SAN DIEGO (KGTV) — California has some of the highest housing costs in the country and for years developers say building affordable housing has been slowed by a complicated funding process.
Under Governor Gavin Newsom's new housing affordability reforms, several state housing financing programs will now be brought together under one roof, making it easier for developers to apply for the money they need to get projects off the ground.
"Imagine you're trying to build a home, and someone tells you you have to go to four or five different banks to get the funding to build that home," Matt Schawrtz with the California Housing Partnership said.
He estimates the change could save more than $40,000 per home mostly by cutting the time it takes to piece together financing.
And while that may not immediately lower rent, supporters say it could help get more affordable homes built sooner. Schawrtz says more than 40,000 affordable homes are already waiting for state funding to move forward.
"Many of them from San Diego, many of them have received local support already," Schawrtz said. "But they haven't been able to assemble all of the pieces of the state support that they need."
Another challenge remains. His organization's research shows California spends less than 1% of its state budget on affordable housing. That's far less than what the state spends annually on schools, roads and health care.
He says making the system more efficient is important but that without more funding, it won't be enough to keep up with the state's housing crisis.
"Right now the funding level is just too low," Schawrtz said. "We're not taking the housing crisis seriously enough in terms of the way we fund housing."
State officials say the new system is expected to have a noticeable impact next year. But whether it can deliver on its promise will depend on voters approving an $11 billion housing bond this November.
