California’s housing crisis remains critical, and there continues to be a significant shortage of affordable housing in the state. Affordable housing is typically funded by tax-exempt private activity bonds and low-income housing tax credits, but these subsidies are limited to projects that limit housing to residents earning less than 60% of area median income (AMI) (in some cases higher). to 80% of AMI). Since its inception, the CSCDA has funded the construction or preservation of nearly 100,000 affordable apartments throughout California.
State and individual city and county leaders have also recognized the serious shortage of workforce housing for those called the “missing middle,” individuals and families who earn too much to qualify for traditional affordable housing but not enough to afford it. market rate rents in the communities where they work. Workforce housing (sometimes called middle- or moderate-income housing) is housing for individuals and families who typically earn between 60% and 120% AMI. Unfortunately, workforce housing for the “missing middle” is not eligible for tax credits, private activity bonds or most other federal, state or local government subsidies.
The CSCDA Community Improvement Authority (CSCDA CIA), an affiliated joint powers authority, acquires capital projects focused on the public good through the issuance of tax-exempt public purpose bonds. Under the CSCDA CIA housing program, state bonds are issued to purchase market-rate multifamily properties. These properties are then converted into income and rent restricted units for moderate/moderate income households, which are typically households earning between 80% and 120% AMI. Annual rent increases are limited to no more than 4%, well below the rent limits under AB1482, the state’s recently enacted tenant protection law. In addition, no existing tenants will be displaced under the program.
CSCDA CIA operates the largest workforce housing program in California and has purchased and retrofitted more than 7,700 apartments for low- and moderate-income tenants.