2,483 sustainable homes, and infrastructure, created through state cap-and-trade funds
What you need to know: Governor Newsom announced that 24 projects in 20 California communities will receive more than $789 million in cap-and-trade funds to build housing and sustainable projects, such as public transit, and bike and walking paths. The funding is provided through the state’s Affordable Housing and Sustainable Communities program.
August 23, 2024 - SACRAMENTO — Continuing the state’s unprecedented support for local communities in creating new housing, Governor Gavin Newsom today announced the state is 
awarding nearly $789.8 million in cap-and-trade funds for 24 projects throughout California to create thousands of affordable homes, and infrastructure improvement projects such as bikeways, zero-emission public transit, and pedestrian walkways.
“We cannot solve the homelessness crisis without creating new affordable homes. Today, we’re reinvesting more than three-quarters of a billion dollars generated through cap-and-trade funding to build thriving and affordable communities for California families. By creating livable communities with sustainable transportation options, we can meet both our state’s climate targets and our goal of providing affordable housing for every Californian.”
Governor Gavin Newsom
The funding will build 2,483 new, rent-restricted homes as part of 24 different affordable housing projects, with more than two-thirds of homes dedicated to lower-income communities.
Projects receiving these awards are located in 20 communities across the state including the cities of Berkeley, El Cerrito, Healdsburg, Hemet, Inglewood, King City, Livingston, Long Beach, Los Angeles, Oakland, Oceanside, Oxnard, Red Bluff, Sacramento, San Bernardino, San Diego, San Francisco, San Jose, Walnut Creek, and the county of Los Angeles.
The funding is the eighth and third-largest round of grant awards for the Affordable Housing and Sustainable Communities (AHSC) program, which funds housing and transportation projects close to jobs, schools, and other daily destinations to help reduce greenhouse gas emissions (GHG) in the state. Through all eight rounds, AHSC investments will total $3.8 billion.
“These investments not only address the urgent need for affordable housing that is integrated with critical infrastructure in a holistic approach to development. but also contribute significantly to our fight against climate change by reducing greenhouse gas emissions in our most vulnerable communities,” said Governor’s Office of Land Use and Climate Innovation Director Sam Assefa. “By integrating sustainable transportation with affordable housing, we are creating healthier, more resilient neighborhoods where all Californians can thrive.”
In addition to creating housing, these 24 projects will also support the purchase of 52 new zero-emission transit vehicles, installation of approximately 100 new bus shelters, construction of approximately 60 miles of bikeways, as well as repair and construction of more than 60 miles of sidewalks to create safe, accessible walkways.
The AHSC Program is administered by SGC and implemented by the California Department of Housing and Community Development. It is part of California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing GHG emissions, strengthening the economy, and improving public health and the environment–particularly in disadvantaged communities. The Cap-and-Trade program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution. California Climate Investments projects include affordable housing, renewable energy, public transportation, zero-emission vehicles, environmental restoration, more sustainable agriculture, recycling, and much more.
Creating affordable housing for all Californians
Since taking office, Governor Newsom has invested over $40 billion to boost affordable housing, and additionally, more than $27 billion to address homelessness. Today’s funding announcement follows Governor Newsom’s recent executive order that, among other things, urges local governments to use the unprecedented state funding to address unsanitary and dangerous encampments within their communities and provide people experiencing homelessness with the care and supportive services they need.
He has also enacted dozens of CEQA reforms into law. In addition, Governor Newsom championed the creation of the Housing Accountability Unit at the California Department of Housing and Community Development to make sure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. This focus on accountability has in part led to a 15-year high in housing starts in California.
Learn about the AHSC program ➡️
Source: Office of the Governor
