Governor Newsom’s proposed 2019-2020 state budget directly addresses the state’s housing crisis and proposes significant one-time and ongoing investment to increase housing production, particularly for low- and moderate-income housing.

“Housing is a statewide issue and a lack of affordable housing directly contributes to the increased homelessness seen across the state.”

Among other things, the budget includes:

• Expanding the existing state low income housing tax credit program by up to $300 million annually
   
• Allocating up to $200 million annually to a new tax credit program that will target households with incomes between 60 and 80% AMI
   
• Investing $500 million into CalHFA’s Mixed-Income Loan Program
   
• $750 million to partner with and incentivize local governments to jump-start housing production through technical assistance and general purpose funding
   
• Making state surplus land available to affordable housing developers to build demonstration projects that use creative and streamlined approaches to building affordable and mixed-income housing
   
• Modifications to Enhanced Infrastructure Finance Districts to make them a more attractive economic development tool
   
• $500 million for jurisdictions that site and build emergency shelters, navigation centers, or supportive housing and $100 million for Whole Person Care Pilot programs

In his remarks the Governor also expressed a commitment to address impact fees charged by local governments that contribute substantially to the cost of development and to convene discussions with stakeholders to assess the most equitable path forward in linking transportation funding and other local economic development tools to making progress toward required housing production targets.

CHC released this statement from Executive Director Ray Pearl following release of the proposed 2019-20 State Budget today.