Housing advocates and local officials gathered in Oakland last week to discuss guidelines for California’s new Affordable Housing and Sustainable Communities Program (AHSC). It was one of three packed meetings held throughout the state by the Strategic Growth Council (SGC), the state agency that oversees the AHSC, to gather input on the new program’s guidelines.
The ASHC was created to reduce greenhouse gas emissions (GHGs) by fostering the development of affordable housing near transit hubs, as well as improvements to transit, bike, and pedestrian infrastructure in those areas to provide low-emission alternatives to driving. A funding stream for the program was created through a late-hour deal last month between Governor Jerry Brown and state legislators which provided $130 million in revenue from CA’s cap-and-trade program.
The $130 million, however, is a drop in the bucket for California’s affordable housing funding needs. Despite growing demand, revenue for housing subsidies was slashed heavily in recent years after Governor Brown dissolved redevelopment agencies and federal sources of affordable housing funds dried up.
If the legislature sticks to its budget bill plan, the AHSC will receive 20 percent of future cap-and-trade funds each year. This is projected to be between $600 million and $1 billion per year over the next five years, according to estimates by the Legislative Analyst’s Office.