Developers of affordable housing in Southern California are joining the many critics of the state budget deal. KPCC’s Frank Stoltze says that under the spending plan, they could lose an important funding source.
Frank Stoltze: The state budget deal cuts $1.7 billion from community redevelopment agencies around the state. The city of L.A.’s agency would lose $72 million.
Developers use that money to jumpstart affordable housing and other projects, says Paul Zimmerman of the Association of Non-Profit Housers.
Paul Zimmerman: “One local dollar would leverage three, four, five dollars from outside of Los Angeles to help build affordable housing – money from the state, money from the feds, money from private sources. Well, unfortunately, that also works in reverse. The loss of these dollars will have a rippling effect, killing projects, removing two, three, four times that amount that is taken away."
Stoltze:Community redevelopment agency officials from around California warn that the state budget deal could slow or stop a range of projects that provide thousands of jobs.
Backers of the deal say it also allows agencies to collect taxes longer by extending the life of redevelopment areas.