Report: California Needs 1 Million More Affordable Housing

I’m CalMatters reporter Marissa Kendall, filling in for Lynn today.

It is common knowledge that there is a severe shortage of affordable housing in California, which contributes to high rates of housing instability and homelessness. But how many more low-income homes do we need?

Nearly 1 million, according to a new report from the National Low Income Housing Coalition. California has only 25 available and affordable rental units for every 100 households that are considered “extremely low income” (meaning they make 30% or less of the area median income).

No state in the country has enough affordable housing, but California is one of the worst: Only Oregon and Nevada have fewer available homes per household.

At the same time, most of California’s extremely low-income households spend more than half of their income on rent, putting them at greater risk of homelessness.

• Renee Willis, president and CEO of NLIHC, in a news release: “When renters are burdened by housing costs, they cannot afford to cover other basic needs such as food, healthcare, transportation or childcare.”

The findings did not differ much from last year’s report, indicating that despite ongoing efforts in the legislature to build more housing, California has not made noticeable progress for the lowest-income renters.

Part of the problem may be a lack of funding. As my colleague Ben Christopher recently reportednearly 40,000 affordable units across the state are just waiting to be built—if only they had the money.

New account would allow all income-eligible Californians to access Medi-Cal, regardless of their citizenship status.

Gov. Gavin Newsom gradually expanded access to Medi-Cal (California’s Medicaid system) for undocumented immigrants, but as costs rose, he partially reversed course with last year’s budget. If passed, Senate Bill 1422 would reverse many of these cuts and ensure that all immigrant adults age 19 and older can enroll.

• Democratic Senator Maria Elena Durazo from Los Angeles: “We are no healthier as a community than the people who have the least access to care.”

Durazo argued that undocumented immigrants pay billions in taxes each year, and many of them are now unable to benefit from programs supported by those dollars.

Whether Newsom will sign her legislation is unclear, but it seems unlikely as the state struggles with a fourth straight year of deficits.

Read on full story.

Some Californians facing recent insurance hikes will get refunds under a new proposed settlement with State Farm. Others would be protected from further increases in their premiums.

State Farm, the state’s largest insurer, raised rates after wildfires in Los Angeles County last year forced it to pay billions of dollars in claims. The consumer advocacy group Consumer Watchdog questioned those increases, and after months of public hearings, a proposed settlement was reached between Consumer Watchdog, State Farm and the state Department of Insurance.

Overall, the settlement will save California policyholders $530 million, according to Consumer Watchdog.

In addition to the cost savings, State Farm has agreed not to cancel any new policies this year.

Read more here.