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Industry Insight - May 2020
Note from the Executive Director
There is no doubt that we are all in this together. At all levels of government, elected officials have quickly responded to the threat posed by COVID-19. In spite of that unprecedented and collaborative response, new research from the Terner Center shows the dramatic impact the crisis is having on California:

2.3 million renter households have at least one worker in an industry likely to be immediately affected by efforts to flatten the curve in the COVID-19 pandemic and 50% of those households were already struggling with rental cost burdens.

California was already in the midst of daunting affordable housing and homelessness challenges. This crisis only exacerbates the vulnerability these households were facing.

To take on these challenges, CHC and our members produced a detailed proposal— Keep California Housed —highlighting two immediate steps the state and federal government can take to keep struggling renters in their homes and assure the financial stability of affordable housing.

First, CHC is calling for a significant increase in direct rent payment assistance for lower-income residents. Second, with projections showing the potential for a $1.7 billion loss in affordable housing rental income over the next year, the state also needs a $1 b illion project-based subsidy pool that will allow developments to avoid foreclosure and provide rent relief to tenants who are struggling to pay rent due to COVID-19.

We have joined our national partners to advocate for emergency rental assistance and eviction prevention , including funding for project-based rental assistance, and legislative solutions to ensure affordable housing can move forward in California and across the nation. This includes Congressional action to set a 4% floor on tax credit rates (which have dropped to just over 3% in May, threatening the viability of many properties) and to lower the “50% test” on 4% tax credit developments.

With the Legislature returning to session this week, the state government must also play a role in providing assistance to low-income renters living in affordable housing. While the state budget is likely to be severely impacted by the economic slowdown, continued funding for affordable housing programs is one of the best options available for keeping the state’s most vulnerable residents stably housed—and avoiding a substantial increase in homelessness once the state’s emergency housing protections expire.

I am proud of the work CHC leadership and staff have done to raise awareness about these issues. Now we have reached the critical moment when we need to make these a reality.

Sincerely,


Ray Pearl
Executive Director
In Case You Missed It
  • Members of Congress are working on the next COVID-19 package - sometimes referred to as CARES 2.0 or COVID-19 4.0. The scope and timing of the legislation is uncertain at this time, but CHC is engaging actively with our national partners and CA Congressional delegation.

  • Our annual May Policy Forum and Housing Hall of Fame Awards has been postponed to September 2.



  • As the Legislature slowly returns back to session, CHC is continuing to advocate on a few critical housing bills. CHC is still sponsoring:
  • AB 3107 (Bloom), which would allow housing development in certain commercial zones
  • AB 2988 (Chu), which would expand the use of AB 2162 streamlining of permanent supportive housing
  • AB 1907 (Santiago), which would exempt from CEQA any activity approved by or carried out by a public agency in furtherance of providing emergency shelters, supportive housing, or certain affordable housing projects. 
Affordable Housing in the News
This month in affordable housing news, it was all about COVID-19—and how people were going to pay the rent. Almost four million Californians had filed for unemployment by the end of May , leading Governor Newsom to announce that “we are now in a pandemic-induced recession.”  The state acted quickly this spring to protect renters from eviction for non-payment of rent—and to help homeowners avoid foreclosure when they couldn’t pay their mortgages. But many questions remain about what happens next, especially now that the state has begun to reopen in a limited way : Eviction restrictions are now in place until 90 days after the emergency stay-at-home orders are lifted. Mortgage forbearance is available for up to 90 days. But frustration among renters continues to rise: “Renters hit new levels of rage under the coronavirus,” said the Los Angeles Times. Rent is due again and missing payments have landlords worrying,” said Bloomberg . “California renters and landlords face a historic financial ‘reckoning’ from coronavirus,” said the Sacramento Bee . How will the state and federal government respond? Ideas being discussed in the Legislature range from rent strikes and statewide rent forgiveness to a bill that would cut rents by 25% across the state . Affordable housing advocates have proposed a more straightforward approach: Helping struggling residents pay their rent —while ensuring the state’s already scarce affordable housing communities remain solvent when this crisis finally ends. Like a lot of issues emerging as a result of COVID-19, which approach the state will take is not yet clear.
CHC Members Recognized in AHF Top 50
Congrats to 13 of our members recognized in Affordable Housing Finance's 2019 Top 50 Affordable Housing Developers!

  • The Michaels Organization
  • The Pacific Companies
  • AMCAL Multi-Housing
  • McCormack Baron Salazar
  • Jamboree
  • National CORE
  • Mercy Housing


  • Related California
  • Affirmed Housing
  • Community Development Partners
  • Highridge Costa Companies
  • BRIDGE Housing
  • Self-Help Enterprises
CHC Member Spotlight
CHC Member:  Visionary Homebuilders
Project Name:  La Passeggiata
Location:  Downtown Stockton, CA
Units:  94, split between large family and senior until
Opening Date:  TBD
State & Federal Financing Sources:  Potential MHP and 4% tax credit funding

This project will be the first modular multi-family housing project in Stockton, in response to CA Governor Gavin Newsom's vision of building affordable housing on excess state-owned land.

"To address the housing affordability crisis, we need to use every tool in the toolbox and that includes affordable units on excess state-owned land.
But we can't realize this vision alone. We are working alongside local leaders who are stepping up in their communities to tackle the housing shortage head on." said Governor Newsom
Save The NEW Date For
CHC's 2020 Policy Forum &
California Housing Hall of Fame Awards
sponsored by