May Revise Drastically Cuts Housing and Homelessness Funding

The Governor’s May Revise, released on May 10, projected a larger budget shortfall than in January and proposed severe cuts to key housing and homelessness programs that went further than the Governor’s January proposal.

The Newsom administration projects a budget shortfall of nearly $45B, $7B more than projected by the administration in January, which he plans to balance through $30B in ongoing and one-time spending cuts, including a proposal to use $12.2B in rainy-day funds and $900M from a safety net reserve across those two years.

Read the full article for May Revise funding details, reductions, and affected programs >



by Jacqueline Woo

California Legislative Analysis Manager

Global Policy Leadership Academy

Supreme Court Hears Case on Homelessness

On April 22, the Supreme Court heard oral arguments in what could be the most consequential ruling regarding homelessness in decades, City of Grants Pass v. Johnson.

The central question before the court is whether Grant Pass’s laws prohibiting encampments in public spaces, which have led to insurmountable fines and arrests of homeless people, violate the 8th Amendment.

Read the full article to learn more about the arguments and when a decision can be expected >

by Colleen Murphy

Principal, Homelessness Solutions Team

LeSar Development Consultants

Interest Rates and Impact on Housing Production and Homeownership

At the end of 2023, Federal Reserve officials penciled in three interest rate cuts in 2024 as inflation seemed to wane. In general, the Federal Reserve typically utilizes an increase in interest rate as the primary monetary policy tool when inflation is a concern, as it has been over the past 3 years.

Unfortunately, as inflation continues to persist, a rate cut in the future seems unlikely, with Fed Chairman Jerome Powell noting in April that “we don’t like to react to one or two months’ data,” preferring to wait longer to ensure inflation is on a sustainable 2% path.

Read the full article to learn more about the impact of interest rates and additional factors affecting housing affordability and production >



by Craig Adelman

Senior Principal, Housing Team

LeSar Development Consultants

Bay Area and LA County Housing Finance Agency Ballot Measures Move Forward on November Ballot

In April and May, two regional ballot initiatives from California’s two regional housing finance agencies, the Bay Area Housing Finance Authority (BAHFA) and LA County Affordable Housing Solutions Agency (LACAHSA), are marching towards getting on the November 2024 ballot.

The Association of Bay Area Governments (ABAG) Executive Board unanimously approved placing a $20B measure on the November 2024 ballot to fund affordable housing through BAHFA, while LA County’s Measure A initiative, a ½ cent countywide sales tax that would fund homelessness services and LACAHSA programs and initiatives, gathered 410,000 out of the 240,000 signatures required to qualify for the November 2024 ballot. The LA County Board of Supervisors has until August 9 to place the measure on the November ballot. 

Read the full article to learn how funds will be distributed if regional finance agency initiatives are approved >



by Christina Mun

Chief Strategy Officer

LeSar Holdings, Inc.

Report now available: “Social Housing in Vienna: Reflections from Los Angeles Area Housing Leaders”

In May 2023, a delegation of housing leaders from the City and County of Los Angeles traveled to Vienna, Austria, as part of the Global Policy Leadership Academy’s Vienna Social Housing Field Study to gain an immersive education in the history and current practices of social housing in Vienna, one of the most successful examples of affordable urban housing in the world.

The resulting FREE, in-depth report, Social Housing in Vienna: Reflections from Los Angeles Housing Leaders, captures the profound impact of being in Vienna and witnessing its social housing program alongside fellow LA housing leaders.



by Natalie Donlin-Zappella

Director, Partnerships & Climate Practice

Global Policy Leadership Academy