A bill introduced in the California State Senate this week would reduce costs for affordable housing projects by shifting reserve funds from individual projects to a pooled reserve operated by the state…
…The bill, sponsored by the California Housing Partnership and Housing California, is expected to be heard in a Senate policy committee in the spring.
“SB 948 will immediately reduce costs while protecting tenants and ensuring long-term solvency of affordable homes,” said Matt Schwartz, president and CEO of the California Housing Partnership. “The creation of a systemwide insurance policy to replace large reserves previously locked into individual properties will effectively repurpose tens of millions of dollars a year to help create more affordable homes.”