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The Sacramento Update
THE SACRAMENTO UPDATE
The New Year is Off and Running!
By Kate Bell, Kate Bell Strategies
IState Budget and Rental Assistance Update
n light of the state’s recent projections of tax receipts, the state is facing an unprecedented budget surplus in 2022. The Governor has finished his 2021-22 budget, which has been scheduled for official released on or around January 10, 2022.
Speaking of additional money, on November 30, 2021, the state applied to the U.S. Department of Treasury for $1.9 billion of additional rental
assistance funds from previously designated funds that are being reallocated from other states. Overall, $27 billion of the $46 billion has been obligated nationwide, which leaves approximately $19 billion available to be reallocated. Therefore, this request from California will be the first, but there will likely be others. Other large requests for additional funds have been made by Texas at approximately $1.0 billion and New York at $0.9 billion. These additional rental relief funds would be made available for state-run programs only and would not be allocated to local jurisdictions such as cities or counties that have chosen to administer relief programs on their own and not participate in the state administered program. These local jurisdictions will need to independently apply for additional Federal funding from re- allocated rental relief funds being distributed.
As of November 30, 2021, the state has distributed over $1.45 billion in rental relief out of the approximately $5.94 billion originally requested. The Apartment Association of Greater Los Angeles along with its state affiliate, the California Rental Housing Association, continues to work with the California Department of Housing and Community Development on the implementation of the rental relief program and allocation of funding. For more information, please visit the state’s Housing is Key website.
Political Updates
In addition to the Redistricting Commission releasing the new draft legislative and Congressional district maps, which is causing a lot of discussion and angst, there have been several other recent announcements, including:
• Senator Sydney Kamlager-Dove has officially announced she is running for U.S. Congress
• Assembly Member Richard Bloom, who is termed out in 2024, is running for Los Angeles County Supervisor
• Assembly Member Ed Chau, who is termed out in 2024, has been appointed by the Governor as a judge, which will leave a vacancy in the Assembly
• Assembly Member David Chiu left to be the San Francisco City attorney, leaving a vacancy in the Assembly
• Assembly Member Jim Frazier has announced he will not be returning in January and will instead pursue work in the private transportation sector
• Assembly Member Marc Levine, who is termed out in 2024, is running for state Insurance Commissioner
• Assembly Member Kevin Mullin, who is termed out in 2024, is running for Congress
• Assembly Member Rudy Salas, who is termed out in 2024, is running for Congress
Legislative Updates
The Legislature is in recess until January 3, 2022, but the Apartment Association of Greater Los Angeles and its affiliates throughout California have been busy planning its legislative priorities for 2022. The Association has been working diligently with stakeholders, legislators, and legislative staff on its sponsored bill, Assembly Bill 916 (Salas), which would streamline bedroom and accessory dwelling unit (ADU) construction and will need to pass the Housing and Local Government Committees in January.
The legislative calendar for 2022 has been set. The deadline for new bills to be introduced is February 18, 2022, after which time we will have a sense of most of the legislative fights we will be facing next year.
Proposed Ballot Initiatives
Several active, proposed ballot measures have been submitted for the 2022 ballot that are of interest to the rental housing community, including:
The Taxpayer Protection and Government Accountability Act
• Requires tax increases to be approved by voters or governing body elected by voters. Intent to increase transparency and accountability over higher taxes. Places limitations on how new and increased taxes can be spent.
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