FOR IMMEDIATE RELEASE
April 15, 2015
Contact: Mike Roth, 916.444.7170
Assembly Housing Committee Moves to Jumpstart Construction of Affordable Homes and Create Good Jobs
Sacramento, CA – Action to jumpstart construction of affordable homes is one step closer with the passage of AB 35 and AB 90 in the Assembly Housing and Community Development Committee today. Along with AB 1335 and AB 1056, the bills form a package of legislation advanced by Assembly Speaker Toni Atkins to generate billions of dollars in federal and private investment annually and create tens of thousands of affordable homes each year. Currently, California’s families suffer from a shortfall of 1.5 million affordable homes, driving rents sky-high across the state and impeding California’s businesses’ ability to compete for talent.
“Today’s unanimous, bi-partisan action to jumpstart construction on shovel-ready affordable homes is welcome news for California home builders and job seekers,” said Ray Pearl, Executive Director of the California Housing Consortium. “Public-private partnerships to create affordable homes and good jobs have a strong track record in our state, and AB 35 and AB 90 will invest in proven strategies with economic benefit for all of California.”
With current public investment hitting a historic low, AB 35 and 90 are critical components of Speaker Atkins’ package of bills to replace the $1.5 billion in state affordable home financing lost as redevelopment was eliminated and voter-approved bonds from Props. 46 and 1C have been extinguished.
“State investment in affordable home development has dwindled even as the need for homes affordable to large segments of California workers and families has spiked,” said Shamus Roller, Executive Director of Housing California. “Speaker Atkins’ 4-prong package of legislation works together to create the financing tools that will get California building affordable homes again, support local governments in meeting housing needs in their communities, and leverage billions of federal and private dollars that will bring good jobs to our state.”
“AB 35 is an innovative, cost-effective way to leverage significant new federal resources that will be used by private developers to create thousands of new affordable homes and jobs,” said Matt Schwartz, President and CEO of the California Housing Partnership.
- AB 35 (Chiu and Atkins) would increase the percentage of funding a nonprofit developer could use from state tax credits from the current 13% to 50%. It will also help remove the biggest barrier to starting construction on shovel-ready affordable home developments by expanding the successful State Housing Tax Credit by $300 million annually. This in turn would enable affordable home developers to bring an additional $600 million in federal funds to California.
- AB 90 (Chau) creates a framework for how California will spend funds received from the National Housing Trust Fund, which (with the recent lift of the suspension that prevented funding of the trust fund) are expected to begin flowing to California in 2016.
The California Housing Consortium is a non-partisan advocate for the production and preservation of housing affordable to lower and moderate income Californians. CHC’s vision is a safe, affordable place to call home for every Californian.
Housing California is the voice in the state Capitol for children, seniors, families, people experiencing homelessness, and everyone who needs a safe, stable affordable place to call home.
The California Housing Partnership Corporation is a private nonprofit organization dedicated to helping government and nonprofit housing agencies preserve and expand the supply of affordable homes for lower-income households throughout California.