SB 5 Summary

• Establishes the Affordable Housing and Community Development Investment Program, administered by a state committee, allowing local agencies to apply for funding to support affordable housing and community development projects.

• Authorizes the committee to approve up to $200 million annually (July 1, 2021 to June 30, 2026) and $250 million annually (July 1, 2026 to June 30, 2030) in transfers from county Educational Revenue Augmentation Funds to support approved projects.

• Requires at least 50% of program funds be dedicated to affordable housing for households earning under 80% of area median income, with housing to remain affordable for 45-55 years; restricts funding for jurisdictions with growth-limiting policies.

• Requires skilled and trained workforce provisions for most projects and mandates annual reporting by applicants and the committee to the Legislature on project progress and outcomes.

• Adjusts state General Fund appropriations to schools to ensure no net fiscal impact from property tax transfers, protecting school funding levels despite reduced ERAF allocations.