There is no doubt that we are all in this together. At all levels of government, elected officials have quickly responded to the threat posed by COVID-19.  In spite of that unprecedented and collaborative response, new research from the Terner Center shows the dramatic impact the crisis is having on California: 2.3 million renter households have at least one worker in an industry likely to be immediately affected by efforts to flatten the curve in the COVID-19 pandemic and 50% of those households were already struggling with rental cost burdens.

California was already in the midst of daunting affordable housing and homelessness challenges.  This crisis only exacerbates the vulnerability these households were facing.

To take on these challenges, CHC and our members produced a detailed proposal—Keep California Housed—highlighting two immediate steps the state and federal government can take to keep struggling renters in their homes and assure the financial stability of affordable housing.

First, CHC is calling for a significant increase in direct rent payment assistance for lower-income residents. Second, with projections showing the potential for a $1.7 billion loss in affordable housing rental income over the next year, insert verb a new $1 billion project-based subsidy pool that will allow developments that are not currently receiving any rent subsidies to remain at break-even cash flow throughout this crisis and help these developments avoid foreclosure.

We have joined our national partners to advocate for emergency rental assistance and eviction prevention, including funding for project-based rental assistance, and legislative solutions to ensure affordable housing can move forward in California and across the nation. This includes Congressional action to set a 4% floor on tax credit rates (which have dropped to just over 3% in May, threatening the viability of many properties) and to lower the “50% test” on 4% tax credit developments.

With the Legislature returning to session this week, the state government must also play a role in providing assistance to low-income renters living in affordable housing. While the state budget is likely to be severely impacted by the economic slowdown, continued funding for affordable housing programs is one of the best options available for keeping the state’s most vulnerable residents stably housed—and avoiding a substantial increase in homelessness once the state’s emergency housing protections expire.

I am proud of the work CHC leadership and staff have done to raise awareness about these issues. Now we have reached the critical moment when we need to make these a reality.

Sincerely,

Ray Pearl
Executive Director