CHC Industry Insight

Industry Insight - December 2020

Note from the Executive Director

This difficult year has proven time and again how essential affordable housing is for California’s most vulnerable. And when the Legislature returned to session on Monday—at the same time shelter-in-place orders are being imposed across the state—we were pleased to see leaders in both houses make expanding access to affordable housing a top priority once again.

More than a dozen housing bills were introduced on the first day of session—including a placeholder for a new affordable housing bond and several bills to support renters and affordable housing providers. More details are in the ICYMI section below.

It is very early in the session, and we are still digging through this new legislation and working on our own bill ideas. But just like last year, we have the same bottom line: In the midst of a global pandemic that has greatly impacted the state’s lowest-income, most vulnerable households, we are eager and willing to support ideas that will meaningfully expand access to affordable housing—and provide struggling families, seniors, and veterans with a safe, affordable place to call home.

It’s as simple as that, and Californians deserve nothing less.

Our state’s leaders will have an incredible number of tough tasks on their plate next year, and we remain committed, as always, to finding win-win solutions that significantly increase the availability of affordable housing.

When the Legislature returns in January, we’ll be ready to do the work to get there.

Until then – stay safe and healthy and have a happy holiday.

Sincerely,

Ray Pearl

Executive Director

In Case You Missed It

The Senate reintroduced all five bills from this year’s housing package—and added a key missing piece, SB 5 (Atkins), a placeholder for a new affordable housing bond.

Newly introduced Senate bills include: SB 6 (Caballero), a bill that would make housing an allowable use in commercial zones; SB 7 (Atkins), a bill providing CEQA exemptions to certain types of housing; SB 8 (Skinner), a bill to extend density bonuses to student housing; SB 9 (Atkins), a bill providing ministerial approvals for duplexes; and SB 10 (Wiener), a bill that would exempt from CEQA housing projects up to 10 units in transit-rich, jobs-rich areas. Also introduced this week was SB 15 (Portantino), a bill to create financial incentives for development of idle retail sites.

In the Assembly, two bills were introduced to protect renters and support affordable housing: AB 15 (Chiu) would extend the state’s eviction moratorium, and AB 16 (Chiu) aims to address “long-term financial impacts” of COVID-19 on affordable housing providers. Another bill, AB 71 (Rivas), seeks to raise $2.4 billion annually for homelessness programs through a new millionaire’s tax.

Several Assembly bills would implement recommendations from the recent Auditor’s report on state affordable housing agencies. These include AB 49 (Petrie-Norris), which would eliminate CDLAC and transfer its duties to TCAC, and AB 68 (Salas), a spot bill for implementing other proposals introduced by the Auditor.

Two constitutional amendments impacting affordable housing have also been reintroduced: ACA 1 (Aguiar-Curry) would lower the vote threshold for local housing bonds and SCA 2 (Allen, Wiener) would repeal Article 34 of the constitution, which requires local voter approvals for affordable housing development.

Finally, both houses introduced a package of bills to expand broadband access in underserved areas—a growing issue for affordable housing residents that CHC recently raised in a letter to the California Broadband Council. The year’s first broadband bills include SB 4 (Gonzalez), AB 14 (Aguiar-Curry), and AB 34 (Muratsuchi).

Federal Update with David Gasson, Housing Advisory Group

Well, 2020 is finally drawing to a close and if we are fortunate it will go out with a big bang. As of the writing of this update we are engaged with the Lame Duck Congress and a number of our key issues are in play including the fixed 4% LIHTC, a reduced 50% test and perhaps some rental assistance. Here is a quick list we can look back on in January to see how Congress (we) fared in addressing some very pressing 2020 issues.

FY 2021 Budget

With the December 11 expiration of the current continuing resolution (CR) looking them in the face, Congress is busily negotiating an omnibus budget for the remainder of the fiscal year. While I am bullish on them reaching an agreement on a budget it is likely they will pass another short-term CR giving them more time to negotiate a budget and short of that, a longer-term CR getting them to March or April of next year passing the buck to the next Congress and the new Biden Administration. The significance of attaining a budget is our goal so that Congress can affixing a tax bill to it that would include our tax priorities.

Tax

With some 33 tax extenders needing to be addressed as well as a number of other tax issues including our 4% fixed LIHTC, negotiations continue between the four corners (Speaker Pelosi, House Minority Leader McCarthy, Majority Leader McConnell and Senate Minority Leader Schumer). We have been working closely with our lead sponsors in the House and Senate as well as with staff and Members of both tax writing committees. For those of us that can remember a time before COVID-19, we came ever so close to securing the 4% rate a year ago. We find ourselves in a very similar situation now except that we are much better positioned with policymakers after another year of education on the significance of the 4% fix and the dire situation that has grown worse due to the pandemic. I am bullish on finally securing the 4% fixed rate but am always cognizant that for some, public benefit comes second to the political chess match. What is different for us now is a pro-housing administration coming in January that shares our affordable housing agenda. So while we work for a win over the next three weeks it will not be a year before we have another opportunity to see our affordable housing agenda succeed. Action on our agenda as well as other community development proposals will be at the forefront of the Biden administration and we are already working with them on these priorities.

COVID Relief

After giving up any hope of Congress passing another COVID relief package after the election a bipartisan group of Senators and House Members cobbled together a $908 billion aid package with a little bit of something for almost everyone. While there are no direct payments to households there is another round of unemployment assistance, $25 billion in rental assistance, funds for hospitals, schools and local government as well as more PPP and limited liability protection for businesses. What is also in the works is an extension of the eviction and forbearance moratorium. The Democratic leadership came on board with the compromise proposal shortly after its introduction by the self-named Problem Solvers Caucus and not long thereafter the Republican leadership signaled their willingness to discuss the proposal. The White House has also weighed in indicating the President would sign this proposal if it makes it to his desk so hope springs eternal that a down-payment on more COVID relief may arrive before the end of the year.

In the end all of this could get tied up into one big Omnibus/CRomnibus/Tax/COVID package with a bow attached. Hope springs eternal.

It goes without saying that we all look forward to 2020 ending. That said, we are not going quietly into that good night and, along with you, are working to have the year go out on a positive note. There is so much potential ahead of us and no matter what happens between now and December 31, next year looks to be a better one for the country and our agenda.

Thank you all for everything you do to provide housing, health and happiness to all that benefit from your work, and stay tuned, be ready to answer the call if it comes and most importantly of all, have a very safe and Happy Holiday Season and New Year.

Affordable Housing in the News

This month in affordable housing news included a number of stories on the prospect of further federal and state action after a tumultuous election, a spike in COVID-19 cases, and the ongoing strain caused by California’s shortage of at least 1.2 million homes affordable to the state’s lowest-income households. With the state’s eviction moratorium set to expire in less than 60 days and two million people at risk of losing their homes, CalMatters highlighted the options for avoiding the looming “eviction cliff.” The San Francisco Chronicle reported on the return of the state Legislature—and the reintroduction of last year’s stalled housing bill package, which “fell victim to internal politics, battles with interest groups, and the coronavirus pandemic.” The Los Angeles Times offered a look back at what the failure of several major statewide ballot measures means for the politics of housing—and “why liberal California keeps saying no to rent control.” The Gimme Shelter podcast, meanwhile, featured an interview with CHC boardmember Carol Galante, who tried to answer the question on everyone’s mind: Can President-Elect Biden help solve California’s housing crisis?

Earlier this week, Facebook announced that it is designating the first $150 million of it's $1 billion affordable housing commitment to build extremely low income housing in the San Francisco Bay Area. This new Community Housing Fund will support the development of at least 2,000 deeply affordable homes, making it California’s largest private fund dedicated to creating housing for extremely low-income families — families that are making less than 30% of our region’s median income.

CHC Member Spotlight

Building for good...

In 2020, Jamboree marks 30 years of building for good. Our developments are platforms for community change – with more properties, partners, and programs, even more support for policies, and proof of the impact our solutions are making to truly change lives. Since 1990, Jamboree has been building for good, developing quality affordable housing with resident services that create strong, healthy communities and transform lives.

What does it mean to build for good?

Work with diverse groups of partners to make it happen: Create market-rate-quality affordable housing, financed for long-term affordability with strategic funding sources and public/private partnerships.
Support resident services that create stability for individual success in measurable ways: Housing and services are the keys to true economic, social and educational impact for residents and their communities.
Coordinate with municipalities to create sustainable developments: Continuous measurement of our work has yielded individual success for our residents and tangible benefits for surrounding communities.

Stories of success

A key metric in measuring the good built into every property is the success stories of our residents. Our senior resident services empower residents to stay active and social as they age in place. Fran and Gloria, residents at The Meadows in Irvine, felt neighbors were disconnected due to COVID-19. Taking matters into their own hands, they started a community newsletter – distributed to all 360 of their neighbors’ households!

Our family programs offer programs and activities designed to empower our families, foster learning, and healthy living. After her divorce, Christi and her daughters moved to Bonterra Apartments in Brea. For the next seven years they thrived as a family and Christi enjoyed success at work, saving her money to achieve their ultimate goal to move into their very own single-family home.

Jamboree offers an enhanced level of supportive programs for our most vulnerable residents like Richard, a homeless Army veteran who turned to drugs after losing his trucking business during the great recession. Today he is clean and sober and leads the food distribution program where he lives at The Studios at Hotel Berry in Sacramento. He is stably housed and active in his community.

Continued growth

Jamboree’s 30^th year has been it’s most unusual and productive year ever. Never in the cinematic visions of Hollywood did a pandemic ever lead to increased housing production with financial support coming from every level of government. The past 12 months have seen Jamboree secure over $380 million of financial support to build 1,100 new homes at 15 developments in seven counties from San Diego to San Jose. Over the past 30 years, Jamboree has grown from a staff of one to 100, expanded its geographic reach from the ocean to the desert, serving more than 18,000 Californians. With the support of our many public and private partners we look forward with enthusiasm to the next 30 years.