Bill would protect California’s affordable housing funding

“The penalty is counterproductive and makes absolutely no sense,” said Becker. “Cities and counties should be on the hook for compliance, but affordable homes should not be used as a bargaining chip.”

The legislation, Senate Bill 1094, is timely as Bay Area cities will need to submit their plans — called housing elements — by the beginning of next year. The plans will need to indicate where cities intend to permit housing over the next eight years. And this year’s allocations are not only much larger than they have ever been, but state officials will be scrutinizing the plans to ensure viability in ways they have not done in past cycles.

Becker’s office pointed to several cities that were required to submit plans earlier this year, ahead of Bay Area jurisdictions, in which housing elements have been determined to be out of compliance by the state Department of Housing and Community Development.

Notably, the housing element for the city of Los Angeles was rejected last month. Under current law, nonprofit affordable housing developers there could lose access to millions in funding. Becker’s office notes Bay Area cities “may face similar challenges coming into compliance.”

Becker’s bill also tackles other potentially problematic nuances within RHNA laws. Housing options unable to be counted as traditional units generally are not counted with allocations. That means cities do not receive credit for interim housing for people experiencing homelessness or partnerships with home sharing programs. The law addresses the issue by allowing cities to have their allocations reduced by 25% in exchange for funding such programs.

“Rapid, cost-efficient and flexible interim solutions to bring people indoors sooner are important tools on the spectrum of housing,” said Joanne Price, a vice president at LifeMoves, a nonprofit that operates several facilities on the Peninsula for people transitioning from homelessness.

As an additional substitute to building more housing, Becker’s bill would also allow cities to receive credit for converting existing housing stock to below-market rate. City councilmembers in both Burlingame and South San Francisco have recently expressed frustration that RHNA obligations do not take into account the “preservation” of housing that has naturally fallen below median prices for the area.

In those situations, tenants can be at risk of displacement if landlords sell the property, conduct major renovations or for other reasons raise rents. Traditional deed-restricted affordable housing can also require preservation, as deed restrictions that keep units below-market rate and available only to people earning below certain thresholds typically expire after 55 years or less.

RHNA laws require certain amounts of below-market rate housing be built for various income brackets. Becker’s bill could allow not only newly constructed units but also those converted from market rate to count toward the obligations.

The bill will still need to pass the Senate and Assembly and receive the governor’s sign-off before becoming law.

corey@smdailyjournal.com

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