SACRAMENTO – To continue expanding the state’s affordable housing stock and increase capacity for additional climate-smart infill housing, Governor Gavin Newsom today announced the first funding awards under a new streamlined application process aimed at accelerating the development of new projects while saving time and money at the local level.
What you need to know: Approximately 58 communities across California were awarded more than $825.5 million to build 9,550 homes as part of a new funding approval process that eliminates the need for a developer to submit multiple applications. This includes roughly $700 million in funds for multifamily development and $125 million for infill development. Today’s funding announcement will ultimately benefit an estimated 187,500 people over the total lifetime of all projects combined.
Why it’s important: The application process to receive state housing funding in California was needlessly complex, and time consuming, resulting in delayed projects and extra cost. Under Governor Newsom, this process has been overhauled. Now, what previously required four separate applications has been narrowed down to just one submission.
What Governor Newsom said: “As we demand more housing to be built at the local level, it is incumbent upon the state to reimagine and modernize our own approval process,” said Governor Newsom. “State applications that were once redundant, and overly bureaucratic, are now streamlined to ensure projects are not stalled in an endless bureaucracy that favored process over production.”
This new process was made possible when Governor Newsom signed into law Assembly Bill 434 by former Assemblymember Tom Daly (D – Anaheim), which allowed for multiple housing applications to be narrowed down into a single award process. Under this new approach, requests for housing development funds have soared. The first round of new Multifamily Finance Super Notice of Funding Availability (Super NOFA) received more than $3.5 billion in developer requests – a sharp contrast to years of undersubscription.
