want to freeze time in an imagined past -- agriculture is very picturesque to those who never had to do the backbreaking work and face the financial risk.

The cost of obstructionism is our economy.

In a 2015 California Legislative Office report, the LAO laid out the causes and costs of California's stratospheric real estate prices and rents in this infographic.

http://www.lao.ca.gov/Infographics/californias-high-housing-costs


There's a simple answer: build more housing. In won't be politically easy, now that the opponents of development have captured the spotlight. But what's worse: the noise from 100 complainers now or being judged 'guilty' by history for smothering the goose that laid the golden silicon eggs? 

Tuesday, May 3, 2016

Howling by Sarah Palin

This has been gestating a while....

Howling by Sarah Palin
(with apologies to Allen Ginsberg)

I am the worst mind of my generation, squirmishing the grammar, thawing hysterical refudiation
preening for TV cameras at primetime looking for an angry comb-over
lamestream media heads spinning for the hallelujiah going rogue left and right in the machinery of night,
you right wingin’ bitter clingin’
proud clingers of our guns we’re not going to chill, it’s time to drill, baby, drill down bloating budgets contemplating redheaded Sasquatch for Jesus
you rock ‘n rollers and holy rollers
hands that rock the cradle bared your second amendment to go kick ISIS ass
you teachers and teamsters
we are mad, and we’ve been had status quo has got to go
you cops and cooks
pro-lifers hallucinating Wasilla among the political class for ever and ever now or never
you hard-hats and the steel-toes and Joe six packs
footin’ the bill for these nations fightin’ each other yellin’ “Allah Akbar” on Jihad joyrides
you Trump and his trumpeters
stop the self sabotage bust it up self-destruct help’s on the way in submarine light of Russia
you guys sounding angry who bust up political correctness suicide vest you deserve the best send a message to the rest on the windows of their media ratings
I’m here with you in Iowa
 In my dreams I’m in it to win it stump with trump and wear the issues that need to be spoken debate on his sleeve

God bless Trump Tower and the art of the deal.