From Policy Fight To Meme Furor: LA Density Conflict Rages

Real estate investors, developers and homebuilders are closely watching California to see how far the state will go in removing barriers to building more housing and increasing density.

While California has often served as a guinea pig model that other states follow, it also exemplifies the conflicts that arise when the state imposes new rules on local governments.

A podcast discussion about California Senate Bill 79, which would require higher housing density near public transit, erupted into a viral social media moment. Los Angeles Councilmember Imelda Padilla, who opposes the bill, boasted on a podcast about how she reduced the size of a fully affordable housing development.

Since “Pod Save America" aired, construction labor unions have agreed to support, or not oppose, the bill after it was amended to ensure union labor builds new housing over 85 feet or on land owned by transit authorities.

Our agreement with labor on SB 79 will yield more homes, better jobs, and quicker timelines,” Brian Hanlon, CEO of California YIMBY and a bill sponsor, said in a statement.

The State Building and Construction Trades Union, which had opposed the bill, is expected to shift to a neutral stance while Unite Here joins as a sponsor.

Bill supporters still have a ways to go to convince and convert L.A.'s lawmakers, who continue to oppose the bill.

With a mix of pride and defensiveness, Padilla explained on the podcast that she got a developer to cut a six-story building to three stories, add more parking and electric vehicle chargers, and remove office space.

This level of micromanaging tends to discourage developers.

State Sen. Scott Wiener, SB 79’s sponsor, didn’t react, but host Jon Lovett — a former speechwriter for President Barack Obama, comedian, and screenwriter—was gobsmacked.

Lovett’s reaction exploded as a meme-worthy clip on social media, and Padilla’s comments drew outcry from the “yes in my back yard” crowd.

Her actions contradict the growing narrative that density is the solution to California’s housing crisis. She was among eight council members who recently voted for a resolution to oppose SB 79, and she has a history of opposing density.

Much of the opposition stems from concerns about losing local control, although Wiener said on the podcast that the legislation still allows cities considerable flexibility.

I generally believe that a council member’s No. 1 job description in the City of Los Angeles is land-use decisions,” she said.

Politics of Abundance

The podcast episode is titled “The Abundance Debate Hits California.”

Abundance is a key term because it’s also the title of a book published in March by Ezra Klein and Derek Thompson, which California Gov. Gavin Newsom, Wiener, and other lawmakers have embraced. The authors emphasize that housing scarcity in Democratic states results from layers of regulation, institutional inertia, and political gridlock.

They argue that removing unnecessary roadblocks can create dynamism and abundance.

Over the past several years, Newsom and state lawmakers have passed laws to reduce regulatory burdens as part of the response to California’s long-running housing affordability crisis.

“Abundance” didn’t come into the conversation until June, when Newsom signed a major reform into law. This measure exempts new infill housing developments from intensive environmental reviews under the state’s 1970 California Environmental Quality Act, a tool “not in my backyard” groups and environmentalists have used to delay or halt projects.

We're urgently embracing an abundance agenda by tearing down the barriers that have delayed new affordable housing and infrastructure for decades,” Newsom wrote on social media, after signing the sweeping change.

Scarce Abundance in L.A.

Padilla’s comments about the development project followed Lovett’s reminder that L.A. is supposed to produce 456,000 housing units between 2021 and 2029. Wiener sponsored the law that set this goal in 2018.

We’re currently on track to hit maybe a third of that,” Lovett said.

He noted that California is losing people to states like Texas, which are building more housing.

This is an emergency,” he said. “Are you focused on what will ultimately make California affordable for the people in your district?”

Padilla mentioned her push for tiny homes in her district, but her constituents demanded she kill the affordable project. Her effort failed due to a 2022 directive from L.A. Mayor Karen Bass that accelerated approvals for 100% affordable housing and required city departments to complete reviews within 60 days, with building permits to be approved within five days.

Instead, she got together with the developer, a high school across the street, and other stakeholders to drastically alter the project’s design.

Padilla’s broad view of real estate developers, a position often shared by those who oppose greater density, is that they will build whatever they think makes them money, regardless of a community’s needs.

We cannot assume the superhero here is the developer,” she said.

This perspective is a significant contributor to California’s ongoing housing crisis and the zoning battles occurring nationwide.

Wiener said the California system has been broken for years, citing insufficient zoning for housing and a permitting process that immerses developers in a political environment that can bog down projects for years or kill them altogether.

And that’s government at its worst and that’s helped get us into the crisis,” he said.