Wednesday, July 16, 2025

CA bill to let LA buy fire-destroyed lots for low-income housing

 California Senate Bill 549

- Passed a bill to create a "Resilient Rebuilding Authority" (RRA) in Los Angeles County.

- RRA can use public funds for:

- Purchasing lots for land banking at fair prices.

- Creating open spaces.

- Municipal bodies can use property tax funds for low-income housing and public transit.

- Hearing in the state Assembly scheduled for Wednesday.

Funding Mechanism

- RRA can:

- Issue and manage funds from various sources, including tax-increment financing and grants.

- Oversee construction processes using taxpayer funds.

- Purchase construction materials in bulk and manage logistics.

- Partner with trades to support the workforce through training and housing.

Reconstruction Initiatives

- RRA will facilitate rebuilding lost rental housing, including:

- Accessory dwelling units.

- Senior housing.

- Replacement of affordable housing lost in fires.

NIFTI-2 Funding

- New funding mechanism allowing incremental property tax revenue for transit and low-income housing.

- 40% of funding must go for housing for households earning less than 60% of the area median income.

- 10% set aside for beautification and active transportation projects.

- Remaining 50% can fund multifamily affordable housing, transit capital, and transit-oriented developments.

Recent Funding Announcement

- Governor Newsom announced $101 million for multifamily low-income housing in fire-affected Los Angeles communities.

- Per-unit funding includes:

- Up to $450,000 in loans.

- Up to $90,000 in grants.

- Recent data shows 73% of new unit planning applications are for income-restricted housing, a significant increase.

Corrections and Clarifications

- Article corrected to clarify that RRA funding requirement for low-income housing applies only to enhanced infrastructure financing districts under NIFTI-2.

https://www.thecentersquare.com/california/article_861930c9-93ea-4e5c-b098-30d35fe3fa26.html

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