While the League supports reasonable reform of eminent domain, we are deeply concerned about the far-reaching impacts of this measure - impacts that would undermine cities’ ability to plan for and build the housing and related infrastructure that California so badly needs. Here’s why.
Proposition 90 will cripple local efforts to assure that there is adequate housing for all working families.
Proposition 90 would require new and unreasonable payouts whenever agencies’ zoning decisions cause impacts the value of property. For example, cities that create zones for "starter homes" could be required to pay for the difference if a developer can show that current zoning (such as for large lot luxury homes) would be more valuable. Likewise, liability may attach if a city decides to zone land currently allotted for commercial development for residential uses.
Even more troubling is that Prop. 90 provides a monetary reward for NIMBY claims. Neighbors to proposed affordable housing projects may be able to make a claim for payment upon a showing that the project caused them a "substantial economic loss," be it by increased traffic, changed neighborhood character, or any other means.
These provisions would strip cities of local control and make it much more difficult to zone for the housing we need to accommodate a growing population.
Prop. 90 will also increase the cost of future infrastructure projects needed to serve additional families and new housing. Schools, roads, utility services and all public works will become prohibitively expensive or impossible to complete.
Proposition 90’s extreme provisions would impact all state and local public works projects wherever property acquisitions are required, including: