SACRAMENTO – Beginning on January 1, South Bay cities will have expanded tools to finance workforce housing through their regional housing trust under SB 799, a new law authored by Senator Ben Allen (D-Santa Monica) and signed by Governor Gavin Newsom.

This legislation expands the South Bay Regional Housing Trust’s (Trust) authority to finance housing for moderate-income households, giving participating cities a new way to support housing for teachers, health care professionals, first responders, service members, and other workers who may earn too much to qualify for traditional affordable housing programs but are increasingly priced out of the communities they work in.

“Too many working families can no longer afford to live in the communities they serve,” said Senator Allen. “This increased flexibility will go a long way in helping us meet the needs of our local workforce, and I’m grateful to have been able to work with the South Bay cities and local leadership to finalize this meaningful solution.”

Allen first authored legislation establishing the Trust in 2022, allowing Los Angeles County and cities within the South Bay Cities Council of Governments to create a joint powers authority to pool resources and support affordable housing. 11 South Bay cities formally launched the Trust earlier this year.

The Trust has already begun putting those resources to work. In May, its board approved a $6 million loan toward the Cordary Avenue Apartments, a new 100% affordable housing development in Hawthorne. The investment marked the first allocation from $7.9 million in Los Angeles County Affordable Housing Solutions Agency funding earmarked annually for the South Bay through Measure A.

“We’re extremely grateful to Senator Ben Allen for understanding and addressing our needs in the South Bay with SB 799 to help us protect the housing future of the ‘missing middle,’ who are being priced out of the communities they serve,” said Debby Stegura, chair of the South Bay Regional Housing Trust and Rolling Hills Estates councilmember. “The price of displacement of these essential workers is one our communities cannot afford to pay, when it comes to preserving the safety, education, and quality of life of our subregion now and in the future.”

The South Bay Regional Housing Trust currently includes El Segundo, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Manhattan Beach, Rancho Palos Verdes, Rollings Hills Estates, Redondo Beach, and Torrance.