Report 2020-108 Recommendation Responses
Report 2020-108: California's Housing Agencies: The State Must Overhaul Its Approach to Affordable Housing Development to Help Relieve Millions of Californians' Burdensome Housing Costs (Release Date: November 2020)
Recommendation for Legislative Action
To ensure that the State awards financial resources for housing in a more timely and efficient manner, the Legislature should create a workgroup including the Tax Committee, HCD, CalHFA, and other industry representatives such as private lenders and developers, and require it to do the following:
- Develop consistent program requirements for determining eligibility for awarding financial resources to multifamily housing projects, to the extent feasible.
- Align application deadlines for multifamily housing programs.
- Design the requirements and deadlines to best accomplish the goals outlined in the state housing plan and addendum, with the intent to maximize affordable housing built and to remove administrative barriers.
- Update their respective regulations to reference the new program requirements and deadlines.
Description of Legislative Action
AB 2305 (Grayson, 2022) would have established the Coordinated Affordable Housing Finance Committee comprised of representatives from HCD, CalHFA, the Tax Committee, the Treasurer, and the Controller. Would have required the committee to allocate state-controlled resources for the finance of affordable rental housing through a single process and competition. Would have required the committee to develop an application, threshold requirements, and a rating and ranking system for applicants seeking these resources. Would have authorized the committee to adopt, amend, or repeal rules and regulations for the allocation of state-controlled resources for the finance of affordable rental housing that would take effect immediately upon adoption. This bill died in the Senate.
AB 1135 (Grayson, 2021) would have enacted the State of California Housing Allocation Act, which would have required the Business, Consumer Services, and Housing Agency, HCD, CalHFA, and Tax Committee, no later than January 1, 2023, to jointly establish and operate a single, centralized housing funding allocation committee, which would be within the Business, Consumer Services, and Housing Agency and comprised of representatives of those entities. Would have required the committee to be responsible for allocating state controlled financing to housing developments and to serve as the point of contact for developers seeking to build affordable housing in California. No later than December 31, 2023, would have required the committee to create a unified application and award process for the allocation of state-controlled affordable housing funds and, to the extent permitted by any applicable law governing the allocation and use of those funds, make applications and awards at least twice per calendar year. Would have authorized the committee to exclude state-controlled affordable housing funds from this unified application and award process for specified reasons. This bill died in the assembly.
- Legislative Action Current As-of: March 2023
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Proposed But Not Enacted
Description of Legislative Action
As of November 17, 2021, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2021
California State Auditor's Assessment of 1-Year Status: No Action Taken
Description of Legislative Action
As of May 17, 2021, the Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: May 2021
California State Auditor's Assessment of 6-Month Status: No Action Taken
Description of Legislative Action
AB 68 (Salas) states legislative intent to implement the recommendations in the audit.
- Legislative Action Current As-of: January 2021