California weighs state-backed loans for downtown housing towers

"Gov. Gavin Newsom signed a landmark bill last year to override local zoning authority and allow more density near public transit. It would require California's seven largest and transit-rich cities to map regional transit districts, setting a baseline building height of 150 feet and allowing towers of 450 feet or more on at least one-quarter of the land."

"Authored by Assemblymember Matt Haney, the measure is sponsored by California YIMBY and the State Building and Construction Trades Council of California. Haney framed the bill as both a housing and economic development measure, targeting urban cores still reeling from the pandemic-era shift to remote work."

"A central feature is a Downtown Revitalization Loan Fund to be administered by the California Housing Finance Agency. The revolving fund would provide low-interest loans to qualifying high-rise residential and mixed-use projects that meet state-defined labor and affordability benchmarks."

California lawmakers have passed several bills to address housing affordability by reducing red tape and increasing density near public transit. A significant bill signed by Gov. Gavin Newsom mandates that major cities create transit districts with specific building height requirements. The legislation aims to streamline approvals for projects meeting labor and affordability standards, targeting urban areas affected by remote work. A Downtown Revitalization Loan Fund will support qualifying projects with low-interest loans, promoting job creation and housing development in struggling downtowns.

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