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Industry Insight — May 2026

Affordable Housing News...

 
 

NOTE FROM THE EXECUTIVE DIRECTOR

" We continue to have some real champions for affordable housing in the Capitol, whose commitment to maintaining the housing momentum we’ve built over the last decade shows no sign of flagging."


After spending last week in Sacramento meeting with members and staff from almost a dozen legislative offices, I can say this: We continue to have some real champions for affordable housing in the Capitol, whose commitment to maintaining the housing momentum we’ve built over the last decade shows no sign of flagging. It’s a privilege to represent our industry, and our partnerships with state leaders have given us a strong foundation for the work ahead.


The new few months will be a true test, as we seek to advance all of the issues we’re engaged on at the same time—from restoring housing funding in this year’s budget and passing a critically-needed housing bond to ensuring the Administration’s proposed reorganization of the housing finance system includes the transparency and flexibility needed to keep the affordable housing pipeline moving.


We will learn more about our progress over the next month—after the Governor releases his revised May budget and the Legislature has a chance to respond, while bond bills make their way to final floor votes. With the help of the champions we’ve developed in the Legislature, we’ll keep making our case about the need for action: This year’s budget should be a bridge to a housing bond, and both require ongoing access to a steady, stable housing financing system.


Californians are demanding action on affordable housing, and this summer is a chance to deliver—on all three of these fronts, at the same time.


As we get closer to the finish line, we thank you as always for your support! 

Sincerely,

Ray Pearl

In Case You Missed It

  • The Senate and Assembly recently released their budget plans ahead of the release of the Governor’s May Revision. Both plans propose to allocate funding to the state’s Low-Income Housing Tax Credit Program in the 2026-27 budget. The Assembly’s budget plan also includes a commitment to pushing for a housing bond. The Senate’s budget plan is available here. The Assembly’s budget plan is available here. CHC strongly supports the housing investments included in both proposals and will continue to urge the Legislature and the Administration to fund critical affordable housing programs in the final 2026-27 budget. Our budget letter is available here.


  • CHC recently joined a coalition letter raising “significant concerns” with a new proposal related to the state’s cap-and-invest program — which threatens to zero out the funding available to the Affordable Housing and Sustainable Communities (AHSC) program. A set of proposed regulations introduced by the California Air Resources Board in April would increase cap-and-trade allowances by nearly $2 billion annually to support the state’s utility companies, reducing the Greenhouse Gas Reduction Fund by a commensurate amount and threatening to wipe out the AHSC funding adopted in last year’s climate package. The coalition letter CHC signed onto is available here.


  • Circulate Planning & Policy recently released a report titled “Win-Win Bonus: How Bonus Law quietly transformed California’s housing approvals.” The report details the impact of Density Bonus Law in California. Data shows that Density Bonus Law has been used to approve more than 140,000 homes overall, including more than 69,000 deed-restricted affordable homes, since 2021. 


Legislative Round Up

The deadline for bills with fiscal impacts to move from policy committees and to the Senate and Assembly Appropriations Committees was Friday, April 24th. Several of CHC’s priority bills moved out of policy committees by the deadline and are now awaiting consideration in the Appropriations Committees. Below you will find more information regarding our priority bills. 


CHC Priority Bills


  • AB 736 (Wicks)/SB 417 (Cabaldon) – Affordable Housing Bond Act of 2026: These measures would authorize $10 billion in funds through a statewide housing bond to support critical affordable housing programs. Both bills are pending hearings in Senate and Assembly Appropriations Committees.


  • AB 2748 (Quirk-Silva) – Delaying EV Readiness Requirement: Delays the implementation of the new requirements for the installation of low power Level 2 or electric vehicle charging receptacles under the 2025 California Green Building Standards Code. This bill is set to be heard in Assembly Appropriations Committee on Wednesday, May 13th.  


  • AB 750 (Quirk-Silva) – Portfolio Reinvestment Program Changes: Expands the universe of projects that can qualify for the Portfolio Reinvestment Program. The bill is pending referral to policy 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 Assembly Appropriations Committee on Wednesday, May 13th.
  • 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 is set to be heard in Assembly Appropriations Committee on Wednesday, May 13th.
  • 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. The bill 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 is set to be heard in Assembly Appropriations Committee on Wednesday, May 13th.
  • 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 currently on the Assembly Appropriations Committee’s Suspense File.
  • 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 is set to be heard in Assembly Appropriations Committee on Wednesday, May 13th. 



 

Federal Update from David Gasson

Spring has finally sprung on the east coast and having just come back from a conference in southern California, I am so happy to have the weather here on the Atlantic seaboard closely mimic that on the Pacific coast. While the warm sun has definitely improved my spirits, our friends in Congress are getting more and more restless. And why not, for a vast number of them are looking at the political climate and surmising that their political futures are either looking up or looking bleak. You can never be to certain how the political winds will blow and it is certainly too early to make predictions about what will happen five months from now on Election Day. That being the case, our friends in DC that actually take their day job seriously have a few more items on their “to do” lists.


We are getting close to “down to the wire” time on the housing bill and it feels like the winds are blowing in our direction. The greatest hangup preventing passage of the 21st Century ROAD to Housing Act is Section 901, dealing with private equity’s role in housing. While the language addressing single-family homeownership seems to have bipartisan support...

 

Affordable Housing News of the Month

Congress is finally tackling the housing crisis. What will it mean for California? (San Francisco Chronicle)

 

California considering a first of its kind idea to boost factory-built housing (CalMatters)

 

A new homelessness strategy is sweeping California (CalMatters)

 

Under L.A. mayor’s $300-million homeless program, 40% have returned to the street (Los Angeles Times)

 

Does a new report offer a way out of California’s home insurance crisis? (San Jose Mercury News)

 

A plan to cut a California tax is going to voters. Why LA’s ‘mansion tax’ is at the center of it. (CalMatters)

 

Hertzberg’s $25 billion homeownership bond measure qualifies for the ballot (Politico)

 

San Jose looks for new ways to pay for affordable housing (San Jose Mercury News)

 

This Bay Area affordable housing project is finally rising. The real test is what comes next. (San Francisco Chronicle)

 

Cities scramble to comply with or fight major state housing law (CalMatters)

 

CHC's Housing Hall of Fame recognizes dedicated individuals who have shown a continuing commitment to affordable housing through their involvement in financing, development, investment, advocacy, or the legislative process that has contributed to the greater understanding and advancement of affordable housing throughout California.

 

Please join us on May 22nd to celebrate the 2026 honorees

Bill Witte & Beth Mullen!

Register for CHC's 2026 Policy Forum & California Housing Hall of Fame Awards

Join us for networking, policy discussions and

a celebration of the 2026 California Housing Hall of Fame honorees.

 

May 22, 2026, 8:30am-2:00pm

 

Learn more our 2026 California Housing Hall of Fame honorees and

the 2026 event program here.

 
 

California Housing Consortium

30141 Agoura Road, Suite 106

Agoura Hills, CA 91301

818-735-9551 phone


Sacramento Office

1107 9th Street, Suite 710

Sacramento, CA 95814

916-272-2325 phone


calhsng.org

 
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