Housing Policy Proposals Coming to Combat Homelessness in California

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An abused woman who left her boyfriend’s apartment. An out-of-stater who came for a job that suddenly didn’t pan out. An impoverished family with crushing medical bills.

All three called the referral line at L.A. Family Housing in North Hollywood. All three were at-risk and seeking help for one thing: Homelessness.

California has a larger homeless population than anywhere in the country, and with the increasing costs of housing, that population continues to grow.  It’s a problem that Gavin Newsom has pledged to combat, calling it “the issue when it comes to California poverty.”

 

“We are not playing small ball with housing.”

-California Governor Gavin Newsom

 

In his first state budget as governor, Newsom proposed spending more than $2 billion for homeless services and for the construction of 3.5 million low- and middle-income housing by 2025. Newsom refers to it as his “Marshall Plan,” the name of the post-World War II $13-billion U.S. aid program to rebuild Europe.

This $2 billion will include:

·      A one-time payment of $500 million for local government to fight homelessness -- $300 million for regional planning, and $200 million to cities rewarding for them building new or permanent-supportive housing.  

·      Raising from $80 million to $500 million the budget for California’s Low-income Housing Tax Credit, the state’s most important low-income housing financing tool.

·      A one-time payment of $500 million for “moderate-income” housing production for California’s middle class. Newsom has also urged Silicon Valley firms to match this amount.

·      $25 million to get more California homeless on federal disability.

Anya Lawler, a housing policy advocate for the Western Center on Law and Poverty says “I have never seen this kind of attention paid in the budget to homelessness and affordable housing issues.”

Some of the money could go to United Dwelling, a development company that proposes converting detached two-car garages into approximately 400-square-foot housing units. A 2017 state law ended restrictions on A.D.U.’s (Accessory Dwelling Units), allowing old garages to be converted into habitable spaces. Los Angeles County alone has 250,000 detached two-car garages.

United Dwelling would lease the garage from the homeowner and rent them out at below-market rates (they will accept Section 8 housing vouchers). Rent would bring homeowners an additional five hundred dollars a month, while United Dwelling handles the property management and maintenance. The units would also need to be within half a mile of public transportation or within a block of ride-share-pickup spots.  

But, what would those dwellings look like? They would have built-in appliances – gas range, dishwasher, washer-dryer. Space for a large TV, a queen-size bed, a nightstand, and a bin for extra bedding. There would also be French doors that open onto a tiny patio with a trellis.  

The California assembly is jumping into the helping-the-homeless efforts by introducing Bill AB 1188, which happened in February, 2019. It seeks to aid people on the verge of homelessness. The bill would add Section 1942.8 to the Civil Code, which states:

1) That a tenant would temporarily allow a person at risk of homelessness into a dwelling for no more than 12 months “without negative repercussions from the owner/landlord of the property.”

2) The owner/landlord may adjust the rent by a maximum of an unspecified percentage “as compensation during the time that person occupies the dwelling.” The rent terms will be agreed to in advance in writing.

3) Allowing this person in the dwelling is not permissible if doing so would go beyond the building occupancy limits or other building standards.

4) An owner/landlord may request a background check from the person occupying the dwelling.  

5) This doesn’t apply to Section 8 or “any other federally funded or assisted low-income housing.”

The bill was amended slightly in the Judiciary committee on March 25, 2019 and re-referred to the committee on March 26.

There are enough homeless in Los Angeles County alone to nearly fill Dodger Stadium. But, with the three initiatives above, California is doing what it can to tackle this persistent problem.  How will this impact the housing market overall?  That remains to be seen.

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