An unprecedented crisis calls for an unprecedented response. With Sacramento back in full swing this month—including a new budget proposal from the Governor, new financing decisions by CDLAC, and a wave of new legislation emerging from the Capitol—this has been our message for state leaders still wrestling with California’s response to the ongoing affordable housing emergency.

CHC worked closely with 10 of our affordable housing partners to promote a $5 billion plan for this year’s budget that would help fill persistent, significant gaps in funding—and continue closing the state’s current shortage of 1.4 million affordable homes. There is a lot to like in the Governor’s budget: $750 million for homeless housing and an additional $500 million for the state Low Income Housing Tax Credit. But to build all of the affordable homes we need, we have to think even bigger.

That means matching new and continuing state investments with the scale of the problem—by promoting substantially more production and preservation of affordable housing. It also requires thinking outside the box—and making structural changes in the way the state finances and supports the development of the housing Californians desperately need.

With unprecedented housing demand beginning to swamp the state’s private activity bond system, we pushed CDLAC in December to recognize the severity of the state’s housing crisis—and significantly boost the bond allocation for affordable housing. CDLAC agreed to increase the allocation from $3 billion to $3.5 billion, but the state also continues to provide hundreds of millions of dollars of precious public resources to a private equity firm planning to build a passenger train from LA to Las Vegas.

There is opportunity to think bigger here—and to make sure the state commits its resources to its highest, most urgent priorities, including providing safe, affordable homes to struggling Californians who need them.

Affordable champions in the Legislature get this—and as always we’re proud to work with Assemblymembers David Chiu, Tim Grayson, and others who have introduced bills to increase funding for affordable housing and lower development costs. We’re also pleased to be working this year with Asm. Miguel Santiago on legislation that will streamline approvals for 100% affordable projects. These are important steps in the right direction, but we can’t afford for them to be the only ones the state makes this year. California has an unprecedented housing crisis. We need to act like it.

Sincerely,

Ray Pearl
CHC Executive Director