The League-sponsored measure would create an ongoing, sustainable source of funding for affordable housing construction, and would make the state a long-term funding partner with cities across California to immediately build affordable housing.
The bill would commit $200 million annually to local governments starting in 2020, resulting in tens of thousands of affordable housing units being built statewide. The annual funding would steadily increase with a cap at $2 billion once fully implemented.
“Every city and every California resident is impacted by the state’s growing housing shortage and homeless crisis,” said Carolyn Coleman, executive director, League of California Cities. “In communities throughout the state, cities simply do not have enough affordable housing available for their residents. In order to ensure that we do, we need long-term, sustainable funding to invest in building housing for those that need it most. Cities are proud to support SB 5. It creates a much-needed partnership between the state and local governments, and will build more affordable housing now for hard working Californians.”
In 2011, the state abolished redevelopment agencies, eliminating a major source of funding available for local governments to invest in affordable housing. While SB 5 does not revive redevelopment, it will allow cities and counties access to funding to support the development of housing and infrastructure.
SB 5 gives cities and counties the opportunity to utilize property tax revenues to advance state-approved priority projects. These projects must include infrastructure investments that support affordable housing; promote urban infill development near major transit centers; and reduce greenhouse gas emissions.
Introduced by Sens. Jim Beall, Mike McGuire and Anthony Portantino, SB 5 won bipartisan support in the Senate and is scheduled to go before the Assembly Appropriations Committee on Aug. 30. Contact your Regional Public Affairs Manager
to learn how you can support this effort.