Approval delays and uncertainties add to housing prices and rents in four ways. First, and perhaps most important, they make it extremely difficult for small-scale investors and developers to compete in the marketplace. Small-scale developers typically lack the access to the cash and financing required to withstand unanticipated delays. In the minds of investors and lenders, delays and uncertainties mean higher risks. Developers are in the business of matching the timing of new housing production to projected household growth or demand.
Development is a risky business, and accordingly, developer profit margins vary widely.
First, it would enable cities to undertake a single Master Environmental Assessment for multiple development sites, thereby significantly reducing the delays associated with preparing environmental documents. Third, it would serve to increase developable land supplies, thereby reducing upward pressures on multi-family land prices. Environmental reviews under CEQA, and building permit reviews would not be subject to this limit. Consolidate plan reviews and permits where possible. San Jose, for example, often requires developers proposing projects in Planned Districts to obtain separate rezoning and a PD permits.