Funds new units across California

By Cameron Niven, Communications Director, Office of Congressman John Garamendi

WASHINGTON, DC – Today, U.S. Representative John Garamendi (D-CA-08) issued the following statement after the Senate passage of the bipartisan 21st Century ROAD to Housing Act, which includes his HOME Investment Partnerships Reauthorization and Improvement Act—a bill to significantly increase the amount of federal funding available for affordable housing across the country:

“Hardworking Californians face a severe shortage of affordable housing options, and minimum wage workers must work an average of 88 hours per week to afford a modest one-bedroom rental at fair market rates. The HOME Act will help change that,” said Representative Garamendi.

“The Senate’s affordable housing legislation includes my HOME Investment Partnerships Program, which, for the first time since 1994, will bring this crucial program into the 21st century,” Garamendi continued. “It will provide states and local governments with the funding needed to construct and rehabilitate affordable rental housing, as well as expand homeownership opportunities for working families. I’d also like to thank Senator Masto for introducing this bill in the Senate and Representative Beatty for co-leading in the House.”

On February 9th, Garamendi voted in favor of the Housing for the 21st Century Act (H.R. 6644), which passed the House with strong bipartisan support. Then, on March 12, the Senate overwhelmingly passed the 21st Century ROAD to Housing Act. The bipartisan bill combines elements of both the House and Senate-passed legislation. The 21st Century ROAD to Housing Act includes 18 sections drawn from both the House and Senate bills, including Garamendi’s HOME Act.

This comprehensive housing package will take important steps to boost the nation’s housing supply, improve affordability, and increase oversight and efficiency of federal regulators and housing programs.

HOME Background

The HOME Investment Partnerships Program (HOME) is the largest federal affordable housing block grant and is HUD’s flagship affordable housing production program.

Since 1990, HOME has helped state and local housing agencies support a wide variety of housing needs, from financing new construction and home repairs to funding down payment and rental assistance. It also provides additional funding to housing developments financed by the Low-Income Housing Tax Credit, helping the program serve more extremely low-income people, including seniors, veterans, those experiencing homelessness, and people with disabilities.

Since 1992, the HOME program in California has:

• Invested $5.27 billion into housing across the state;
• Built or preserved 121,727 homes;
• Given rental assistance to 43,840 families;
• Supported 277,318 jobs; and
• Generated $19.2 billion in local income.

The program was last re-authorized in 1994 and needs critical updates to better address today’s housing crisis. Garamendi’s HOME Investment Partnerships Reauthorization and Improvement Act would reauthorize the HOME program and make several much-needed improvements. Specifically, it would:

• Authorize $5 billion in HOME funding for fiscal year 2024 and boost the funding for the program by five percent annually through 2028. Garamendi’s legislation would address chronic underfunding of the affordable housing investment program, which received only $1.5 billion in 2023;
• Improve HOME’s ability to provide downpayment assistance to homebuyers and home repair assistance to homeowners;
• Enable HOME funds to support Community Land Trusts and other shared equity homeownership programs; and
• Increase access to HOME funds for nonprofits and provide state and local governments loan guarantee options that would allow them to leverage their future HOME funds for investments today.

Representative Garamendi has spent his entire career advocating for affordable housing, robust homeowner protections, and rental assistance programs. As California’s first-ever elected Insurance Commissioner, Garamendi successfully implemented Proposition 103, which reformed the homeowner insurance industry and lowered homeownership insurance rates.

In 2023, Garamendi and Rep. Zoe Lofgren (D-CA) led members of California’s congressional delegation in sending a letter to California Insurance Commissioner Ricardo Lara urging him to use his power under state law to protect homeowners in the face of an insurance crisis. During his congressional tenure, Garamendi worked with Habitat for Humanity to establish a financing mechanism that utilized existing funding to build new veteran housing units.

Garamendi originally introduced the HOME Investment Partnership Reauthorization Act in 2020 and has continued to champion the legislation in Congress. He is also a cosponsor of the Affordable Housing Credit Improvement Act, which would support the financing of more affordable housing by expanding and strengthening the Low-Income Housing Tax Credit.

The Office of Congressman John Garamendi has also worked with local partners to increase access and support the development of affordable housing projects throughout California’s 8th Congressional District including: Contra Costa County Board of Supervisors, East Bay Housing Organizations, Tiny Village Spirit, Eden Housing, Multi-Faith ACTION Coalition (MFAC), Hope Solutions, Interfaith Council of Contra Costa, Crankstart Foundation, and the California Association of Housing Authorities.

The bill is endorsed by: Hercules Vice Mayor Alexander Walker-Griffin, Hercules Council Member Dilli Bhattarai, Richmond City Council Member Cesar Zapeda, National Council of State Housing Agencies, Institute of Real Estate Management, National Association of Hispanic Real Estate Professionals, National Association of Realtors, Enterprise Community Partners, National Apartment Association, National Multifamily Housing Council, National NeighborWorks Association, National Community Development Association, National Alliance of Community Economic Development Associations, National Association of Local Housing Finance Agencies, Council of State Community Development Agencies, National Coalition for Asian Pacific American Community Development, Local Initiatives Support Corporation, Grounded Solutions Network, and Habitat for Humanity.

Garamendi represents California’s 8th Congressional District in the U.S. House of Representatives which includes the northern and western portions of Contra Costa County and a majority of Solano County.