California YIMBY Statement on Governor’s Proposed Budget

January 10, 2023

Budget Strengthens Commitment to State Housing Law, Funding Homeless Services

“The Governor’s priorities align with ending the housing shortage – but there’s work to do”

SACRAMENTO – Today, California YIMBY released the following statement in response to Governor Gavin Newsom’s proposed budget for the 2023 -2024 fiscal year:

“We commend the Governor for upholding the state’s resolve to ensure that cities comply with state housing law, and that we prioritize our most vulnerable residents for limited state funds,” said Brian Hanlon, CEO of California YIMBY. “The reality is we’re facing reduced revenues, and while some of the proposed cuts are painful, we believe this budget focuses appropriately on holding jurisdictions accountable to state law – while also boosting the sustainability of critical programs for Californians experiencing homelessness.”

Hanlon noted that the Governor’s push to tie state homelessness funding to compliance with state housing law is an important mechanism for ensuring that cities and counties meet state legally-mandated targets for housing production for Californians at all income levels – a needed component to end homelessness.

“The Governor’s priorities align with ending our state’s housing shortage, but there’s still work to do,” Hanlon said. “We’re concerned about the reduction in funds for expanding access to homeownership, and hope to work with the legislature and Governor’s office to preserve those programs as much as possible.”

Hanlon noted that reduced funds for home ownership programs make sense in an environment with high interest rates and low housing inventory, but those funds will still be needed when market and financial conditions improve.

In December, California YIMBY released a report on homelessness that called for sustainable, long-term funding for both permanent supportive housing, and low-income housing for Californians experiencing homelessness. While the constrained budget environment leaves these programs less than fully funded, Hanlon said the budget acknowledges the importance of protecting critical programs like project HomeKey, which have effectively moved thousands of unsheltered Californians into both temporary and permanent housing.