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

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Looking out at trees on 4th Street in downtown Los Angeles, California.

LA’s Tree Emergency Goes Beyond Vandalism

After a vandal destroyed dozens of downtown LA trees, Mayor Karen Bass vowed to replace them. Days later, she slashed the city’s tree budget.

April 23 - Torched

White and blue Sacramento regional transit bus with one bike on front bike rack.

Sacramento Leads Nation With Bus-Mounted Bike Lane Enforcement Cameras

The city is the first to use its bus-mounted traffic enforcement system to cite drivers who park or drive in bike lanes.

April 23 - Streetsblog California

View of downtown Seattle with Space Needle and mountains in background

Seattle Voters Approve Social Housing Referendum

Voters approved a corporate tax to fund the city’s housing authority despite an opposition campaign funded by Amazon and Microsoft.

April 23 - Next City