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Housing Elements
Housing element law was first enacted in 1969 and mandated that local governments adequately plan to meet the housing needs of all economic segments of the community. In establishing the law, the need was recognized that in order for the private market to adequately address housing needs and demand, local governments must adopt land use plans and regulatory schemes providing opportunities for, and not constraining, housing development. The law acknowledges the integral role housing plays in the overall economic vitality of the State and highlights the State's interest in ensuring that local regulatory barriers do not dictate the general condition of the housing industry or economy in California. For example, according to the California Business Roundtable 80 percent of recent survey respondents indicated that the cost of housing has a bad effect on their business. HCD's administration of housing element law allows the State to promote regulatory reform to make California's housing markets open for development, rather than an impediment to job retention and creation.