Industry Insight — June 2026

Affordable Housing News...

NOTE FROM THE EXECUTIVE DIRECTOR

"There is a lot to like in the final bond, but the truth is, this is just the beginning: The most critical part of this race is still ahead of us."

There’s no doubt about it: This was a good week for affordable housing. Four years after we started our work to place the next statewide housing bond on the ballot, the Governor and Legislature this week approved sending a historic $11.25 billion measure before voters in November — the largest housing bond in the state’s history.

There is a lot for us to be pleased with in the final bond, and there is no shortage of affordable housing champions in the Capitol to thank for getting us where we are today — Governor Newsom, for highlighting the need for a bond more than a year ago; Asm. Buffy Wicks (D-Oakland) and Sen. Christopher Cabaldon (D-Yolo), who shepherded bond bills through the Legislature over the last year; Senate President Pro Tempore Monique Limón and Assembly Speaker Robert Rivas, who stood up for affordable housing by introducing the final bond agreement; and finally the two budget committee chairs, Asm. Jesse Gabriel (D-Encino) and Sen. John Laird (D-Monterey), who have helped us in myriad ways as we navigated this year’s complex fiscal landscape.

Governor Newsom signs housing bond bill ahead of the deadline for legislative measures to be placed on the ballot

Housing bond advocates celebrate the passage of SB 417 with Senators Cabaldon and Arreguín

The truth is, though, this is just the beginning.

The passage of the bond this week is the starting line, and the most critical part of this race is still ahead of us: Ramping up our campaign to encourage voters to say yes to the bond and its much-needed investments in affordable housing.

We are shifting quickly into campaign mode, putting in place the team that can help share our message between now and November. We will have more to share as the campaign gets underway, but we know one thing for sure: We’ll need all of your support in the months ahead.

Thank you for helping us get this far. We’re finally ready to get this race underway.

Sincerely,

Ray Pearl

In Case You Missed It

As of this afternoon, the Governor and Legislature have not yet released the final three-party budget agreement. The Assembly and Senate approved more than $1 billion for affordable housing in the budget bill passed earlier this month, including $500 million for the Low-Income Housing Tax Credit (LIHTC), $200 million for the Multifamily Housing Program (MHP), and $900 million for the Homeless Housing, Assistance, and Prevention Program (HHAP). These resources are still subject to negotiation with Governor Newsom, who has until June 30 to sign the final budget. CHC is continuing to monitor budget talks and will provide an update on the final agreement when it is available.

While the Governor, Senate, and Assembly have not yet announced a final three-party budget deal, several budget-related bills were introduced today, which means those measures may be part of a yet-to-be-announced three-party agreement.

Two new housing trailer bills, SB 179/AB 179, contain provisions related to the new Housing Development and Finance Committee (HDFC). Until July 1, 2029, the bills allocate half of the bond capacity dedicated to qualified residential rental projects to projects funded by HDFC. This may be reauthorized after July 1, 2029, but if it is not, the bond allocation reserved for HDFC projects drops to 40% with flexibility to go up to 50% and beginning in 2028, any unused bonds must be reallocated to CDLAC by September 1. The bills also expand the make-up of HDFC to include the California State Treasurer and the California State Controller as voting members of the committee. They also include the following three non-voting members: one representative from the Department of Finance, one county representative appointed by the California Senate Rules Committee, and one city representative appointed by the Assembly Speaker. CHC is also reviewing additional provisions related to impact fees for affordable housing and changes to the administration of the Affordable Housing and Sustainable Communities Program.

The deadline for measures to be placed on the November ballot was June 25th. In addition to the housing bond, the Legislature also placed two new measures on the ballot.
Rainy Day Fund: The Save California’s Future Act, ACA 20 (Gabriel), would expand the size of California's rainy day fund by requiring the state to capture a larger percentage of spikes in capital gains revenue when they occur. Details are available here.
Local vote thresholds: As part of a deal to remove the controversial Taxpayer Protection Act from the ballot, the Legislature adopted a narrower compromise, ACA 22 (Wicks), that would require local special tax measures to be approved with a 2/3rds vote, instead of the majority vote that courts have allowed in recent years for measures introduced by citizen groups. The measure does not impact existing transfer taxes, like those created by Measure ULA (Los Angeles) and Proposition I (San Francisco).

The Legislature also reached a deal with Uber and the Consumer Attorneys of California, with both organizations removing competing measures from the ballot. The groups agreed on a compromise, SB 623 (Umberg), which would subject rideshare companies to new background check requirements while also reducing their liability in crashes.

A list of the measures placed on the ballot by the Legislature is available here. A list of other eligible statewide ballot measures placed on the ballot through citizen-led initiatives is available here.

Earlier this month, CHC members and staff joined the 2026 Affordable Housing Symposium co-hosted by the Affordable Housing Tax Credit Coalition (AHTCC) and the Housing Advisory Group (HAG). The symposium featured remarks from members of Congress, a discussion with key congressional staff, a panel regarding affordable housing hot topics, and a federal policy and advocacy update. Attendees also participated in Congressional meetings to advocate for AHTCC/HAG Policy Priorities, including the 21st Century Road to Housing Act.

California Delegation in Washington D.C.

In the News: CHC Quoted Articles

California leaders announce deal on $11 billion affordable housing bond measure

(Sacramento Bee)

Newsom, lawmakers agree to send affordable

housing bond to the ballot

(Politico Pro)

First order of business: Lawmakers take up $10 billion housing bond

(State Affairs California)

Legislative Round Up

The deadline for bills to move out of policy committees is July 2nd. The Legislature will break for summer recess next Thursday and will reconvene for the last month of session on August 3rd. Below you will find more information regarding our priority bills.

CHC Priority Bills

SB 417 (Limón and Rivas) – Veterans and Affordable Housing Bond Act of 2026: Authorizes $10 billion in funds through a statewide housing bond to support critical affordable housing programs. Signed by the Governor.

AB 2748 (Quirk-Silva) – Delaying EV Readiness Requirement: Delays the implementation of the new requirement for the installation of low power Level 2 or electric vehicle charging receptacles under the 2025 California Green Building Standards Code. AB 2748 is set to be heard in Senate Housing Committee on Tuesday, June 30th.

AB 750 (Quirk-Silva) – Portfolio Reinvestment Program Changes: Expands the universe of projects that can qualify for the Portfolio Reinvestment Program. AB 750 passed out of Senate Housing Committee and is moving to Senate Appropriations Committee.

Construction Innovation Bill Package
AB 1815 (Wicks) – Statewide Building Code for Factory-Built Housing: Prohibits cities and counties from imposing or enforcing building standards that exceed state minimum building standards on a housing construction project that utilizes factory-built housing. AB 1815 is set to be heard in Senate Housing Committee on Tuesday, June 30th.
AB 2012 (Hoover) – Reducing Factory-Built Housing Shipping Costs: Reduces shipping costs for factory-built housing by making it possible for annual permits be obtained to transport modular units. AB 2012 passed out of Senate Transportation Committee and is pending a hearing in Senate Appropriations Committee.
AB 2058 (Harabedian) – Factory-Built Housing Permitting and Inspections: Eliminates the requirement that local enforcement agencies enforce and inspect the installation of factory-built housing. AB 2058 allows developers to choose whether a local agency or a third-party quality assurance agency conducts the inspection and also caps inspection and permitting fees. AB 2058 passed out of Senate Local Government Committee and is moving to Senate Appropriations Committee.
AB 2166 (Carrillo) – Multifamily Backstop Financing Program: Establishes the Multifamily Backstop Financing Program to support multifamily projects by providing a state-backed credit backstop to enable surety companies to issue payment and performance bonds to offsite housing factories in the state. AB 2166 is set to be heard in Senate Housing Committee on Tuesday, June 30th.
AB 2185 (Quirk-Silva) – Modernizing Affordable Housing Programs to Support Factory-Built Housing: Requires various state agencies to evaluate state-funded multi-family affordable housing programs to remove any barriers and create opportunities for them to support factory-built housing. AB 2185 passed out of Senate Housing Committee and is moving to Senate Appropriations Committee.

Federal Update from David Gasson

For those that have had to sit through my updates at conferences or calls, they know I like to include the boast that we, as an affordable housing industry, keep winning. It might take time, patience and many meetings and Zoom calls, but in the end, the LIHTC and affordable housing are winning issues. Well, add another pennant to our wall.

Following overwhelming votes of 85 -5 in the Senate and 358-32 in the House, the 21^st Century ROAD to Housing Act is on the cusp of becoming law. Emphasizing the significance of the efforts of every corner of the affordable housing industry, the passage of ROAD is a testament to the perseverance and advocacy CHC and our colleagues across the country demonstrated over this long process.