Still, the loss of redevelopment has left funding holes that haven’t been filled, particularly for low-income housing. Since redevelopment’s dissolution, the state has approved spending from its cap-and-trade environmental program and implemented a new real estate transaction fee to subsidize the development of low-income housing. Those efforts, however, are generating less money than the $1-billion-a-year redevelopment for housing when it was eliminated.
The nonpartisan Legislative Analyst’s Office has estimated that providing subsidized homes just for the 1.7 million low-income California renters who spend more than half their income on housing would cost at least $15 billion a year. The state needs to find new sources of revenue, said Chiu, who is the chairman of the Assembly Housing and Community Development Committee.
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