California Budget Proposal Includes $500 Million in LIHTCs, $750 Million for Homekey, Rental Assistance

Monday, January 11, 2021 - 9:30am

California Gov. Gavin Newsom proposes an investment of $8 billion in housing resources as part of his 2021-22 budget proposal. His initial proposed budget includes a third round of $500 million in low-income housing tax credits (LIHTCs); $750 million to extend Homekey, the state’s program to acquire hotels, motels and other facilities to provide permanent housing for people experiencing homelessness; and $2.6 billion in federal COVID-19 relief to state and local jurisdictions for rental assistance. The California budget proposal will be updated in May and must be adopted by the state Legislature before July 1.