Governor Jerry Brown Signs Legislation to Increase Financing for Affordable Housing
SACRAMENTO –This weekend, Governor Jerry Brown signed AB 1568, authored by Assemblymember Richard Bloom (D-Santa Monica), which will give local jurisdictions the ability to finance infrastructure and affordable housing using new sales and use tax increment, within qualifying enhanced infrastructure improvement districts (EIFD). Simply put, the bill allows a portion of sales and use tax revenue in these districts to be spent on infrastructure and affordable housing.
“Over the past several years, we have borne witness to a housing crisis that has pushed Californians into homelessness, forced low-income individuals out of their communities, and increased poverty on an unprecedented scale,” said Assemblymember Bloom. “AB 1568 is an important piece of addressing and reversing the loss of affordable housing that has exacerbated this crisis.”
AB 1568 creates the Neighborhood Infill Finance and Transit Improvement Act of 2017 (NIFTI), and authorizes local communities to use their local share of tax dollars to address the housing and infrastructure needs in their area. The NIFTI districts must be located in qualified infill locations and 20 percent of revenue is required to be spent on affordable housing.
Since the dissolution of redevelopment agencies in 2011, local governments have struggled to find reliable financing mechanisms for new construction and infrastructure improvements. Many of these neighborhoods lack sufficient resources to spur private investment, economic development and affordable housing. NIFTI will create new opportunities for local governments and the private sector to work together to revitalize communities, create good jobs, and build affordable homes.
“Increasing the supply of housing is critical to solving California’s housing crisis, but it is also important that we make sure that the affordability of housing is prioritized,” said Bloom.
Assemblymember Bloom has been a leader on affordable housing since his tenure on the Santa Monica City Council and, in addition to introducing twelve housing bills this year, helped spearhead the successful effort to pass a comprehensive housing package. Two of his other housing bills, AB 1505 and AB 1521, were a part of that package and were signed last month by Governor Brown.
Richard Bloom represents California’s 50th Assembly District, which comprises the communities of Agoura Hills, Bel Air, Beverly Hills, Brentwood, Hollywood, Malibu, Pacific Palisades, Santa Monica, Topanga, West Hollywood, and West Los Angeles.