Existing law establishes the California Statewide Housing Plan to serve as a state housing plan for all relevant purposes. Existing law requires that the plan incorporate, among other things, a statement of housing goals, policies, and objectives, and requires the Department of Housing and Community Development (department) to update and provide a revision of the plan to the Legislature every 4 years, as specified. Existing law requires each update and revision to the plan occurring on or after January 1, 2023, to include an inventory of the number of affordable units needed to meet the states affordable housing needs for the plan period and to incorporate technical updates and provide technical recommendations, as specified.

This bill would require each update and revision to the plan to also include (1) an analysis of first-time home buyer assistance policies, goals, and objectives; (2) recommendations for actions that will contribute to increasing home ownership opportunities for first-time home buyers in California; and (3) an evaluation and summary of demographic disparities in home ownership attainment in California, as specified. The bill would require the department to consult with the California Housing Finance Agency and would authorize the department to consult with other state departments and agencies deemed relevant to inform the plan pursuant to these provisions.

Existing law establishes the California Statewide Housing Plan to serve as a state housing plan for all relevant purposes. Existing law requires that the plan incorporate, among other things, a statement of housing goals, policies, and objectives, and requires the Department of Housing and Community Development (department) to update and provide a revision of the plan to the Legislature every 4 years, as specified. Existing law requires each update and revision to the plan occurring on or after January 1, 2023, to include an inventory of the number of affordable units needed to meet the states affordable housing needs for the plan period and to incorporate technical updates and provide technical recommendations, as specified.

This bill would require each update and revision to the plan to also include (1) an analysis of first-time home buyer assistance policies, goals, and objectives; (2) recommendations for actions that will contribute to increasing home ownership opportunities for first-time home buyers in California; and (3) an evaluation and summary of demographic disparities in home ownership attainment in California, as specified. The bill would require the department to consult with the California Housing Finance Agency and would authorize the department to consult with other state departments and agencies deemed relevant to inform the plan pursuant to these provisions.

Existing law establishes the California Statewide Housing Plan to serve as a state housing plan for all relevant purposes. Existing law requires that the plan incorporate, among other things, a statement of housing goals, policies, and objectives, and requires the Department of Housing and Community Development (department) to update and provide a revision of the plan to the Legislature every 4 years, as specified. Existing law requires each update and revision to the plan occurring on or after January 1, 2023, to include an inventory of the number of affordable units needed to meet the states affordable housing needs for the plan period and to incorporate technical updates and provide technical recommendations, as specified.

This bill would require each update and revision to the plan to also include a goal to increase home ownership among first-time home buyers in the state by at least 20% above the average of home ownership rates among first-time home buyers over the prior four year period. (1) an analysis of first-time home buyer assistance policies, goals, and objectives; (2) recommendations for actions that will contribute to increasing homeownership opportunities for first-time home buyers in California; and (3) an evaluation and summary of demographic disparities in homeownership attainment in California, as specified. The bill would require the department to consult with the California Housing Finance Agency and would authorize the department to consult with other state departments and agencies deemed relevant to inform the plan pursuant to these provisions.

Existing law establishes the California Statewide Housing Plan to serve as a state housing plan for all relevant purposes. Existing law requires that the plan incorporate, among other things, a statement of housing goals, policies, and objectives, and requires the Department of Housing and Community Development to update and provide a revision of the plan to the Legislature every 4 years, as specified. Existing law requires each update and revision to the plan occurring on or after January 1, 2023, to include an inventory of the number of affordable units needed to meet the states affordable housing needs for the plan period and to incorporate technical updates and provide technical recommendations, as specified.

This bill would require each update and revision to the plan to also include a goal to increase home ownership among first-time home buyers in the state by at least 20% above the average of home ownership rates among first-time home buyers over the prior four year period.

 THIRD READING  

Bill No: AB 1508

Author: Ramos (D)

Amended: 4/10/23 in Assembly

Vote: 21

SENATE HOUSING COMMITTEE: 11-0, 6/20/23

AYES: Wiener, Ochoa Bogh, Blakespear, Caballero, Cortese, McGuire, Padilla, Seyarto, Skinner, Umberg, Wahab

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 79-0, 6/1/23 - See last page for vote

SUBJECT: Department of Housing and Community Development: California Statewide Housing Plan

SOURCE: The Two Hundred for Homeownership

DIGEST:

This bill requires the Department of Housing and Community Development (HCD) to incorporate analyses of first-time homebuyer assistance programs, recommendations to increase homeownership opportunities for first-time homebuyers, and a demographic disparities in homeownership attainment in future updates to the Statewide Housing Plan (SHP).

ANALYSIS:

Existing law:

1. Requires HCD to develop the SHP, with updates every four years.
2. Requires that the SHP be developed with the cooperation of the private housing industry, regional and local housing and planning agencies, and other state agencies, including, but not limited to, the California Department of Aging, the State Department of Social Services, the State Department of Health Care Services, the Employment Development Department, and the State Department of Developmental Services.
3. Requires the SHP incorporates the following information:
   1. A statement of housing goals, policies, and objectives;
   2. An evaluation and summary of housing conditions throughout the state;
   3. A determination of the current and future statewide need for housing development;
   4. Goals for the provision of housing assistance;
   5. An identification of governmental and nongovernmental constraints and obstacles, and specific recommendations for their removal;
   6. An analysis of state and local housing and building codes and their enforcement;
   7. Recommendations for what actions may be taken by all levels of government (federal, state, and local) and the private sector that will contribute to the attainment of statewide housing goals;
   8. A housing strategy that coordinates the housing assistance and activities of state and local agencies, including the provision of housing assistance for various population groups, including, but not limited to, elderly persons, persons with disabilities, large families, families where a female is the head of household, farmworker households, and other specific populations identified by HCD;
   9. A review of housing assistance policies, goals, and objectives affecting people experiencing homelessness;
   10. An inventory of the number of affordable units needed to meet both current and future statewide housing needs; and
   11. A housing data strategy.

This bill:

1. Requires each update and revision to the SHP occurring after January 1, 2024, to incorporate the following:
   1. An analysis of first-time homebuyer assistance policies, goals, and objectives;
   2. Recommendations for actions that will contribute to increasing homeownership opportunities for first-time homebuyers in California; and
   3. An evaluation and summary of demographic disparities in homeownership attainment in California, which may include, but is not limited to, disparities related to race, ethnicity, household income, household size, age, and disability status.
2. Requires HCD to consult with the California Housing Finance Agency (CalHFA), and allows them to consult with other department and agencies, to inform the plan.

Background

Every four years, HCD is required to produce a statewide plan on housing conditions and need, in coordination with the private sector and housing and planning agencies at various levels of government (i.e., state, regional, and local). The most recent plan was released in March of 2022.

According to the most recent version, “The Statewide Housing Plan lays out a vision to ensure every Californian has a safe, stable, and affordable home. The state is working towards three objectives to achieve this vision:

1. Keep Californians in their homes;
2. Produce more affordable and climate-smart housing; and
3. Continue to act with urgency to address homelessness and housing needs.

The plan describes why we need to act now to address the state’s housing affordability crisis, what we know about California’s housing crisis, including how we got here and growing challenges, what the housing needs in California are, what our state and local governments are currently doing to address the problem, where we are going in the future, and how we will track our progress.” 

Comments

1. Author’s Statement. According to the author, “AB 1508 will ask the California Department of Housing and Community Development (HCD) to include a goal to increase homeownership among first-time home buyers in the Statewide Housing Plan. This legislation is a reasonable and modest step in ensuring that as California invests hundreds of millions of dollars in expanding homeownership for working families, our Statewide Housing Plan reflects and acknowledges both that investment as well as the shared values it represents. By requiring that the goal of increasing first time homeownership be included in the Statewide Housing Plan, AB 1508 does not require any additional state resources. AB 1508 simply asks that the important homeownership work that is already being funded by HCD and other state agencies be accounted for, and that the larger goals and values represented by existing homeownership programs be acknowledged as an important part of the state’s vision for housing in California.”
2. Purpose. The SHP is required to contain housing goals, policies, and objectives, as well as information regarding the statewide housing development need for the plan period, and recommendations for actions that can be taken to achieve the housing goals, among other criteria. While growth in homeownership opportunities will be indirectly captured in many of these criteria – statewide development need is not subdivided between rental and ownership housing, for instance – there is no specific requirement in the SHP statute for focused analysis of first-time homebuyer opportunities or recommendations for actions that will increase those opportunities. Homeownership is an important mechanism for wealth generation and financial stability, as recent census data shows that homeowner households have a median wealth of $305,000, compared to renter households with a median wealth of just $4,084. HCD and CalHFA operate several financing programs targeted at homeownership, including the CalHOME program and the California Dream For All program. This bill requires HCD, in conjunction with CalHFA, to include specific analyses and recommendations related to increasing first-time homebuyer opportunities.

Furthermore, racial disparities in access to homeownership continue to be severe. National survey data from the National Association of Realtors found that from Q3 of 2021 to Q3 of 2022, 88% of all homebuyers were white, compared to only 8% Hispanic/Latino, 3% Black, and 2% Asian American. The share of homebuyers who were white actually increased six percent from the prior year, while the share of Black and Asian American buyers declined. The gap in homeownership rates between Black and white households is currently the largest it has been in the past decade.

Recent data from the initial phase of the California Dream For All program also indicates that nearly two-thirds of initial program participants were white homebuyers, although the program did see more participation from Hispanic/Latino homebuyers (34% of participants) than their overall homeownership rate in the state (25% of homeowners). Additionally, census data shows that while white households have a median wealth of $187,300, Hispanic households only have median wealth of $31,700, and Black households of $14,100. These racial disparities stem in part from a long legacy of unequal access to wealth and discrimination in housing in the United States against communities of color, including restrictive racial covenants, the practice of redlining, racially biased home appraisals and lending application denials, and continued patterns of segregation and concentrated poverty.

This bill requires the SHP to include a specific evaluation of demographic disparities in homeownership attainment in California, including race, ethnicity, and a variety of other characteristics that may impact an individual's ability to purchase a home.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• HCD estimates ongoing costs of approximately $195,000 annually for 1.0 PY of staff to lead coordination among various divisions within the department, the California Housing Finance Agency (CalHFA), and other relevant state entities, for data collection, policy research, and the development of recommendations that would be incorporated in the SHP. (General Fund)
• CalHFA indicates that any costs to coordinate with HCD would be minor and absorbable. (CA Housing Finance Fund)

SUPPORT: (Verified 9/2/23)

The Two Hundred for Homeownership (source)

Asian Business Association of Silicon Valley

Bay Area Council

California Association of Realtors

California Black Chamber of Commerce

California Catholic Conference

California Community Builders

California Journal for Filipino Americans

California YIMBY

Casita Coalition

Community Consumer Defense League

Community Housing Opportunities Corporation

Cornerstone Construction

Faith and Community Empowerment

Farmworkers Institute of Education & Leadership Development

Habitat for Humanity California

Hope Through Housing Foundation

Inland Empire Latino Coalition

Jesse Miranda Center for Hispanic

Lisc San Diego

National Diversity Coalition

National Federation of Filipino American Associations

Neighborhood Partnership Housing Services, INC.

New California Coalition

People for Housing - Orange County

San Francisco Bay Area Planning and Urban Research Association

Southern California Association of Governments

Southern California Black Chamber of Commerce

Southern California Leadership Council

Tentmakers Inc.

Terrahome

The Unity Council

Unidosus

Ventura County Community Development Corp

OPPOSITION: (Verified 9/2/23)

None received

ASSEMBLY FLOOR: 79-0, 6/1/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Gabriel

Prepared by: Mehgie Tabar / HOUSING / (916) 651-4124

9/2/23 16:44:12

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1508 (Ramos) - Department of Housing and Community Development: California Statewide Housing Plan

Bill Summary:

AB 1508 would require the Department of Housing and Community Development (HCD) to incorporate analyses of first-time homebuyer assistance programs, recommendations to increase homeownership opportunities for first-time homebuyers, and a demographic disparities in homeownership attainment in future updates to the Statewide Housing Plan (SHP).

Fiscal Impact:

• HCD estimates ongoing costs of approximately $195,000 annually for 1.0 PY of staff to lead coordination among various divisions within the department, the California Housing Finance Agency (CalHFA), and other relevant state entities, for data collection, policy research, and the development of recommendations that would be incorporated in the SHP. (General Fund)
  
• CalHFA indicates that any costs to coordinate with HCD would be minor and absorbable. (CA Housing Finance Fund)

Background:

The California Statewide Housing Plan serves as the state housing plan for all relevant purposes and is developed by HCD in cooperation with the private housing industry, as well as regional and local housing and planning agencies, and other agencies of the state. Existing law requires the plan to incorporate a statement of housing goals, policies, and objectives, as well as eight specified segments, and requires HCD to update the plan every four years. The most recent SHP was released in March of 2022. Existing law requires revisions to the plan to contain specified information, including the following:

• A comparison of the housing need and the number of building permits issued in the previous four years.
• A revision of the determination of the statewide housing needs for the planning period.
• A revision of the housing assistance goals.
• An evaluation and summary of housing conditions throughout the state, and discussion of the housing needs of various population groups, as specified.
• An update of recommendations for actions by federal, state, and local governments and the private sector that will facilitate the attainment of state housing goals.
• A 10-year housing data strategy that identifies the data useful to enforce existing housing laws and inform state housing policymaking, as specified.

Existing law also requires updates to the SHP occurring on or after January 1, 2023 to incorporate an inventory of the number of affordable units needed to meet the state’s affordable housing needs for the plan period, as well as the incorporation of technical updates and recommendations that include recommendations for modernizing statutory and regulatory terminology, and updating cross references to relevant reports and studies relied upon in the plan, as specified.

Proposed Law:

AB 1508 would require HCD to incorporate all of the following in each update and revision to the SHP occurring on or after January 1, 2024:

• An analysis of first-time homebuyer assistance policies, goals, and objectives.
• Recommendations for actions that will contribute to increasing homeownership opportunities for first-time homebuyers in California.
• An evaluation and summary of demographic disparities in homeownership attainment in California, which may include disparities related to race, ethnicity, household income, household size, age, and disability status.
  

The bill requires HCD to consult with CalHFA, and authorizes consultation with other relevant state departments and agencies, to inform the incorporation of the additional information and analysis into the SHP.

Related Legislation:

AB 1474 (Reyes), which is currently pending on the Senate Floor, would require HCD to include information on the provision of housing assistance to veterans and consult with the Department of Veterans Affairs when developing updates to the SHP.

AB 68 (Quirk-Silva), Chap. 341/2021, required HCD to include additional information and analysis in updates to the SHP, and annually report information regarding the administration of grant programs and land use oversight actions related to housing from the previous fiscal year, as specified.

-- END --

SENATE COMMITTEE ON HOUSING

Senator Scott Wiener, Chair

2023 - 2024 Regular

Bill No: AB 1508 Hearing Date: 6/20/2023

SUBJECT: Department of Housing and Community Development: California Statewide Housing Plan

DIGEST: This bill requires future updates to the Statewide Housing Plan (SHP) to incorporate specified information on homeownership opportunities for first-time homebuyers.

ANALYSIS:

Existing law:

1. Requires the Department of Housing and Community Development (HCD) to develop the SHP, with updates every four years.
2. Requires that the SHP be developed with the cooperation of the private housing industry, regional and local housing and planning agencies, and other state agencies, including, but not limited to, the California Department of Aging, the State Department of Social Services, the State Department of Health Care Services, the Employment Development Department, and the State Department of Developmental Services.
3. Requires the SHP incorporates the following information:
   1. A statement of housing goals, policies, and objectives;
   2. An evaluation and summary of housing conditions throughout the state;
   3. A determination of the current and future statewide need for housing development;
   4. Goals for the provision of housing assistance;
   5. An identification of governmental and nongovernmental constraints and obstacles, and specific recommendations for their removal;
   6. An analysis of state and local housing and building codes and their enforcement;
   7. Recommendations for what actions may be taken by all levels of government (federal, state, and local) and the private sector that will contribute to the attainment of statewide housing goals;
   8. A housing strategy that coordinates the housing assistance and activities of state and local agencies, including the provision of housing assistance for various population groups, including, but not limited to, elderly persons, persons with disabilities, large families, families where a female is the head of household, farmworker households, and other specific populations identified by HCD;
   9. A review of housing assistance policies, goals, and objectives affecting people experiencing homelessness;
   10. An inventory of the number of affordable units needed to meet both current and future statewide housing needs; and
   11. A housing data strategy.

This bill:

1. Requires each update and revision to the SHP occurring after January 1, 2024, to incorporate the following:
   1. An analysis of first-time homebuyer assistance policies, goals, and objectives;
   2. Recommendations for actions that will contribute to increasing homeownership opportunities for first-time homebuyers in California; and
   3. An evaluation and summary of demographic disparities in homeownership attainment in California, which may include, but is not limited to, disparities related to race, ethnicity, household income, household size, age, and disability status.
2. Requires HCD to consult with the California Housing Finance Agency (CalHFA), and allows them to consult with other department and agencies, to inform the plan.

COMMENTS:

1. Author’s Statement. “AB 1508 will ask the California Department of Housing and Community Development (HCD) to include a goal to increase homeownership among first-time home buyers in the Statewide Housing Plan. This legislation is a reasonable and modest step in ensuring that as California invests hundreds of millions of dollars in expanding homeownership for working families, our Statewide Housing Plan reflects and acknowledges both that investment as well as the shared values it represents. By requiring that the goal of increasing first time homeownership be included in the Statewide Housing Plan, AB 1508 does not require any additional state resources. AB 1508 simply asks that the important homeownership work that is already being funded by HCD and other state agencies be accounted for, and that the larger goals and values represented by existing homeownership programs be acknowledged as an important part of the state’s vision for housing in California.”
2. Background: Statewide Housing Plan. Every four years, HCD is required to produce a statewide plan on housing conditions and need, in coordination with the private sector and housing and planning agencies at various levels of government (i.e., state, regional, and local). The most recent plan was released in March of 2022.^[1]

According to the most recent version, “The Statewide Housing Plan lays out a vision to ensure every Californian has a safe, stable, and affordable home. The state is working towards three objectives to achieve this vision:

1. Keep Californians in their homes;
2. Produce more affordable and climate-smart housing; and
3. Continue to act with urgency to address homelessness and housing needs.

The plan describes why we need to act now to address the state’s housing affordability crisis, what we know about California’s housing crisis, including how we got here and growing challenges, what the housing needs in California are, what our state and local governments are currently doing to address the problem, where we are going in the future, and how we will track our progress.” 

The SHP is required to contain housing goals, policies, and objectives, as well as information regarding the statewide housing development need for the plan period, and recommendations for actions that can be taken to achieve the housing goals, among other criteria. While growth in homeownership opportunities will be indirectly captured in many of these criteria – statewide development need is not subdivided between rental and ownership housing, for instance – there is no specific requirement in the SHP statute for focused analysis of first-time homebuyer opportunities or recommendations for actions that will increase those opportunities. Homeownership is an important mechanism for wealth generation and financial stability, as recent census data shows that homeowner households have a median wealth of $305,000, compared to renter households with a median wealth of just $4,084. HCD and CalHFA operate several financing programs targeted at homeownership, including the CalHOME program and the California Dream For All program. This bill requires HCD, in conjunction with CalHFA, to include specific analyses and recommendations related to increasing first-time homebuyer opportunities.

Furthermore, racial disparities in access to homeownership continue to be severe. National survey data from the National Association of Realtors found that from Q3 of 2021 to Q3 of 2022, 88% of all homebuyers were white, compared to only 8% Hispanic/Latino, 3% Black, and 2% Asian American. The share of homebuyers who were white actually increased six percent from the prior year, while the share of Black and Asian American buyers declined. The gap in homeownership rates between Black and white households is currently the largest it has been in the past decade.

Recent data from the initial phase of the California Dream For All program also indicates that nearly two-thirds of initial program participants were white homebuyers, although the program did see more participation from Hispanic/Latino homebuyers (34% of participants) than their overall homeownership rate in the state (25% of homeowners). Additionally, census data shows that while white households have a median wealth of $187,300, Hispanic households only have median wealth of $31,700, and Black households of $14,100. These racial disparities stem in part from a long legacy of unequal access to wealth and discrimination in housing in the United States against communities of color, including restrictive racial covenants, the practice of redlining, racially biased home appraisals and lending application denials, and continued patterns of segregation and concentrated poverty.

This bill requires the SHP to include a specific evaluation of demographic disparities in homeownership attainment in California, including race, ethnicity, and a variety of other characteristics that may impact an individual's ability to purchase a home.

Related Legislation:

AB 1386 (Gabriel, 2023) — authorizes entities referring veterans to housing units funded by the Veterans Housing and Homelessness Prevention Program (VHHP) or certain housing units supported by project-based housing vouchers to refer veterans at certain income levels if units are unable to be filled after 14 days at a lower income threshold. This bill is also being heard at this hearing.

AB 1474 (Reyes, 2023) — adds veterans to the list of population groups that HCD must consider in the SHP, and adds the Department of Veterans Affairs (CalVet) to the list of state departments HCD must consult with in the development of the state’s housing strategy. This bill passed the Senate Committee on Housing with an 11 – 0 vote on June 6.

AB 68 (Quirk-Silva, Chapter 341, Statutes of 2021) — updated the contents of the SHP and expanded the requirements of the annual report produced by HCD.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 14, 2023.)

SUPPORT:

The Two Hundred for Homeownership (Sponsor)

Asian Business Association of Silicon Valley

Bay Area Council

California Association of Realtors

California Black Chamber of Commerce

California Catholic Conference

California Community Builders

California Journal for Filipino Americans

California YIMBY

Casita Coalition

Community Consumer Defense League

Community Housing Opportunities Corporation

Cornerstone Construction

Faith and Community Empowerment

Farmworkers Institute of Education & Leadership Development

Hope Through Housing Foundation

Inland Empire Latino Coalition

Jesse Miranda Center for Hispanic

Lisc San Diego

National Diversity Coalition

National Federation of Filipino American Associations

Neighborhood Partnership Housing Services, INC.

New California Coalition

People for Housing - Orange County

San Francisco Bay Area Planning and Urban Research Association (SPUR)

Southern California Black Chamber of Commerce

Southern California Leadership Council

Tentmakers INC

Terrahome

The Unity Council

Unidosus

Ventura County Community Development Corp

OPPOSITION:

None received.

-- END --

1. Statewide Housing Plan (arcgis.com) ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1508

Author:(Ramos)

As Amended Ver:April 10, 2023

Majority vote

SUMMARY

Requires future updates to the Statewide Housing Plan (SHP) to incorporate specified information on homeownership opportunities for first-time homebuyers.

Major Provisions

1. Requires each update and revision to the SHP occurring after January 1, 2024, to incorporate the following:
   1. An analysis of first-time homebuyer assistance policies, goals, and objectives;
   2. Recommendations for actions that will contribute to increasing homeownership opportunities for first-time homebuyers in California; and
   3. An evaluation and summary of demographic disparities in homeownership attainment in California, which may include, but is not limited to, disparities related to race, ethnicity, household income, household size, age, and disability status.
2. Requires the Department of Housing and Community Development (HCD) to consult with the California Housing Finance Agency (CalHFA), and allows them to consult with other department and agencies, to inform the plan pursuant to this bill.

COMMENTS

Statewide Housing Plan: Every four years, HCD is required to produce a SHP, in coordination with the private sector and state, regional, and local housing and planning agencies. The most recent plan was released in March of 2022. According to the most recent version, "The Statewide Housing Plan lays out a vision to ensure every Californian has a safe, stable, and affordable home. The state is working towards three objectives to achieve this vision:

1. Keep Californians in their homes;
2. Produce more affordable and climate-smart housing; and
3. Continue to act with urgency to address homelessness and housing needs.

"The plan describes why we need to act now to address the state's housing affordability crisis, what we know about California's housing crisis, including how we got here and growing challenges, what the housing needs in California are, what our state and local governments are currently doing to address the problem, where we are going in the future, and how we will track our progress."  

The SHP is required to contain housing goals, policies, and objectives, as well as information regarding the statewide housing development need for the plan period, and recommendations for actions that can be taken to achieve the housing goals, among other criteria. While growth in homeownership opportunities will be indirectly captured in many of these criteria – statewide development need is not subdivided between rental and ownership housing, for instance – there is no specific requirement in the SHP statute for focused analysis of first-time homebuyer opportunities or recommendations for actions that will increase those opportunities. Homeownership is an important mechanism for wealth generation and financial stability, as recent census data shows that homeowner households have a median wealth of $305,000, compared to renter households with a median wealth of just $4,084.^[1] HCD and CalHFA operate several financing programs targeted at homeownership, including the CalHOME program and the California Dream For All program. This bill requires HCD, in conjunction with CalHFA, to include specific analyses and recommendations related to increasing first-time homebuyer opportunities.

Furthermore, racial disparities in access to homeownership continue to be severe. National survey data from the National Association of Realtors found that from Q3 of 2021 to Q3 of 2022, 88% of all homebuyers were white, compared to only eight percent Hispanic/Latino, three percent Black, and two percent Asian American. The share of homebuyers who were white actually increased six percent from the prior year, while the share of Black and Asian American buyers declined.^[2] The gap in homeownership rates between Black and white households is currently the largest it has been in the past decade.^[3]

Recent data from the initial phase of the California Dream For All program also indicates that nearly two-thirds of initial program participants were white homebuyers, although the program did see more participation from Hispanic/Latino homebuyers (34% of participants) than their overall homeownership rate in the state (25% of homeowners).^[4] Additionally, census data shows that while white households have a median wealth of $187,300, Hispanic households only have median wealth of $31,700, and Black households of $14,100. These racial disparities stem in part from a long legacy of unequal access to wealth and discrimination in housing in the United States against communities of color, including restrictive racial covenants, the practice of redlining, racially biased home appraisals and lending application denials, and continued patterns of segregation and concentrated poverty.

This bill requires the SHP to include a specific evaluation of demographic disparities in homeownership attainment in California, including race, ethnicity, and a variety of other characteristics that may impact an individual's ability to purchase a home.

According to the Author

"AB 1508 will ask the California Department of Housing and Community Development (HCD) to include a goal to increase homeownership among first-time home buyers in the Statewide Housing Plan. This legislation is a reasonable and modest step in ensuring that as California invests hundreds of millions of dollars in expanding homeownership for working families, our Statewide Housing Plan reflects and acknowledges both that investment as well as the shared values it represents. By requiring that the goal of increasing first time homeownership be included in the Statewide Housing Plan, AB 1508 does not require any additional state resources. AB 1508 simply asks that the important homeownership work that is already being funded by HCD and other state agencies be accounted for, and that the larger goals and values represented by existing homeownership programs be acknowledged as an important part of the state's vision for housing in California."

Arguments in Support

According to a coalition of supporters, including UnidosUS and the Asian Business Association of Silicon Valley, "While homeownership is the primary way in which most Americans build wealth and assets, California has the third highest median home price in the country and the high-cost of housing has pushed what was once a modest goal further out of reach. People of color, who make up more than 60% of the state's population, pay the heaviest price for the broken housing market in California. African American homeownership rates are 26% lower and Latino homeownership rates are 19% lower than white Californians. In the current budget, the State of California will directly invest approximately $680 million in homeownership, both through construction financing as well as mortgage subsidy. HCD will itself oversee $170 million in funding for homeownership through the CalHome and Joe Serna Jr. Farmworker Housing programs. Considering this investment, we believe it is time to have homeownership officially included in the state's housing plan."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. HCD estimates ongoing General Fund costs of $195,000 annually for additional staffing to lead coordination between HCD divisions and CalHFA for data collection, policy research, and the development of recommendations to be incorporated in the SHP.
2. CalHFA anticipates negligible costs.

VOTES

ASM HOUSING AND COMMUNITY DEVELOPMENT: 8-0-0

YES: Wicks, Joe Patterson, Wendy Carrillo, Zbur, Kalra, Quirk-Silva, Sanchez, Ward

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: April 10, 2023

CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0000482

1. https://www.census.gov/library/stories/2022/08/wealth-inequality-by-household-type.html ↑

2. https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before ↑

3. https://www.nar.realtor/newsroom/more-americans-own-their-homes-but-black-white-homeownership-rate-gap-is-biggest-in-a-decade-nar ↑

4. https://calmatters.org/housing/2023/04/california-first-time-homebuyer-assistance-demographics/ ↑

Date of Hearing: May 3, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1508

Author:(Ramos) – As Amended Ver:April 10, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires future updates to the Statewide Housing Plan (SHP) to include analyses of first-time homebuyer assistance programs, recommendations to increase opportunities for first-time homebuyers, and a demographic analysis related to homeownership.

Specifically, this bill:

1. Requires each update and revision to the SHP occurring after January 1, 2024, to incorporate the following:
   1. An analysis of first-time homebuyer assistance policies, goals, and objectives.
   2. Recommendations for actions that will contribute to increasing homeownership opportunities for first-time homebuyers in California.
   3. An evaluation and summary of demographic disparities in homeownership attainment in California, including disparities related to race, ethnicity, household income, household size, age, and disability status.
2. Requires the Department of Housing and Community Development (HCD) to consult with the California Housing Finance Agency (CalHFA), and allows them to consult with other department and agencies, to inform the plan pursuant to this bill.

FISCAL EFFECT:

1. HCD estimates ongoing General Fund costs of $195,000 annually for additional staffing to lead coordination between HCD divisions and CalHFA for data collection, policy research, and the development of recommendations to be incorporated in the SHP.
2. CalHFA anticipates negligible costs.

COMMENTS:

1. Purpose. The author of this bill seeks to improve homeownership opportunities for first-time homebuyers by requiring the SHP to include a goal to increase homeownership along with an analysis of demographic disparities in homeownership attainment in California. According to the author:

Today, homeownership is the way in which most Americans build and sustain wealth across generations. Unfortunately, while homeownership is often referred to as the American Dream, non-White families in California and throughout the country were excluded from ownership opportunities due to redlining, exclusionary zoning, and other systemic discrimination. Due to these discriminatory factors, people of color face lower rates of homeownership and wealth throughout the country, but especially California. While white families have a homeownership rate of 63%, the Latino and Black homeownership rates are only 44% and 37%, respectively.

1. Background. Existing state law requires HCD to produce, every four years, a SHP in coordination with the private sector and state, regional, and local housing and planning agencies. The most recent plan was released in March 2022. The SHP must contain housing goals, policies, and objectives, as well as information regarding the statewide housing development need for the plan period, and recommendations for actions that can be taken to achieve the housing goals, among other criteria. There is no specific requirement in the SHP statute for focused analysis of first-time homebuyer opportunities or recommendations for actions that will increase those opportunities.

Homeownership can be an important mechanism for wealth generation and financial stability. Recent census data shows that homeowner households have a median wealth of $305,000, compared to renter households with a median wealth of just $4,084. HCD and CalHFA operate several financing programs targeted at homeownership, including the CalHOME program and the California Dream For All program. This bill requires HCD, in consultation with CalHFA, to include specific analyses and recommendations related to increasing first-time homebuyer opportunities.

National survey data from the National Association of Realtors found that, from the third quarter of 2021 to the third quarter of 2022, 88% of all homebuyers were white, compared to 8% Hispanic, 3% Black, and 2% Asian American. The share of homebuyers who were white actually increased 6% from the prior year, while the share of Black and Asian American buyers declined. The gap in homeownership rates between Black and white households is currently the largest it has been in the past decade.

This bill requires the SHP to include a specific evaluation of demographic disparities in homeownership attainment in California, including race, ethnicity, and a variety of other characteristics that may impact an individual’s ability to purchase a home.

1. Related Legislation. AB 426 (Jackson) requires the SHP to include a strategy for the state to keep pace with building housing units and affiliated infrastructure during an economic downturn. AB 426 is pending in committee.

AB 1474 (Reyes) adds veterans to the list of population groups that HCD must consider in the SHP, and adds the Department of Veterans Affairs (CalVet) to the list of state departments HCD must consult with in development the state’s housing strategy. AB 1474 is pending in this committee.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 19, 2023

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Buffy Wicks, Chair

ABPCA Bill Id:AB 1508 (

Author:Ramos) – As Amended Ver:April 10, 2023

SUBJECT: Department of Housing and Community Development: California Statewide Housing Plan

SUMMARY: Requires future updates to the Statewide Housing Plan (SHP) to incorporate specified information on homeownership opportunities for first-time homebuyers. Specifically, this bill:

1. Requires each update and revision to the SHP occurring after January 1, 2024, to incorporate the following:
   1. An analysis of first-time homebuyer assistance policies, goals, and objectives;
   2. Recommendations for actions that will contribute to increasing homeownership opportunities for first-time homebuyers in California; and
   3. An evaluation and summary of demographic disparities in homeownership attainment in California, which may include, but is not limited to, disparities related to race, ethnicity, household income, household size, age, and disability status.
2. Requires the Department of Housing and Community Development (HCD) to consult with the California Housing Finance Agency (CalHFA), and allows them to consult with other department and agencies, to inform the plan pursuant to this bill.

EXISTING LAW: Requires HCD to develop the SHP, including that:

1. The plan serves as a state housing plan for all relevant purposes.
2. The plan must be developed in cooperation with the private housing industry, regional and local housing and planning agencies, and other agencies of the state, including, but not limited to, the California Department of Aging, the State Department of Social Services, the State Department of Health Care Services, the Employment Development Department, and the State Department of Developmental Services.
3. The plan must be updated every four years.
4. The plan must incorporate a variety of information, including:
   1. A statement of housing goals, policies, and objectives;
   2. An evaluation and summary of housing conditions throughout the state;
   3. A determination of the statewide need for housing development for the plan period;
   4. Goals for the provision of housing assistance for the plan period;
   5. An identification of governmental and nongovernmental constraints and obstacles and specific recommendations for their removal;
   6. An analysis of state and local housing and building codes and their enforcement;
   7. Recommendations for actions by federal, state, and local governments and the private sector that will contribute to the attainment of the housing goals established for California;
   8. A housing strategy that coordinates the housing assistance and activities of state and local agencies, including the provision of housing assistance for various population groups, including, but not limited to, elderly persons, persons with disabilities, large families, families where a female is the head of household, farmworker households, and other specific population groups identified by HCD;
   9. A review of housing assistance policies, goals, and objectives affecting the homeless;
   10. An inventory of the number of affordable units needed to meet the state’s affordable housing needs for the plan period; and
   11. A housing data strategy. (Health and Safety Code Sections 50420-50426)

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: According to the author, “AB 1508 will ask the California Department of Housing and Community Development (HCD) to include a goal to increase homeownership among first-time home buyers in the Statewide Housing Plan. This legislation is a reasonable and modest step in ensuring that as California invests hundreds of millions of dollars in expanding homeownership for working families, our Statewide Housing Plan reflects and acknowledges both that investment as well as the shared values it represents. By requiring that the goal of increasing first time homeownership be included in the Statewide Housing Plan, AB 1508 does not require any additional state resources. AB 1508 simply asks that the important homeownership work that is already being funded by HCD and other state agencies be accounted for, and that the larger goals and values represented by existing homeownership programs be acknowledged as an important part of the state’s vision for housing in California.

Today, homeownership is the way in which most Americans build and sustain wealth across generations, and this is why the State of California will invest more than $680 million in supporting ownership for working class families in 2023. Unfortunately, while homeownership is often referred to as the American Dream, non-White families in California and throughout the country were excluded from ownership opportunities due to redlining, exclusionary zoning, and other systemic discrimination. Due to these discriminatory factors, people of color face lower rates of homeownership and wealth throughout the country, but especially California. While white families have a homeownership rate of 63%, the Latino and Black homeownership rates are only 44% and 37%, respectively. The racial homeownership gap has led to a staggering racial wealth gap. For every $1 of wealth held by a white family in the United States, Black and Latino families only have on average $0.15.”

Statewide Housing Plan: Every four years, HCD is required to produce a SHP, in coordination with the private sector and state, regional, and local housing and planning agencies. The most recent plan was released in March of 2022. According to the most recent version, “The Statewide Housing Plan lays out a vision to ensure every Californian has a safe, stable, and affordable home. The state is working towards three objectives to achieve this vision:

• Keep Californians in their homes;
• Produce more affordable and climate-smart housing; and
• Continue to act with urgency to address homelessness and housing needs.

“The plan describes why we need to act now to address the state’s housing affordability crisis, what we know about California’s housing crisis, including how we got here and growing challenges, what the housing needs in California are, what our state and local governments are currently doing to address the problem, where we are going in the future, and how we will track our progress.”  

The SHP is required to contain housing goals, policies, and objectives, as well as information regarding the statewide housing development need for the plan period, and recommendations for actions that can be taken to achieve the housing goals, among other criteria. While growth in homeownership opportunities will be indirectly captured in many of these criteria – statewide development need is not subdivided between rental and ownership housing, for instance – there is no specific requirement in the SHP statute for focused analysis of first-time homebuyer opportunities or recommendations for actions that will increase those opportunities. Homeownership is an important mechanism for wealth generation and financial stability, as recent census data shows that homeowner households have a median wealth of $305,000, compared to renter households with a median wealth of just $4,084.^[1] HCD and CalHFA operate several financing programs targeted at homeownership, including the CalHOME program and the California Dream For All program. This bill requires HCD, in conjunction with CalHFA, to include specific analyses and recommendations related to increasing first-time homebuyer opportunities.

Furthermore, racial disparities in access to homeownership continue to be severe. National survey data from the National Association of Realtors found that from Q3 of 2021 to Q3 of 2022, 88 percent of all homebuyers were white, compared to only eight percent Hispanic, three percent Black, and two percent Asian American. The share of homebuyers who were white actually increased six percent from the prior year, while the share of Black and Asian American buyers declined.^[2] The gap in homeownership rates between Black and white households is currently the largest it has been in the past decade.^[3]

Recent data from the initial phase of the California Dream For All program also indicates that nearly two-thirds of initial program participants were white homebuyers, although the program did see more participation from Hispanic/Latino homebuyers (34 percent of participants) than their overall homeownership rate in the state (25 percent of homeowners).^[4] Additionally, census data shows that while white households have a median wealth of $187,300, Hispanic households only have median wealth of $31,700, and Black households of $14,100. These racial disparities stem in part from a long legacy of unequal access to wealth and discrimination in housing in the United States against communities of color, including restrictive racial covenants, the practice of redlining, racially biased home appraisals and lending application denials, and continued patterns of segregation and concentrated poverty.

This bill requires the SHP to include a specific evaluation of demographic disparities in homeownership attainment in California, including race, ethnicity, and a variety of other characteristics that may impact an individual’s ability to purchase a home.

Arguments in Support: According to a coalition of supporters, including UnidosUS and the Asian Business Association of Silicon Valley, “While homeownership is the primary way in which most Americans build wealth and assets, California has the third highest median home price in the country and the high-cost of housing has pushed what was once a modest goal further out of reach. People of color, who make up more than 60% of the state’s population, pay the heaviest price for the broken housing market in California. African American homeownership rates are 26% lower and Latino homeownership rates are 19% lower than white Californians. In the current budget, the State of California will directly invest approximately $680 million in homeownership, both through construction financing as well as mortgage subsidy. HCD will itself oversee $170 million in funding for homeownership through the CalHome and Joe Serna Jr. Farmworker Housing programs. Considering this investment, we believe it is time to have homeownership officially included in the state’s housing plan.”

Arguments in Opposition: None on file.

Related Legislation:

AB 426 (Jackson) of the current legislative session requires the SHP to include a strategy for the state to keep pace with building housing units and affiliated infrastructure during an economic downturn. This bill passed out of this committee on an 8-0 vote and is currently pending before the Assembly Appropriations Committee.

AB 1474 (Reyes) of the current legislative session adds veterans to the list of population groups that HCD must consider in the SHP, and adds the Department of Veterans Affairs (CalVet) to the list of state departments HCD must consult with in development the state’s housing strategy. This bill passed out of this committee on an 8-0 vote and is currently pending before the Assembly Appropriations Committee.

AB 68 (Salas), Chapter 341, Statutes of 2021: Updated the contents of the SHP and expanded the requirements of the annual report produced by HCD.

REGISTERED SUPPORT / OPPOSITION:

Support

California Community Builders (Sponsor)
The Two Hundred for Homeownership (Sponsor)
Asian Business Association of Silicon Valley
Bay Area Council
California Association of Realtors
California Black Chamber of Commerce
California Catholic Conference
California Journal for Filipino Americans
California Community Builders

Casita Coalition
Community Consumer Defense League
Community Housing Opportunities Corporation
Cornerstone Construction
Faith and Community Empowerment
Farmworkers Institute of Education & Leadership Development
Hope Through Housing Foundation
Inland Empire Latino Coalition
Jesse Miranda Center for Hispanic
LISC San Diego
National Diversity Coalition
National Federation of Filipino American Associations
Neighborhood Partnership Housing Services, INC.
New California Coalition
People for Housing - Orange County
San Francisco Bay Area Planning and Urban Research Association (SPUR)
Southern California Black Chamber of Commerce
Southern California Leadership Council
Tentmakers INC
Terrahome
The Unity Council
UnidosUS
Ventura County Community Development Corporation

Opposition

None on file.

Analysis Prepared by: Nicole Restmeyer / H. & C.D. / (916) 319-2085

1. https://www.census.gov/library/stories/2022/08/wealth-inequality-by-household-type.html ↑

2. https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before ↑

3. https://www.nar.realtor/newsroom/more-americans-own-their-homes-but-black-white-homeownership-rate-gap-is-biggest-in-a-decade-nar ↑

4. https://calmatters.org/housing/2023/04/california-first-time-homebuyer-assistance-demographics/ ↑