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Community Development Commission seeks stability as general liability premiums erode affordable housing leverage
Summary
CDC presented a $111 million FY25–26 operating budget and warned that soaring general liability (GL) insurance premiums are forcing flexible housing dollars away from development, reducing the agency’s ability to leverage private capital for affordable housing.
The Community Development Commission (CDC) on Wednesday described a $111 million preliminary operating budget for 2025–26 and warned supervisors that steep increases in the county’s general liability premiums threaten the agency’s ability to fund affordable housing projects.
Commission leaders showed examples of recently completed projects — including a 164‑unit mixed‑income development at 2150 West College Avenue — and explained how restricted state and federal funding drives most CDC work. CDC staff said about 70% of the commission’s funding comes from external sources and that only about 1% of its budget is county general fund — but that limited flexible funding is precisely what makes local leverage possible.
Michelle Whitman, CDC executive director, and deputy Rhonda Kauffman described how rising GL premiums require CDC to divert flexible dollars that would otherwise support affordable housing commitments. Whitman said a $400,000 increase in GL premiums in a fiscal year equates to roughly 13 affordable units forgone in the near term once leverage and project phasing are considered; CDC staff added that local funding typically leverages substantial private and tax‑credit financing, magnifying the long‑term impact.
The commission requested extensions of time‑limited positions to preserve program continuity for rental assistance, housing negotiation and occupancy functions and asked for board support in a constrained grant environment. CDC leaders said they are proceeding with projects such as Tierra de Rosas and George’s Hideaway and are preparing notices of funding availability for project‑based vouchers and other programs.
Supervisors thanked CDC staff and sought detail on several small‑program funds including housing rehab and local flood elevation programs; CDC staff said those programs continue to operate and the commission will provide updates.
No board votes occurred; the CDC’s staffing and premium concerns will be folded into broader budget deliberations.
