Senator Beall's Reaction to the Veto of SB 377
SACRAMENTO -- Senator Jim Beall, D-San Jose, chairman of the Senate Transportation and Housing Committee, issues this statement regarding the Governor’s veto of Senate Bill 377:
“I believe many working families who have been hit hard by the high cost of housing in California because of the lack of affordable house share in my disappointment of the Governor’s veto of SB 377. This veto is a major blow to affordable housing construction in our state.
“The bill would have increased the value of the state’s existing low-income housing tax credit with no fiscal impact to the state’s general fund. It simply structured the credit in a way so that it is not subject to federal taxation. The State Treasurer’s Office sponsorship of this bill is indicative of the fact that SB 377 would not have affected California’s ability to balance its budget. Also, studies show that further investment not only results in overall cost savings, but adds jobs and benefits local economies.
“SB 377 would have greatly increased the number of affordable housing units that could be built for the same level of state tax expenditure. The whole point of the bill was to keep more money in California for the construction of more affordable housing. We must solve the affordable housing problem and it will be part of a legislative hearing in Los Angeles later this month.’’