There are no easy solutions to California’s budget problems, but some proposed fixes could wind up deepening our state’s crisis. One key element in Governor Brown’s budget proposal is the elimination of Redevelopment Agencies across the state. While there are many political and practical reasons to consolidate redevelopment work, affordable housing development would suffer tremendous losses – in terms of dollars, housing units and jobs. Redevelopment agencies are required to set aside 20% of their funds for affordable housing development. This amounts to hundreds of millions of dollars a year for the construction of affordable rental housing throughout California, making the California Dream a possibility for thousands of low-income families in our state.

A recent survey by the California Housing Partnership Corporation estimates that if these cuts are approved, California’s affordable housing pipeline (projects currently under development) could lose $616 million already invested, as well as over 13,000 construction jobs. California State Senator Mark DeSaulnier has proposed a compromise through which the state could distribute affordable housing funds to cities and counties via Councils of Government (COGs) and Regional Transportation Planning Agencies. Redevelopment agencies would still disappear, saving significant state dollars, but essential affordable housing funding would be preserved.  Opportunity Fund strongly supports this compromise.

In San Jose alone (a statewide leader in affordable housing development), at least 8 projects with a total of 750 housing units for working families and seniors may never be built. Investing in affordable housing makes economic sense – it creates jobs, provides a safe place for California’s children to live,  and improves neighborhoods with attractive and mixed-use developments. Last week, the California Assembly voted against elimination of Redevelopment Agencies, in large part due to the huge damage it would do to affordable housing.  We hope that our legislators take a good look at Senator DeSaulnier’s proposed compromise on this important issue of great fiscal and social consequence for the future of California.

If you support Senator DeSaulnier’s proposed compromise, you can sign a letter of support by clicking here.