Housing Funding Bill Passes State Assembly

The California Assembly Appropriations Committee voted unanimously Tuesday to approve a bill that increases access to funding for housing projects.   

Assemblyman Rich Gordon, who resides in unincorporated Menlo Park, authored AB 532, which is on its way to the Senate.

The bill would make millions of dollars available to public and private entities that operate housing trusts, which address local housing needs. Notably, the legislation contains an urgency statute, which is fast tracking it. The bill was read for the first time on February 20, 2013, according to leginfo.legislature.ca.gov.

“The recession and the elimination of Redevelopment Agencies have only exacerbated concerns over access to affordable housing throughout our state,” Gordon said. “Maximizing and leveraging existing funds to meet housing needs across the state will help ensure housing is available to thousands of Californians,” he said.

The money is from Proposition 1C, according to Margot Grant, communications director for Gordon. California voters passed it in 2006, providing $2.1 billion in bond money to fund state housing programs. As of January 2013, $8.8 million of the funds remained available for newly formed local housing trust fund programs, according to Grant.

The bill would provide an avenue through which public and private agencies can double their dollars, as it would allow the state to match funds they’ve allocated for new housing projects. Cities can apply for funding.

To be eligible, the city must have adopted a housing element that is in compliance with all state laws, according to the text of the bill. The City of Menlo Park is in the process of bringing its housing element into compliance.

If two-thirds of the Senate approve the bill and the Governor signs it, it would be effective immediately, triggering a Notice of Funding Availability.

The minimum allocation would be $500,000 and the maximum allocation would be $1,000,000 per applicant. The money can be used to acquire, construct, plan for or rehabilitate homes. At least 30 percent of the money issued must be spent on projects for extremely low-income households, according to the bill.

Other interesting sections of the bill declare that $25,000,000 is available to the Affordable Housing Revolving Development and Acquisition Program, $35,000,000 is available to “a local housing trust fund grant matching program,” and $10,000,000 is available to the Innovative Homeownership Program, according to the version of the bill dated May 25, 2013.  This amendment does not change those programs.  

Rich Gordon represents the 24th Assembly District, which encompasses Menlo Park, Atherton, East Palo Alto, North Fair Oaks, Woodside, Portola Valley, Palo Alto, Los Altos, Los Altos Hills, Mountain View, Sunnyvale, party of Cupertino, and the Coastside from Santa Cruz County to El Granada.

Editor's note: This article was originally published May 29, 2013. It was edited on June 3 for clarity.