1st of the Month - LeSar Portfolio of Firms

Bringing you updates on legislation, policy, and other news relating to middle-income and affordable housing, homelessness, and sustainable communities.

JANUARY 2026

FEDERAL UPDATES

Two Bills, One Deadline: How Congress Is Navigating Housing Reform Heading into 2026

As Congress begins its 2026 legislative session, lawmakers continue negotiating how to fund Federal housing and homelessness programs amid a looming continuing resolution (CR) deadline of January 30, 2026, and an agreement between the Chairs of the Senate and House Appropriations committees for lower total funding in FY 26.

Unless appropriations bills are enacted by the deadline, another CR or omnibus funding package will be needed to prevent lapses in funding. Both the House and Senate have signaled bipartisan interest in advancing major housing reforms and are approaching these priorities through two overlapping legislative vehicles, reflecting both shared goals and ongoing committee and institutional differences.

by Jennifer LeSar

Founder and CEO

LeSar Portfolio of Firms

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STATE UPDATES

California Legislative and Budget Outlook: A Session Shaped by Deadlines, Feasibility, and Transition

As the 2026 legislative session begins, California policymakers are entering a compressed and consequential January. The Legislature reconvened on January 5, 2026, amid early bill-introduction deadlines and the Governor’s budget release on January 9.

At the same time, proponents of 2026 ballot measures are racing toward the spring deadline to qualify initiatives for the November ballot, ensuring that housing, CEQA, and local finance debates will unfold simultaneously inside and outside the Capitol.

by Jacqueline Woo

California Legislative Analysis Manager

Global Policy Leadership Academy

Article Contributor:
Holly Fraumeni de Jesus

Political Consultant

Lighthouse Public Affairs

Consolidated Plan Support in California’s Central Valley Shows Need to Address Affordable Housing and Homelessness Challenges

As the new Federal administration budget negotiations continue, localities need continued support to prepare their Consolidated Plans, comprehensive planning documents required by the U.S. Department of Housing and Urban Development (HUD).

LeSar Development Consultants (LDC) was engaged by three Central Valley jurisdictions - the City of Modesto, Stanislaus County, and the City of Madera - to support the development of their five-year 2025–2030 Consolidated Plans.

by Daniel Serrano

Senior Associate, AICP

LeSar Development Consultants

RECENT INDUSTRY REPORTS

Mayors Applaud Passage of Housing for the 21st Century Act in House Committee | U.S. Conference of Mayors | December 2025
The Potential End of Emergency Housing Voucher Funding: Public Housing Agencies’ Search for Solutions | Terner Center for Housing | December 2025
Building Renter Wealth: An Evaluation of Shared Prosperity Rental (SPR) Housing Program Design and Feasibility | UCLA Lewis Center | December 2025
The Impact of Residential Mobility on Segregation in California | UCLA Lewis Center & California Housing Partnership | December 2025
Californians’ Concern About Homelessness Has Softened | Public Policy Institute of California | October 2025

WHAT WE'RE READING

Cities Can’t Punish Outreach Workers for Helping Homeless Californians Under New Law | CalMatters | December 28, 2025
This Program Gets Homeless People into Housing Fast. Will It Be One of the Last? | San Diego Union-Tribune | December 28, 2025
Trump Says ‘Housing First’ Failed the Homeless. Here’s What the Evidence Says. | New York Times | December 25, 2025
Year in Review: Big Changes to California Housing Policy | CalMatters | December 24, 2025
Why Homeownership in California Isn’t Nearly the Financial Slam Dunk It Once Was | CalMatters | December 19, 2025
What’s in the Housing for the 21st Century Act? | Bipartisan Policy Center | December 18, 2025
Congress Must Act to Prevent Cuts That Would Leave Hundreds of Thousands at High Risk of Homelessness | Center on Budget and Policy Priorities | December 17, 2025
20% of Sacramento Shelter Guests go on to Permanent Housing. Is there a Better Way? | Sacramento Bee | December 12, 2025
HUD Temporarily Withdraws Continuum of Care NOFO Amid Program Uncertainty | National Association of Counties | December 8, 2025
With Homelessness Rising, New Federal Rules Could Benefit States That Take Tougher Approaches | Stateline | December 5, 2025

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With a diverse range of subject matter expertise and an unwavering commitment to equity, access, and excellence, the LeSar portfolio of companies is uniquely positioned to drive the systemic changes and capacity building necessary to address the housing affordability and homelessness crises.

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