California Apartment Association

The California Apartment Association applauds a proposal unveiled by state lawmakers this week to help families struggling to keep up with rising rents.

The plan, announced Monday by members of the Democratic Assembly Caucus, would dedicate more than $1.3 billion to address the state’s housing affordability crisis.

While California has seen explosive job growth, state and local governments have failed to allow enough new housing to accommodate the influx of new workers.

As the resulting housing shortage led to higher rental prices, state and federal funding to develop and preserve of affordable homes has plummeted by 79 percent.

The result is a $1.7 billion per year loss in state startup money that leverages federal matching dollars and private loans necessary to make affordable developments feasible.

While other critical state programs cut during the Great Recession have since been restored, affordable housing funds are not among them. When housing costs are factored in, California has the highest poverty rate in the nation.

Making sure California’s teachers, nurses and public safety workers can afford housing will take creative solutions from policymakers, said Tom Bannon, chief executive officer of CAA.

“Housing is essential to social harmony, family health and the economic vibrancy of our state,” Bannon said. “California’s public investment in housing — especially for working families, seniors and those experiencing a hardship by no fault of their own is not only socially responsible but addresses the state’s biggest impediment to growth and prosperity.”

The Assembly Democrats’ plan represents a one-time budget investment in five priority areas to meet the range of housing needs for working, lower-income families and Californians who are homeless or at risk of becoming homeless:

• Rental housing for lower income working families.
• Homeownership opportunities and rental housing for working families.
• Affordable housing for rural California, including for farmworkers and their families.
• Seismic retrofitting of “soft-story” homes.
• Housing assistance and production for homeless individuals and their families.

Click here to review a letter with a full breakdown of the spending proposal.

“California’s housing affordability crisis tarnishes the promise of our great state, exacerbating traffic congestion, climate change and income inequality,” said Assemblyman David Chiu, D-San Francisco. “As chair of the Assembly Housing Committee, I am proud to work with my colleagues to prioritize a comprehensive approach that will help Californians who are homeless, struggling to pay the rent, and trying to buy their first home.”

Bannon added that while CAA supports the proposal, it’s important that policymakers remain focused on the root cause of the housing crisis — government obstacles to private residential construction.

“The housing crisis is like a roof riddled with holes during a rainstorm,” he said. “Placing buckets on the floor will catch the water for a while. But if you want to prevent a flood, you eventually need to repair the leaks.”

Related content:

• Assembly Democrats seek $1.3 billion boost for affordable housing (Sacramento Bee, April 25)