Announcement California has funded more than 22,000 transit-oriented homes through cap-and-trade alone

As two projects open and another breaks ground this week, California’s Affordable Housing and Sustainable Communities Program is marking the investment of more than $4 billion in cap-and-trade funds, which has added more than 22,000 affordable homes in climate-friendly communities statewide.

“A key priority for California is building and supporting thriving, resilient communities for all, and cap-and-trade funds are making this a reality,” said Samuel Assefa, director of the Governor’s Office of Land Use and Climate Innovation (LCI) and chair of the California Strategic Growth Council. “Ten years into the Affordable Housing and Sustainable Communities Program, individuals and families have access or will have access to 22,000 new affordable homes with convenient, greener transportation options nearby.”

“We're proud that the Affordable Housing and Sustainable Communities Program has distributed over $4 billion to develop climate-friendly communities statewide - protecting public health, reducing emissions and expanding much-needed housing options,” said Erin Curtis, executive director of the California Strategic Growth Council, which is housed in LCI. "These projects offer multiple benefits to underinvested communities: affordable housing, convenient and sustainable transportation, community space, and other key services right at their doorstep."

Overseen by the California Strategic Growth Council and implemented by the California Department of Housing and Community Development, the AHSC Program supports thriving communities and reduces emissions by investing in projects that build affordable housing near transit. The program is part of California Climate Investments (CCI), which 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.

Throughout the past 10 years, the AHSC Program has invested in 210 projects in 34 counties/85 cities across California. By incorporating clean mass transit, electric vehicle charging stations, or upgraded walking and biking routes into affordable housing plans, residents of these new homes have greener and cheaper ways to get where they need to go (work, school, health care, shopping, etc.).

The latest AHSC openings and groundbreaking include:

• The Sonoma SMART Windsor Extension (part of the 75-unit Casa Roseland Villages project), which took off for the first time Friday.
• The Santa Monica & Vermont Apartments, which welcomed residents into 171 of their 187 units for families and individuals in Los Angeles County on Wednesday.
• The Eureka Scattered Site Project, which broke ground Tuesday on 90 units of affordable homes located on three city-owned parking lots in Humboldt County.
AHSC has invested in climate-friendly affordable homes since 2015 and supports multiple priorities of the Newsom administration’s climate-smart housing reforms that deliver more homes, faster.

2025 Grand Openings and Groundbreakings to Date

Grand Openings (January-June): 643 new homes that connect to improved transportation infrastructure and community programming/services totaling $120.9 million in CCI funding.

Los Angeles: Corazon del Valle

• Built 180 units for families and individuals.
• Received $23.2 million through Round 5 of the AHSC Program.
• Using funding from AHSC, each unit will be provided a discounted metro card for the first three years of residency. The residential complexes are located near the future site of LA Metro’s planned East San Fernando Valley Light Rail line, which will run along Van Nuys Boulevard.

South Los Angeles: Parkview Place

• Built 127 units for families and individuals.
• Received $24.1 million through Round 5 of the AHSC Program.
• Transportation improvements include upgrading 12 crosswalks, two curb extensions, constructing 20 curb ramps, and 859 feet of sidewalk repairs. The project created more bikeways along with a neighborhood traffic circle. The project also includes the purchase of four electric buses.

Berkeley: Maudelle Miller Shirek Community

• Built 87 units for families and individuals.
• Received $22.8 million through Round 5 of the AHSC Program.
• Transportation improvements include the purchase of three new heavy rail transit cars for BART, bus stop improvements and wayfinding improvements at Ashby BART station. Program funding will be provided for transit passes for three years and bike education workshops for the affordable housing residents. Other transit improvements include widening the sidewalk, installing a transit shelter (including seating and a transit map) and providing night lighting for the waiting area.

Los Angeles: Santa Monica & Vermont Apartments

• Built 187 units for families and individuals.
• Received $29.9 million through Round 5 of the AHSC Program.
• Transportation improvements include purchasing four new electric buses to strengthen connections to transit for the entire neighborhood, 12 bus shelters, 19 new streetlights, and 11 crosswalks to serve the residents of the community. The project also closes 2.3 miles of major east-west and north-south bike network gaps and provides 2,480 feet of new or replaced sidewalk, that have historically limited active transportation options in the area.

Windsor: Sonoma SMART Windsor Extension (Part of Casa Roseland Villages project)

• Transportation improvements tied to Casa Roseland Village include extending the area’s rail network 3.1 miles to the town of Windsor, expanding the reach of the regional commuter rail line which in turn connects to the Bay Area ferry service, linking these regions by low-carbon transportation.

Concord: Rick Judd Commons

• Built 62 affordable units for families and individuals.
• Received $20.9 million through Round 5 of the AHSC Program.
• Transportation improvements include creating new bike lanes, pedestrian improvements and traffic calming measures - as well as three new Bay Area Rapid Transit (BART) cars incorporating the latest accessible, high-capacity design.

2025 Groundbreakings (January-June): 478 future homes, connected to improved transportation infrastructure and community programming/services totaling $180.2 million from CCI.

Fresno: Dakota Affordable Multifamily Housing

• Building 114 units for families, individuals and veterans.
• Received $48.8 million through Round 7 of the AHSC program.
• Transportation upgrades include new bikeways, walkways, 32 new bus stop stations, a ZEV bus (fuel cell bus), and carpool vans to the area.

Los Angeles: Peak Plaza

• Building 102 units for families and individuals.
• Received $34.6 million through Round 7 of AHSC Program.
• Transportation upgrades include a new east-west bikeway, reconstructed sidewalks to create an accessible walkway to enhance the pedestrian network in the neighborhood. The purchase of nine buses to improve efficiency along two crucial bus lines adjacent to the housing development.

Los Angeles: Rosa’s Place

• Building 97 units for survivors of gender-based violence.
• Received $41.1 million though Round 7 of the AHSC Program
• The project contains community rooms, a mother's wellness area, a donation center, a courtyard, a learning center, as well as offices for on-site supportive services and property management.

Santa Rosa: Casa Roseland Village

• Building 75 units for families and individuals.
• Received $25.8 through Round 5 of the AHSC Program.
• Transportation upgrades include connected 10-mile-long multi-use trail that connects to downtown Santa Rosa and the Sonoma Marin Area Rail Transit (SMART) Station and the purchase of an electric bus.

Eureka: Eureka Scattered Sites Project

• Building 90 units for families and individuals.
• Received $30.2 million through Round 7 of the AHSC Program.
• Transportation upgrades include the purchase of two battery-electric micro transit vehicles and charging infrastructure as well as bicycle and pedestrian infrastructure improvements.

These groundbreakings, grand openings and clean mobility improvements support Gov. Newsom’s build more, faster agenda, delivering infrastructure upgrades and creating jobs across the state. They also build on the Newsom’s Infill Executive Order, aligning transportation and housing policy to support more efficient land use and improve access to jobs, services and transit. A new report details nearly $33 billion raised for climate projects by cap-and-trade, as the Governor and Democratic legislative leaders seek an extension of the program.

The AHSC program awards funding in rounds, with Round 1 being awarded in 2015 and Round 8 being awarded in fall 2024. The Round 9 application process closed on May 28, 2025, with a notice of funding availability of $775 million.