At the recent meeting of the California Strategic Growth Council (SGC), members voted on key aspects of the Affordable Housing and Sustainable Communities Program (AHSC) and other housing initiatives that will increase access and delivery of affordable housing funding across the state.
Among the items voted on was the approval of a Tribal Housing and Capacity Building initiative; approving amendments to Round 8 AHSC Guidelines to align and increase developers’ fee limits; and updating a Factory Built Housing Resolution to accommodate the changing space around predevelopment and funding.
Tribal Housing and Capacity Building Initiative
The Council approved up to $30 million from AHSC’s continuous appropriation funds to support technical grant writing assistance and staff capacity building activities for Tribes pursuing affordable housing and related projects.
California Native American communities continue to face some of the most severe housing shortages in the state, and according to the state's Action Plan for Preventing and Endling Homelessness in California, California Tribes face greater barriers and have fewer resources to address the issue than local jurisdictions. Tribes also experience severe disparities in homelessness compared to the general population and experience poorer outcomes in other areas such as poverty, unemployment, substance use disorders, and mental health challenges.
The Council's vote to approve this Tribal Housing and Capacity Building Initiative furthers California's commitment to partner with Tribal communities across the state to better understand their needs and ensure that policies, programs, and funding are accessible and culturally responsive.
As a starting point, this initiative will focus on three areas of technical assistance:
- Housing Project Development: Technical assistance and project development funds for soft costs such as site assessments, design, and permitting for Tribal applicants interested in housing projects.
- Pre-Development Infrastructure: Direct grant funding for physical infrastructure such as broadband, sewer, water, electricity, or transportation to support AHSC and other housing program readiness.
- Tribal Capacity Building: Providing foundational staff capacity to California Native American Tribes through funding recruitment and retention of Tribal staff and consultants, training, engagement, partnership development, and other activities.
The SGC has more than a decade of experience providing technical assistance and collaborating with under-resourced communities to build their capacity to be competitive for state grants. Based on public outreach and research, the Council developed a Tribal Capacity Building Pilot Program in 2023 to build long-term Tribal staff capacity to advance Tribally led climate projects, including those focused on housing, land use, transportation and agricultural land preservation. The new initiative passed at the April 2025 Council meeting will build on what was learned from the 2023 pilot program.
“Expanding SGC’s Tribal assistance will help Tribes develop projects that address their housing needs and provide them with the tools they need to apply for AHSC or other housing and climate programs,” said Amar Cid, SGC’s Deputy Director of Community Investments and Planning. “California Native American Tribes encounter unique challenges in securing and implementing affordable housing investments. Many Tribes have limited or no staff capacity to engage with state or federal housing programs and are unlikely to have a project at a stage that our current AHSC technical assistance program can support. This new initiative will change that.”
Approved Amendments to Round 8 AHSC Guidelines
Council members also voted to amend and update guidelines for Round 8 of the AHSC Program – making it easier for affordable housing developers to take advantage of new tax credits. These amendments align developer fee limits with guidelines associated with California Tax Credit Allocation Committee (CTCAC) tax credit programs as well as Tax Credit Allocation Committee (TCAC) and California Debt Limit Allocation Committee (CDLAC). In April 2024, CTCAC increased developer fee limits to address rising industry costs, creating misalignment with the AHSC and TCAC Funding Guidelines and potentially disadvantaging Round 8 projects that rely on TCAC and CDLAC funds. The Council’s vote brings AHSC guidelines into alignment and allows individual affordable housing projects to align their Developer Fees with the updated requirements and offset rising costs.
Updating Factory Built Housing Resolution
In more housing news, the Council also voted to adopt Resolution 25-01, which will replace SGC Resolution 23-02 and remove existing requirements that Factory-Built Housing (FBH) Pre-development Pilot Program funds only be used to support FBH manufacturing facilities that are eligible for and pursuing federal funding. This new approach will broaden the scope of eligible activities and enable the FBH Pilot Program to have a more immediate impact in addressing the urgency of the housing, climate, and energy crisis.
As the FBH industry grows nationwide, the pilot funding program presents an opportunity for the state to accelerate the sector within California, while prioritizing community and environmental benefits. The SGC launched the FBH Pilot Program as an opportunity to accelerate progress for the state’s housing, climate, and energy goals and leverage available federal resources.
About AHSC and the California Strategic Growth Council
AHSC is a state program that invests in affordable housing projects that also create or enhance clean mobility options for residents. Allowing people to get everywhere they need to go (work, school, healthcare, shopping, etc.) without having to drive - resulting in cleaner air, healthier lifestyles, and protection from current and future climate changes.
AHSC is administered by SGC and implemented by the California Department of Housing and Community Development. AHSC is part of California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment – particularly in disadvantaged communities.
The SGC is a Cabinet-level Council housed within the Governor’s Office of Land Use and Climate Innovation that works to coordinate and work collaboratively with public agencies, communities, and philanthropy to achieve sustainability, fair access, economic prosperity, and quality of life for all Californians. The Council is composed of the leaders of seven state agencies and three public members who work together to build healthy, thriving, resilient communities for all.