Assemblymember Caballero Introduces the California Middle Class Affordable Housing and Homeless Shelter Act of 2018
SACRAMENTO – Assemblymember Anna M. Caballero (D-Salinas) today introduced legislation to address the state’s growing housing supply and affordability crisis. The measure, called the California Middle Class Affordable Housing and Homeless Shelter Act of 2018 (ACA 11), would deliver needed resources to provide homeownership assistance for first-time homebuyers, affordable rents for families from middle to very-low income households, and housing and shelter for homeless individuals. To fund this act, the bill would impose a statewide quarter cent sales tax beginning on January 1, 2019.
ACA 11 requires a two-thirds vote from both houses in the legislature. If passed, the legislature would place a quarter cent sales tax proposal on the November 2018 ballot for voter approval. This initiative is expected to generate over one billion in annual revenue and would provide a significant and reliable source of funding that would expand the availability of affordable housing for many Californians. The availability of affordable housing for middle class and lower income households as well as inadequate housing and shelter options for homeless individuals are of vital statewide importance.
According to a McKinsey Report, between 2009 to 2014 California’s home market prices increased by more than 15%, while the median income increased by only 5%. The report also states that in order to meet California’s housing deficit, the state has to build at least two million units. The lack of an adequate housing supply and rising costs limits opportunities for younger Californians to achieve homeownership, and limits employers' ability to attract and retain employers. “Today, more people are renting instead of buying homes. About half of all renters spend more than 30% of their income on housing, and about half of those households spend more than 50% of their paycheck on rent and utilities,” said Caballero. California currently loses billions of dollars to this housing shortage: the state looses construction contracts and foregoes consumption of goods and services because most of the state's money goes to rents and mortgages.
“I am authoring this measure because it is time we stop talking about the state’s affordable housing challenges and provide California voters with an opportunity to decide the state’s future. We are making housing a priority in our state and ensuring affordable housing options are available to disabled individuals, farmworkers, seniors, school and public safety employees, veterans, and our homeless,” said Caballero. “I look forward to working with my colleagues to develop a proposal that will earn the support and confidence of California’s voters, and adequately address the issues of affordable housing in our state.”
Assemblymember Anna M. Caballero is the Chair of the Agriculture committee, of the California State Assembly. She represents the 30th District, composed of the Salinas Valley, parts of Monterey and San Benito counties, South Santa Clara County, and the city of Watsonville.