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The United Voice for Affordable Housing 

INDUSTRY INSIGHT MARCH 2024

NOTE FROM THE EXECUTIVE DIRECTOR


15 Years: A Reflection


It was a March day a lot like this one in 2009, when I flew to San Francisco for my first day as CHC’s Executive Director, a position I have been proud to serve in for the last 15 years. CHC was based in the Bay Area at the time, in a shared office, but not everything was different. That day, I met Carol Galante, then the CEO of BRIDGE Housing, who was the first to welcome me into the affordable housing world. She would certainly not be the only brilliant housing leader I would have the good fortune to work with in this job.


I remember Linda Mandolini asking me in those early years what CHC’s “value proposition” should be—especially as we began to think about how to position this organization to shape a policy debate in a Sacramento that didn’t prioritize, or sometimes even recognize, the importance of affordable housing. I told her I hoped the time would come when CHC’s influence would speak for itself to such an extent, we wouldn’t even need to ask the question.


That, I believe, is where we have made it today, and I hope you’ll join me in taking a moment to recognize how far we’ve come.


Our 15 years of working together have never been anything but a group effort, one we started by building a strong and active board of directors, helmed by a series of visionary Chairs and supported by a capable staff whose long tenure gave us a lasting foundation. From the beginning, Nancy Martin has worked diligently to sustain our growth through stellar fundraising and membership. That hard work allowed us to hire Maureen Higgins as our contract lobbyist in Sacramento, who over a decade introduced us to the Capitol and helped increase our reputation. Marina Wiant’s arrival accelerated CHC’s growth, as she built the relationships and expertise that delivered our first in a long line of policy successes.


Today, CHC is recognized as the preeminent, statewide advocate for affordable housing in California—with years of legislative campaigns, ballot measures, and budget wins under our belt.


While other housing organizations do excellent work and are key partners in everything we do, we have defined a distinct place for ourselves in the policy world: CHC stands for the production and preservation of affordable housing. That statement has guided us for more than a decade, informing everything we do, whether it is co-sponsoring legislation, leading successful bond campaigns, or providing technical expertise to CHC members on land use, financing, or other industry issues.


Together, we’ve built a one-of-kind organization with real influence in Sacramento. It has been a privilege to serve for the last 15 years as the leader of this team—to learn from you, to tap into your expertise, and to harness our efforts to build more of the safe, affordable homes Californians need.


Thank you for your partnership. I look forward to many more years to come.


Sincerely,

Ray Pearl

2024 POLICY FORUM

Save the date to join us in-person for networking, interactive policy discussions and a celebration of the

2024 California Housing Hall of Fame honorees.

 

May 16th, 2024, 8:30am-2:00pm

 

Learn more about CHC's California Housing Hall of Fame and submit your nominees today!


Self-select your sponsorship level today or contact Nancy Martin for more information.

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IN CASE YOU MISSED IT

  • We'd like to thank Assemblymember Chris Ward, Chair of Assembly Housing, Assemblymember Juan Carrillo, Chair of Assembly Local Government and Assemblymember Buff Wicks, Chair of Appropriations for speaking with our Board of Directors last month in Sacramento.


  • The state budget picture may be worse than expected, according to a report released this week by the Legislative Analyst’s Office, which says “further weakness” in revenue collections has added $15 billion to the budget shortfall—raising the total budget problem, by the LAO’s calculations, to $73 billion for the coming fiscal year. The Newsom Administration, using a different set of forecasting assumptions, pegged the budget shortfall at $38 billion in January. “All else equal, this means the budget problem is likely to be higher” in the May Revise, the LAO said this week. “No one can say today with certainty how those numbers may change the budget estimate,” H.D. Palmer, spokesperson for the Department of Finance, said in a statement. “A responsible step would be for the Legislature to act now on the early action budget measures needed for $8 billion in solutions to help close this gap.”


  • The state’s borrowing options are also narrowing as state revenues decline, Assembly Speaker Robert Rivas said in a press conference this week. Rivas said the state is likely to be able to take on only $15 billion to $16 billion of additional bond debt this year—on top of the $6.4 billion raised by the passage of Proposition 1 in March—complicating the path forward for AB 1657 (Wicks), the $10 billion affordable housing bond sponsored by CHC. The housing bond is competing with two other bond measures, a $15-plus billion climate bond and $14-plus billion school construction bond. All three measures will need to shrink substantially before they can make their way to the November ballot. Rivas didn’t offer a specific timeline for finalizing the bond proposals, according to Politico, but said a decision has to be made soon if Assembly Democrats are “going to align whatever bonds we decide to move forward with the Senate.”

AFFORDABLE HOUSING NEWS OF THE MONTH

Rivas: Price cap for November bonds is $15B-$16B (PoliticoPro)

 

Los Angeles’ one weird trick to build affordable housing at no public cost (CalMatters)

 

An initiative promised 20,000 homes for mentally ill Californians. It delivered far less. (CalMatters)

 

Elk Grove affordable housing project officially relocated after outcry, lawsuits (Sacramento Bee)

 

California lawmakers seek to short-circuit new income-based utility charges (San Jose Mercury News)

 

Is housing health care? State Medicaid programs increasingly say ‘yes’ (KFF Health News)

 

Feds leave California on the hook for $300 million in COVID homeless spending (CalMatters)

2024 Merritt Scholars Program

Click Here For More Merritt Scholar Info

FEDERAL UPDATE FROM DAVID GASSON

Despite our predictions that 2024 would be singularly focused on the Presidential and congressional elections, there continues to be a significant volume of policy work going on in Washington. Not that some of that is because Congress cannot get out of its own way and, to some, continues to attempt to steal defeat from the jaws of victory.


Let’s begin with the FY 2024 budget. Showing off their ability to boot issues, Congress has again kicked the can down the road and passed two more continuing resolutions, pushing six appropriations bills including HUD to March 8th and the remaining six bills to March 22nd. The first group of bills are considered less controversial, meaning the House Republicans have not attached significant policy riders to those bills. If we are to believe the smoke signals coming out of the Capitol, they may be able to pass those six bills by the March 8th deadline. This would be great news as it would avoid significant cuts to programs and vouchers which will be the result if no budget is passed. By now you know not to count your congressional chickens before they hatch to let’s see what happens. 


The political battle over the final six bills will be more animated. If the Speaker allows the controversial policy riders to remain attached to the appropriations bills, even if they pass the House, they will not pass the Senate which could result in a partial shutdown. If he removes the riders and passes the bills under a suspension of the rules (this means they will limit debate and amendments and must pass with a 2/3 majority of the House) the Speaker’s conservative flank could rebel with one of them making a motion to vacate the chair, meaning calling a vote to remove the Speaker. This is all hypothetical at this point but it goes to the continued tenuous nature of things on the Hill.


On the tax bill, my mood changes on a daily basis and today I am feeling optimistic that an agreement may be reached. After some discussions it appears Senator Crapo may be open to a process that allows Senate Republicans to voice their concerns and offer potential changes to the bill, but not prevent colleagues that support the current legislation from voting so. Of course any changes to the bill would require it to go back to the House for another vote which could be fatal. The best-case scenario is a process is agreed upon that would allow amendments to the bill, all of which were defeated, and the final bill was identical to the House passed version. This is all still up in the air, but some progress is better than none and with tax day getting closer, the urgency to get a process in place is critical.


Stay tuned for more updates on the budgets and tax bill and thank you as always for your advocacy and support.

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