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A perplexing question arises in the face of California’s escalating housing crisis: Why are communities being coerced into conforming to new density bonus projects under Governor Newsom’s reforms? At the same time, why does the Government remain passive in converting its underutilized buildings into housing? It’s a stark contradiction where, on the one hand, millions are spent on temporarily alleviating homelessness [1], yet, on the other, there’s a glaring inaction in utilizing readily available government-owned properties. On a 2011 list of underutilized Government properties, California had 1307 sites, and since COVID, that list has grown. If you love data and really want to dive into the wasted money and properties, read this 2019 report.  This begs the question: Has the Government unwittingly contributed to the worsening housing crisis through inaction or lack of initiative?

The reality is hard to ignore. California’s new housing reforms, like the changes to the Density Bonus Law, are intended to streamline housing development [3], yet they place the burden of accommodating growth primarily on communities. In the meantime, the same Government has been slow to lead by example, sitting on a goldmine of underutilized properties that could be transformed to address the very crisis they are trying to solve.

The United States is grappling with a severe housing crisis, yet a substantial number of government-owned properties remain underutilized. This situation sharply highlights the Government’s slow response to leveraging these assets to alleviate the housing shortage.

In 2011, the Obama administration identified approximately 14,000 buildings and structures as excess, as visualized on an interactive map. These ranged from sheds to underutilized buildings [1]. However, a 2020 Harvard Business Review article escalated this figure to around 45,000 half-empty public buildings. It argued that this underutilized space represents a significant untapped value, which could be converted into housing and other beneficial uses [2].

Despite this recognition, a report by the U.S. Government Accountability Office (GAO) in 2023 highlighted the ongoing challenges. The report, GAO-24-107006, underscores the lack of effective benchmarks and strategies for managing these properties [3].

Just the other day, April 3, 2024, Representative Adam Schiff, D-Burbank, introduced the Government Facilities to Affordable Housing Conversion Act, which eyes the U.S. government’s inventory of underutilized buildings, numbering approximately 45,000, with the intent to repurpose them into affordable housing. Schiff’s measure seeks to inject $250 million annually from fiscal year 2025 to 2030 to spearhead these conversion projects. His quote, “In a time where so many Americans are continually struggling to find safe, affordable housing, the Government Facilities to Affordable Housing Conversion Act represents a step forward in our efforts to address the housing crisis,” Schiff said in a statement. “By repurposing government buildings that have outlived their original use, we’re not only making efficient use of our resources but also increasing the supply of affordable housing.”  Hey Adam, it’s not a new idea, and it’s something you and our Government have known about for the past 13 years. I believe “spearhead” is simply Governments code for; we will spend more money studying, not doing.

In California, where homelessness and housing unaffordability have spiked, the push for dense housing projects in communities contrasts starkly with the potential of these unused government properties. The state’s strategy has raised concerns about altering community landscapes without adequately addressing the root cause: the housing shortage and the inefficient use of available resources.

The Government’s inertia in repurposing these assets, as evidenced by the ongoing maintenance of these underutilized sites, raises questions about its commitment to solving the housing crisis effectively.

The state of California, while grappling with the twin crises of homelessness and a lack of affordable housing, appears to be funneling substantial funds into studying these issues rather than actively solving them. The expenditure on staffing and high-level positions, including CEOs, to oversee these problems, particularly in areas like LA County, is noteworthy. This approach has led to such an extent of fiscal scrutiny that the LA Homeless Services Authority is now under audit to track where taxpayer money is being utilized [2], [5].

Simultaneously, the Government continues to spend taxpayer money on maintaining underutilized buildings, some of which have been in this state for over two decades. This raises the critical question: What if the Government had channeled these funds and resources directly into creating permanent housing solutions? The discrepancy between the potential for action and the actual steps taken is glaring. Communities and taxpayers are repeatedly reminded of the State housing goals, and many have seen massive projects proposed and built that disrupt their resources and skylines. Yet, there has been no significant advancement in addressing homelessness and housing affordability. What if the Government acted decisively and efficiently rather than perpetuating a cycle of analysis and administrative expansion? Would we have more tangible progress in solving these urgent social issues?

One must wonder if there is a missed opportunity or a lack of political will. Is the Government’s reluctance to utilize its assets a mere oversight, or is it a calculated stance, allowing the housing crisis to intensify under their watch?

 

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