Major change for California housing that will see cheap homes spring up across state

California is overhauling the way it funds affordable housing in a bid to speed up construction, lower costs and get more cheaper homes built across the state.Gov.Gavin Newsom on Monday signed Assembly Bill 179, a budget trailer bill that revamps California’s affordable housing financing system by cutting bureaucracy and simplifying how developers apply for state funding.State officials say the changes will help affordable housing projects move from the drawing board to construction more quickly while making better use of limited public dollars.“We’re streamlining bureaucracy, reorganizing a construct around a simple one-stop application around financing-focusing on real accountability at the local level, driving accountability at the state level with fundamental land use reforms, and time to develop reforms,” Newsom said.The legislation creates what state officials describe as a “one-stop shop” financing system, reducing duplicative reviews and speeding up the approval process for affordable housing developments.It also encourages local governments to reduce development impact fees, which can add tens of thousands of dollars to the cost of building each home.Supporters say those changes could cut construction costs by an estimated $60,000 to $70,000 per affordable housing unit, allowing the same amount of state funding to finance significantly more homes.“We’re going to make it much more easier to build, and we’re going to get the money out the door faster,” said state Sen.

Jesse Arreguín (D-Oakland).The new law also includes a $100 million Disaster Rebuilding Fund to help homeowners rebuild after natural disasters, extends $900 million in homelessness grants for local governments and provides an additional $700 million for affordable multifamily housing through tax credits and housing programs.The measure comes as California continues to grapple with one of the nation’s most expensive housing markets.Years of limited home construction, high...