May 2, 2023
AND THEY’RE OFF. The race to move bills from their houses of origin has begun. Policy bills had until April 28th to move their fiscal bills to fiscal committees. May 5, 2023 is the deadline to move non-fiscal bills to the floor.

One most interesting aspects of this new session is the manner in which the 37 new legislators are being welcomed to the Legislature. Committee chairs have been reluctant to kill bills (particularly by new legislators) and are moving them through the process. This may result in a logjam as these bills move to the floors of their respective houses, but for now very few bills have been held in committee or refused hearing.

We have added a few bills to our watch list. As bills move through the Legislature, we will update them to include amendments, committee hearing votes, and CAL-ALHFA positions. We will also add bills to our watch list as appropriate.
SB 423 (Wiener) See March 20 Summary for more detailed bill description. Removes the sunset of SB 35 (Wiener, 2017) and makes the law permanent, thus providing streamlined, ministerial approval of projects in cities that have not met their Regional Housing Needs Assessment (RHNA) goals or adopted a compliant housing element. In addition, construction workers will be protected by the requirement to pay prevailing wages on projects with over ten units. On projects with 50 units or more, contractors must offer apprentices employment and pay for health care for construction workers and their dependents. Additionally, SB 423 will remove the coastal zone exemption currently present in SB 35.
Status: Passed Senate Governance and Finance 4/26. To Senate Appropriations.

The expected clash between the building trades and the carpenters over SB423 has turned into a major battle between competing labor unions, which may be coming to a head soon. The Carpenters’ Union has added gained additional support from the California-Nevada Conference of Operating Engineers and the Northern California District Council of Laborers. Operating Engineers have also joined in the support of SB423, and editorials in major newspapers are calling for an end to the labor squabble and are endorsing the labor provisions contained in the bill, not those proposed by the Building Trades.

CAL-ALHFA supports this bill and has testified and written letters in support of the bill.

SB 4 (Wiener) See detailed description of bill in March 20 Update. Senate Bill 4 Provides a streamlined process for religious organizations and nonprofit colleges to develop affordable housing on their property regardless of local zoning restrictions. This proposed legislation also guarantees by-right approval of projects so long as they are consistent with all objective standards of the jurisdiction and comply with listed environmental protections. This approval process ensures that the California Environmental Quality Act (CEQA) cannot be misused against these projects. The bill contains the labor language included in SB423.
Status: Passed Senate Governance and Finance 4/26. To Senate Appropriations.

We are concerned that local agencies may be asked to assume new monitoring and reporting on the worker protections being provided, and we are working with the state to develop effective implementation procedures that will not overburden local agency staff or strain limited resources. CAL-ALHFA supports this bill and has submitted both written and verbal testimony in support of the bill.

SB 440 (Skinner) Empowers local governments to join forces to create regional housing finance agencies to address the unique affordable housing needs in their communities.
Status: Passed Senate Governance and Finance 4/26. Referred to Senate Appropriations.

CAL-ALHFA is very pleased to see this bill advance, as it will make the process of creating local finance agencies with bonding authority much more available and much more orderly. Strong CAL-ALHFA support

AB 529 (Gabriel) Incentivizes local jurisdictions to develop underutilized commercial land into affordable housing to address California’s housing shortage. This bill adds adaptive reuse to the list of prohousing criteria that a local jurisdiction can adopt in order to be granted the pro housing designation. AB 529 also requires the Building Standards Commission (BSC), in consultation with the Department of Housing and Community Development (HCD), to update, clarify, and publish building standards for adaptive reuse projects so that Californians are not priced out of living in coastline communities.
Status: Passed Assembly Local Government 4/20. Referred to Assembly Appropriations.

This bill also expands land opportunities and speeds up the development process.

SB 83 (Wiener) Public utilities. Requires expedited connection within eight weeks of project receiving a green tag.
Status: Passed Senate Energy and Utilities. 4/24

Essential for the speedy completion of affordable housing projects. Many projects have been languishing for months waiting for utility connections, particularly PGE utilities.

AB 1449 (Alvarez) Extends CEQA exemptions to 100% affordable projects so long as project labor standards established by AB2011.
Status: Passed Assembly Housing Committee 4/26

SB 225 (Caballero) Would establish a program to provide revolving short-term acquisition capital and long-term public subsidy to acquire unsubsidized affordable homes and preserve them as permanently affordable.
Status: Placed on Senate Appropriations Suspense File 4/24
AB 84 (Ward) Would expand the eligibility of affordable housing developments that can use the state’s welfare property tax exemption, which exempts housing affordable to low-income residents from local property taxes. The law would create more certainty on the exemption and provide a hold-harmless clause for tenants whose incomes grow above the current threshold of 80 percent of area median income after move-in.

Using the property tax exemption from the time a project is approved allows additional financial resources (those which would have been used to pay property taxes) to be used for other development purposes.
Status: Hearing scheduled Rev and Tax 5/1.

AB 930 (Friedman) Would permit two or more local governments to jointly form a Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) district to unlock tax increment financing (TIF) for infrastructure and equitable development in location- efficient areas.

For jurisdictions that opt in to form a RISE district and have state-approved RISE Plans, the state will provide state sales tax increment and revolving loans to jump start equitable development and investments in supportive community infrastructure.

The RISE Act will align planning and infrastructure investments to refocus growth toward community centers while reducing car dependence, lower carbon emissions, and encourage economic development and climate resilient housing production near transit in walkable communities.
  • To qualify, districts must submit plans in compliance with state standards.
  • A minimum of 20% of all new housing must be affordable and a minimum of 50% of the funds must be spend on infill supportive infrastructure, including water, sewer, energy improvement, environmental cleanup, sidewalks, parks, transit facilities and economic development.
  • RISE districts will have access to TIF comprised of local property, sales and use tax
  • increments, and state sales tax increment.
  • RISE financed projects must pay prevailing wages to construction workers, among other labor standards.
Status: Passed Assembly Local Government 4/25. Referred to Asm. Appropriations.

Ever since the abolition of California Redevelopment Agencies in 2012, local agencies have been struggling to replace the Tax Increment Financing financing for low- and moderate-income housing that was included in redevelopment agency financing. This bill builds on other forms of Tax Increment Financing created since 2012, Enhanced Infrastructure Financing Districts and Community Revitalization and Investment Authorities. While there may only be a few jurisdictions interested in the RISE program, EVERY new financing tool is needed, including AB 930.
*Indicates CAL-ALHFA Priority Bill
Strengthening Existing Tools and Removing Barriers

*ACA 1 (Aguiar-Curry) Places a constitutional amendment on the statewide ballot that would lower the voter threshold for approving affordable housing bonds to 55%. The threshold is currently two thirds.
Status: Developing support for ballot measure.

AB 519 (Schiavo) Would require each city and county to establish a workgroup to develop a consolidated application for the purposes of obtaining grants, loans, tax credits, credit enhancement, and other types of financing for building affordable housing and developing a coordinated review process for the application.
Status: Passed Assembly Housing. Referred to Asm. Appropriations.

AB 510 (Jackson) Would require each city and county to establish a local land trust, for the purposes of holding and developing real property within the jurisdiction. The bill would require the local land trust to be governed by the city council or board of supervisors. The bill would also exempt a development project within a local land trust from CEQA.
Status: Passed Human Services. Referred to Asm. Appropriations.

*AB 480 (Ting) Prioritizes affordable housing development when public lands are sold or leased.
Status: Passed Assembly Housing 4/26. Referred to Asm. Appropriations.


*AB 1307 (Wicks) Reverses a court decision in the People’s Park case in Berkeley by clarifying that that the sound of residents’ voices should not be considered an environmental impact under CEQA.
Status: Ordered to Consent Calendar 4/26

SB 393 (Glazer) Would require a person or organization who brings a CEQA lawsuit to disclose any financial support they receive.
Status: Set for hearing May 2, Senate Judiciary

*AB 1633 (Ting) Will end the inappropriate abuse of CEQA by jurisdictions that attempt to block new housing developments that have already been found in compliance with local and state land use and environmental regulations.
Status: Passed Natural Resources 4/27. Referred to Asm. Appropriations

*SB 469 (Allen) Would expand Article 34 exclusions to include housing built with funding from state or federal low income housing tax credits or state funding sources.
Status: Passed Senate Housing 4/18. Hearing set May 1. Senate Appropriations


AB 821 (Grayson) Would require localities to amend zoning ordinance that are inconsistent with their general plan within 90 days and by deeming certain applications for housing development projects complete for purposes of the Project Streamlining Act. The bill would require localities to approve or disapprove the application at any of the five hearings required by the act. The bill would prohibit localities from disapproving the housing development project or requiring the project developed at a lower density, unless it first makes written findings supported by a preponderance of the evidence.
Status: Passed Assembly Housing. Referred to Asm. Appropriations.

SB 341 (Becker) More appropriately aligns pro housing incentives to projects where local programs are the applicants. Exempts developers from pro housing bonus points requirement.
Status: On Senate Floor. 5/1.


*AB 578 (Berman) Caps HCD monitoring fees so that more money can be leveraged to building housing.
Status: Assembly Appropriations Suspense File.

*SB 482 (Blakespeare) Would require HCD to offer capitalized operating reserves to supportive housing units developed under the Multifamily Housing Program.
Status: On Senate Floor 5/1

*AB 1657 (Wicks) Would place an affordable housing bond before the voters in Fall of 2024.
Status: Assembly Appropriations Suspense file

*AB 1053 (Gabriel) Would reduce affordable housing costs by funding HCD loans during construction.
Status: Assembly Appropriations Suspense file

AB 346 (Quirk-Silva) Would allow TCAC to pair enhanced state low-income housing tax credits with either 9% or 4% federal credits in years when CDLAC is competitive.
Status: Assembly Appropriations Suspense file

In preparing this report CAL-ALHFA referred to work done by the
following advocacy organizations:
Terner Center
California Housing Partnership
Non-Profit Housing Association of Northern California
California Housing Consortium
California YIMBY
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For further information contact:
Mary Ellen Shay, ED
916 444 0288 - office
916 799 0119
CAL-ALHFA was established in 1989 to represent local housing professionals and agencies in the California State legislature and State housing programs. We also work on housing issues at the federal level. CAL-ALHFA is a non-profit organization with a broad based membership including public and private agencies which develop, finance, and administer programs to create affordable housing in California.