Updated May 1, 2020
California faced daunting affordable housing and homelessness challenges before COVID-19, and this new crisis threatens to exacerbate these issues—especially for the 3.4 million low-income renter households already bearing the brunt of the pandemic’s impacts.
CHC has called on federal and state leaders to act quickly to support the state’s most vulnerable residents during this emergency—to ensure no affordable housing residents face displacement or become homeless, no properties or housing providers go bankrupt, and none of California’s deed-restricted affordable housing stock is lost as a result of COVID-19.
Keep California Housed:
On April 22, CHC released a released a new proposal, Keep California Housed, highlighting two immediate steps the state and federal government can take to keep struggling renters stably housed and assure the long-term financial health of California’s affordable housing communities. With projections showing the potential for a $1.7 billion loss in rental income over the next year, CHC has proposed a $1 billion project-based subsidy pool that will allow struggling developments to remain at break-even cash flow to support the state’s most vulnerable residents throughout this crisis.
At the federal level, CHC has joined affordable housing advocates across the state and nation to call for emergency actions to get and keep people in their homes during the pandemic and to address immediate barriers to affordable housing development.
As the crisis was emerging, CHC also quickly sent letters to the Administration and Treasurer requesting necessary relief for affordable housing providers.
California situation:
- On March 19, Governor Newsom issued an executive order directing the entire state to ”Shelter in Place”. This order requires all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, critical government services, schools, childcare, and construction, including housing construction.
- The state’s jobless numbers climbed past 3.6 million since the beginning of the COVID outbreak.
- The Judicial Council of California took action on the state’s recent eviction prohibitions, ruling that eviction orders “threaten to remove people from the very homes they have been instructed to remain in.” The Judicial Council unanimously adopted temporary emergency rules that include suspending all evictions, regardless of cause, unless they are necessary for public health and safety. The new rules will remain in effect until 90 days after the current state of emergency is ended.
- Beginning April 12, unemployed Californians will receive an additional $600 on top of the weekly amount they receive from unemployment insurance, as part of the recently approved federal CARES Act.
- With the coronavirus death toll approaching 1,000 people in California, Governor Newsom outlined six indicators the Administration will use to determine when to lift the shelter-in-place order. The Governor has not yet identified how close the state is to reaching these measures, or when the order might be lifted.
- Governor Newsom issued an executive order providing some eviction relief for renters affected by COVID-19 through May 31, 2020. The order prohibits landlords from evicting tenants for nonpayment of rent due to COVID-19 during this period and prohibits enforcement of evictions by law enforcement or courts, but does not go as far as many local ordinances that provide broader tenant protections. Governor Newsom’s previous executive order authorized local governments to halt evictions for renters impacted by the pandemic.
- Residential homeowners impacted by COVID-19 can seek forbearance on foreclosures and mortgage loan payments for the next 90 days. The Governor said he is also working with more than 200 banks and credit unions to identify additional aid to help small businesses and nonprofits: “The job is not done,” he said.
Federal action:
- A $2 trillion relief package was approved by Congress, with $150 billion in aid for state and local governments and $12.4 billion in funding for HUD programs, including:
- Tenant Based Rental Assistance — $1.25 billion
- Public Housing Operating Fund — $685 million
- Housing Opportunity for Persons with AIDS — $65 million
- Community Development Block Grant (CDBG) — $ 5 billion
- Homeless Assistant Grants — $4 billion
- Project Based Rental Assistance — $1 billion
- Housing for the Elderly — $ 50 million
- Housing for Persons with Disabilities — $15 million
- The package also included forbearance on foreclosures and mortgage loan payments for federally-backed affordable housing and eviction protections for those residents.
- CHC has highlighted these provisions as models for the next phase of state action.
- California state and local governments could receive more than $10 billion for just the state block grant portion of the stimulus, Governor Newsom said this week.
- House Speaker Nancy Pelosi is pushing for another federal stimulus bill that would expand paid leave, increase food aid, and fund coronavirus treatment. CHC, along with our federal partners, are continuing to push for provisions that protect affordable housing.
Resources for Owners/Operators: