State funds for low-income housing nearly exhausted

Newsom and proponents begin campaign
for November new funding ballot measure

Dianne Spaulding, of the Non-Profit Housing Association of Northern California, reports to low-income Tenderloin residents how previous state housing funds were spent since 2002. Those funds will be exhausted by the end of 2006.
Photo(s) by Luke Thomas

By Pat Murphy

May 17, 2006

Only Los Angeles topped San Francisco in affordable housing state funding received through the 2002 Prop 26 Bond with local need still urgent and the money nearly depleted.

In preparation for bond expiration by the close of this year, a San Francisco based non-profit housing agency joined Mayor Newsom Tuesday in backing a November state ballot measure which would increase the pipeline.

San Francisco Mayor Gavin Newsom

The new bond would authorize $2.8 billion for low-income renters and working family future homeowners statewide.

Known as Housing and Emergency Shelter Trust Fund Act of 2006, and designated Proposition 1C on the ballot, Prop 1C offers an increase over the $2.1 billion 2002 authorization.

San Francisco today is better position for efficient implementation, Newsom told residents of the low-income Senator Hotel located in the Tenderloin, following two years of sharpened City focus on housing issues.

"The biggest change in the last couple of years has been through the Better Neighborhoods planning process, through the organic work in the Planning Commission... building trust, doing programmatic EIRs (Environmental Impact Report) in neighborhoods so that we can reduce the redevelopment risk, reduce the costs ultimately to the consumers... and to excite rather than invite controversy," Newsom stated.

Director of the Mayor's Office of Housing Matt Franklin

The Newsom administration has set a goal of building 15,000 new affordable housing units in the next five years and Prop C1 funding would be applied to that goal, added the mayor.

A report released yesterday by the Non-Profit Housing Association showed the Bay Area received $478 million in low-income housing construction through the expiring bond. San Francisco received $78 million while Los Angeles was the only California city receiving a larger amount --- $100 million.

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