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Redevelopment Agencies’ Closure Fueled Housing Crisis
Connect Apartments is planned for September 28th in Los Angeles. Here’s where to get more information and register.
California’s affordable housing crisis has been exacerbated by a decision to disband the redevelopment agencies in 2011. Though unintended, that effectively removed $6 billion in revenues earmarked for affordable housing since 2012.
That money was used to help offset increased Medicaid costs, fund schools and reduce the state’s obligations to local governments. Other contributing factors in the housing crisis include local resistance to new development, and environmental restrictions on new building.
California’s median home price ($500,000) is roughly twice the national average, and homeownership rates are the lowest since World War II. Renters spend more than half of their income on rent, among the highest in the county.
Among the ideas proposed by Democrats to fix the problem include raising new revenues through general obligation bonds. Meanwhile, Republicans are focusing on regulatory reform to make it easier to build new homes and remove local barriers to home construction.
For comments, questions or concerns, please contact Dennis Kaiser
