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California’s State Government Takes Action By Adding New Housing Program

AB 69 Introduces Accessory Dwelling Unit Financing To Repair Housing Crisis
September 28, 2020 12:44pm
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California is home to a population of approximately 40 million residents. California has a lot to offer, national parks like Redwood, Sequoia, Joshua Tree, and top tourist attractions like Disneyland, Catalina Island, Big Sur, the Golden Gate Bridge, Seaworld San Diego, and Univeral Studios Hollywood. Despite the state’s beauty, California is in a current housing crisis. 

The State’s Cost Of Living

The root of the California housing crisis comes after a rise in the average cost for a home. Today, the average cost for a home in California is $440,000, twice as high as the current national average of $180,000. The average price for rent in California is about $1,240 and ranks 50 times higher than the current national average. 

It’s fair to say that the rising cost of living has been the leading cause of this crisis. According to a recent study led by economic professor William Yu from the University of California, Los Angeles, the cost of living is increasing because of a shortage of housing:

“Housing prices have skyrocketed in California partly because there is a major shortage of homes within the state. Although California needs to build 180,000 additional housing units annually to keep up with projected household growth, the state has averaged less than half of that over the past decade. Due to this shortage, California’s homeownership rate has declined to its lowest rate since the 1940s. Today, 54.1 percent of Californians own their homes.”

- William Yu

A lack of housing and an overpopulated state is contributing to the crisis more and more every day. In 2019, the United States Census reported that approximately 40,000 people were living in California. Today about 1 million Californians remain without a home.

Local Government Takes Action

On December 3rd, 2018, the local government introduced bill AB 69 in response to the housing crisis. Bill AB 69 amended in assembly on March 27th, 2019. This bill helps current and future homeowners by creating a new housing program. This new housing program allows homeowners to build an ADU (Accessory Dwelling Unit) with a private lender's financial assistance. With the local government's support, homeowners can apply for financial aid with the California Housing Finance Fund's help.

One of the many positives of AB 69 is that homeowners will be able to generate income from their ADU because it qualifies to serve as a housing unit for California residents. Homeowners, construction companies, the real estate industry, and low-income families are thankful for AB 69's new housing opportunity. May this new wave of affordable housing benefit all California residents during these difficult economic times. In California, ADU’s enable homeowners to generate additional income, rent affordable housing units to community members, keep their elderly family members close, and create extra living space on their property.

 

An ADU can be constructed in various styles, from a studio to a loft, stand-alone, over the garage, or a garage conversion. All structure variations provide new housing. It is time we, the people of California, support our neighbor, invest in our community, property, and transform this crisis into a surge of new housing opportunities.

To learn more about the benefits of investing in an ADU visit our website at https://gomultitaskr.com/construction/adus-granny-flats-services 

Nicole Buddie
Copywriter