Gov. Gavin Newsom created Homekey in 2020 amid the peak of COVID-19 and pressure to do something about the state’s persistent homelessness crisis. The state program sought to get money into the hands of local governments to create housing for homeless residents while cutting red tape.
But the program came with little built-in oversight. Earlier this year, state lawmakers killed a bill to audit Homekey. No state agency has publicly analyzed the program in detail to find out what’s working and what’s not.
So CalMatters spent two years and filed over 100 public records requests to understand the results of that $3.8 billion program. Here are some highlights:
- Sometimes it worked really well. Almost 13,500 Californians now live in Homekey sites created over the past six years.
- Sometimes it did not work at all. Thousands of homes promised by the program still do not exist for a variety of reasons.
- Removing red tape created problems. Participating in the program forced one developer out of business. Another has been charged with fraud.
This analysis is the most comprehensive look at one of Newsom’s flagship programs that exists. The successes and failures of the program are nuanced and complex.
The CalMatters Ideas Festival convenes policymakers, journalists and community leaders for conversations about the issues shaping California, including a main stage discussion with The Lincoln Project. Join us on May 21 in Sacramento. Purchase tickets.
Other Stories You Should Know
A new report on remote workers
The rise of remote work is disrupting California’s labor market — potentially shutting out Californians from getting in-state jobs and leaving them to still contend with California’s high cost of living.
The nonpartisan Legislative Analyst’s Office released its report Wednesday examining how remote work has affected California jobs. Some key findings:
- The number of remote workers in the state has tripled since 2019, with one-eighth of California workers today working mainly from home.
- Remote work has grown particularly in technology, finance, business and sales. While employment in these sectors grew 16% in the U.S. since the pandemic, it grew in California by only 7%.
- Before the pandemic, more workers in these four sectors moved to California, but now more are moving out.
Because California companies can now hire people across the country and workers who would have moved to California for certain jobs don’t have to anymore, the changed dynamic “heightens the urgency … about improving California’s affordability and quality of life,” said the analyst’s office.
The office suggests lawmakers consider proposals related to the state’s cost of living in order to retain remote workers, and possibly revisiting tax rules to address how out-of-state workers employed by California businesses do not owe state income taxes.
What’s holding Porter back?
Former U.S. Rep. Katie Porter of Orange County has struggled to rally support from Democrats in California’s governor race, despite her experience in Congress and professed support for progressive policies.
As CalMatters’ Jeanne Kuang explains, Porter has come under scrutiny for considering more moderate positions. She has wavered between fully supporting single-payer healthcare and questioning its feasibility for California. Last month, Porter raised concerns about the state’s agricultural overtime law, but when she received blowback from the California Labor Federation, she clarified that she supports the eight-hour workday.
Porter also caught flak last year for two videos that critics said exemplified how she was seemingly unable to control her temper. Her poll numbers took a hit after that and haven’t recovered. To some experts, the fallout shows how female candidates are held to higher standards than men.
- Kimberly Nalder, Sacramento State University professor who researches gender and politics: “There’s this perception that women should not exhibit anger, but it’s perceived as strong when men do it.”
California Voices
CalMatters columnist Dan Walters: The powerful California Coastal Commission has thrown its weight over the years against development in the coastal zone, but two recent court decisions have brought its almost limitless authority down to earth.
The Uber-backed ballot measure to cap personal injury lawyers’ contingency fees addresses the referral agreements between law firms and doctors, which lead to costly insurance premiums, writes Tracy Mulholland, a teacher who lives in Southern California.
Other things worth your time:
CA has six distinct voting groups beyond Democrat and Republican. Which one are you in? // San Francisco Chronicle
CA school districts plead with Newsom to restore budget // KQED
AI is forcing CEOs to make a stark choice: Lay off workers or make them do more // The Wall Street Journal
OpenAI president’s ‘deeply personal’ diary becomes focus in Musk’s case against Altman // The Guardian
YIMBYs push back on SF Mayor Lurie’s plan for housing around transit hubs // San Francisco Chronicle
Bay Area ban on new natural gas water heaters may be relaxed over cost concerns // The Mercury News
LAUSD investigated for allegedly reassigning, not removing, teachers accused of sex misconduct // Los Angeles Times
Trump administration alleges UCLA medical school illegally uses race in admissions // LAist
LA Mayor Bass and challenger Raman tussle in first head-to-head debate // Los Angeles Times
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