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 has sufficient data to determine how much affordable housing it has supported and to maximize the impact of its funds, the Legislature should require HCD to develop the housing data strategy component of its housing plan with input from the Tax Committee and CalHFA. At a minimum, the housing data strategy should include the following:
- A strategy for assigning a unique identifier to state-funded affordable housing projects so that multiple funding sources can be tracked for each project, such as all agencies using a single application process for multifamily housing programs.
- An evaluation of data priorities to measure the distribution and impact of state-awarded funds for affordable housing, such as number of applications, type and amount of funding awarded, number of units created, and project location.
Description of Legislative Action
AB 244 (Rubio, 2021), in part, would require the Tax Committee, HCD, CalHFA, and the Debt Limit Committee to conduct an affordable housing cost study that measures the factors that influence the cost of building affordable housing, breaks down total development costs for affordable housing, and enables the state to maximize resources allocated for affordable housing. The bill would require the study to consider data from projects that have received funding from the various programs and funding sources described above. The bill would require the development of the cost study only as existing resources permit without restructuring funding priorities, or as private resources are made available. The bill would require the Tax Committee to publish the study by January 1, 2028. This bill is pending in the Assembly.
- Legislative Action Current As-of: November 2021
California State Auditor's Assessment of 1-Year Status: Legislation Introduced
Description of Legislative Action
AB 68 (Salas) would, in part, require HCD to develop and publish on its website an annual report by December 31 of each year that includes specified information regarding grant programs that are administered by the HCD, including the time between the issuance of award letters and the delivery of the standard agreement to the awardee and a comparison of how the time between the issuance of the award letters, delivery of the standard agreement, and completion of the standard agreement varies across HCD-administered programs.
AB 244 (Rubio) would, in part, require the Tax Committee, HCD, the California Housing Finance Agency, and the Debt Limit Committee to conduct an affordable housing cost study that measures the factors that influence the cost of building affordable housing, breaks down total development costs for affordable housing, and enables the state to maximize resources allocated for affordable housing. The bill would require the study to consider data from projects that have received funding from the various programs and funding sources described above. The bill would require the development of the cost study only as existing resources permit without restructuring funding priorities, or as private resources are made available. The bill would require the Tax Committee to publish the study by January 1, 2028.
- Legislative Action Current As-of: May 2021
California State Auditor's Assessment of 6-Month Status: Legislation Introduced
Description of Legislative Action
AB 244 (Rubio) would require the Tax Committee, HCD, the CalHFA, and the Debt Limit Committee to conduct an affordable housing cost study that measures the factors that influence the cost of building affordable housing, breaks down total development costs for affordable housing, and enables the state to maximize resources allocated for affordable housing. The bill would require the study to consider data from projects that have received funding from the various programs and funding sources described above. The bill would require the development of the cost study only as existing resources permit without restructuring funding priorities, or as private resources are made available. The bill would require the Tax Committee to publish the study by January 1, 2028.
AB 68 (Salas) states legislative intent to implement the recommendations in the audit report.
- Legislative Action Current As-of: January 2021