Will Trump Presidency Affect California's Housing Crisis?

Here are the morning’s top stories on Thursday, November 14, 2024…

• As President-elect Donald Trump prepares to reenter the White House, California housing advocates are bracing for how a second term could impact the state’s challenges in building housing, notoriously high home prices, rents and rates of homelessness.
• The Palm Springs City Council will vote Thursday on whether to approve a settlement for the survivors and descendants of a predominantly Black and Brown neighborhood that was burned down 60 years ago.
• Republicans have officially won control of the House, after a race in Arizona, and one in Southern California were called for the GOP candidates there on Wednesday. That California race was for the 41st Congressional District in Riverside County, with Republican incumbent Ken Calvert defeating Democrat Will Rollins.

Unclear How Trump Presidency Could Impact California Housing  Crunch

Elected officials and legal teams across California are mobilizing after former President Donald Trump won back the White House last week.

When it comes to one of the biggest issues in the state — housing — it’s still unclear if the new administration will have a huge impact. “Local governments and state governments are 90% of the impediments to housing. Federal government’s biggest help – interest rates and flow of money through Fannie and Freddie loans. That’s where the federal government can create an economic infrastructure that’s helpful to housing,” said Dan Dunmoyer, President and CEO of the California Building Industry Association.

On the campaign trail, Trump promised to fix the country’s growing housing affordability crisis by slashing mortgage rates, reducing regulations and opening federal land for housing construction.

Overall, Dunmoyer said the state is still well behind when it comes to building new housing.

Palm Springs To Vote On Reparations Deal 

The Palm Springs City Council and the Palm Springs Section 14 Survivors group have reached an agreement on a settlement over the city’s destruction of homes in the area decades ago. 

The settlement includes nearly $6 million in direct cash payments and a cultural site to honor the Section 14 survivors and descendants. The Palm Springs City Council plans to vote on the settlement Thursday night, after it was accepted by the group.

Section 14 was a one-square-mile area of land located next to Downtown Palm Springs, with predominantly Black and Brown residents. The city directed its fire department to demolish homes in the neighborhood to make way for luxury tourism. A 1968 attorney general report called the destruction of the neighborhood a “City engineered holocaust.”

Republicans Win Control Of The House, Lifted By Key California Victories

Republicans won control of the U.S. House of Representatives Wednesday, after victories in closely contested California congressional districts helped give the party the 218 seats needed for a majority, and with it, full control of government.

GOP incumbent Rep. Ken Calvert won reelection in the Inland Empire, a day after Republican Rep. David Valadao won another tight contest in his district around Bakersfield. The Associated Press called the races as California election officials continue to count tens of thousands of ballots across the state’s competitive districts. Late Wednesday, a victory by Arizona Rep. Juan Ciscomani clinched the Republican House majority.