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Home > News > News Articles > 2020 > January > Housing: League analysis of the 2020-21 Proposed State Budget
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Housing: League analysis of the 2020-21 Proposed State Budget

January 17, 2020
The Governor’s 2020-21 State Budget proposal contains minimal new funding to spur housing production in California. However, it does outline numerous policy changes and reforms the Governor would like to pursue this year. These include:
  • Revamping the next Regional Housing Needs Allocation (RHNA) cycle to promote and streamline housing development. This new process will provide more ambitious housing goals for cities.
  • $10 million annually for the next three years to continue to pursue policy changes that support housing production as well as hold local jurisdictions accountable to remove barriers to more housing production in the state.
  • Working with the Legislature on additional actions to expedite housing production, including changes to local zoning and permitting processes, as well as adding predictability and reducing the costs of development fees.
  • Changes made in the 2019-20 budget to streamline the creation of Enhanced Infrastructure Financing Districts (EIFD) to fund housing and infrastructure projects. However, the EIFD tool remains difficult for cities to initiate without further cleanup of the law in addition to significant bolstering of tax increment financing.

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