Bringing you updates in legislation, policy, and other news relating to affordable housing, homelessness, sustainable communities, and related issues.

JULY 2023

State Budget Keeps Housing Funds Intact

by Natalie Donlin-Zappella, Legislative Director | Policy, Legislative Research, and Applications Team

On June 27th, Governor Newsom signed Senate Bill 101 - the Budget Act of 2023, which includes funding for housing and homelessness, and for transportation. Along with the budget, the Legislature sent 20 trailer bills to the Governor, including a “budget bill jr.” that makes changes to SB 101. The approved budget, which went into effect on July 1st, maintains funding for most housing and homelessness programs but does not provide ongoing funding or significant funding increases. For transportation, the Governor and Legislature reached agreement last week on a budget that provides $5.1 billion in emergency relief to support public transit and its workers. 

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Budget Trailer Bills Include CEQA Reforms for Infrastructure but Not Housing

by Chul Gugich, Principal | Policy, Legislative Research, and Applications Team

As part of the budget deal reached between Governor Newsom and the Legislature, new laws were adopted to streamline and reform the California Environmental Quality Act (CEQA) for infrastructure projects. This follows the Governor’s May announcement of a bold plan that proposed the adoption of eleven reform bills to speed up construction, limit the time courts have to consider CEQA challenges to nine months, expand streamlined CEQA permitting for certain projects, and maximize federal infrastructure dollars. Included in the Governor’s executive order was the creation of a new Infrastructure Strike Team to focus on infrastructure projects including solar, wind, and battery storage projects and transit and regional rail construction. But where does this leave housing? 

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Should California Adopt a Right to Housing?

by Yelba Carrillo, Principal | Homelessness Solutions Team

Voters may soon have the chance to vote on a State Constitutional Amendment to establish a right to housing in California. In basic terms, a right to housing recognizes the fundamental right of all people to have access to adequate housing, requiring that government officials take steps to uphold that right. While it sounds like everyone should be in favor, a right to housing comes with some controversy. Tenant rights advocates are strongly supportive, and more than 100 organizations have signed on in support. But while there is currently no formal opposition, local government leaders have expressed concerns that without substantially higher investment in affordable housing there are not the required resources to meet the need.

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State Settles Lawsuit with Advocates Over COVID Rental Aid

by Jacqueline Woo, Sr. Associate | Policy, Legislative Research, and Applications Team

Tenant rights and anti-poverty groups scored a major victory in June in reaching a legal settlement with the State of California over rental assistance payments for tenants impacted during the COVID crisis. As a result of the settlement, more than 100,000 tenants whose applications for rental assistance were either denied or delayed will have their applications reconsidered. Eligible tenants are those who submitted applications to the State prior to April 1, 2022, and whose application was denied or was not yet approved after June 6, 2022. 

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Governor and Partners Announce Transformation of Mental Health Services Act

by Yelba Carrillo, Principal | Homelessness Solutions Team

On June 27th, Governor Newsom signed Senate Bill 101 - the Budget Act of 2023, which includes funding for housing and homelessness, and for transportation. Along with the budget, the Legislature sent 20 trailer bills to the Governor, including a “budget bill jr.” that makes changes to SB 101. The approved budget, which went into effect on July 1st, maintains funding for most housing and homelessness programs but does not provide ongoing funding or significant funding increases. For transportation, the Governor and Legislature reached agreement last week on a budget that provides $5.1 billion in emergency relief to support public transit and its workers. 

READ THE ARTICLE > 

Congresswoman Waters Proposes Billions for Affordable Housing

by Jacqueline Woo, Sr. Associate | Policy, Legislative Research, and Applications Team

On June 21st, Representative Maxine Waters reintroduced a package of bills that would inject billions into affordable housing and homelessness programs. Similar bills had been introduced in 2021. The bills face a difficult challenge given the makeup of the House, but by introducing the legislation it keeps housing in the conversation in Washington.

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UCSF Benioff Homelessness and Housing Initiative Completes Comprehensive Homelessness Study

The University of California, San Francisco Benioff Homelessness and Housing Initiative (BHHI) just released Toward a New Understanding -The California Statewide Study of People Experiencing Homelessness - a comprehensive study on the causes of homelessness in California. Researchers surveyed nearly 3,200 homeless residents and conducted 365 in-depth interviews of homeless residents in eight selected counties that represent the diversity of the State. 

New Report Highlights Growth of Community Land Trusts and Shared Equity Housing

Grounded Solutions and the Lincoln Institute of Land Policy, in partnership with the University of Toronto, completed the first comprehensive national study of Community Land Trusts (CLT) and Shared Equity (SE) organizations in more than ten years, finding a 30% increase in the number of organizations working in this space that have created nearly 44,000 housing opportunities.

The Terner Center Releases Report on Permanent Supportive Housing

Last week, the Terner Center for Housing Innovation released a report - Permanent Supportive Housing as a Solution to Homelessness: The Critical Role of Long-Term Operating Subsidies — that shows the importance of sustained operating funding to the success of Permanent Supportive Housing (PSH) for the homeless. Diving into the operations of 26 PSH properties, the report finds that stable, affordable housing with services enables formerly homeless residents to stay housed. However, it also finds that the costs of operating PSH properties often exceeded initial projections due to higher staffing and maintenance costs, and that underfunded properties had worse outcomes for residents.

New Report from U.C. Davis Cites Conflict Between CEQA and the Housing Accountability Act

A new report that looks at conflicts between two laws that have an outsized impact on housing development - When Super Statutes Collide: CEQA, the Housing Accountability Act, and Tectonic Change in Land Use Law - was recently released by authors Christopher Elmendorf from U.C. Davis and Timothy Duncheon of Covington & Burling LLP. One of the laws, the California Environmental Quality Act (CEQA), has been used to slow down or kill new housing development, while the other, the Housing Accountability Act (HAA), seeks to eliminate barriers to new homes.

New Reports on Housing Affordability and Supply Trends

Several housing studies were released in June covering the cost of housing and housing supply trends, with some featuring interactive data dashboards and tools.

Out of Reach Report Released by NLIHC

The National Low Income Housing Coalition (NLIHC) released its 2023 Out of Reach report in June, which looks at housing affordability throughout the country, detailing wages and housing costs down to the city and county level.

Harvard Report on the State of the Nation’s Housing 2023

Harvard’s Joint Center for Housing Studies (JCHS) released the latest State of the Nation’s Housing report in June, finding that despite cooling trends in the nation’s housing market, home prices and rents continue to be challenging, particularly for lower-income households.

United Way Details the Real Cost of Housing in California

The United Ways of California issued a new report in June that highlights the challenges the State faces in meeting the housing needs of its residents. The Real Cost Measure in California 2023 report and its interactive data dashboard looks beyond just housing costs to include food, health care, transportation, and other basic needs each family needs to live in this high-cost State.

Zillow Finds that the U.S. Needs 4.3 Million More Homes

In June, Zillow released a report that found that the U.S. has a significant gap between housing supply and housing need. The report -Affordability Crisis: United States Needs 4.3 Million More Homes - suggests that the gap between available homes and demand is likely to grow. Strikingly, the report finds that the housing shortage has created millions of what it calls “missing households” - those who are living in shared environments and are unable to afford housing on their own. Unsurprisingly, the worst housing deficits were in California communities - including Los Angeles, San Francisco, San Jose, and San Diego.

A Little-Noticed Court Decision That Changes Homelessness in America | Article | Vox, June 12, 2023

‘Godzilla Next Door’: How California Developers Gained New Leverage to Build More Homes | Article | Cal Matters, June 5, 2023

“Builder’s Remedy 2.0”: Sacramento Letter Clarifies Compliance | Article | The Real Deal, June 22, 2023, and Letter (attached to tweet from Chris Elmendorf) to the City of Beverly Hills dated June 20, 2023

To End Homelessness, Where Should Our Housing Dollars Go? | Podcast | KCBS In Depth/Audacy, June 10, 2023

California Mayors Increasingly Turn to Temporary Housing Solutions | Podcast | KQED, June 16, 2023

Unsatisfied with Debt Deal, Some House Republicans Eye Deeper Spending Cuts in FY 24 Appropriations Bills | Blog | National Low Income Housing Coalition, June 12, 2023

The Perils and Promises of Redevelopment: Examining the Use of Tax Increment Financing in California Cities | Report | Terner Center for Housing Innovation, June 9, 2023

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