California’s Affordable Housing and Climate Program Delivers Major Gains for Communities and the Environment

March 23, 2025

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By Vanguard AdministratorMarch 23, 20250 comments

A new report released by the California Housing Partnership and Enterprise Community Partners highlights the Affordable Housing and Sustainable Communities (AHSC) program as one of California’s most powerful tools for simultaneously addressing the state’s housing crisis and its ambitious climate goals.

Since its inception in 2014, the AHSC program has invested $4 billion in 209 integrated housing and transportation projects across California. These developments have already created over 20,000 new affordable homes and are estimated to benefit nearly 280,000 households statewide. But the program’s impact goes far beyond housing—by reducing reliance on personal vehicles, expanding access to public transportation, and improving pedestrian and bike infrastructure, AHSC is also delivering significant environmental benefits.

“Over the course of all AHSC developments’ lifetimes, the program will help mitigate over 5.7 million metric tons of greenhouse gas emissions by decreasing reliance on driving while connecting residents to amenities, services, and economic opportunities that are accessible on foot or via public transit,” the report states.

The program, funded through the state’s Greenhouse Gas Reduction Fund, has become a cornerstone of California’s efforts to align affordable housing production with climate resilience. Notably, 65% of funded developments are located in or directly benefit disadvantaged communities—areas that face disproportionate environmental and economic challenges.

“The AHSC program is designed to fund developments that directly benefit low-income and disadvantaged communities,” the report notes. “At least 50 percent of AHSC funds must be directed to developments that benefit or are located within disadvantaged communities.”

The benefits extend deeply into local economies and communities. The program has supported nearly 47,000 jobs during construction phases, generating $4.7 billion in wages and business income. Additionally, AHSC projects have produced $1.8 billion in state and local tax revenue. For residents, the benefits are tangible: the report estimates that families living in AHSC-funded affordable homes save an average of $10,566 per year on rent compared to market-rate prices in the same areas.

Transportation-related outcomes are equally impressive. The program has contributed to a reduction of 512 million vehicle miles traveled annually, which is equivalent to removing more than 41,000 cars from California’s roads each year. This reduction not only cuts greenhouse gas emissions but also improves air quality, particularly in communities already burdened by pollution.

In addition to housing, AHSC has funded substantial transportation infrastructure improvements, including 1,512 miles of new or improved bike lanes and pedestrian pathways and the purchase of 959 new transit vehicles such as zero-emission buses and electric shuttles.

The report underscores that these investments are critically important in a state where low-income and communities of color are far more likely to face severe air pollution and its health consequences. “Pollution and air quality remain major challenges in California,” the authors write. “Low-income and BIPOC communities are far more likely to experience significant air pollution.”

Several case studies in the report illustrate AHSC’s wide-ranging impacts:

• Parkview Place in Los Angeles added 126 affordable homes along with electric buses, bike lanes, and sustainable design features. The project is expected to reduce greenhouse gas emissions by more than 15,000 metric tons.

• Westview Village III in Ventura replaced 47 outdated public housing units with 105 new, sustainable homes, alongside vanpool access and LEED-certified design features. The project is projected to reduce emissions by nearly 18,000 metric tons.

• Arcata 30th Street Commons, the first AHSC-funded tribal development, provided new housing and bike paths while reflecting the Yurok Tribe’s values of environmental sustainability and community wellness.

“These projects demonstrate the multi-layered impacts of the program—housing, transportation, environmental justice, and economic development—all working together to build more sustainable communities,” the report emphasizes.

One of the central findings of the report is that AHSC is effectively shifting California’s development patterns. By concentrating affordable housing near transit, jobs, schools, and services, the program is reducing urban sprawl and promoting more equitable, sustainable, and climate-resilient communities.

“AHSC developments are shifting development and land use patterns across the state to a future that is more equitable, sustainable, and inclusive — one transit-oriented community at a time,” the report states.

With more than $545 million invested in 2024 alone, the AHSC program continues to be a vital driver of change as California faces dual crises of housing affordability and climate change. The report calls for continued and expanded investment to sustain this momentum, arguing that the AHSC model should serve as a blueprint for other states and regions seeking to align housing and environmental goals.

“This program is not just about building homes—it’s about building healthier, more connected communities while fighting climate change,” the report concludes.

As California looks ahead, the AHSC program stands out as a proven strategy for creating lasting, systemic change at the intersection of housing, transportation, and climate action.