CHC is closely monitoring the state and federal response to COVID-19—and we are working with our members to preserve and protect access to affordable housing:
California situation:
- California’s unemployment numbers have climbed to 2.8 million since the beginning of the COVID outbreak, with another 661,000 unemployment claims submitted last week. According to the Sacramento Bee, many economic experts believe the state unemployment rate could climb to 20% this summer.
- 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.
Federal action:
- While the first $1,200 stimulus checks from the CARES Act began going out this week, the measure’s $250 billion small business loan program is already out of funds. Congress has not yet reached an agreement on the next wave of stimulus—including measures that could support affordable housing.
- The IRS announced this week that short-term extensions would be provided to some housing tax credit and housing bond deadlines—pushing those deadlines to July 15.
State policy activity:
- Last night, HCD released guidance on hardship requests and status of monitoring and compliance functions.
- The Legislature held its first oversight hearing on the Governor’s proposed spending in response to the COVID outbreak—which the Administration said could grow to as much as $7 billion this year.
- “This is an unprecedented situation,” Vivek Viswanathan, the Department of Finance’s chief deputy director for budget, told the Senate Budget and Fiscal Review Committee. He noted the Administration expects the federal government to reimburse up to 75% of the state’s coronavirus spending because of President Trump’s major disaster declaration.
- Legislative Analyst Gabriel Petek told the committee to prepare for a projected deficit of as much as $35 billion, with longer-term projections climbing even higher.
- “We understand the gravity of the situation,” said Sen. Holly Mitchell (D-Los Angeles), chairwoman of the Senate Budget Committee. “We all must recognize that we are embarking on difficult fiscal times.”
- While the state considers additional action to protect renters and homeowners, the Los Angeles Times editorial board this week said “landlords need help too”—noting the essential service they provide: “a roof over one’s head.”
