As of the end of 2024, Enterprise\u2019s research found that 44,723 new affordable homes are in the near-construction pipeline and awaiting final funding. About 70% of the developments have applied to and secured some state funding, demonstrating the significant amount of time and resources already invested.<\/p>\n\n\n\n
Furthermore, about 64% of the projects have already applied for Low-Income Tax Credits (LIHTC), and if they receive funding in the next round of awards, they would likely start construction within six months. These developments would serve an estimated 491,953 households over the next 55 years.<\/p>\n\n\n\n
\u201cTo solve California\u2019s affordable housing crisis, we need to unlock the development pipeline and scale funding to meet the need. Only then can we even begin to ensure every Californian has a safe and stable affordable place to call home,\u201d said Heather Hood, Enterprise VP and Northern California market leader. \u201cOur research demonstrates that California has invested significant time, energy, and resources into making affordable housing possible. I am confident that through prioritizing resources and strategies to prevent further delays, we can finish the job.\u201d<\/p>\n\n\n\n
\u201cAs Los Angeles recovers from the devastating wildfires from earlier this year, it is critical to provide the resources required to unlock the developments in the pipeline. The wildfires have exacerbated the housing crisis, further straining our limited housing stock,\u201d said Jimar Wilson, Enterprise VP and Southern California market leader. \u201cCommunities across Southern California have experienced immense loss, and one of the most important ways California can respond now is through securing the funding required to build and preserve affordable housing.\u201d<\/p>\n\n\n\n
The research found that to unlock the pipeline and move this housing forward, there is an estimated need for $1.79 billion in state subsidies and $574 million in state tax credits. Every dollar the state invests in affordable housing can leverage significant amounts of federal and private dollars. On average, the state contributes $167,328 in subsidies to each affordable home it funds. For every $1 of state funds invested in developments, $4 of private and federal funds are leveraged.<\/p>\n\n\n\n
Enterprise\u2019s report comes at a time when the Governor\u2019s January Budget Proposal for 2025-2026<\/a> did not include funding for any of the state\u2019s critical homelessness, affordable housing, and affordable homeownership programs. Without access to resources, California\u2019s affordable housing pipeline will stall, undermining existing investments, and leaving more Californians without access to safe, affordable homes.<\/p>\n\n\n\n A statewide coalition of affordable housing, homelessness, and housing justice organizations has urged<\/a> the Governor and the Legislature to scale affordable housing and homelessness investments to a minimum of $2.9 billion, only about 1% of the Governor\u2019s proposed $229 billion general fund spending plan.<\/p>\n\n\n\n The report highlights three critical opportunities to secure much-needed resources to unlock the existing California housing pipeline.<\/p>\n\n\n\n Invest in ongoing state funding<\/strong><\/p>\n\n\n\nSecuring Needed Resources<\/h3>\n\n\n\n