Trump Bill Could Unlock New Funding for Silicon Valley Affordable Housing
SAN JOSE, CA – A newly reintroduced bill from former President Donald trump, initially proposed during his management, could potentially unlock significant federal funding for affordable housing projects across Silicon Valley, offering a potential lifeline to stalled developments and a boost to the region’s efforts to address its severe housing crisis. The “Yes In My Backyard Act,” or YIMBY Act, aims to incentivize cities to reduce restrictive zoning regulations that limit housing density, making them eligible for competitive grants.
While Silicon valley has already invested heavily in local affordable housing initiatives – completing 700 affordable units across 61 developments, including Blossom Valley Senior Apartments, Villas on the Park, and Agrihood senior Apartments – progress has been hampered by funding challenges. San Jose voters approved Measure E in 2020 to fund affordable housing construction, but the City Council later redirected 90% of those funds toward temporary housing for the next two fiscal years, putting 13 projects on hold and delaying over 1,500 new homes. The YIMBY Act could provide a crucial supplemental funding source, especially as regional and state-level efforts have faced setbacks.
The YIMBY Act works by withholding certain federal housing funds from cities that maintain zoning rules preventing the growth of more housing. This includes restrictions on density, minimum lot sizes, and parking requirements. Cities that adopt policies allowing for increased housing supply would then be able to compete for grants to support affordable housing projects.
“$10 billion sounds like a lot of money, but once that’s spread out over the state, that goes pretty fast,” said Matt ishimatsu, highlighting the ongoing need for diverse funding streams. ”We would still need local funding,especially if we want to take full advantage of the newly available tax credits.” The potential influx of federal funds from the YIMBY Act could complement state initiatives like Assembly Bill 736 and Senate Bill 417, which propose a $10 billion state bond for affordable housing, and help offset the loss of funding from redirected local sources and the failure of Regional Measure 4, a proposed $20 billion Bay Area housing bond.The bill’s success hinges on its passage through Congress and the willingness of Silicon Valley cities to adopt zoning reforms. Advocates believe the YIMBY Act represents a significant opportunity to address the region’s affordability crisis, but warn that local action will be critical to maximizing its impact.
