Today, Governor Brown released his 2017-2018 budget proposal (view Sloat, Higgins, Jensen's budget summary). The proposed balanced budget eliminates a projected $2 billion deficit and bolsters the state's Rainy Day Fund while continuing to invest in education, health care expansion and other programs.
While the Governor again acknowledged the housing shortage, the only "new" money in the budget for housing is a second year of funding for the No Place Like Home Program, funded from Prop 63 money. The proposed allocation for this budget year is $263 million. In addition to this, the budget includes a $300 million continuous appropriation for the Affordable Housing and Sustainable Communities (AHSC) program, to be allocated only after the legislature approves legislation confirming the ARB's authority to continue the Cap and Trade program after 2020. View
full housing budget summary and
Cap and Trade summary.
The Governor stated that he is committed to working with the legislature on the development of a legislative package to address the state's housing shortage and affordability issues. The budget lays out several principles for guidance of the package that will be negotiated between the Administration and the Legislature:
- Streamline housing production--reduce local barriers, delays and duplicative reviews, etc.
- Lower Per Unit Costs--reduce permit and construction policies that drive up costs.
- Production incentives-- Those jurisdictions that meet or exceed housing goals should be rewarded with funding and regulatory benefits. Those that does not should be encouraged by tying housing construction to other infrastructure investments.
- Accountability and Enforcement--Compliance with existing laws should be strengthened.
- No Impact to the General Fund--No new costs or new cost pressures can be added. And permanent source of funding should be tied to other reforms.
The California Housing Consortium released the following statement from Executive Director Ray Pearl on Governor Jerry Brown's budget proposal for Fiscal Year 2017-2018:
"California leaders have made a commitment to defend our state's ideals of inclusion and opportunity, yet the budget released today allows an unprecedented housing crisis to continue taking a human and economic toll that undermines these values.
"Despite the state's Department of Housing and Community Development acknowledging that too little housing investment impedes economic growth, today's budget offers no new investment to jumpstart affordable home construction and improve our worst-in-the-nation poverty ranking.
"Without a bold commitment to new investment, the housing market will never reach a segment of the most vulnerable Californians, including seniors, veterans and the lowest-paid workers, locking them out of a safe place to raise their families and attain health. Through AB 71 (Chiu) and SB 2 (Atkins), California has the opportunity to invest in proven affordable home programs, boost the economy, and create jobs - all without General Fund commitment.
"California's affordable home developers couldn't agree more with Secretary Ben Metcalf's assessment that 'because these are housing challenges that have been created through policies, we know we can fix them.' California's affordable homebuilders are encouraged that Governor Brown has committed to work with the legislature to reduce barriers to construction. To that end, we urge Governor Brown to support AB 72 (Santiago) to promote the local accountability needed to ensure plans for affordable homes result in actual places for workers and families to live.
"California leaders are right to maintain our state's exceptional commitment to inclusion, health, economic opportunity - now they must lead to ensure that our state invests in the affordable homes needed to make those opportunities attainable."
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