New California Bond Program Promotes Affordability for Middle-Income Renters

The California Statewide Communities Development Authority hopes that a new program, which helps cities purchase rental properties with no upfront cost, will lead to an increase in affordable middle-income housing.

2 minute read

December 16, 2020, 9:00 AM PST

By Diana Ionescu @aworkoffiction


Oakland Apartment Building

Sanfranman59 on WikiMedia / Madison Park Apartments (Oakland, CA)

California's Statewide Communities Development Authority (CSCDA) is launching a new bond program aimed at making housing affordable for middle-income residents.

Through its current initiatives, the CSCDA issues bonds that help cities pay for new housing development projects that include affordable units for low-income renters. But many moderate-income renters fall through the cracks when it comes to housing assistance, says CSCDA managing director Jon Penkower. Those who earn too much to qualify for subsidized housing but not enough to afford market rates, he says, "can’t get tax credits, there’s no federal subsidy, no state subsidy, no local money — there’s nothing." The new Workforce Housing Program addresses the needs of this "missing middle" by issuing tax-exempt bonds to cities for the purchase of rental properties that can be repaid in 30 years.

The program lets the authority buy existing market-rate buildings at no upfront cost to the city and work with the local government to set rents that are affordable to those making 80%-120% of the area's median income. According to federal government guidelines, "affordable" housing should cost no more than 30% of a tenant's income, a tall order in a state notorious for its high housing costs.

Several California jurisdictions have already joined the program. In Anaheim, the CSCDA has secured the purchase of three properties in the up-and-coming Platinum Triangle neighborhood. A spokesperson for the city called the decision "a no-brainer," citing the program as "a great opportunity to help our police officers, firefighters, and teachers," many of whom fall into the overlooked middle income bracket.

Tuesday, December 8, 2020 in Next City

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Colorful blocky apartment building facade.

Minneapolis Bans Rent-Setting Software

Four cities have enacted restrictions on algorithmic software that can inflate rent costs.

April 1 - Stateline

Silver electric BMW car parked in driveway of home in Oakland, California.

Oakland to Add 244 New EV Chargers

Oakland plans to launch its new charging network at eight locations by the end of 2025.

April 1 - City of Oakland

Sculpture of seated Jane Goodall holding hands with chimp on green lawn.

Jane Goodall Inspires with Message of Hope, Resilience, and Environmental Action

Speaking in Pasadena, Jane Goodall offered a hopeful and inspirational message, urging global compassion, environmental responsibility, and the power of individual action to shape a better future.

April 1 - Pasadena Star-News