The United Voice for Affordable Housing 

IN CASE YOU MISSED IT

• “Could 2023 be the sleeper year for solving California’s housing crisis?” That was how a Los Angeles Times editorial this week summed up this year’s legislative session on affordable housing, noting the passage of all of CHC’s sponsored bills along with dozens of other policy changes that “are expected to have a big impact over time by making it easier to build more apartments, affordable housing, and accessory dwelling units.” The next challenge, says the Times, is to put all of these laws into action. “All the pieces are in place,” Jason Elliott, Governor Newsom’s deputy chief of staff, told the Times. 

• The Legislative Analyst’s Office published an updated budget forecast in October, projecting that the state’s revenue picture could improve by about $9.5 billion for the 2024-25 budget year—leaving the state with a roughly $10 billion budget deficit next year. The LAO cited “less revenue deterioration than expected” in several key categories, including a levelling off of personal income tax volatility and a 10% improvement in stock prices.

• CHC and our affordable housing partners submitted a detailed 2024-25 budget framework to legislative leaders, highlighting the need for a “full suite of investments” to achieve the state’s goal of producing at least one million homes affordable to lower-income Californians over the next decade.

• Last month, CHC submitted a letter of recommendations to TCAC and CDLAC for their next set of regulation changes. Read the letter here.

AFFORDABLE HOUSING NEWS OF THE MONTH

How the 60 housing bills Newsom signed are going to change California (San Francisco Chronicle)

EDITORIAL: California has so many new housing laws. Now let’s put them to use. (Los Angeles Times)

How the carpenters’ union broke the California logjam over new housing laws (Los Angeles Times)

Californians face an insurance crisis. Can they trust the man in charge of fixing it? (San Francisco Chronicle)

Why tiny homes will remain part of California’s homelessness equation for years (CalMatters)

Wealthy Coronado agrees to support more affordable housing after state pressure (Los Angeles Times)

FEDERAL UPDATE FROM DAVID GASSON

What a difference a month makes. Since my last update, Speaker McCarthy advanced a standalone continuing resolution (CR) through November 17^th, which led to a motion to vacate the chair, which resulted in McCarthy becoming the former Speaker. Three tumultuous weeks later the House finally elected relative newcomer Mike Johnson of Louisiana, Speaker of the House. No one could have predicted the drama that led to that series of events and thus, my prediction that no one can predict what the next few months will yield.

We are hearing a lot of talk about a tax bill and have been working to both build support for the Affordable Housing Credit Improvement Act (AHCIA) and mobilize our supporters to tell leadership and the tax committee chairs the LIHTC must be included in any tax bill. There is talk about attaching a tax package onto the November 17^th CR, an idea that is feasible but difficult as we are not sure the new Speaker has even had a conversation with W&M Chairman Smith about tax. The Speaker is just beginning internal discussions on the CR and has yet to engage his counterparts in the Senate. It is likely he will propose budget cuts and potentially policy riders which will not fly in the Senate. The potential for a shutdown is real and all of this while the House and Senate continue to work on individual appropriations bills and the issue of supplemental funding for Israel, Ukraine, and the border.

As to what we are pushing, we continue to advocate for restoration of the expired 12.5% 9% allocation which would fall into the expired tax provision bucket, reduction of the 50% test to 25%, and the basis boosts for bond deals and rural developments. With so much in play we would take a combination of these but have emphasized with the folks that matter the significance of each. The activity on this may be fast and furious and you should already be reaching out to your Members of Congress on Ways and Means to urge inclusion of the LIHTC in any tax bill.

CHC MEMBER SPOTLIGHT

CHC Member: Linc Housing

Project Name: Equa

Location: La Puente, California

Units: 81 units (30-70% AMI, permanent supportive housing)

Opening Date: 2023

State & Federal Financing Sources: 

• No Place Like Home
• Tax Credit Equity
• Rental Assistance Vouchers

Equa is named as a tribute to both the area's equestrian heritage and Linc's commitment to helping build a more equitable society. The six-story building has 40 one-bedroom, 20 two-bedroom, and 20 three-bedroom apartments, as well as a three-bedroom manager’s unit. Thirty-four of the new homes are for people who have experienced homelessness, while the remainder are for low-income households earning 30-70% of the area median income. The central community area on the ground floor includes a computer lab and flexible space for cooking classes, after-school programs, events, and relaxation. Thirteen apartments are accessible for individuals with mobility or sensory impairments.

"This new affordable and supportive housing development by LINC Housing directly responds to LA County's homelessness emergency," said Los Angeles County Supervisor Hilda L. Solis, First District. "This new apartment community provides a safe place to call home for low-income and unhoused residents. I am grateful for the compassion Avocado Heights residents have demonstrated with this development and hope that other communities can open their hearts to increase our housing supply."