CHC Industry Insight

Industry Insight - February 2022

Note from the Executive Director

The deadline for introducing new bills is today, and I’m pleased to report CHC is sponsoring two important pieces of legislation that will now begin to move through the Legislature—a number we expect to grow in the weeks ahead.

Our current sponsored bills include AB 2334 (Wicks), a bill authored by the chair of the Assembly Housing and Community Development Committee that seeks to increase the number of sites qualifying for expanded Density Bonuses available to 100% affordable projects by including low-VMT areas. AB 2006 (Berman) aims to streamline the state’s compliance monitoring system by directing one entity to manage this essential, but often duplicative, work.

We are also working closely with members on a range of other policy priorities, from identifying an ongoing funding source for affordable housing to clarifying state rules on everything from impact fees and factory-built housing to rental subsidies and surplus land. CHC and our partners are also continuing to push for an expansion of this year’s affordable housing budget investments. (See our latest budget proposal here.)

CHC is celebrating our 25^th anniversary this year—a major milestone that I hope we’ll have some time to acknowledge and celebrate in person together. Looking again at the work we are doing this year, it’s clear that we are continuing to reap the rewards of years of foundation building from our early days as an organization—and are in the midst of a decade-plus of growing influence and impact. We have earned our place at the table, we have become a trusted partner to key members of the Legislature, and we have a Governor who cares about our issue. We are making a difference, and it is undeniable.

During our time together, one thing has stayed the same: We are a small but mighty group of affordable housing leaders committed to doing the essential, sometimes under-the-hood job of updating the rules and regulations we need to build more safe, affordable homes. And we come to work every day knowing we will do everything we can to ensure this essential part of the state’s safety net stays at the top of the policy agenda.

That remains our mission, and I couldn’t be prouder of what we’ve achieved over the last 25 years—and the work we still have to do. I look forward to more to come in the year ahead.

Sincerely,

Ray Pearl

Executive Director

In Case You Missed It

CHC is sponsoring two critical bills this legislative session:
AB 2334 (Wicks) would expand the AB 1763 enhanced density bonus to all 100% affordable housing developments located in low vehicle travel areas.
AB 2006 (Berman) would require HCD, TCAC, and CalHFA develop a process to ensure that only one entity conducts compliance monitoring for projects that have regulatory agreements with more than one of these entities

CHC, along with state and regional partners, submitted letters to the Governor and Legislative leadership requesting significant 2022-2023 budget investments to address housing affordability and homelessness. In addition to supporting several of the Governor’s proposals, CHC is advocating for $5 billion over three years for the Multifamily Housing Program (MHP) and the California Housing Accelerator Program to increase production of desperately needed affordable housing.

Governor Newsom announced more than $923 million in awards for affordable housing projects through the state’s new California Housing Accelerator, the $1.75 billion program created last year to fund shovel-ready projects stalled in the state’s backlogged tax credit system. The Governor’s office reports 27 projects have been approved to date—totaling 2,300 affordable units—with nearly all expected to break ground this summer. More information on awardees is available here.

A growing number of vacant seats in the Legislature has begun to have an impact on some of this session’s highest-profile bills—a political challenge that could expand over the course of the year as a combination of redistricting and term limits change the face of the Capitol. A week after a single-payer health care proposal was pulled due to lack of support in the Assembly, an ambitious tenant protection bill authored by Asm. Alex Lee (D-San Jose) also died without a vote, in spite of support from a broad coalition of equity groups, YIMBYs, and tenants rights advocates.

This upcoming week, join the Terner Center on Wednesday, February 23 from 12 pm to 1 pm PT for a webinar Hotels to Affordable Housing: Strategies for Conversion from Across the Country. The webinar will highlight effective strategies and lessons learned from these approaches, as well as the policy changes that are needed to support the long-term success of conversion projects. Panelists will also explore how this body of work can inform the broader policy dialogue around affordable and permanent supportive housing.

Affordable Housing in the News

This month in affordable housing news has seen a wave of complaints about abuses of the California Environmental Quality Act (CEQA) by NIMBYs opposed to new housing. UC Berkeley sent thousands of potential students an email this week announcing that enrollment would be capped this year due to a lack of faculty housing—the result of stalling tactics by neighborhood groups who have used CEQA for years to halt new development.

Eden Housing has continued a similar fight in court with opponents of a 130-unit project in Livermore on a site designed for housing more than a decade ago. A state court this month rejected the neighborhood group’s arguments, saying their claims were “almost utterly without merit,” but the damage may already be done: Mandolini says the lawsuit has forced Eden to return $68 million in low income housing tax credits.

In the Legislature, meanwhile, Asm. Cristina Garcia (D-Downey), has a bill, AB 1001, that could make it easier for CEQA to be used to stop housing. “There is a problem in the way this world works,” Mandolini told the San Francisco Chronicle. “You can use CEQA to delay housing almost indefinitely.” Senator Scott Wiener (D-San Francisco) told the Los Angeles Times that he plans to unveil legislation next week related to the environmental law.

Congratulations to CHC Vice Chair, Robin Hughes, Named HPN’s New President and CEO

Earlier this week, the Housing Partnership Network announced Robin Hughes will be appointed their next President and CEO. HPN is a national business collaborative of affordable housing and community development member organizations as well as a CDFI and national HUD certified housing counseling intermediary.

Robin has devoted over 30 years to California’s affordable housing industry, with 25 years of leadership at Abode Communities and 9 years spent on CHC’s Board of Directors. She is widely considered to be an expert and thought leader in affordable housing production, preservation, and policy and has been an invaluable resource to CHC’s board and policy committee.

CHC Member Spotlight

CHC Member: Community Preservation Partners

Project Name: Cameron Park Apartments

Location: West Covina

Units: 158

Opening Date: August 2020

State & Federal Funding Sources:

Tax Exempt Bond and 4% Tax Credits, HUD Section 8 LIPHRA Contract

“Whether in West Covina, or at any of our more than 50 communities across the country, one standard facet of our business model is the improvement of residential structures – making them more presentable, functional and livable,” said CPP President Anand Kannan.

CHC 2022 Policy Forum - September 8

Special thanks to our Title Sponsor,

Merritt Community Capital Corporation!