Opinion: California’s hidden housing tax will deepen racial, economic inequities
Traffic in San Diego File photo courtesy SANDAG California is home to chosen of the bulk diverse and vibrant communities in the nation but beneath that diversity lies a persistent and growing inequality in housing access At Two Hundred for Homeownership we fight every day to break down the systemic impediments that keep too a great number of Californians from safe stable and affordable housing We know firsthand that housing is more than a roof over your head It s the foundation of fitness teaching opportunity and dignity Yet across the state deep racial and economic disparities persist More than half of Black and Latino renter households spend over of their income on rent qualifying them as rent-burdened Black homeownership is just nearly points below white households while Latino homeownership stands at points lower than white households For decades low-income families and communities of color have fought to hold onto their homes and neighborhoods Now a little-known provision buried in the state budget threatens to make that fight even harder Tucked deep into the pages of the housing bill passed by the Legislature in June is language that will allow local governments and regional agencies to impose vehicle-miles traveled fees on new housing construction Marketed as environmental mitigation tools VMT fees are in reality hidden housing taxes that will land squarely on renters first-time buyers and working families The numbers are alarming A Caltrans-funded research unveiled these new taxes could reach per unit annually for years a staggering for a single home or apartment That s the equivalent of slapping a tax on every mile driven over a government-set limit For renters that s an extra every month a increase over California s median rent For homebuyers it s on top of nearly in state and local mandates already baked into the price of a new home Even more troubling these costs don t have to stay in the neighborhoods paying them Revenue from VMT taxes can be funneled into a statewide fund with no guarantee of local benefit meaning working-class communities could be forced to subsidize projects miles away while their own housing necessities go unmet The harm won t be felt equally Black and Latino households who are already more likely to rent face displacement or live in redevelopment-targeted areas which will be hit hardest Families in rural and suburban areas will also pay the price In a multitude of of these communities affordable housing is increasingly located farther from job centers forcing residents to drive longer distances Under these provisions purely living farther from work becomes a penalty and desperately needed housing projects in these regions could be delayed or abandoned altogether Assembly Bill gives local and regional agencies sole discretion to impose these taxes with no cap on how high they can go There is no populace vote no meaningful input from the families and communities who will bear the cost This uncertainty will stall construction drive up prices and kill good-paying jobs in construction engineering and the trades further harming the very communities our state alleges to prioritize Housing is not just a commodity It is the foundation of stability physical condition training and opportunity Every barrier we put between families and a safe affordable place to live is a step backward Every time we add cost delay or uncertainty to housing construction we widen the gap between those who can afford to stay in their communities and those who can t We must pursue environmental and infrastructure goals without sacrificing equity or affordability That starts with fixing the housing act by removing these provisions and ultimately working together for solutions that protect our state create jobs and keep housing within reach for all Californians urban suburban and rural alike We ask legislators to fix the law as this hidden tax doesn t move us forward It pushes working families further behind Robert Apodaca is founder and executive director of Two Hundred for Homeownership an Oakland-based nonprofit organization that seeks to mitigate the increase in poverty and the growing wealth gap in California through homeownership and home building
