SB 5 (Beall and McGuire) Draws Wide Support from City, Housing, and Labor Leaders

April 24, 2019


SB 5 (Beall and McGuire) Draws Wide Support from

City, Housing, and Labor Leaders


Sacramento - SB 5, an innovative affordable housing financing bill, gained additional support this week as labor, local government and affordable housing leaders urged for its passage. The bill makes the state a long-term funding partner for cities and counties throughout California to support the immediate construction of affordable housing and provide new housing opportunities for working people and families.

“To tackle the growing shortage of affordable units in California, the state needs to be an active partner in the solution,” said Sen. Jim Beall. “Sustainable financing is key to building the amount of affordable housing we desperately need now.”

SB 5 establishes a new, state-backed community investment financing tool that provides cities and counties resources needed to subsidize affordable housing, invest in infrastructure needed to support housing, and develop housing near job centers thus reducing long driving commutes and increasing the quality of life for thousands of California families. Shortening commutes will also help bring the state closer to its goals of reducing greenhouse gas emission and addressing climate change.

"We have an affordable housing crisis across the Golden State -in big cities and small - and the only way we’re going to solve this challenge is by providing local communities the resources they need to build the housing residents deserve,” Sen. Mike McGuire said. “SB 5 provides cities and counties with a permanent revenue source to immediately design and develop housing projects - along with robust state oversight - that will be good for working families, seniors and taxpayers. We have been grateful to work with Senator Beall on this critical legislation.”

SB 5 contains strong provisions that will hold cities accountable, ensuring funds are only spent on state-approved projects by creating the Affordable Housing and Community Development Investment Committee. The goal of this committee is to expedite construction by giving the state strong oversight to approve or reject all projects proposed by local governments. As a candidate, Governor Newsom articulated his goal of building 3.5 million units by 2025. To meet this goal, construction needs to begin immediately and SB 5 provides cities and counties the resources to jump-start building throughout California.

“The League strongly supports SB 5 because it brings the state and local governments together in a shared partnership to ensure long-term, sustainable funding for affordable housing,” said Jan Arbuckle, President of the League of California Cities and Grass Valley Council Member. “Today, cities lack a viable financing tool to help subsidize affordable housing. SB 5 will bring more certainty to the process and result in more affordable units being built.”

Many working Californians have been priced out of the rental market and the state’s homeless population has exploded. Today, more than 2.2 million extremely low-income and very low-income renters are competing for a mere 664,000 affordable homes. That leaves more than 1.5 million of California’s lowest-income families without access to housing, forcing more into homelessness.

SB 5 commits $200 million in funding annually beginning in 2020 and will grow to $2 billion over time. Emphasis will given to:

  • The construction of affordable housing for the development of housing for very-low, low, and moderate-income families. SB 5 is estimated to create 86,000 new and rehabilitated housing units over the next ten years.
  • Transit-oriented development in priority locations that maximize density and transit use and contribute to a reduction in vehicle miles traveled and greenhouse gas emissions.

In addition to housing development and transit-oriented development, funding can also be used for infill development, revitalizing and restoring neighborhoods, and planning for sea level rise.

SB 5 is supported by a broad coalition of business, labor, local governments, housing advocates and community leaders.

“With the demise of redevelopment agencies almost a decade ago, San Jose and other California cities have lacked the resources to build the affordable housing we critically need. I’m grateful for Senator Beall’s leadership and initiative to support this essential endeavor,” Mayor Sam Liccardo, San Jose, California

“As mayor of one of California’s largest cities, in Stockton like throughout our state, we are seeing the damaging impacts of soaring rents and limited housing supply, which is pushing more families to the brink. Solutions such as SB 5 will help put real teeth behind the funding for affordable housing in California. Over the next decade, this bill will spur the rehabilitation of 89,000 housing units - roughly matching the total of all new housing built in California in a single year. Affordable housing will play a major role in helping to stabilize our real estate market and ensure more families are not left behind. I am proud to support SB 5 and look forward to working with the state as a key partner in addressing our housing crisis.” Mayor Michael Tubbs, Stockton, California

“We need funding for affordable housing and housing for our workers. SB 5 creates a much needed ongoing source of funding for affordable housing. We must tackle our housing crisis from all angles if we are to meaningfully address one of our state’s biggest problems.” Senator Scott Wiener, Chair of the Senate Housing Committee

 “I am proud to offer my strong support of SB 5 and thank Senator Beall and Senator McGuire for carrying this important legislation. The lack of affordable housing has truly reached crisis proportions and SB 5 will increase the affordable housing stock in California. Once enacted, the partnership between state and local government will provide an immediate infusion of revenue that local governments can use to build necessary infrastructure and up to 86,000 units of affordable housing over the next 10 years. When this bill arrives in the Assembly, I will also be joining as a co-author.” Assembly Speaker pro Tem Kevin Mullin

"Our Bay Area region continues to promote local and regional solutions, and we're delighted to support this proposal to re-establish the State's commitment to investing in local communities around the state. SB 5 will help our communities recover from the devastating losses we suffered when California dissolved Redevelopment Agencies. Our region is fighting to restore strong neighborhoods and safe, stable, affordable homes -- this proposal provides the critical funding mechanism needed to support our communities' needs and create affordable opportunities for our families, seniors, young people, and people with special needs who are struggling to find a stable home." Amie Fishman, Executive Director, Non-Profit Housing Association of Northern California (NPH)

"California's lack of affordable housing, especially in metropolitan areas, is worsened by rising levels of income inequality.  These are persistent challenges facing working families which require immediate solutions by policymakers.  We thank Senators Jim Beall and Mike McGuire for this legislative proposal to establish a permanent source of funding for affordable housing projects that will provide economic relief to working families while also creating good paying construction jobs in communities throughout our state." Cesar Diaz, State Building and Construction Trades Council, AFL-CIO

“We definitely have a major housing crisis throughout the State. We need to build more homes working families can afford. Our members put in long hours every day traveling long distances in many cases, getting to and from work, they should be able to achieve the American Dream of home ownership, but most can’t. SB 5 will help us get there by building more homes that working families can afford.” Jose Mejia, Director, California State Council of Laborers

“Californians deserve safe, secure infrastructure - roads, water and housing. We applaud Senator Beall for bringing forth a housing funding mechanism that makes the state a long-term funding partner for cities across California to build affordable housing immediately.” Emily Cohen, Executive Vice President of United Contractors.

“SB 5 would create tens of thousands of affordable units, over 300,000 jobs and would give the state billions in economic opportunity. This is a win-win for communities and working families as we work together to solve the affordable housing crisis.” Bob Alvarado, Executive Secretary Treasurer, Northern California Carpenters Regional Council 

“The Cities Association of Santa Clara County, representing the fifteen cities and the elected representatives of 1.9 million Bay Area Residents, supports SB 5. Redevelopment has always been a vehicle to provide affordable housing to cities. We support SB 5 and the creation of an affordable housing opportunity.” Manny Cappello, President, Cities Association of Santa Clara County

 “SB 5 provides immediate funding for cities instead of forcing them to wait years for the tax increment to increase. The aim is to be responsive to the needs of cities and counties by providing timely and on-going funding for affordable housing projects. This bill will bring economic relief for working families while creating good-paying construction jobs in communities throughout our state. We also appreciate the efforts to include accountability and oversight to ensure the development of housing for Californians at all income levels.” Geoffrey Morgan, President and CEO, First Community Housing

“Addressing our housing and infrastructure challenges is going to require a variety of funding solutions. SB 5 creates an ongoing, sustainable funding source for local governments to fund affordable housing by including the state as a long-term partner. The Regional Council of the Southern California Association of Governments (SCAG) is proud to support this bill and we look forward to seeing the benefits in Southern California.”  Alan D. Wapner, President, Southern California Association of Governments

 “Housing California commends Senators Jim Beall and Mike McGuire for proposing a creative solution to providing affordable homes for Californians whose incomes are not enough to keep up with rising rent prices, now 1.4 million households and 130,000 people on the streets on a given night. Senate Bill 5 ensures that public investment will be used wisely by meeting our lower income housing needs with quality homes. We know the result will be a decrease in homelessness and instability, and that’s something the entire legislature should get behind.” Lisa Hershey, Executive Director, Housing California