Breaking News — Legislature Reaches Budget Agreement
|
|
On Wednesday, the Legislature released its joint budget plan, building on the Governor’s May Revise and the Assembly and Senate’s individual budget proposals. This proposal will still need to be reconciled with the Governor’s May Revise proposal. By State law, the Governor has twelve working days to sign the budget bill after it is passed by June 15th. State leaders have pledged to keep negotiating with Governor Newsom to reach an agreement by July 1, the start of the new fiscal year.
The biggest difference between the Legislature’s and the Governor’s plan is how to help taxpayers keep up with rising gas prices. The Legislature prefers to send $200 checks to taxpayers and their dependents with up to $250,000 annual income for joint filers and $125,000 for single filers, while the Governor’s proposal would send up to $800 checks to people who own cars — $400 per vehicle with a limit of two cars per person.
Read more about the Legislature’s housing and homelessness proposals here.
|
|
ICYMI—Governor Releases May Budget Revise
|
|
On May 12th, Governor Newsom released his May Revise, which updates his January budget message and takes into account the latest revenue projections. The Governor announced an unprecedented $97.5 billion surplus, which he proposes to use for largely one-time projects and programs. The total budget for FY 2022-23 is a record $300 billion. Due to spending limits, a large part of the surplus must be directed to education and other dedicated funds, leaving around $49 billion that can be directed to other program priorities.
This updated proposal has been forwarded to the Legislature, which is now holding budget hearings and is required to present a budget package to the Governor on or before midnight on June 15th. By State law, the Governor has twelve working days to sign the budget bill. The bill becomes law upon his signature.
|
|
Senate Leader Atkins Unveils Details on Homeownership Plan
|
|
Last month, Senate Pro Tempore Toni Atkins released details of the California Dream Home Plan, which would provide down payment assistance to first-time homebuyers, providing 17% towards the total purchase price. The plan seeks to help families, particularly first-generation homebuyers and families of color who have much lower homeownership rates. This plan is included in the Legislature’s recently-released budget plan.
Under the program, the state will partner annually with approximately 8,000 first-time homebuyers in a shared appreciation agreement which results in homebuyers being able to purchase a home with a low down payment and with more than a 1/3 reduction in monthly mortgage payments, saving a typical homebuyer more than $12,000 per year.
The Legislature’s budget plan includes $1 billion in revolving revenue bonds per year for ten years to generate funds for the shared appreciation plan. The bond principal will be repaid once homebuyers sell or refinance the house and the funds are recycled to help future homebuyers. The budget includes $50 million in 2022-23 and $150 million per year ongoing after that for administrative costs and interest costs of the revenue bonds.
|
|
Legislative Update and Bill Highlights
|
|
May 27th was the last day for bills to pass out of their house of origin, with a significant number of key bills moving forward. Bills will now be heard in the other house, with a deadline of August 31st for bills to pass and move on to the Governor’s desk. Two key bills we are following are:
AB 1721 (Rodriguez, AD 52 Pomona)— This bill would establish the Seismic Retrofitting Program for Soft Story Multifamily Housing, with an annual appropriation of $400 million. The program would provide funding to owners of soft-story multifamily housing that is at risk in the event of an earthquake. Soft-story apartment buildings are those where at the ground level there are large openings, commonly for parking or commercial uses, and where shear walls have not been constructed. According to the Structural Engineers Association of California and the California Seismic Safety Commission, there are an estimated 100,000 soft-story apartment buildings throughout the State, housing as many as 2.5 million people.
The bill specifies that program funds will be prioritized in communities with high social vulnerability, and for those apartment structures that serve lower- and moderate-income housing in areas of high seismic activity or vulnerability.
The bill is currently in the Assembly.
SB 1338 (Umberg, SD 34 Santa Ana, and Eggman, SD 5 Stockton)—This bill would enact the Community Assistance, Recovery, and Empowerment (CARE) Act, which is a key component of the Governor’s homeless response package. The Governor’s budget proposal would allocate $65 million in FY 2022-23 to kick-start this program.
The CARE Act would create a new mental health arm in California’s civil courts that would allow individuals experiencing a severe mental health disorder who cannot make sound decisions for themselves to appear before a superior court judge who can require that the county provide services. And if the person isn’t cooperative with the care plan, they could face additional court hearings and possible conservatorship. Each person who is engaged with the CARE court would be assigned a public defender and a supporter who will help them navigate the process and advocate for themselves.
The bill, which is now in the Assembly, faces serious opposition from civil and disability rights advocates. In addition, concerns have been raised by local governments and behavioral health providers around adequate funding to sustain the CARE courts and the availability of qualified workers to provide the support each person would be entitled to receive.
|
|
CZI Releases New California Dream Narrative Toolkit
|
|
The Chan Zuckerberg Initiative (CZI) released its Toolkit Website, a great new tool that lays out a comprehensive communications strategy around affordable housing. The Toolkit was informed by data and research conducted over the past few years. Coined the “California Dream Narrative,” the website offers practical tools that advocates can use to message affordable housing. Tools include message templates, media releases, and op-ed blog post examples. CZI will offer a series of webinars later in the year that will dive deep into successful communication strategies and help participants learn how to apply them to different audiences. Check the Toolkit out here!
|
|
National Equity Atlas Report Highlights Disparities
|
|
The National Equity Atlas released a report called the Shrinking Geography of Opportunity in Metro America, detailing the ongoing challenges of structural racism and housing inequity in the country and the resulting uneven opportunity for families of color. The report follows an analysis of the San Francisco Bay Area and looks at the largest 100 metros to determine how neighborhood affordability differs for lower-income families across metro areas, how it differs for families of color across these metros, and whether their “geography of opportunity” shrinks over time.
Key findings in the report include:
- There is a shrinking geography of opportunity for working-class households
- Black and Latinx families have the fewest affordable housing choices
- Black households saw the steepest declines in affordable neighborhoods prior to the pandemic
- The majority of the homes that Black, Latinx, and other low-income families can afford are located in lower opportunity neighborhoods
The report contains several areas for policy action, including working to keep renters from being displaced through stronger and ongoing eviction protections and rental assistance programs, expanding affordability in high-opportunity neighborhoods and areas where neighborhoods are gentrifying, investing in neighborhoods where working-class renters of color live now, and improving the quality of neighborhoods where housing is already affordable.
|
|
Come join our team! LeSar Development Consultants is growing, and we are looking for talented and motivated team members to join our diverse team. Please help us reach a wide group of candidates by sharing with your networks and social media channels. Find more information about these positions on our Careers Page.
|
|
|
|
|
|
|