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 jobless numbers have climbed to 4.1 million since the beginning of the COVID-19 emergency—with national numbers reaching levels not seen since the Great Depression.
- The state Department of Finance (DOF) released a fiscal update this week projecting California unemployment levels will climb to 18% this year, creating a state budget deficit of $54.3 billion—roughly 37% of last year’s General Fund and 3.5 times more than the Rainy Day Fund ($16 billion).
- According to DOF, permits for new housing construction, a key economic indicator, are forecast to drop by more than 21% this year.
- With wages and salaries expected to decline three times further than they did in the Great Recession, DOF projects economic impacts “will be disproportionately borne by low- and middle-income Californians”—noting that “this is particularly concerning as state median income did not return to the pre-Great Recession level until 2018.”
- On Friday, Governor Newsom allowed the limited reopening of some businesses—the first step toward a broader relaxing of statewide shelter-in-place requirements.
Federal action:
- CHC continues to work with state and national groups pushing for expanded renter assistance and emergency updates to the affordable housing financing system to maintain access to affordable housing during and after this crisis.
- House Democrats are continuing to push for significant new funding in the next stimulus package for state and local governments—but the White House says formal negotiations have been paused, with the Administration “taking a wait-and-see approach on further spending,” according to the Wall Street Journal. A top economic advisor to President Trump says discussions over the next coronavirus relief package will not come until late May or early June.
State policy activity:
- The state Assembly reconvened this week and the state Senate is expected to begin working on legislation again next week, ahead of a June 15 deadline for passing the state budget.