What Power Delivered Such a Massive Impact to Your Zoning?
Whose behind all this upheaval in the State of Texas?
Big Named Players
I’ve been asked about the “backstory” and through some digging I’m finding ways to connect a few more dots.
In short, when a property owner makes a purchase of property in a city with zoning regulations, I think the city has the burden to send annual reports letting the owner know their current zoning and any plans to change if for the next 12 months. Simple. They have all the information, but there is no mechanism requiring them to do anything like this. The number one concern is erosion of quality of life which connects to financial well being. Will property values be negatively impacted?
If it can happen to a homeowner, whose to say it can’t happen to a developer? What if there is excess building for instance? What if the State creates another set of rules about rent control? Will the new rules consolidate development to the largest of large companies?
It doesn’t seem that long ago that the buzz was on the “missing middle” story. It was all about 3-8 unit buildings that could be fulfilled by smaller scale developers, However, that didn’t seem to do the trick. Or maybe the objectives changed.
What I can relay is the Texas Comptroller's office issued a report citing 320,000 needed housing units in time for the 89th State of Texas Legislative session. Lobbyists were available with the reports and stories to support the need to add new laws. The report used to fuel State of Texas Legislators is Home Policy (link) and it was produced by Up For Growth.
Up For Growth is not a grassroots organization. It has the real estate industry’s biggest institutional players involved such as:
John Prete, CCO Asset Management Americas Blackstone Real Estate Blackstone is the largest owner of units in the country.
Chuck Leitner, ran CBRE Global Investors as its Global Chief Executive Officer and is now with Up For Growth which is a lobbying group in effect.
Started early and connected at the federal level
Five years ago, Up For Growth used its lobbying efforts at the federal level which I think set the stage for what we’re seeing now in Texas as well as Florida, Arizona and California where states are taking over local control for zoning in the name of “housing.”
Here’s a 2020 press release about their aim to solve the housing crisis (link). The following is an excerpt:
Up for Growth Action supports policies focused on tearing down systemic barriers to housing development, such as exclusionary zoning, and increasing access to capital for affordable housing development. Advancing solutions that address these challenges creates what Up for Growth Action terms “accessible growth” – prioritizing housing production in areas of high economic opportunity, areas that leverage investments in transportation and infrastructure, and in areas where jobs already exist.
The group “Yes In My Back Yard” has a seat on the board as well and a tie in to US Congress. I learned "Yes In My Back Yard" is a 501(c)(3) nonprofit, while its partner organization, YIMBY Action, is a 501(c)(4). The two organizations operate in tandem to promote housing supply and affordability.
I’ve heard from neighborhood groups (outside of Texas) of meetings well attended by “Yes In My Backyard” supporters. Please note, there is no formal 501c(3) for “Not In My Backyards” or NIMBY as is often touted as the reason for the country’s expensive housing and rental prices. In an age where we are now learning that protesters may be paid, it begs the question as to the influences being made (or paid?) on local zoning decisions and pre-zoning, i.e. comprehensive plans and/or general plans.
The point is elected officials took an oath to serve the People. However, money talks doesn’t it? As you read the following from the press release 2020, I ask you to think about the legislation that has been written to support and defend single family homes. Are you aware of any?
Though a relatively new organization, Up for Growth Action already boasts progress in enacting its legislative agenda. Earlier in 2020, the Yes In My Backyard (YIMBY) Act passed the U.S. House without opposition. The Neighborhood Homes Investment Act, the Build More Housing Near Transit Act, and the Affordable Housing Credit Improvement Act – all endorsed and advanced by Up for Growth Action - were included in the House-passed Moving Forward Act. Though primarily focused on federal policy, earlier this year in California, Up for Growth Action led the effort to pass AB 2345, which expands the state’s density bonus law and is projected to add nearly 200,000 new homes to the state over the next five years, many of which will be affordable.
“Of the many national organizations, Up for Growth Action is well positioned to help lead the charge as communities around America seek to reimagine their entire landscape,” said Roderick Hall. “And given that housing is a civil rights issue, the work by Up for Growth Action to advance pro-housing policy matters now more than ever. We must ensure that all Americans have access to opportunity, especially our BIPOC and low-income communities.”
The incoming Biden-Harris Administration has already outlined a comprehensive housing plan well-aligned with Up for Growth Action, including a focus on reducing exclusionary zoning to increase housing stock, direct investment in housing, and recognizing the relationship between where people live and their overall wellbeing.
“We laid the groundwork for pro-housing policy through our work in the 116th Congress,” continued Kingsella. “In the 117th Congress, we will push these policies across the finish line.”
By now I think you can see the scope of the Texas State Bills - these are the breadcrumbs set up by massively well connected and funded entities. What has happened in Texas is now going on in other states like Arizona, California and elsewhere. While SB840 and SB2477 do not mandate an affordable housing program, I think this will develop over time.
In conclusion, what is just starting to sink in for Texas is now a hot topic in California with SB79, a similar concept to allow by-right multifamily. Funding and connections help create the ability to “blueprint” bills across the US which will start a major change in investment strategy. This includes how to view buying a home.
Although a home may not be the largest investment for some, it is for many. It is used to provide shelter, place of identify and security as well as to fund dreams and pursuits. The notion of apartment living or residential condominiums is very different.
I’ll be writing about how 15-minute cities relate to high density residential policies, i.e. State of Texas Housing bills. This is a transfer of property rights in Texas and beyond Texas.
