SACRAMENTO – Habitat for Humanity is concerned its building of low-income affordable housing in California may be severely impacted because of state funding cuts.
The nonprofit says one of its main state funding sources, CalHOME, has been severely cut back in the 2024-2025 budget and has no additional funding rounds for future years.
"It completely changed my life and the path I was going down," said Jasmine Palmer, who has lived in a Habitat for Humanity home in Sonoma County for almost 10 years.
Palmer spoke through tears as she said her daughter called getting the home one of the most impactful moments in her life.
"It brought stability in her life," Palmer said.
Habitat for Humanity Executive Director Debbie Arakel said CalHOME is used for about 80% of its new construction for low-income homes and it is asking the state for it to be funded for one year's demand.
"There was an allocation of $350 million and almost all of that except $100 million was clawed back," Arakel said. "With an investment of just $280 million, that would meet the building demand."
President and CEO of Habitat for Humanity of Greater Sacramento Leah Miller took CBS Sacramento on a tour of one of the new homes in Oak Park that families will be moving into in the coming days.
There are also Habitat homes under construction in Historic Folsom that are some of the 75 in the pipeline for the greater Sacramento region.
"If we can't get a budget allocation to replenish the CalHOME line item on the state budget, those homes in Sacramento will take a lot longer to build," Miller said.
CBS Sacramento reached out to CalHOME about the budget allocations but said it could not comment.
The governor's office never responded to CBS Sacramento's inquiry.
"Homeownership, it's definitely a long-term solution," Palmer said. "Without CalHOME funds, I wouldn't have a home."
There is still time for the governor and legislature to review the next state budget allocations.
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