Governor Releases May Revision to Budget
Today, Governor Brown released a $169.3 billion revised spending plan that assumes nearly $2 billion less revenue through June 2017, with the Governor warning that people need to prepare "for a time of necessity." The full budget summary is available online. Discussion of affordable housing can be found on pages 8-10, and pages 45-54. Here are the highlights:
- There is no additional general fund spending proposed for the programs outlined in the Assembly Democratic $1.3 billion proposal.
- The May Revision noted that funding from previous housing bonds is virtually gone, but debt service on the bonds will be $400 million a year in 2016/17 and a total of $10.7 billion over the life of the bonds.
- The Governor has endorsed the Pro Tem's $2 billion "No Place Like Home" revenue bond proposal using Prop 63 funds to bond for assistance to the mentally ill homeless, which will require a 2/3 vote of the legislature. The Administration proposes $267 million in first year spending from the program. The debt service of the revenue bond will be $125 million a year for 30 years.
- The May Revision supports $3.2 billion in state and federal funding for affordable housing and homeless assistance programs. See chart attached. This amount includes the money from the Pro Tem's revenue bond for homeless, money from federal funds, the VHHP program, existing programs at CalHFA, $400 million in AHSC funds, CalWORKS housing and homelessness support, and others.
- The Administration supports several CHC-supported legislative proposals to reduce land use barriers, SB 1069 (Wieckowski), AB 2209 (Bloom), AB 2501 (Bloom). The Governor is proposing legislation in trailer bill language that will require ministerial "by-right" land use entitlement provisions for multi-family housing developments that include an affordable housing component. The percentage of affordable units required will vary depending on whether the development is in a transit area (10%) or not (20%).
- The May Revision stated that the state must target existing and new housing resources for affordable housing to developments that support state policies and objectives, such as sustainable communities, transitional housing for former offenders, or supportive housing for homeless populations.
CHC's Executive Director Ray Pearl released the following statement on Governor Brown's May Revision to his Fiscal Year 2016-17 budget proposal:
"California's affordable home builders appreciate Governor Brown's recognition of our state's housing affordability crisis and the hurdles local land use policies have presented to developing affordable homes that lift families out of poverty.
"It is good to see Gov. Brown's support of funding to alleviate homelessness. But we are disappointed that his plan doesn't also restore state investment in affordable home construction that prevents people and families from becoming homeless in the first place.
"With not a single county in California having enough affordable homes and apartments for people who need them, legislators must prioritize state investment in homes for veterans, elderly and disabled Californians, people in low-wage jobs and families on the brink of homelessness."
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California Housing Consortium
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