Newsom walks back plan to withhold dollars from cities that don’t meet housing goals

Instead of penalizing municipalities for failing to reach those goals, California will now reward the ones that do

TRD LOS ANGELES /
Mar.March 12, 2019 09:00 AM
California Governor Gavin Newsom couldn’t overcome resistance from state Democrats (Credit: Wikimedia and Flickr)

Governor Gavin Newsom is pulling back on one of his most radical solutions to the state’s growing housing crisis.

On his third day in office, Newsom said he planned to withhold state transportation dollars from municipalities that fail to hit state-sanctioned housing goals. He’s now shelving that plan for at least four years, according to the Los Angeles Times.

It took just two months for enough political pressure to build against the idea for the new governor to rethink it, in a state that is suffering under a housing shortage.

Many of Newsom’s fellow Democrats in Sacramento were not fans of the strategy because the governor wanted to withhold funds from a hard-fought gas tax increase.

He announced his decision Monday, while unveiling a bill to earmark $750 million to help municipalities plan for more housing. Two-thirds of the money is for payments to municipalities that have demonstrated progress toward increasing housing production, to be awarded by the Department of Housing and Community Development.

Instead of penalizing municipalities for failing to meet goals, the state will now reward them for meeting those goals.

On the campaign trail, Newsom made hefty promises to tackle the state’s housing crisis, and in his first weeks in office, he announced the state would launch the “Marshall Plan for affordable housing.”

In January, he announced a plan to boost the pool of funds for workforce housing with $500 million in low-interest loans from deep-pocketed Silicon valley tech companies. [LAT] —Dennis Lynch


Related Articles

arrow_forward_ios
Welton Jordan of EAH Housing, and the block in South Park where the nonprofit development organization wants to build a 64-unit complex (Credit: Google Maps)

Two affordable housing projects will add 120 units to transformed South Park

14518-14526 Erwin Street (Credit: Google Maps)

Developer wants 71-unit complex to rise in Van Nuys Opportunity Zone

Tenancy in common arrangementsare growing in gentrifying Eastside neighborhoods like Silver Lake, Echo Park and Glassell Park (Credit: iStock)

LA landlords pitch controversial ownership arrangement as rent law kicks in

Monica Rodriguez orchestrated the nixing of a residential project set for the Verdugo Hills Golf Course (Credit: Google Maps, Wikipedia)

The threat of fire doomed this Tujunga resi project. Now the developer will sue

(Credit: Courtesy Santa Fe Art Colony Tenants Association via Los Angeles Magazine and iStock)

Developer sued by DTLA artist collective over rent-restricted building

David Ryu (Credit: Getty Images)

LA becomes 1st city to enact ban on developer money

Adam Shekhter and the 1415 5th Street project

WS Communities boosts affordable housing plans in Santa Monica

AIDS Healthcare Foundation Executive Director Michael Weinstein with a rendering of Crossroads of the World

Judge clears way for Harridge’s Crossroads megaproject

arrow_forward_ios
Loading...