BUENOS DÍAS. GOOD MORNING. I
HOPE EVERYBODY IS DOING WELL.
TODAY I WANT TO WELCOME YOU ALL
TO THE SECOND HEARING OF THE
ASSEMBLY'S BUDGET SUB COMMITTEE
ON OVERSIGHT AND ACCOUNTABILITY,
SUB SEVEN IS UNIQUE BECAUSE
MEMBERS ARE SELECTED FOR THE SUB
COMMITTEE BASED ON A TOPIC THIS
PROVIDES AN OPPORTUNITY FOR A
ROBUST DISCUSSION AMONGST
MEMBERS WITH SPECIALIZED
KNOWLEDGE. AND DIVERSE
PERSPECTIVES. TODAY'S HEARING
WILL FOCUS ON THE EFFICACY OF
THE STATE'S HOUSING INVESTMENTS.
SINCE 2019. THE STATE HAS
INVESTED OVER $18.5 BILLION,
INCLUDING 4.2 BILLION OF GENERAL
FUND DOLLARS. ADDRESS
CALIFORNIA'S HOUSING CRISIS. THE
EIGHT YEAR STATEWIDE GOAL IS TO
PRODUCE 2.5 MILLION HOMES. WITH
NÓ LESS THAN 1 MILLION OF THESE
HOMES MADE AVAILABLE FOR LOWER
INCOME HOUSEHOLDS. SO WHERE DO
WE GO FROM HERE? GIVEN THAT NEED
AND THE CURRENT ECONOMIC
CLIMATE. THE GOAL OF TODAY'S
HEARING IS TO FOCUS ON THE
LESSONS LEARNED. FROM EXISTING
AFFORDABLE HOUSING PROGRAMS.
THEIR INVESTMENTS, AND THESE
INCLUDE WHICH PROGRAMS PRODUCE
THE GREATEST AND MOST COST
EFFICIENT RESULTS. DO SOME
PROGRAMS WORK BETTER THAN
OTHERS. WHAT HAVE BEEN SOME OF
THE BARRIERS TO DEVELOPING NEW,
AFFORDABLE HOUSING IN THE STATE.
AND COULD THERE BE ADDITIONAL
IMPROVEMENTS TO STREAMLINING
FUNDING? AND LASTLY, IF WE HAVE
LIMITED RESOURCES WHETHER THOSE
ARE BONDS OR GENERAL FUND
DOLLARS. WHERE IS THE BEST PLACE
TO INVEST THOSE RESOURCES? I
LOOK FORWARD TO TODAY'S
CONVERSATION TO EXPLORE OPTIONS
FOR EXPEDITING THE MUCH NEEDED
AFFORDABLE HOUSING FOR OUR
RESIDENTS IN THE STATE OF
CALIFORNIA. I'D LIKE TO NOW OPEN
IT UP TO MY COLLEAGUES TO SEE IF
ANYBODY WOULD LIKE TO MAKE SOME
BRIEF COMMENTS. START WITH, UH,
SUB CHAIRWOMAN. AND CROSS
SILVER. GOOD MORNING, UH,
ASSEMBLY MEMBER SHARON
QUIRK-SILVA SUB CHAIR OF SUB
FIVE, WHICH HAS HOMELESSNESS AND
HOUSING. UH, UNDER ITS PURVIEW.
WE KNOW THAT HOUSING IS NOT JUST
ABOUT ROOFS OVER HEADS. IT'S
ALSO ABOUT STABILITY, SECURITY
AND OPPORTUNITY. IT'S ABOUT
PROVIDING A FOUNDATION UPON
WHICH INDIVIDUALS AND FAMILIES
CAN BUILD THEIR LIVES AND
CONTRIBUTE TO SOCIETY. TOGETHER
WE CAN BUILD A FUTURE WHERE
EVERY CALIFORNIA HAS A PLACE TO
CALL HOME AND THE OPPORTUNITY TO
LIVE WITH DIGNITY AND HOPE, AND
YET WE KNOW THAT HOMELESSNESS IS
DIRECTLY RELATED, UH, TO OUR
HOUSING PRODUCTION IN THE STATE
OF CALIFORNIA. SO WITH THAT, I
LOOK FORWARD TO NOT ONLY DIVING
INTO THE NUMBERS DIVING INTO
BEST PRACTICES, BUT ALSO TO LET
YOU KNOW THAT ON ALL APRIL 9TH,
UH, WE WILL ALSO BE, UH, I WILL
BE CHAIRING A COMMITTEE ON STATE
A MINUTE ADMINISTRATION WHERE WE
WILL BE FOCUSING ON HOUSING ON
THAT, UH, DATE APRIL 9TH. THANK
YOU. THANK YOU, MADAM CHAIR. UH,
WE WILL NOW MOVE ON TO OUR
HOUSING COMMITTEE CHAIR, MR
CHRIS WARDEN. THANK YOU, MR
CHAIR. THANK YOU FOR THE
INVITATION TO BE A PART OF THIS,
UH, OVERSIGHT HEARING TODAY. UM,
I KNOW AS THE STATE HAS MADE
VERY CRITICAL INVESTMENTS IN
JUST RECENT YEARS TO BE ABLE TO
DO MORE DIRECTLY AND SUPPORTING
AFFORDABLE HOUSING DEVELOPMENT
IN OUR LOCAL COMMUNITIES, UM,
THAT'S BEEN CERTAINLY NOTICED
AND APPRECIATED, AND WE HAVE A
LOT OF HEADWINDS FACING US THIS
YEAR AS WELL, INCLUDING SOME
TRADE OFFS THAT WE MAY HAVE TO
CONSIDER THROUGH SOME OF OUR
SUBCOMITTEE WORK. AND I THINK
YOU HIT THE NAIL ON THE HEAD, MR
CHAIR. UH WHEN WE SAID WE'VE GOT
TO LOOK BACK ON THE RECENT YEARS
OF EFFORTS THAT WE HAVE, UM, WE
HAVE DEPLOYED, UH, THESE
RESOURCES DOWN TO COMMUNITY TO
FIGURE OUT WHAT'S WORKING. WELL
UH, BE EFFICIENT WITH OUR
DOLLARS. UM HOW DO WE AND WE'VE
EXPLORING THIS AS WELL, UH, IN
INFORMATION HEARINGS THROUGH
OUR, UM, MY POLICY COMMITTEE
HEARING THE, UH, HOUSING
COMMUNITY DEVELOPMENT COMMITTEE.
UH, HOW DO WE MAKE SURE THAT WE
ARE REDUCING REGULATORY BARRIERS
AND LOOKING AT OTHER WAYS TO BE
ABLE TO SUPPORT MORE, UH,
HOUSING AND AFFORDABLE HOUSING
CONSTRUCTION, AND I THINK WE'LL
BE ABLE TO TOUCH ON SOME OF
THOSE TOPICS. I WANT TO THINK IN
ADVANCE ALL OF OUR PANELISTS FOR
BEING HERE TODAY. I THINK WE
HAVE A LOT TO LEARN FROM YOUR,
UM, DIRECT EXPERIENCE. AND
OBSERVATIONS ON MANY OF THESE
PROGRAMS, AND SO I'LL BE TAKING
A LOT OF NOTES TO BE ABLE TO
HELP US DO OUR JOB. UH AS WE,
UM, WORK ON THE SEATS BUDGET
CHALLENGES TOGETHER THIS YEAR.
THANK YOU. THANK YOU, MR WARD.
UH, NOW MOVING ON TO OUR
COLLEAGUE FROM THE IEM REYES.
THANK YOU, MR CHAIR. I'M REALLY
EXCITED TO BE PART OF THIS
DISCUSSION AROUND HOUSING
PROGRAMS, UH, ESPECIALLY THOSE
THAT HAVE BEEN FUNDED BY THE
STATE AND I WANT TO HEAR MORE
ABOUT THE DIRECTION THE
LEGISLATURE WILL BE TAKING TO
MAKE HOUSING MORE AFFORDABLE.
THINK WE NEED TO PUSH BACK VERY
SPECIFICALLY AGAINST THE BUDGET
CUTS THAT ARE BEING PROPOSED. I
DO THIS AS MUCH AS WE CAN TO
MAKE SURE THAT WE HAVE A ROBUST
PACKAGE OF FUNDING TO ADDRESS
THE AFFORDABILITY CRISIS. AT THE
VERY LEAST, WE NEED TO FOCUS ON
PROGRAMS THAT FUND AFFORDABLE
HOMES, AFFORDABLE HOME BUILDING
AND GETTING PEOPLE INTO HOMES.
WE HEAR FROM OUR CONSTITUENTS
THAT THEY DO SEE NEW HOUSING
PROJECTS. BUT THEY CAN'T AFFORD
THEM. I KNOW THAT BUILDING MORE
UNITS TO IN THE LONG RUN WILL
DRIVE DOWN THE COST OF HOUSING.
BUT PEOPLE ARE STRUGGLING TODAY
AND WE NEED TO BE INTENTIONAL
ABOUT GETTING PEOPLE INTO
HOUSING AS QUICKLY AS POSSIBLE.
THAT'S WHY, ALONG WITH 14 OF MY
COLLEAGUES IN BOTH HOUSES AND
FROM BOTH PARTIES ARE REQUESTING
TO RESTORE THE $152.5 MILLION TO
THE CALHOUN PROGRAM THAT WAS CUT
IN THE GOVERNOR'S PROPOSED
BUDGET. HELL HOME IS THE ONLY
STATE PROGRAM THAT ACTUALLY
ALLOCATES FUNDING TOWARD
AFFORDABLE HOME BUILDING. FOR
FIRST TIME HOME BY HOME OWN HOME
BUYERS AND IN RECENT YEARS HAS
BEEN OVERSUBSCRIBED. NEWLY
CONSTRUCTED HOMES THROUGH THIS
PROGRAM HAVE AFFORDABLE RESALE
RESTRICTIONS, ENSURING THAT THE
UNITS REMAIN AFFORDABLE IN THEIR
COMMUNITIES FOR DECADES TO COME.
GIVEN THE PERSISTENT RACIAL
WEALTH GAP THAT IS GROWING IN
CALIFORNIA. IT IS ESSENTIAL THAT
WORKING CLASS FAMILIES AND
FAMILIES OF COLOR ARE NOT
EXCLUDED FROM BEING ABLE TO
BUILD GENERATIONAL WEALTH
THROUGH THROUGH HOME OWNERSHIP.
CALIFORNIA OVERALL, CALIFORNIA'S
OVERALL HOMEOWNERSHIP RATE HAS
DECLINED TO THE LOWEST IN THE
NATION AT 55. AND ONLY 12% OF
LATINO AND BLACK HOUSEHOLDS CAN
AFFORD TO BUY MEDIAN PRICED
HOME. WERE ABLE TO BUY TO BUY
SUCH A HOME LAST YEAR. THIS IS
DOWN FROM 17 PER CENT IN 2021.
WE'RE ALSO CHAMPIONING A BUDGET
REQUEST TO HELP FUND AND DEVELOP
A REGIONAL ONLINE PORTAL FOR
AFFORDABLE HOUSING LISTINGS AND
INFORMATION. A B 20 THREE 96,
WHICH IS WOULD ESTABLISH THE
STATE PARTNERSHIP FOR AFFORDABLE
HOUSING REGISTRIES IN CALIFORNIA
OR THE SPARK. AT THE GRANT
PROGRAM IN ORDER TO MAKE RENTERS
AWARE OF THE AVAI AVAILABLE. HOW
AFFORDABLE HOUSING UNITS ON THE
MARKET TODAY. WE LET OUR FOOT
OFF THE GAS. WE ARE GOING TO
INCREASE THE GAP. OF AVAILABLE
HOMES, ADDING ON TO THE 2.5
MILLION THAT WE STILL NEED TO
BUILD OVER THE NEXT EIGHT YEARS.
I'M REALLY LOOKING FORWARD TO
HEARING FROM THE PANELISTS. I DO
WANNA THANK YOU FOR ALL THAT
YOU'RE GOING TO PROVIDE TO US.
THANK YOU. THANK YOU, MS. REYES
UH, AND NOW GOING ON TO THE
VALLEY OR GOOD FRIEND, MR JUAN
CARRILLO. THANK YOU, MR CHAIR. I
DO APPRECIATE THE INVITATION
AND, UH EXCITED TO BE PART OF
THIS CONVERSATIONS. UH, WE HAVE
A BIG CHALLENGE AHEAD OF US. I'M
LOOKING AT PAGE FIVE OF THIS
AGENDA, AND I SEE THE AMOUNTS TO
BE REVERTED FROM ORIGINAL
AMOUNTS BEING PUT OUT FOR
HOUSING UNITS. UH, FOR ME,
PARTICULARLY. I'M INTERESTED IN
THE POTENTIAL OF HAVING MORE
FUNDING FOR A Dð U
CONSTRUCTIONS. AS A CITY PLANNER
FOR YEARS. IN MY EXPERIENCE
PROJECTS GO THROUGH THE
ENTITLEMENT PROCESS FOR
MULTIFAMILY AND THAT TIME AND
MONEY IS INVESTED, BUT
UNFORTUNATELY THOSE, UH,
PROJECTS DON'T END UP BEING
BUILT BECAUSE OF THE LACK OF
FUNDING. UM, THAT'S THE REASON
WHY I BELIEVE THAT, UH BEING
ABLE TO PROVIDE MORE
ACCESSIBILITY FOR HOMEOWNERS.
THEY WANT TO TAKE ADVANTAGE OF
THE AU THROUGH SOME FUNDING WILL
ACTUALLY ACCELERATE THE NUMBER
OF UNITS THAT WE NEED. WHY AGAIN
BECAUSE MULTI FAMILY PROJECTS DO
TAKE TIME TO GO THROUGH
ENVIRONMENT PROCESS AND THAT
THEY JUST DON'T GET THE FUNDING
TO BE BUILT. THE A Dð U, I
BELIEVE IS A MECHANISM TO
ACTUALLY BUILD MORE HOUSING. UM
THAT'S A PARTICULARLY ONE OF THE
REASONS I'M INTERESTED IN BEING
HERE TO SEE HOW WE CAN FIND SOME
MORE ASSISTANCE FOR THOSE
HOMEOWNERS THAT WANT TO BUILD AN
A Dð. IN THE RATIONAL WEALTH.
THANK YOU AGAIN, MR CHAIR. I
LOOK FORWARD TO THE
CONVERSATIONS. THANK YOU. UH AND
NOW WE WILL MOVE ON TO MR
GRAYSON. THANK YOU FOR JOINING
US THIS MORNING. THANK YOU, MR
CHAIR. AND UH, THRILLED TO BE
HERE, UH, TO BE ABLE TO HEAR THE
TESTIMONY. UH, I THINK SOMETHING
VERY IMPORTANT AND THAT IS
KEEPING IN MIND ALTHOUGH I AM
100% SUPPORTIVE OF AFFORDABLE
HOUSING. I'M ALSO 100% S¼, UH,
SUPPORTIVE OF HOUSING THAT'S
AFFORDABLE. AND SO TO BE ABLE TO
HAVE HOUSING ON ALL THE
DIFFERENT LEVELS TO KEEP THAT
UPWARD MOBILITY AND THAT
MOVEMENT TO WHERE FIRST TIME
HOME BUYERS ARE UPGRADING AND
THE OPENING UP INVENTORY FOR
FIRST TIME HOME BUYERS AND IT
BEING AFFORDABLE. UH, HAVING
SAID THAT BACK TO THE AFFORDABLE
HOUSING? UH, COMPONENT. UH I
THINK IT'S VERY IMPORTANT THAT
WE AS THE STATE, TAKE A LOOK AT
WHAT WE ARE DOING AND FIND WAYS
TO BE MORE EFFICIENT, MORE
EFFECTIVE. AND I SAY THAT IN
REFERENCE AND CONTEXT TO THE TAX
CREDIT, UH, PROGRAMS THAT WE
HAVE TO BUILD AFFORDABLE HOUSING
AND HOW THAT, UH, THERE ARE
MULTIPLE, UH, PROGRAMS UNDER
MULTIPLE STATE AGENCIES AND THE
CO ORDINATION IS NOT QUITE THE
BEST. IN MY ESTIMATION. UH, I
SEE WHERE THERE'S DIFFERENT
CALENDARS AND BY BY MEETING, UH,
ONE CALENDAR. YOU ACTUALLY
MISSED THE DATES ON ANOTHER. UH
UH, CREDIT, UH, BY FILLING OUT
AN APPLICATION FOR ONE. YOU
AUTOMATICALLY JUST DISQUALIFY
YOURSELF, UH, IN SOME CASES TO
ANOTHER BY MEETING. UH,
QUALIFICATIONS FOR ONE. YOU DO
DISQUALIFY YOURSELF FOR OTHERS,
SO TO BE ABLE TO COORDINATE
CALENDARS, COORDINATE A, UH, A
SINGLE APPLICATION AND THEN ALSO
TO, UH, CREATE A LIST OF Q, UH,
QUALIFYING FACTORS FOR EACH TAX
CREDIT THAT WOULDN'T DISQUALIFY
YOU FROM ANOTHER SO THAT HOUSING
AFFORDABLE HOUSING DEVELOPERS
CAN ACTUALLY, UH UH, LAYER THE
GRANTS, ALONG WITH TAX CREDITS
AND PENCIL OUT A PROJECT SO THAT
WE CAN HAVE AFFORDABLE HOUSING
IN A QUICKER MANNER AND A MORE
WAY. SO WITH THAT I LOOK FORWARD
TO HEARING TESTIMONY. THANK YOU,
MR CHAIR. THANK YOU, MR GRAYSON,
AND APPRECIATE YOUR POINT ON A
BALANCED APPROACH TO HOUSING
MOVING ON TO MR PATTERSON.
GREAT. THANK YOU, UH, VERY MUCH,
UH, REALLY INTERESTED IN THIS
HEARING? UM HOUSING IS SOMETHING
THAT'S VERY INTERESTING TO ME.
AND I LOVE IT FROM A POLICY
PERSPECTIVE. UH SIT ON THE
HOUSING COMMITTEE AND SERVE AS
VICE CHAIR THERE AND LOOKING
FORWARD TO, UH, A LOT OF ROBUST
DISCUSSION THIS YEAR. UH, ONE
THING THAT HAS BEEN INTERESTING
TO ME AND, UH, THE DEVELOPMENT
OF AFFORDABLE HOUSING, AND I SAT
ON A CITY COUNCIL. UH THERE ARE
A LOT OF CHALLENGES, OBVIOUSLY,
AND A LOT OF THAT WAS COVERED
ALREADY, BUT A LOT OF THE
BURDENS ARE PLACED ON CITIES AND
COUNTIES, UM, IN TERMS OF WHEN
IT COMES TO MAKING THE PROJECTS
HAPPEN, WHETHER THAT'S SEQUEL
DOCUMENTS OR THE FEES AND THINGS
LIKE THAT A LOT. WE SPENT A LOT
OF FOCUS ON THE CITIES AND THE
COUNTIES AND THE JURISDICTIONS,
UH, TO GET IT DONE, BUT IN, UH
WHERE I'M FROM ROCKLAND, THERE
ARE A LOT OF SPECIAL DISTRICTS
THAT PLAY A HUGE ROLE IN THE
DEVELOPMENT OF AFFORDABLE
HOUSING. OR UH, MAYBE NOT THE
DEVELOPMENT OF AFFORDABLE
HOUSING. AND OFTEN TIMES THEY
DON'T. UH, WHY DON'T WE SAY
OFTEN TIMES? SOMETIMES THEY
DON'T PLAY ALONG IN THE SAME WAY
THAT THE CITIES DO AND WHAT
THEIR RESPONSIBILITIES ARE AS
WELL. SO, FOR EXAMPLE, WHEN IT
COMES TO CITIES, UH, REGULARLY
DO THINGS LIKE FEE DEFERRALS
WHERE YOU KNOW THAT HAPPENS AT
OCCUPANCY RATHER THAN WHEN THEY
BUILD THE PERMIT. AND IN MY
EXPERIENCE, THE SPECIAL
DISTRICTS HAVE A LOT LESS. UH
UH, LIKELINESS TO DO THAT, AND
IT IT'S A BOTHERSOME TO ME
BECAUSE I THINK EVERYBODY NEEDS
TO BE WORKING TOGETHER. ON
AFFORDABLE HOUSING, AND IT
SHOULDN'T ALL BE WITH THE CITIES
AND THE COUNTIES TO GET THAT
DONE. THANK YOU VERY MUCH. THANK
YOU, MR PATTERSON. AND NOW WE
WILL. AND THE MIC OVER TO THE
COLLEAGUE WHO REPRESENTS THE
OTHER PART OF THE A VÆ, UH MR
WACKY. THANK YOU, UH, MR CHAIR.
I JUST THINK, UH, OBVIOUSLY,
EVERYBODY THAT'S ON THIS
COMMITTEE AND EVERYBODY. THAT'S
UH, HAS ANY CONSCIOUSNESS AT ALL
THAT KNOWS THAT WE NEED TO DO
WORK ON MORE AFFORDABLE HOUSING.
THE COST OF HOUSING IS, UH
PRETTY PROHIBITIVE. FACT IS I
COULD TELL YOU THAT I HAVE TWO
YOUNG ADULT CHILDREN THAT HAVE
NÓ INTENTION OF EVER BEING ABLE
TO PURCHASE A HOME. AND I. I
TRYING TO DIFFUSE THAT AND TELL
THEM THAT, UH DON'T GIVE UP
HOPE. UH, WE WE'RE GONNA WORK ON
THIS AS A COLLECTIVE COMMUNITY,
AND, UH, HOPEFULLY WE CAN MAKE
THIS WITHIN REACH OF JUST YOUR
YOUR YOUR REGULAR RESIDENT I. I
COULD TELL YOU THAT. ALSO WE
HEAR PEOPLE. BEING CRITICAL OF
CUTS WHEN WE KNOW WE'RE IN A
DEFICIT ENVIRONMENT. SO THERE'S
GONNA HAVE TO BE CUT SOMEWHERE.
AND WHAT I WHAT? I'M TELLING YOU
THAT I I'M HOPING THAT WE CAN
GET FROM THIS THIS MEETING
TODAY. IS WHERE THE EFFICIENCIES
ARE. UH A LOT OF THESE PROGRAMS
HAVE HAD SOME SUCCESS, BUT AT
QUITE A COST. AND THAT'S VERY
DEBATABLE AS TO THE RETURN ON
THE INVESTMENT, AND THAT'S
REALLY WHAT WE NEED TO FOCUS ON
IS THE RETURN OF INVESTMENT. AND
UH, HOPEFULLY WE CAN WORK THIS
OUT TO WHERE THAT WE'RE NOT
TOTALLY DEVASTATED, AND WE DON'T
ADD TO THE YOU KNOW IN
AFFORDABILITY. AND I THINK
THAT'S REALLY WHERE WE'RE
CHALLENGED RIGHT NOW IS TO TRY
TO AT LEAST LEVEL IT OFF. UH,
BECAUSE THE SPIRALING COSTS ARE
REALITY AND, UH, WHETHER WE AS
POLICYMAKERS CAN IMPACT THAT, I
THINK, UH, IS SOMETHING WE NEED
TO WORK THROUGH, AND I THINK WE
CAN AND I LOOK FORWARD TO OUR
CONVERSATIONS. AND YOU ARE THE
EXPERTS AND WE LOOK FORWARD TO
HEARING WHAT YOU HAVE TO SAY.
THANK YOU. AND ON THE TOPIC OF,
UH, REVENUE AND FUNDS. UH, WE
WILL NOW HAVE MISS WICKS GIVE
HER REMARKS ARE APPROPRIATIONS
CHAIR. THANK YOU. THANK YOU, MR
CHAIR. THANK YOU, UM, FOR
EVERYONE WHO'S GOING TO BE HERE
TODAY? I'M LOOKING FORWARD TO
THE CONVERSATION. UM YOU KNOW
IT. IT TOOK US WHAT? 50 YEARS TO
GET HERE WHERE WE ARE TODAY.
WE'VE MADE IT VERY DIFFICULT TO
BUILD HOUSING IN CALIFORNIA. UM
THE STATE HAS SPENT DECADES
UNDER INVESTING IN HOUSING, AND
I THINK ONLY REALLY THE LAST,
YOU KNOW, SIX OR SO YEARS. UM,
HAVE WE DONE SIGNIFICANT POLICY
CHANGE TO MAKE IT A BETTER, UM,
ENVIRONMENT? UM AND THE APPROVAL
PROCESS MUCH EASIER. UM TO
ACTUALLY GET, UM, PROJECTS. UM
ENTITLED. WE'VE DONE A LOT OF
WORK LEGISLATIVELY TO STREAMLINE
THAT PROCESS AS MUCH AS WE CAN.
THE GOVERNOR IS ALSO OBVIOUSLY
MADE A BIG INVESTMENTS. UM, OF
ONE TIME FUNDING, WHICH HAS BEEN
REALLY IMPORTANT, UM, HAVING
SAID THAT WE JUST REALLY STARTED
THAT WORK IN THE LAST COUPLE OF
YEARS. TRUTHFULLY WHEN YOU LOOK
AT THE GRAND TOTALITY OF OURS
OUR INVESTMENTS AS A STATE INTO
ACTUALLY COMBATING THE HOUSING
CRISIS. UM YOU KNOW, I THINK
WHAT I HEAR FROM NOW, UM, FROM
FOLKS IN THE COMMUNITY IS THAT
YOU KNOW THE CHANGES THAT WE
HAVE, UM, HAVE MADE IN TERMS OF
MAKING MORE LAND AVAILABLE WITH
BILLS LIKE 2011 AND OTHER, YOU
KNOW, SURPLUS LANDS ACT AND
OTHERS AS WELL AS THE PROCEDURAL
CHANGES, UM, AROUND ENTITLEMENT.
HAVE CREATED A SEA CHANGE FOR
THE PROCESS TO MAKE IT EASIER TO
BUILD HOUSING. UM, NOW THAT WE
HAVE THOSE THINGS, UM, WE HAVE
WE HAVE TENS OF THOUSANDS OF
SHOVEL READY PROJECTS WAITING
FOR FUNDING. WE ARE
OVERSUBSCRIBED. UM UH, ON IN
TERMS OF SHOVEL READY PROJECTS
WAITING FOR FUNDING. WE ARE
ABOUT TO RUN OUT OF MONEY FOR
AFFORDABLE HOUSING THIS YEAR. UM
SO JUST WHEN WE ARE SORT OF
TURNING THIS SHIP, AT LEAST IT
FEELS LIKE FROM MY PERSPECTIVE.
WE'RE JUST ABOUT TO TURN THIS
SHIP. WE'VE CREATED A BETTER
ENVIRONMENT. UM IN TERMS OF
STREAMLINING, WE'VE DONE ALL
THIS WORK, AND NOW WE'RE ABOUT
TO BE OUT OF MONEY FOR
AFFORDABLE HOUSING. UM YOU KNOW,
IS NOW THE TIME TO PULL BACK ON
THAT, OBVIOUSLY. I THINK, AS MY
COLLEAGUE SAID, WE FACE THE
REALITY OF OUR BUDGET, THOUGH.
UM AND WE HAVE TO BALANCE OUR
CHECKBOOK. UH WE THAT'S JUST
WHAT WE HAVE TO DO. SO UM, HOW
DO WE, UH, ENSURE THAT AT A TIME
WHEN I THINK WE ARE IN A GOOD
PLACE TO ACTUALLY BUILD
AFFORDABLE HOUSING THAT WE FIND
THE RIGHT WAYS TO DO THAT. UM
OBVIOUSLY, I THINK FOLKS KNOW I
HAVE A BOND. I'M TRYING TO GET
ON THE BALLOT. UM BECAUSE I DO
THINK WE NEED TO CONTINUE THESE
INVESTMENTS, BUT HOUSING AND
ENDING HOMELESSNESS CONTINUE TO
BE THE TOP ISSUES IN CALIFORNIA.
FOR OUR CONSTITUENTS. FOR MANY
OF OUR COMMUNITIES, UM, WE HAVE
DONE UM A LOT OF WORK TO MAKE IT
A BETTER ENVIRONMENT FOR THAT. I
WOULD LOVE TO HEAR FROM THE
PANELISTS ON. UM IS THAT WORKING
IS THE STREAMLINING THAT WE'RE
DOING? WORKING UM, IS THE MORE
AVAILABLE LAND THAT WE'RE
CREATING LEGALLY WORKING? ARE
THOSE THINGS WORKING THAT WE
HAVE BEEN SPENDING TIME DOING?
UM ARE THERE OTHER EFFICIENCIES
THAT WE CAN BE ENSURING OR
MODELING? UM AND FROM YOUR ALL'S
PERSPECTIVE? HOW DO WE DEAL WITH
THE FACT THAT THE BUDGET IS WHAT
IT IS IN A TIME WHEN ACTUALLY WE
NEED THE MONEY DESPERATELY, AND
WE'RE IN A BETTER PLACE TO
DELIVER. I THINK BETTER, UM,
PRODUCT CHEAPER, MORE AVAILABLE
HOUSING BECAUSE OF THE
STREAMLINING WORK THAT WE'VE
DONE, AND I JUST WANNA
APPRECIATE THE CHAIR FOR PULLING
TOGETHER THIS HEARING.
ABSOLUTELY THANK YOU. AND NOW
MOVING ON TO, UH, THE MAN OF THE
HOUR MR BUDGET CHAIR. PROFESSOR
GABRIEL UH, THANK YOU VERY MUCH.
MR. CHAIR. IT'S UM FIRST. LET ME
SAY THANK YOU FOR CONVENING US
ON THIS AND, UH, REALLY
APPRECIATE THE IMPORTANT ROLE
YOU'RE PLAYING NOW FOR, UH, FOR
OUR BODY FOR OUR COMMITTEE FOR
THE LEGISLATURE. UH THESE ISSUES
OF ACCOUNTABILITY AND OVERSIGHT
ARE TOTALLY CRITICAL. AND I
CAN'T THINK OF A BETTER PERSON
FOR THE JOB THAN TO HAVE YOU AT
THE FOREFRONT OF THIS, SO THANK
YOU. UM I. I CAN'T THINK OF A
MORE AND THANK YOU TO OUR
PANELISTS WHO ARE HERE. UH, I
CANNOT THINK OF A MORE TIMELY OR
IMPORTANT CONVERSATION THAT WE
NEED TO BE HAVING RIGHT NOW IN
THE STATE OF CALIFORNIA THAN
THIS ONE TO CONSIDER THE
INVESTMENTS THAT WE HAVE MADE IN
HOUSING AND TO WHICH OF OUR
POLICIES ARE WORKING, WHICH OF
OUR INVESTMENTS ARE WORKING AND
WHICH ARE NOT? UM AND WE KNOW
FROM EVERY PUBLIC OPINION POLL
THAT WE'VE SEEN, WE KNOW FROM
EVERY CONVERSATION THAT WE HAVE
UP HERE, UH, HOW CRITICALLY
IMPORTANT THESE ISSUES ARE TO
THE FOLKS THAT WE REPRESENT IN
THE STATE OF CALIFORNIA. UH, I
HAVE OFTEN REMARKED TO OUR
APPROPRIATIONS CHAIR THAT AS WE
LOOK AT DIFFERENT PUBLIC POLICY
CHALLENGES HERE IN THE STATE OF
CALIFORNIA, UH, IN SO MANY
INSTANCES, ALL ROADS LEAD BACK
TO HOUSING. UH AND OUR HOUSING
CRISIS AND THE CHALLENGE THAT WE
HAVE. SO, UM, WHAT I WANNA
UNDERSTAND TODAY IS HAVE THE
INVESTMENT. WE MADE. ARE THEY
WORKING? WHICH ONES ARE
EFFECTIVE, WHICH ONES HAVE NOT
PROVEN TO BE AS EFFECTIVE. HOW
MIGHT WE, UH, YOU KNOW, CHANGE
OUR STRATEGY, GIVEN THE
TREMENDOUS BUDGETARY CHALLENGES
THAT WERE THAT WERE FACING, UM
AND THAT WHAT ARE THE IMPORTANT
DATA AND METRICS THAT WE'RE
USING TO MEASURE THE
EFFECTIVENESS OF THOSE
INVESTMENTS? UM AND THEN,
FINALLY, I I'M I'M I'M
INTERESTED IN SPEED. UH, BOTH
HOW QUICKLY WE'RE ABLE TO MAKE
CHANGE AND IMPACT POLICY AND
CHANGE POLICY. UH, BUT ALSO, HOW
QUICKLY IS MONEY GETTING OUT
THAT THE LEGISLATURE HAS HAS
ALLOCATED IS THAT MONEY GETTING
OUT IN A TIMELY FASHION IN A
WAY? IT'S ACTUALLY GOING TO, UH
TO DRIVE POLICY CHANGES. UM AND
MOVE THE NEEDLE ON A POSITIVE,
UH, DIRECTION. UM AND THEN, YOU
KNOW, FOR OUR FOLKS WHO ARE HERE
WHO ARE ACTUALLY DOING THE HARD
WORK OF BUILDING HOUSING. UM YOU
KNOW, VERY CURIOUS FOR YOUR
THOUGHTS ABOUT WHAT CHANGES YOU
WOULD MAKE. IF YOU WERE SITTING
IN OUR SEATS. WHAT
RECOMMENDATIONS? YOU HAVE FOR
ALL OF US ABOUT HOW WE COULD
DRIVE, UM GOOD POLICY OUTCOMES
AND THEN UNDERSTANDING AGAIN.
THE BUDGET CHALLENGES WE FACE IS
THERE SOME LOW HANGING FRUIT OUT
THERE? ARE THERE THINGS THAT WE
COULD DO THAT DON'T HAVE BIG
PRICE TAGS THAT WE I. I MEAN AND
I AND CERTAINLY WE CAN TALK
ABOUT THINGS WITH PRICE TAGS.
BUT WHAT ARE WHAT ARE THE
RECOMMENDATIONS YOU HAVE FOR US,
BUT, UM, I WANTED TO BE HERE
BECAUSE FOR A NUMBER OF REASONS,
ONE BECAUSE I THINK THIS IS SUCH
AN IMPORTANT CONVERSATION. UH,
TWO, BECAUSE I AM, UM, PRETTY
CONCERNED ABOUT SOME OF THE CUTS
TO HOUSING AND THE GOVERNOR'S,
UH AND HOUSING PROGRAMS THAT ARE
WERE PROPOSED, UH, IN THE
ADMINISTRATION'S JANUARY 10
BUDGET, SO, UH, EAGER TO HAVE
THIS CONVERSATION IS EAGER TO
LEARN FROM ALL OF YOU, UH, AND
AGAIN JUST GRATEFUL TO OUR CHAIR
FOR BRINGING US TOGETHER. THANK
YOU, MR CHAIR. THANK YOU, MR
GABRIEL. UH, NOW I WANT TO MOVE
ON TO WELCOMING AND INTRODUCING
OUR WITNESSES FOR TODAY'S
HEARING. UH, BUT BEFORE I DO, SO
I WANT TO SET THE GROUNDWORK A
LITTLE. UH, THIS COMMITTEE IS
UNIQUE WHEN IT COMES TO
FORMATTING, SO WE WILL ASK THAT
THE PRESENT THE PRESENTATIONS BY
OUR WITNESSES TODAY. UH BE BRIEF
, UH AND WE WILL JUMP RIGHT INTO
THE FIRST WITNESS FROM THE
LEGISLATIVE ANALYST'S OFFICE
JUST AT THE STAGE FOR THE
DELIBERATIONS TODAY. UM, AFTER
THAT, THEN WE WILL GO. UH, FROM
MY RIGHT DOWN WITH THE
INTRODUCTIONS OF THE REMAINDER
OF THE WITNESSES. SO WHEN MISS
BELLA IS READY, UH, PLEASE
BEGIN. THANK YOU, MISTER CHAIR
GINNY BELLA, WITH THE
LEGISLATIVE ANALYSTS OFFICE. WE
PREPARED A HANDOUT FOR YOU TODAY
. UM, AS BACKGROUND FOR YOUR
DISCUSSION, IT SHOULD BE IN YOUR
PACKET, AND IT'S ALSO AVAILABLE
PUBLICLY ON THE LEGISLATIVE
ANALYSTS WEBSITE. THEY HAND OUT
IS REALLY A SYNTHESIS OF DATA
THAT WE RECEIVED FROM THE
DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT AND THE
CALIFORNIA TAX CREDIT ALLOCATION
COMMITTEE. IT'S REALLY PULLING,
UM, A SUBSET ON A SUBSET OF
PROGRAMS AND PROVIDING
INFORMATION ON FUNDING LEVELS
AND UNITS ASSISTED, UH, BY THAT
FUNDING, SO IT'S REALLY COMING
FROM THE DEPARTMENTS AND FROM
THE AGENCIES. IT DOES NOT
INCLUDE ALL OF THE PROGRAMS THAT
THEY OVERSEE AND AS REALLY
FOCUSES ON THE ONES THAT HAVE
RECEIVED LARGER INFUSIONS OF
STATE FUNDING OVER THE LAST FEW
YEARS, NOT THOSE THAT ARE
RECEIVING FEDERAL FUNDING. UH
JUST A FEW CAUTIONARY NOTES AS
YOU RECE AS YOU REVIEW THE
INFORMATION. THEY'RE LAID OUT ON
PAGE SIX OF OUR HANDOUT. BUT
REALLY, YOU HAVE TO THINK ABOUT
THIS INFORMATION AS POINT IN
TIME. SOME OF THESE PROGRAMS ARE
CURRENTLY IN THE PROCESS OF
AWARDING FUNDING. AND SO THE
INFORMATION COULD BE CHANGING
DAY BY DAY IN TERMS OF THE
ESTIMATE OF THE UNITS ASSISTED
AND THE FUNDING OUT, SO JUST 11
THING TO THINK ABOUT AS YOU'RE
REVIEWING THE NEXT IS, UM WE
REALLY EMPHASIZE THIS TERM UNITS
ASSISTED, AND THAT'S BECAUSE, AS
YOU KNOW, AFFORDABLE HOUSING
UNITS REALLY BRAID TOGETHER
FUNDING FROM A VARIETY OF THE
PROGRAMS AND SO TO THINK ABOUT,
UM, EACH PROGRAM WE THINK ABOUT
IT AS UNITS ASSISTED RATHER THAN
CREATED BECAUSE NÓ ONE PROGRAM
IS COMPLETELY CREATING THAT
UNIT. AND SO YOU COULDN'T GO
THROUGH THE HANDOUT AND ADD UP.
ALL OF THE UNITS ASSISTED
BECAUSE THAT WOULD BE A REAL
OVERCOUNT OF THE NUMBER OF
UNITS. THAT SAID, UH, OVER THE
WEEKEND, THE DEPARTMENT WAS ABLE
TO, UH, PRODUCE AN ESTIMATE OF
THE UNDATED AS, UM, AN ESTIMATE
OF THE UNDATED NUMBER OF UNITS,
UH, PRODUCED SINCE 2018. AND
THAT ESTIMATE IS JUST SHORT OF
57,000 FOR THE DEPARTMENT OF
HOUSING AND COMMUNITY
DEVELOPMENT, WHICH IS ABOUT 2000
MORE THAN THIS TIME LAST YEAR.
WE HAVEN'T HAD A CHANCE TO FULLY
REVIEW THAT ESTIMATE AS IT CAME
OUT OVER THE WEEKEND, BUT WE ARE
JOINED TODAY WITH PANELISTS FROM
THE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT. THE FINAL
NOTE WE WOULD MAKE AS YOU'RE
LOOKING THROUGH THE HANDOUT IS
THAT WHEN YOU THINK ABOUT A UNIT
THAT'S CREATED OR ASSISTED AND
CREATED TO THINK ABOUT IT, UM AS
SERVING, OBVIOUSLY MORE THAN ONE
PERSON OVER ITS AFFORDABILITY
TERM AT ANY MOMENT, MORE THAN
ONE PERSON LIVES IN THAT UNIT,
AND THAT UNIT WILL TURN OVER A
NUMBER OF TIMES, AND IT'S
AFFORDABILITY TERM. UM IN OUR
DISCUSSIONS WITH THE DEPARTMENT.
WE UNDERSTAND THAT THEY THINK
ABOUT A LOT OF THE UNITS AS
SERVING 17.5 PEOPLE ON AVERAGE
OVER THEIR AFFORDABILITY TERM.
THAT CONCLUDES MY OPENING
REMARKS. I AM JOINED HERE WITH
EXPERTS FROM THE ADMINISTRATION
AND FROM THE FIELD TO ANSWER
QUESTIONS. THANK YOU SO MUCH.
WONDERFUL THANK YOU. AND IF WE
CAN MOVE, UH, DOWN TO THE RIGHT,
JUST MR NAME AND, UH AND
POSITION THAT YOU ARE. THANK
YOU. THANK YOU. ZACH OLMSTEAD. I
AM THE CHIEF DEPUTY DIRECTOR AT
THE DEPARTMENT OF HOUSING AND
COMMUNITY. AND OH, THANK YOU, UM
I'M EXECUTIVE DIRECTOR OF
CALIFORNIA'S TAX CREDIT
ALLOCATION COMMITTEE, AND THAT
CALIFORNIA'S DEBT LIMIT
ALLOCATION COMMITTEE ALLOCATING
FEDERAL AND STATE RESOURCES FOR
AFFORDABLE HOUSING. SORRY GOOD
MORNING, LINDA MANDOLINI
PRESIDENT AND èC E Ó OF EDEN
HOUSING, ONE OF CALIFORNIA'S
OLDEST NONPROFIT, AFFORDABLE
HOUSING DEVELOPERS. WE OWN
12,000 UNITS STATEWIDE. UH, AND
PLEASED TO BE HERE TODAY. I ALSO
AM THE CHAIR OF THE CALIFORNIA
HOUSING CONSORTIUM'S POLICY
COMMITTEE. GOOD MORNING. JEFF
SCHRADER. I'M SENIOR VICE
PRESIDENT WITH PONDEROSA HOMES.
WE'RE A PRIVATELY HELD HOME
BUILDER AND BUILDING HOMES IN
CALIFORNIA FOR OVER 50 YEARS,
AND LAST YEAR I WAS CHAIRMAN OF
THE CALIFORNIA BUILDING INDUSTRY
ASSOCIATION. I'M CHAIRMAN. I'M A
WRITER THIS YEAR STILL REALLY
INVOLVED IN SOME ISSUES
SURROUNDING BUILDING MORE
HOUSING. GOOD MORNING. MY NAME
IS LAURA ARCHULETA AND I HAVE
THE HONOR OF LEADING A 30 YEAR
OLD NONPROFIT ORGANIZATION
CALLED JAMBOREE HOUSING
CORPORATION. WE ARE
HEADQUARTERED, AS YOU MIGHT
GUESS. IN IRVINE, CALIFORNIA
WITH OFFICES IN SACRAMENTO, AND,
UH, SANTEE HAVING, UH, BEEN
DOING THIS WORK FOR OVER 35
YEARS PRIOR, UH TO JAMBOREE I
WORKED IN THE CITY OF ANAHEIM
GARDEN GROVE IN PALMDALE DOING
HOUSING ELEMENTS, FIRST TIME
HOME BUYER PROGRAMS AND
PRODUCING AFFORDABLE HOUSING AND
HAPPY TO BE HERE. THANK YOU. AND
ONCE AGAIN WELCOME EVERYONE, UH,
WHETHER IT'S NEAR OR FAR REALLY
APPRECIATE YOU ALL JOINING US
THIS MORNING ON A MONDAY IN
SACRAMENTO TO HAVE THIS A VERY
TIMELY DISCUSSION ON HOUSING.
UH, WE WILL NOW MOVE ON TO
COMMITTEE QUESTIONS. BUT BEFORE
WE DO THAT, I'D LIKE TO TAKE AN
OPPORTUNITY TO ASK A FEW
QUESTIONS OF MY OWN TO SET THE
FOUNDATION AND THEN MOVE ON TO
THE DELIBERATION. UH, SO FOR HÌ
èC Dð, UH WE ARE AT A PIVOTAL
POINT IN AFFORDABLE HOUSING.
PREVIOUS BONDS HAVE BEEN
EXHAUSTED, AND WE CANNOT
LEVERAGE GENERAL FUND DOLLARS,
AND THE GOVERNOR HAS ALSO ZEROED
OUT A BILLION DOLLARS IN FUNDING
FOR HOUSING IN THIS PROPOSAL.
WITH THIS LOOMING HOUSING CLIFF.
AND AN ONGOING HOUSING CRISIS.
WE REALLY DO NEED TO COURSE
CORRECT, UH, THAT STARTS BY
UNDERSTANDING WHICH PROGRAMS
HAVE YIELDED THE MOST EFFECTIVE
RESULTS AND WHICH HAVE NOT, UH
AND I MENTIONED EARLIER IN MY
COMMENTS A SUBSTANTIALLY LARGE
NUMBER. UH, $18.5 BILLION OF
INVESTMENTS TOWARDS HOUSING IN
THE LAST FIVE YEARS. UH AND WHEN
WE TALK ABOUT THAT, IT'S WITH A
B. RIGHT SO IT'S A LARGE AMOUNT
OF MONEY. UH, SO CAN YOU PLEASE
TELL US HOW MANY UNITS HAVE BEEN
PRODUCED AS A RESULT OF THAT?
$18.5 BILLION, SINCE, UH IT'S
BEEN ALLOCATED. SURE UH, ZACH
OLMSTEAD AT HÌ èC Dð. UM AND
THAT I THANK YOU TO THE L A Ó
FOR KIND OF HIGHLIGHTING A
LITTLE BIT OF WHAT I CAN
EXPLAIN. I THINK YOU GUYS HAVE
BEFORE YOU, UM HOUSING HOUSING.
KS IS A LITTLE BIT COMPLEX, AND
SO IT'S NOT AS SIMPLE AS ADDING
UP ALL THE STUFF THAT IS
ASSISTED. BUT AND MANY SOURCES,
ESPECIALLY BECAUSE OF THE WORK
OF THIS LEGISLATURE HAVE
ACTUALLY BEEN. WE'VE BEEN ASKED
TO CONSOLIDATE AND COMBINE THEM
THROUGH, LIKE KIND OF MÀ BIGGER
NOTICES OF FUNDING AVAILABLE
THAT COMBINES SEVERAL PROGRAMS,
BUT ALL TOLD, WE'VE SEEN THE
STATE INVESTMENTS. UH, ABOUT
57,000 UNITS, UH, ASSISTED. UH,
MANY OF THOSE HAVE ALREADY BEEN
COMPLETED AND CONSTRUCTED, UH,
OVER 10,000 OF THEM. UH, I THINK
IT'S ABOUT 22,000 THAT ARE
CURRENTLY IN CONSTRUCTION AND
THE REMAINDER, UH, HAVE BEEN
AWARDED BUT HAVE NOT YET BROKEN
GROUND WITH CONSTRUCTION. SO
MAYBE THEY'RE SEEKING THEIR
FINAL PIECE OF FINANCING THROUGH
THE TAX CREDITS OR BONDS THAT,
UH, ARE ADMINISTERED BY MARINA
HERE. SO THAT IS, UH, PART OF
THE STORY. WE HAVE A NUMBER, UM,
OF FUNDING ANNOUNCEMENTS ABOUT
TO BE ANNOUNCED AND RELEASED
THAT AREN'T REFLECTED IN THAT
DATA SO FROM LAST YEAR UM, WHAT
WE CALL OUR MULTIFAMILY
SUPERNOVA, WHICH COMBINES
SEVERAL PROGRAMS. THOSE AWARDS
ARE KIND OF IMMINENTLY ABOUT TO
BE ANNOUNCED. SO SEE THAT NUMBER
JUMP BY ABOUT 5000 OR SO, UH,
AND IT DOESN'T COUNT ACCOUNT FOR
FEDERAL INVESTMENTS, EITHER. UM
AND SO THAT'S WHY YOU MIGHT SEE
A LAST YEAR WHEN WE PROVIDED
SOME DATA. THAT NUMBER INCLUDED
SOME OF THE FEDERAL PROGRAMS.
THEY HAVE BROKEN THEM UP
DIFFERENTLY NOW BECAUSE I KNOW
YOUR INTEREST IS IN THE STATE
PROGRAMS. SO WE HAVE ANOTHER
PROBABLY 4000 UNITS THAT HAVE
BEEN ASSISTED ON SOME OF THE
MAJOR FEDERAL, UH, PRODUCTION
PROGRAMS. WELL, THANK YOU FOR
THAT. SO WE'RE TALKING 18.5
BILLION ABOUT 57,000 UNITS THUS
FAR. UH I'M A VISUAL. LEARNER SO
I. I LIKE TO SEE CHARTS AND
GRAPHS AND PICTURES. UM CAN YOU
DESCRIBE SO THAT WE GET A BETTER
SENSE OF THE COMPONENTS OF COST?
MAYBE IN IN SOME SORT OF PIE
CHART, RIGHT? A PERCENTAGE OF
THAT 18.5 BILLION WHAT HAS GONE
TOWARDS ADMINISTRATIVE EFFORTS?
CONSTRUCTION LABOR? UH WHAT
MONEY IS STILL IN THE PIPELINE?
RIGHT UH, IF YOU CAN GIVE US UH
UH, A SYNOPSIS OF THAT THAT
WOULD BE HELPFUL. SO FOR THE
MOST PART, I MEAN, OUR
ADMINISTRATIVE COSTS ARE CAPPED
AT 5% FOR ALL THESE PROGRAMS,
BUT, UM, FOR THE MOST PART WHAT?
WHAT FOLKS ARE SEEKING THROUGH
HÌ èC Dð S¼ PROGRAMS AND THERE
ARE SOME VARIATIONS, WHICH I'M
HAPPY TO ELABORATE ON. FOR THE
MOST PART, THEY'RE GETTING
PERMANENT FINANCING, AND THEY'RE
GETTING A PRIVATE A CONS A
CONSTRUCTION LOAN FROM A BANK TO
DO THE ACTUAL CONSTRUCTION AND
THEN THAT GETS PAID OFF THROUGH
A PERMANENT LOAN AT THE END. UM
SO FOR THE MOST PART, OUR
FUNDING IS KIND OF FIRST MONEY
IN SO TO SPEAK. UM THE GAP
FINANCING THAT IS REQUIRED TO
COMPLETE THAT CONSTRUCTION. UM
AND SO THEY ARE PARTNERING,
OFTEN WITH MANY OTHER SOURCES,
UH, THEY'RE LEVERAGING THAT FUND
WITH LOCAL OTHER FEDERAL SOURCES
. UM A DIFFERENCE WOULD BE THE
HOME KEY PROGRAM IN WHICH THE,
UH, DEPARTMENT ESSENTIALLY IS
PROVIDING 100% OF THE
ACQUISITION COST AND OFTEN EVEN
SOME, UM, A NUMBER OF YEARS OF
OPERATING SUPPORT WITHIN THAT
PROGRAM, SO THAT'S A UNIQUE
PROGRAM. UH, A LITTLE BIT
DIFFERENT. IT'S NOT A TYPICAL
NEW CONSTRUCTION PROGRAM. UM
WHERE IT'S MORE OF AN ADAPTIVE
REUSE. WE WE'RE SEEKING TO
ACQUIRE AND THAT IS ABOUT ALMOST
4 BILLION THAT THAT WILL HAVE
ADMINISTERED. UH, WE MAKE THE
FINAL AWARDS THIS SPRING. SO FOR
THE MOST PART TRY AND DO THE PIE
CHART IS A LITTLE CHALLENGING,
CERTAINLY, BUT OUR OUR OUR
FUNDING COMES IN AND THEN IT
GETS PRIVATE BANK LOANS, FOR
EXAMPLE, AND CERTAINLY SOME OF
THE DEVELOPERS MIGHT BE ABLE TO
GIVE YOU SOME TEST CASES. THEY
MIGHT BE GOOD, GOOD EXAMPLES OF
WHAT YOU'RE TALKING ABOUT, UM
AND SO AND THEN IT IS TYPICALLY
PARTNERED. ALMOST EVERY
AFFORDABLE HOUSING DEAL IS
SEEKING TAX CREDITS OR BONDS FOR
THAT FINAL FOOTING AND N P, SO,
UM THEY'RE TRYING TO SECURE FOR
THE MOST PART THE MAJORITY OF
THEIR FUNDS. GIVE OR TAKE
THROUGH THROUGH HÌ, èC Dð LOCAL
OR FEDERAL RESOURCES. THEY'RE
OFTEN COBBLING TOGETHER. YOU
KNOW 5 TO 10. DIFFERENT SOURCES.
UH, THAT'S WHY WE'VE TRIED TO
CONSOLIDATE WHERE WE CAN ON
THESE PROGRAMS. UH, BUT WE ARE
OVERSUBSCRIBED FOR THE MOST PART
IN EACH AND EVERY ONE OF OUR
PROGRAMS, SO THERE IS CERTAINLY
A DEMAND FOR THAT TYPE OF
FINANCING, WHICH I'M SURE SOME
OF THE COLLEAGUES IN THIS FIELD
LIKE TO LEVERAGE ON THANK YOU.
YEAH, AND IF WE COULD ALSO HAVE
SOME OF THE DEVELOPERS, UH,
ANSWER THAT QUESTION IN IN IN
YOUR EXPERIENCE. HOW THAT PIE
CHART LOOKS. WELL, I YEAH, I
WOULD JUST SAY THAT, UM, E.
EVERYTHING YOU'VE HEARD HERE IS
WHAT WE EXPERIENCE A COUPLE
THINGS. UM, I WOULD SAY, UH HÌ
èC Dð S¼ MONEY IS FOR MONEY AND
FROM A COMMITMENT, BUT NOT FOR
MONEY IN ACTUALLY, AND THAT'S A
BIG COST, SO THAT'S TO ME.
THAT'S A LOW HANGING FRUIT RIGHT
IS IF HÌ èC Dð COULD COME IN
DURING CONSTRUCTION AND THE
OTHER THING I'D SAY IS THAT, UM
THAT THE PIE CHART KEEPING IN
MIND WHEN YOU LOOK AT ALL THESE
DIFFERENT SUBSIDIES THAT ARE
GOING IN EACH SUBSIDY COSTS
AROUND $10,000 PER UNIT, SO IF
YOU HAVE, UM UH HÌ èC Dð YOU
HAVE, UH Tð CÁC YOU HAVE CITY
MONEY AND ALL OF THAT. THAT'S
JUST GONNA ADD UP TO BE ABOUT 50
IF YOU HAVE FIVE SOURCES ABOUT
$50,000, SO I DO THINK THERE'S
SOME LOW HANGING FRUIT. I WOULD
ALSO ENCOURAGE YOU AGAIN. HAVING
BEEN STAFF AT THE CITY LEVEL.
YOU HAVE REALLY SMART PEOPLE
WORKING IN YOUR HOUSING
PROGRAMS. ASK IF THEY WERE KING
OR QUEEN. WHAT CHANGES WOULD
THEY MAKE TO THE PROGRAM TO MAKE
IT MORE EFFICIENT BECAUSE THERE
IS A LOT OF MONEY GOING OUT, AND
I THINK THERE ARE EFFICIENCIES
THERE, AND THERE ARE
EFFICIENCIES THAT COULD, UM HELP
IN A BIG WAY. THE OTHER PROGRAM,
I'D POINT YOU TO LOOK AT, AND
EVERYONE HATES THE R WORD. BUT
IN OLD DAYS REDEVELOPMENT YOU,
YOU KNOW YOU TALK ABOUT THE, UH,
AN ASSEMBLY MEMBER. WICKED ABOUT
THE MONEY COMING IN NOW, BUT
BACK WHEN I STARTED AGAIN THE 35
YEAR HISTORY. IT WAS A BILLION
TO $2 BILLION A YEAR IN
AFFORDABLE HOUSING. AND I
REMEMBER SITTING UP HERE WITH
THE LEGISLATURE LEGISLATOR
SAYING, IF YOU DO AWAY WITH THIS
HOUSING PRODUCTION IS GOING TO
START STOP. AND HERE WE ARE,
WHAT 14 YEARS LATER, 1012 YEARS
LATER, SO THANK YOU. I WANNA ADD
, UM EDEN HAS WORKED WITH PRETTY
MUCH EVERY ACRONYM HÌ èC Dð HAS
EVER INVENTED WHERE 55 YEARS
OLD. WE HAVE AN AGING PORTFOLIO.
AND WE THINK IT'S REALLY
IMPORTANT THAT, UM, THE
LEGISLATURE CONTINUES TO INVEST.
WE THINK, DEPENDING ON HOW MUCH
FUNDING THE LOCAL GOVERNMENT HAS
. IT'S BETWEEN 100 AND $6300 IN
STATE. $8 PER UNIT THAT WE NEED
FROM STATE PROGRAMS. WE LIKE THE
ONES THAT ARE BROADER AND MORE
FLEXIBLE, LIKE MP AND I. I
BECAUSE YOU CAN USE THEM ACROSS
ALL OF THE JURISDICTIONS. WE
ALSO THINK YOU HAVE TO ENABLE
THE LOCALS TO RAISE THEIR OWN
MONEY. AS MY COLLEAGUE MENTIONED
THAT THE LOSS OF REDEVELOPMENT
HAS REALLY LEFT THE LOCALS IN A
BIND. A èC A ONE PROBABLY
STREAMLINED IS GOING TO BE SUPER
IMPORTANT IS PARTICULARLY FOR
THE BAY AREA. WHERE WHERE WE ARE
BASED, UM BECAUSE WE REALLY NEED
LOCAL DOLLARS. WE NEED MORE
MONEY FROM THE STATE. IF THE
LOCALS CAN'T GENERATE IT, IT'S
REALLY SIMPLE, SO THANK YOU. AS
A MARKET RATE HOUSING BUILDER. I
DON'T HAVE A LOT OF EXPERTISE ON
AFFORDABLE HOUSING ISSUES.
HOWEVER I AM EXPERIENCED WITH
IT. WE HAVE DONE AN AFFORDABLE
HOUSING PROJECT ON OUR OWN WITH
JUST TAC DOLLARS. AND I'M ABLE
TO DO THAT. WITH ENOUGH SCALE.
GIVE ME ENOUGH LAND AND ENOUGH
UNITS I CAN BUILD. AFFORDABLE
HOUSING WITH JUST TAC MONEY
ONLY. OK, SO THAT'S SOMETHING WE
CAN TALK ABOUT LATER IF YOU WANT
TO, BUT THERE ARE A LOT OF
ISSUES SURROUNDING THE COST OF
HOUSING I'M HERE TO TALK ABOUT,
UM, BUT THESE TWO EXPERTS ARE
MUCH MORE INFORMED THAN I AM ON
BUILDING AFFORDABLE HOUSING ON A
REGULAR BASIS. UM, I JUST WANNA
ADD ONE SORT OF CLARIFYING THING
TO LIKE THE TOTAL AMOUNT THAT
HAS GONE OUT. UM OF THAT THAT
$18 BILLION ONLY A PORTION OF
THAT ARE LIKE THE HOMES THAT
THAT MR SAID HERE MENTIONED THAT
WERE PRODUCED. SOME OF THAT IS
PASSED THROUGH MONEY TO LOCAL
GOVERNMENTS. LOCAL PLANNING
GRANTS. SOME OF THAT IS FEDERAL
PASS THROUGH MONEY. CDBG FUNDS.
HOME FUNDS THAT AGAIN AREN'T
CAPTURED BY THE NUMBER OF UNITS
THAT MR OLMSTED ARTICULATED. SO
I JUST JUST TO MAKE IT SEEM LIKE
THEY'RE IS MUCH MORE A
MULTIPLIER OF UNITS THAT ARE NOT
CAPTURED FULLY IN THE PICTURE OF
THAT 18 BILLION TO THE 50. WHAT
DID YOU SAY? 60,000 UNITS OR SO?
AND I DO APPRECIATE THAT. BUT
THEN THAT DOESN'T GIVE US A
CLEAR SENSE OF HOW SEVERE THE
HOUSING CRISIS IS. RIGHT SO ARE
WE IN A HOUSING CRISIS, ARE WE
NOT? I THINK WE HAVE TO GO WITH,
UH, THE NUMBERS THAT WE DO HAVE
NOW, UH, WE KNOW THAT 18.5 HAS
GONE INTO THAT 57 IS PRODUCED
AND CANDIDLY, CALIFORNIANS ARE
STRUGGLING WHEN IT COMES TO
AFFORDING HOUSING ACROSS THE
STATE. SO REALLY DO APPRECIATE
THAT PERSPECTIVE, ALSO, UH,
MOVING ON TO ASSEMBLY MEMBER
SHARON CORK SILVA. I BELIEVE SHE
ASKED SOME QUESTIONS. THANK YOU.
YEAH, I'M JUST TRYING TO GET A
PICTURE OF PRICE PER UNIT AND
JUST LET'S JUST LOOK AT THE HOME
KEY PROGRAM. I KNOW THERE'S A
LOT OF OTHER PROGRAMS, BUT ON
THE HOME KEY PROGRAM, WHICH, UH,
WE KNOW IS A SIGNATURE PROGRAM
OF THE GOVERNOR. WHAT WOULD BE
THE AVERAGE PRICE? WHICHEVER WAY
IT'S FUNDED, UM WHETHER IT'S
THROUGH ADDITIONAL, UH,
RESOURCES COMING IN OR JUST
STATE DOLLARS. WHAT IS THE
AVERAGE PRICE OF THAT UNIT AND I
KNOW THAT THERE IS SOME
WRAPAROUND SERVICES THAT GO INTO
THAT FUNDING, BUT THE AVERAGE
PRICE IS THE ONE QUESTION I
WOULD LIKE TO KNOW. AND THEN THE
SECOND QUESTION IS, CAN WE BUILD
THESE UNITS AT A LESS EXPENSIVE
COST? UH, THERE'S ALL TYPES OF
HOUSING THAT SOME OF US SEE
THROUGH OUR FEEDS BECAUSE WE
CLICK WE SEE THESE PREFABS. WE
SEE ALL KINDS OF HOUSING. SO IS
THERE A WAY TO BUILD THESE, UH,
TYPES OF UNITS FOR LESS MONEY?
SO HOW MUCH IS THE AVERAGE HOME
KEY? AND CAN WE DO IT FOR? UH,
CHEAPER. I CAN I CAN START WITH
THE HUNKY QUESTION. UM AND
CERTAINLY MAKE SURE THAT ALL OF
YOU GET, UH WE HAVE A WE HAVE A
DASHBOARD FOR ALL THIS
INFORMATION ON OUR WEBSITE, SO
YOU KNOW YOU MIGHT WANNA CUT AND
SLICE IT A NUMBER OF DIFFERENT
WAYS BECAUSE YOU CAN SEE
CERTAINLY VARIATIONS ACROSS OUR
FUNDING ROUNDS ACROSS REGIONS,
ALL THAT SORT OF THING, BUT BUT
TYPICALLY, WE'RE SEEING HOMEY
COME IN, BUT AT LEAST PROBABLY
HALF THE COST OF NEW
CONSTRUCTION. IT'S GOTTEN A
LITTLE BIT MORE EXPENSIVE, UH,
IN THE SUBSEQUENT ROUNDS,
PERHAPS BECAUSE IF YOU REMEMBER
IN OUR FIRST ROUNDS, WE WERE
REALLY ABLE TO TAKE ADVANTAGE OF
DISTRESSED ASSETS DURING THE
PANDEMIC, RIGHT AND WE WERE
HELPING TO PURCHASE FOR THE MOST
PART. IT WAS AN EXCLUSIVELY BUT
FOR THE MOST PART, THE MAJORITY
WAS THE PURCHASE OF HOTELS,
MOTELS THAT STILL DOES CONTINUE
TO BE THE MORE UH, THE MOST
UTILIZED KIND OF INTERVENTION.
BUT YES, YOU CAN IMAGINE AS
WE'VE COME OUT OF THE PANDEMIC.
SOMETIMES PRICES ARE A LITTLE
BIT HIGHER. YOU SEE, PURCHASE
PRICE BE A LITTLE HIGHER FOR
ONES THAT ARE MORE MOVING READY
THAN YOU SEE ONES. REQUIRE SOME
REHABILITATION. UH, MAYBE THE
PURCHASE PRICE IS LESS, BUT
THERE'S SOME COST FOR
REHABILITATION. BUT WE CERTAINLY
ARE STILL SEEING IT FOR THE MOST
PART IN THE 200 TO THREE 100,000
RANGE. UH, THERE COULD LIKE I
SAID THERE COULD BE SOME
VARIATION BASED ON THE USE OR
THE INTERVENTION THERE. UH, AND
WE'RE SO WE ARE SEEING IT COME
IN SIGNIFICANTLY LESS THAN YOU
CONSTRUCTION. WE DO HAVE A
HANDFUL. UH, WE TRY TO BE VERY
FLEXIBLE WITH HOME KEY. SO WE DO
HAVE A HANDFUL OF, UH, PROJECTS
THAT DO ALLOW FOR WHAT WE CALL
NEW CONSTRUCTION. BUT WE ASKED
THAT TO HAPPEN WITHIN A YEAR, SO
YOU MIGHT SEE SOME MORE, UH,
INNOVATIVE KIND OF MODEL MODEL.
LIKE, UM THERE'S ONES THAT
UTILIZED, UH, REFORMING A
SHIPPING CONTAINERS. THOSE SORTS
OF LIKE, REALLY QUICK NEW
CONSTRUCTION. UM BUT FOR THE
MOST PART, IT'S KIND OF AN
ADAPTIVE REUSE, ACQUISITION AND
REHAB. SO ABOUT 250 TO 300,000
ON A HOME KEY. WHAT ABOUT
AFFORDABLE UNIT? THAT IS THE
WHAT WE INVEST IS NOT AT THAT
LEVEL, RIGHT? SO YOU MIGHT, YOU
KNOW, PROBABLY BEST TO MAYBE
LOOK AT A PROJECT BY PROJECT
BASIS. SO LIKE THE TOTALITY OF
TOTAL DEVELOPMENT COSTS MAY NOT
BE IN A NEW CONSTRUCTION PROGRAM
AT HÌ. A Dð IS NECESSARILY
CONTRIBUTING TO, UH, AS WAS
NOTED, WE MIGHT BE THAT FIRST
MONEY IN COMMITTED AND THEN
THEY'RE PARTNERING, MAYBE WITH
OTHER LOCAL MONEY AND TAX
CREDITS AND THE LIKE, SO YOU
KNOW OUR INVESTMENT MAY BE THE
SAME OR SIMILAR EVEN LESS ON A
PER UNIT BASIS, BUT THAT, BUT
THAT MIGHT NOT BE THE TOTAL
DEVELOPMENT COST. I THINK, AS AS
WAS NOTED THEY'RE SEEKING MAYBE
100 TO 200 OR THREE 100,000 FROM
US PER UNIT. BUT THAT MAY NOT BE
THE IT WON'T BE THE TOTAL I
THINK THE JAMBOREE WANTED TO
PLEASE HØI. THANK YOU. YEAH, I
WAS JUST WE'VE BEEN REALLY
ACTIVE IN HOME KEY, AND IT'S
BEEN VERY SUCCESSFUL FOR US TO
BE ABLE TO MOVE QUICKLY ON THESE
PROJECTS. SO WE'VE, UH, PROBABLY
BEEN AROUND 250 UP TO 500 WHEN
WE'VE BEEN UP IN SANTA CLARA
COUNTY AND BUYING DEVELOPMENTS
THAT ALREADY HAVE KITCHENETTES
IN THEM SO WE CAN QUICKLY MOVE
PEOPLE RIGHT OFF THE STREET INTO
THOSE UNITS. ONE OF THE KEYS
WITH HOME KEY THAT IS A HUGE
COST SAVER IS THE TIME. WHEN YOU
GOT A HOME KEY ALLOCATION. YOU
ALSO GOT YOUR ENTITLEMENTS WITH
IT, AND THAT IS A HUGE
DIFFERENCE THAN BUILDING NEW
CONSTRUCTION. THE COST OF TAKING
A PROJECT THROUGH ENTITLEMENT AS
YOU ALL ARE AWARE, IS, UM, TIED
UP IN THE TIME THAT IT TAKES
AND, UM SO THAT WAS A BIG
SUCCESS, I WOULD SAY FOR HOME
KEY ON AN AVERAGE AFFORDABLE
HOUSING UNIT, NOT HOME KEY. YEAH
UNFORTUNATELY, I WOULD, AND
LINDA PROBABLY HAS SOME NUMBERS,
BUT I'D SAY WE'RE PROBABLY
CLOSER TO 400,000 TO 750,000 AND
ARE MORE COASTAL REGIONS. I
THINK THE MOST, UH, PROBABLY THE
HIGHEST COST LOCATIONS ARE IN
THE INNER BAY AREA. SAN
FRANCISCO. UH REALLY HIGH COST?
UM, I. I JUST WANNA TALK TO
MODULAR. UH, WE JUST COMPLETED A
MODULAR HOUSING PROJECT WITH
FACTORY Ó S¼, WHICH IS
SIGNATORY TO THE CARPENTERS
UNION, UH, ON A PRICE BY PRICE
BASIS, IT WAS SLIGHTLY MORE COST
EFFECTIVE THAN NEW CONSTRUCTION.
BUT IT WAS FASTER. AND SO THE
SPEED ACTUALLY MATTERS,
ESPECIALLY NOW IN THE INTEREST
RATE ENVIRONMENTS THAT WE'RE IN.
BECAUSE TIME IS REALLY MONEY FOR
THESE PROJECTS AND I. I CAN ONLY
ECHO LAURA'S COMMENT ABOUT
STREAMLINING WHERE WE HAVE
ENTITLEMENTS OR DIRECT ROUTES
LIKE HOME KEY OR THE ACCELERATOR
FUND WHERE WE DID NOT HAVE TO
WHEN WE WERE BUILDING HOUSING
FOR THE HOMELESS GO THROUGH ANY
PROTRACTED ENTITLEMENT PROCESS.
IT'S JUST SO MUCH QUICKER AND
MUCH, MUCH MORE CHEAP AND MUCH
MORE COST EFFECTIVE AND THEN THE
ACQUISITION OF EXISTING
STRUCTURES IN MOST CASES, NOT IN
THE CASE OF OFFICE BUILDINGS IS
ALSO SUBSTANTIALLY LESS
EXPENSIVE AND EXTENDED STAY
MOTEL. RESIDENTS IN THOSE ARE
REALLY THE MOST COST EFFECTIVE
KINDS OF PROJECTS YOU CAN DO,
BUT THEY ARE LIMITED TO THE
TYPES OF FAMILIES THEY CAN SERVE
. UH, THEY'RE NOT VERY BIG. SO
IF YOU'RE IN A RURAL AREA WHERE
YOU HAVE LARGE FAMILIES, THAT'S
NOT AN OPTION FOR THOSE THOSE
BUILDINGS, SO JUST A COMMENT
ABOUT WHO YOU SERVE WITH THOSE
BUILDINGS. IF I MAY, I DO THINK
IT IMPORTANT CONSIDERATION FOR
YOU ALL TO THINK OF, UH IN TERMS
OF PUBLIC BENEFIT IS WHEN AT
LEAST FOR HÌ èC Dð FUNDED
PROJECTS, BUT FOR ALMOST ALL
AFFORDABLE HOUSING PROGRAMS, WE
ARE BUYING 55 YEARS OF
AFFORDABILITY. SO WHEN YOU HEAR
THAT COST YOU KNOW, THAT IS THE
ONE TIME COST PER UNIT. BUT WE
ARE GETTING THAT BENEFIT OVER
GENERATIONS AND MANY, MANY
HOUSEHOLDS, AND SO IT'S NOT AS
SIMPLE TO SAY. HEY IT COSTS THIS
MUCH, AND WE GOT ONE HOUSEHOLD
BECAUSE YOU'RE NOT SERVING ONE
HOUSEHOLD. YOU'RE SERVING MANY,
MANY HOUSEHOLDS, MANY, MANY
PEOPLE OVER THE COURSE OF THAT
INVESTMENT, SO IT IS AN UPFRONT
ONE TIME COST, OBVIOUSLY NEW
CONSTRUCTION. BUT I DON'T WANT
TO DISCOUNT YOU KNOW THE IMPACT
THAT MAKES LONG TERM AND WE DO
REQUIRE REGULATORY COVENANTS
THAT REQUIRE THAT THOSE UNITS TO
BE AFFORDABLE FOR 55 YEARS. UH,
THANK YOU, I. I WOULD LIKE TO
COMMENT ON THAT NOTE, UM, IN MY
PROFESSIONAL EXPERIENCE PRIOR TO
GETTING ELECTED TO THE STATE
LEGISLATURE, I HAD AN
OPPORTUNITY TO WORK FOR A FORMER
LEGISLATOR WHO REPRESENTED, UH,
THE SOUTHEAST L A PORTION SOME
PORTIONS OF WATTS IN ATHENS AND,
UH, DID SOME COMMUNITY WORK IN
SOME HOUSING PROJECTS. UH,
NICKERSON GARDENS, JORDAN DOWNS.
UM, AND I VIVIDLY REMEMBER ONE
EXPERIENCE. UH A FAMILY WHO HAD
THREE GENERATIONS IN THAT
HOUSEHOLD, SO I DO AGREE AND
ALSO SUPPORT. UH, THESE PROJECTS
HELPING FAMILIES MULTIPLE
FAMILIES LONG TERM, BUT I THINK
WE ALSO HAVE TO BE MINDFUL OF
THE SHORTCOMINGS THAT THESE
TYPES OF PROJECTS DO HAVE AND
ALSO PROVIDING ADDITIONAL
RESOURCES SO THAT FOLKS DON'T
STAY STAGNANT IN THESE PLACES.
UH, AND THEN IT'S A IT'S A WAY
TO MOVE UP, UM, IN IN IN SOCIETY
AS WELL. WHEN IT COMES TO
FINANCIAL MEANS SO AGAIN, II. I
THINK WE HAVE TO BE MINDFUL
ABOUT THOSE DIFFERENCES AS WELL.
MOVING ON TO, UH MR UH, ASSEMBLY
MEMBER JESSE GABRIEL. THANK YOU.
UM THANK YOU. THANK YOU VERY
MUCH. SHE, UH, SO FIRST OF ALL,
THANK YOU TO THE PANELISTS. I
THINK THERE'S A YOU KNOW, WEALTH
OF EXPERTISE AND EXPERIENCE AND
INSIGHT UP HERE. UM I WANNA SEE
IT JUST FOR SOMEONE LIKE ME.
WHO'S TRYING TO THINK ABOUT ALL
THESE DIFFERENT, UH, CHALLENGES
AND OPPORTUNITIES OUT THERE.
MAYBE IF WE COULD JUST START FOR
ME, AT LEAST AT THE BEGINNING,
WHICH WOULD BE AS WE'RE THINKING
ABOUT OUR BUDGET THIS YEAR AND
THE INVESTMENTS THAT WE'VE MADE
IN THE PAST AND THE INVESTMENTS
THAT WE MIGHT MAKE IN THE FUTURE
OR POTENTIALLY WHERE WE MIGHT
NEED TO MAKE CUTS. UM I WANNA
GET A SENSE FROM THE FOLKS UP
THERE ABOUT WHAT INVESTMENTS YOU
THINK HAVE BEEN MOST IMPACTFUL
UH, WHAT YOU THINK HAVE HAD THE
LEAST R Ó I AND BEEN THE LEAST
EFFECTIVE. UH, AND THEN MAYBE
SOME SUGGESTIONS FOR US TO THINK
ABOUT THAT. SO MR OLMSTEAD, CAN
WE START WITH YOU? UM WHAT DO
YOU THINK? THE BEST INVESTMENTS
THAT THE THAT THE STATE HAS
MADE, UH, IN HOUSING PRODUCTION,
UH, BOTH FOR MARKET RATE AND FOR
AFFORDABLE HOUSING. WHAT ARE THE
PROGRAMS THAT YOU THINK HAVE
DELIVERED THE BEST RESULTS. I
DON'T THINK THE STATE DOES MUCH
ON THE MARKET RATE SIDE. UM I
MEAN, THERE'S SOME TANGENTIAL,
BUT, UM, I, I THINK ALL OF OUR
OUR INVESTMENTS THAT THAT OUR
OUR DEPARTMENT HAS ADMINISTERED
HAVE BEEN SUCCESSFUL IN THE
SENSE OF THEY'RE PRODUCING
AFFORDABLE HOUSING, RIGHT? WE'RE
IMPLEMENTING THE PROGRAMS THAT
THAT THAT WERE GIVEN HERE, AND
WE ARE OVERSUBSCRIBED FOR ALL OF
THEM. RIGHT, SO THE DEMAND IS
CERTAINLY THERE. UM THERE'S JUST
DIFFERENT TYPES OF INTERVENTIONS
. YOU KNOW, UM WE HAVE MANY
PROGRAMS THAT SEEK US TO TARGET
AT MAYBE A VERY LOW AREA MEDIAN
INCOME RATE, OR FOR A
SUBPOPULATION THAT IS HARDER TO
SERVE RIGHT. WE HAVE PROGRAMS
THAT SERVE VETERANS PROGRAMS
THAT SERVE PEOPLE WITH CHRONIC
MENTAL ILLNESS. ALL THOSE SORTS
OF THINGS AND THOSE DO. THOSE
ARE MORE CHALLENGING IN VARIOUS
THINGS THAT YOU HAVE A SUPPORT
SERVICES PLAN THAT IS GOING
ALONG WITH THEM. THERE MIGHT BE
HIGHER THERE MIGHT BE LONGER
OPERATE OPERATING ASSISTANCE
NEEDS. BUT I WOULD SAY THEY'RE
PRETTY CRITICAL. IF YOU'RE
TALKING ABOUT WHAT WE'RE DOING
TO TRY TO ADDRESS AND ALLEVIATE
AND HOPEFULLY END HOMELESSNESS,
UH, EACH AND EVERY ONE OF OUR
PROGRAMS DOES TARGET LIKE EVEN
OUR AFFORDABLE HOUSING,
SUSTAINABLE COMMUNITIES PROGRAM
OR MULTI FAMILY HOUSING PROGRAM.
THEY ALL ACTUALLY THE BEST
SCORING PROJECT PROJECTS ARE THE
ONES THAT MAXIMIZE PUBLIC
BENEFIT BY SERVING AT THE
DEEPEST LEVEL, RIGHT. SO WHEN
YOU'RE WHEN YOU'RE THINKING
ABOUT WHAT IS THAT RETURN ON
INVESTMENT OR IMPACT, RIGHT?
IT'S THE HOUSEHOLD WERE SERVING
THAT MAY BE AT THE DEEPEST NEED,
AND THAT IS CERTAINLY THE
PROGRAMS THAT OUR DEPARTMENT
ADMINISTERS. THERE ARE SOME
OTHER PROGRAMS ON THE HOUSING
SIDE. THERE ARE SISTER AGENCY,
THE CALIFORNIA HOUSING FINANCE
AGENCY. CERTAINLY TAX CREDITS
KIND OF DO THE GAMUT. UM BUT
WHEN YOU THINK ABOUT WHAT HÌ èC
Dð DOES, IT'S REALLY THAT DEEP
IN DEEP, DEEP TARGETING TYPE
STUFF. SO CERTAINLY I THINK
THEY'VE ALL BEEN SUCCESSFUL
SINCE LIKE THE HOUSING IS
GETTING BUILT FOR HOUSEHOLDS ARE
ARE LIVING THEM. YOU KNOW, IT'S
GREAT TO SEE THOSE PEOPLE'S
LIVES TRANSFORM. WE CERTAINLY
NEED MORE RIGHT. WE'RE UH WE ONE
OF THE THINGS HÌ Dð DOES IS
ADMINISTER THESE PROGRAMS AND WE
THINK WE'RE DOING IT PRETTY
EFFECTIVELY FOR HOW THEY'RE
STRUCTURED AND JUST THE NATURE
OF THE COMPLEXITY OF HOUSING
FINANCE, BUT IT'S NOT THE ONLY
WAY IN WHICH WE GET MORE HOUSING
BUILT. AND SO WE'RE ALSO
IMPLEMENT A LOT OF HOUSING LAWS
THAT HAVE BEEN PASSED OVER THE
LAST COUPLE OF YEARS. RIGHT.
WE'RE DOING A LOT TO BOLSTER AU
PRODUCTION. WE'RE SEEING
SIGNIFICANT JUMPS THERE. WE ARE
UTILIZING STATE EXCESS EXCESS
LAND AND EXCESS SITES AND PUBLIC
LANDS. WE'RE SEEING, UM, A LOT
OF ACTIVITY THERE, AND OUR
ACCOUNTABILITY WORK IS ALSO
MAKING SURE THAT THE LOCAL LEVEL
HOUSING OF ALL KINDS, TYPES
AFFORDABLE AND MARKET RATE IS
ACTUALLY APPROVED WHEN IT SHOULD
BE APPROVED. AND SO WE'VE
ACTUALLY SEEN A BIG JUMP UP
THERE. I THINK WE'RE LIKE,
PROBABLY 6500 MORE HOMES BUILT
JUST BECAUSE OF THAT WORK, SO I
JUST WHEN YOU ASK THE QUESTION
LIKE, UH, EFFECTIVENESS, I, I
THINK THEY'VE ALL BEEN EFFECTIVE
IN THE SENSE OF WE'VE ALL BEEN
ABLE TO ADMINISTER THEM, AND
WE'VE NOT BEEN ABLE TO DO IT
QUITE QUICKLY. UM BUT OTHERS.
OTHERS WHO ARE UTILIZING THOSE
PROGRAMS COULD ALSO LET ME LET
ME LET ME BRING IN SOME OF THE
OTHER FOLKS IN THE CONVERSATION
HERE, UM YOU KNOW, I'M GLAD TO
HEAR THAT. YOU THINK THAT
THEY'VE ALL BEEN EFFECTIVE? I
THINK WHAT I'M LOOKING FOR IS
RELATIVE EFFECTIVENESS. I
UNDERSTAND THAT THERE ARE, UM
YOU KNOW, DIFFERENT
SUBPOPULATIONS AND DIFFERENT
GOALS WITH DIFFERENT PARTS OF
THESE PROBLEMS. I'M VERY
PAINFULLY, UH, Ó MIND MINDFUL
OF THAT, I. I THINK WHAT WE'RE
TRYING TO FIGURE OUT IS IN A
TIME OF TREMENDOUSLY,
POTENTIALLY TREMENDOUSLY SCARCE
RESOURCES. HOW DO WE TARGET
INVESTMENTS? AND WHERE ARE WE
GOING TO GET THE MOST BANG FOR
OUR BUCK? WHERE ARE WE GOING TO
MOVE THE NEEDLE MOST. HOW ARE WE
GONNA HELP THE MOST PEOPLE AND
I'M CURIOUS OF OTHERS ON THE
PANEL? UH, WANNA WEIGH IN HERE
IS WE MIGHT HAVE TO MAKE SOME
DIFFICULT CHOICES. UH, IN THE
COMING YEARS AND LET US KNOW.
YOU KNOW WHERE? WHERE? WHAT
WHAT? WHAT? WHAT WOULD YOU
RECOMMEND TO PEOPLE IN OUR SHOES
ABOUT WHERE WE TARGET THOSE
INVESTMENTS? MS WATT. THANK YOU.
UM SO AGAIN, YOU KNOW, I CAN'T
COMMENT ON SORT OF WHICH IS
BETTER. UH I CAN ONLY COMMENT ON
WHAT WE'VE SEEN DONE WITHIN THE
TAX CREDIT PROGRAM OVER THE LAST
FOUR YEARS. AND UM, SINCE THAT
THOSE ARE THE THAT'S THE PROGRAM
THAT WE ADMINISTER AND LOOKING
AT, SORT OF COMPARING THE AMOUNT
OF NEW CONSTRUCTION UNITS WE'VE
BEEN ABLE TO PRODUCE AS A STATE
THROUGH THE LOCUM HOUSING TAX
CREDIT PROGRAM. THE LAST FOUR
YEARS WHEN WE HAD THE ADDITIONAL
100 MILLION OF STATE CREDITS
WE'VE BEEN ABLE TO PRODUCE 48
OVER 48,000 NEW CONSTRUCTION
UNITS DURING THAT FOUR YEAR
PERIOD, LOOKING AT THE PREVIOUS
FOUR YEARS WHERE THERE WAS NÓ
ADDITIONAL ENHANCED STATE
CREDITS. WE'RE WE'RE ONLY ABLE
TO PRODUCE 22,000 UNITS OF NEW
CONSTRUCTION. UM AND THE BULK OF
THAT. DURING THAT PERIOD, MOST
OF THE PRODUCTION WAS FOCUSED ON
WAS OR MOST OF THE RESOURCES
WERE GOING OUT TO NEW UNITS, BUT
TO REHAB EXISTING UNITS, SO I
THINK THOSE NUMBERS REALLY JUST
SHOW THE BENEFIT THAT THE
ADDITIONAL RESOURCES HAVE BEEN
ABLE TO PROVIDE IN TERMS OF
PRODUCTION OF NEW UNITS FOR LOW,
VERY LOW AND EXTREMELY LOW
INCOME HOUSEHOLDS, MORE THAN
DOUBLE WE WERE ABLE TO DO IN
THESE LAST FOUR YEARS. BECAUSE
OF THAT, YEAH, THANK YOU. AND
CONGRATS ON THE NEW GIG, AND,
UH, I, I AGREE WITH YOU. I THINK
THOSE NUMBERS DO JUMP OFF THE
PAGE AND I WOULD BE I WOULD BE A
PROPONENT FOR YOU KNOW, LOCKING
IN HIGHER LEVELS OF ONGOING
FUNDING FOR THE LOW INCOME
HOUSING TAX CREDIT. I THINK
THAT'S ONE OF THE MOST IMPORTANT
THINGS WE CAN DO. BUT I DO THINK
THIS QUESTION OF WHICH IS
BETTER, UH, RELATIVE EFFECTIVE.
THIS IS A REALLY IMPORTANT ONE.
AND SO MAYBE I. I SEE. UH, MISS
MANDOLINI. SO UH, YOU KNOW, I. I
HAVE TO ECHO WHAT MARIN HAS SAID
ABOUT ABOUT THE LO THE STATE
CREDIT. I THINK IT NEEDS TO BE
PERMANENT. FRANKLY IT'S HARD TO
GAUGE WHAT'S PERMANENT. WHAT'S
WHAT'S TEMPORARY AND JUST MAKING
THAT PERMANENT, I THINK WOULD BE
A HUGE LIFT FOR THE STATE. IT
WOULD ALSO, UH, ENGENDER PRIVATE
INVESTMENT. RIGHT SO IT'S NOT
JUST THE STATE CREDIT. IT'S
PRIVATE INVESTMENT IN THE STATE
CREDIT, AND SO THAT'S A REALLY
IMPORTANT ASPECT FOR US AS WE DO
OUR WORK. IT'S INCREDIBLY
FLEXIBLE. SO YOU CAN DO RURAL
HOUSING WITH THE STATE CREDIT
YOU CAN DO URBAN HOUSING WITH
THE STATE CREDIT YOU COULD DO
HOUSING IN L A AND YOU CAN DO
HOUSING IN SAN FRANCISCO. YOU DO
HOUSING IN SAN DIEGO WITH THE
STATE CREDIT. IT WORKS
EVERYWHERE. AND SO I WOULD
ENCOURAGE THAT. I ALSO THINK M
HÌ P IS SIMILAR. IT SERVES FOLKS
AT A CERTAIN INCOME LEVEL, AND
YOU CAN USE THAT PROGRAM PRETTY
MUCH EVERYWHERE IN THE STATE. UH
THE SAME WITH INFILL
INFRASTRUCTURE. I THINK THERE'S
SORT OF THOSE THREE PROGRAMS
HAVE THE BROADEST FLEXIBILITY
AND THEY DON'T PROHIBIT YOU
TARGETING SPECIFIC POPULATIONS
OR GIVING HÌ èC Dð THE
REGULATORY, UH, CAPACITY TO
TARGET SPECIFIC POPULATIONS FROM
ROUND TO ROUND, BUT IT MAKES A
HUGE DIFFERENCE. AND SO I WOULD
JUST REALLY ENCOURAGE THINKING
ABOUT THE BROADER PROGRAMS AND
THEN DEPENDING ON WHAT HAPPENS
WITH PROP ONE, YOU KNOW, HOME
KEY AND THOSE PROGRAMS HAVE BEEN
SUPER IMPORTANT. THEY'RE NOT THE
SAME AS PERMANENT SUPPORT OF
HOUSING. THE HOME KEY UNITS ARE
THE BIGGEST CHALLENGE THERE IS,
YOU CAN BUY THEM AND THEY COST
YOU LESS, BUT THEY COST A LOT TO
OPERATE. AND HOW YOU'RE GONNA
COVER THE LONG TERM OPERATING
SUBSIDY IS REALLY THE BIGGEST
CHALLENGE. AND SO THAT'S ALWAYS
OUR WORRY IS YOU CAN DO IT FOR
FIVE YEARS. BUT WHAT DO YOU DO
FOR 50 YEARS? UH, TO MAKE THOSE
PROJECTS SUCCESSFUL. THANK YOU,
UM I SUPPORT? UH WHAT? MY
COLLEAGUES. COMMENTS UM, WERE ON
THE DIFFERENT PROGRAMS BUT THE
ONE THING THAT I REALLY WANNA
STRESS IS WITH M HÌ P. IT IS.
IT'S A BROAD ENOUGH PROGRAM THAT
YOU COULD MEET SPECIFIC NEEDS
BECAUSE WE'RE LOOKING AT THE
ENTIRE STATE SO YOU COULD FOLD
IN A RURAL SET ASIDE, YOU COULD
FOLD IN A VETERAN SET ASIDE. WE
SEE, UH YOU KNOW, VÆ, HÌ HÌ P
AND IMPORTANT VETERANS
PRODUCTION PROGRAM. MAYBE NOT,
UH, GETTING FUNDED TO THE LEVEL
IT WAS BEFORE BUT THAT WE COULD
FUND HOUSING FOR OUR VETERANS
THROUGH THE M HÌ P PROGRAM AND
SO STREAMLINING AND SIMPLIFYING
THE PROGRAMS AGAIN IS GONNA SAVE
YOU COSTS RIGHT? BECAUSE YOU'VE
GOT 11 ROUTE AND ONE DIRECTION
WITH THAT, SO I THINK THAT'S A
BIG ONE. AND THEN I DON'T WANNA,
UM, I I'D LIKE TO RESPOND TO
SOME OF THE EARLY QUESTIONS
ABOUT HOME OWNERSHIP, BECAUSE,
UM, YOU KNOW, WEALTH BUILDING IS
EXTREMELY IMPORTANT, AND
HOMEOWNERSHIP IS THE KEY TO THAT
FOR OUR, UM OUR MANY OF OUR
RESIDENTS AND BACK IN THE DAY.
UH KELLY FA RAN SOME REALLY GOOD
FIRST TIME HOME BUYER PROGRAMS.
I KNOW RECENTLY THEY HAD SOME
FUNDS FOR ONE. BUT THERE THERE
ARE MORE PROGRAMS OUT THERE THAT
COULD BE USED IN. I DON'T THINK
WE CAN FORGET THAT. THERE ARE
REALLY GOOD PARTNER FOR WHAT
WE'RE DOING ON THE MULTIFAMILY
SIDE. ALSO. THANK YOU. I'D LIKE
TO SAY, TAKE KIND OF THE BIGGER
PICTURE SPEAKING AS A BUILDER,
AND THEN AS A èC BI, A FORMER
CHAIRMAN, THE BIGGEST PROBLEM WE
HAVE WITH ANY KIND OF HOUSING
WHATSOEVER IS SIMPLY THE LACK OF
AVAILABLE LAND ON WHICH TO BUILD
IT. OK, THERE'S JUST A SUPPLY
PROBLEM THAT WE HAVE HERE THAT'S
ENDEMIC IN THE STATE, AND IT'S
MADE WORSE. IN NORTHERN
CALIFORNIA, FOR INSTANCE, WE
DEAL WITH URBAN GROWTH
BOUNDARIES, SO URBAN GROWTH
BOUNDARIES I CALL EXCLUSIONARY
ZONING. WE BASICALLY EXCLUDING
THE ABILITY OF PEOPLE TO BUY
INTO THAT MARKET, BECAUSE ONCE
YOU DRAW THAT LINE YOU
AUTOMATICALLY THE VALUE OF LAND
INSIDE THAT INSIDE THAT LINE.
YOU'RE LIMITING THE AVAILABLE
LAND FOR HOUSING. YOU'RE
BOOSTING THE VALUE OF IT. SO
EVERYTHING YOU BUILD INSIDE THAT
GROWTH BOUNDARY THAT'S
INCLUSIONARY OR AFFORDABLE. THE
COST OF ALL THAT LAND HAS GONE
UP ASTRONOMICALLY. AND YOU, YOU
BASICALLY GIVEN EVERY PROPERTY
OWNER A SUBSIDY, OK, YOU'VE
SUBSIDIZED ALL THE PROPERTY
OWNERS TO THE TO THE DETRIMENT
OF PEOPLE WHO DON'T OWN HOUSING.
AND SO, LIKE I SAID, GIVE ME
1000 UNITS. I'LL GIVE YOU 200 OF
THEM 100% AFFORDABLE WITH NÓ
SUBSIDY WHATSOEVER EXCEPT THE
TAX CREDIT PROGRAM, SO MY
UNDERSTANDING OF NOT AN EXPERT,
BUT MY KNOWLEDGE OF AND USE OF
AND PROVIDING AFFORDABLE HOUSING
BECAUSE I'VE BUILT PLENTY OF
EXCLUSIONARY INCLUSIONARY UNITS.
THAT ARE FOR SALE IN THE
SUBDIVISIONS THAT I BUILT OVER
THE YEARS, QUITE A FEW OF THEM.
IT'S A VERY INEFFICIENT WAY TO
PROVIDE AFFORDABLE HOUSING. I'M
SURE YOU PROBABLY KNOW THAT WE
CAN GET INTO THAT. BUT GIVE ME
LAND ENOUGH A SCALABLE PROJECT,
THEN WE CAN DELIVER AFFORDABLE
HOUSING UNITS WITH ONLY THE TAX
CREDIT SUBSIDY BECAUSE I CAN
SUBSIDIZE THE REST OF IT.
THROUGH THE SCALE OF THE PROJECT
. OK, SO THAT'S IMPORTANT TO
KNOW. AND WHEN YOU IT'S GREAT. I
MEAN, YOU GUYS HAVE DONE A
WONDERFUL JOB COMING UP WITH
DIFFERENT PROGRAMS TO FUND
AFFORDABLE HOUSING. BUT IF
YOU'RE POURING ALL THAT INTO THE
SAME BUCKET FROM A LAND
STANDPOINT. IF YOU'RE NOT
INCREASING THE AVAILABILITY OF
LAND, THEN YOU'RE JUST RAISING
THE PRICE OF ALL THE LAND THAT'S
OUT THERE. YOU'RE PROVIDING MORE
MONEY TO BUY THE LIMITED AMOUNT
OF LAND THAT'S AVAILABLE FOR
HOUSING. SO YOU'RE AUTOMATICALLY
INCREASING THE COST. I JUST
WANTED TO MAKE THAT POINT. IT'S
VERY IMPORTANT. IT'S A BIG
PICTURE HERE. THANK YOU. THANK
YOU. I APPRECIATE THAT. I HAVE I
HAVE A BUNCH MORE QUESTIONS. I
WANNA DEFER TO MY COLLEAGUES. UM
BE BEFORE I ASK A BUNCH OF BUT I
DO JUST HAVE ONE MORE THAT I
WANNA, UM ADD ON TO THIS BECAUSE
I THINK IT'S RELATED YOU KNOW? I
THINK PART OF THE FRUSTRATION
THAT WE HAVE FROM RESIDENTS HERE
IN THE STATE OF CALIFORNIA AND
CERTAINLY FROM LAWMAKERS, UH IS
SPEED RIGHT AND HOW LONG THINGS
CAN TAKE AND HOW LONG IT CAN
TAKE TO MAKE PROGRESS ON THIS
AND SOMETIMES FEELS LIKE WE'RE
GOING IN THE WRONG OFTEN FEELS
LIKE WE'RE GOING IN THE WRONG
DIRECTION. SO IS YOU EVALUATING
THE DIFFERENT TOOLS THAT WE HAVE
AT OUR DISPOSAL, THE DIFFERENT
POTENTIAL POLICY INTERVENTIONS,
DIFFERENT INVESTMENTS. ANY OF
THEM STAND OUT TO YOU BOTH IN
TERMS OF EITHER THAT THEY'RE
ABLE TO DELIVER RESULTS QUICKLY,
OR THAT THEY OR THAT THINGS MOVE
TOO SLOWLY AND WOULD LOVE YOUR
YOUR CANDID THOUGHTS FOR THOSE
OF YOU. UP THERE ON THE SPEED IN
WHICH YOU KNOW MAYBE HÌ èC Dð
OR OTHERS GET MONEY OUT, UH,
MAKE MONEY AVAILABLE. EVALUATE
APPLICATIONS. THOSE TYPES OF
THINGS. YOU KNOW WHERE WHERE
SHOULD WE BE THINKING? AS WE'RE
THINKING ABOUT HOW WE CAN MOVE,
MOVE THE NEEDLE HERE BUT MOVE IT
QUICKLY. MISS MANDOLINI. SO I
WANNA JUST ADVOCATE FOR, UH MORE
OF AN UMBRELLA APPROACH WITH THE
HÌ èC Dð FUNDING AND I'LL USE
OUR OWN EXPERIENCE WITH THE
SUPER NOVAS. WE WENT IN THE
FIRST SUPERNOVA WITH SIX
PROJECTS. ONE OF THEM GOT
FUNDED, SO REALLY COMING UP WITH
A STRATEGY TO FUND MORE ALL AT
ONCE, AND THERE'S A CHALLENGE
RIGHT NOW THAT YOU MIGHT GO INTO
THE SUPER NOVA AND GET ONE OF
THE THREE PROGRAMS THAT YOU'VE
ASKED FOR, WHICH MEANS YOU GO IN
YEAR ONE. AND YOU GET ONE
PROGRAM. YOU GO BACK. A YEAR
LATER, YOU GET A SECOND PROGRAM
AND MAYBE YOU'RE BACK A THIRD
YEAR IF YOU CAN HANG ON TO YOUR
ONE AND TWO AND GET A THIRD
TRANCHE OF SO REALLY
CONSOLIDATING. I THINK IT IS
IMPORTANT AND THEN BECAUSE ONCE
WE GET FUNDED, THEN WE HAVE TO
GO COMPETE FOR TCA DOLLARS,
WHICH IS YET ANOTHER YEAR, MAYBE
TWO. WE COMPETE A LOT IN, UH,
ASSEMBLY MEMBER WICKS DISTRICT
IN ALAMEDA COUNTY. IT IS
INCREDIBLY COMPETITIVE, SO IT'S
VERY UNPREDICTABLE. SO FROM THE
TIME YOU GET ENTITLED, WHICH IS
GETTING QUICKER, THE TIME TO GET
FUNDED IS REALLY LONG. IT COULD
BE UP TO FOUR YEARS AND MULTIPLE
TRIES. SO I THINK WE HAVE TO
THINK OF A STRUCTURE THAT MAKES
THAT QUICKER FOR EVERYBODY. UM
WHAT? WHAT UM LINDA IS
DESCRIBING, THOUGH, IS THE
LENGTH THAT THE TIME IT TAKES TO
GET THE FUNDING, BUT ONCE YOU
GET THE FUNDING, UM THE PROJECTS
WE PRIORITIZE PROJECTS THAT ARE
READY TO CLOSE WITHIN 100 AND 80
DAYS. AND SO ONCE YOU GET YOUR
FUNDING FROM THE STATE, THE
PROJECT IS GOING TO BE CLOSING
WITHIN 100 AND 80 DAYS IS GONNA
BE GOING TO CONSTRUCTION WITHIN
ANOTHER 180 DAYS AFTER THAT, AND
IT WILL TAKE 12 YEARS TO GET
BILLED, BUT SO IT'S ACTUALLY
LIKE, PRETTY QUICK PROCESS. ONCE
THE DEVELOPER GETS THEIR FUNDS.
WE'RE TALKING THREE ISH YEARS
FROM RECEIPT OF FUNDING FROM THE
STATE TO PLACE IN SERVICE WITH
RESIDENTS IN THOSE HOMES. UM AND
SO, YES, THE PROCESS CAN BE
LENGTHY. BUT THAT IS LIKE SORT
OF THE FRONT END AND A REALLY AN
EXAMPLE OF THE NEED, UM, THAT
THE DEVELOPERS HAVE DESCRIBED
LIKE OUR PROGRAM IS
OVERSUBSCRIBED TWO OR 3 TO 1 AND
SO RIGHT IN SO GETTING THAT
FUNDING IS WHAT IS SLOW IT. ONE.
ONCE THAT FUNDING IS OUT THE
DOOR, IT'S FAIRLY QUICK. I WOULD
RECHARACTERIZE. IT'S LIKE
GETTING IT'S THE COMPETITIVE
COMPETITIVENESS OF THE FUNDING,
RIGHT. OUR FUNDING IS AVAILABLE
VERY QUICKLY. BUT THEN YOU HAVE
TO WAIT TO GET THE 100% OF YOUR
FINANCING. I THINK THE POLICY
QUESTION THAT YOU'RE REALLY
STRUGGLING WITH IS 20 YEARS AGO,
WHEN I STARTED WORKING ON THIS,
THE NAME OF THE GAME IS
LEVERAGE. IT WAS ALWAYS LIKE THE
STATE COMES IN AND GETS A
PERCENTAGE HERE AND THEN YOU GO
FIND YOUR FEDERAL FUNDS AND THEN
YOU GO FIND YOUR TAX. AND THAT
WAS LIKE THE POLICY CHOICE OF
THE DAY BECAUSE THE STATE DID
NOT WANT TO FULLY FUND THE
DEVELOPMENT RIGHT. THEY WANTED
LOCALS DEAF SKIN IN THE GAMES.
THEY WANTED PRIVATE FINANCING.
LEVERAGED THEY DIDN'T WANNA BE
ABLE TO SAY, HEY, WE'RE
LEVERAGING ALL THIS PRIVATE
FINANCING, AND THAT, FOR THE
MOST PART IS STILL HOW WE'RE
DOING IT IN NEW CONSTRUCTION
PROGRAMS. WE HAVE UPPED OUR LOAN
LIMITS, AND THAT'S WHY YOU SEE
MORE BECAUSE MAYBE THERE'S BEEN
FEWER RESOURCES AT THE LOCAL
LEVEL TO PAIR BUT FOR THE MOST
PART, YOU'RE STILL LEVERAGING IN
A NEW CONSTRUCTION PROGRAM. DOES
NOT DO THAT. FROM WE'VE GIVE YOU
ALL THE MONEY. WE BUY IT FOR
YOU. WE TOOK OUT THAT ELEMENT
RIGHT NOW WE GET LESS HOUSING.
BY DOING THAT, RIGHT IF WE SAID
OH, WE'RE ONLY GONNA GET 50%
WE'D BE ABLE TO AWARD TWICE AS
MANY PROJECTS. BUT MAYBE THEN
THEY'RE WAITING 23 YEARS, RIGHT,
SO THERE'S A TRADE OFF THERE. OF
SPEED VERSUS PRODUCTION. UM BUT
I DO WANNA HIGHLIGHT SOMETHING,
LAURA SAID THE SIGNIFICANT
DIFFERENCE IN HOMEY TWO IS, UH,
THE ENTITLEMENTS BEING COMPLETE.
WE I THINK VERY SHREWDLY IN THAT
TIME SAID. BASICALLY IF YOU HAVE
A HONKY PROJECT, IT CONFORMS
WITH THE LAND USE AND WHAT THAT
MEANS. IS ANY PROJECTS. GOOD TO
GO? IT MEANS LOCALS CAN'T STOP
IT. UM AND YOU KNOW THAT IS NOT
WITHOUT CONSTERNATION AT ANY
LOCAL COMMUNITY LEVELS. I DO
WANNA ACKNOWLEDGE THAT, BUT IT
IS A SIGNIFICANT FACTOR IN THE
SPEED ONCE PEOPLE ARE READY TO
GO. UM AND SO, SO THAT'S JUST
SOME OF THE CONSIDERATIONS YOU
MIGHT WANT TO THINK ABOUT IN
TERMS OF UTILIZATION. YEAH I. I
THINK PART OF WHAT TRIGGERED
THAT IS I WAS LOOKING OVER THE
HEALTHFUL MATERIALS AT THE L. A
Ó PREPARED. I WAS LOOKING OVER
AT THIS. FORECLOSURE
INTERVENTION HOUSING
PRESERVATION PROGRAM. WHICH
NOTES THAT THE 2021 2022 BUDGET
PROVIDED 500 MILLION, UM, BUT
THAT IT APPEARS THAT NONE OF
THOSE GRANTS HAVE GONE OUT.
YEAH, THAT'S A VERY UNIQUE
PROGRAM IT WE COULDN'T
ADMINISTER IT UNTIL BUDGET
CHANGES HAPPENED LAST YEAR IN
THE BUDGET, SO CHANGES WERE
IDENTIFIED BASED ON THE
STRUCTURE OF THAT PROGRAM. IT
WAS A VERY COMPLEXLY STRUCTURED
PROGRAM THAT REQUIRED US TO THEN
ADMINISTER TO FUND MANAGERS WHO
THEN ADMINISTER IT. UM AND
THAT'S NOT EVEN A NEW PRODUCTION
PROGRAM. BY THE WAY, THIS IS
ABOUT KIND OF A ACQUIRING LIKE
HOMES TO THE LOCAL LEVEL KIND OF
VERY UNIQUE. UNTESTED FRANKLY,
UM, AND SO IT REQUIRED SOME
CHANGES, EVEN BASED ON WHAT THE
ADVOCATES FOR THAT PROGRAM. THAT
THEN HAD TO TAKE PLACE IN THE
BUDGET LAST YEAR, AND THEN
SUBSEQUENTLY, OF COURSE, SOME OF
THE FUNDS WERE SPREAD OUT. SO WE
HAVE SINCE THOSE CHANGES
HAPPENED, THEN WE'RE ABLE TO
INITIATE THE CONTRACTING PROCESS
WITH FUND MANAGERS OF WHICH IS
NEARLY COMPLETE, BUT CERTAINLY
IN AN UNCERTAIN PLACE NOW, NÓ. I
MEAN, IT DEFINITELY CAUGHT MY
ATTENTION. I UNDERSTAND, TOO,
THAT THAT THE ADMINISTRATIVE
COSTS THERE IS SOMETHING LIKE,
UM UH, SOMETHING LIKE 20% AND SO
IT'S WORTH THINKING ABOUT HOW WE
MIGHT MAKE PROGRESS ON THESE
ISSUES AT THE PACE THAT I THINK
CALIFORNIANS ARE EXPECTING US
TO, UM I THINK WE'VE REALLY GOT
A I THINK WE'VE GOT TO THINK
THAT THE ADMINISTRATIVE COST IN
THE STATUTE THAT WE ARE SEEKING
TO THAT WE WERE IMPLEMENTING,
RIGHT? THAT'S NOT OUR COST
THERE. THAT WAS SOME OF THE
CHANGES SOUGHT BY THE FUND
MANAGERS IN ORDER TO BE THE
CARROT, SO TO SPEAK TO
ADMINISTER THE PROGRAM, SO IT IS
A QUITE COMPLEX, UNIQUE NEW
PROGRAM THAT LITERALLY SAID THE
DEPARTMENT. THE KIND OF SAID
DEPARTMENT YOU'RE PASSED THROUGH
TO THESE FUND MANAGERS WHO THEN
DO IT, AND SO IT IT IT. IT
CREATED A LOT OF I'M NOT GOING
TO SAY INEFFICIENCIES BUT MANY
STEPS IN THE PROCESS, UM, IN
ORDER TO GET TO THE EVENTUAL
GOAL. I MEAN, I THINK AS WE'RE
LOOKING AT HALF A BILLION
DOLLARS THAT WAS ALLOCATED A
COUPLE YEARS AGO THAT ISN'T OUT.
AND WE'RE THINKING UP HERE ABOUT
THE POLICY CHOICES THAT WE NEED
TO MAKE TO SOLVE HOMELESSNESS. I
THINK WE JUST HAVE TO BE HONEST
WITH OURSELVES AND HONEST WITH
THE PUBLIC ABOUT WHAT'S WORKING
AND WHAT'S NOT. WHAT DOLLARS ARE
GOING TO GET OUT THE DOOR
QUICKLY? WHAT DOLLARS ARE GOING
TO DRIVE POLICY INTERVENTIONS?
SO I THINK THAT'S PART OF WHAT
WE'RE TRYING TO, UH, AT LEAST
FROM MY PERSPECTIVE, AND I'D
HOPE FROM THE CHAIRS AS WELL
HAVE THESE HONEST CONVERSATIONS
ABOUT WHICH PROGRAMS ARE WORKING
AND WHICH ARE AND HOW HOW WE CAN
DO BETTER BECAUSE I BELIEVE THAT
THAT'S WHAT THE PUBLIC IS
DEMANDING OF US. THEY WANT TO
SEE MORE PROGRESS ON THESE
ISSUES. CALIFORNIANS ARE
STRUGGLING MIGHTILY UP AND DOWN
THE STATE BECAUSE OF OUR HOUSING
CRISIS. AND AS WE THINK ABOUT
TAKING, YOU KNOW VERY
SIGNIFICANT SUMS OF MONEY IN
THIS CASE, HALF A BILLION
DOLLARS. UM, YOU KNOW, FROM MY
PERSPECTIVE, WE CAN DO A LOT
BETTER THAN THAT. AND SO WE WANT
TO WORK WITH ALL OF YOU AND ALSO
GET YOUR HONEST PERSPECTIVE AND
FEEDBACK ABOUT WHAT ARE THE
CHANGES WE SHOULD MAKE. HOW CAN
WE DO THIS BETTER? HOW CAN WE
MEET THIS? THIS THIS CHALLENGE
BETTER SO I'M I'M EAGER TO HAVE
THOSE CONVERSATIONS IN
PARTICULARLY AS WE ENTER WHAT
ARE PROBABLY GOING TO BE MORE
TURBULENT BUDGET TIMES. WE'RE
GONNA HAVE TO HAVE THOSE
CONVERSATIONS. WE NÓ LONGER HAVE
THE LUXURY OF BIG SURPLUSES. UM
AND, FRANKLY, EVEN WHEN WE HAD
BIG SURPLUSES THAT'S NOT
UNACCEPTABLE OUTCOME. SO WE LOOK
FORWARD TO HAVING THAT
CONVERSATION WITH ALL OF YOU.
I'M GONNA, UH, SAVE THE REST OF
MY TIME IF WE HAVE SOME TIME AT
THE END, BUT THANK YOU, MR CHAIR
FOR THE OPPORTUNITY. ABSOLUTELY
COMMENTS WELL RECEIVED. IF WE
CAN MOVE ON NOW TO OUR APPROACH
CHAIR, MS WICKS. THANK YOU, MR
CHAIR. I HAVE SO MANY THOUGHTS
AND QUESTIONS, UM, AND OPINIONS,
BUT I'LL TRY TO KEEP MY OPINIONS
TOO. MYSELF AND MORE. ASK
QUESTIONS, BUT, UM, I THINK
FIRST, UH, FOR MR OLMSTEAD, UM
WHY IS IT THAT HÌ èC Dð S¼
MONEY COMES IN AT THE END VERSUS
UM UPFRONT FOR CONSTRUCTION
COSTS IF THAT COULD REDUCE THE,
UM, FINANCE COSTS. I MEAN, I
THINK PART OF THE QUESTION WAS
WHAT I PREVIOUSLY SAID ABOUT
LEVERAGE, RIGHT? I MEAN, WE'RE
THAT FIRST MONEY IN TO SHOW THAT
THE PROJECT'S REAL THAT THEY CAN
THEN GO SECURE THEIR F LIKE WE
THEY GET THE AWARD RIGHT FROM
US, AND THEN THEY GO. TYPICALLY
USE THAT TO GO SECURE OTHER
FUNDING RIGHT? THIS MAKES IT
LOOK MORE REAL AS A PROJECT. UM
I MEAN, OBVIOUSLY, THIS IS HOW
IT'S BEEN DONE FOR A WHILE, BUT
I THINK PART OF THE CON THE
CONSIDERATION HERE IS THERE ARE
BANKS THAT FULFILL THAT ROLE
RIGHT OF CONSTRUCTION FINANCING,
AND THEY DO IT WELL, AND THEY
KNOW WHAT THEY'RE DOING, AND
THEY DO BIG BUSINESS AND WE'RE
LEVERAGING THAT PRIVATE THAT
PRIVATE FINANCING THERE SHOULD
THE STATE INTERACT. WE JUST AS
WE ARGUABLY BE REPLACING WHAT
THE BANKS ARE ALREADY DOING, AND
I'M NOT SURE WHAT ADMINISTRATIVE
OR EFFICIENCY BENEFIT AND IT
WOULD PROBABLY BE AN INCURRING
OF RISK ON THE STATE THAT WOULD
HAVE TO BE CONSIDERED RIGHT. IF
THE, UM SOMETHING HAPPENS IN
CONSTRUCTION, THEN THE STATE IS
MORE LIABLE. THAT END, SO THERE
ARE SOME LEGAL CONSIDERATIONS AS
A WELDED, YOU KNOW, ARE THEY
WOULD THAT TRADE OFF? BE WORTH
IT? WE'RE NOT STAFFED TO DO
THAT, RIGHT? WE DON'T WE DON'T
HAVE ASSETS TO KIND OF TIE TO
THAT LOAN LIKE A BANK DOES. UH,
SO THERE IT WOULD CHANGE THE
FINANCIAL STRUCTURE OF WHEN WE
COME IN. WE ARE TRYING TO
EXPLORE IT, AND WE HAVE BEEN
ABLE TO DO IT WITH SOME FEDERAL
PROGRAMS AND SOME AND SOME OF
THE LIKE, BUT THERE ARE TRADE
OFFS AND CONSIDERATIONS AROUND
LIABILITY RISK TO THE STATE. ARE
WE JUST REPLACING SOMETHING THAT
ALREADY MAYBE EXISTS, AND AT
WHAT AT WHAT BENEFIT IF WE WERE
ABLE TO THAT COULD SAVE US
RESOURCE. AND TIME. I DON'T
THINK IT WOULD SAVE ANY
RESOURCES. IT JUST I THINK WHAT
FOLKS ARE SAYING IS THEY WANT
THE SAME AMOUNT OF MONEY, BUT
THEY JUST WANT IT A LITTLE BIT
SOONER. AND FOR US TO KIND OF
FULFILL THAT. I THINK SOME OTHER
FOLKS WANNA PIPE IN HERE IF I
COULD JUST SAY AND THEN I KNOW,
UM I KNOW MY COLLEAGUE. LINDA
HAS A REALLY GOOD EXAMPLE
BECAUSE WE TALKED ABOUT THIS,
BUT, UM UH, CITIES OFTEN WILL
PUT THEIR MONEY IN WITH THE BANK
UP FRONT. ONE WENT UPON CLOSING.
AND SO THEN THE BANK ACTUALLY
MONITORS THE CONSTRUCTION AND
RELEASES IT. AS A CONSTRUCTION
LENDER WOULD SO, YEAH, THE BANKS
ARE PROVIDING RIGHT NOW.
CONSTRUCTION LOANS AT A VERY,
UM, HIGH COST. TO THAT
AFFORDABLE HOUSING UNIT. AND I
THINK, LINDA, YOU YOU YOU READ
AN EXAMPLE TO ME. THAT WAS
SHOCKING. WE HAVE AN $8 MILLION
PR P LOAN FOR A PROJECT AND 1
MILLION OF IT IS GOING TO
CONSTRUCTION LOAN INTEREST
BECAUSE HÌ èC Dð CAN'T DO THE
CONSTRUCTION LENDING. AND SO, I.
I WOULD SUGGEST THAT BEING A
CONSTRUCTION LENDER IS ACTUALLY
SOMETHING WE NEED TO FIGURE OUT
HOW TO DO IN A PREVIOUS LIFE. A
LONG TIME AGO, I WORKED IN THE
CITY OF BOSTON FOR THE STATE OF
MASSACHUSETTS, AND THEY PUT ALL
OF THEIR MONEY IN WITH THE
PRIMARY LENDER, AND THEY DID ALL
OF THE CONSTRUCTION LOAN. THEY
DON'T KNOW WHY CALIFORNIA CAN'T
DO THAT. UH I WOULD ALSO SUGGEST
THAT WE DO HAVE AN AGENCY THAT
CALIFORNIA HOUSING FINANCE
AGENCY THAT DOES DO CONSTRUCTION
LENDING, SO THERE MIGHT BE A WAY
OF WORKING WITH YOUR OWN
AGENCIES TO FIGURE THIS OUT. BUT
YOU KNOW, IN A 2% INTEREST RATE
ENVIRONMENT, MAYBE IT'S NOT SO
HARD. BUT IN THIS CURRENT RATE
ENVIRONMENT, YOU COULD SAVE
MILLIONS OF DOLLARS FOR THESE
PROJECTS. AND IF YOU WANT TO
STREAMLINE CONSTRUCTION, SO THIS
COULD BE AN AREA WHERE WE COULD
HAVE MORE EFFICIENCY TO MAKE OUR
DOLLAR STRETCH FURTHER. GREAT OK
? UM UH, THE OTHER THING. UH
MISS MANDALI, YOU'D MENTIONED
THIS IDEA OF SO SOMETIMES TAKING
UP TO FOUR YEARS TO ACCESS ALL
THE FUNDS IN THE CURRENT STATE
THAT WE'RE IN WHERE WE HAVE
200,000 FOLKS EXPERIENCING
HOMELESSNESS FOR YEARS. FEELS
LIKE A REALLY LONG TIME. AND I
MEAN, I'VE TALKED TO DEVELOPERS
WHO THIS HAS CHANGED SOMEWHAT,
BUT SAYING IT'S TAKING 10 YEARS
TO BREAK GROUND ON A PROJECT
BECAUSE OF FINANCING AND
ENTITLEMENT AND PERMITTING AND
S¼ W AND ALL OF THESE THINGS
THAT THAT THAT HAVE CREATED A
SYSTEM OF INERTIA THAT IS
LITERALLY DESIGNED NOT TO BUILD
HOUSING. YOU KNOW, WE'RE AND
WE'RE TRYING TO BREAK THROUGH
THAT LOGJAM ON THE ACCESSING
FUNDS FROM FROM SORT OF MULTIPLE
SOURCES AND THAT SORT OF FOUR
YEAR TIMELINE. ARE THERE REFORMS
WE COULD DO WITHIN THAT, AND I'M
SORT OF CHANNELING MR GRAYSON
HERE. I THINK WHO'S NOT HERE?
BUT ARE THERE REFORMS THERE
THAT, UM YOU THINK WE COULD DO
AS POLICY MAKERS TO MAKE THAT
MORE STREAMLINED? SO I THINK THE
CHALLENGE IS, UH, THE FASTEST
PROJECT WE'VE DONE IS WITH
ACCELERATOR FUNDS. WHEN THE
STATE JUST PUT ALL THE MONEY IN
THAT WE REALLY NEEDED. WE DIDN'T
EVEN GO TO THE TAX CREDIT
ALLOCATION COMMITTEE. WE DID IT
IN SAN RAFEL FOR A PROJECT THAT
IS BUILDING HOUSING FOR
PERMANENT SUPPORT OF HOUSING. UM
AND SO, SO YOU COULD PUT ALL THE
MONEY IN ALL AT ONCE. I THINK
THE CHALLENGE IS THE TWO
AGENCIES AND I THINK WE'RE
TRYING TO GET CO ORDINATED, BUT
UNLESS WE CAN REALLY COME UP
WITH A PREDICTABLE STREAM WITH
TAC AND HÌ èC Dð, IT'S REALLY
CHALLENGING, AND I THINK THAT'S
THE PLACE WHERE WE CAN FIND THE
BEST OPPORTUNITY. TO COORDINATE
AND MAYBE MARINA HAS SOME IDEAS
ON HOW THAT COULD HAPPEN. IF YOU
WANT TO OPINE ON THAT, MARINA, I
MEAN, I THINK YOU KNOW, AND IT'S
HARD BECAUSE I PRIOR TO TAKING
THIS JOB TWO MONTHS AGO, I WAS
AN ADVOCATE. AND SO I'M STILL
LEARNING TO TAKE THAT HAT OFF A
BIT. UM BUT I THINK YOU KNOW ONE
OF THE BIGGEST CHALLENGES I
WOULD SAY THAT THE STATE HAS IS
THIS BOOM AND BUST CYCLE OF
FUNDING. AND SO WHEN WE HAVE
YEARS WHERE THERE'S A LOT OF
MONEY, AND EACH OF THESE IS
UNDER A LOT OF PRESSURE TO GET
ALL THAT MONEY OUT QUICKLY, IT
CREATES OTHER TIGHTENINGS WITHIN
THE SYSTEM BECAUSE WE JUST DON'T
HAVE, LIKE UNLIMITED RESOURCES
IN ALL BUCKETS, RIGHT AND SO THE
BENEFIT OF HAVING SOMETHING THAT
IS CONSISTENT AND ONGOING WOULD
BE THAT WE COULD BETTER SIZE
SORT OF HOW MANY HOW MUCH OF THE
FEDERAL CREDITS AND HOW MUCH OF
FEDERAL TAX AND BOND AUTHORITY
DO WE NEED TO MATCH WITH THE
RESOURCES THAT ARE COMING AS
THEY'RE COMING AND YOU COULD
JUST HAVE A MUCH MORE STEADY AND
PREDICTABLE PATH OF LIKE OF HOW
WE WOULD FINANCE AND HOW MUCH IS
AVAILABLE AND THE DEVELOPMENT
COMMUNITY WHO CAN ALSO SPEAK FOR
THEMSELVES. I IMAGINE WOULD
BENEFIT FROM SEEING LIKE, OK, I
KNOW THAT X AMOUNT IS COMING
EVERY YEAR FOR THE NEXT COUPLE
OF Y. YOU KNOW, HOWEVER, 10
YEARS FOREVER, UM WHICH I THINK
IS WHERE THE BENEFIT OF
REDEVELOPMENT OFTEN CAME IN WAS
BECAUSE THERE WAS THIS
PREDICTABLE STREAM ALWAYS EVERY
YEAR, RIGHT. BUT THEN WAS PAIRED
WITH THE OTHER RESOURCES. UM THE
CHALLENGE THAT WE HAVE, AS STATE
ADMINISTRATORS IS WHEN YOU HAVE
THESE BOOM CYCLES IS LIKE HOW DO
WE SUDDENLY MODIFY THE SYSTEM TO
MEET THE DEMAND IN AN EFFICIENT
WAY? UM TO PAIR WITH THOSE
RESOURCES, UM, AND THEN WE'RE
GONNA HAVE THE NEXT CHALLENGE IF
YOU KNOW, IN IN BUS CYCLES OF
WHAT WHAT DO WE DO? HOW DO HOW
DO WE BEST UTILIZE THE FEDERAL
RESOURCES WE HAVE WITHOUT
ADDITIONAL STATE DOLLARS OR
LOCAL DOLLARS TO LEVERAGE THOSE
FEDERAL FUNDS. IT JUST MAKES
THAT THERE'S JUST A DISCONNECT
THERE. I AGREE. I MEAN, I BUT I
DO ALSO THINK THERE COULD BE
ROOM FOR SOME REFORMS AROUND
STREAMLINING THE RESOURCES THAT
THE DEVELOPERS GET FOR THE
PROJECTS, RIGHT? UM BUT I AND
I'M I'M I HEAR YOU COMPLETELY ON
THE CHALLENGE OF ONE TIME
FUNDING VERSUS ONGOING FUNDING,
WHICH ARE YOU MISS ARLET HAVE
ALSO REFERENCED AS WELL WITHOUT
THAT REDEVELOPMENT FUNDS THAT
WAS KIND OF A CONSISTENT LEVEL
OF RESOURCES THAT WERE AVAILABLE
THAT YOU COULD PLAN FOR.
ESSENTIALLY CAN YOU JUST ALSO
JUST TALK THROUGH A LITTLE BIT
WHEN WE WHEN WE DO HAVE THE ONE
TIME VERSUS THE ONGOING AND WHAT
MEANS IN PRACTICE. WELL, IT IS
REALLY IMPORTANT. I MEAN, UH,
THANKFULLY, BOTH EDEN AND
JAMBOREE HAVE BEEN AROUND FOR
SOME TIME. SO WE HAVE BUILT UP
SOME FUNDS FOR PRE DEVELOPMENT
BUT FOR NEWER DEVELOPERS, AND
ESPECIALLY SOME OF OUR YOUNG
MINORITY DEVELOPERS, AND YOUNG
BY I MEAN, THEY'VE JUST, UH,
MAYBE INCORPORATED THEY'RE
GETTING STARTED. IT'S REALLY
HARD TO GET STARTED. SO YOU ARE
ONLY GOING TO WANNA SPEND PREVE
DOLLARS ON A PROJECT THAT YOU
YOU KNOW THERE'S CONSISTENT
FUNDING FOR RIGHT AND SO IT'S
HUGE. SO RIGHT NOW WE'RE LOOKING
. UH, EVEN JUST AT JAMBOREE WITH
A HANDFUL OF PROJECTS THAT WE'VE
HAD TO PUT ON HOLD WITH THE
STATE CREDITS NOW NOT BEING
AVAILABLE. IT'S HUGE, AND SO
WE'LL HAVE CLOSE TO 1000 UNITS
THAT WILL HAVE TO BE PUT ON HOLD
RIGHT NOW THROUGHOUT THE STATE
OF CALIFORNIA IN MANY OF YOUR
AREAS THAT WILL NOT BE ABLE TO
BE BROUGHT FORWARD AND THOSE HOW
YOU KNOW THAT THAT HOUSING
DEVELOPMENT WE TARGET EXTREMELY
LOW INCOME HOUSING FOR THE MOST
PART, AND WE OFTENTIMES WE SAY
WE'RE CHANGING LIVES, BUT AND
OFTENTIMES WE'RE SAVING LIVES OF
FOLKS. AND SO THAT'S NOT GONNA
HAPPEN IF WE DO NOT HAVE THIS
CONSISTENT KIND OF THE STATE
CREDITS THE M HÌ P PROGRAM BEING
FUNDED AND COMING FORWARD. GREAT
AND THEN I'LL JUST ASK ONE MORE
QUESTION. THEN I'LL TURN IT BACK
TO THE CHAIR. UM YOU ALL SEE
ADDITIONAL NEED FOR MORE
STREAMLINING EITHER. I'M GONNA
JUST USE THE THIRD RAIL SEQUEL
UM OR OTHER AREAS THAT YOU THINK
WE WOULD BENEFIT FROM IN TERMS
OF MAKING OUR, UM RESOURCES GO
FURTHER AND OUR ABILITY TO BUILD
HOUSING QUICKER. WELL SO AT
JAMBOREE. WE'RE FORTUNATE. WE'VE
ONLY BEEN INVOLVED IN ONE S¼ W,
UH, LAWSUIT, BUT I KNOW THAT, UM
UH, EDEN HAS, UM, HAD THE
OPPORTUNITY TO BE IN INVOLVED IN
A FEW MORE SO I DON'T KNOW, UH,
IF MY COLLEAGUE WOULD WANNA
COMMENT ON THAT, SO I ACTUALLY
REALLY WANNA, UM, COMMEND THE
LEGISLATURE FOR DOING ALL THE
STREAMLINING WORK THAT YOU'VE
DONE. IT HAS MADE AN ENORMOUS
DIFFERENCE IN OUR ABILITY TO
MOVE PROJECTS FORWARD MORE
QUICKLY. UM I THINK WE STILL
HAVE A LITTLE A LITTLE THING WE
COULD DO BUT I. I UNDERSTAND
IT'S PROBABLY IMPOSSIBLE I. I
THINK WE NEED TO MAKE 100%
AFFORDABLE HOUSING PROJECTS THAT
HAVE CLEARED èC BALLOT PROOF. I
THINK YOU CANNOT MAKE THEM
SUBJECT TO REFERENDUM. UH, IF
YOU HAVE ANOTHER TWO HOURS, I
COULD TELL YOU A STORY THAT
WOULD CURL YOUR HAIR. UH, BUT IT
REALLY IS, UM, IT IS REALLY I
THINK WE'RE IN THIS REALLY ODD
GAME OF WHACK A MOLE NOW WITH
SOME OF THE WEALTHIER
COMMUNITIES WHO DON'T WANT TO
BUILD, AND I THINK THAT THAT
WE'VE CLOSED ALMOST ALL OF THE
CHALLENGES YOU CAN HAVE UNDER S¼
L IF IT'S ON A SITE THAT'S OWN
FOR AFFORDABLE HOUSING AND IT OR
COULD BE CONVERTED TO AFFORDABLE
HOUSING. YOU PRETTY MUCH CAN
BUILD IT AS AFFORDABLE HOUSING.
BUT I THINK PEOPLE ARE LOOKING
AT THE N A PROGRAM TO SUE.
THEY'RE LOOKING AT THE BALLOT TO
TAKE YOU TO THE BALLOT AND I. I
THINK WE HAVE TO BE SUPER
VIGILANT TO TRY TO GET THESE
PROJECTS DONE LIKE BY RIGHT. NÓ
CHALLENGES. THANK YOU. OR AT
LEAST IF THERE IS A CHALLENGE.
YOU GET ONE SHOT, RIGHT? YOU
DON'T GET TO COME BACK AGAIN AND
AGAIN AND AGAIN. I CAN JUST TELL
YOU JUST HAVING A LITTLE BIT OF
SECRET EXPERIENCE UNDER MY BELT
AND 35 YEARS. IT. NOT ONLY IT
DELAYS THE PROJECT. IT DOESN'T
PREVENT THE PROJECT. IT JUST
DELAYS. THE PROJECT IN MY
EXPERIENCE HAS BEEN YOU KNOW, IN
A GOOD MARKET. GUESS WHAT? I
MADE A LOT MORE MONEY BECAUSE I
GOT SUED UNDER S¼ QL. IT'S
UNFORTUNATE THAT HOUSING WOULD
HAVE BEEN A LOT MORE AFFORDABLE.
IF I'D HAVE BEEN BUILT IT BEFORE
WE GOT, YOU KNOW, WITHOUT A
LAWSUIT. IT'S UNFORTUNATE. IT
DOESN'T ALWAYS WORK OUT THAT
WAY. BUT I'VE SEEN IT HAPPEN.
THANK YOU. THANK YOU FOR THOSE
CANDID RESPONSES AND COMMENTS,
UH, MOVING ON TO OUR HOUSING
CHAIR, MR WARD. THANK YOU FOR
THIS, UH, VERY THOROUGH
DISCUSSION THIS MORNING. UM, I
THINK I WANTED TO BRING IT BACK
TO YOU KNOW MY INTEREST OVERALL
TO BE ABLE TO LOOK AT THESE LINE
ITEM BY LINE, AND AS WE WILL DO
IN OUR BUDGET SUBCOMITTEE, UH,
TO REALLY TRY TO DETERMINE THE
EFFICACY OF EACH OF THESE
PROGRAMS AND ISN'T JUST REALLY
QUICKLY TRYING TO ALIGN SOME OF
THE DIFFERENT. UM UH, MATERIAL.
THAT'S HERE ARE SOME OF THE
DIFFERENT, UH, GRAPH, OR, UH,
UM, CHARTS AND THAT ARE IN HERE
TO FIGURE OUT HOW THINGS ARE ARE
LOOKING AT LEAST MAYBE ON A PER
UNIT BASIS, MINDFUL THAT THERE'S
A LOT OF OTHER FACTORS RIGHT
THAT IT'S JUST, YOU KNOW, JUST
LOOKING SOMETHING ONLY AT A PER
UNIT. COST IS NOT THE ONLY THING
THAT WE SHOULD BE THINKING
ABOUT. UM BUT I, YOU KNOW,
DEFINITELY WANNA COMMEND, UH,
HOME KEY FOR COMING IN AROUND
$218,000 PER UNIT, RECOGNIZING
THAT'S THAT'S NOT NEW
CONSTRUCTION. BUT REHABILITATING
STOCK DO YOU FEEL DOES ANYBODY
THAT COULD ANSWER THIS QUESTION?
FEEL I KNOW THAT THAT CAME AT A
MOMENT IN TIME WHERE WE HAD A
LOT OF DISTRESSED PROPERTY. UM
THAT WAS, UH, AVAILABLE TO MAYBE
PURCHASE. UH, BECAUSE OF THE
DEPRESSION THAT WE SAW IN
TOURISM SECTOR AND TO BE ABLE TO
BE ABLE TO USE UM, LOWER CLASS.
UH, MOTEL. UH, CONVERSION AS
WELL FOR SOME OF THESE
PROPERTIES. DO YOU FEEL LIKE
WITH THE MARKET HAVING COME BACK
? UM IS HOME KEY, NOT AN
EFFECTIVE MODEL GOING FORWARD.
YEAH, II. I THINK IT IS STILL AN
EFFECTIVE MODEL. UM I DON'T KNOW
THAT IT'S AS COST EFFECTIVE AS
IT WAS, BUT I THINK FOR MY SPEED
PERSPECTIVE, IT'S AN EFFECTIVE
MODEL. AND, UM, I THINK IT IS.
DEFINITELY WORTH CONTINUING TO
FUND. UH, GOING FORWARD. OK
THANK YOU FOR THAT, UM, BECAUSE
YEAH, THAT'S AT 218. I'M AGAIN
BACK IN THE ENVELOPES HERE. I
SEE THE 88 S¼ èC PROGRAM IS
COMING IN AT 192 Kò PER UNIT. I
KNOW THE INFRASTRUCTURE INFO
GRANT. THAT'S WELL. IT'S ONLY
COMING IN AT 50 THREE Kò PER
UNIT. THAT'S REALLY TO OFFSET. I
THINK A LOT OF THE DEVELOPER
FEES THAT OTHERWISE WOULD MAKE
IT DIFFICULT FOR A PROJECT TO BE
ABLE TO PENCIL OUT. BUT MOST OF
THE OTHER PROGRAMS, WHICH
LARGELY ARE SUBSIDIZING THE BULK
OF THE CONSTRUCTION, YOU KNOW,
COMING IN IN THE RANGE OF, YOU
KNOW 301 TO THREE 100. AND 80
THREE 1000 PER UNIT AGAIN. SOME
OF THESE ARE COLLAPSED. I THINK
IN THE, UM UH IN THESE CHARTS
THAT ARE THAT ARE SORT OF
AGGREGATING SOME OF THESE
PROGRAMS AS WELL. I'M REALLY
GLAD WE GOT INTO THE TAX CREDIT
BECAUSE THAT'S NOT REALLY GOT,
UH UH, DESCRIBED HERE IN THE
BACKGROUND INFORMATION AND $500
MILLION A YEAR IS A SIGNIFICANT
AMOUNT OF STATE INVESTMENT. AND
SO IF I'M REALLY QUICKLY, UM,
CALCULATING SOME OF THE NUMBERS,
YOU YOU, YOU YOU SUBS, UH,
PROVIDED MISS MISS WENT, UH,
OVER THE LAST FOUR YEARS. $2
BILLION OF STATE INVESTMENT.
WHERE WE USED WHERE WE LATELY
WE'VE BEEN DOING ABOUT 48,000
UNITS RIGHT OF CONSTRUCTION OVER
THE FOUR YEARS THERE PRIOR TO
THAT WAS ABOUT 22,000. SO I'M
LOOKING AT. WAS IT ACCURATE TO
SAY THAT INCENTIVIZED 26,000
UNITS OF CONSTRUCTION THAT
OTHERWISE WOULDN'T HAVE HAPPENED
? YES UM, I DON'T THINK YOU CAN
JUST DIVIDE THAT BY THE NUMBER
OF UNITS, THOUGH I'D HAVE, WE'D
HAVE TO GO AND POLL IF YOU'RE
LOOKING AT THE COST PER THE
INVESTMENT PER UNIT, BUT, YES,
SURE, BUT THAT THAT THAT INSTEAD
OF MAY NOT HAVE BEEN THERE FOR
THOSE ADDITIONAL 26,000 UNITS
OVER THE COURSE OF FOUR YEARS AT
THE COST AT THE COST OF $77,000
PER UNIT. THAT WAS WHAT WE HAD
DECIDED TO FISCALLY, UM, GIVE UP
TO BE ABLE TO MAKE THAT HAPPEN.
AND I THINK THAT'S WHAT YOU'RE
SAYING, RIGHT THAT THAT'S LIKE
THE END OF THE DAY. LIKE I THINK
WHAT WE'RE TRYING TO SORT OF
TEASE OUT HERE, WHICH IS WHY IT
IS THE NUMBER ONE ISSUE AS I'VE
TALKED TO MY LOCAL AFFORDABLE
HOUSING DEVELOPERS, UM, THAT
WE'VE GOT TO FOCUS IN ON AND BE
ABLE TO, UH, TO PRESERVE AND
ALSO, UM, MAKE SURE THAT WE'RE
PROVIDING SOME GUARANTEE FOR
ONGOING FUNDING, NOT JUST IN
THIS PROGRAM BUT GOING FORWARD
SO THAT YOU CAN PLAN AHEAD THREE
YEARS AT A STRETCH, UM, TO BE
ABLE TO, UH, PULL OTHER THE
FINANCES THAT YOU NEED TO BE
ABLE TO MAKE ALL THESE PROJECTS
WORK OUT. UM, THE IN ADDITION TO
KIND OF UNDERSTANDING A COST PER
UNIT FACTOR, ALSO UNDERSTANDING
THE RATES OF OVERSUBSCRIPTION,
UH ARE ARE IMPORTANT, SO IF WE
KNOW THAT WE GENERALLY HAVE BEEN
GETTING PRETTY CLOSE TO DEMAND
ON A GIVEN PROGRAM, THAT'S
IMPORTANT INFORMATION. BUT THIS
OTHER PROGRAM OVER HERE THAT MAY
OR MAY NOT BE MORE COST.
EFFECTIVE IS ACTUALLY YOU KNOW,
RECEIVING, YOU KNOW, 10 TIMES
THE AMOUNT OF DEMAND THEN WE
HAVE EVER BEEN, UH PRESCRIBING,
AND THAT'S JUST THAT'S HELPFUL
INFORMATION FOR US TO BE ABLE TO
SORT OF WEIGH BETTER APPLES TO
APPLES. UM, HOW WE ARE ARE
MAKING THESE DECISIONS BETWEEN
THESE PROGRAMS. IF WE HAVE TO
TRADE THEM OFF, AND SO I
ENCOURAGE AS WELL. I WANT TO
THANK THE LE Ó FOR, UH,
DEVELOPING, UH, A LITTLE BIT
FURTHER AND FOR HÌ èC Dð. I'M
GONNA GO CHECK OUT YOUR
DASHBOARD, UH, THAT YOU WOULD
REFERENCE AS WELL. ALL THIS IS
REALLY HELPFUL INFORMATION THAT,
UM HELPS US TO ALIGN THE
CRITICAL COMPONENTS OF DECISION
MAKING. YEAH WE LOVE TO BE AS
HELPFUL AS WE CAN BE IN TERMS OF
HELPING UNDERSTAND THAT I WANNA
MAKE SURE YOU UNDERSTAND THE
HOME KEY PER UNIT COST. IT'S
PRETTY MUCH THAT'S THE Tð. I
MEAN IT IT YOU'RE GETTING THAT
UNIT FOR THAT COST, WHEREAS THE
OTHER STUFF WE WE'RE LEVERAGING
WITH MANY MORE SO YOU'RE NOT
GETTING THE TOTAL DEVELOPMENT
COST THERE. THE ONLY THING I'D
SAY IS LIKE IT'S IT THEY TRIED
TO GET AT THIS. IT'S ASSESSING
THE PUBLIC BENEFIT. WE SEE
SIGNIFICANT DEMAND ACROSS ALL
OUR PROGRAMS. BUT IF M HÌ P IS
AVAILABLE, THAT'S WAY MORE
OVERSUBSCRIBED THAN A MORE NICHE
PROGRAM. UM BUT IF THE NICHE
PROGRAM IS THE ONLY THING
EXISTED EXISTS. DEVELOPERS ARE
GOING AFTER THAT PROGRAM. SO
LIKE I WE SEE SIGNIFICANT. Dð
DOING EVEN IN AN ERA WHERE WE
HAVE M HÌ P AND THE MORE GENERAL
SOURCES, BUT IT'S SOMETHING TO
CONSIDER. BUT THOSE OTHER MEAN
MORE NICHE PROGRAMS. YOU MAY
WANNA ASSESS WHAT THAT PUBLIC
BENEFIT RETURN IS BETTER, RIGHT?
BECAUSE IF YOU'RE SERVING FOLKS
WITH CHRONIC MENTAL ILLNESS AT
15% OF THE AREA MEDIAN INCOME
THAT MAY BE DEEMED TO BE A MORE
VALUABLE USE THAN SOMEONE A
HOUSEHOLD OF 60% OF THE MEDIAN
INCOME THAT MAYBE IS JUST MORE
MORE MORE NEEDS TO AFFORDABLE
HOUSING FOR ECONOMIC REASONS,
RIGHT. WE HAVE A NUMBER OF FOLKS
IN THOSE NICHE PROGRAMS THAT
ARE, YOU KNOW, VETERANS FOLKS
EXPERIENCE MENTAL ILL. THOSE
SORTS OF THINGS WHERE WE'RE
LOOKING TO DO LIKE MORE TARGETED
PUBLIC BENEFIT RIGHT FOR THAT
LONG TERM INVESTMENT, AND SO
THAT'S JUST SOMETHING TO
CONSIDER. AS YOU AS YOU WEIGH
THOSE TRADEOFFS FULLY APPRECIATE
THAT, UM, FOR CAL HOME, I WONDER
MAYBE BACK TO THE LE Ó. IF YOU
COULD TALK ABOUT, UH, YOUR
OBSERVATIONS WHY THERE WAS SUCH
A SLOW ROLL OUT, UH, FOR SOME OF
THE CAL HOME DOLLARS THAT WE PUT
OUT THERE THAT WE HAVE SUCH A
LARGE BALANCE STILL STILL THERE.
WHEN REALLY, THAT SHOULD FLOW
THAT THE PROGRAMS EXIST RIGHT?
THE LOCAL RECIPIENTS THAT ARE
THAT ARE DISTRIBUTING THE GRANTS
ARE THERE BUT YET WE STILL HAVE
SUCH A HIGH FUND BALANCE. THANK
YOU, JENNY BELLA WITH THE
LEGISLATIVE ANALYST OFFICE. WE
DEFER TO THE DEPARTMENT. BUT
IT'S OUR UNDERSTANDING THAT THIS
MONEY IS JUST NOT BEEN MADE
AVAILABLE YET, SO ONCE THAT
MONEY IS AVAILABLE, THEN THERE
WILL BE APPLICATIONS FOR THIS. I
MEAN, I WOULDN'T SEE IT SLOW.
EVERY YEAR. WE'RE PUTTING OUT
CAL HOME MONEY. IT WAS JUST
WE'VE GOTTEN A LOT OF CAL HOME
MONEY. CALLUM SEEKS TO EVERY
TIME AN AFFORDABLE HOUSING BOND
IS PASSED. CALUM GETS A PRETTY
BIG INFUSION. UM AND SO THE MOST
RECENT ONE IN 2018 HAD A
SIGNIFICANT AMOUNT FOR CALM AND
THEN ON TOP OF THAT GENERAL FUND
WAS PUT ON BY THE LEGISLATURE.
SO WHAT WE DO IN THAT WITH
KELLUM IS PRETTY BROAD. WE
ACTUALLY PUT OUT A
HOMEOWNERSHIP. SUPERNOVA TWO.
THERE IS SOME MONEY FOR
HOMEOWNERSHIP. THERE ARE JO A
FARM WORKER GRANT PROGRAM, TOO.
SO WE COMBINE CAL HOME IN THAT,
AND THEN THERE'S A MULTIFAMILY
COMPONENT OFTEN WITH KELLUM, SO
WE ACTUALLY HAVE ANNUALLY AND WE
CAN GIVE YOU MORE DATA. IF IT'S
HELPFUL, BUT ANNUALLY. THERE IS
MONEY GOING ON FOR CALLUM EVERY
YEAR. IT'S JUST WE'VE GOTTEN
BIGGER AMOUNTS OVER. THE COURSE
OF THE LAST FIVE. I UNDERSTAND
YOU AND FOR THE 311 MILLION THAT
WE HAVE PUT OUT SO FAR INTO THAT
PROGRAM BEING ABLE TO HELP UH
3700 FAMILIES OR INDIVIDUALS
WITH THEIR HOME OWNERSHIP
OPPORTUNITIES IS, YOU KNOW
COMMENDABLE. IT COMES IN AGAIN
AS A STATE INVESTMENT OF 84,000.
AND IS THAT REMIND ME AGAIN?
THAT'S A GRANT. RIGHT THAT IS,
UH, THAT THAT'S GOING OUT THE
DOOR. THAT'S NOT LIKE A
REVOLVING LOAN FUND. YEAH,
THERE'S VARIETY OF USES IN
CALLUM. SO IT'S PRETTY BROAD
BASED. I MEAN, IT CAN EVEN FIND
AU DEVELOPMENT BUT TYPICALLY,
IT'S GOING OUT TO GRANT TO A
DEVELOPER OR A LOCAL GOVERNMENT
TO FACILITATE THAT ONE OF THE
CHALLENGES THAT WE HAVE WITH
THAT AGAIN. IF I HAVE TO START
TO MAKE SOME JUDGMENT CALLS IS
IT DOESN'T PRODUCE A NEW UNIT OF
HOUSING. IT DOES PRODUCE HOME
OWNERSHIP, AND THAT'S THAT'S
LAUDABLE, AND THAT'S EXCITING
RIGHT FOR THIS INDIVIDUALS THAT
ARE JUST LOOKING FOR THAT DOWN
DEPOSIT, WHICH IS VERY DIFFICULT
TO FIND IN A VERY HIGH COST OF,
UH, OF HOUSING MARKET. UM, BUT
IT'S JUST THERE ARE VARIATIONS
IN THE COLUMN THAT DO DO
PRODUCTION, ACTUALLY, SO WE CAN
GIVE YOU THAT BREAKDOWN AND POST
IF YOU WANT, BUT YOU'RE RIGHT.
IT DOES. ONE OF THE COMPONENTS
IS DOWN PAYMENT ASSISTANCE AS
WELL. SO WE CAN BREAK OUT THAT
NUMBER FOR YOU A NUMBER OF
DIFFERENT WAYS. IT DOES PRODUCE
NEW UNITS. IT'S NOT EXCLUSIVELY
DOWN PAYMENT SYSTEMS. FANTASTIC
UM AND THEN I, YOU KNOW,
BUILDING OFF OF WHAT MY
COLLEAGUE HAD SAID BEFORE. UM,
SOME OF THE PREVENTION PROGRAMS
OR SOMETHING THAT, UH, I FIND,
YOU KNOW, WE PROBABLY NEED TO
THINK ABOUT ME MAKING MORE
INVESTMENTS AT THE SAME TIME
THAT I'M TRYING TO PRESERVE. YOU
KNOW WHAT'S ON THE CHOPPING
BLOCK AS IT IS, UM, KNOWING HOW
COST EFFECTIVE SOME OF THOSE
COULD BE, I, YOU KNOW, COMING
FROM LOCAL GOVERNMENT HAD THE
OPPORTUNITY TO BE ABLE TO MAKE
SOME SO èC Dð B Dð DOLLARS,
RIGHT? AND YOU KNEW THAT THAT
WAS EITHER GONNA GO TO FUND SOME
NEW PROJECT OR YOU COULD WORK
WITH THE DEVELOPER TO PRESERVE
AFFORDABILITY FOR ANOTHER 35 OR
55 YEARS. AND THE CONSEQUENCE OF
THAT RIGHT IS THAT YOU WOULD
HAVE, YOU KNOW, MAYBE A 200 UNIT
BUILDING OF INDIVIDUALS, VERY
LOW INCOME THAT WERE ON THE
BRINK OF HOMELESSNESS RIGHT?
THEY WOULD HAVE FALLEN ON THE
STREETS. THEY WOULD HAVE BEEN
EVICTED. AND THEN YOU KNOW THE
CHALLENGES THERE COMMUNITY WIDE
WOULD HAVE BEEN THAT MUCH
GREATER. SO UM, YOU KNOW, SEEING
MORE AND I LOOK FORWARD. MAYBE,
UH, IN THE IN THE SINCE I HAD TO
UNDERSTAND A LITTLE BIT MORE
ABOUT THE PREVENTION PROGRAMS
THAT HAVE BEEN FUNDED AND HOW WE
ARE BANG FOR BUCK ON BEING ABLE
TO SUPPORT INDIVIDUALS, UM AND
NOT SEE THEM FALL INTO
HOMELESSNESS, I THINK IS
IMPORTANT, UH, UNDERSTANDING
INVESTMENTS. I DON'T KNOW IF
ANYBODY HAS. I SAW MISSY. YES, I
JUST I. I JUST WANNA COMMENT
BECAUSE I THINK THERE'S SORT OF
PRESERVATION IN TWO WAYS ONE.
YOU PREVENT PEOPLE FROM BECOMING
HOMELESSNESS, SO RAPID REHOUSING
DOLLARS THAT A LOT OF THE LOCALS
ARE ARE WORKING WITH FOLKS TO
KEEP THEM IN THEIR HOUSE. AND SO
I THINK THAT'S AN INVESTMENT
THAT A LOT OF OUR LOCAL
GOVERNMENTS HAVE BEEN MAKING, I
THINK ARE REALLY REALLY
IMPORTANT BECAUSE AND I. I DON'T
KNOW IF THE STATISTIC IS
CORRECT, BUT I'M PRETTY SURE
DIRECTOR OF VELASQUEZ SAID. FOR
EVERY ONE PERSON WE HOUSE 2.5
PEOPLE BECOME HOMELESS IN
CALIFORNIA. AND SO YOU REALLY
WANNA TRY TO KEEP PEOPLE HOUSE
THE OTHER, REALLY IMPORTANT
ASPECT OF THE WORK THAT WE ALL
DO, ESPECIALLY IN EDEN, BECAUSE
WE'RE OLD, UH, IS PRESERVATION
AND SO THE WORK THAT WE'RE DOING
TO REPOSITION EXISTING ASSETS
EXTEND THE LIFE OF THEIR
AFFORDABILITY. SUPER IMPORTANT
ASSEMBLY MEMBER A WORD. I KNOW
YOU'RE WORKING ON A BILL THAT
WOULD ALLOW HÌ èC Dð TO HELP DO
RE REFINANCINGS. IT MIGHT
POTENTIALLY RECYCLE SOME OF HÌ.
THESE DOLLARS THAT ARE KIND OF
LOCKED IN THE AGING PROPERTIES
AND CREATE A RESOURCE THAT CAN
BE RELENT TO NEW DEVELOPMENTS.
SO I WOULD ENCOURAGE YOU TO
CONTINUE TO THINK ABOUT THAT,
BILL. UM BECAUSE, I, I THINK
THOSE KINDS OF LOW HANGING EASY
TO DO THINGS THAT DON'T COST YOU
NECESSARILY NEW MONEY BUT COULD
HELP YOU PRESERVE THE STOCK THAT
WE HAVE AND UPGRADE IT. AND I
KNOW Tð CÁC IS WORKING ON HOW
THEY ALLOCATE MORE OF THEIR
UNUSED BOND CAP. UH FOR
PRESERVATION. SUPER IMPORTANT,
IT'S A REALLY GREAT WAY FOR ALL
OF US TO TRY TO SURE THE STOCK
WE HAVE STAYS HIGH QUALITY FOR
THE LONG TERM. YEAH, THANK YOU.
AND THE LAST THING I'LL JUST
KIND OF NOTE ON IS THAT YOU
KNOW, LIKE MY COLLEAGUES, YOU
KNOW, AND NOT JUST THROUGH THIS
BILL, BUT FOR PREVIOUS BILLS AS
WELL WORKING WITH HÌ èC Dð ON
SOME OF THE KIND OF BUREAUCRATIC
REFORMS. UM I HATE TO USE THAT
AS A NOT A PEJORATIVE WORD, BUT
JUST IT IS WHAT IT IS. WE WANT
TO MAKE SURE THAT WE'RE HELPFUL
FOR YOU. AND WE'RE LOOKING AT
THE RULES THAT YOU ARE REALLY
BOUND BY, UH, TO TRY TO LOOSEN
THAT UP SO THAT YOU CAN HE HELP
THINGS FLOW A LOT FASTER. UM AND
ANYWHERE THAT WE'RE SEEING, YOU
KNOW, CONSOLIDATION OF EFFORT
ACROSS THIS, UH, DEPARTMENTS OR
WITH THE TREASURER'S OFFICE, YOU
KNOW, WE PARTNERS IN THAT, TOO,
BECAUSE WE WANNA I MEAN, HEAR
FROM LOCAL DEVELOPERS THAT WE
NEED TO HAVE EVERYTHING AT THAT
TABLE. I'D BE CURIOUS IF ANYBODY
WANTS TO COMMENT ON THE
SUPERNOVA PROCESS NOW THAT IT'S
BEEN UP AND RUNNING FOR A LITTLE
WHILE AND HOW THAT'S GOING. BUT
IN THAT SAME VEIN, HOW DO WE
CONTINUE TO GET INTO THE SPIRIT
OF LAYING EVERYTHING ON THE
TABLE TOGETHER AND MAKING
DECISIONS, SO IT'S NOT SOMETHING
ITERATIVE THAT'S TAKING IN A
DEVELOPER TWO OR THREE YEARS TO
RENDER A DECISION. UM BUT WE'RE
GETTING TO A PLACE RIGHT NOW
WHERE THINGS CAN JUST HAPPEN A
LOT FASTER AND GET THE RESOURCES
OUT TO DEVELOPMENT. YEAH, I
WOULD JUST BUILDING UPON THAT. I
THINK IT'S REALLY IMPORTANT THAT
THE POLICY DIRECTION YOU KNOW,
IS VERY CLEAR. ARE WE TALKING
ABOUT GETTING UNITS PRODUCED AS
QUICKLY AS POSSIBLE. AND IF WE
ARE, THAT'S HOW THEN EACH OF THE
PROGRAMS AND THOSE THAT RUN THE
PROGRAMS COULD BE JUDGED AS
BEING SUCCESSFUL, RIGHT? OR ARE
WE TALKING ABOUT LEVERAGING THE
SMALLEST AMOUNT OF MONEY
AVAILABLE TO BUILD THAT UNIT AND
SENDING THE DEVELOPER TO GO OUT
AND COLLECT 5 TO 7 OTHER LAYERS
OF FINANCING RIGHT? AND I THINK
THAT'S WHAT WHERE WE'RE AND I
THINK, UM I THINK THAT WE HAVE
THE ABILITY TO CHANGE THAT AND
GET UNITS PRODUCED QUICKER AND
EVERY TIME I SIT DOWN WITH THE
LOCAL, YOU KNOW, PLANNING
DIRECTOR AND THEY SAY, WELL,
WE'VE GOT THIS MUCH OUT IN
HOUSING DOLLARS AND IN NÓ F, AND
IT'S GOING TO TAKE THIS LONG AND
THIS LONG, I THINK TO MYSELF
WELL, OK, BUT HOW MANY PERMITS
HAVE BEEN PULLED IN THE CITY FOR
AFFORDABLE HOUSING OR EVEN
MARKET RATE HOUSING, RIGHT? AND
HOW QUICKLY ARE THOSE UNITS
GETTING BUILT? AND WHAT ARE YOU
DOING TO EXPEDITE THAT AND I
THINK THAT THERE'S SOME LOW
HANGING FRUIT HERE THAT YOU'RE
KIND OF, UH, YOU KNOW, MAYBE
HINTING AT OR OR WORKING ON THAT
I THINK COULD GO A LONG WAY. OK,
THANK YOU ALL. THANK YOU, MR
CHAIR. THANK YOU, MR WARD. WE
WILL NOW MOVE ON TO MS REYES.
THANK YOU, MR CHAIR. I THINK, I.
I REALLY APPRECIATED THE
COMMENTS AND THE QUESTIONS FROM
OUR BUDGET CHAIR OR OR
APPROPRIATIONS CHAIR. UM
RELEASING THE FUNDS EARLY ONCE
AWARDED BY HÌ èC Dð, UH, WE
KNOW THAT WE'RE REDEVELOPMENT
MONEY. WE ALWAYS KNEW WHAT TO
EXPECT. AND THERE'S THE NEED TO
BE ABLE TO DUPLICATE THAT AND
FIND ONGOING FUNDING.
STREAMLINING ALSO CLEARLY
SOMETHING EXTREMELY IMPORTANT.
SOMETHING FOR ME AND OUR BUDGET
CHAIR TALKED ABOUT THIS AND SO
DID OUR HOUSING. UM BUDGET
SUB-COMMITTEE CHAIR TALKED
ABOUT. AND I. I STILL DON'T
UNDERSTAND. UH, THIS IS THE
COMMITTEE FOR ACCOUNTABILITY AND
OVERSIGHT. IT'S A NEW COMMITTEE
BECAUSE WE REALIZE THAT THERE
ARE THERE IS MONEY THAT IS GOING
OUT AND WE DON'T HAVE TRUE
ACCOUNTABILITY. AND I CAN TELL
YOU THAT MY CONSTITUENTS ARE THE
ONES THAT ARE SAYING WE SPENT
BILLIONS OF DOLLARS. HOW MANY
UNITS HAVE YOU ACTUALLY HAVE YOU
ACTUALLY BUILT? AND THAT'S AN
ONGOING QUESTION FOR ME. I STILL
CANNOT ANSWER THAT. I. I WAS
JUST TRYING TO LOOK AT THE
CHARTS THAT THAT WERE PROVIDED.
WE'VE GOT THE ONE PAGER THAT
SAYS PAGE THREE, AND THEN WE
HAVE FROM THE L A Ó PAGE FOUR.
AND JUST TRYING TO PUT THE TWO
TOGETHER. THE JOE SERNA, THE
FARM WORKER HOUSING PROGRAM. A
TOTAL OF 100 MILLION HAS BEEN
ALLOCATED TO THAT. AND IF I LOOK
AT THIS ONLY 160 UNITS HAVE BEEN
COMPLETED. SO IF I DO THE MATH
THE IT DOESN'T SOUND LIKE THE
SAME THING OF WHAT? WHAT I'M
HEARING HERE. THE OTHER ONE IS
THE VETERAN HOUSING A TOTAL OF
50 MILLION. AND WE HAVE 415
UNITS THAT HAVE BEEN
CONSTRUCTED. SO IF FOR ME
THERE'S A DISCONNECT, AND I KNOW
THERE ARE LOTS OF OTHER FACTORS
THAT HAVE ALREADY BEEN TALKED
ABOUT. BUT IF WHAT I WOULD LIKE
TO SEE IS A CHART THAT SHOWS HOW
MUCH MONEY WAS ALLOCATED. NEXT
TO THIS HOW MUCH MONEY WAS
ALLOCATED FOR THE PROGRAM OVER
THE SIX YEARS BECAUSE THIS TALKS
ABOUT 2018 TO THE PRESENT. AND
WE'RE TALKING ABOUT UNITS 2018
TO THE PRESENT. SO IF WE KNOW
HOW MUCH WAS ALLOCATED AND THEN
HOW MANY UNITS WERE CAME OUT OF
THAT THAT HELPS ME TO EXPLAIN TO
MY CONSTITUENTS. WHAT WE'RE
DOING WITH OUR MONEY AGAIN. THIS
IS OVERSIGHT AND ACCOUNTABILITY,
AND FOR SOME OF IT, IT IS THE
WRAPAROUND SERVICES. SO A LOT OF
MONEY SPENT ON THAT. UM AND WE
KNOW THE 5% ADMINISTRATIVE FEES
OR 20% DEPENDING ON WHICH
PROGRAM WE'RE WE'RE TALKING
ABOUT. BUT THAT'S IMPORTANT FOR
ME TO BE ABLE TO LOOK TO SEE
WHAT MONEY HAS BEEN INVESTED.
AND WHAT THE RATE OF RETURN JUST
LIKE MY COLLEAGUE HAS TALKED
ABOUT. WHAT'S THE RATE THE RATE
OF RETURN ON THE RETURN ON
INVESTMENT? THEN. FOR ME JUST AS
AN INDIVIDUAL LEGISLATOR. I'M
ABLE TO LOOK AT THIS AND SAY,
OH, THIS IS WHEN WE SHOULD
INVEST IN BECAUSE I KNOW THAT
YOU ALL ARE GOING TO, UM,
PROTECT ALL OF THE PROGRAMS AND
I. I GET IT, AND I HEARD IT IN
THE RESPONSES, BUT I THINK IT TO
MAKE THOSE DECISIONS ON WHICH
PROGRAMS WE NEED TO MOVE FORWARD
WITH AS OUR BUDGET CHAIR. ASKED
ABOUT EARLIER, WE DO NEED
ACCURATE AND HONEST INFORMATION
AND IT IT IN A WAY THAT FOR
SOMEBODY LIKE ME TO BE ABLE TO
SEE IT ON A CHART. THIS IS HOW
MUCH WE INVESTED AND THIS IS
WHAT WE GOT IN RETURN. I
RECOGNIZE WE NEED ADDITIONAL
FEDERAL FUNDING AND THE
LEVERAGING II. I UNDERSTAND THAT
NOT COMPLETELY NOT LIKE SOME OF
MY OTHER COLLEAGUES. BUT I
UNDERSTAND THAT BUT I WANT TO
KNOW WHAT WE'VE INVESTED IN EACH
PROGRAM AND WHAT THE RATE OF
RETURN ON THAT INVESTMENT HAS
BEEN AND HOW WE CAN BETTER
EVALUATE AS THIS ACCOUNTABILITY
AND OVERSIGHT COMMITTEE. IT'S
JUST MY COMMENT AND SOMETHING
THAT I WOULD LIKE TO SEE IN THE
FUTURE. THANK YOU, MR CHAIR. MS
REYES. THANK YOU FOR REITERATING
THAT POINT AND THE PURPOSE OF
THIS COMMITTEE IT MEANS A LOT,
AND WE'LL STICK TO THAT. THANK
YOU. MOVING ON TO MR JUAN
CARRILLO. THANK YOU, MR CHAIR.
YOU KNOW FOR AS LONG AS WE
CONTINUE TO INSIST THAT
AFFORDABLE HOUSING SHOULD ONLY
BE BUILT IN THE BAY AREA. LOS
ANGELES SAN DIEGO ANAHEIM.
THERE'S JUST NÓ SUCH THING AS
AFFORDABLE HOUSING. OR VERY
BASIC PRINCIPLES. THE COST OF
REAL ESTATE. UH, WHEN YOU LOOK
AT BUILDING THIS MULTI FAMILY
PROJECTS IN THOSE CITIES THAT I
MENTIONED REAL ESTATE IS
EXPENSIVE. THERE IS NÓ VACANT
LAND YOU HAVE TO ACQUIRE PARCELS
THAT HAVE ALREADY BEEN DEVELOPED
WITH BUILDINGS ON THEM. WHAT
DOES THAT MEAN? YOU HAVE TO TEAR
THEM DOWN. THAT THAT'S COST.
EVEN IF YOU REUSE EXISTING
BUILDINGS THAT ARE BUILT FOR
COMMERCIAL OR INDUSTRIAL,
THEY'RE NOT. THEY DON'T MEET THE
BUILDING COSTS FOR RESIDENTIAL
OCCUPANCY, SO THAT'S ANOTHER
COST. SO FOR ME AGAIN, AS LONG
AS WE CONTINUE TO TALK ABOUT
AFFORDABLE HOUSING IN THIS
URBANIZED AREAS, IT'S JUST IT'S
NOT GONNA EXIST. UM AREAS THAT I
REPRESENT THE HIGH DESERT PAL,
THE LANCASTER VICTORVILLE, HIS
PERIA DE ANTO. PEOPLE ARE STILL
COMING UP THERE TO LEAVE.
THEY'RE STILL BUYING HOMES THAT
ARE $900,000. IT'S STILL
EXPENSIVE. BUT YES, MORE
AFFORDABLE THAN L, A BECAUSE IN
L A. THERE ARE A MILLION DOLLAR
HOMES. SO FOR ME AGAIN AS LONG
AS WE START AS LONG AS WE
CONTINUE TO BELIEVE THAT WE'LL
BE ABLE TO BUILD AFFORDABLE
HOUSING IN THOSE URBANIZED
AREAS, WHICH IS WE'RE NOT GONNA
MEET THAT GOAL. WE IN THE HIGH
DESERT AGAIN? KEEP GETTING
PEOPLE COMING OUT THERE. AND
DEVELOPERS WANT TO DEVELOP
THERE. BUT THE FINANCING IS NOT
THERE BECAUSE BANKS DON'T
BELIEVE THAT THE MARKET EXISTS
THERE. WITH OTHER SOLAR
CHALLENGES. I REALIZED THAT
BRINGING PEOPLE TO THIS THE
HIGHEST ROAD, EVEN THE CENTRAL
VALLEY OF CALIFORNIA, WE NEED TO
ALSO INVEST IN TRANSIT. PUBLIC
TRANSPORTATION. BETTER, UH,
MEANS OF LETTING PEOPLE GO TO
WHERE THE JOBS ARE. WE NEED TO
GET MORE JOBS IN THOSE AREAS,
TOO. SO VERY RESPECTFULLY AS
LONG AS WE CONTINUE TO HAVE
THESE CONVERSATIONS OF
AFFORDABLE HOUSING, WHERE THERE
IS NÓ REAL ESTATE AVAILABLE IN
THOSE CITIES, L A SAN DIEGO
ANAHEIM AGAIN ALL OF THOSE AREAS
WE'RE NOT GONNA MEET THAT GOAL.
I THINK THAT WE NEED TO INVEST
IN AREAS THAT ARE GROWING. NOT
ONLY IN HOUSING AGAIN, UH,
BECAUSE THERE'S SO THE
CHALLENGES WE'RE BRINGING PEOPLE
TO WHERE THE JOBS ARE OUR BUDGET
SHARE US. WHAT CAN WE DO TO GET
THE MOST BENEFIT WITH THE
LIMITED RESOURCES THAT WE HAVE?
TO ME. ONE OF THAT IS WHERE LAND
IS AVAILABLE. AND MORE
AFFORDABLE. UM AGAIN WHEN THOSE
DEVELOPERS WANNA COME TO DEVELOP
IN THESE AREAS THAT I REPRESENT.
THEY DON'T GET THE FINANCING,
AND I THINK THAT ALSO PUTS US AT
A VERY BIG DISADVANTAGE BECAUSE
THE, UH, POINTS THAT ARE
ASSIGNED FOR DEVELOPMENT.
THROUGH OR OTHER OTHER MEANS OF,
UH, FINANCING. PUT US IN A VERY
BIG DISADVANTAGE, WHICH IS DON'T
QUALIFY. TO GET THOSE THOSE
DOLLARS THAT A RE AVAILABLE THAT
A RE VERY, VERY COMPETITIVE. UM
THOSE ARE MY COMMENTS AGAIN. I.
I JUST THINK THAT WE NEED TO
REALIZE THAT, UH AFFORDABLE
HOUSING IS ONE THING, BUT WHEN
WE LOOK AT THE COST OF REAL
ESTATE, WE'RE NEVER GONNA GET
THERE. THANK YOU, MR CHAIR.
THANK YOU, MR CREW REALLY
APPRECIATE YOUR TENACITY IN
ADVOCATING FOR YOUR DISTRICT AND
OTHER PARTS OF THE STATE THAT
SOMETIMES DO GET OVERLOOKED INTO
HOUSING IS A STATEWIDE ISSUE, SO
WE HAVE TO APPROACH IT JUST THAT
WAY. MOVING ON NOW TO, UH MR
PATTERSON. MR PATTERSON. OK, ANY
OTHER COLLEAGUES THAT HAVE SOME
QUESTIONS AT THIS TIME? LÀ YEAH,
I DON'T REALLY NECESSARILY HAVE
A QUESTION JUST TO COMMENT
BEFORE I DEPART THAT, UH WE TALK
A LOT OF BEING PROUD ABOUT THE
STREAMLINING THAT'S BEEN DONE
AND I. I WOULD SAY THAT WHEN IT
TAKES OVER 600 CALENDAR DAYS
JUST FOR PERMITTING WE DO A LOT
BETTER. AND I THINK THAT THAT IS
REALLY WE'VE BATTERED BACK AND
FORTH AT TIME. AS A BENEFIT
WHILE TIME EQUALS MONEY. AND SO
WHEN MONEY IS SO SCARCE THAT
THIS PARTICULAR TIME WE SHOULD
BE DOING MORE IN THIS, UH I
BECAUSE I DO BELIEVE WE'RE OVER
REGULATING. WELL INTENDED OVER
REGULATING BUT WE NEED TO CHOP
IT AND WE NEED TO, UH,
STREAMLINE THE TIMING. BECAUSE
WE'RE IN CONTROL. WE'RE THE ONES
THAT MAKE THESE RULES. BUT WE'RE
THE ONES THAT ACTUALLY NEED TO
BE, UH, DOING THE HAIRCUT. SO,
I. I WANT YOU TO KNOW THAT, UH I
SEE IT THAT WAY. AND I THANK YOU
FOR THE INFORMATION YOU SHARED
WITH US THERE. THERE ARE SOME
SOME THINGS THAT NEED TO BE DONE
RIGHT AWAY. AND I THINK THAT
THIS REGULATING IS ONE OF THEM.
THE STREAMLINE. WE'VE GOTTEN
BRIGHT ENOUGH PEOPLE. THAT
UNDERSTAND WHERE THESE CAN BE
DONE. WHERE WERE THESE
EFFICIENCIES COULD TAKE PLACE,
AND, UH, I HOPE THAT WE HAVE THE
WILL TO DO THAT. ESPECIALLY NOW
THAT WE HAVE THIS BIG MO
MOTIVATION. UH, WITH OUR OUR
BUDGETARY CRISIS THAT WE'RE
FACING WITH. SO THANK THANK YOU
FOR ALL YOUR TIME TODAY. THANK
YOU FOR THE REMARKS. IT WAS VERY
ENLIGHTENING. THANK YOU. MISTER
LACKY. THANK YOU, UH, NOW BACK
TO OUR SUBCOMITTEE CHAIRPERSON,
MR N CROSSOVER. UH, I WANTED TO
REFER TO THE HANDOUT. I'M
ASSUMING THAT YOU ALL GOT THIS
ON ON, UH, THE BUDGET THE
GOVERNOR'S PROPOSED BUDGET CUTS.
YOU GUYS GET THAT HAND OUT AS
WELL? YES AND IT'S ON PAGE FIVE,
AND IT'S THE GOVERNOR'S PROPOSED
BUDGET CUTS. THERE'S SEVERAL,
UH, PROGRAMS THAT ARE PROPOSED
TO BE CUT. UH, WE KNOW THAT, UH,
WITH THE NUMBERS COMING IN FROM
THE BUDGET THAT THERE ARE GOING
TO BE INDEED CUTS, UH, THERE MAY
BE PROGRAMS THAT ARE NOT EVEN
LISTED ON THIS. THAT UH, COULD
BE CUT. IN ADDITION, UH, DO YOU
HAVE ANY COMMENTS OR THOUGHTS ON
THESE PROPOSED CUTS? AND I GUESS
PUTTING YOU ON THE SPOT. IS
THERE ANY PROGRAM THAT YOU, UH,
WOULD FEEL CONFIDENT ENOUGH TO
SAY? YOU KNOW, I THINK WE COULD
DELAY THIS OR CUT THIS, UH,
BECAUSE THAT'S IN FACT WHAT
WE'RE GOING TO BE LOOKING AT
DOING VERY SHORTLY. UH, WE DO
HAVE ANOTHER HEARING ON, UH,
APRIL 9TH. IF YOU'RE NOT
COMFORTABLE SAYING THAT TODAY
BUT AT LEAST GETTING US
INFORMATION OF OTHER PROGRAMS,
UH, THAT WE'RE GONNA HAVE TO
LOOK AT UNDER HOUSING THAT ARE
GOING TO HAVE TO BE CUT. ANY
COMMENTS. YES UM, THANK YOU. UM
SO I THINK YOU GO DOWN THE LIST,
AND I DON'T KNOW THAT I HAVE
EXACTLY WHAT YOU'RE LOOKING AT.
BUT THE STATE TAX CREDITS THE
IIG PROGRAM AND THE MULTIFAMILY
HOUSING PROGRAM ARE REALLY THE
KEY. PROGRAMS FOR PRODUCTION IN,
UH IN MY OPINION, NOW WE HAVE
DONE UM, QUITE A BIT OF HOUSING
FOR VETERANS, AND WE'VE UTILIZED
THE VÆ HÌ HÌ P PROGRAM, BUT WITH
THE SUPPORT OF, UM THE STATE AND
LOCAL GOVERNMENT, AND NOW THIS
IS JUST ORANGE COUNTY. WE ARE
REACHING A, UM SITUATION WHERE
WE HAVE HOUSED OUR HOMELESS
VETERANS IN ORANGE COUNTY, SO
THAT PROGRAM HAS BEEN VERY
EFFECTIVE AND USEFUL. I KNOW
THAT'S NOT THE CASE IN OTHER
COUNTIES, BUT POTENTIALLY THAT
COULD BE FOLDED INTO THE M HÌ P
PROGRAM AGAIN KIND OF
SIMPLIFYING AND BE BE A SUBSET
OF THAT. UM AND, UH SO THAT
WOULD BE MY COMMENT, LOOKING AT
THOSE CUTS. CAN YOU JUST REPEAT?
YOU SAID A TAX CREDIT. YEAH THE
STATE TAX CREDITS THE INFO
INFRASTRUCTURE GRANT IN THE
MULTIFAMILY HOUSING PROGRAM, I
THINK ARE YOUR CORE PRODUCTION
PROGRAMS THAT WE UTILIZE
THROUGHOUT THE STATE? THANK YOU.
I WOULD JUST ADD TO THAT. I
MEAN, DEPENDING ON THE FATE OF
PROP ONE SOME OF THESE PROGRAMS
LIKE, UH, THE NAVIGATION PROGRAM
I. I WOULD HAVE THE QUESTION IF
I WERE A LEGISLATOR ABOUT WHAT
COULD PROP ONE IF IT PASSES FUND
THAT'S ON THIS LIST THAT YOU
COULD MAYBE PUT A PAUSE ON IT
AND WAIT AND SEE WHAT'S COMING
OUT. UH, OF THAT. SO UM, HOUSING
NAVIGATORS IS ONE. I KNOW A LOT
OF OUR LOCAL GOVERNMENTS ARE
USING SO I, YOU KNOW, IT'S A
SMALL PROGRAM. RELATIVELY
SPEAKING IN THE STATE BUDGET,
BUT I DO I DO WONDER IF IT IF
PROP ONE DOES PASS, WHETHER
THERE'S SOME OPPORTUNITIES TO
MOVE SOME OF THE THOSE PROGRAMS
INTO THAT. UM, WE WOULD JUST ADD
ON THAT. YOU KNOW THE GOVERNOR'S
BUDGET. PRO PRO PROPOSES ONE
PACKAGE OF SOLUTIONS. OBVIOUSLY
YOU HAVE DIFFERENT CHOICES YOU
CAN MAKE. I THINK, IN ADDITION
TO THE THINGS YOU'VE HEARD
TODAY, ONE THING OUR OFFICE HAS
SAID, IS TO LOOK AT THOSE
PROGRAMS WHERE THE FUNDING HAS
NOT YET GONE OUT NEW PROGRAMS
ONE TIME FUNDING, UM, THAT MIGHT
BE SOMEWHERE TO ALSO LOOK UM,
YOU KNOW, I THINK WHAT I THE
POINT I WOULD LIKE TO MAKE IS
THAT YOU KNOW, AT SID LAG, WE
ALLOCATE, UM, FEDERAL TAXES ON
BOND FINANCING THAT IS USED FOR
A VARIETY OF DIFFERENT SOURCES
OF RESOURCES THAT CAN BE USED
FOR MULTIFAMILY FAMILY. FA
MULTIFAMILY HOUSING PRODUCTION,
SINGLE FAMILY EXEMPT FACILITIES.
UM AND WHEN WE LOOK AT PRIOR TO
2020, THE STATE WE REALLY
STRUGGLED AT ALLOCATING THOSE
RESOURCES, UM FULLY AND IT
WASN'T UNTIL WE HAD STATE
INVESTMENT COMING IN IN 2020
THAT WE WERE ABLE THAT SUDDENLY
THAT PROGRAM ACTUALLY BECAME
HIGHLY OVERSUBSCRIBED. UM, AND
THAT'S WHAT CAUSED US TO BE ABLE
TO DOUBLE THE PRODUCTION OF NEW
AFFORDABLE HOUSING UNITS, UM,
THROUGHOUT THE STATE. AND SO I
THINK I JUST THAT WHAT I WOULD
WANT TO IMPART ON YOU. IS THAT
THE PROGRAMS BOTH THE, UM AT SID
L AND THEN WITH THE TAX CREDIT
ALLOCATION COMMITTEE. THESE ARE
FEDERAL RESOURCES. BUT MOST OF
THOSE RESOURCES REQUIRE
ADDITIONAL STATE DOLLARS IN
ORDER TO LIKE TRULY LEVERAGE.
UM, WHAT WE'RE GETTING FROM THE
FEDERAL GOVERNMENT AND, UM THE
CONCERN I WOULD HAVE, AS
LAWMAKERS IS KIND OF WHAT I
MEAN. I'M NOT MY HERE BUT LIKE
TO THINK ABOUT IS OUR WILL WE BE
UNDER UTILIZING FEDERAL
RESOURCES. UM BY NOT FUNDING
SOME OF THESE PROGRAMS. UM SO I
THAT'S AN IMPORTANT THING I
THINK TO CONSIDER IN MAKING THE
TOUGH CHOICES THAT YOU AND THE
GOVERNOR NEED TO MAKE THIS YEAR.
THANK YOU FOR IDENTIFYING THAT
POINT. WE HAVE TO MAXIMIZE
RESOURCES THAT WE HAVE. IN
ADDITION TO COLLABORATING AND
JOINING AS MANY RESOURCES AS
POSSIBLE TO MAKE SURE THAT WE'RE
ADDRESSING THE HOUSING CRISIS AS
EFFECTIVELY AS POSSIBLE. UH, NOW
BACK ON TO, UH, OUR BUDGET
CHAIR, MR GABRIEL. OK? UM, THANK
YOU VERY MUCH, MR. CHAIR. UM SO,
I. I JUST WANTED TO ASK, UH, A
QUÊ A COUPLE OF QUESTIONS FOR
THE PANELISTS. AND THANK YOU ALL
FOR YOUR INSIGHT. WE VERY MUCH
APPRECIATE IT. UM AND I GUESS
FIRST, LET ME JUST MAKE A
COMMENT, WHICH IS THAT I THANK
YOU TO OUR OUR SUB COMMITTEE
CHAIR, I. I ALSO AS I MENTIONED
AT THE OFFSET HERE HAVE A LOT
OF, UM, CONCERNS ABOUT SOME
OTHER PROPOSED SOLUTIONS, UH,
THAT WOULD INVOLVE CUTS TO OUR
HOUSING PROGRAMS AND UNDERSTAND
THAT WE MAY HAVE TO MAKE SOME
VERY DIFFICULT CHOICES. BUT I
THINK YOU KNOW, MISS WAT MADE AN
EXCELLENT POINT ABOUT ARE WE
LEAVING FEDERAL DOLLARS ON THE
TABLE? AND WHAT ARE WHAT ARE
WHAT? WHAT ARE THE WISEST CHOICE
WE CAN MAKE? UM AND ALSO JUST
MINDFUL OF THE FACT THAT I WORRY
THAT CUTS IN THIS AREA MIGHT BE,
UM PENNY. AND POUND FOOLISH
RIGHT THAT WE WOULD BE SAVING
MONEY ON ONE HAND, BUT OUR
EXPENSES THROUGH SOCIAL SERVICES
AND THROUGH COW WORKS AND
THROUGH OTHER, UM ALL KINDS OF
OTHER EXPENDITURES WOULD GO UP.
AND SO I THINK THAT THAT'S A
CONVERSATION. OBVIOUSLY THAT WE
NEED TO HAVE WITH OUR PARTNERS
IN THE ADMINISTRATION. I KNOW
THAT THEY'RE THINKING ABOUT THE
SAME THING THEY ARE. YOU KNOW,
IF WE'RE IF WE'RE IN A DIFFICULT
BUDGET, YOU KNOW THERE MIGHT NOT
BE A LOT OF GOOD CHOICES, BUT I
JUST WANT TO MAKE SURE THAT
WE'RE THINKING, UM, YOU KNOW
GLOBALLY ABOUT ALL OF THE
IMPACTS OF THE CHOICES WE MIGHT
MAKE, AND THAT'S WHY THESE
PROPOSED CUTS TO HOUSING AND
HOMELESSNESS PROGRAMS. GIVE ME
THE MOST HEARTBURN, I GUESS.
PROBABLY THE WAY TO, UM, THE WAY
TO ARTICULATE IT. AT THIS
MOMENT. I'M CURIOUS TO GET SOME
THOUGHTS FROM THE PANEL ABOUT,
UM, LOCAL GOVERNMENT, UH, AND
THE ROLE THAT THEY PLAY IN THIS
PROCESS. UM YOU KNOW, ONE OF THE
THINGS THAT I HAVE SOMETIMES
WORRIED ABOUT IS THAT A LOT OF
US ARE TRYING TO RUN IN ONE
DIRECTION UP HERE. UH OR MAYBE I
WOULD SAY PEDAL IN ONE
DIRECTION, AND THEN WE HAVE
FOLKS IN SOME OF OUR LOCAL
GOVERNMENTS WHO ARE PUMPING THE
BRAKES AND ACTUALLY POTENTIALLY
UNDERMINING SOME OF THE POLICY
CHOICES THAT WE'RE MAKING, OR,
UH, MAKING THE INVESTMENTS OR
OR, UH, COUNTERACTING SOME OF
THE INVESTMENTS THAT WE'RE
TRYING TO ADDRESS THESE ISSUES.
SO THIS IS JUST AN OPPORTUNITY
FOR, UH, ANY OF THE FOLKS UP
THERE IF YOU HAVE THOUGHTS ABOUT
HOW WE MIGHT, UH, ADDRESS SOME
OF THOSE SITUATIONS AND HOW WE
MIGHT THINK ABOUT IT, I'D LOVE
TO HEAR YOUR THOUGHTS AND
FEEDBACK, PARTICULARLY FROM THE
DEVELOPMENT COMMUNITY. SURE I
MEAN, I THINK LOCAL GOVERNMENT
OBVIOUSLY PLAYS A KEY ROLE IN
THE SUCCESS OR, UH, NOT BEING
SUCCESSFUL IN HOUSING
DEVELOPMENT, AND THERE'S MANY
WAYS THAT THE STATE CAN
INCENTIVIZE LOCAL GOVERNMENT TO
COME TO THE TABLE TO HELP FIND
SOLUTIONS. UM, BUT I ALSO THINK
THAT, UM, ONE OF THE THINGS THAT
REDEVELOPMENT DID WELL WAS IT
TIED TOGETHER ECONOMIC
DEVELOPMENT WITH HOUSING, AND
WHEN WE TALK ABOUT LIKE THE
ANTELOPE VALLEY, I MEAN, IT IS
PRIME FOR ECONOMIC DEVELOPMENT.
WE RECRUIT LOCKHEED AND OTHER
JOBS UP THERE, AND THEN WE
PAIRED THEM WITH HOUSING
PROGRAMS, SO BRINGING THE
BRINGING THAT TOGETHER, BUT, UM
I THINK THAT THE OTHER POINT
HERE IS WE ARE LOOKING TO OUR
LOCAL AGENCIES, OUR COUNTIES TO
PASS BONDS. YOU SEE, COUNTIES
THAT DO PASS BONDS ARE MORE
COMPETITIVE AT GETTING THE STATE
MONEY. SO JUST LIKE, UH, WAS
MENTIONED EARLIER. IN ORDER TO
GET THE FEDERAL DOLLARS THE
STATE NEEDS TO PUT MONEY IN.
IT'S THE SAME WITH THE COUNTIES,
THE COUNTY STEPPING UP AND
PUTTING MONEY IN, WE'LL BE ABLE
TO BRING MORE DOLLARS TO THE
TABLE. I APPRECIATE YOUR
COMMENTS ON ALL ROADS LEAD BACK
TO HOUSING. UM, WE TALK ABOUT
THAT. AT JAMBOREE THAT, UH, YOU
KNOW, IF YOU CARE ABOUT
EDUCATION, THEN YOU GOTTA CARE
ABOUT HOUSING. IF YOU CARE ABOUT
HEALTH CARE, CARE ABOUT HOUSING,
THERE'S SOME REALLY GOOD DATA
OUT THERE. THAT IS, UH,
SUPPORTIVE OF THIS THAT YOU'RE
GONNA SEE INCREASE POLICE COSTS
INCREASE IN HEALTH CARE COSTS
INCREASE IN SCHOOL DELINQUENCY
AND TRUANCY. IF YOU DON'T HAVE
AFFORDABLE HOUSING, SO MAYBE
THERE IS A ROLE FOR CONTINUED
EDUCATION FROM THE STATE LEVEL
AS WELL AS THE HOUSING ELEMENT.
UM WORK THAT'S BEING DONE IS SO
MUCH BETTER THAN IT WAS IN THE
PAST, RIGHT, HOLDING OUR CITIES
ACTUALLY ACCOUNTABLE TO HAVE A
HOUSING ELEMENT THAT'S
IDENTIFIED SITES THAT ARE REAL
SITES THAT HOUSING COULD BE
BUILT. BUILT ON IS HUGE, AND I
WOULD JUST AND IN CLOSING
BECAUSE WE PROBABLY ARE WRAPPING
UP. IT'S JUST ON A PERSONAL
NOTE. SO I HAVE A YOUNG UH SON
WHO IS 20 THREE. WHO IS A BRAND
NEW, UH, POLICE OFFICER IN ONE
OF THE LARGEST CITIES IN ORANGE
COUNTY, AND IN TALKING TO HIM AS
HE'S GOING THROUGH HIS I MEAN,
AT 90% OF HIS TIME. IT'S PRETTY
MUCH SPENT ON, UM, CALLS FOR
TRESPASSING. UH RIGHT. UM
LOITERING. HE'S ENCOUNTERING
HOMELESS FOLKS, FOLKS WITH
MENTAL ILLNESS AND ADDICTION.
AND SO WE'VE GOT TO ADDRESS
THESE ISSUES BECAUSE THE COST
THINK ABOUT LAW ENFORCEMENT, THE
COST OF LAW, LAW ENFORCEMENT OR
HOUSING. THESE FOLKS IN JAIL OR
IN PRISONS IS JUST THAT HAS TO
BE MEASURED AND PUT OUT THERE
WHEN A HOUSING DEVELOPMENT COMES
FORWARD, SO YEAH, II. I
APPRECIATE THAT, AND I WOULD
JUST ADD. YOU KNOW, IF YOU CARE
ABOUT CLIMATE AND ENVIRONMENT,
THEN YOU SHOULD CARE ABOUT
HOUSING RIGHT THAT PEOPLE WHO
HAVE PEOPLE WHO HAVE SUPER
COMMUTES THAT ARE DRIVING 2.5
HOURS EACH WAY TO AND FROM WORK,
PUTTING CARBON INTO THE
ATMOSPHERE. I THINK AS AN
ENVIRONMENTALIST, HOUSING HAS TO
BE A TOP PRIORITY AS WELL.
ABSOLUTELY THANK YOU. THANK YOU.
CAN I JUST ADD ON LOCAL
GOVERNMENT? YOU KNOW, II. I
APPRECIATE ALL THE WORK THAT
EVERYBODY'S DONE ON STREAMLINING
. I CAN'T UNDERSTATE HOW
IMPORTANT THAT HAS BEEN. UM I
ALSO APPRECIATE THE SURPLUS LAND
ACT. AND THE ABILITY TO DO
PROJECTS, UH, IN PARTICULARLY
DIFFICULT TO DEVELOP
JURISDICTIONS. I UH, EDEN IN
CONCERT WITH THOMPSON DORFMAN
PARTNERS IS DOING THE SAN
QUENTIN SHOOTING RANGE SITE.
THAT'S A STATE SITE THAT WAS
DONE IN THE SURPLUS LAND AND THE
STATE ZONED THE SITE AT THE
STATE'S STATE LEVEL. SO UH,
PRESIDENT PROT MCGUIRE WAS
ACTUALLY AHEAD OF OUR ZONING
HEARINGS, WHICH WAS QUITE
HELPFUL TO US. AND SO I WOULD, I
WOULD ACTUALLY THINK ABOUT IS
THERE A WAY FOR US TO OPT INTO A
STATE ZONING ON A ON A SITE
THAT'S REALLY HARD. APPROVED IS
THERE SOMETHING WE COULD DO THAT
AND IT'S NOT BECAUSE COUNCILS
DON'T WANT TO APPROVE IT. IT'S
JUST THAT YEARS AND YEARS OF
GETTING THINGS DONE. JUST
DIFFICULT AND SO DIFFICULT TO
DEVELOP AREAS. I KNOW IT'S
PROBABLY CRAZY IDEA, BUT I HAD
TO PUT IT OUT THERE. UM, I, I
ALSO THINK LOCAL FEES. REMAIN A
BIT OF A HEAVY LIFT IN SOME
JURISDICTIONS AND ALSO SPECIAL
JURISDICTION FEES. SO YOU KNOW,
BUILDING A WHOLE NEW SEWER
SYSTEM IN THE CITY OF RICHMOND
IS REALLY A HEAVY LIFT FOR A 50
UNIT PROJECT IN THAT CITY. THAT
DOESN'T HAVE A LOT OF RESOURCES,
SO I WOULD JUST LOOK TO HOW MUCH
IS BEING EXACTED OUT OF ANY
SINGLE PROJECT AS A PLACE TO
CONTINUE TO LOOK AND THEN LAST,
UM BUT CERTAINLY NOT LEAST I
CANNOT UNDERSTATE HOW IMPORTANT
A èC ONE IS GOING TO BE FOR
LOCAL INITIATIVES. IF THE LOCALS
CAN'T RAISE THEIR OWN MONEY, AND
TWO THIRDS IS OUTSIDE THE
FRANCISCO ALMOST IMPOSSIBLE. UH,
SO REALLY BEING ABLE TO GET A
55% VOTE ON LOCAL INITIATIVES
FOR HOUSING FUNDING IS REALLY
IMPORTANT FOR US. THANK YOU. AND
I APPRECIATE AGAIN. ALL THE
EFFORTS THAT YOU HAVE DONE TO,
UH, I IMPROVE HOUSING SITUATION,
INCLUDING, UM, BEING ABLE TO
SPEED THINGS UP, BUT REDUCING
THE TIME FRAME. BUT LET'S JUST
TALK JUST BIG PICTURE ABOUT, YOU
KNOW, HOUSING ELEMENT PROCESS SO
HÌ DOT A èC Dð HAS DONE A GREAT
JOB JOB TO TRY TO IMPROVE THAT
PROCESS, BUT YOU GOT AN EIGHT
YEAR CYCLE. IF YOU'VE GOT A
WILLING PROPERTY OWNER WHO'S
WILLING TO SELL YOUR PROPERTY.
IT'S ABOUT TWO YEARS TO GET
THROUGH THE ENTITLEMENT PROCESS.
EVEN IF YOU'RE ZONED, IT'S ABOUT
TWO YEARS. THEN IT'S ABOUT
ANOTHER. TWO YEARS TILL YOU CAN
START CONSTRUCTION WITH PLAN
CHECK AND DESIGN AND BACK AND
FORTH IN DISTRICTS AND ALL THAT,
SO BY THE TIME YOU GET YOUR THIS
IS TO SAY, A MARKET RATE PROJECT
, BUT IT COULD HAVE BEEN FOR THE
HOUSING PROJECT. BY THE TIME
I'VE GOT MY SUBDIVISION BUILT MY
MODELS UNDER, YOU KNOW, OPEN AND
PEOPLE IT'S SIX YEARS. OUT OF AN
EIGHT YEAR CYCLE WHEN PEOPLE
SHOW UP TO BUY THE HOUSE. AND
THAT'S A WILLING SELLER. SO IT'S
REALLY IMPORTANT WHAT LAURA SAID
THAT WE HAVE A HOUSING A PROCESS
THAT IDENTIFIES SITES WHERE THE
PROPERTY OWNER IS WILLING TO
ENGAGE AND TRANSACT. THAT'S HUGE
BECAUSE YOU DON'T HAVE A LAND
SALE. YOU DON'T HAVE HOUSING.
THAT'S NUMBER ONE. THE DELAYS IN
THE PROCESS FEES ARE REALLY
IMPORTANT. THAT'S I MEAN, YOU'RE
TALKING BIG PICTURE. WHERE CAN I
BE EFFECTIVE? SO THE FEES THE
ABILITY TO GO TO A CERTIFICATE
OF OCCUPANCY IS HUGE FROM A CASH
FLOW STANDPOINT, AS YOU CAN
IMAGINE FOR PEOPLE AND THE FEES
KEEP GOING UP. KEEP GOING UP,
DESPITE THE FACT THAT OUR HOMES
ARE WAY MORE EFFICIENT, ENERGY
WISE, WATER WISE, EVERYTHING.
WE'RE WAY BUT WE'RE PAYING MORE
IN FEES AND I'M PAYING THE SAME
FEE FOR 4000 SQUARE FOOT $2
MILLION HOUSE. PAY THAT SAME FEE
FOR A 2000 SQUARE FOOT, YOU KNOW
, MILLION DOLLAR HOUSE OR A
MILLION TWO. IT'S THE SAME FEE
FOR WATER AND SEWER DESPITE THE
DIFFERENT USE, SO THERE'S NÓ.
THAT'S IMPORTANT FROM A COST
STANDPOINT, ESPECIALLY FOR
MULTIFAMILY PROJECTS. EVEN
THOUGH THERE'S DIFFERENT FEES,
YOU KNOW, THEY'RE STILL, UM, A
LITTLE BIT OUT OF BOUNDS. AND I
THINK, UM THE REGULATORY PROCESS
. I DON'T KNOW. I MEAN, WE MET
WITH GAVIN NEWSOM WHEN HE GOT
ELECTED AT èC B A'S OFFICE TALK
ABOUT HOUSING WHEN HE SAID HE
WAS GOING TO BUILD THREE AND A
HALF MILLION HOUSES. AND WE
STARTED KIND OF SAYING HEY,
THIS, THAT THE OTHER THING AND
HE WAS LIKE, WAIT, GUYS, REALLY?
I MEAN, NÓ. WE'RE JUST I MEAN,
BUT APPARENTLY, THE REGULATORY
AGENCIES NEVER GOT THE MESSAGE.
THAT THERE WAS A HOUSING CRISIS.
CAUSE THEY KEEP TURNING THE
SCREWS AND SQUEEZING US. I MEAN,
I'M I JUST SPENT. I DON'T KNOW
$2000, A UNIT. FOR A SMALL
PORTION OF A PROJECT THAT HAD TO
GO TO 2022 ENERGY CODE. $2000 A
UNIT JUST TO DESIGN GO THROUGH
THE PLAN, CHECK PROCESS AND
ANOTHER $5000, A UNIT TO SAVE
THE TINIEST MORE AMOUNT OF
ENERGY. IT'S INSANITY. AND THAT
GOES FOR EVERY HOUSING PROJECT
GETS BUILT IN THE STATE. AND
WE'RE YOU KNOW, MR GRAYSON HAS A
BILL UP THIS YEAR BECAUSE OF THE
WATER BOARD IN SAN FRANCISCO IS
MAKING IT IMPOSSIBLE TO BUILD
MULTIFAMILY HOUSING IN DENSE
LOCATIONS FOR A WATER QUALITY
SITUATION. SO ALL THESE THINGS.
IT'S THE BIG PICTURE. THERE'S
PLACES EVERYWHERE. WE CAN HELP.
REDUCE THE COST AND THE TIME
DELAYS AND DELIVER MORE
AFFORDABLE HOUSING. THANK YOU
VERY MUCH. AND JUST, UH, I
DIDN'T WANT TO LEAVE. UH, MR
OLMSTEAD OUT OF THE CONVERSATION
HERE. SO UM AND, UH, YOU KNOW IT
. FEEL FREE TO ANSWER NOW, I IF
NOT, UH, JUST SOMETHING THAT YOU
GUYS WANT TO THINK ABOUT IT AND
GET BACK TO US. SOMETHING FOR
YALL TO THINK ABOUT. UM I'M JUST
CURIOUS. WHAT ARE THE KEY SORT
OF DATA AND METRICS THAT HÌ èC
Dð USES TO EVALUATE THE
EFFECTIVENESS OF PROGRAMS YOU
KNOW, AGAIN? GETTING BACK TO
WHAT FOR ME IS SORT OF THIS
ESSENTIAL QUESTION IS, AS WE
HAVE TO MAKE MAY HAVE TO MAKE
TOUGH CHOICES. UM YOU KNOW WHAT
ARE WHAT? WHAT ARE THE AND YOU
TALKED ABOUT THE DASHBOARD AND
I'M GONNA GO UM, CHECK THAT OUT.
BUT WHAT ARE THE THINGS THAT YOU
WOULD POINT US TO, UM THAT ARE,
UM I GUESS SALIENT IN YOUR
DECISION MAKING AND THAT YOU
THINK WE OUGHT TO CONSIDER AS
WE'RE COMPARING DIFFERENT
PROGRAMS AND DIFFERENT BUDGET
INVESTMENTS AND TRYING TO FIGURE
OUT WHERE WE CAN DIVERT WHERE WE
CAN DIRECT SCARCE RESOURCES TO
HAVE THE BIGGEST OUTCOME. YEAH.
I MEAN, I THINK THANK YOU FOR
THE QUESTION. OBVIOUSLY THAT'S
WHEN YOU COULD HAVE A WHOLE
HEARING ON CERTAINLY, BUT I
THINK THE IMPACT IS QUITE
CRITICAL. RIGHT WE ARE WE SHARE
THE DESIRE FOR SPEED AND
PRODUCTION. RIGHT THEY DO THINK
AND YOU'VE HEARD ME SAY IT A
COUPLE TIMES A DAY. NOT EVERY
PROGRAM IS EQUAL IN TERMS OF
THAT PUBLIC BENEFIT. I
APPRECIATE IT A LOT OF WHAT YOU
SAID ABOUT HOUSING AS A CLIMATE
STRATEGY. WE BELIEVE THAT RIGHT
EVERY NEW HOME BUILT IS A
CLIMATE FRIENDLY HOME. WHICH IS
WITH WITH HOW WE HAVE TO USE A
MULTIFAMILY SINGLE FAMILY. WHAT
HAVE YOU RIGHT, SO THAT IS
ACTUALLY QUITE CRITICAL TO THE
STATE'S CLIMATE STRATEGY AS
WELL. SO OBVIOUSLY IF YOU LOOK
AT A PROGRAM LIKE THE AFFORDABLE
HOUSING SUSTAINABLE COMMUNITIES
PROGRAM, IT'S NOT JUST THE
PRODUCTION THERE. IT'S WHERE
WE'RE BUILDING THE HOUSING AND
WHAT BENEFITS ARE YOU GETTING AT
IT FOR THE PUBLIC BENEFIT
STANDPOINT, RIGHT IF YOU LOOK AT
A PROGRAM LIKE HOME KEY OR NÓ
PLACE, LIKE HOME, YOU KNOW WE'RE
IMPACTING HOMELESSNESS DIRECTLY
THERE, SO OBVIOUSLY THERE'S AN
OVERARCHING KIND OF NORTH STAR
AROUND THE PRODUCTION GENERALLY,
UM, BECAUSE ALL OF OUR PROGRAMS
ON THE PRODUCTION SIDE DO THAT.
WE WANNA GET OUR MONEY OUT.
QUICK AND EFFECTIVE. YOU'VE
HEARD THAT SOMETIMES CAN CREATE
SOME OTHER. SOME OTHER
CHALLENGES ON THE BACK ENDS. UM
BUT GENERALLY SPEAKING, YOU KNOW
TO TRY TO ANSWER YOUR QUESTION.
UM THAT'S THAT'S KIND OF THE
NORTH STAR IN TERMS OF ACTUALLY
GETTING OUR FUNDING. YOU KNOW,
WE'RE IMPLEMENTING THE PROGRA
MMES THAT A RE GIVEN TO U S¼ BY
THE LEGISLATURE, RIGHT. AND FOR
THE MOST PART, THE GOALS OF
THOSE PROGRAMS ARE THE
PRODUCTION OF THE UNITS, AND SO
IT IS QUITE IMPORTANT THAT WE
GET TO THAT EVENTUAL PRODUCTION.
THAT CONSTRUCTION PIECE, RIGHT?
YOU CAN SEE WE'RE ALL WE'RE ON
THE PRECIPICE OF A LOT OF
HOUSING COMING ONLINE, RIGHT? WE
HAVE A LOT IN CONSTRUCTION RIGHT
NOW, JUST FROM STATE'S
AFFORDABLE HOUSING BENEFITS THAT
ARE PARTNERING WITH THE TAX
CREDITS AND BONDS. SO WE'RE
ABOUT TO SEE SOME NICE INFUSION
THERE. BUT OUR NEED IS SO MUCH
GREATER, RIGHT. YOU KNOW, I'VE
HEARD A LOT ABOUT LAND
AVAILABILITY. WE'RE IN THE
PROCESS OF DOUBLING THE AMOUNT
OF LAND AVAILABLE VIS A VIS ALL
THE LOCAL GOVERNMENT HOUSING
ELEMENTS. 2.5 MILLION HAVE TO BE
ZONED FOR RIGHT. THAT'S MORE.
IT'S DOUBLE THE AMOUNT OF LAND
THAT IS AVAILABLE. BUT 1.1
MILLION OF THOSE HAVE TO BE FOR
AFFORDABLE HOUSING. RIGHT. SO
WE'RE YOU, YOU HAVE TO TACKLE IT
FROM A NUMBER THAT PRODUCTION
KIND OF NORTH STAR FROM
NUMERICALS. BUT IF WE'RE GIVEN A
PROGRAM WE WANNA GET FUNDING
OUT. GET THOSE HOUSING UNITS
BUILT. RIGHT THAT IS KIND OF
WHAT WE WANNA SEE. WE WANNA SEE
THOSE GO FROM THAT KIND OF FIRST
AWARD TO THE PRODUCTION. AND, OF
COURSE, WHEN THAT HAPPENS, THAT
IS ONE METRIC OF SUCCESS.
CERTAINLY. BUT YOU ALSO HEARD ME
TALK ABOUT THAT LONG TERM
IMPACT, RIGHT? WE WANNA MAKE
SURE EVERYONE UNDERSTANDS LIKE
YES, THIS CAN COST A LOT AT THE
FRONT END. BUT WE ARE GETTING
THAT BENEFIT FOR MANY, MANY
PEOPLE OVER TIME, RIGHT? AND
THAT IS AN IMPACTFUL AS WE BUILD
A PORTFOLIO WITHIN THE STATE. WE
NEED TO KEEP BUILDING THAT
PORTFOLIO AND WE NEED TO DO IT
FASTER, RIGHT? UM I KNOW AS A
MEMBER OF WICKS LEFT, BUT LIKE,
AND I THINK SOME OF THE
COLLEAGUES HAVE TALKED ABOUT
HERE WE'VE HAD DEATH BY 1000
CUTS FOR DECADES. RIGHT? A
PROJECT COMES IT. I MEAN, IT'S
100 UNITS. NOW IT'S 90 UNITS.
NOW IT'S 80 UNITS. IF IT GETS
APPROVED AT ALL, AND THEN IT
COSTS A LITTLE BIT MORE BECAUSE
YOU'RE GONNA LAYER THESE THINGS
ON AND SO LIKE WE NEED TO GET AT
THAT. AND SO WE ALSO TAKE AT IT.
THAT'S WHY I MENTIONED THE
ACCOUNTABILITY WORK. UM THAT IS
IMPORTANT SIGNALING WORK THAT WE
DO WE WANNA MAKE SURE IF THE
PROJECT SHOULD BE APPROVED. IT'S
APPROVED. YOU'VE ALREADY
UNLOCKED, YOU KNOW, AND THAT WE
CAN DO ON THE MARKET RATE.
AFFORDABLE SIDE AND WE'RE HOPING
LOCAL GOVERNMENTS AS YOU THESE
LAWS START TO SOME OF THEM GO
THROUGH THE COURTS, QUITE
FRANKLY, WHERE WE KEEP WINNING
ON THOSE SIDES, RIGHT? WE HOPE
THAT SIGNALING CONTINUES SO WE
DON'T HAVE THAT LOG JAM BACK TO
YOUR QUESTION AT THE LOCAL
GOVERNMENT, BECAUSE EVEN THOUGH
IF WE HAVE UNLIMITED FUNDING, WE
DO WE DO SEE SOME DELAYS THERE.
SO UM, THAT IS KIND OF NORTH
STAR. I'D LOVE WE'D LOVE TO TALK
MORE ABOUT IT. CERTAINLY I THINK
YOU SAW ONE TABLE PULLED OUT.
THAT'S THAT'S FROM A MUCH LONGER
DOCUMENT THAT GOES MORE IN DEPTH
TO ALL OTHER PROGRAMS. SO I
ENCOURAGE YOU IF YOU WANNA SHARE
IT WITH THEM TO AND THEN WE CAN.
WE CAN CERTAINLY ANSWER ANY
QUESTIONS YOU MAY HAVE FROM THAT
AND THEN CONTINUE THAT
CONVERSATION. YEAH. THANK YOU.
THANK YOU FOR THAT. I, I GUESS
JUST TO, UM YOU KNOW, FURTHER
SORT OF LAY OUT MY THING ON
THIS. I THINK YOU KNOW MY SENSE
IS THAT THE MOST SUCCESSFUL AND
SOPHISTICATED ENTERPRISES THESE
DAYS, WHETHER THEY'RE SPORTS
TEAMS OR BUSINESSES OR FOLKS
OPERATING IN A WHOLE BRAND OF
SECTORS AND INDUSTRIES ARE USING
DATA TO THEIR ADVANTAGE, RIGHT
AND THEIR UNDERSTANDING USING
THAT DATA, UNDERSTANDING EXACTLY
WHAT IS DRIVING SUCCESS. WHAT IS
DRIVING OUTCOMES? WHAT IS MOVING
THE NEEDLE AND I WOULD LOVE FOR
THE STATE TO BE IN A POSITION AS
WE'RE ALLOCATING THE PEOPLE'S
MONEY RIGHT? THE MONEY THAT THE
TAXPAYERS HAVE GIVEN US AND
ASKED US TO USE TO SOLVE THEIR
TO SOLVE THESE CHALLENGES TO
HAVE A REALLY GOOD SENSE OF
WHICH PROGRAMS ARE MOST
EFFECTIVE AND I THINK YOU RAISED
SOME REALLY IMPORTANT POINTS FOR
US TO CONSIDER ABOUT. HOW WE
THINK ABOUT THAT OVER TIME, WITH
UNITS ABOUT THE DIFFERENT POLICY
CHOICES THAT WE'RE MAKING AS
WE'RE LOOKING TO SERVE VARIOUS
SUBPOPULATIONS. THOSE ARE ALL
REALLY VALID POINTS, BUT I THINK
AT A HIGHER LEVEL, I WOULD LOVE
TO HAVE A MORE DATA DRIVEN
CONVERSATION ABOUT HOW WE MIGHT
TARGET THOSE INVESTMENTS. I
THINK THAT WOULD BENEFIT ALL OF
US. WELL I THINK THAT WOULD HELP
US TO GET THE RESULTS. WE ALL
WANT. I SEE THIS AS A THIS IS A
TEAM SPORT, RIGHT? WE'RE ALL
WE'RE ALL WE'RE WE'RE
FUNDAMENTALLY ALL ON THE SAME
TEAM HERE. AND THE QUESTION IS,
YOU KNOW HOW DO WE? HOW DO WE
CHANGE WHAT WE'RE DOING? HOW DO
WE ADAPT TO WHAT WE'RE DOING?
UH, TO MEET THIS MOMENT, UM, AND
TO ARE VERY PROFOUND CHALLENGES
WE HAVE, AND I JUST WANT TO
THANK THE PANELISTS FOR SHARING
SOME OF YOUR EXPERTISE WITH US.
UM I THINK THE DOOR TO THE
LEGISLATURE IS ALWAYS OPEN. WE
WANT TO UNDERSTAND FROM YOU. I
DON'T SIT AROUND AND LOOK AT
PROFORMA ALL DAY. UH I DON'T
LITIGATE S¼ CASES. I DON'T GO
OUT AND SEEK PRIVATE INVESTMENT.
I DON'T HAVE TO DEAL WITH LOCAL
GOVERNMENTS AND DEAL. SO YOU
GUYS UNDERSTAND THE NITTY GRITTY
OF THIS IN A VERY DIFFERENT WAY
THAN WE DO AND WHAT WE'RE
LOOKING FOR ARE WHAT ARE THE
MOST IMPACTFUL POLICY CHANGES
AND INVESTMENTS WE CAN MAKE TO
HELP YOU, UM TO HELP ALL OF YOU
DO YOUR JOBS. GOES FOR YOU KNOW
WHETHER YOU'RE ON THE ON THE
PUBLIC SIDE OR THE PRIVATE SIDE
HERE, UH, AFFORDABLE OR MARKET
RATE. YOU KNOW, WE'RE WE'RE ALL
ON THE SAME TEAM HERE. AND SO,
UM, YOU KNOW, AGAIN, KEEPING IN
MIND THIS THIS THIS CHALLENGING
ENVIRONMENT THAT WE'RE WE'RE
ABOUT TO ENTER. WHAT ARE THE LOW
HANGING FRUIT? YOU KNOW WHAT?
WHAT IS THE LOW HANGING FRUIT?
WHAT ARE THE POLICY
INTERVENTIONS? WHAT ARE THE
INVESTMENTS WE CAN MAKE? YOU
KNOW, THAT'S WHAT THAT'S WHAT?
I'M GRATEFUL THAT WE HAD THE
CHANCE TO BEGIN THAT
CONVERSATION TODAY. BUT I JUST
WANT TO INVITE YOU ALL TO
CONTINUE THAT CONVERSATION
BECAUSE WE ARE EAGER TO WORK
WITH YOU ON THAT. UH, THANK YOU,
CHAIR GABRIEL. AND I CAN RELATE
AND ATTEST TO THE IMPORTANCE OF
TEAMWORK AND COLLABORATION. UH,
WE'RE IN THE MIDDLE OF THIS
GAME, RIGHT? AND SOMETIMES THE
PLAYS THAT WE HAD PLANNED AREN'T
WORKING OUT. SO NOW WE HAVE TO
CALL AN AUDIBLE. UH AND WE'RE
GONNA GO WITH THE PLAY THAT HAS
YIELDED US THE BEST RESULTS, SO
I THINK THAT'S THE CONCEPT OF
TODAY'S HEARING AS WELL. SO
THANK YOU FOR THAT, UH, A COUPLE
OF CLOSING QUESTIONS. UH, FOR ME
, UM, BEFORE WE MOVE ON, UH, A
MAJORITY OF CALIFORNIA'S TRIBES
HAVE HAD SOME CHALLENGES
ACCESSING SOME OF HÌ D'S
PROGRAMS. UM CAN YOU PLEASE
ELABORATE ON HOW HÌ Dð IS
ENSURING THAT TRIBAL COMMUNITIES
, UH, ARE MAXIMIZING THE
BENEFITS OF THESE PROGRAMS
AVAILABLE? SURE. I MEAN, WE'VE
BEEN REALLY PROUD OF THE ABILITY
TO HELP A NUMBER OF TRIBES.
WE'VE UM WE'VE PUT OUT SPECIFIC
NOTICE OF FUNDING AVAILABILITY
FOR TRIBES AND WHO HAVE LEFT
THOSE OPEN, RIGHT? THEY'RE NOT
LIKE TIME LIMITED. WE'VE FUNDED
A NUMBER OF HOME KEY AND EVEN
OUR SUPER NOVA NOW, UM AND WE'VE
LUCKILY THANKS TO THE
LEGISLATURE WERE GIVEN SOME
FLEXIBILITY WITHIN OUR ABILITY
TO WAIVE CERTAIN RULES THAT CAN
SOMETIMES BE PROBLEMATIC. SO
WE'RE WORKING THROUGH UM AND WE
TRY TO WORK THROUGH THOSE WITH
Tð A LOT OF TECHNICAL ASSISTANCE
. WE HAVE DIFFERENT UNITS WITHIN
OUR DEPARTMENT THAT ACTUALLY ARE
SPECIFICALLY TARGETED TOWARDS
HELPING TRIBES GET THROUGH THOSE
COMPLEX. UM THOSE COMPLEX, UH,
PROGRAMS SO WE HOW WE TACKLE IT
IS ESSENTIALLY SETTING ASIDE
SOME OF THOSE DOLLARS JUST FOR
THE TRIBES AND THEN PUTTING AS
WE HAVE THE NUMBER OF WORKSHOPS
THAT ARE TARGETED OR TRIBES THAT
YOU'VE DONE A LOT OF WORK
DIRECTLY WITH THEM. WE HAVE BEEN
ABLE TO MAKE A NUMBER OF AWARDS
ACROSS SOME OF OUR PROGRAMS SO
HAPPY TO GIVE YOU MORE OF THAT
INFORMATION AND DATA, AND
OBVIOUSLY THERE'S MORE TO DO
THERE, BUT THAT'S HOW WE'VE KIND
OF TACKLED IT. AND THEN WE CAN
WE HAVE THE ABILITY NOT TO WAIVE
A NUMBER OF RULES. UH, GIVEN
SOME LEGISLATION THAT PASSED A
COUPLE OF YEARS AGO IN THE
LEGISLATURE. THANK YOU AND I
WOULD ENCOURAGE THAT
PROACTIVENESS TO CONTINUE. AND
MY LAST QUESTION, UH, TO TOUCH
ON THE SUPERNOVA. UH, TOPIC. I
WOULD APPRECIATE MAYBE SOME
GENERAL THOUGHTS OR DIRECTION IN
TERMS OF IMPROVING THE PROCESS.
OKAY UH, I MEAN, WE'VE HAD TWO
ROUNDS. UH, WE'VE CHANGED. WE'VE
OVER THE FROM THE FIRST ROUND
THE SECOND ROUND. WE WERE ABLE
TO MAKE A NUMBER OF CHANGES AND
IMPROVEMENTS. UH, IT'S VERY
OVERSUBSCRIBED. UH, AS YOU CAN
UNDERSTAND, UM SO WE HAVE, I
THINK ALREADY THE ABILITY TO
KIND OF ITERATE ACROSS ROUNDS
AND MAKE IMPROVEMENTS. UH I
DON'T KNOW IF I COULD BE OPENING
UP FOR THE WRONG THING, BUT I
DON'T KNOW IF THE DEVELOPERS A
Tð THIS TABLE WILL THINK IT'S
GOTTEN ANY EASIER FROM ROUND ONE
TO ROUND TWO. WE HOPE IT HAS
BEEN, AND CERTAINLY THERE'S SOME
TWEAKS WE WOULD MAKE TOO.
THERE'S A NUMBER OF TECHNICAL
THINGS THAT MAKE IT QUITE
CHALLENGING AND BREEDING ALL
THOSE FUNDS BECAUSE IT SEEMS IT
MAY SEEM LIKE A LITTLE
STREAMLINED AND SIMPLE, BUT WE
ARE STILL SUBJECT TO SOME OF THE
RULES LIKE THE VETERANS PROGRAM
IS IN THAT SUPERNOVA, RIGHT? SO
IF YOU'RE ACCESSING THAT, YOU
KNOW, OBVIOUSLY YOU GOT TO SERVE
VETERANS AND SO THERE THERE ARE
SOME ADDITIONAL THINGS THAT, UH,
WE HOPE HèA HAVE MADE IT A
LITTLE BIT EASIER, BUT WE THINK
THERE'S STILL SOME SOME WAYS TO
GO. I MEAN, CONSOLIDATION. SEEMS
GREAT, AND IT IS GREAT. WE WANNA
DO MORE OF THAT. BUT IT'S WE
DON'T UNDO KIND OF ALL THE RULES
OF THOSE UNDERLYING PROGRAMS.
STILL WHEN WE WHEN WE DO IT, SO
IT IT STILL IS COMPLEX. I THINK,
UM, BUT I DON'T KNOW IF WE CAN
REDUCE ALL THAT COMPLEXITY, BUT
WE'RE CERTAINLY ALWAYS OPEN TO
IDEAS THERE AND WE HAVE FROM
ROUND ONE TO ROUND TWO MADE OF A
NUMBER OF CHANGES. THANK YOU AND
DEVELOPERS. IF YOU CAN ALL CHIME
IN, I'D APPRECIATE THAT SOME
CANDID RESPONSES. YOU KNOW,
WE'RE ONLY ON THE SECOND ONE. WE
WENT ONE FOR SIX IN THE FIRST
ONE, AND WE STILL WE STILL DON'T
ACTUALLY KNOW HOW WE'RE DOING
BECAUSE THE SECOND ONE HASN'T
BEEN ANNOUNCED YET. SO WE HAVE,
UM THINK 11 PROJECTS. I N THIS
ROUND. I'M SURE WE'RE NOT GONNA
GET ALL OF THEM. SO I SO I THINK
THIS QUESTION IS, YOU KNOW THE
DEMAND IS FAR OUTSTRIPPING THE
SUPPLY OF SUBSIDY DOLLARS IS THE
FIRST CHALLENGE. WHICH IS WHY I
WOULD ENCOURAGE YOU TO THINK
ABOUT AT LEAST FUNDING M HÌ P.
BUT GOING BACK TO THE EARLIER
COMMENT M HÌ, P AND IIG DON'T
PROHIBIT YOU FROM FUNDING THESE
OTHER SEPARATE THINGS, AND I
THINK THAT'S BEEN PART OF THE
CHALLENGE WITH THE SUPERNOVA. SO
IF YOU DON'T HAVE A TRANCHE OF
UNITS FOR VETS, THEN THEN IN THE
FIRST ROUND YOU DIDN'T GET B
BECAUSE THEY RAN THE WHOLE
PROGRAM. SO I THINK WE'VE BEEN
LEARNING AS WE GO. AND SO I
THINK THE MORE YOU CAN MAKE THE
SUPERNOVA ABOUT A GENERAL
PROGRAM THAT MIGHT HAVE SOME
PERCENTAGE TARGETS IN IT. IT
MIGHT GET A LOT EASIER TO
ACTUALLY BE SUCCESSFUL OR OR OR
STREAMLINE THE WAY THE PROCESS
WORKS. AND I WOULD GUESS MAKE IT
EASIER FOR HÌ èC Dð TO SCORE
THE PROGRAMS BECAUSE YOU GOT SO
MANY SLICES THAT YOU'RE TRYING
TO SCORE FOR THAT. IT'S REALLY
HARD TO EXPEDITE THAT KIND OF A
SCORING PROCESS. IT TAKES A LONG
TIME. SO M HÌ P, YOU KNOW,
PUTTING MORE AN I HÌ P BUCKET
PROBABLY MAKES LIFE A LOT
EASIER, UH, ON BOTH SIDES OF THE
TABLE UNDERLYING IT. WE'VE WE'VE
MOVED THE LANGUAGE AND I THINK
THIS IS QUITE IMPORTANT. IT
SEEMS LIKE A SMALL TWEAK BECAUSE
WE USE THEM INTERCHANGEABLY. BUT
A SET ASIDE IS JUST LIKE ANOTHER
NEW PROGRAM. REALLY SO WE'VE
TRIED TO. WE MOVED IT TO LIKE
TARGETS, RIGHT? WE'RE TRYING TO
FUND COMMUNITY BASED DEVELOPERS
AND EMERGING DEVELOPERS RIGHT,
BUT IT'S MORE OF A TARGET. SO TO
THE DEGREE WE HAVE APPLICATIONS
GREAT. WE'LL HIT THAT TARGET.
SAME WITH LIKE THE GEOGRAPHIC
TARGETS, RIGHT. WE HIT THOSE
THAT'S USUALLY NOT A PROBLEM,
BUT ALL THE WITHIN ALL THE
STUFF. LINDA WAS MENTIONING. THE
FIRST ROUND HAD A LOT OF LIKE
RIGIDITY. AND SO IF A PROJECT
DIDN'T KIND OF FIT THOSE
BUCKETS, UM WE'VE TRIED TO
SOFTEN THAT A LITTLE BIT BY
SEEKING OUT TARGETS, AS OPPOSED
TO LIKE A SET ASIDE, WHICH IS
ESSENTIALLY JUST A SUBPROGRAM
THAT MAKES IT EVEN HARDER ALMOST
TO MANIPULATE THEM. YEAH I THINK
THOSE A REARE GREAT POINTS. I
WOULD JUST, UM, CAUTION THE
MEASUREMENT TO BE, UH OVER
SUBSCRIPTION BECAUSE WE'RE ALL
YOU KNOW, VERY OPTIMISTIC
DEVELOPERS AND WE'RE GOING TO
THROW IN TO EVERYTHING AND SEE
WHAT WE GET I. I WOULD
DEFINITELY MEASURE IT ON, UH,
ALLOCATION AND PROJECTS MOVING
FORWARD QUICKLY. UM BECAUSE
EARLY ON, THERE WERE SOME
PROJECTS THAT JUST WERE
PARTIALLY FUNDED, AND THEN THEY
HAD TO WAIT A YEAR. AND THEN YOU
HAD TO WAIT THAT NEXT YEAR, AS
DESCRIBED EARLIER, AND IT'S TIME
IS MONEY AND THEN YOU CAN'T KEEP
YOUR SIGHT AND WE KNOW SITES ARE
CHALLENGING. SO UH, I DEFINITELY
SOME MORE WORK TO BE DONE. I
LIKE TO MAKE A RELATED COMMENT,
SO I LIKE I SAID, I WORK FOR A
SMALL, PRIVATELY HELD
HOMEBUILDER USED TO BE A LOT
LARGER, YOU KNOW, AT THE PEAK OF
DURING BEFORE THE RECESSION,
WE'RE PROBABLY DOING 100 AND 50
TO 202 150 UNITS A YEAR. THE
RECESSION CHANGED A LOT OF THAT,
AS DID THE BANKING REGULATIONS,
SO WE'RE SHRINKING RIGHT NOW.
WE'RE GONNA GO AWAY. AND SO FOR
US IT TYPICALLY TAKES IF YOU
LOOK AT THE BAY AREA PROJECT
MIGHT BE $100 MILLION TO BUY THE
LAND. GET IT ENTITLED DEVELOP IT
BUILD, UH, YOUR FIRST PHASE AND
YOUR MODELS. NOT UNUSUAL. WE'D
HAVE TO FIND ABOUT 30 TO $40
MILLION THAT IN CASH. THAT'S A
LOT OF MONEY TO THROW INTO ONE
BUCKET FOR A SMALL BUILDER, SO
THERE ARE FEWER AND FEWER. IT'S
ALMOST AMY, THERE'S HARDLY ANY
PRIVATELY HELD HOME BUILDERS IN
THE NORTHERN CALIFORNIA BAY AREA
USED TO BE A LOT OF US. THERE'S
HARDLY ANY OF US LEFT RIGHT NOW.
MOSTLY PUBLIC BUILDERS ARE
TAKING OVER THE MARKET. THEY'RE
GOOD BUILDERS, BUT I'M JUST
SAYING THERE'S A SEGMENT OF THE
MARKET THAT'S BEEN KILLED BY THE
FINANCIAL REGULATIONS THAT YOU
CAN'T DO IT WITH YOUR OWN MONEY
ANYMORE. YOU HAVE TO GO TO
INSTITUTIONAL MONEY AND TO GET
GO TO INSTITUTIONAL MONEY. YOU
HAVE TO GET REALLY BIG. AND
CHANGE THE WAY YOU DO BUSINESS,
SO JUST THAT'S SOMETHING TO KEEP
IN MIND BECAUSE IT'S PART OF THE
HOUSING EQUATION IN CALIFORNIA.
THANK YOU, UH, 01 LAST COMMENT.
YEAH. JUST ONE LAST COMMENT. YOU
KNOW A LOT OF THIS, AND I
APPRECIATE THE DISCUSSION TODAY,
AND A LOT OF THE CONVERSATION
HAS BEEN LIKE NUMBER OF UNITS
PRODUCED. HOW MUCH DOES IT COST?
AND I JUST WANNA, UM, TAKE A
MOMENT. ALSO TO THINK ABOUT THE
FAMILIES THAT WE'VE BEEN HELPING
OVER THE LAST FOUR, YOU KNOW, IN
FOR THE HISTORY OF THE PROGRAM,
BUT ALSO IN PARTICULAR LOOKING
AT THE NUMBERS I HAVE IN FRONT
OF ME FOR THE LAST FOUR YEARS,
LIKE MORE THAN 25% OF THOSE
UNITS THAT WE'VE PRODUCED HAVE
BEEN FOR EXTREMELY LOW INCOME
HOUSEHOLDS. AND LIKE WHAT THAT
MEANS IS LIKE I'M LOOKING AT THE
ORANGE COUNTY NUMBERS, YOU KNOW,
UM, THAT ENDS UP BEING A RENT
SAVINGS BENEFIT FOR THAT FAMILY
OF 18. I'M LOOKING AT TWO
BEDROOM APARTMENTS. $1800 A
MONTH OF RENT SAVINGS IF YOU
BEING IN ONE OF A TAX CREDIT
UNIT COMPARED TO RUNNING IN THE
MARKET, SO THAT REALLY SUCH A
MULTIPLYING EFFECT, UM, FOR THAT
HOUSEHOLD IN SO MANY DIFFERENT
PLACES, AND SO WHEN WE'RE
LOOKING AT SORT OF IS THE
PROGRAM EFFECTIVE OR WHAT IS THE
COST, BENEFIT AND RETURN ON
INVESTMENT, LIKE THE IMPACT TO
THOSE 20,000 PLUS HOUSEHOLDS IS
HUGE, UM AND JUST WANTED TO
BRING THAT ONE PERSPECTIVE
BEFORE WE CLOSE TODAY. THANK YOU
AND THAT PERSPECTIVE IS AS WELL.
RECEIVED AND HEARD AND I HAVE NÓ
DOUBT THAT THE INVESTMENTS THAT
THE STATE HAS MADE ARE HELPING
CALIFORNIANS. UH BUT CONSIDERING
THE BUDGET DYNAMIC THAT WE'RE IN
NOW, UH, IT'S INCUMBENT UPON US
TO REALLY STEP OUR GAME UP TO
ENSURE THAT WE'RE MAXIMIZING
THOSE DOLLARS. THAT DOLLAR THAT
YIELDED. NÓ 30 CENTS WORTH OF
RESULTS, AND I'M JUST USING
GENERAL NUMBERS NEEDS TO NOW. BE
AS CLOSE TO THAT DOLLAR AS
POSSIBLE. UH, SO I WANT TO THANK
ALL THE WITNESSES AND MEMBERS
FOR THEIR PARTICIPATION TODAY.
WE'VE DEFINITELY LEARNED A LOT.
ASKED A LOT OF QUESTIONS, UH,
WHEN IT COMES TO THE DEVELOPMENT
OF AFFORDABLE HOUSING, UH, A LOT
OF PROS, A LOT OF CONS SOME
THINGS THAT ARE WORKING SOME
THINGS THAT AREN'T WORKING AS
WELL AS AS WE WOULD LIKE, UM, I
AM CONFIDENT THAT THIS
CONVERSATION WILL CONTINUE, UH,
AMONGST COLLEAGUES AND THEN IN
ADDITION IN OUR SUBCOMITTEE
HEARINGS, UH, TO EXAMINE THE
PROPOSED CUTS BY THE
ADMINISTRATION. UH I'D LIKE TO
CLOSE WITH THIS. UM WE DISCUSSED
THE TARGET OF 2.5 MILLION HOMES
IN THE STATE OF CALIFORNIA WITH
1 MILLION OF THOSE BEING, UH,
DIRECTED TOWARDS AFFORDABLE
HOUSING. UH AND THEN WE ALSO
HEARD A NUMBER A RELATIVELY
SMALL NUMBER COMPARED TO THAT 1
MILLION, UH, NUMBER 57,000 HAVE,
UH, 57,000 YOUTHS HAVE BEEN MADE
, UH, BEEN DEVELOPED THUS FAR.
SO II. I REALLY WANNA CHALLENGE
US TODAY TO ENSURE THAT THE
POLICIES, THE PROGRAMS THAT
WE'RE GOING TO ALL BE ADVOCATING
FOR ARE YIELDING THE BEST
RESULTS INTENDED, UH, TO CLOSE
AGAIN. THIS COMMITTEE IS
INTENDED TO ENSURE THAT DOLLARS
ARE MAXIMIZED THROUGH OVERSIGHT
AND ACCOUNTABILITY. UH AND IT'S
PERTINENT NOW, MORE THAN EVER
THAT THAT WE ENSURE THAT SO WITH
THAT, THANK YOU. EVERYONE HAVE A
BLESSED WEEK AND, UH, HEARING
ADJOURNED.