This week in affordable housing news…:

State Update:

• “Could 2023 be the sleeper year for solving California’s housing crisis?” That was how a Los Angeles Times editorial this week summed up this year’s legislative session on affordable housing, noting the passage of all of CHC’s sponsored bills along with dozens of other policy changes that “are expected to have a big impact over time by making it easier to build more apartments, affordable housing, and accessory dwelling units.” The next challenge, says the Times, is to put all of these laws into action. “All the pieces are in place,” Jason Elliott, Governor Newsom’s deputy chief of staff, told the Times. “It is now time for California to put those pieces to work, to permit the housing, to say yes to new housing and to hold local governments accountable for their responsibilities.”

• In case you missed it: The Legislative Analyst’s Office published an updated budget forecast in October, projecting that the state’s revenue picture could improve by about $9.5 billion for the 2024-25 budget year—leaving the state with a roughly $10 billion budget deficit next year. The LAO cited “less revenue deterioration than expected” in several key categories, including a levelling off of personal income tax volatility and a 10% improvement in stock prices. Given the uncertainty of both revenue source, however, the LAO concludes that “it is entirely possible” revenues could end up as much as $15 billion higher or lower that in the current budget year—and as much as $30 billion higher or lower in the 2024-25 budget year. 

ICYMI – Top news stories:

Bass’ homelessness czar Mercedes Márquez to be replaced by Lourdes Castro Ramírez
Los Angeles Times
Mayor Karen Bass’ homelessness czar, Mercedes Márquez, will leave her high-profile post in November, with state housing official Lourdes Castro Ramírez set to succeed her. Márquez, a former local and federal housing official, was one of Bass’ first hires last year. She has held one of the more visible roles in an administration that’s been predominantly focused on the city’s homelessness crisis. Márquez was expected to step down before the end of the year, and the mayor’s office described Castro Ramírez’s appointment as “a planned transition due to federal retiree rules” in a news release. Castro Ramírez will start her tenure as the city’s chief housing and homelessness officer on Nov. 6.

Gov. Newsom signed YIMBY-backed bills into law. Will they deliver more housing in S.F.?
San Francisco Chronicle
The flurry of pro-housing, YIMBY-backed bills that Gov. Gavin Newsom signed into law over the last week represented a historic shift in how residential development is approved in California. But with tens of thousands of already approved projects stuck in San Francisco’s development pipeline, it’s unlikely the new laws will bring a major influx of new applications until construction costs and interest rates come down and other regulatory changes are made. “I still think the economic factors are preventing new projects from going forward,” said San Francisco Planning Director Rich Hillis—noting that SB 423 and other bills “will make things come in quicker once those issues are resolved.”

Why tiny homes will remain part of California’s homelessness equation for years
CalMatters
Tiny homes are increasingly California cities’ shelter option of choice for new sites to house the homeless. Gov. Gavin Newsom’s administration earlier this year said it is sending out 1,200 units statewide. San Jose and Sacramento, each set to receive hundreds, recently said they had selected their sites; as of October the state is still selecting vendors to build the homes. “They are our single best solution to the crisis on our streets,” says City of San Jose Mayor Matt Mahan. CalMatters notes, however, that not everyone agrees: “Tiny homes are better than congregate shelter, but people are still homeless when they live there,” said Jennifer Loving, CEO of the nonprofit Destination: HOME. “You may be getting some more homeless folks into temporary shelter, but what about the hordes of people dying for an affordable place to live?”