State Programs for Housing Aid

In response to “Feinstein: The Democratic Candidate Appeals to Young Californians Who Want to Own Homes,” Sept. 14:

As the Director of the California Department of Housing and Community Development (HCD), I am compelled to correct an inaccurate statement made by gubernatorial candidate Dianne Feinstein.

Referencing the $600-million affordable housing bond funds approved by voters in 1988 and 1990, Feinstein stated that 90% of the money has not been spent. That is false. To date, $177 million, or 29.5%, has been committed. If the calculation is adjusted so that the $150 million approved just last June is not included, the percentage committed increases to 39.3%.

In the same article Feinstein is reported to have said that California had suffered under eight years of Republican neglect of the housing issue. An examination of the record indicates otherwise.

The first two bond measures approved in 1988, Props. 77 and 84, created major, new or substantially modified programs. Now that the apparatus to effectively administer these programs has been put into place, HCD is poised to move rapidly to implement our housing programs.

Gov. Deukmejian’s commitment to creating housing opportunities has resulted in increased services and funding for programs aimed at low- and moderate-income people. The governor sponsored and signed legislation that authorized the state to allocate tax credits to investors who construct, acquire and/or rehabilitate low-income housing; approximately $35 million in state tax credits are allocated annually. He sponsored next November’s ballot initiative that will expand the first-time home buyer program that has funded nearly 30,000 loans using a total of $2.2 billion in bond funds since 1983. Legislative measures signed by the governor placing bond initiatives before the voters in 1988 and 1990 provide $600 million to construct or rehabilitate affordable housing and to meet other low-income special housing needs.

In the last eight years more than 35,000 home loans totaling $2.5 billion have been made through the Department of Veteran Affairs; the Farmworker Housing Grant Program has constructed or rehabilitated nearly 3,000 homes and rental units; $480 million has been devoted to provide the homeless with mental health care, emergency shelters, employment counseling, education programs and housing vouchers. Since 1985, when the governor signed legislation creating the Mobile Home Park Assistance Program, $16 million has been appropriated to assist low-income mobile home park residents.

MAUREEN HIGGINS, Director

Department of Housing and Community

Development, Sacramento