September 25, 2023

The Honorable Gavin Newsom Governor of the State of California 1021 O Street,Suite 9000

Sacramento, CA 95814

RE: SB 684 (Caballero) SIGN –– Building Homeownership Dear Governor Newsom:

The New California Coalitionurges you to sign Senate Bill 684 to help preserve the California dream, increase home ownership opportunities, and address our housing crisisby streamlining approvals for small-lot, modest, and affordable

“Missing Middle” homes forsale.Coupled with existing housing production measures, SB 684 is essential so that moderate-income families and people of color have an equal opportunity to build generational wealth through homeownership.

SB 684 establishes astreamlined path for local governments to zone for small housing developments of up to ten (10) homeownership units per parcel,increasing access to an important tool to uplift people who havehistorically faced severe barriers to homeownership. These small homes are generallymore affordable and will help local governments comply with existing housing elementlaw.

As you know, California has a serioushousing shortage. Homeownership is the primary way in which most Americans build wealth and assets. Californiahas the third highest median home price in the country, which has pushed this Americandream out ofreach.People of color—more than 60% of the state’s population— suffer disproportionately for the brokenhousing market in California. African American homeownership rates are 26% lower, and Latino homeownership rates are 19% lower than White Californians.

There is no one reason for this gap, but the LAO has identified a lack of housing supply as one culprit, stating in a 2016housing affordability report that “the state’s housing shortage also makes many Californians—not only low–income residents—more likely to commute longer distances,live in overcrowded housing, and delay or forgo homeownership.”

SB 684 addresses the housingshortage while preserving tenant and environmental protections. It will enable more for-salehomes to be built on a

singleparcel of land if the appropriate legal assurances and protections are provided. Criticaltenant protection laws (SB 8, 35, and 330) applyto SB 684. To qualify for streamlining, these small, infill developments of 10 units or fewer must complywith local inclusionary requirements, setbacks and height limits, and environmental sustainability standards. It also prioritizes development near job centers that can reducegreenhouse pollution from long commutes.

SB 684 is an important step in restoring the California dream. Itwill make small homes – often built by small builders– easier, faster,and less expensiveto build. This will benefit homebuyers and allowmore hardworking Californians to live wherethey work.

We strongly recommend that you sign SB 684.

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Tracy Hernandez                                                                                                                                                                             Jim Wunderman

Co-Leader                                                                                                                                                                                        Co-Leader

New California Coalition                                                                                                                                                                  New California Coalition

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