Policy & Legislation
Assembly Budget Subcommittee Declines Prop. 1C Infill and T.O.D. Augmentations
June 11, 2008
Concerned about whether taxpayers will receive a big enough return on their investment, on May 27, 2008, Assembly Budget Subcommittee 4 declined to augment the first round of funding for Prop. 1C's infill and transit-oriented development(T.O.D.)programs. This followed on the heels of a decision by the Senate to increase first-round funding by $100 million for infill and $45 million for T.O.D.
The committees' differing actions guarantee this item will be discussed in the two-house Budget Conference Committee, which is expected to begin meeting next week.
Committee Chair Juan Arambula (D-Fresno) questioned why the department made last-minute changes to both programs that favor large, market-rate developments. Many legislators and advocates believe the programs should instead focus on building a variety of homes that all Californians can afford.
CA Department of Housing and Community Development (HCD) director Lynn Jacobs denied any last-minute changes to the guidelines and urged the committee to augment both programs. She cited "tremendous demand" for the funds and high-quality applications.
Wanting more information before making a decision, the committee rejected the augmentations and adopted Supplemental Reporting Language directing HCD to report on the exact affordability levels of its first-round awards. HCD's Loan and Grant Committee meets in Los Angeles June 18 and 20 to make award decisions.
Preliminary data indicate approximately 55 percent of the infill program's homes, and 41 percent of the T.O.D. program's, will be sold or rented at market rates, which far exceed what most working families, seniors, and people with disabilities can afford.
Contact Julie Snyder, (916) 447-0503 x 102 or .
