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Los Angeles is testing a bold bet: Cut red tape, accelerate approvals and watch affordable housing finally pencil out, The Wall Street Journal writes.
Under Executive Directive 1—fast-tracking 100%-affordable projects from a yearlong wait to just 60 days—the city has seen an explosion of interest. Since late 2022, developers have submitted plans for roughly 42,300 income-restricted units, with about 31,700 receiving approval—more than double the number greenlit in the three years prior.
The streamlined process is drawing in market-rate developers who previously avoided affordable housing, and even spurred the creation of new firms like Passo, which credits ED1 with shaving months off its timeline and saving tens of thousands in fees.
But challenges remain. High rates, reduced subsidies and new limits on incentives have slowed construction and dampened enthusiasm. Still, ED1 has reshaped the pipeline—and sparked national interest—as cities look for faster, cheaper ways to build nonluxury housing at scale.
