CHC Industry Insight

Industry Insight - September 2020

Note from the Executive Director

The Governor has a week before the end-of-September deadline for signing legislation, and we expect him to act soon on the relatively small number of affordable housing bills on his desk this year.

Those include the CHC-sponsored, AB 434 (Daly), a bill that would create a one-stop process for affordable housing providers to apply for funding from seven state multifamily housing programs, and another important bill, AB 2345 (Gonzalez), which would increase incentives under state Density Bonus Law for housing developments to include higher percentages of units for low-income and very-low-income households.

There are other useful affordable housing bills now before the governor—including several updates to the SB 35 approval process—but by and large, this year was a disappointing one for affordable housing. The strain of COVID-19 put unprecedented pressure on the Legislature, causing significant disagreements between the two houses—and between stakeholders—that resulted in a rushed, haphazard, and ultimately unsatisfactory end of session.

We can not forget to celebrate our successes this year where we had them and we did make some significant progress including, most notably, the state budget’s $500 million for the Low Income Housing Tax Credit. We can acknowledge where there is work to do with our partners. And we will press ahead with the understanding that as we enter the seventh month of the coronavirus pandemic, it has never been clearer that affordable housing is an essential service—and the only way for millions of vulnerable California households to stay safe and healthy, with a roof over their heads.

With your continued support, we will take this message to Sacramento once again next year—and work to expand access to the affordable housing Californians need.

Sincerely,

Ray Pearl

Executive Director

In Case You Missed It - Federal Update

A new wave of COVID-19 relief could be increasingly difficult to achieve in Washington before the election, as partisan maneuvering ramps up around the appointment of a new Supreme Court justice. “We still have 11 million people out there” without jobs, Jerome Powell, chair of the Federal Reserve, told Congress this week. “There is still a lot of work to do there.”

A bipartisan congressional “Problem Solvers Caucus” unveiled a $1.5 trillion COVID relief plan this month that includes $25 billion for mortgage and rental assistance, $500 billion in aid to state and local governments, and $120 billion in unemployment assistance through January 2021.

While the White House indicated they could be open to the plan, Senate Republicans have shown little interest, and Speaker Pelosi has said Democrats will not go lower than $2.2 trillion as part of a negotiated deal.

On the affordable housing front, the Federal Reserve Board issued an advance notice of proposed rulemaking this week to modernize the Community Reinvestment Act and will provide 120 days for community and industry feedback. The Fed and FDIC declined to sign on to updated CRA rules issued earlier this year by the Office of the Comptroller of the Currency.

In Memorium, CA Housing Hall of Fame Honoree John Stewart

From CHC Emeritus Director Jack Gardner, President & CEO of The John Stewart Company:

"We are all heartbroken at JSCo but honored to have worked with John and it is our privilege to carry on with his legacy of high quality affordable housing."

It is with profound sadness and loss that we share the news that the JSCo Founder and Chairman, John Stewart, has passed away after a two-year battle with cancer.

John’s legacy lives on, both through the eponymous Company he founded 42 years ago and the thousands of high-quality affordable housing units he helped produce during a life very well lived (John K. Stewart – Bio). It also lives on through our memories of him, and we have created a page where we can all share our memories of John (John K. Stewart Memory Page) – please feel free to visit and share your photos, memories and stories.

Affordable Housing in the News

This month in affordable housing news included a number of detailed post mortems on the unusually frenzied end of the legislative session, which saw several bills in Senate President Pro Tem Toni Atkins’ housing package fall short of passage (literally at the stroke of midnight), quarantined Republicans joining via teleconference after a member tested positive for COVID-19, and the unforgettable image of Assemblymember Buffy Wicks (D-Richmond) being forced to testify in person in support of legislation with her newborn baby.

CalMatters called the proceedings an “absurd tableau,” while noting the unprecedented pressure the pandemic imposed on legislative procedures this year—and the growing tensions that resulted between the Assembly and Senate. The San Francisco Chronicle called it an “ignominious end” to what some had called the “year of housing production:” Even before several high-profile bills failed to advance on the last day, more than a dozen significant affordable housing bills had already been quashed during the pandemic-shortened session, including several CHC-sponsored bills that sought to open new sites to affordable housing and accelerate production.

“I would say it was disappointing,” Assembly Speaker Anthony Rendon said of the legislative session. “It was not the year we thought it was going to be on January 1.” Senator Scott Wiener, author of several major housing bills, shared a similar sentiment: “Let’s be straight up: California failed on housing this year,” he said, while noting housing advocates would “be back with a strong 2021 housing agenda” next year.

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CHC's 2020 Policy Forum &

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