SF Democrats Vote In Favor of Resolution Criticizing CA Governor Newsom for Proposed $1.2 Billion Cuts to Affordable Housing

PRESS RELEASE for Wednesday, January 24, 2024

San Francisco – This evening, the San Francisco Democratic County Central Committee (SF DCCC) approved a resolution calling on California Governor Gavin Newsom and the State Legislature to restore the more than $1.2 billion for affordable housing programs the Governor proposed to cut from his budget.

The Race & Equity in All Planning Coalition (REP-SF) and the Council of Community Housing Organizations (CCHO) applaud the San Francisco Democratic Party for sending the Governor and our State Legislators a strong message by passing the resolution, urging them to reinstate the proposed budget cuts to affordable housing.

Governor Newsom’s budget represents drastic cuts to solutions for housing affordability and homelessness at a time when California needs a massive increase in funding in order to address the dire lack of affordable housing across the state. In particular, Newsom’s budget cuts to various affordable housing programs would harm several communities, including low-income families, people facing foreclosures, veterans, students, young adults leaving foster care, as well as first-time and low-income homebuyers. The Governor, by making these cuts, is violating the state’s legal obligation to affirmatively further fair housing.

“Governor Gavin Newsom is increasing his national profile and positioning himself as a future Presidential nominee for the Democratic party, yet his severe budget cuts to affordable housing show that he is out of touch with the critical needs of our communities. This raises serious questions about his viability as a potential Presidential candidate. However, San Francisco, Newsom’s home city, is showing our values through our Democratic Party’s resolution, even if Newsom is abandoning them,” says Dyan Ruiz of the Race & Equity in All Planning Coalition (REP-SF).

“If we are not making these critical investments in affordable housing now, we will see the harms to our communities in the future. These budget cuts do not help people in need or support economic opportunity or recovery for the state. We need to recommit to our values of housing as a human right," says SF DCCC Vice Chair Li Miao Lovett.

“San Francisco has a goal to build 57% of our new housing to be affordable to very low, low and moderate incomes, as required by the state. This will be impossible with these budget cuts. Indeed, the opposite approach is necessary with deep investment in affordability,” says John Avalos, former SF Supervisor, current Director of Council of Community Housing Organizations (CCHO) and Committee Member of SF DCCC.

Together our coalitions, REP-SF and CCHO, represent dozens of community-based organizations that have played critical roles for decades in innovating affordable housing, tenants rights, and anti-displacement policies in San Francisco. As coalitions deeply committed to moving forward solutions and investments to address fair housing, racial and social equity, affordability, and displacement, we are deeply concerned that Governor Newsom’s proposed cuts will further exacerbate our housing affordability crisis and negatively impact communities across the state. We are especially concerned about the harmful impacts of these state laws on a local level for historically marginalized communities, including American Indian, Black, and other Communities of color, immigrant, LGBTQ+, low-income and no-income folks, seniors, and people with disabilities – who are already facing the worst impacts of the ongoing housing affordability and homelessness crisis, in San Francisco and across the state. 

The statewide coalition, Housing California, has stated that annual construction of new affordable homes will be eliminated by one third (6,400 affordable homes), resulting in tens of thousands of individuals without homes, lost jobs and economic opportunity, and the loss of $1.6 billion in federal housing resources.

The Governor’s proposal is just the beginning of the state budget process – our State Legislators must finalize a budget that puts affordable housing first.

Some of the Proposed Cuts:

Regional Early Action Planning Grants 2.0 (REAP 2.0): A reversion of $300 million.

Multifamily Housing Program: A reversion of $250 million

Foreclosure Intervention Housing Preservation Program: A reduction of $247.5 million

Infill Infrastructure Grant Program: A reversion of $200 million

CalHome Program: A reversion of $152.5 million

Veteran Housing and Homelessness Prevention Program: A reversion of $50 million

Housing Navigators: A reduction of $13.7 million

California Student Housing Revolving Loan Fund Program: A reduction of $494 million total.