Governor Gavin Newsom announced that California will allocate over $789 million in cap-and-trade funds to support 24 projects aimed at building sustainable housing and infrastructure across the state. These funds will be used to construct 2,483 affordable homes and to develop sustainable infrastructure, including public transit, bike paths, and pedestrian walkways.

The investment reflects the state’s commitment to addressing the housing crisis and meeting climate goals. Newsom emphasized the dual benefit of these projects, noting that they not only tackle homelessness by creating affordable homes but also contribute to California’s climate targets by promoting sustainable communities. The governor highlighted that more than two-thirds of the new homes will be dedicated to lower-income communities, underscoring the program’s focus on supporting vulnerable populations.

The projects receiving funding are spread across 20 communities in California, including Berkeley, Los Angeles, San Francisco, San Diego, and Sacramento. These communities will see the development of affordable housing integrated with infrastructure improvements that encourage sustainable living. This round of funding is part of the larger Affordable Housing and Sustainable Communities (AHSC) program, which has awarded a total of $3.8 billion across eight rounds since its inception.

Sam Assefa, Director of the Governor’s Office of Land Use and Climate Innovation, praised the program for its holistic approach to development. He pointed out that these investments not only address the immediate need for affordable housing but also contribute significantly to reducing greenhouse gas emissions in California’s most vulnerable communities. The integration of sustainable transportation with affordable housing is seen as a critical step in creating healthier, more resilient neighborhoods.

In addition to housing, the projects will support the purchase of 52 zero-emission transit vehicles, the installation of approximately 100 new bus shelters, and the construction of around 60 miles of bikeways and sidewalks. These efforts aim to enhance the accessibility and sustainability of transportation options in the participating communities.

The AHSC program is administered by the Strategic Growth Council (SGC) and implemented by the California Department of Housing and Community Development. It is a key component of California Climate Investments, a statewide initiative that uses cap-and-trade dollars to reduce greenhouse gas emissions while strengthening the economy and improving public health. The Cap-and-Trade program also incentivizes industries to invest in clean technologies and innovative pollution reduction strategies.

California Climate Investments spans a wide range of projects, including affordable housing, renewable energy, public transportation, and environmental restoration. These efforts collectively contribute to building a sustainable future for all Californians.