Friday, March 7, 2025

What are we trying to build: affordable housing and high-density bonus laws in California's Eastern Sierras

Mono county is dominated by the rugged beauty of the Eastern Sierras. The 4th-least-populated county in California, it has only one incorporated community: Mammoth Lakes. Home to scenic views, hiking trails, fine dining, and two ski resorts, the town has seen a boom in popularity over the past 20 years. This has caused a fierce affordable housing shortage, with real estate skyrocketing as wealthy investors seek to capitalize on the region's dynamic tourism economy.

According to realtor.com, the median listing for a home in Mammoth Lakes is $865,50. Scroll through the website's 122 entries, and you will see only a handful condominiums and studio apartments approach that figure; most houses exceed $1 million in value. A quick search on Airbnb.com, however, reveals well over 1,000 options—a ratio of more than 10 rental properties for every home on the market.

The overwhelming mismatch between rental properties and permanent residences is just one major factor driving the affordable housing crisis in California's rural eastern counties. In Mammoth Lakes, it has forced members of the local workforce to live out of their cars; Emily Markstein, a local ski instructor, tree-trimmer, yoga instructor, and waiter estimates the percentage of her colleagues embracing "van life" is greater than 20%. Speaking to the LA Times, she describes the struggle for access to basic amenities this lifestyle presents, and how it has become the most viable option for working people in Mammoth Lakes.

In nearby Inyo county, the city of Bishop grapples with similar issues. Its proximity to the wilderness has made it a long-time hub for activities like hiking, fishing, climbing, and skiing. But the mayor, Jose Garcia, says that the town "hasn't grown at all" in his tenure. This frustration stems from another key factor driving the lack of affordable housing in the Eastern Sierras: there's often nowhere to build. 

Much of the land around Bishop and Mammoth Lakes is ineligible for development. Approximately 90% of land in Mono county and 92% of land in Inyo county is federally owned, and the Los Angeles Department of Water (LADW) owns and manages an additional 250,000 acres in Inyo County and 60,000 acres in Mono County. Purchased in the 1930's, these landholdings secure water rights to Eastern Sierra snowmelts for the city of Los Angeles. This hems in communities, preventing affordable housing developments from cropping up on the outskirts of established towns and driving up the price of privately-owned land that is available for development

One proposed solution is to increase housing density within established communities. Doing so could  mean more affordable housing in the Eastern Sierras, and prevent towns like Bishop and Mammoth Lakes from having to engage in complex, multi-party land-swaps with federal agencies and LADW when they want to implement a new development project. 

There are strong legislative incentives for increasing housing density. California's density bonus laws, recently expanded under AB 1287, require cities and counties to grant zoning incentives to housing projects that reserve a certain number of units for low-income residents. This allows developers to build more market rate units than would ordinarily be allowed under the city/county's zoning laws, in exchange for guaranteeing the availability of affordable housing the developer otherwise might not build.

Although proponents of the density bonus schema praise it as necessary in a state where high costs often render affordable housing projects financially impractical, it is not without its flaws. In the Northeastern Sierra community of Truckee—a community struggling with its own housing crisis—homeowners John Kedzie and Jim Frances have criticized high-density bonus programs, arguing that by mandating approval of projects that meet arbitrary thresholds, legitimate local concerns such as snow storage and traffic infrastructure are bypassed. 

Several places in the Sierras have implemented their own initiatives to combat the lack of affordable housing. Nevada, Amador, Calaveras, and Mariposa counties have partnered to launch the Mother Lode ADU program. Its goal is to streamline the construction and approval process for accessory dwelling units (ADUS)—self-contained residences constructed on private properties that already have homes, usually by the homeowner.  The focus is on working directly with community members, instead of development companies, to increase housing density on a small scale.

Back in Mammoth Lakes, the Mono County housing program offers down-payment assistance loans, support for some development projects, and a revolving loan fund that supports the preservation of deed restricted units (among other things). The program's goals are explicit: it's designed to solve "the market failure that has caused the large housing shortage locally, especially for local workforce households."

These programs' long-term effects on affordable housing remains unclear. However, any truly comprehensive solution will have to address the region's relationship with ecotourism directly. The proliferation of expensive rental properties in places like Bishop and Mammoth Lakes, coupled with their proximity to pristine wilderness, make them ripe for rural gentrification—simply increasing housing density won't solve the deeper problems.

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