On Thursday, March 3rd, the State Budget Conference Committee voted to approve the Governor's proposal to eliminate Redevelopment Agencies throughout our State.  There may be a slim chance that funds for affordable housing will survive under various proposals.  Some members have expressed support for economic development and housing activities, and have discussed alternatives that might allow for continued funding.  However, it is up to the full Legislature now.  Preserving funds for affordable housing is clearly an uphill fight.

To see funding for affordable housing dissolve would be disastrous for the thousands of lower-income Californians.  They are living on the streets, are overpaying in rent, are overcrowded in their apartments, are living in substandard spaces, are struggling to buy a starter home, or need help on emergency repairs for their home.  Rents have risen here more than 10% in four years, and our vacancy rate is under the healthy 5% benchmark.  It takes 99 hours of minimum wage work per week - 2.25 full-time jobs - to afford a studio apartment rent here.  The rental market continues to tighten, due to increased demand from households falling out of ownership and into renting.  Waiting lists for restricted affordable apartments are very long. 

Should the Legislature act to approve the current proposal, effective immediately, only those projects with approved contractual agreements will be able to move forward.  On July 1st, however, the Housing Department can resume taking action to approve loans.  If another funding source is not identified, however, the amount of money available for housing will be limited.

The fight is not over.  Many housing and economic development partners are in Sacramento talking to legislators and staffers.