Jennifer LeSar, CEO, LeSar Development Consultants
SB102 and AB101, the housing development and finance trailer bills advanced on Monday, July 1st with the Senate voting 39-0 (essentially unanimous support with one Senator absent) to support $2.4 billion in essential housing financing and laws to advance housing production and homelessness solutions in California.
The trailer bill includes a variety of budget items and statutory changes to support increased housing production and to facilitate housing solutions for homeless Californians.
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The $2.4 billion package includes the following one-time budget allocations for housing and homelessness:
Housing = $1.75 Billion in one-time funding
Local Housing Planning Support Grant Programs = $250 million to councils of government and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment. Funds will flow through CA HCD.
- Infill Infrastructure Grant Program = $500 MM for capital improvement projects to facilitate infill development. Funds through CA HCD.
- Low Income Housing Tax Credit Program = $500 MM in annual state credits subject to annual budget appropriations; credits allocated through CTCAC.
- CalHFA Mixed Income Loan Program = $500 MM over the course of 4 years for CalHFA’s mixed income housing program
- Enforcement – expands State’s ability to impose remedies on local jurisdictions out of substantial compliance with Housing Element Law and creates incentives for those in compliance with Housing Element Law and enacting pro-housing policies.
- Renters Assistance – In the FY19-20 state budget there is also $20 million to provide legal aid for renters and assist with landlord-tenant disputes, including legal assistance for counseling, renter education programs, and preventing evictions
Homelessness – $650 Million in one-time funding
All funding is in proportion to a Continuum of Care, City or County’s portion of the state’s homeless population based on the point in time count. Applications are due by February 2020.
- Continuums of Care = $190 MM
- Cities = $275 MM
- Counties = $175 MM
- Homeless youth set-aside – all program recipients must spend 8% of their program allocation on services for homeless youth; this is $52 million in total.
- Low Barrier Navigation Center – defined in law and makes it a by-right use in areas zoned for multi-family and mixed use. Prohibits certain requirements such as conditional use permits, and other discretionary reviews being placed on the project.