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The Sacramento Update
THE SACRAMENTO UPDATE
The Legislature is Back in Session! Here We Go Again...
By Kate Bell, Kate Bell Strategies
G State Budget Update
overnor Newsom unveiled his 2022-23 proposed state budget on January 10th. Shortly thereafter, the Business Consumer Services and Housing Agency conducted a stakeholder call where they highlighted aspects of the Governor’s 2022-23 Proposed
Budget specific to housing. Several of highlights are included below:
• Includes over $1 billion to accelerate housing - especially in downtown oriented places. Investments in the budget have twin goals of housing production and climate change.
• Will continue to help accessory dwelling unit (ADU) production, as the California Home Financing Agency (CalHFA) is rolling out an ADU grant program this year.
• $500 million in infill infrastructure grant program.
• $100 million to convert commercial facilities into housing as well as state-owned housing.
• $200 million to preserve units in urban areas, including retrofits and electrification.
• $100 million for improvements to mobile homes.
• $200 million for mixed income housing via loans to developers for mixed-income rental housing for households with incomes between 30%-120% area median income (AMI).
• $500 million for the state low-income housing tax credit program
• $1 billion for mortgage relief in the form of reinstatement program that covers up to $80,000 of past mortgage relief.
Legislative Update
The Legislature reconvened on Monday, January 3rd. The Speaker announced several committee changes. Assembly Member Buffy Wicks was named Chair of the Assembly Housing and Community Development Committee. Additionally, Assembly Member Maienschein was removed from the Housing Committee, while Assembly Members Chris Ward and Wendy Carillo (both Democrats) were added. Therefore, there is an additional Democrat, and the make-up of the committee is now six Democrats and two Republicans. Additionally, on the first day back from session, the Assembly Appropriations Chair, Lorena Gonzalez, announced her resignation to join the Labor Federation. Assembly Member Chris Holden has been named the new Chair of the Appropriations Committee.
There are several two-year priority bills that have been set for committee hearings in January and which would need to pass by their house of origin by end of the month, including:
• Assembly Bill 916 (Salas) - This co-sponsored bill by the California Rental Housing Association (CalRHA) and the Apartment Association of Greater Los Angeles (AAGLA) would streamline bedroom construction by eliminating public hearings and increase ADU height limits from 16 feet to 18 feet on parcels that are multistory and multifamily. As of the date of this article, this bill was set to be heard by Assembly Housing and Local Government Committees on January 12th. YIMBY (Yes in My
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