OAKLAND, Calif. (KGO) — Governor Gavin Newsom visited the Bay Area on Monday to highlight one of California’s top priorities: increasing affordable housing. Newsom signed new legislation designed to cut red tape and clear the way for more affordable housing projects.
State leaders say the new law targets one of the biggest obstacles to construction: how affordable housing gets financed. Supporters say the bill streamlines how affordable housing projects receive state funding while encouraging cities to reduce development impact fees, which can add tens of thousands of dollars to a project.
Newsom said the new legislation builds on last year’s housing reforms by addressing another major barrier to construction: the financing process.
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“This is the first time in decades to my knowledge that we’ve done anything on impact fees we ares streamlining bureaucracy… around financing focusing on real accountability and local level and driving reforms at state level and time to develop reforms as it relates to CEQA more support not just punitive actions.” said Newsom.
Backers say the changes could lower development costs by roughly $60,000 to $70,000 per unit. They also acknowledge that financing is only one part of California’s broader housing affordability challenge.
The legislation passed with overwhelming bipartisan support, drawing just 18 no votes across both chambers. Supporters say the changes won’t solve the state’s housing crisis overnight, but they hope it will help get more affordable housing projects built faster – including developments like the one Newsom visited in Oakland.
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