California will launch a $ 1.75 billion fund on Thursday, which could help produce more than 7,000 new homes across the state. This is the latest attempt by Governor Gavin Newsom to tackle the crisis of affordable housing and the homeless.
The new California Housing Accelerator Fund is for affordable housing projects that are almost ready to undertake but are stuck because they haven’t been able to raise enough money. Housing officials expect accelerators to support 90 excavator-enabled projects by the end of the year, creating 6,300-7,200 units of low-income housing. This includes 1,200 units for homeless people. The beneficiary has not yet been selected, but the Bay Area will definitely get some of the money.
“The California Housing Accelerator aims to accelerate these projects,” said Lourdes Castro Ramírez, secretary of the California Business, Consumer Services and Housing Agency. “This investment will provide access to high quality and affordable homes. The type of homes residents need right now.”
Fund funding comes from Newsom’s California Comeback Plan. This is a $ 100 billion economic recovery package aimed at addressing housing and homelessness, wildfire resilience, infrastructure and more. Newsom has made a big promise to California residents this year. $ 12 billion invoice Build homeless homes and support services for those who do not live.
Last week he Extended his home key program — Already invested $ 846 million to build more than 6,000 new homeless homes across California. The state plans to invest an additional $ 2.75 billion in this program over the next two years.
New housing accelerator It covers projects that have secured most of their funding but have not been given the coveted low-income housing tax credit needed to overcome the final hump. These credits, which provide federal tax deductions for affordable home developers, play an important role in financing projects, but not enough to avoid them. Projects that cannot secure highly competitive credit are often declining and unbuilt.
Thursday’s announcement was made in Auckland on the site of one such deadlocked project, FoonLok. The two-stage affordable housing project is part of a large Brooklyn Basin development. A community on the banks of the Auckland Estuely, with affordable housing at a market price of 3,100 and several public parks. Foon Lok West is under construction and is scheduled to open in the fall of 2022, with 130 rental units for low-income households, 26 of which are reserved for homeless residents.
Foon Lok East has not yet secured the tax credits needed to move forward with 124 affordable homes. 38 of them are for homeless people. Matt Franklin, president and CEO of developer MidPen Housing, said the project has been stagnant for two years.
New accelerator funds have the potential to change that.
“We are very excited when we consider the potential of a new fund for high-margin development that meets the needs of the poorest of us,” Franklin said.
The first round of housing accelerators (about $ 1 billion) is currently available and will fund an estimated 40 projects, or 3,200 units. The money should be awarded by early November, said Gustavo Velázquez, director of the California Department of Housing and Community Development. The rest will be abolished by the end of the year.
To qualify for housing accelerator funding, the project must be ready to begin construction within six months of receiving the award.
It was a blessing when state housing officials and parliamentarians gathered at Hoonrock’s site on Thursday against the backdrop of construction machinery.
“Oakland is a great morning,” Velázquez said. “It’s a great week across the state.”
The announcement of the new fund will come shortly after Newsom Remember the election victory..
That alone is not enough for the $ 1.75 billion Housing Accelerator Fund alone. According to Velázquez, the state needs about $ 3.5 billion to support all California projects that are funded by HCD but don’t have the tax credits needed to move forward.
To solve this problem, the federal government needs to make tax credits available for more projects, Velázquez said. A group of federal lawmakers have proposed measures to expand the tax credit program by increasing each state’s quota.
Meanwhile, in Thursday’s announcement, home advocates agreed that the new fund was a good start.
“This is an important step towards the transformation of our community, where no one is homeless. It’s where everyone belongs,” said Amie Fishman, Secretary-General of the Northern California Nonprofit Housing Association. Mr. says. “And all Californians are proud of how we care for each other and for all our communities.”
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