California Secures $16.2 Million HUD Grant for Affordable Housing

California has been awarded $16.2 million from the U.S. Department of Housing and Urban Development's (HUD) Pathways to Removing Obstacles to Housing (PRO Housing) grant, part of an $85 million funding competition aimed at developing affordable housing and reducing regulatory barriers. Senator Alex Padilla announced that this funding will support new affordable housing initiatives and address issues such as outdated regulations, inadequate infrastructure, and limited financing options.

As reported by Xuanjie Coco Huang, the PRO Housing grant, established under the Consolidated Appropriations Act of 2023, will benefit communities in four California jurisdictions: Los Angeles County, which will receive $6.7 million, the Metropolitan Transportation Commission of the Bay Area with $5 million, Anaheim with $3.5 million, and Arcata with $1 million.

Los Angeles County plans to use the funds to support housing goals in unincorporated areas, modernize sewer and transportation infrastructure, and facilitate construction near major public transit hubs. Unincorporated areas comprise about 64% of the land area in L.A. County. The County’s goal is to update their local land use policies and processes to accommodate over 56,000 units of housing. The County plans to conduct assessments to understand needs and identify opportunities to improve land use policies, enable the construction of duplexes, triplexes, and fourplexes, and modernize regulations and definitions to ensure equitable housing opportunities.  

Senator Padilla emphasized that the grant aims to examine and rectify historical housing inequities, expanding access to home loans in marginalized communities. This initial grant is part of a broader initiative, with HUD planning to release an additional $100 million in funding later this year for a second-round competition to further support affordable housing efforts across the state.