Bond measure would bring much-needed funding to affordable and supportive housing programs

Lawmakers are debating a measure that would provide $10 billion in bonds for affordable and supportive housing programs. The League of California Cities is in strong support of the measure and is urging members to voice their support by calling or writing to their elected representatives.

If passed, AB 1657 (Wicks) would be placed on the March 2024 ballot. The measure would provide funding for several underfunded state programs, including rental housing, homeownership, and supportive housing programs.

“We can’t take our foot off the gas when it comes to our state’s affordable housing investments,” Asm. Wicks said in a statement. “Now is the time to double down on our commitment to solving California’s housing shortage. Even in a tight fiscal climate, the staggering need demands that we treat the crisis with the urgency it deserves.”

The proposed funding comes at a critical time. The economy has slowed, inflation remains stubbornly high, and forecasters are warning of a possible recession. More people than ever are at risk of becoming homeless. Seven in ten Californians view housing affordability as one of the top problems in their community.

The state’s flagship multifamily affordable housing program was oversubscribed ten to one during the last round of applications.

Local leaders, developers, housing advocates, and many lawmakers consistently cite a lack of funding as a major barrier to affordable housing. In a recent statewide survey by Cal Cities, city leaders cited limited supportive housing options and lack of ongoing funding as the top two barriers to preventing and reducing homelessness.

Since last year, Cal Cities has called on the Legislature and Gov. Gavin Newsom to include a $3 billion annual investment in the 2023-24 State Budget to help cities reduce homelessness and spur the development of affordable housing.

The Governor’s May Revision took the opposite approach and proposed $712.5 million in cuts and delays of essential funding that would help jumpstart housing production.