California Proposed State Budget on Homelessness and Increased Affordable Housing

CA State Budget on Homelessness and Increased Affordable Housing


CA is only producing 40% of the new housing units it needs, the result is that rents are soaring and poor, working class and middle class cannot afford the rents or homeownership, and homelessness is increasing throughout the state.

Local planning and development times, requirements and fees contribute to the slow process and high costs of developing new housing. State has two new bonds approved by the voters in November 2018 and revenues from one new fee to help solve the problem and will begin to encourage local jurisdictions to streamline and fast track the process of approving new affordable housing.  

The Proposed Governor’s Budget allocates $7.7 billion for new housing and homeless reduction. The 2019-20 Governor’s Budget proposes $1.5 billion in new state General Funds plus tax credits to remove barriers and increase housing production, particularly for low, moderate and middle income Californians.

·      $750 million in one time General Funds to jump start new housing. State Housing and Community Development will oversee and enforce local efforts to meet new housing targets.

·      $500 million in one time General Funds for loans to housing developers of moderate-income housing.

·      New state tax credits to pair with existing federal tax credits to create new affordable housing -- $500 million annually. Redesign of existing state tax credits to promote more housing starts.

·      Low cost, long term ground leases of excess state property available on a competitive basis for developers of new mixed income affordable housing.

·      Enhanced Infrastructure Financing Districts paired with federal Opportunity Zones for new affordable housing starts and green technology economic development.


California’s existing programs for homeless housing

·      Veteran’s Housing and Homelessness Prevention Bonds -- $4 billion (November, 2018 ballot)

·      No Place like Home Bonds -- $2 billion (November 2018 ballot)

·      Temporary housing -- $620 million


New state General Fund programs in Governor’s Proposed Budget -- $ 500 million

·      Joint regional planning to reduce homelessness -- $300 million

·      Meeting new housing for homeless milestones match -- $200 million


Streamlining CEQA approvals to get new housing for homeless built


CALTrans space allocated for localities to develop new shelters


SSI advocacy -- $25 million


Whole Person Care Pilots for the chronically ill homeless -- $100 million in new state match


Prepared by: Lucien Wulsin

Dated: 1/24/19



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