Redevelopment: housing successor: Low and Moderate Income Housing Asset Fund.
The proposed amendments allow housing successors to increase the limits on their excess surplus definitions, extending the definition period from four to eight fiscal years for specific jurisdictions such as the City of Indian Wells, the City of La Quinta, and the County of Yolo. The intent is to encourage these jurisdictions to encumber funds for affordable housing development or transfer them for other social priorities, thereby addressing the urgent need for additional affordable housing units and preventing funds from being left idle.
Assembly Bill 2224, introduced by Assembly Member Mayes on February 12, 2020, aims to amend the existing provisions of the Health and Safety Code concerning the Low and Moderate Income Housing Asset Fund. The legislation was introduced in response to the ongoing housing crisis in California, highlighted by a significant shortage of affordable rental units. The California Housing Partnership has noted a need for 1,400,000 additional affordable rental units, and this bill seeks to provide local jurisdictions greater flexibility in the use of funds to address housing needs more effectively.
Despite its objectives, AB 2224 has raised concerns among critics who argue that it may not adequately resolve the underlying issues related to the accessibility of affordable housing. Some stakeholders believe that simply providing more flexibility to local governments does not ensure that funds will be allocated efficiently or equitably to meet community needs. Additionally, there are apprehensions about the potential for inequities in the housing system being perpetuated if the bill's guidelines and monitoring are not effectively enforced.