T
he
California Housing Partnership
released new
reports
today in collaboration with local and regional housing organizations that document the deteriorating conditions facing low-income renters in five
Southern California counties
-
and
San Diego
- and recommend policy solutions to State and local elected leaders.
"These reports make clear that the housing crisis is bigger than any single community and no matter how hard local governments and their citizens work to address the crisis they need help from the State and Federal governments," said Matt Schwartz, President and CEO of the California Housing Partnership. Schwartz adds:
"Which is why we need the State to provide critical missing tools by (1) replacing Redevelopment funding the State took away in 2012; and (2) lowering the voter threshold for passing local affordable housing measures from two-thirds to 55% as was done for education in 2000."
Report highlights include:
- There is a need for 895,407 more affordable homes in these five Southern California Counties.
- All five counties lost more than 70% of their State and Federal funding since 2008. Collectively, this amounts to a loss of more than $1 billion in annual Federal and State funding, the largest part of which was the loss of State Redevelopment affordable housing funding in 2012.
- Riverside County lost 86% (nearly $159 million annually) in State and Federal funding since 2008.
- San Bernardino County lost 84% (more than $130 million annually) in Federal and State funding since 2008.
- San Diego County lost 76% (more than $134 million annually) in Federal and State funding since 2008.
- Orange County lost 75% (nearly $115 million annually) in Federal and State funding since 2008.
- Los Angeles County lost 70% ($496 million annually) in Federal and State funding since 2008.
- Even with significant recent increases, minimum-wage earners are still priced out of Southern California housing markets:
- In Los Angeles and Orange Counties, workers must make 3.6 times the local minimum wage to afford current asking rents.
- In San Diego County, workers must make 3.2 times the local minimum wage to afford current asking rents.
- In San Bernardino County, workers must make 2.7 times the minimum wage to afford current asking rents.
- In Riverside County, workers must make 2.5 times the minimum wage to afford current asking rents.
In order to make substantial progress towards addressing this crisis, the reports recommend State leaders take the following actions:
- Replace Redevelopment funding for affordable housing with at least $1 billion annually to help local governments meet their State-mandated production goals.
- Expand the State's Low Income Housing Tax Credit Program by $500 million per year to jumpstart affordable housing production and preservation.
- Create a new California capital gains tax credit to preserve existing affordable housing at risk of conversion and to fight displacement pressures in Opportunity Zones.
- Reduce the threshold for voter approval of local funding of affordable housing and infrastructure from 67% to 55% as was done for educational facilities in 2000.
The reports also offer policy recommendations for local and regional leaders.
