SCAG Applauds Adoption of 2024 State Budget and Restoration of Critical Funding in Addressing the Housing Crisis

Press Release

The state has taken a major step forward in addressing the housing crisis by restoring funding to the Regional Early Action Planning Grants (REAP 2.0) program under the Budget Act of 2024, signed into law by Gov. Gavin Newsom on June 29, Southern California Association of Governments (SCAG) Executive Director Kome Ajise said. 

The budget agreement between Gov. Gavin Newsom and state legislative leaders retains $560 million for REAP 2.0, $480 million of which is dedicated to the formula component for metropolitan planning organizations, just five weeks after funding was proposed to be eliminated as part of the governor’s May budget revision. The agreement was announced on June 22, then formally adopted by the legislature and approved by the governor on Saturday.  

“We appreciate the commitment to fund REAP 2.0, which supports critical efforts to increase housing supply, improve affordability and help ensure that future generations can afford to live here. This is one of our most pressing economic and social challenges across the state and especially here in Southern California,” Ajise said.  

“The region faces compounding challenges related to our housing shortage, including the alarmingly high number of unhoused people. After decades of not producing enough housing to meet our population needs, this problem will take years to address—and will require both long-term planning and short-term projects. SCAG has made REAP part of a much-needed strategy in its work to align activity across the region toward shared housing and climate goals.”  

Before the budget cuts first proposed in January, SCAG had awarded more than $192 million in REAP 2.0 funds to 100 transformative projects that support creation of 66,000 housing units across all income levels throughout the six-county region. They range from the development of 10,000 new housing units on surplus Los Angeles County Metropolitan Transportation Authority lands to more than 1,150 affordable housing units in the Coachella Valley.  

Other REAP-funded projects in Southern California  would add 240 accessory dwelling units in Orange County, invest in infrastructure to support nearly 5,000 newly-zoned housing units in Rialto, build 1,500 new housing units at the expanding North Hollywood Transit Center, facilitate street infrastructure improvements in the city of Calipatria’s Eastside Specific Plan to accommodate up to 736 units and promote hundreds of infill homes in Ventura County through a long-term loan program. 

“As a result of the budget agreement and the restoration of REAP 2.0 funding, jurisdictions in the region can continue work that represents a long-term and sustainable approach to addressing the housing shortage. These projects represent the kind of creative thinking, collaboration and resourcefulness needed to make a difference,” Ajise said. “The decision to restore REAP 2.0 funding acknowledges the critical role this program plays in addressing the housing crisis.”