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Governor Newsom Announces $352 Million for Transit-Oriented, Climate-Friendly Housing in Underserved Communities

BART to receive over $3.5 million to help build housing projects on BART-owned land

Southern California Association of Governments to receive $237.41 million to accelerate the development of affordable, climate-friendly housing

Sacramento Area Council of Governments to receive $31.83 million to fund new green infill projects

Why it matters: The more than $352 million in funding announced today will help reduce the number of cars on our roads and curb pollution by developing more affordable housing, closer to where Californians live and work. These grants will accelerate progress toward state housing and climate goals by boosting support for local projects in under-resourced neighborhoods that are located near transit hubs.

SACRAMENTO – Governor Gavin Newsom announced today more than $352 million in the first round of funding from the Regional Early Action Planning grants program (REAP 2.0) through the California Department of Housing and Community Development (HCD), a key piece of the Governor’s plan for a sustainable, resilient, and inclusive future for all Californians.

What Governor Newsom said: “California is backing local governments that are addressing the housing shortage and climate crisis with a focus on under-resourced communities that often bear the brunt of the climate crisis. It is important that we build more housing in strategic locations near transportation hubs which helps reduce pollution and congestion by reducing the number of cars on the road.”

REAP 2.0 is a flexible grant program that furthers the state’s commitment to building neighborhoods that allow more Californians to live closer to jobs, services, and daily destinations. It provides planning and implementation dollars to cities, counties, and regional governments to build sustainable, resilient, and equitable communities that are inclusive and take measurable strides toward reducing vehicle miles traveled.

“Abundant affordable housing is key to addressing the climate crisis,” said Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramírez. “California is proud to partner with local communities to build more affordable homes in the right places – near jobs, transit and neighborhood services – to mitigate the impact of climate change, improve people’s quality of life, and meet the state’s climate goals.”

Enacted as part of the California Comeback Plan, REAP 2.0 builds on the successes of the $125 million REAP of 2019—expanding the program’s focus by integrating housing and climate goals, and allowing for broader planning and implementation investments. This includes infrastructure investments such as sewer, water and other critical construction components that are necessary to support the infill developments that our state needs.

The vast majority of REAP 2.0 funds will flow to Metropolitan Planning Organizations (MPOs). These MPOs may then suballocate a portion to cities and counties in their region. A smaller set-aside of $30 million in Higher-Impact Transformative (HIT) funding has been awarded through a highly competitive process to five communities that have a planned commitment to transform under-resourced neighborhoods through comprehensive community engagement and innovative place-based projects.

“These highly competitive awards are going to communities that have demonstrated a strong commitment to transforming historically under-resourced communities,” said HCD Director Gustavo Velasquez. “High-impact REAP 2.0 grants will make possible the development of significant affordable housing near transit hubs, connecting vulnerable Californians to opportunity and moving the state toward its climate goals by reducing vehicle traffic.”

REAP 2.0 MPO awards include:

Association of Monterey Bay Area Governments (AMBAG) $9.13 million

Madera County Transportation Commission (MCTC) $2.18 million

Sacramento Area Council of Governments (SACOG) $31.83 million

San Diego Association of Governments (SANDAG) $38.73 million

Shasta Regional Transportation Agency (SRTA) $2.24 million

Southern California Association of Governments (SCAG) $237.41 million

Tahoe Regional Planning Agency (TRPA) $567,239

REAP 2.0 HIT awardees include:

City of Oakland $10 million

City of Rancho Cordova $4 million

Tahoe Regional Planning Agency (TRPA) $2,412,475

San Diego Association of Governments (SANDAG) $10 million

Bay Area Rapid Transit (BART) $3,587,525

REAP 2.0 is administered by HCD in collaboration with the Governor’s Office of Planning and Research, the Strategic Growth Council, and the California Air Resources Board. For more details on REAP awards and what they will be specifically used for visit www.hcd.ca.gov.

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