Policy & Legislation
Administration Caves to Senate Leader on Infill Program
But Affordability Points Remain Untouched
March 4, 2008
Despite the best efforts of advocates and legislators concerned about the lack of homes affordable to most Californians, big developers and cities won the latest debate over Proposition 1C funds. The Infill Infrastructure Grant Program Guidelines released by the California Department of Housing and Community Development (HCD) last Thursday allocate 80 percent of the Infill Infrastructure Grant Program funds to large, multi-phase developments and infill "areas" designated by cities. Only 20 percent will be spent in the "project" category where most below-market-rate developers will apply.
The likely outcome of this 80/20 split is a lost opportunity to stimulate the economy, as the "areas" probably will contain developments years away from breaking ground. Additionally, "areas" will apply for more money to assist market-rate homes -- and less for homes that average Californians can afford -- than the "project" category. Lastly, rural areas without big developments or infill areas will be largely shut out of the program.
Outside of the split, the final guidelines reflected Housing California’s key suggestions, including:
- The number (30) and scale of points for affordability reward deeper affordability.
- Parking structures -- a large infill cost -- are eligible for funding.
- Minimum grant levels allow smaller developments to apply.
- Larger per-home grants for more-affordable homes recognize the lower debt service that these homes can support.
Many observers believe the Schwarzenegger administration agreed to the 80/20 split because its key legislative champion held the fate of an agency secretary in his hands. Business, Transportation, and Housing Agency Secretary Dale Bonner faced confirmation last week in the Rules Committee, controlled by Senate President pro Tem Don Perata. In the hearing, Perata thanked Bonner for overriding HCD's recommendation to split the funds 58 percent "projects"/42 percent "areas". The committee voted 5-0 to recommend Bonner's confirmation to the full Senate.
Contact us for information on how you can turn this lemon into lemonade and help to prevent the same split of funds in the second round of funding!
Contact Julie Snyder, (916) 447-0503 x 102 or .
