September 2022

SACRAMENTO — Six cities that were among those found out-of-compliance with Housing Element law in 2019 now have state-approved housing plans.

Working closely with Governor Gavin Newsom’s Administration, Seaside, Trinidad, South El Monte, Canyon Lake, Wheatland, and Montebello finally have plans that comply with California housing law.

“We know these are incredibly difficult times for all Californians, particularly those who are struggling to keep roofs over their heads,” said Department of Housing and Community Development (HCD) Director Gustavo Velasquez. “The effects of COVID-19 have now amplified these circumstances, so we’re pleased to see these cities doing their part by planning to meet the housing needs for all people in their communities.”

Of the final 47 jurisdictions found out of compliance with Housing Element law last year, 28 now have state-approved housing plans.

“HCD is proud to have played a part in bringing these jurisdictions into compliance and we will continue to work with the remaining jurisdictions that still do not have state-approved housing plans,” said Velasquez.

Cities and counties must incorporate a variety of strategies into their housing plans to show they can meet their communities’ housing needs.

Trinidad, despite its size and infrastructure challenges, was able to put together an accessory dwelling unit strategy.

“The City of Trinidad is excited to have an adopted housing element that has achieved compliance with HCD,” said Trinidad Mayor Steve Ladwig. “For such a small city, with many factors that limit density, this is a major accomplishment."

In order to set the stage for housing development, Wheatland worked hard to address its infrastructure challenges and meet a rezoning obligation.

“Wheatland has a strong commitment to meeting the affordable housing needs of our community and region,” said Wheatland Mayor Rick West. “We are pleased the State of California has affirmed our commitment with final certification of our housing element.”

To bring its plan into compliance, Montebello added higher density capacity for more than 300 homes in infill locations with plans to promote affordable homes on publicly owned lands and tackle a comprehensive general plan.

“The City of Montebello is excited to be in a position to focus on implementing new housing development consistent with the current housing element and Governor Newsom’s vision for much needed housing,” said City Manager René Bobadilla. “None of this would be possible without approval from the city council and the positive collaboration we received from Senator Bob Archuleta and the California Department of Housing and Community Development. The City is excited to continue establishing its vision for the future as we begin to embark on a comprehensive update to the General Plan.”

Seaside, Canyon Lake, and South El Monte also brought their resources to the table to address their respective challenges and prepare plans that serve as the foundation to address their housing needs.

In the past few years, housing-element compliance has taken on increased importance for communities seeking funding. Several federal, state, and regional funding programs consider compliance an eligibility or ranking criteria, including CalTrans Senate Bill 1 (2017) Sustainable Communities grants; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities program; and HCD’s SB 2 (2017) planning funding, which helps communities plan for and accelerate housing production.

Nearly 3,000 California mobilehome owners have protected their homes through a state program that waives back taxes, fees, and penalties for those who were never provided proper title and registration. As of May 2020, Californians have saved a total of $2.56 million in fees and taxes while gaining peace of mind that comes from having proper title and registration to their homes.

Register Your Mobilehome California, administered by the California Department of Housing and Community Development (HCD) gives owners whose mobilehomes were never been properly titled and registered a path forward to correct the issue, ensuring more families have the opportunity to obtain proof of ownership for homes they rightfully purchased. Through the program, the average homeowner saves nearly $3,000.

“Many Californian mobilehome owners who used this program say they weren’t aware they needed title and registration, because the previous owner didn’t inform them, or they inherited their home from relatives who also didn’t know,” said HCD Director Gustavo Velasquez.

“This program makes the property legal, protecting homeowners from being evicted from mobilehome parks for failure to have title and registration,” he added. “It also opens the door for homeowners to properly sell or transfer their mobilehomes, collect fire or flood insurance claims, and obtain permits for repairs and upgrades.”

HCD continues to take applications from the public. Mobilehome owners can follow application instructions on HCD’s website at registeryourmobilehomeca.org or call (800) 952-8356 to receive technical assistance. A Spanish-language version of the website and the Google Translate application can be accessed by clicking on the upper right corner of the webpage.

The program, in its third year is set to expire on December 31, 2020.

SACRAMENTO — The California Department of Housing and Community Development (HCD) has awarded more than $279 million from the Infill Infrastructure Grant program to communities in large- and small-population counties throughout the state for infrastructure improvements that support the development of affordable and mixed-income housing.

Although the program does not fund the development of the housing itself, the infrastructure it provides is necessary for housing development. Capital improvement projects funded by these awards will create curbs and gutters and allow for grading and site improvements, installation of new, larger water and sewer lines, and soil stabilization. As a result of this funding, the affordable homes produced will provide approximately 3,700 individuals and families with safe, affordable homes, which will remain affordable for 55 years or longer, serving multiple households over time, and allowing families to break the cycle of poverty.

“Cities identified lack of infrastructure as one of the challenges to building housing,” said HCD Director Gustavo Velasquez. “Governor Newsom responded with funding for this program in his 2019-20 budget, and we’re pleased to get this funding to communities where they can take the next step and create more homes affordable to Californians in need, serving multiple families for generations to come.”

View award lists for

large jurisdictions and small jurisdictions

SACRAMENTO — As California moves into the next housing planning period – the 6th Cycle – five more cities have earned state approval of their housing plans, known as housing elements, bringing the state’s housing plan compliance rate to the highest level in history, with only 14 of 539 jurisdictions from the 5th Cycle housing planning period still needing state approval of their plans – down from 47 in February of 2019. Cities’ housing plans are critical to setting the stage to allow new housing production across the state.

Desert Hot Springs, Westlake Village, Compton, Rialto, and Bell are the five latest cities to finally gain state approval of their housing elements and comply with California housing law. Each city took swift steps to use resources made available by Governor Newsom and adopt their state-compliant housing elements, allowing them to remain eligible for a combined $1.1 million dollars in planning grants from the $123 million made available statewide by the Building Homes and Jobs Act (SB 2) of 2017.

“These are hard times for all of us, learning how to do this important housing work in new ways,” said HCD Director Gustavo Velasquez, “but these jurisdictions showed us they could step up and help make housing a reality when Californians need it most. HCD is here and ready to help any and all jurisdictions that want to join them in meeting the moment.”

Most prominently, Desert Hot Springs updated the city’s entire general plan, creating new residential and mixed-use zones that increased the number of homes that can be built per acre, allowing development of affordable, multifamily housing. The result will be new opportunities to accommodate more than 4,000 apartments for families priced out of market-rate housing.

Westlake Village, Rialto, and Bell took on similar actions. Westlake Village adopted the North Business Park Specific Plan after many hours of hard work and planning. Rialto set the stage to address a variety of housing choices to promote affordability and housing for people with disabilities and those experiencing homelessness.

HCD will continue pushing toward its goal of 100 percent compliance to ensure that local, regional, and state governments are adequately planning to meet the housing needs of all Californians.

The California Department of Housing and Community Development (HCD) released a new online tool showing how each California city or county is progressing toward its housing goals. The Annual Progress Report (APR) Dashboard can be found on the department’s new Open Data Tools webpage.

California cities and counties are required to plan for the housing needs of all their residents and must adopt a housing plan, or “housing element,” every five to eight years. The housing element must show how they will accommodate their housing needs, including how they will provide opportunities and reduce barriers to housing development affordable to people at all income levels. On April 1 of each year, local governments must submit these reports to HCD, showing their progress toward their housing goals.

“At HCD, we are committed to transparency,” said Department Director Gustavo Velasquez. “For the first time, with this new dashboard, you can see the housing-planning progress of California cities and counties in one place, formatted as easy-to-use, interactive graphs and charts that have built-in filters, so you can customize data.”

With the APR Dashboard, viewers can:

•  Quickly see which cities and counties have HCD-certified housing elements (housing plans) and if they have submitted their annual progress reports.
•  View housing-element compliance rates statewide or by region/county.
•  Track housing production at a variety of income levels, structure types, geographies, and more.
•  Summarize housing-project data or view individual project detail.
•  Track changes and trends over time or view stand-alone trends.

In addition to consolidating data already available on HCD’s website, the APR Dashboard includes a variety of new data points never previously published, such as updates on housing-element program commitments, housing applications, and housing funding-source information.

Virtual Tour Available

HCD will host a virtual tour of the APR Dashboard at on May 4, 2021. Attendees will need to register online

New “Open Data Tools” Webpage Launched

The APR Dashboard is just one of a variety of online, interactive tools offered by HCD on its new Open Data Tools webpage — designed to democratize housing data and serve as a user-friendly portal for local governments, advocacy organizations, academia, and the general public.

For more information about housing-element annual progress reports, please visit HCD’s Annual Progress Reports webpage.

The California Department of Housing and Community Development (HCD) released updated Affirmatively Furthering Fair Housing (AFFH) guidance and a new interactive AFFH Data Viewer to help local jurisdictions meet their fair housing requirements.

“The state continues to keep fair housing at the forefront of our efforts to expand housing,” said Lourdes Castro Ramírez, Secretary of the California Business, Consumer Services and Housing Agency. “This guidance and the new data viewer released by HCD is yet another important milestone in furthering racial and residential equity.”

Affirmatively Furthering Fair Housing seeks to eliminate racial bias, undo historic patterns of segregation, and lift barriers that restrict access to opportunity. Since the passage of the Fair Housing Act in 1968, subsequent laws have sought to expand on protections afforded in the act to help prohibit discrimination and create real housing choice. The California Legislature took it one step further with the passage of Assembly Bill 686 (2018) which requires all state and local public agencies to address, combat, and relieve disparities resulting from past patterns of segregation in order to promote more inclusive communities. The law also creates new requirements for local jurisdictions to include affirmatively furthering fair housing as part of their housing planning process and in their housing elements (housing plans) due in 2021.

“The disproportionate economic and housing impacts of COVID-19 on low-income families and people of color have reaffirmed how vital it is for public entities to maintain our focus on achieving racial equity and opportunity for all Californians,” said HCD Director Gustavo Velasquez. “At HCD, we are focused on making sure that the execution of our mission is informed by and accountable to the struggle to achieve racial equity and fair housing choice in California. But we know we can only begin to see change when all levels of government work together.”

“Fifty-three years after the 1968 enactment of the federal Fair Housing Act, systemic discrimination continues to restrict housing opportunities for Black and Brown communities, and determines who can build generational wealth,” said Kevin Kish, Director of the California Department of Fair Employment and Housing. “These tools will help public agencies and recipients of state funds to intensify their efforts to eliminate discrimination.”

To help local jurisdictions meet their AB 686 obligations, HCD released an AFFH Guidance Memo that includes detailed information on furthering fair housing, the new housing element requirements, and resources for communities. The new housing element requirements include an assessment of fair housing practices, an analysis of the relationship between available sites and areas of high or low resources, and concrete actions in the form of programs to affirmatively further fair housing. HCD also released the AFFH Data Viewer, an interactive mapping tool to help in the assessment of fair housing by consolidating data and providing options for addressing each component in the AFFH housing element requirement. HCD will continue to add to this guidance and tools in collaboration with local partners, advocates, and researchers.

For more information, please visit HCD’s AFFH webpage.

SACRAMENTO — Fifty-eight apartments for Sacramento residents earning less than $36,000 a year are now under construction on state-owned land just blocks from the Capitol. The new homes are scheduled to be ready to rent at the end of 2022.

Sonrisa at 1322 O Street, developed by Capital Area Development Authority (CADA), is the first project to break ground under Governor Gavin Newsom’s Executive Order (EO) N-06-19, which prioritizes affordable housing development on excess state property using sustainable, innovative, and cost-effective construction methods. Sonrisa will be a 100 percent affordable, accessible to people with disabilities, and powered by onsite renewable energy (zero net energy), keeping utility bills low for residents. The ground floor will include commercial space for conveniently located shops and services.

“You proved the concept that government can remove one of the barriers to creating affordable homes, which is access to inexpensive land located close to basic necessities. Here, the state provided this underutilized lot to make life better for people who are priced out of the rental market,” Gustavo Velasquez, director of the California Department of Housing and Community Development (HCD), said.

HCD provided $10 million for the $20.4 million development through its Transit-Oriented Development program, which had run out of funds in 2014 until voters approved Proposition 1 in 2018, replenishing a variety of state housing programs. HCD also provided nearly $2 million in additional Transit-Oriented Development funds to Sacramento Regional Transit District for upgrades to two neighboring light rail stations.

Additional funding for apartment construction came from CADA; the California Housing Financing Agency; the California Tax Credit Allocation Committee; the California Debt Limit Allocation Committee; WNC & Associates, Inc; and JPMorgan Chase Bank.

Velasquez encouraged other communities to take advantage of the opportunity to create new housing on public lands, noting that the Governor and legislative leaders are indicating a desire to scale up with the potential for more funding in the next state budget.

“There are 11 active, excess state sites under development right now and 4 more are in the early stages of soliciting developers, which can provide homes for more than 1,300 families in less than two years. And in the years to come, so many more homes will be created as local governments join in to provide safe, stable places to call home for families in their communities,” Velasquez said.

In partnership with the Department of General Services, HCD continues to identify state-owned properties suitable for housing. Last month, they announced four additional sites, located in Sacramento, Gilroy, Atascadero, and Montebello. The sites include former armories and an underutilized state warehouse building.

Developers interested in learning more and submitting proposals for development are invited to review the Request for Qualifications.

SACRAMENTO — California communities that make significant changes to accelerate and cut costs on producing housing can begin applying today to be eligible for special preference from the state in certain housing, infrastructure, and community development programs, thanks to a new Prohousing initiative introduced by Governor Gavin Newsom and adopted as emergency regulations.

Local jurisdictions can successfully earn a Prohousing designation if they promote greater density by including multi-family housing such as duplexes to fourplexes, up-zone in locations near jobs and transit to reduce vehicle emissions, and create more homes in places of high opportunity for low-income families.

“We will be able to move more state resources to communities that have taken concrete action by adopting housing policies that center equity and expand housing units affordable to working residents and low-income households,” said Lourdes Castro Ramírez, Secretary of the Business, Consumer Services and Housing Agency. “We look forward to seeing communities up and down the state vying for this designation that has the potential to unlock significant funds including infrastructure grants.”

The benefits could be substantial – by adopting deliberate, transformative policies that center equity and eliminate barriers to producing affordable housing, communities will have a competitive advantage in several state programs that fund housing and transportation in the right places.

California’s Prohousing Designation Program rolls out just as the Biden Administration is looking to provide federal financial incentives to jurisdictions nationwide that take concrete steps to eliminate needless barriers to producing affordable housing. The Department of Housing and Community Development (HCD) will administer the new Prohousing Designation Program and begin accepting applications immediately from jurisdictions that want to uplift their communities after a deadly global pandemic.

The state provided nearly $250 million in planning grants and technical assistance over the last year through the General Fund to help jurisdictions and regions update policies and prepare them for the Prohousing Designation Program. The June 28 Budget Package includes an additional $600 million for planning and implementation grants to continue to help local governments plan for and meet their goals under their Regional Housing Need Allocations and their Sustainable Communities Strategies. These grants provide yet another tool to support jurisdictions to become Prohousing.

Compliance with state housing laws is a threshold for achieving and maintaining a Prohousing Designation, and to that end, HCD’s new Housing Law Assistance and Accountability Unit will assist jurisdictions that are either ready to apply for the designation or want to beef up their local policies to be primed for Prohousing; and the unit will conduct ongoing monitoring to ensure the integrity of the Prohousing Designation.

Once a jurisdiction receives the designation from HCD, it will then receive bonus points or preference when applying for funds from the following programs: the Infill Infrastructure Grant administered by HCD, and the Affordable Housing and Sustainable Communities Program and Transformative Climate Communities Program administered by the Strategic Growth Council. All three programs include local governments and agencies as applicants or co-applicants with affordable housing developer partners. State agencies may grow the list over time of both housing and non-housing funding sources to provide further incentives to Prohousing jurisdictions.

“California is leading the way as a model in how to incentivize and reward local jurisdictions that step up to produce more affordable housing, promote equitable and sustainable development, and dismantle exclusionary policies,” HCD Director Gustavo Velasquez said. “These efforts are critical to meeting our housing goals and ensuring we dismantle barriers that hold us back from building neighborhoods where all Californians can thrive, regardless of their income or skin color.”

The Prohousing Designation Program remains flexible and open to change as it moves from emergency to normal regulations following a public feedback process over the next 45 days, according to HCD. The main principles of the program will remain intact, namely, accelerating housing production, facilitating sustainable and equitable communities and accounting for the rural, suburban, and urban differences in California’s diverse communities.

SACRAMENTO — The California Department of Housing and Community Development (HCD) announced today that it has been recognized by the United States Department of Housing and Urban Development (HUD) for being the top state in quickly expending monies allocated from the Community Development Block Grant (CDBG) Program during the last reporting period.

The most recent CDBG expenditure reports for the period ending July 31, 2021 can be accessed here - State CDBG Timely Expenditure Reports - HUD Exchange.

“We are pleased with the recent news that California has worked its way into the top position in terms of utilizing federal dollars efficiently and effectively to assist communities in need,” HCD Director Gustavo Velasquez said. “Our team takes the responsibility of managing federal funds very seriously, and we’ve made recent organizational improvements to ensure the state continues to deliver results that serve all Californians.”

In February, HCD split its Division of Financial Assistance into distinct divisions devoted to deploying and monitoring funding across state and federal allocations. The newly established Division of Federal Financial Assistance now has its own Deputy Director assigned to oversee and manage all operations related to federal programs. HCD’s rate of expenditure has steadily increased since those organizational changes were enacted.

The CDBG Program provides annual grants on a formula basis to develop viable communities by providing decent housing and a suitable living environment, as well as by expanding economic opportunities, principally for low- and moderate-income persons.

The CDBG program is very flexible and responsive to the needs of communities across the Country and the State. Funds may be used for activities such as the acquisition of real property; rehabilitation of residential and non-residential structures; construction of public facilities and improvements, such as water and sewer facilities, streets, neighborhood centers, and the conversion of buildings for eligible purposes; as well as the provision of critical public services in support of vulnerable populations such as the homeless, seniors, and disabled; all while seeking to support activities relating to energy conservation and the implementation and installation of renewable energy resources.

HCD’s efforts to distribute Community Development Block Grant funds to communities in need is just one piece of the state’s larger effort, coordinated by the Business, Consumer Services and Housing Agency, to expand affordable housing options and address homelessness. HCD’s recognition of its expanding ability to expedite the deployment of these funds as well as other resources from HUD and the United States Treasury is an important achievement as California continues to address the impacts of the pandemic in our communities.

To help address the state’s long-term affordable housing shortfall, California officials today announced a $1.75 billion plan – the California Housing Accelerator – which will provide funding to shovel ready projects in lieu of tax credit equity.

In all, funding will support 90 projects, producing between 6,300 and 7,200 units of affordable low-income housing statewide. Of this amount, approximately 1,200 units will be targeted to individuals and families experiencing homelessness.

“Today’s announcement reflects the state’s commitment to produce and expand access to quality affordable housing. When we invest in housing, we invest in our neighbors and our communities,” said Business, Consumer Services and Housing Agency (BCSH) Secretary Lourdes Castro Ramírez. “As part of the Governor’s California Comeback Plan, this funding is going to accelerate the construction of affordable housing across the state, ultimately impacting the lives of thousands of Californians most in need.”

The Department of Housing and Community Development (HCD) has already provided eligible multifamily housing projects with state funds, but many stalled due to an insufficient supply of tax credits and bonds necessary to complete the job.

“The California Housing Accelerator answers the call to move faster to fund and build more affordable housing,” said Gustavo Velasquez, director of the California Department of Housing and Community Development. “This investment is going to unlock the keys to upwards of 7,200 quality affordable homes for Californians who need it most. Homes that ensure so many can focus on better opportunities for their wellbeing, education, and employment. These swift and bold solutions are how we ensure our families and communities come back better than ever before.”

HCD has developed and published a project solicitation and guidelines document that will serve as the guiding document for the implementation of the California Housing Accelerator. To ensure effective implementation, the program will include a dedicated strike team for outreach and application reviews as well as a streamlined application and review timeframe to move from application to award within 60 days. Applications received will be evaluated for threshold criteria, such as ensuring projects proceed to construction within 180 days of awarded funds.

"California has always taken innovative approaches to solving complex problems, and that’s exactly what we’re seeing today with the unveiling of the California Housing Accelerator,” State Treasurer Fiona Ma said. “Affordable housing finance often demands the balancing of complex funding sources that occasionally do not weave together perfectly for every project. I’d like to commend the leadership and the commitment of this Administration in facing this challenge head on and really prioritizing funding for affordable housing for Californians who need it.”

Today’s announcement came at Foon Lok, a two-phased, multifamily housing development in Oakland. Foon Lok West is currently under construction and is slated to welcome residents in fall 2022. Foon Lok East is still awaiting the necessary funding to proceed to construction.

“We are grateful for Governor Newsom and the State of California for creating the California Housing Accelerator, a new program that recognizes and prioritizes the enormous public benefit in communities like Foon Lok East with nearly 40 percent of homes for extremely low income families and 30 percent for unhoused community members,” said Matthew O. Franklin, President and CEO of MidPen Housing. “We commend the state for aligning its resources with the need in the community, and in so doing strengthening this neighborhood through investment.”

For more information, please visit the California Housing Accelerator webpage.