June 2022

Information Bulletins

Division of Codes & Standards

Information Bulletins are periodically issued by HCD to announce changes in law or regulations, or to provide clarification on Division-related topics. Due to the date of release, some links, fees, and contact information in the Information Bulletins below may be out-of-date.

Veterans

Veterans

California is home to the largest veteran population in the nation. Unfortunately, many of them experience homelessness on any given night. Homeless veterans are overrepresented in the homeless population and veteran status is associated with a higher risk of homelessness.

Finding affordable homes can be extremely difficult for veterans, especially they have experienced post-traumatic stress disorder, have suffered from a traumatic brain injury, or live with mental-health issues. Remaining stably housed can be even more difficult. Oftentimes veterans need additional support (for example mental-health services) in order to live stable, healthy lives.

In addition to policy work on veterans' housing and homelessness, HCD administers the following programs:

People with Disabilities

People with Disabilities

The availability of affordable homes is an important part of addressing California’s housing needs, but many households bear additional challenges. According the U.S. Census Bureau, over four million Californians have a disability. Health and safety are directly linked to housing, and yet, many people with disabilities face enormous barriers in finding suitable housing to accommodate their needs.

Persons with disabilities are a protected class under state and federal fair housing laws, making intentional housing discrimination against them illegal; however, existing policies, practices, or procedures adversely affect the availability of housing to people with disabilities. In the Final 2020 Analysis of Impediments to Fair Housing Choice (PDF), stakeholders identified a general lack of compliant and accessible units, coupled with inadequate zoning laws, market forces, and community pushback against the construction or preservation of existing accessible units, that create additional barriers to housing choice for people with disabilities. Affirmatively furthering fair housing means creating integrated, community-based housing options for all Californians.

People with disabilities experience disproportionate rates of poverty. And, it’s important to note that there are higher rates of disability amongst communities of color. People with disabilities are the most likely population to experience homelessness, be rent burdened or unable to afford housing, and face the highest rates of housing discrimination. For example, studies show that persons with disabilities are more likely to experience discrimination when seeking housing compared to other protected classes. In California, 54 percent of the discrimination complaints received by the U.S Department of Housing and Urban Development were related to disability status.

The State of California defines disability as a physical or mental impairment that “limits a major life activity” (Government Code Section 12926-12926.1). This segment of the population needs affordable, conveniently located, and accessible housing, which can be adapted to accommodate the limitations of a specific disability. Within California’s population of persons with disabilities ambulatory disabilities are most prevalent, and are present in roughly 5.8 percent of the population, (nearly 2 million people), followed by those with independent living difficulties, which affect 4.3 percent of the state’s population (almost 1.5 million people).

Many individuals with ambulatory, self-care, or independent living difficulties are able to live independently with appropriate supports in place. These supports include caregivers or In-Home Supportive Services (IHSS). Many seniors, for example, are able to continue living independently as they age and avoid institutionalization by making physical modifications to their homes or obtaining supportive services. Persons with disabilities in rural areas may face additional challenges in finding housing that is affordable, accessible, and near supportive services, such as transit and hospitals, which tend to be less prevalent and accessible in more rural areas of the state. The need for more services and housing options to accommodate the accessibility of persons with a variety of disability types will continue to increase with the aging population in the state.

Lower-income households are more likely to include members with disabilities than higher-income households. Extremely low-income households are more than twice as likely to include an individual with a disability than households earning above moderate income. This is due in part to the challenges individuals with disabilities face in finding work. Specifically,12.8 percent of income eligible households include someone with a hearing or visual impairment. Additionally, 17.9 percent of income eligible households include someone with an ambulatory limitation. Given the challenges that low and moderate-income households of all types face in maintaining adequate housing, it is not unreasonable to assume that almost all low and moderate-income households with members with a disability need of housing assistance, at the very least to find an affordable unit that meets their needs.

In addition to policy work on housing for people with disabilities, HCD administers the following programs:

Learn more about the housing needs of people with disabilities in HCD’s Final 2020 Analysis of Impediments to Fair Housing Choice (PDF).

People Experiencing Homelessness

People Experiencing Homelessness

On a single night in 2016, more than 118,000 people experienced homelessness in California — 22 percent of the entire nation’s homeless population.

California also has the highest number of unaccompanied youth, veterans and chronically homeless in the United States, with nearly one-third of the nation’s youth, nearly one-fourth of the nation’s homeless veterans, and more than one-third of the nation’s chronically homeless residents. Most of California’s homeless population resides in major metropolitan areas; however, homelessness impacts communities of all sizes and people experience homelessness throughout all regions of the state.

The availability of affordable homes is an important part of addressing California’s housing needs, but many households bear additional challenges.  For example, a person exiting homelessness may not have the credit or rental history required to rent an apartment, even if they have financial assistance, or they may need a variety of services to help them transition and stabilize. 

Even with federal Housing Choice Vouchers that assist with rent, many households are still unable to find affordable homes. In many high-cost markets, the amount of rent a federal Housing Choice Vouchers will cover is capped based on the Federal Housing and Urban Development (HUD) Fair Market Rent, which can fall significantly below the market rent. This, combined with too few available rentals and landlords who are unwilling to accept vouchers at all is exacerbating the problem

In addition to policy work on homelessness, HCD administers the following programs:

Following two-and-a half years of work, in 2016, HCD released a redesigned state Emergency Solutions Grant program (ESG). The updated program better aligns with the federal Homeless Emergency Assistance and Transition to Housing Act and increases coordination of state investment, federal investment, and local systems that address homelessness. HCD shared the redesigned program's changes via roundtable meetings with regional bodies that coordinate homelessness efforts (continuums of care) and webinars. HCD prepared the 2016 ESG application and rating tool for scoring the applications. In May 2016, HCD released an ESG NOFA for approximately $20 million, and subsequently, made awards in September 2016 (FY 2016-17). 

Farmworker Housing

Farmworker Housing

California is the largest producer of agricultural goods in the country and is one of the largest agricultural producing regions in the world. Farmworkers play a key role in the operation and delivery of the state’s food system. Despite this, farmworkers face a number of economic disadvantages compared to California’s population as a whole.

Farmworkers tend to have low incomes; higher risk of living in poverty; and limited access to safe, healthy, and affordable housing choices. Farmworker analysis and related programs are a required part of local housing planning (housing elements) for regions with a farmworker presence.

To further understand farmworker housing needs, HCD launched a statewide study on December 1, 2023, under AB 1654 (Rivas, 2022). The study includes a demographic survey and an analysis of farmworker households. The goal is to provide data to inform policy and housing development decisions to improve farmworker living conditions and increase availability of affordable farmworker housing in California. Findings from the report will help to inform a comprehensive strategy for farmworker housing.

For more information on the study, please email CAFarmworkerHousingStudy@hcd.ca.gov.

In addition to policy work on farmworker housing, HCD administers many services to California’s farmworkers including the following programs which focus specifically on the farmworker population: 

Recent efforts to support the OMS program include:

Office of Migrant Services – Migrant Farmworker Center Improvements: In an effort to preserve vital migrant farmworker housing resources, California’s 2021-22 Budget Act provided $30 million in General Fund appropriation for critical and deferred maintenance projects at the OMS centers.

Office of Migrant Services – Water Conservation Grant: As part of the Drought State of Emergency declared January 17, 2014, Governor Brown charged the California Department of General Services (DGS) with "immediate implementation of water reduction plans for all state facilities." DGS made $513,155 available for OMS centers as part of an interagency agreement with HCD. HCD subsequently increased each OMS center's operating budget to fund water improvements such as water-efficient showerheads and toilets.

Housing and Climate Change

Housing and Climate Change

The further people live from their jobs, schools, and services, the longer they spend commuting in cars, which creates more greenhouse gas emissions.

When people have affordable options for housing close to where they work, they can spend less time commuting and reduce their greenhouse gas emissions. Another effective way to reduce greenhouse gas emissions is to build affordable places to live close to public transit options

View the California Department of Housing and Community Development's Housing and Climate Change policy brief (PDF) (2013).

In addition to policy work on housing and climate change, HCD implements the following programs:

Housing and Transportation

Housing and Transportation

After housing, transportation is the second-largest household expense, so any conversation about housing affordability must examine transportation costs.

As housing affordability becomes more problematic, many people are forced to move further and further away from job centers and “over-commute” as a result. In California's rural areas, high transportation costs often negate the relatively more-affordable housing. This combined “housing + transportation” cost can leave residents in rural and suburban communities with a cost-of-living comparable to their urban counterparts.

Over-Commuting

People who live near transit and job centers drive less, particularly lower income residents. More recently, however, those areas have become less and less affordable. Housing near transit is in high demand, and rents and property values near transit are 10 to 20 percent higher on average than similar homes further from transit. Modeling and analysis by the Legislative Analyst’s Office suggest “California’s high housing costs cause workers to live further from where they work, likely because reasonably priced housing options are unavailable in locations nearer to where they work.” When households move further from job- and transit-rich areas to find more affordable homes, they encounter higher transportation costs and longer commutes. Beyond the quality of life consequences for individual households, longer commutes also increase greenhouse gas emissions and decrease productivity.

Housing and Transportation Affordability

The Center for Neighborhood Technology developed a Housing and Transportation Affordability Index (H+T Index) that is widely used to examine housing and transportation costs.

Travel demands are determined by where people choose to live. However, that choice is greatly shaped by affordability. Then the proximity of jobs and services, density, and the availability of public transit affect transportation costs. For example, based on those factors, a household may decide that car ownership is necessary for access to jobs, schools, medical facilities, etc. In certain communities, higher housing costs can be mitigated by lower transportation costs (if less automobile travel is required). Conversely, a household seeking more affordable housing may end up further from jobs and services, resulting in increased housing and transportation costs.

Unlike housing affordability, which is widely accepted as paying no more than 30 percent of income toward housing, there is no official affordability definition for housing and transportation costs combined. However, there are discussions about defining a combined affordability threshold at 50 percent of income.

Intersectional Policy Work

Intersectional Policy Work

The California Department of Housing and Community Development's (HCD's) policy work is built on the notion that housing is the foundation for life and opportunity. Housing affordability and homelessness have far-reaching impacts that affect other important issues facing Californians, including health, education, transportation, economic well-being, and climate change.

Housing programs (administered by HCD and other California departments and agencies) are increasingly viewed as a platform to achieve multiple policy goals; for example, the Veterans Housing and Homelessness Prevention program connects the needs of veterans and people experiencing homelessness. Providing homes and supportive services for people who experienced homelessness has been shown to improve health outcomes while also reducing local and state healthcare spending.

Another example is the Regional Early Action Planning Grants Program of 2021, which connects housing with environmental and transportation goals. Increased collaborations across these issues to share knowledge and leverage resources can improve housing programs while addressing multiple state policy objectives.

Focusing on People, Place, and Funding

Much of HCD's policy work focuses on people, place, and funding.

People

Addressing housing and access needs for vulnerable populations through thoughtful coordination, housing program design, and evaluation

While millions of Californians struggle to find an affordable place to live, HCD's policy work pays particular attention to specific populations that face additional challenges in finding affordable homes, including:

Related policy issues include:

Place

Strengthening land use policies to advance affordability, sustainability, and equity

Land use policies and planning are more than just tools to increase housing affordability. These processes also drive the type and location of housing, which can translate into the ability for families to access neighborhoods of opportunity, where children can attend higher-performing schools, where there is a greater availability of jobs that afford entry to the middle-class, and where people have convenient access to transit and services.

As California prioritizes equity and reducing greenhouse gases, the focus has turned to more compact development that reduces sprawl (and many of its negative environmental and health consequences); however, targeting development to specific areas can put pressure on limited land and result in higher costs for a variety of reasons (infrastructure limitations, demand for limited land, etc.). The true costs of sprawl are much higher when taking into account health impacts, environmental damage, and lost productivity, but these costs are often “hidden” from housing prices.

Accessory Dwelling Units

HCD provides technical guidance to cities with sample ordinances and other resources and guidance. View more on our Accessory Dwelling Units page.

Funding

Effectively administering public funds (federal and state) in affordable-home development and rehabilitation, rental and homeownership assistance, and community development.

California needs both public and private investment, as well as land use solutions to address critical housing challenges and ensure access to jobs in neighborhoods of opportunity for those living here today and the generations to follow. Land-use regulations can be modified to increase housing supply; encourage development of more affordable housing; and prime the housing market to build a variety of housing types located near jobs, transportation, high-performing schools, hospitals, and other services.

However, even with drastic changes in land-use policy to increase supply, a large number of Californians will always remain priced out of both the ownership and rental housing market. Public investment in housing programs will remain necessary to meet the needs of those who struggle the most to keep roofs over their heads.

HCD administers both federal and state housing funds through its Grants and Funding programs.

Addressing a Variety of Housing Challenges

Addressing a Variety of Housing Challenges

The policies HCD creates are in response to California's current housing challenges.

Those challenges include:

  • Not enough housing being built: During the last ten years, housing production averaged fewer than 80,000 new homes each year, and ongoing production continues to fall far below the projected need of 180,000 additional homes annually.
  • Increased inequality and lack of opportunities: Lack of supply and rising costs are compounding growing inequality and limiting advancement opportunities for younger Californians. Without intervention, much of the new housing growth is expected to be focused in areas where fewer jobs are available to the families that live there.
  • Too much of people's incomes going toward rent: The majority of Californian renters — more than 3 million households — pay more than 30 percent of their income toward rent, and nearly one-third — more than 1.5 million households — pay more than 50 percent of their income toward rent.
  • Fewer people becoming homeowners: Overall homeownership rates are at their lowest since the 1940s.
  • Disproportionate number of Californians experiencing homelessness: California is home to 12 percent of the nation’s population, but a disproportionate 22 percent of the nation’s homeless population.
  • Many people facing multiple, seemingly insurmountable barriers — beyond just cost — in trying to find an affordable place to live: For California’s vulnerable populations, discrimination and inadequate accommodations for people with disabilities are worsening housing cost and affordability challenges.

While the state's housing challenges appear overwhelming, California's housing crisis is a solvable issue. With focus and continued support, California can begin to reverse the course.

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