California redevelopment funding ends today: So what happens to affordable housing?

Sacramento Bee ^ | 2/1/12 | Loretta Kalb

[SmithL]

California's redevelopment agencies officially are out of business, effective today. But that doesn't mean that the future of affordable housing is wiped out in the state.

The loss of new tax funds will make the process of providing future low- and moderate-income housing for the state's residents much more difficult – but not impossible, experts say.

The end of redevelopment money for housing "has everybody in the affordable housing community working to figure out how we continue to do the projects that we've been doing," said Steve Gall, senior vice president in Roseville for USA Properties Fund, "especially since economic reports suggest that poverty in America is at an all-time high."

USA Properties Fund last fall received $5.6 million in gap funding from the city of Elk Grove for the company's senior affordable housing project, the 69-unit Vintage at Laguna Phase II, now under construction.

The money, loaned at 4 percent interest, was generated from city fees on market-rate construction. Those funds are now fully committed.

Meanwhile, other prime sources of affordable housing money are being squeezed, leaving the affordable housing industry scrambling.

[drypowder]

Thus, they’ll have to find another way to bilk the tax payers in order to pad the pockets of their big campaign donors via the kickbacks. Not to worry though, these Kalifornia legislatures and their bureaucratic ilk are pros at doing just that. I’d bet they already have something in the works.

[MasterGunner01]

There is affordable housing in California? Who knew? Pot, meet kettle.

[johnny reb]

Section 8 housing is coming to the repo house in your neighborhood mark my words!

[dalereed]

“Affordable housing” should be eliminated!!!

Eiher pay the going price or go live under a bush!!

I don’t owe anyone a place to live, food to eat, or medical care!!