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Housing California - Capitol Reporter

Hello  Housing California Supporter,

In this edition of the Capitol Reporter:

Steinberg Wavers on Housing Commitment

Senate President pro Tem Darrell Steinberg is considering using unencumbered housing funds from former redevelopment agencies to balance the 2012-13 state budget. Such a sweep would impact at least 175 pipeline developments poised to create 23,455 construction-phase jobs in the next two years.

In recent comments to the Sacramento Bee, Steinberg raised the possibility of abandoning his SB 654, which would preserve the low-mod balances for their original intended use. A survey indicates this move would threaten construction of at least 10,215 homes that were counting on the availability of redevelopment funding to move forward.

"We hope Senator Steinberg will continue to support preserving the existing housing funds," said Shamus Roller, Housing California's executive director. "If the legislature is looking for solutions to improve the state's future finances, it's hard to beat housing construction. The pipeline of affordable developments that depends on these funds will have a significant impact on the state's economy."

Key Assemblymembers recognize the value of the jobs and taxes generated by home construction, as well as the value to Californians of having a secure, affordable place to live. Assembly Speaker John Pérez and Assemblywoman Toni Atkins are leading the fight for AB 1585, which preserves the housing balances and addresses other significant problems with last year's AB 26x.

AB 1585 is currently in the Senate, but hasn't been set for hearing yet. A coalition comprised of Housing California, Western Center on Law and Poverty, California Housing Consortium, Non-Profit Housing Association of Northern California, and Habitat for Humanity California is circulating a memo to all Senators, urging them to move quickly on the bill.

How you can help:     

1. If you haven't already done so, please use our click-and-send Action Center to urge Governor Brown and your Senator to support AB 1585 and SB 654.

2. If you have a threatened project, please call the Senator in whose district the project is located and urge him/her to push for quick passage of AB 1585. Learn more.      

Contact: Julie Snyder, 916.447.0503 x102 or jsnyder@housingca.org.

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Redevelopment 2.0 Surfaces

Senate President pro Tem Darrell Steinberg is forging ahead with an attempt to re-authorize local redevelopment-like activities. 

SB 1156 by Senator Steinberg authorizes cities and counties to form a joint powers authority (JPA) to carry out Community Redevelopment Law, using the assets of the former redevelopment agency as well as new property tax increment. Key differences between the bill and redevelopment as it previously existed include: 

  1. Limiting the JPAs' revenue to approximately 33 percent of the amount formerly controlled by redevelopment agencies.
  2. Eliminating the blight requirement.
  3. Allowing project areas only around transit stations, so-called "small walkable communities," and clean manufacturing sites.

The bill passed both the Senate Governance and Finance Committee and Senate Transportation and Housing Committee late last month and will be heard next in the Senate Appropriations Committee. 

Housing California's policy committee is reviewing the legislation this week. We want to ensure it reflects the myriad lessons learned over the 50-plus years redevelopment has been active in the state. 

Contact: Julie Snyder, 916.447.0503 x102 or jsnyder@housingca.org.

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Prop 1C Modification Bills Move Through Legislature

Spurred by fiscal crisis, the legislature has turned its attention to undersubscribed Proposition 1C programs in attempt to get money out the door more quickly. Three separate pieces of legislation are moving through the Assembly. Each bill is designed to better utilize state resources by moving existing unspent money into other programs or make tweaks to improve the functioning of the program.

  • AB 1951 (Atkins) would reallocate $30 million from unutilized programs in the Affordable Housing Innovation Fund to the Multifamily Housing Program (MHP). The $100 million for the Affordable Housing Innovation fund was created in SB 586 (Dutton) in 2007. The Practitioner fund and Construction Liability Reform Pilot Program have yet to make any awards, and the $30 million remaining in those funds would be transferred to MHP. Housing California is in support of AB 1951.
  • AB 2447 (Skinner) would establish a state version of the Neighborhood Stabilization Program to be called the California Neighborhood Revitalization Fund. The fund would be capitalized by a one-time transfer of $25 million from the California Homebuyer's Downpayment Assistance Program (CHDAP), which currently has $87 million remaining. Housing California does not currently have a position on this bill.
  • AB 1672 (Torres) would change the threshold for accessing funds from the Housing-Related Parks Program from housing starts (which currently need to be proven by foundation inspections and occupancy certifications) to the issuing of building permits. The program has about $160-170 million remaining out of an initial $200 million. The author hopes that simplifying the application process will make it easier for jurisdictions to access the funds, which are intended to incentivize the production of affordable homes by awarding additional parks funding for doing so. Housing California does not currently have a position on this bill.

Contact: Zack Olmstead, 916.447.0503 x108 or zolmstead@housingca.org.

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Select Committee on Homelessness to Hold Next Hearing May 10th 
Focus on healthcare for homeless

The Assembly Select Committee on Homelessness will hold its second hearing of the year on Thursday, May 10th in Sacramento. The hearing is scheduled to take place from 1-4 p.m. in room 437 of the State Capitol and will focus on access to healthcare for homeless individuals and healthcare reform options. For those who may not be able to attend the hearing in person, it will be available online.

Contact: Zack Olmstead, 916.447.0503 x108 or zolmstead@housingca.org.

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