California's two-year-old smart growth legislation, SB375, which set out a range of requirements to reduce greenhouse emissions, including compact land use, is already having beneficial effects on the state's economic growth, according to a new report.
The study by the Urban Land Institute looked at the legislation's effects on economic growth and quality of life and concludes it brings consistency, coordination and clarity to development.
It also aligns regional planning and transportation, balances housing with jobs and improves the efficiency of transit systems (BB, September 2008).
"How we use land matters," said ULI chief executive officer Patrick L. Phillips.
"Land use has an enormous impact on the long-term environmental viability of our urban areas. If implemented well, SB375 would help California accommodate growth in ways that are economically sound, environmentally responsible, and socially beneficial."
He said California is taking a lead in addressing the detrimental effects of sprawl and improving urban growth patterns.
The legislation allows the state to accommodate growing demand from first-time buyers, create a wider choice of housing types, allocate transit funds effectively, cut vehicle emissions, maintain a greenfield/brownfield balance and improve health and quality of life.
It recommends ensuring development of transit keeps pace with increases in urban and suburban density and ensuring policy and funding are correctly aligned.
The legislation has attracted opposition from some who fear it would stifle growth but the report says greater community engagement, communication and dialogue can build a consensus around it.
It required sustainable communities strategies demanding compact and transit-oriented development and the report notes that municipal service costs increase with dispersed development and reduce when it is densified.
Even though urban development costs more than greenfield, this is outweighed by municipal savings in the long-term.
"Compact development can be fiscally positive, but the state needs to improve the means by which municipalities can finance improvements in existing urban areas," says the report.
