Governor Newsom accelerated  construction process for 1,700 new affordable housing units

LOS ANGELES:- Governor Gavin Newsom announced an investment of approximately $239 million today to help bring 20 shovel-ready affordable rental housing projects—comprising 1,700 homes—to market for California residents. These new projects were advanced through an expedited approval process designed to accelerate development and reduce administrative hurdles. This initiative continues the state’s efforts to address the long-standing housing shortage and the homelessness crisis facing the region.

Governor Gavin Newsom says, “California is reversing decades of housing inaction by making historic investments to build more homes quickly. Today’s announcement will help provide more housing, lower costs, and foster greater stability in communities across the state. In partnership with the legislature, we are supporting that investment through reforms that reduce administrative red tape, expand financial opportunities, and accelerate housing construction. Those efforts are yielding results: more housing projects are moving forward, more affordable homes are being built, and many Californians are gaining the stability and shelter they deserve.”

In April, the California Department of Housing and Community Development issued a ‘Notice of Funding Availability’ under the ‘Multifamily Housing Program Gap Funding’; this was California’s first NOFA focused on the additional funds needed for construction. The state’s investment of approximately $239 million helps provide more multifamily housing for low-income Californians, fostering positive outcomes for health, climate, and family stability.

“California cannot afford to delay in addressing the state’s affordable housing crisis,” said California Secretary of Housing and Homelessness Tomiquia Moss. “Approving these critical funds quickly and effectively ensures that much-needed affordable rental homes across the state can move from the planning stage to construction and open their doors to families in need.”

New projects ready for construction underwent an expedited review process, enabling the announcement of grants in just four months and providing the necessary momentum and certainty for the projects to quickly advance to the construction phase.

This funding was awarded to projects that had not previously secured financing through tax-exempt bonds or tax credits for low-income housing, and that committed to developing affordable housing for low-income Californians.

“This innovative financial solution directly addresses the cost-related challenges that are stalling the construction of much-needed affordable housing communities in California,” said HCD Director Gustavo Velasquez. “I am incredibly proud that we were able to bring these projects to fruition so quickly by utilizing streamlined processes developed by our team.”

In addition to today’s announcement, Governor Newsom is creating a structural and foundational model across the state that will have a positive impact on future generations.

Through the voter-approved Proposition 1, the Governor is streamlining and prioritizing efforts to fund the construction of new housing, shelters, and support services; address the intersection of mental health and homelessness; and create new pathways for those in greatest need through updated conservatorship laws and the new CARE Court system.

California is also addressing state-wide encampments to move people off the streets and into care. All these efforts are yielding positive results.

California’s investment has yielded immediate, measurable results and created the critical foundation necessary to ultimately resolve the state’s housing and homelessness crisis.