California Budget Invests in Affordable Housing and Project HomeKey
On Monday, June 29, Gov. Gavin Newsom signed the 2020 Budget Act for the State of California. The $202.1 billion budget includes critical investments in affordable housing and addressing homelessness, including:
- $500 million in state Low-Income Housing Tax Credits (LIHTC) and an exemption for LIHTC from the State’s new tax credit restriction
- $550 million of the state's direct allocation of federal Coronavirus Relief Fund (CRF) for Project Homekey—a statewide effort to acquire hotels, motels, residential care facilities, and other housing that can be converted and rehabilitated to provide permanent housing for persons experiencing homelessness, and who are also at risk of Covid-19, plus an additional $50 million dedicated for Project HomeKey operating subsidies
- $300 million in general fund appropriations for addressing homelessness to counties, large cities, and Continuums of Care
- $331 million from the National Mortgage Settlement funds for housing counseling, mortgage assistance and renter legal aid services
Notably, the budget does not provide dedicated funding for rental assistance, despite the growing need for financial support. Without financial relief, an estimated 2.9 million California households may face eviction when the Judicial Council ends its emergency rule suspending evictions during the Covid-19 pandemic.