The Legislature is expected to approve the 2024-25 state budget this week after a deal was announced over the weekend by Governor Gavin Newsom, Senate President pro Tempore Mike McGuire, and Assembly Speaker Robert Rivas.
The budget agreement includes several major investments in affordable housing:
- Approves an additional $500 million for the Low-Income Housing Tax Credit Program
- Restores $315 million in funding to the Multifamily Housing Program, which reflects a $10 million reduction in funding for the program
- Provides $1 billion for a sixth round of funding for the Homeless Housing, Assistance and Prevention Grant Program with oversight, transparency, and accountability measures
To address the state’s multi-billion budget shortfall, the budget cuts funding for several housing programs, including:
- $152.5 million from the CalHome Program
- $76.3 million from the Veterans Housing and Homelessness Prevention Program
- $127.5 million from the Adaptive Reuse Program
- $235 million from the Infill Infrastructure Grant Program
- $484 million from the Foreclosure Intervention Housing Preservation Program
The full details of the budget agreement are included in SB 108/AB 108 and various budget trailer bills, including SB 166/AB 166, the housing and homelessness trailer bills.
The proposed budget plan is expected to be considered by Assembly and Senate Budget Committees this week. Final votes by the full Senate and Assembly are expected by the end of the week.
Ray Pearl, Executive Director, California Housing Consortium:
“It is clear from this year’s budget agreement that state leaders recognize now is not the time to stop building affordable housing. The budget may not include everything housing advocates have been pushing for—a reflection of the daunting fiscal challenges facing California—but the Legislature and Governor’s ongoing commitment to the housing tax credit and other successful affordable housing programs will allow CHC and our members to keep
