Patch
By Eric He
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.
Senate Bill 948, introduced by state Sen. Josh Becker (D-Menlo Park), would shift responsibility for so-called "transition reserves" — which have not been used much for projects funded by the Department of Housing and Community Development — from individual projects to the state.
Currently, affordable housing developments in the state must hold a portion of total project costs — ranging from a few hundred thousand dollars to several million dollars — in a reserve fund as a backstop in case subsidies expire.