Governor Signs Bill to Reform Affordable Housing Production

Oakland, CA –Governor Gavin Newsom today signed AB 179, the housing trailer bill, which makes several reforms to make it easier and faster to build affordable homes in California. The bill modernizes the state’s housing finance system by creating a one-stop-shop for state housing dollars and reducing impact fees, saving an estimated $60-70,000 per unit in costs. Additionally, the bill continues the Housing Homeless Assistance and Prevention Program (HHAP) paired with accountability measures to make sure that counties and cities achieve real reductions in street homelessness. This builds on work over the last decade to streamline housing production and address homelessness. 

In addition to these reforms, the recently adopted State Budget includes $900 million for the HHAP program, and $700 million for housing finance to build needed affordable housing throughout California. This November, California voters will also be asked to consider an $11.25 billion Veterans and Affordable Housing Bond, to help continue this investment for future years. 

“I am grateful for Governor Newsom’s transformative leadership on housing and homelessness.” said Senator Jesse Arreguin (D-Oakland), Chairman of the Senate Housing Committee, who attended today’s bill signing. “This bill creates historic reforms to make sure we get affordable housing built faster, cut down the costs of building, and help reduce street homelessness. California is once again showing the rest of the country how we can address the twin crises of affordability and homelessness.” 

Tackling affordability and getting individuals experiencing homelessness off the streets and into stable housing requires the efficient deployment of the state’s resources. The creation of the California Housing and Homelessness Agency will help streamline programs, improve coordination, and better serve communities across California.