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:
- This week, 47 of California’s 58 counties received state approval to begin moving into “stage 2” of reopening their economies—with new guidelines for restaurants, shopping malls, and hair salons. This number climbed from 40 counties last week. The list still does not include Los Angeles County or most Bay Area counties.
- The state’s joblessness numbers have climbed past 5.4 million, and the coronavirus death toll has surpassed 3,700 statewide.
- While much of the state is reopening, hospitalizations continue to climb in some places, including Alameda County. Lassen County, one of the rural parts of the state that reopened early, is now reporting a rise in COVID-19 cases and is taking steps to narrow business activity. Los Angeles County reported 50 deaths from COVID today.
Federal action:
- Senator Ron Wyden (D-OR), ranking member of the Senate Finance Committee, released an outline this week of the affordable housing priorities he hopes to pursue in the next coronavirus bill—including enacting a minimum 4% housing credit rate and lowering the 50% test.
- These provisions were not included in the HEROES Act, which the House approved in May, though the legislation did include $1 trillion for state and local governments.
- Affordable housing advocates are continuing to push the Senate to craft a stimulus bill that includes both provisions, along with an additional round of direct payments to individuals.
- CHC continues to push for a one-time $1 billion subsidy pool to keep California affordable housing residents stably housed.
State policy activity:
- Senate Democrats have pushed back against some of the spending reductions in Governor Newsom’s revised May budget—introducing a proposal this week that would increase borrowing, rather than adopting the Governor’s $14 billion in trigger cuts to schools, health care, and the safety net.
- The Senate budget proposal includes all of the Governor’s proposed spending on affordable housing, including the recent $500 million expansion of the Low Income Housing Tax Credit. It also restores some of the Governor’s proposed cuts to CalHFA and Infill Infrastructure Grant programs.
- The Assembly has not yet released their budget proposal.