Constuction of Affordable Housing in California Halted

Construction of housing units in California for low income residents has been halted since July. Money had been set aside for the construction, but due to California's budget problem, the money cannot be put to use. An article from the LA Times wrote:

Plans to build more than 16,000 housing units in California, many of them for low-income residents, have been frozen in bureaucratic limbo since July.

Voters approved funding four years ago. Last summer, state officials chose the 121 projects they want to build. Shovels were supposed to have hit the ground by now.

Yet none of the $714 million in bond money earmarked for construction has been spent -- one of the many results of California leaders' chronic inability to balance the budget.

The funding from the state is a major source of money that fund these projects. Without it, the projects cannot begin and those in charge of the construction need to have all of their money accounted for and available for use. This is not only about the issue of affordable housing in California and the U.S., it is also about California's budget problems and how it affects a lot of projects and programs that rely on the state for funding.