Governor Newsom Proposes Withholding Funds from Cities that Don't Meet Housing Goals

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An excavator sits in front of a home under construction at a new housing development on March 17, 2015, in Larkspur, California. (Photo: Justin Sullivan/Getty Images)

In his proposed budget, Governor Newsom allocated $2 billion for housing initiatives. But perhaps the bigger housing news is money that Newsom has threatened not to distribute. Specifically, the governor says that he will withhold transportation funding from regions that fail to meet new housing goals. Supporters of the idea like the additional incentive for communities to build. But critics say that homebuilding is complex, ruled by market forces and that cities shouldn't be punished for forces outside their control.


Amie Fishman, executive director, Non-Profit Housing Association of Northern California

Chris Lee, legislative representative for housing, land use and transportation, California State Association of Counties