Governments in California have no liquidity

Multifamily permits off 42% from 2018

Yet while this has produced headlines with the Newsom administration’s January lawsuit against Huntington Beach over its refusal to add more affordable units and with threats against other cities, it doesn’t appear to be boosting housing construction in any notable way.
State data shows residential building permits dropped by 12 percent in the first five months of 2019 compared with the same span in 2018. And the statistics were far grimmer for less expensive multifamily housing units, which plunged 42 percent.
Builders and housing experts who contributed to a recent Sacramento Bee print symposium on the news of declining residential construction were not optimistic. Two fundamental problems – one much noted, one less appreciated – are not going away, they said.
Tia Boatman Patterson, Newsom’s top housing adviser, said there continue to be bottlenecks at the local level in getting housing through bureaucratic hoops.
Sometimes there’s what appears to be defiance. The New York Times recently reported that California cities “with some of the state’s highest rents, including Atherton, La Canada Flintridge, Los Altos Hills and Rancho Palos Verdes, issued no multifamily construction permits from 2013 to 2017.”

Cash-strapped cities increasing fees

But some participants in the Bee project said the problem isn’t just getting local governments to live up to their obligations and to stop dragging their feet in granting permits and approvals. Many cities and counties are so fiscally stretched because of the rising costs of pensions and other expenses that they’re increasingly adopting new or higher fees on housing projects – even as developers beg for relief.

We can see county and city obligations, mainly to unions and nimbies are the cause.   If we have these problems, which we do, then why did Mayor Garcetti invite the world's poor to come live in California?  Thee is cognitive dissonance, mainly the Hispanic electorate thought pro-Mexican racism would win out, instead we are getting homeless and poor form all over, along with the dangerous Mexican cartels.  Hispanics need to thin things through before knee jerking themselves into a mess.