BAHFA Bond Background

The following offers an introduction to the history of the Bay Area Housing Finance Association (BAHFA) and the 2026 affordable housing bond that would fund it.

Origins:

The United States was built on the ideal that uniting localities was essential to maintain prosperity. We’re not a nation composed of city-states, just like we’re not a nation under the total control of the federal government. Yet places like the Bay Area have struggled to live up to the principle of a balanced union. Rather than work together to confront a historic housing crisis, towns have found themselves without vital regional support.

The Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG), two regional organizations that joined forces in 2017, have worked tirelessly to be that regional asset. Yet the world turns on money, and it’s ultimately difficult to tackle a multi-billion dollar systemic housing issue with lunch change and some monopoly cash. Whereas a place like New York City possesses the Housing Development Corporation, a regional organization that spent an average of 1.5-2.7 billion dollars per year over the last decade on affordable housing, the Bay Area had been straight out of luck for years; although the Bay has the same population as New York City, no similar regional finance agency existed. That was, at least, until the aftermath of the Casa Compact. 

After a herculean push by the MTC and ABAG to organize and run the emergency conference between regional housing actors, the “Casa Compact” wrapped up and released its report in 2019. The leaders argued, among other suggestions, that the Bay Area needed a regional agency that could raise at least 1.5 billion dollars annually; otherwise, we could kiss any hope of turning the tide on housing affordability goodbye. 

And like that, Sacramento listened.

California assemblymember David Chu and several housing activists sponsored Bill 1487, which passed the California legislature on September 12, 2019, and the Bay Area Housing Finance Association was born. The agency, dedicated to expanding affordable housing and protecting tenant rights, is helmed by the ABAG and the MTC boards. And thanks to BAHFA, they finally have the legal and financial muscle necessary to throw some immense weight around in the housing arena. 

Understanding BAHFA:

BAHFA uses a simple acronym to describe its general mission: Protection for current residents from displacement, preservation of existing affordable housing, and production of new housing (the three P’s). Of course, there’s also an unwritten “P” that determines any organization’s ability to accomplish the above: price. Housing is an obscenely expensive business; in SF alone, just one unit of housing often costs up to an estimated 1.2 million dollars. For the nine-county Bay Area to build the 35,000 units per year that the CASA conference called for, the region needs more than just lunch money. BAHFA’s usefulness lies in its ability to raise and command a budget of (hopefully soon) over a billion dollars annually. 

In addition to avenues like grants and donations, the ballot box is the primary tool BAHFA commands to acquire these funds. It’s empowered to put bonds up for a vote through ballot measures. In 2024, a BAHFA placed a long-awaited affordable housing bond recently placed on the ballot that would rake in 20 billion dollars annually. However, after a series of lawsuits from the reactionary Howard Jarvis Taxpayer Association, BAHFA decided to delay the ballot measure until the 2026 midterms. In the meantime, pro-affordable housing supporters are throwing their weight behind the statewide Proposition 5, a measure meant to ensure that bonds for affordable housing and education can pass if that’s the will of the voters.

What will BAHFA do with all bond money after 2026?:

If the bond were to pass in 2026, the money raised isn’t all just from the community; BAHFA would return at least 50% of it directly to the towns it came from (including $700 million for Marin County). The agency likewise expects many towns would essentially double or triple their return on investment. Yet, while bonds are crucial for helping BAHFA take flight, it will ideally be able to find its own wings in the long run. By issuing below-market-rate loans for affordable housing construction and reinvesting the interest it earns on further housing projects, BAHFA should become self-sustaining. 

A well-funded BAHFA would spread grant money and financial assistance across the region. For example, its Welfare Tax Exemption Preservation Program offers property tax breaks in exchange for housing complexes preserving affordable units. Additionally, BAHFA is in the business of helping residents directly. Its marquee product so far is the Doorway Housing Portal, which offers an exhaustive listing of current affordable housing postings and walks potential applicants through every step of the process. Finally, the agency offers expertise and advice to every locality in the area: housing Element technical assistance, investigations of eviction data, analysis of ongoing housing developments, and more–there’s no stone the BAHFA wants to leave unturned in this fight. 

Moving forward:

No city should be abandoned in the face of our greatest challenges in the United States of America. And make no mistake–housing is California’s defining challenge today. But thanks to the vision and dedication of the MTC, ABAG, David Chu, and countless others, there’s real hope that reform and regional collaboration in California will be possible.