Housing finance and development: Sacramento Regional Housing and Homelessness Joint Powers Authority Act.

Section 6539.9.5(b) had a leftover drafting artifact 'The By January 1, 2028' which was cleaned up to 'By January 1, 2028' in the enrolled version.

The legislative counsel's digest removed the phrase 'as amended' and fixed a duplicated word ('bill bill' became 'bill'), reflecting that the bill is now in its final enrolled form.

Enrollment language was added including Senate passage date (August 27, 2026), Assembly passage date (August 26, 2026), and governor receipt/approval blocks.

A deadline of January 1, 2028 was added to Section 6539.9.5(b), requiring the County of Sacramento and five cities to establish the joint powers authority by that date rather than at an unspecified time.

Subsection (7) requiring the JPA to 'be designated as the federally recognized continuum of care' was deleted, removing the obligation for the JPA itself to hold that federal designation.

Assembly Member Caloza was added as a coauthor alongside Assembly Member Flora, expanding legislative sponsorship.

The bill number changed from 90 to 89, and 'Point in Time Count' was corrected to 'point-in-time count' in the findings section.

The bill's approach shifted from prescriptively creating and naming a specific agency (the 'Sacramento Area Housing and Homelessness Agency') to requiring six jurisdictions to establish a joint powers authority with general requirements. The new version is titled the 'Sacramento Regional Housing and Homelessness Joint Powers Authority Act' and leaves governance details, program administration, and funding mechanisms to be determined in the JPA agreement itself.

Assembly Member Caloza was added as a coauthor alongside Assembly Member Flora, indicating broader legislative sponsorship.

Removed all detailed statutory provisions including: specific 11-member board composition with allocation by jurisdiction, executive director succession rules, bylaws requirements (meeting frequency, code of ethics, reimbursement), a 3-year strategic plan deadline, a January 1, 2028 board establishment deadline, specific program administration mandates (Section 8, CDBG, HOME, ESG, CoC, HOPWA, state programs), compliance with enumerated federal regulations, designation as recipient of local housing trust funds and ordinance fees, regional entity status for state funding programs, successor employer/labor relations provisions, creation of a Homelessness Division including Sacramento Steps Forward, coordination requirements with specific named local departments, a 7-member standing advisory board with quarterly meetings, and a prohibition on eminent domain.

Added new broad requirements for the JPA: it must be 'a formal, robust joint powers authority,' must 'target both housing and homelessness,' must 'incorporate meaningful resources to provide services,' must have a governance structure including lead entities from both the Continuum of Care and the Sacramento Housing and Redevelopment Agency, must hold monthly public meetings with public participation, must develop a committee structure for community voice, and must exercise oversight over the Homeless Management Information System, Coordinated Access System, and Point-in-Time Count.

Removed all statutory definitions (Agency, Governing board, Qualified local agency with 50,000 population threshold). The new version simply names the six participating jurisdictions directly without a definitional framework or population-based eligibility criteria for additional members.

The legislative findings were consolidated: the separate finding about $400 million to the city and county plus $450 million to Sacramento Steps Forward was merged into a single finding of 'nearly $450,000,000,' and the finding about $173.3 million in HHAP funding from 2019-2025 was removed entirely.

All Health and Safety Code provisions were removed: Section 50246 (requiring HHAP funds to consider former foster youth and low-income households), amendments to Section 50675.1.3 (Homekey program disbursement rules), and Section 50675.17. The bill no longer addresses state housing finance or development programs.

The bill's title and digest were changed from covering 'Multifamily Housing Program, Homekey, and HHAP' to focusing solely on the 'Sacramento Regional Housing and Homelessness Joint Powers Authority Act.' The scope is now limited to establishing and governing the JPA under the Government Code.

The digest now explicitly requires the County of Sacramento, City of Sacramento, City of Elk Grove, City of Rancho Cordova, City of Citrus Heights, and City of Folsom to participate in and work together to establish the JPA, and to bring the Continuum of Care under its jurisdiction while maintaining federally required composition.

Findings about co-ed shelters being over 90 percent male and unsafe for women, victims of trafficking, and abuse were removed from the legislative findings section.

New legislative findings were added stating that over 7,500 people experience homelessness on any given night in Sacramento County, that the homeless population increased 13 percent from 2024 to 2026, and that since the bill's introduction, significant progress has been made toward a coordinated regional approach but no final governance agreement has been approved.

The finding about state funding now specifies that over $400 million was given to the City and County of Sacramento AND nearly $450 million to Sacramento Steps Forward (previously only referenced $400 million to the County). The finding about the City of Sacramento lawsuit now notes the litigation remains unresolved.

Assembly Member Flora was added as a coauthor of the bill.

CDBG administration: Qualified local agencies already collecting and administering their own CDBG programs as of July 1, 2025 now retain responsibility instead of having it transferred to the new agency. Agencies without prior board representation may also elect to begin administering CDBG themselves.

HOME Investment Partnerships Program: Qualified local agencies already administering HOME funds as of July 1, 2025 retain control. Agencies that receive HOME through the old SHRA but lacked board representation may elect to continue receiving through the new agency. Agencies with no prior involvement may elect to begin administering their own HOME programs.

New programs: The old version exempted only the City of Sacramento from the requirement to transfer new program administration to the agency. The amended version removes this exception, allowing ALL qualified local agencies (including Sacramento) to maintain and retain responsibility for any new programs that become available.

Extensive new legislative findings documenting over $400 million in state homelessness funding to Sacramento County, the county's third-highest chronic homeless population nationally, 72% unsheltered rate, 19% rise in student homelessness, and a detailed timeline of failed JPA attempts from 2010 through 2023 including Measure O, Grand Jury recommendations, and lawsuits against Sacramento and Elk Grove.

Local housing trust funds and ordinance fees: Previously the new agency was the designated recipient of ALL such funds from participating entities. Now, any qualified local agency that collects these funds as of July 1, 2025 retains responsibility for their administration and oversight.

Bill description updated to add the word 'Agency' at the end, and amendment date changed from April 30 to June 1, 2026 with the prior date retained as a secondary line.

The requirement that the Sacramento Local Agency Formation Commission form and appoint an independent task force to consolidate all entities for establishing the agency is eliminated. The old provision specified that staff of existing entities could not be appointed, that the task force would dissolve 60 days after the governing board was established, and that the Sacramento Housing and Redevelopment Agency staff would provide administrative support.

The explicit duty for the agency to serve as the United States Department of Housing and Urban Development designated Continuum of Care pursuant to Section 578 of Title 24 of the Code of Federal Regulations is removed from the list of required duties in subdivision (c). The agency still administers the Continuum of Care Program as a funding program, but it is no longer listed as a standalone governance duty.

Removed the requirement that regional housing needs allocations for all participating entities be consolidated into a single regional goal administered by the agency, and removed the 20 percent reduction in the total regional housing needs assessment allocation. Each jurisdiction will now retain its individual RHA allocation rather than having them pooled and reduced.

Removed the provision requiring that housing tax increment revenues derived from former redevelopment areas be transferred to the agency for use exclusively on affordable housing projects, and removed the authorization for the agency to issue bonds secured by those revenues.

Added a requirement that the agency be the designated recipient of all local housing trust funds and local housing ordinance fees collected by participating entities, but with a restriction that these funds can only be spent within the jurisdiction from which they were originally collected and for their original purposes.

Added Section 6539.9.19 prohibiting the agency from acquiring property by eminent domain, a new restriction on the agency's powers not present in the prior version.

Added a provision requiring qualified local agencies (except the City of Sacramento) to maintain and retain responsibility for administration and oversight of any new programs that may become available to local governments, including collection, allocation, and disbursement of all funds.

Removed Article 3 (commencing with Section 50245) from the additions to Chapter 6.5 of Part 1 of Division 31 of the Health and Safety Code, which had contained the housing needs allocation consolidation provisions. The bill now only adds Article 4 (commencing with Section 50246).

Governing board members must now be elected officials (plural) from each qualified local agency, rather than just one elected official per agency. Alternates and vacancy replacements must also be elected officials from the same body as the primary member.

The governing board must meet no fewer than 10 times per year.

New Section 6539.9.11 requires the agency to be the successor employer to the Sacramento Housing and Redevelopment Agency for all labor relations purposes, including recognition of employee organizations, enforcement of existing collective bargaining agreements, and assumption of pending grievances and arbitration proceedings.

Added specific continuity provisions requiring the agency to continue administering Community Development Block Grant funds and the HOME Investment Partnership Program as they were administered by the Sacramento Housing and Redevelopment Agency as of July 1, 2025.

The governing board must be established no later than January 1, 2028.

Local housing trust funds and ordinance fees collected by participating entities can only be spent within the jurisdiction from which they were originally collected and for the purposes for which they were originally collected. This restricts the agency's ability to pool and reallocate local housing funds across jurisdictions.

New Section 6539.9.13 establishes a Homelessness Division within the agency, comprised of Sacramento Steps Forward and participating members from the Sacramento Continuum of Care, including individuals with lived experience of homelessness.

The standalone Section 2 declaring legislative intent to ensure state housing funding is allocated for extremely low income households experiencing traumatic homelessness, street violence, domestic violence, sexual abuse, or human trafficking has been removed from the bill.

The bill is now classified as imposing a state-mandated local program (changed from 'no' to 'yes'), meaning local agencies may be entitled to state reimbursement for costs mandated by the bill.

Added a new Article 1.5 (Sections 6539.9.5-6539.9.9) to the Government Code creating the Sacramento Area Housing and Homelessness Agency by restructuring, expanding, amending, and renaming the existing Sacramento Housing and Redevelopment Agency joint powers authority.

The new agency must include the County of Sacramento and qualified local agencies (cities with population of at least 50,000), specifically naming Citrus Heights, Elk Grove, Folsom, Rancho Cordova, and Sacramento.

Regional housing needs allocations for all participating entities are consolidated into a single regional goal administered by the agency, with the total allocation reduced by 20 percent from what would otherwise apply to each entity individually.

Changed the state-mandated local program designation from 'no' to 'yes' in the legislative counsel's digest, reflecting that the new agency structure imposes duties on local officials.

The agency is designated as the regional authority to develop and preserve affordable housing, coordinate homelessness prevention and response services including the Coordinated Entry System, serve as the HUD-designated Continuum of Care, apply for and administer federal/state/local funding, and manage a comprehensive strategic plan.

Established an 11-member governing board with specific appointment allocations: 3 from Sacramento City Council, 3 from County Board of Supervisors, 2 from Elk Grove City Council, and 1 each from Citrus Heights, Folsom, and Rancho Cordova city councils. Each member may appoint an alternate.

The agency must adopt a comprehensive strategic plan to address housing and homelessness no later than three years from the date the restructured joint powers agreement takes effect, and must submit it to the Legislature.

The agency must establish and maintain a standing advisory board of seven members, including at least one individual currently or formerly experiencing homelessness and at least one current resident of public or low-income housing. The advisory board meets quarterly but has no voting authority over governing board decisions.

The agency becomes the designated recipient of all local housing trust funds and local housing ordinance fees collected by participating entities, including the Sacramento County affordable housing ordinance fee and the City of Sacramento mixed income housing ordinance fee.

All housing tax increment revenues derived from former redevelopment areas allocated to participating cities or the County of Sacramento must be transferred to the agency for use exclusively in affordable housing development, preservation, and administration. The agency may issue bonds secured by these revenues.

Added a fiscal note providing that if the Commission on State Mandates determines the bill contains costs mandated by the state, reimbursement shall be made pursuant to applicable statutory provisions.

The Sacramento Local Agency Formation Commission must form an independent task force to consolidate all entities for establishing the agency. The task force dissolves 60 days after the governing board is established.

Removed 'homeless persons' as a separate category from the list of populations that must be given consideration in HHAP program rounds (Section 50245) and Homekey funding (Section 50675.1.3(n) and Section 50675.17). The remaining categories are former foster youth and extremely low income, very low income, and lower income households.

Changed 'Foster youth' to 'Former foster youth' in three separate sections (50245, 50675.1.3(n), and 50675.17), narrowing eligibility to people who have already exited the foster care system rather than including current foster youth.

Restructured the population priority language so that the qualifier 'who need safe and stable housing and are experiencing traumatic homelessness, street violence, domestic violence and abuse, sexual abuse and assault, or human trafficking' now applies to all listed groups (former foster youth, homeless persons, and low-income households) rather than only to the income-based category as before.

Removed the amendment to Section 34200 of the Health and Safety Code, which was a nonsubstantive change to the title of the Housing Authorities Law. The bill no longer touches that chapter.

Changed the fiscal committee designation from 'no' to 'yes,' meaning the bill now requires review by the Legislative Fiscal Committee before passage.

The bill's scope expanded from a single nonsubstantive citation fix in Section 34200 to amendments across Sections 50675.1.3 (Homekey), 50675.17 (Multifamily Housing Program), and a new Article 3 (Section 50245) for HHAP rounds.

New requirement that the department give consideration to foster youth, homeless persons, and extremely low income, very low income, and lower income households experiencing traumatic homelessness, street violence, domestic violence, sexual abuse or assault, or human trafficking across Homekey, HHAP, and the Multifamily Housing Program.

At least 8 percent of Homekey funds must be available for projects serving homeless youth or youth at risk of homelessness as defined in federal regulations (24 CFR Part 578.3).

Up to 5 percent of ARPA Coronavirus State Fiscal Recovery Fund moneys and up to 5 percent of General Fund moneys appropriated for Homekey may be used for program administration.

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now carries a state-mandated local program or fiscal impact that was not present in the introduced version.

Homekey-funded projects are deemed consistent with local plans and exempt from conditional use permits, discretionary permits, or other discretionary reviews or approvals at the local level.

Each Homekey award must be expended within 8 months of the award date, with possible extensions at the director's discretion. Funding is to be accepted and issued on a continuous over-the-counter basis until exhausted.

Detailed annual reporting requirements added for Homekey, including amounts expended, property locations, units produced, individuals housed, operating subsidies capitalized, explanation of funding decision metrics, lessons learned, and proposed program changes.