On July 7, 2024, California Governor Gavin Newsom signed into law a sweeping housing affordability bill designed to tackle the state’s escalating housing crisis. The legislation, known as the California Affordable Housing Action Plan, promises to create more affordable housing units, streamline building processes, and provide financial support to low- and middle-income families struggling with soaring housing costs.
The bill’s passage comes in response to the growing disparity between housing supply and demand in California, where rising home prices and rental rates have left many residents unable to find suitable and affordable living arrangements. According to the California Department of Housing and Community Development (HCD), the state has a shortage of more than 3 million housing units, making it one of the most expensive places to live in the U.S.
Governor Newsom, who has prioritized housing reform throughout his tenure, expressed optimism about the bill’s potential impact. “Housing is a fundamental human right, and with this new legislation, we are taking significant steps toward ensuring that every Californian has access to a home they can afford,” Newsom said during the signing ceremony at the California State Capitol.
The bill introduces several key measures aimed at addressing both the supply and affordability challenges faced by the state. One of the central provisions of the legislation is the creation of a $10 billion housing fund, which will be allocated to support the construction of affordable housing projects, particularly in areas where demand far exceeds supply. In addition, the plan includes the creation of affordable housing tax credits, which will encourage private developers to build more affordable units by offering financial incentives.
Key figures in the development of the bill include State Senator Maria Gomez, who authored the legislation, and Assemblymember Mark Harris, who championed the bill in the state assembly. Senator Gomez, who has long advocated for affordable housing initiatives, emphasized the bill’s focus on inclusivity and accessibility. “We are prioritizing the needs of families who have been priced out of their own communities. This plan is about building homes, but it’s also about rebuilding California’s future,” Gomez said.
The bill also includes provisions to streamline the approval process for housing projects by reducing zoning restrictions and expediting environmental reviews for housing developments. This is expected to shorten the timeline for new housing projects, which has historically been delayed due to regulatory hurdles. In addition, the bill directs local governments to allocate more resources to addressing homelessness, with a focus on providing housing first and supporting individuals in need with wraparound services like job training and healthcare.
While the bill has been met with widespread support from housing advocacy groups, some critics argue that it does not go far enough in addressing issues like rent control and the need for more significant protections for renters. The California Renters Union expressed concern that the bill places too much reliance on private developers, which they argue might not lead to truly affordable housing options for vulnerable populations.
Despite these concerns, the California Affordable Housing Action Plan is a bold step forward in the fight against housing inequality. As the state works to implement these measures, it remains to be seen whether the ambitious goals set forth in the legislation can effectively address California’s housing shortage and provide long-term solutions for its residents.
