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SACRAMENTO, Calif. (AP) — Faced with a crippling housing shortage that is driving prices up while putting more people on the streets, California's governor and legislative leaders agreed Thursday on a plan to reward local governments that make it easier to build more housing faster and punish those that don't.The proposed law, which still needs approval by both houses of the Legislature, would let state officials reward "pro-housing" jurisdictions with more grant money for housing and transportation.It also calls for the state to sue local governments that do not comply, possibly bringing court-imposed fines of up to 0,000 a month.The agreement removes one of the final barriers to Newsom signing the state's 4.8 billion operating budget. Lawmakers passed the budget earlier this month, and Newsom has until midnight Thursday to sign it. He has delayed his signature while negotiating the housing package with state lawmakers.The housing plan does not define what local governments must do to be declared "pro-housing," other than passing ordinances involving actions to be determined later.In a joint statement, Gov. Gavin Newsom, Assembly Speaker Anthony Rendon and Senate President Pro Tempore Toni Atkins — all Democrats — said the agreement "creates strong incentives — both sticks and carrots — to help spur housing production across this state."RELATED: Newsom proposes plan to withhold gas tax funds from cities that don't meet housing requirementsCalifornia's population is closing in on 40 million people and requires about 180,000 new homes each year to meet demand. But the state has averaged just 80,000 new homes in each of the past 10 years, according to a report from the California Department of Housing and Community Development.Home ownership rates are the lowest since the 1940s while an estimate 3 million households pay more than 30% of their annual income toward rent.State officials often blame local zoning laws for slowing the pace of construction.In January, Newsom proposed withholding state transportation dollars from local governments that do not take steps to increase housing. Local governments pushed back hard, resulting in Thursday's compromise.The court fines could be difficult to collect. A court would have to rule local officials are out of compliance. And once that happens, jurisdictions would have a year to comply before they would have to pay a fine.If they refuse, the state controller could intercept state funding to make the payment. In some cases, the court could appoint an agent to make a local government comply. That would include the ability to approve, deny or modify housing permits."This bill puts teeth into existing state laws, to ensure cities and counties actually follow those laws," said state Sen. Scott Wiener, a Democrat from San Francisco who is chairman of the Senate Housing Committee. "At the same time, we need to be clear that California's existing housing laws, even with better and more effective enforcement, are inadequate to solve our state's massive housing shortage."Lawmakers have already agreed on most major items in the state budget. They voted to expand taxpayer-funded health insurance to adults younger than 26 who are living in the country illegally.They also agreed to tax people who refuse to purchase private health insurance and use the money to help families of four who earn as much as 0,000 a year to pay their monthly health insurance premiums.Lawmakers have not yet voted on details of a plan to spend 0 million from the state's cap and trade program to help improve drinking water for about a million people. 3635

SACRAMENTO, Calif. (AP) — California lawmakers on Tuesday moved to cap annual rent increases statewide for most tenants as a limited housing supply in the country's most populous state continues to drive up the cost of living while pushing more people to the streets.The California Senate voted 25-10 to cap rent increases at 5% each year plus inflation for the next decade while banning landlords from evicting tenants without just cause. Democratic Gov. Gavin Newsom says he will sign the bill into law, but first it must survive a final vote in the state Assembly where the California Association of Realtors is pushing to defeat it. Lawmakers must act by Friday.California's largest cities, including Los Angeles, Oakland and San Francisco, have some form of rent control, but a state law passed in 1995 has restricted new rent control laws since that year. In most places, landlords can raise rents at any time and for any reason, as long as they give advance notice.In Pomona, about 30 miles (48 kilometers) east of Los Angeles, Yesenia Miranda Meza says her rent has jumped 20% in the past two years. Monday, she marched with other tenants through the halls of the state Capitol chanting: "Once I've paid my rent, all my money's spent.""I'm a rent increase away from eviction, and that's with me having two jobs," she said "So if this (bill) doesn't go through and I get another rent increase, I really don't know what I'm going to do. I'm either going to be homeless or I'll have to cram into a room with a whole bunch of other people."Opponents have likened the proposal to rent control — a more restrictive set of limitations on landlords. California voters overwhelmingly rejected in a statewide ballot initiative to overturn the 1995 law last year.California Association of Realtors President Jared Martin said the group's 200,000 members strongly oppose the bill because it will "reduce the supply and quality of rental housing." It's an argument echoed by Republican Sen. Jeff Stone, who said developers would have no reason to build new housing if they can't make money off their investment."We'll see even a greater housing crisis because of the low supply of housing," Stone said. "Either this will force our constituents to join a 60,000 homeless population that we see in the LA area, or they will simply just move to another state."But supporters say the bill includes lots safeguards to prevent that from happening. The rent caps don't apply to new construction built within the last 15 years — a provision that prompted the California Building Industry Association to drop its opposition.Plus, the caps don't apply to single family homes, except those owned by corporations or real estate investment trusts. And duplexes where the owner lives in one of the units are also exempt."We all desperately want to build more housing. It was a very important aspect of this bill," Democratic Assemblyman David Chiu said.But even some Democrats who voted for the bill on Tuesday signaled they didn't like it, a sign the bill is not guaranteed to pass. Sen. Steve Glazer, a Democrat representing a district in the San Francisco Bay area, cited a 2018 study by Sanford University showing landlords under rent control are more likely to nudge tenants out by spending less on maintenance."Any time you reduce rate of return on an investment, you make that investment less attractive, and this is true even if new investment is exempted for 15 years as this bill does," he said.But Carolyn Wilson, a 71-year-old Sacramento resident, said she needs help now. She said her rent has increased about 0 each year and her landlord just gave her a 60-day notice to move out for on reason."All I do is get up on the computer looking for some place to go," she said. "With my income, I can't afford anything." 3819

SACRAMENTO, Calif. (AP) — California’s attorney general has dropped a lawsuit seeking the names and contact information of every person who used one of the state Republican Party’s unofficial ballot drop boxes. The party used the boxes to collect ballots in some counties with closely contested U.S. House races. It’s legal in California to collect completed ballots and turn them in on behalf of voters. But state law says only county election officials are allowed to deploy ballot drop boxes. Friday, the attorney general’s office announced it was able to ensure that voters’ ballots were counted. California Republican Party officials say the lawsuit was a political ploy. 684

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom says his children are among those resuming in-person classes after months of distance learning due to the coronavirus pandemic. Newsom says he believes children learn best in the classroom and his administration will support districts with personal protective gear and testing resources so they can safely reopen. Newsom has four children in private school. His administration has approved more than 1,200 requests for waivers to allow for in-person education for elementary school students in counties where coronavirus cases remain widespread. Schools in counties where cases have declined below state-mandated thresholds can broadly reopen. 706

SACRAMENTO, Calif. (AP) — The California Supreme Court ruled unanimously Monday that inmates convicted of nonviolent sex crimes cannot be denied a chance at early parole consideration under a ballot measure approved by nearly two-thirds of voters four years ago. Former Gov. Jerry Brown, who championed the 2016 initiative as a way to reduce prison populations and costs by speeding chances for parole, has repeatedly said he and other proponents never intended for it to cover sex offenders. But lower appeals courts ruled that the plain language of the initiative means they cannot be excluded from consideration as nonviolent offenders, and the high court agreed. 674