We are experiencing an Affordable Housing crisis in California. Senator Glazer is working alongside Governor Newsom to incentivize housing construction and help put working and middle-class families into decent, affordable housing.
The spiraling costs of rent and housing are squeezing family budgets,” notes Senator Glazer. “California’s housing shortage poses a serious threat to our state’s economic growth and prosperity.”
At the heart of the problem is a lack of supply. Complicating the situation are problems at every level: labor availability and cost; building supply prices; government fees; the cost of capital; regulatory rules and barriers; and a builder’s willingness to take a risk that they will make a profit at the end of the entitlement and construction period (photos here).
The shortage of supply has given landlords the ability to raise rents dramatically in a tight market, in some cases the equivalent of gouging. Senator Glazer supported legislation temporarily limiting rent increases to 5 percent a year plus the cost of living. (AB 1482)
“This legislation will allow landlords to recoup their investment without forcing tenants out of their apartments.,” Senator Glazer explained. “But rent control is an imperfect solution given its potential to discourage the construction of new rental housing and lead landlords to convert apartments to owner-occupied condominiums.”
“A better solution would be to provide aid directly to needy tenants. I have proposed that the existing renter’s tax credit of $60 for singles and $120 for couples be increased to $220 and $434 respectively. This would provide immediate relief to 2.4 million low-income renters. California currently provides over $4 billion in tax relief for homeowners but only about $300 million in help to renters. The renter’s tax credit has not been increased since 1979 – 40 years. We can and must do better for our most vulnerable renters.”
In 2019, with Senator Glazer’s strong support, the Legislature and the Governor took urgent action to address the housing crisis. The state budget approved funds for a variety of housing programs. They were:
- $1 billion for local and regional affordable housing support
- $500 million for in-fill grants
- $500 million for low-income grants
- $500 million for affordable housing tax credits
- $200 million for moderate-income housing credits
- $25 million for rental assistance and legal aid
Additionally, 2019 was a year of intense legislation directed towards housing. Senator Glazer helped pass 14 housing bills that were signed into law. These bills created powerful new tools to incentivize housing production, including:
- Provided $331 million for the National Mortgage Special Deposit Fund to provide assistance when vulnerable homeowners and renters face the loss of housing. (SB 113)
- Incentivizing the construction of so-called “accessory dwelling units” (ADUs) more commonly known as “granny flats,” (AB 587, AB 671)
- Streamlining permitting and development approval processes while ensuring no loss of zoning authority by local jurisdictions. (AB 1485)
- Requiring state and local governments to inventory surplus land with an eye towards designating the appropriate site for the construction of affordable housing. (AB 1255, AB 1486, SB 6)
- Permitting special districts (EFIDs) to issue housing construction bonds. (AB 116)
- Expanding Affordable Housing on Native American lands. (AB 110)
- Expanding collection and dissemination of housing data among local agencies and to the public. (AB 1483)
- Increases certain tax exemptions available for affordable housing development. (AB 1743, SB 196)
- Created a Housing Trust in the San Gabriel Valley to finance projects for homeless and low-income housing. (SB 751)