Blog note: this opinion piece references a recent grand jury report on the housing issue.
There are many societal challenges – income inequality comes to mind – for which the solution is complex and difficult to envision.
But for one of California’s most severe challenges today, a lack of affordable housing, the core solution is straightforward: Build more of it.
Driven largely by the forces of supply and demand, housing costs are soaring for hardworking families, seniors, people with disabilities and many others on limited budgets.
In San Jose, a typical two-bedroom apartment now rents for $2,834 a month, up more than 20 percent from just five years ago. Statewide, one in three Californians are paying more than they can afford for housing – as much as a third, half or even more of their monthly incomes.
The universal prescription to address this problem is to build more below-market housing. In June, the Santa Clara County Grand Jury issued a stark report on the housing issue and its effect on working families. It recommended a laundry list of steps to be taken by local cities and housing authorities to build more affordable housing.
Right now, however, there is something all of us can do to provide some relief. We can vote yes on Proposition 1 on Nov. 6.
Proposition 1 is the only state proposal before us that will build affordable housing. It is a smart, targeted measure that will make more affordable housing available to veterans, working families, people with disabilities, Californians experiencing homelessness and others in need.
Proposition 1 would authorize a $4 billion bond to be spent on the state’s most critical housing needs. It includes $1.8 billion for construction or renovation of affordable housing for low-income, working families. The money would be put into action through loans to local governments and both non-profit and for-profit developers.
In addition, Proposition 1 includes financial incentives to cities to implement some of the smart-growth policies recommended by the grand jury, such as transit-oriented development and building infrastructure to support higher-density housing in urban infill areas.
There is also financial assistance for affordable home ownership for veterans.
Proposition 1 extends and builds upon what has historically been one of California’s most successful housing programs – the CalVet Loan Program that pays for itself. Since its inception, the CalVet program has issued low-cost loans to more than 430,000 veterans, many of whom would not have otherwise qualified to obtain a mortgage.
The $1 billion that will be borrowed will be paid back through mortgage payments from the veterans who benefit, and the program will be extended without costing taxpayers a dime.
Many of the benefits of Proposition 1 are plainly evident, as it is hard to imagine a family that has not felt this housing crisis in a personal way. Employers in Santa Clara County wrestle with it constantly as they seek to attract and retain workers.
But there are other benefits as well. Experts estimate the state investment will be leveraged by a factor of more than three to one with federal tax credits and bonds. The combined effect will generate more than $23 billion in economic activity and create 137,000 jobs – all while creating new affordable housing for more than 50,000 families across California.
In its report issued in June, the Grand Jury put into words what all of us in Santa Clara County see every day on the faces of co-workers, fellow shoppers in grocery stores, perhaps even of our children’s teachers.
“An increasing number of people,” it wrote, “are one missed paycheck away from relocation or homelessness.”
That is call to action for all of us. Together, we can start by voting yes on Proposition 1.
September 18, 2018
The Mercury News
By Jim Beall, State Senator
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