Governor Newsom fast-tracks 1,700 new affordable housing units

Sacramento, CA

Governor Gavin Newsom today announced a nearly $239 million investment to help bring 20 construction-ready affordable rental housing developments with 1,700 homes to market for Californians. These new projects underwent a streamlined approval process to keep development on track and cut red tape - continuing the state's work to reverse a decades-in-the-making housing shortage, and reverse the nationwide homelessness crisis.

"California is reversing decades of housing inaction by making historic investments to build more homes, faster. Today's announcement will help bring more housing to communities across the state, lower costs, and create greater stability. Working in partnership with the Legislature, we're backing that investment with reforms that cut red tape, expand financing opportunities, and accelerate housing production. Those efforts are delivering results: more housing moving forward, more affordable homes being built, and more Californians gaining access to the stability and shelter they deserve," said Governor Gavin Newsom.

In April, the California Department of Housing and Community Development (HCD) announced a Multifamily Housing Program (MHP) Gap Funding Notice of Funding Availability (NOFA), California's first-ever NOFA focusing on construction funding gaps. The state's nearly $239 million investment supports bringing more multifamily housing to low-income Californians to achieve better outcomes for health, climate, and household stability.

"California can't afford to stall when it comes to ending the state's affordable housing crisis," said California Housing and Homelessness Secretary Tomiquia Moss. "Approving these important funds quickly and efficiently ensures much-needed affordable rental homes across the state can get past the planning phase, start construction, and open their doors to families in need."

New ready-to-build projects were reviewed through a streamlined process, allowing awards to be announced in just four months, providing projects with the momentum and predictability to swiftly move to construction.

The funds were awarded to projects that have not yet received tax-exempt bond financing or low-income tax credits and have a commitment to developing affordable housing for lower income Californians.

"This innovative funding solution directly confronts cost challenges that have stalled critically needed affordable housing communities in California," said HCD Director Gustavo Velasquez. "I am tremendously proud that our team could use the streamlined processes we have developed to make these projects whole so quickly."

An approach that works

In addition to today's announcement, Governor Newsom is creating a structural and foundational model across the state that will have positive impacts for generations to come.

The Governor is streamlining and prioritizing building new housing, funding new shelters, housing, and supports, addressing mental health and its impact on homelessness through voter-approved Proposition 1, and creating new pathways for those who need it most through updated conservatorship laws and a new CARE court system. California is also addressing encampments statewide to help get people off the streets and into care. All this work is creating positive results.

California's investments have created immediate, measurable results and the critical foundation necessary to finally solve California's housing and homelessness crisis. Governor Newsom's policies have had a significant impact:

• Historic drops in homelessness - California achieved the largest statewide reduction in unsheltered homelessness in 16 years. New federal data also shows California last year saw:
  • Largest reduction in unsheltered homelessness in the nation. California reduced unsheltered homelessness by 8,391 people, or 6.8% - more than any other state. That decline is more than twice the national reduction of 2.9% and significantly exceeds that of the next-largest state by population, Texas, which saw a 1.4% decrease.
  • Total homelessness declined. California's overall homeless population dropped by 2.8% - the state's largest numerical decline since 2009.
  • Leading the nation in reducing homelessness in key populations. From 2023 to 2025, California ranked first among all states and the District of Columbia in reducing the numbers of veteran homelessness, chronic homelessness, homelessness among young adults ages 18-24, and homelessness among parents under 25.

In addition, Governor Newsom is addressing a housing shortage that has been decades in the making. Since 2019:

• Building is happening faster - Annual residential construction has increased by 59%, from 70,000 homes built in 2018 to about 111,000 in 2024.
• Multifamily construction has reached its highest level in decades - Over the last five years, more multifamily housing units have been built than in any five-year period in over 30 years, and more than 682,000 homes overall have been built statewide since 2019.
• Approval times have been slashed - Streamlining laws enacted since 2019 have cut average time from development application to entitlement by 57%, from 160 days to 68 days in 2024. The time from entitlement to permit also dropped by 9%.
• Communities are ready to build more - Through Governor Newsom's work to ensure all jurisdictions do their part, communities throughout the state have laid the groundwork and have planned to accommodate at least 3.6 million new homes, including 1.4 million affordable units, moving California closer to meeting its long-term housing needs.

For more information on awards, including a complete list of awardees, please visit HCD online at: https://www.hcd.ca.gov/funding/supernofa