Take Action: The Governor’s May Revise Left Out Housing Investments
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Take Action for Housing Investments
Despite the clear need from voters, State Legislators, and the Governor to address housing affordability and homelessness, the Governor’s May Revise released on May 14 includes no new investments to continue our state’s progress.
Especially with the looming threat of federal cuts, now is not the time to scale back our progress, but double down on it. Affordable housing and homelessness programs must remain a priority in this year’s budget.
Join NPH and our partners in calling on state leaders to invest at least $3.3 billion to help communities stay housed, build affordable homes, and respond to homelessness across California.
Contact State Lawmakers
The next week is absolutely critical for NPH members to advocate for our legislators to prioritize smart, strategic investments in housing production, preservation, and homelessness prevention.
We must all raise our voices right now to secure these investments in the final budget.
Consult and use this comprehensive toolkit from our partners at Enterprise with templates for sending letters and making calls on behalf of your organization to legislative targets.
What is in the Governor’s May Revise?
So far, this year’s budget process is repeating the same script from previous years: threatening to zero out investments in housing and homelessness solutions at exactly the time our solutions are most needed to house our communities.
The Good: Further Aligning Existing Funding Streams in the New State Agency
The Governor’s May Revise contains some technical elements that would further support the launch of the California Housing and Homelessness Agency by moving additional funding streams into the new agency.
The two proposed trailer bills to the state budget which would
- Split off 70% of AHSC funding for housing and move it from the Sustainable Growth Council to the CHHA, leaving 30% at SGC for transit
- Move 50% of private activity bonds from the Treasurer’s purview to the new agency
These trailer bills would join these funding streams with other programs administered by the California Department of Housing and Community Development, bringing CHHA even closer to fulfilling the vision of being a “one-stop shop” for affordable housing providers. NPH is largely supportive of these proposals but only on the condition that housing funding is restored in the budget.
The Bad: Cuts to Housing and Homelessness Prevention Have Not Yet Been Reversed
While the Governor’s initial budget proposal anticipated a deficit, the May Revise reflects positive revenue projections adding nearly $17 billion. Yet the May Revise does not include thoughtful and necessary investments called for by housing and homelessness advocates, including NPH, who have provided lawmakers with a unified funding proposal for the priority housing and homelessness programs our state needs.
The Ugly: Potential Impact in the Bay Area
As we shared in our analysis of the initial January budget proposal, by cutting previously-funded affordable housing programs this budget would mean that next year NPH members would face a drop of over $333 million in funding for the Bay Area than last year.
How do the Recent Changes at CARB affect all of this?
On Friday May 29, the California Air Resources Board (CARB) voted to change important details about how the state’s Cap-and-Invest auctions are done, which will result in serious negative impacts to a number of important climate programs funded by the Greenhouse Gas Reduction Fund (GGRF), like Affordable Housing and Sustainable Communities (AHSC).
Because the legislature still holds the power of the purse, they determine how the GGRF is allocated. The Assembly and the Senate have an opportunity to mitigate these impacts by realigning how these funds are spent. As they negotiate with the Governor over the next two weeks, it’s important that they hear from you about your concern about state funding for affordable housing.
What’s at Stake?
The May Revise continues to emphasize the benefits of streamlining affordable housing financing and development through the new California Housing and Homelessness Agency (CHHA), which NPH has championed and supported. While this structural improvement is a huge victory for increasing the production of affordable housing, this would be like renovating our roads but not buying any buses — to see the benefits of this new structure, lawmakers must provide new resources for CHHA to bring more Californians home.
Across the state, nearly 40,000 shovel-ready affordable homes are waiting on funding to move forward into construction. The May Revise would leave many of these blueprints on the shelf to gather dust, with no clear path to getting funding, even as need increases.
Thank you for taking action with NPH to push our champions in the legislature to step up and fund housing — protecting our progress and helping to make California a place where everyone has a safe and dignified home in order to thrive.