The United Voice for Affordable Housing

INDUSTRY INSIGHT APRIL 2023

NOTE FROM THE EXECUTIVE DIRECTOR

"All five of these bills are critically important to helping communities build the affordable housing they need."

With the legislative session fully underway and dozens of housing bills now in print, this year’s affordable housing production package is beginning to take shape—and CHC is working closely with our partners to build the diverse coalition it will take to get it across the finish line.

Two of these bills, SB 423 (Wiener) and SB 4 (Wiener), aim to accelerate local approvals for affordable housing: SB 423 by extending the successful provisions of SB 35, and SB 4 by opening up new sites for affordable development on land owned by higher education institutions and religious groups.

Once new affordable housing is approved, three other bills would help projects avoid becoming entangled in the frivolous lawsuits opponents use to prevent this housing from getting built. SB 439 (Skinner) would give courts a new, special motion to strike non-meritorious litigation targeting approved housing projects. AB 1449 (Alvarez) would strengthen existing CEQA exemptions for 100% affordable projects. And AB 1307 (Wicks) would address a troubling recent court decision by clarifying that residents’ voices should not be considered an environmental impact.

These aren’t the only important housing bills in this year’s session. But all five of these bills are critically important to helping communities build the affordable housing they need. Affordable housing advocates should be providing full-throated support for every one of them.

The CHC website has fact sheets and sample support letters for this new production package. If you haven’t submitted a support letter – please submit one today!

Thank you as always for your support—and we look forward to working with you to move this legislation forward.

Sincerely,

Ray Pearl, Executive Director

IN CASE YOU MISSED IT

SB 423 (Wiener), CHC’s co-sponsored bill to extend the sunset on SB 35, advanced out of the Senate Housing Committee last month with a 9-1 vote. The bill passed after a strong showing by supporters including the California Conference of Carpenters and a robust discussion amongst committee members about the bill’s labor and affordability provisions. SB 423 moves next to the Senate Governance and Finance Committee.

CHC’s other sponsored bills are all up in policy committee this month – it’s not too late to submit support letters on behalf of your organizations. Details and sample letters below.

The collapse of Silicon Valley Bank last month had major repercussions for affordable housing. Over the last two decades, SVB invested more than $2 billion in affordable housing in the Bay Area and Los Angeles. While the Biden Administration has announced that all SVB depositors will be protected, CHC is actively monitoring the impact to our members and advocating with key leaders to ensure affordable developments can continue to move forward without financing delays or impacts to other funding.

Together with the Attorney General, HCD continues to enforce housing laws to meaningfully and positively impact the provision of housing in all communities across the state. This was on display last month when the state of California and the city of Huntington Beach sued each other as a months-long dispute over the city’s response to the housing crisis finally boiled over. HCD accepts requests for technical assistance from local jurisdictions and requests for review of potential violations from any party through their online Housing Accountability Unit Portal.

HCD released proposed amendments to the Round 2 Multifamily Super NOFA Program Guidelines. Comments may be submitted in writing through April 10, 2023 using the form provided at this link: Multifamily Super NOFA Public Comments.

LEGISLATIVE ROUNDUP

To help every community stay on track to achieving their housing goals, CHC is sponsoring a package of legislation this year that will further accelerate local approvals, remove lingering barriers to affordable development, and help lower-income Californians access the safe, affordable homes they need.

SB 423 (Wiener): SB 35 Sunset Extension

This bill will extend and strengthen SB 35’s streamlining provisions and remove the sunset on SB 35 (Wiener).

SB 439 (Skinner): Special Motion to Strike NIMBY Lawsuits

This bill will strengthen existing protections for affordable housing projects by providing additional remedies to curtail non-meritorious litigation that can delay or kill projects even after they secure local approval.

SB 440 (Skinner): Regional Housing Finance Authorities

This bill will empower local governments to join forces to create regional housing finance agencies to address the unique affordable housing needs in their communities.

AB 1307 (Wicks): CEQA Noise Impact in Residential Projects

This bill will reverse a troubling, recent court decision relating to unamplified human noise under the California Environmental Quality Act (CEQA).

AB 1449 (Alvarez): CEQA Exemption for Affordable Housing

This bill will facilitate the development of affordable housing by exempting from CEQA certain 100% affordable housing projects throughout California.

Please take action today by placing your letterhead on each of CHC's sample support letters and uploading them onto the Legislative Position Letter Portal, and sending copies to our Policy Associate, Jennifer Armenta, at jarmenta@calhsng.org.

View our other priority housing bills on our bill tracker.

View our Bill Tracker

SAVE THE DATE!

CHC's 2023 Policy Forum &

CA Housing Hall of Fame Awards

September 7, 2023

Anaheim, CA

Thanks to our Title Sponsor Sponsor, Merritt Community Capital!

Contact Nancy Martin for sponsorship opportunities.

AFFORDABLE HOUSING NEWS OF THE MONTH

New bill would let California’s attorney general jump into more housing fights (San Francisco Chronicle)

State Treasurer Announces Extensions and Flexibility for Affordable Housing Projects Affected by Bank Closures (OC Breeze)

New California housing lawsuits face major obstacles, attorney says (Orange County Register)

California AG Bonta warns Elk Grove to reverse denial of affordable housing or face legal action (Sacramento Bee )

Save Livermore Downtown takes Eden Housing case to California Supreme Court (Pleasanton Weekly )

FEDERAL UPDATE FROM DAVID GASSON

Spring is upon us and the pace of activity on the legislative front is exhibiting the energy of those coming out of a cold winter slumber. I realize you, my friends in California, are still experiencing your unusual (maybe not so much anymore) weather trends but in DC the Cherry Blossoms are at their peak and baseball opening day is upon us across the country.

Following a mostly positive hearing before the Senate Finance Committee on tax policy and affordable housing, Finance Committee Chairman Ron Wyden reintroduced his Decent and Safe Affordable Housing for All Act (DASH). This comprehensive bill from Senator Wyden encompassed many housing issues including much of the Affordable Housing Credit Improvement Act (AHCIA), the Neighborhood Homes Investment Act, a renter’s credit, supportive services credit, vouchers and even zoning changes. It also includes the two of the primary preservation provisions, ROFR & repeal of QC’s, both on a prospective basis. It is a very aspirational piece of legislation designed to engage policy makers on the need for affordable housing resources and changes to address the housing crisis.

Senator Wyden is seeking bipartisan support for the DASH Act which is a great segue to the impending reintroduction of the AHCIA. The AHCIA working group will be meeting soon with our legislative leads on the proposed legislation to discuss exactly what will be included in the version to be introduced in the 118^th Congress. We are confident the resource provisions will remain the same, including the basis boost. The size of the bill is in question as many believe to garner strong bipartisan support, especially in the Senate, it may be necessary to pare back some of the 27 provisions that constitute the current version of the bill. The goal is to have the bill introduced by Senators Cantwell, Wyden, Young and Blackburn in the Senate and Reps. LaHood, Wenstrup, DelBene & Beyer in the House by late April or early May.

CHC MEMBER SPOTLIGHT

CHC Member: Decro Corporation

Project Name: Firmin Court

Location: Los Angeles, California

Units: 64 (45 PSH units, 18 affordable housing units and 1 on-site property manager's unit)

Opening Date: December 2022

State & Federal Financing Sources:

Photo Source: Juan Tallo

City of Los Angeles (tax-exempt bonds and Proposition HHH)
California Department of Housing and Community Development
Enterprise Community Investment (LIHTC investor)
Housing Authority of the City of Los Angeles (project-based vouchers)

Construction of the development involved, among other things, relocating and renovating a "historic" house built in 1895 and successfully abandoning and capping a more than 100-year-old oil well on the property. The project includes a Sky Deck on the 6th floor with a view of the downtown LA skyline for residents, together with a Community Room and Learning Center for local students to study after school.

"We’re not just opening a building," Ted Handel, CEO of Decro Corporation said. "The journey doesn’t end when the building is complete. This is one of the highest expressions of serving humanity. We are housing people. We’re giving them keys to a door of opportunity. When they open that door, it opens to a community that will be enriching, supportive, and safe."