With the state facing a $27 billion deficit, Gov. Gavin Newsom is considering cuts totaling $1 billion to several housing programs aimed toward funding and preserving existing inexpensive housing.
“There are components of our housing strategy where we are making adjustments, but the core mission remains firm,” Newsom said during a news conference to announce his proposed budget on Friday.
Here are the housing programs Newsom sees possible cuts to:
– Elimination of the multifamily housing program, including the remaining $75 million in 2023-24 for that program and $250 million in proposed funds that will provide low-interest loans for the development of low-income housing.
– Cut funding for the Homeless Housing, Support and Prevention Grant Program from $1 billion to $740 million. Cities and districts use the subsidies to construct permanently inexpensive housing and temporary transitional housing.
– End Housing Preservation Foreclosure Intervention Program, a program launched in 2021 that provided loans and grants to nonprofits and community land trusts to buy foreclosed properties. The budget called for $500 million through June 2027, but Newsom froze this system in January 2024 before the cash could even be spent.
– Termination of the Adaptive Reuse Program – renamed to Funding program for infill infrastructure – was founded in 2022 in response to excitement about potential office-to-residential conversions. The program was initially funded at $400 million to supply grants for projects to adapt and rehabilitate unused business buildings.
Despite cutting several recent housing programs, Newsom reiterated the state's commitment to fighting homelessness – particularly through the extra $6.4 billion to be generated by Proposition 1, approved by voters in March to extend the variety of treatment beds and supportive accommodation facilities.
“There is more investment in homeless housing than ever before,” Newsom said.
image credit : www.mercurynews.com