The California Strategic Growth Plan
Housing

California has had high housing prices for many years and lags the nation in affordability. Restrictions on land available for development and additional costs imposed by government are the primary reasons for high prices. This has led to a chronic undersupply of housing affordable to most Californians. State bond funding, tax credits and redevelopment funds are used to help create additional housing, primarily for low-income Californians.

Proposition 1C, adopted by the voters in November 2006, provides $2.85 billion for housing-related programs.

  • Affordable housing loans and grants-$1.4 billion. This funding will provide for multifamily housing ($345 million), homeless youth housing ($50 million), emergency housing ($50 million), supportive housing ($195 million) farm worker housing ($135 million) CalHome ($300 million), down payment assistance ($200 million), and the BEGIN program ($125 million). These are existing programs and funding will start to be allocated from many of them in 2006-07. Over their life these programs are projected to assist in the creation of over 31,000 new housing units and 2,350 shelter spaces.
  • New Housing Incentive Programs-$1.45 billion. This funding will support new programs to provide incentives to permit housing development and to stimulate innovation in housing creation. These programs will require further legislative and administrative program development. The Administration is proposing that these funds be granted on a competitive basis, with priority given to localities that increase housing production over recent trends, produce more affordable housing, and do so with less negative impacts by siting housing near transit and within existing urbanized areas. Several of these programs provide funding for parks and other community infrastructure needed for new housing. These programs will incentivize construction of housing; expected to result in 87,000 additional housing units.
Most of the Proposition 1C funds are available to the Department of Housing and Community Development immediately, without further legislative action. $160 million of awards are expected in 2006-07. The Budget reflects $653 million of awards for these programs in 2007-08.


PROPOSITION 46
 During 2006-07 and 2007-08, the remaining $344.4 million from this $2.1 billion bond are expected to be awarded. This bond has already assisted in the creation or permitting of over 100,000 housing units and will help finance over 30,000 housing units with the remaining funds.

The Administration will continue to support structural changes in planning law, environmental law, redevelopment law, and building standards to facilitate more affordable housing creation in areas close to jobs and developed infrastructure. Structural changes could increase the supply of affordable housing more than the state can through subsidy programs
image of backward arrow image of forward arrow
CHAPTER HIGHLIGHTS for The California Strategic Growth Plan Back to Top

 Public Safety
 K-12 Education
 Higher Education
 Flood Control and Water Supply
 Transportation
 Judicial
 Other Natural Resources
image of black pointing arrowHousing
 Other Public Service
 Accountability
 Affordability
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - The California Strategic Growth Plan (pdf * - 91K) -
Provides this entire The California Strategic Growth Plan Chapter in pdf format.