Reiterating that housing affordability remains one of his top priorities in the new year, Gov. Gavin Newsom on Friday unveiled a budget proposal that builds upon last year’s historic housing investments.
After securing an unprecedented $1.75 billion for housing production last year, Newsom this year plans to allocate another $500 million annually for the state’s housing tax credit program — a key source of funding for affordable housing.
During remarks to reporters, most of what Newsom had to say about housing focused on how his office is deploying the money earmarked in last year’s budget — most of which has not been spent yet.
“The good news is the money now will start flowing,” he said.
Funds to help cities and counties build the sewers, roads and other infrastructure needed to support housing development will go out starting this month, and the total $500 million will be allocated by April, he said.
The $500 million Newsom allocated last year for housing construction through low-income tax credits also will go out this year, he said.
The main housing thrust of Newsom’s 2020-21 budget revolves around homelessness, which he called “the issue that defines our times.”
On Wednesday, Newsom announced plans to spend $750 million to build housing for the state’s homeless population, and to help people at risk of homelessness make their rent payments. The fund, called the California Access to Housing and Services Fund, will be administered by the state’s Department of Social Services.
“We have never done this in the past,” Newsom said Friday. we believe this is the first in the nation, state-based housing vehicle of its type. It’s a novel strategy. It’s a new strategy.”
Newsom also signed an executive order requiring state agencies to identify vacant and under-utilized properties that could be turned into shelters for the homeless, and revealed plans to deploy 100 camper trailers across the state to be turned into temporary housing.
Source: Mercury News
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