October 10, 2015
AB 35 Veto is a Missed Opportunity to Strengthen CA Economy; Turns Away $1 Billion in Federal Funds
Strong Bi-Partisan Support for AB 35 Shows Urgency to Address Housing Affordability Crisis in California
Sacramento, CA – Today, California’s affordable home industry leaders expressed disappointment in Governor Brown’s veto of a bi-partisan, public/private sector approach to increase supply of affordable housing.
At a time when business leaders across the state have pointed to a lack of affordable homes as a major impediment to a strong economic climate, AB 35 (Chiu and Atkins) would have helped remove the biggest barrier to starting construction on shovel-ready affordable home developments. AB 35 would have expanded the successful State Housing Tax Credit by $100 million annually. This in turn would enable affordable housing developers to access an additional $1 billion in federal funds over five years.
“Affordable home builders in the state are dismayed by this short-sighted decision, but we are resolute in our goal to make homes for California’s workforce a priority once again. The strong bi-partisan support for AB 35 in the Legislature shows California’s businesses and communities are counting on it,” said Ray Pearl, executive director of the California Housing Consortium, one of the sponsors of AB 35.
“With California short 1.5 million homes affordable to individuals and families with low incomes and high housing prices driving poverty higher, it’s clear our state needs a comprehensive solution to being building affordable homes again,” continued Pearl. “We call on the Brown Administration to work with the community of builders, advocates, and grassroots organizations committed to ensuring everyone in California has a safe place to call home.”
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