Affordable Housing Tax Credit Bill Passes Assembly

Affordable Housing Tax Credit Bill Passes Assembly

 

June 4, 2015

Contact:  Judson True, Office of Assemblymember David Chiu

judson.true@asm.ca.gov, (916) 319-2017

 

Affordable Housing Tax Credit Bill Passes Assembly

 

SACRAMENTO – The California State Assembly today voted 78-0 to pass Assembly Bill 35, which is jointly authored by Assemblymember David Chiu (D-San Francisco) and Speaker Toni Atkins (D-San Diego). The bill increases the amount of state low income housing tax credits by $300 million and will also leverage an estimated $600 million in federal funds that would otherwise not come to California.

 

AB 35 is part of a package of bills offered by Assembly Democrats to build more affordable housing in California.

 

“Fixing California’s housing crisis also means better outcomes for health, education and public safety, and it also helps businesses recruit and retain employees, said Speaker Toni G. Atkins (D-San Diego). “By expanding the low income housing tax credit, AB 35 will generate more investment in housing, and it’s a key part of the multi-pronged approach we should be taking.”

 

“An additional $300 million in low-income housing tax credits will help ease the pressure of our state’s affordable housing crisis,” said Assemblymember Chiu. “California’s affordable housing stock is rapidly deteriorating and disappearing when the need is at an all-time high, and this tax credit will help us draw down federal dollars to develop and rebuild our communities. I look forward to working with my colleagues in the Senate to move this important policy forward.”

 

“The Assembly’s bipartisan passage of AB 35 today is an indicator of the Legislature’s commitment to encourage greater public-private investment in the production of affordable homes for California’s lowest income families and seniors.  I particularly applaud the Speaker and Assemblymember Chiu for their leadership on this bill and the Republican co-authors and supporters who put aside the usual partisan divide to vote to invest in creating more jobs and homes to support California’s economy,” said Matt Schwartz, President and CEO of California Housing Partnership.

 

“AB 35 will provide a tremendous boost to the production of much-needed affordable homes across our state. We appreciate very much the leadership of Speaker Atkins and Assemblymember Chiu on this important measure. The state’s Low-Income Housing Tax Credit attracts private capital to help finance affordable homes in a highly cost-effective and efficient manner,” said Michael Lane, Policy Director of the Non-Profit Housing Association of Northern California. “AB 35 will make this key public-private partnership even more powerful and impactful.”

 

“With critical state investment at record lows, we have missed the opportunity to construct thousands of additional new affordable homes.  California’s local governments and builders anxiously await AB 35’s passage in the State Senate and Governor Brown’s signature to break ground on shovel-ready developments throughout the state,” said Ray Pearl, Executive Director of the California Housing Consortium.

In addition to the $300 million tax credit investment in AB 35, the affordable housing plan from Assembly Democrats also includes:

  • Establishing a permanent source of funding for affordable housing by placing a small fee on real estate transaction documents, excluding home sales.
  • Legislation to create a framework for how California will spend any funds received from the National Housing Trust Fund that are expected to flow to states in 2016.
  • Using a portion of the Proposition 47 funds to reduce recidivism through investment in rapid rehousing and housing supports for formerly incarcerated Californians.

 

AB 35 is now headed to the Senate.

 

Assemblymember David Chiu (D – San Francisco) is the Assistant Speaker Pro Tempore of the California State Assembly and represents the 17th Assembly District, which encompasses the eastern portion of San Francisco.

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Sarah Gudernatch