U.S. Rep. Jimmy Panetta (D-Carmel Valley) authored and reintroduced the Housing Access Improvement Act to increase the creation of new affordable housing units in California and around the country by increasing the cap on “Project Based Vouchers” that housing authorities grant from 20% by 50%.
Jimmy Panetta
These vouchers, which subsidize rent for low-income tenants who pay 30% of their income, gives developers a guarantee of a future source of stable income from a development, and can be integral to making possible more affordable housing projects.
The reason for the 20% cap as to encourage mixed-income developments.
Currently, more than 530,000 people in nearly 290,000 households nationwide afford modest housing in the private market thanks to Project Based Vouchers.
Rep. Panetta introduced this legislation alongside Reps. Adam Schiff (CA-30), Zoe Lofgren (CA-18), Ted Lieu (CA-36), Jimmy Gomez (CA-34), Judy Chu (CA-28), Eric Swalwell (CA-14), Linda Sánchez (CA-38), and Salud Carbajal (CA-24).
A project-based voucher allows local housing authorities to assign vouchers to a specific unit in a new housing project guaranteeing availability for low-income individuals and families.
In markets facing a housing shortage, like the 19th Congressional District represented by Panetta, this is one of the only tools housing authorities have to spur the development of new, quality units.
In Panetta’s view, local housing agencies have been held back from using project based vouchers due to the limited amount of such vouchers offered by the federal government.
According to Panetta, setting the cap at 50% would come at no additional cost to taxpayers because the change would allow housing authorities more flexibility with existing resources.
“Lack of affordable housing across California’s 19th Congressional District contributes to its unfortunate distinction as one of the most expensive places in our country for renters,” said Panetta. “We are lifting regulatory burdens that hold back housing authorities from working with developers to guarantee affordable units in new properties.”
Lofgren said, “The Santa Clara County Housing Authority has already successfully used a higher project voucher cap.”
Lieu said, “According to the US Census Bureau, nearly half of American renters spend more than 30% of their income on housing, squeezing their budgets and making it more difficult to pay for other essentials. To bring down housing costs, we must encourage construction of new housing and ensure access to affordable units in every zip code.”
Gomez, who represents Los Angeles, founded the Renters Caucus to fight for housing people can afford and supports this bill to incentivize building more affordable housing.”
Chu said, “In my district, the City of Pasadena has a successful track record of utilizing Project-Based Vouchers to build permanent supportive housing and make certain our neighbors have a stable place to call home.”
Swalwell called the bill “a smart budget-neutral solution that would empower local housing authorities to build more affordable housing where it’s needed most.”