Funding Affordable Housing in California: A 40 Year Challenge
I have worked at CCH for 38 years and the state of California has always had a hard time finding a dedicated source of funding to pay for desperately needed affordable housing. Historically the solution has been to pass a one-time bond measure which establishes a large pot of money which may last 2-3 years and then runs dry.
This was the case in 2006 when California passed Measure C, a $3 billion bond measure to fund housing. CCH used those funds, but alas they ran out in 2009. The challenge has always been, “How do we fund housing with a permanent and renewable source which never runs dry?”
The answer to that question is now in front of us and goes by the name, “Senate Bill 2: The Building Homes and Jobs Act.” (Authored by Senator Atkins and supported by 14 other Senators) The act establishes a $75 fee on real estate transaction documents, excluding residential and commercial property sales. These funds will help build safe and affordable apartments and single-family homes for Californians in need, including families, seniors, veterans, people with disabilities, and people experiencing homelessness. This additional home development is expected to create 29,000 jobs annually for every $500 million spent on affordable housing, primarily in the construction sector. If (make that when) this bill passes, we will have made a huge dent of this 40 year old problem – A permanent source for affordable housing. CCH encourages you to call your state senator and urge a yes vote on this pending Senate Bill 2 (SB2).
California’s seniors will thank you!
Don Stump, President/CEO