California eyes shuttered malls, stores for new housing

SACRAMENTO, Calif. (AP) — California state lawmakers are grappling with a particularly 21st-century problem: What to do with the growing number of shopping malls and big box retail stores left empty by consumers shifting their purchases to the web.

A possible answer in crowded California cities is to build housing on these sites, which already have ample parking and are close to existing neighborhoods.

But local zoning laws often don't allow housing at these locations. Changing the zoning is such a hassle that many developers don't bother trying. And it's often not worth it for local governments to change the designations. They would prefer to find new retailers because sales taxes produce more revenue than residential property taxes.

However, with a stubborn housing shortage pushing prices to all-time highs, state lawmakers are moving to pass new laws to get around those barriers.

A bill that cleared the state Senate last week would let developers build houses on most commercial sites without changing the zoning. Another proposal would pay local governments to change the zoning to let developers build affordable housing.

“There has always been an incentive to chase retail and a disincentive to build housing,” said Sen. Anthony Portantino, a Los Angeles-area Democrat who authored the bill to pay local governments. “There is more dormant and vacant retail than ever.”

If successful, it's believed California would be the first state to allow multi-family housing on commercial sites statewide, said Eric Phillips, vice president of policy and legislation for the California chapter of the American Planning Association. Developers who use the law still would have to obey locally approved design standards. But Phillips said the law would limit local governments' ability to...