Housing

(1) Existing law establishes the Department of Housing and Community Development (the department) and requires it to administer various programs intended to promote the development of housing, including mobilehome parks, as defined. Existing law, the Planning and Zoning Law, requires, before the conversion of a mobilehome park to another use, except as specified, or before closure of a mobilehome park or cessation of use of the land as a mobilehome park, the person or entity proposing the change in use to file a report on the impact of the conversion, closure, or cessation of use of the mobilehome park. Existing law requires the impact report to include a replacement and relocation plan that adequately mitigates the impact upon the ability of the displaced residents of the mobilehome park to find adequate housing in a mobilehome park. Existing law requires the report, if a closure, cessation, or change of use is the result of damage or destruction of the mobilehome park by a disaster, as defined, to include a technical service inspection report from the department that identifies the observed conditions within the park. Existing law, the Mobilehome Residency Law, governs the terms and conditions of residency in mobilehome parks. Existing law requires management, as defined, of a mobilehome park to offer the previous homeowner a right of first refusal to a renewed tenancy in the park if the park is destroyed due to a wildfire or other natural disaster and management elects to rebuild the park in the same location. Existing law, when a mobilehome tenancy is terminated due to damage or the destruction of the mobilehome park or any space as a result of a disaster, as defined, requires management to return to the homeowner any advance rental payments received from the homeowner that cover any period of time after the date of the termination, and discharges the homeowner's obligation to pay rent during any period that a homeowner is unable to occupy their mobilehome or mobilehome space due to a mandatory evacuation order pursuant to a disaster. This bill would require management to make a good faith effort to provide written status updates once per week for the first 4 weeks after a park is damaged by a disaster, resulting in one or more mobilehome units being rendered inaccessible to an existing mobilehome resident, and monthly thereafter until each displaced resident is allowed to return to occupying their mobilehome site or the mobilehome park receives final approval of a change of use, cessation of use, or closure, to the displaced residents of the park, as provided. The bill would prohibit management from restricting a resident of the park from accessing their mobilehome or mobilehome site during regular business hours to collect belongings or inspect damage to their mobilehome on any date later than 7 days after evacuation orders are officially lifted or downgraded by the local governing authority to resident-access only and would require any waiver of liability distributed by management to be limited to immunity for harm resulting from the resident accessing the mobilehome, mobilehome site, or mobilehome park. This bill would require management, before initiating or while pursuing a change of use, cessation of use, or closure related to damage or destruction of the mobilehome park by a disaster, to at least reasonably evaluate the known and estimated costs for rebuilding and reopening the park and identify all potential resources from a list maintained by the department. The bill would require the department to maintain a list of mobilehome-related programs and opportunities that could support rehabilitation or rebuilding of a mobilehome park affected by a disaster declaration and require the department to make the list available on the department's internet website. The bill would require management to submit documentation demonstrating completion of those evaluations and investigations to the department, the local jurisdiction in which the park is situated, and the residents of the mobilehome park, and would prohibit the department and that local jurisdiction from issuing or amending specified approvals and permits to management until that documentation has been submitted. By placing new requirements on local jurisdictions in which mobilehome parks are situated, this bill would impose a state-mandated local program. This bill would authorize a jurisdiction with enforcement power to require debris removal and specified testing if a mobilehome park is damaged or destroyed in a disaster resulting in one or more mobilehome units being rendered inaccessible to an existing mobilehome resident, as provided. The bill would authorize a resident organization, a displaced resident of the mobilehome park, or a public attorney, as specified, to bring an action against management that willfully violates these provisions, as provided. (2) The Planning and Zoning Law requires a legislative body, or its delegated advisory agency, before the approval of any change of use of the mobilehome park, to review the report and any additional relevant documentation and make specified findings regarding the effect on housing opportunities within the local jurisdiction. The bill would additionally provide that before the approval of any change of use the legislative body shall review documentation compliance with the specified evaluations and investigations required by the bill, and that management shall not receive approval of any change of use by the legislative body if management fails to submit that documentation. The Planning and Zoning Law also requires a legislative body, or its delegated advisory agency, before the approval of any change of use of the mobilehome park, to make a finding as to whether or not approval of the park closure and the park's conversion into its intended new use will result in or materially contribute to a shortage of housing opportunities and choices for low- and moderate-income households within the local jurisdiction. This bill would also require that finding to consider the costs of closure or conversion to the residents of the park for which closure or conversion is sought. By placing new requirements on local legislative bodies when approving a change of use for mobilehome parks, this bill would impose a state-mandated local program. (3) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. The law defines "mobilehome park" for these purposes to mean an area of land where 2 or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation. The law caps the amount by which management of a qualified mobilehome park may increase the gross rental rate for a tenancy over the course of any 12-month period. The cap is the lower of 5% of the lowest gross rental rate charge for a tenancy at any time during the preceding 12 months or 3% of that amount plus the percentage change in the cost of living. Under that law, a mobilehome park is subject to that cap if it is located within and governed by the jurisdictions of 2 or more incorporated cities. The law repeals these rent cap provisions on January 1, 2030. This bill would additionally make any mobilehome park that is located in the City of Torrance subject to that cap, as specified, and would extend the repeal of these rent cap provisions to January 1, 2036. For a mobilehome park that is located in the City of Torrance, the bill would cap the rent on January 1, 2027, at the amount of rent as of January 5, 2026, plus the maximum permissible increase described above. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Torrance.

The Planning and Zoning Law requires each planning agency to prepare and the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that contains specified mandatory elements, including an environmental justice element, or related goals, policies, and objectives integrated in other elements, that identifies disadvantaged communities, as defined, within the area covered by the general plan of the city, county, or city and county, if the city, county, or city and county has a disadvantaged community, as specified. The law requires a city, county, or city and county subject to these provisions to adopt or review the environmental justice element, or the environmental justice goals, policies, and objectives in other elements, upon the adoption of the next revision of two or more elements concurrently on or after January 1, 2018. This bill would require a city, county, or city and county to meaningfully involve disadvantaged communities in the development, adoption, and implementation of the environmental justice element, or the related goals, policies, and objectives integrated in other elements, using methods that are designed to effectively involve disadvantaged communities based on local conditions and circumstances, as specified. The bill would require a city, county, or city and county subject to these provisions to adopt or review the environmental justice element, or the environmental justice goals, policies, and objectives in other elements, upon the earliest of the adoption or next revision of two or more elements concurrently on or after January 1, 2018, or June 30, 2031, except as specified. By increasing the duties on local governments, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes the Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Existing law makes the department responsible for administering various laws relating to financial institutions, including the Banking Law, the California Credit Union Law (CCUL) , and the California Residential Mortgage Lending Act (CRMLA) , a willful violation of which is punishable as a misdemeanor. The CRMLA requires, as often as the commissioner deems necessary and appropriate, but at least once every 48 months, the commissioner to examine the affairs of each residential mortgage lender and servicer licensee for compliance with the CRMLA. The CRMLA authorizes the commissioner to examine the licensee's officers, directors, employees, or agents under oath regarding the licensee's operations. The CRMLA requires the commissioner to provide a written statement, the disclosure of which is subject to certain restrictions, of the findings of the examination, issue a copy of that statement to each licensee's principals, officers, or directors, and take appropriate steps to ensure correction of any violations of the CRMLA. This bill, the California Fair Lending Examination Act, would require, under the Banking Law and the CCUL, the commissioner to, at least once every 4 years, examine, as prescribed, the books and records of certain entities subject to the commissioner's examination authority under those laws for compliance with any nondiscrimination law applicable to mortgage lending, as specified, and would require the commissioner to provide a written statement of the findings of that examination, issue a copy of that statement to the subject's principals, officers, or directors, and take appropriate steps to ensure correction of any violations of applicable nondiscrimination laws. The bill would prohibit disclosure of that statement to anyone other than the subject entity, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. This bill would, as part of the above-described examination required by the CRMLA, require the commissioner to additionally examine the licensee for compliance with any nondiscrimination law applicable to mortgage lending, as prescribed. This bill would make a violation of an applicable nondiscrimination law a violation of the Banking Law, the CCUL, or the CRMLA, as applicable, and would authorize, under the Banking Law and the CCUL, the commissioner to examine the applicable entity's officers, directors, employees, or agents under oath regarding the entity's operations. By expanding the scope of the crimes of perjury and of violating the CRMLA, this bill would impose a state-mandated local program. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

The Planning and Zoning law requires each planning agency to prepare and the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes specified elements, including a housing element. The law requires the Department of Housing and Community Development to designate jurisdictions as prohousing, as specified. The law requires that jurisdictions that have adopted a housing element that has been found by the department to be in substantial compliance with specified requirements and that have been designated as prohousing based on their adoption of prohousing local policies, as defined, be awarded additional points or preference in the scoring of program applications for certain programs. Existing law authorizes the legislative body of a city or county to designate a proposed enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community, including, among other things, the acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income for rent or purchase, as specified. Existing law authorizes an infrastructure financing plan to contain a provision for the division of taxes levied upon taxable property in the area included within the district, and authorizes the public financing authority of the district to issue bonds, as provided. This bill would authorize a city or county that is designated as prohousing to establish a prohousing enhanced infrastructure financing district if certain requirements are met, as specified. The bill would prescribe requirements applicable to those districts. The bill would expand the definition of "prohousing local policies" for purposes of the above-described provisions to include the establishment of one of these districts, and would require that the jurisdiction that established, and projects located within, a district receive enhanced points or preference than the baseline provided to other prohousing jurisdictions.

Prospective federal law, the federal 21st Century ROAD to Housing Act (H.R. 6644) , prohibits a large institutional investor from purchasing, or entering into a contract to directly or indirectly purchase, any single-family home, except as specified. If the above-described federal legislation is enacted, this bill would authorize the Attorney General, district attorney, or county counsel to coordinate with the Secretary of the United States Department of Housing and Urban Development, the Director of the United States Federal Housing Finance Agency, the Chair of the United States Securities and Exchange Commission, and the Secretary of the Treasury of the United States in the implementation of federal regulations, as described, related to violations of federal law involving tenants residing in properties owned, maintained, and managed by institutional investors. Existing law establishes various real estate disclosure requirements applicable to the transfer of residential real property. Before entering into specified transactions relating to residential real property, including an individual sale of residential real property, this bill would require an institutional investor, as defined, to provide written notice of the institutional investor's intent to sell the property to each tenant at least 90 days before advertising the residential real property for sale in a multiple listing service, as specified. The bill would require the notice to include, among other things, a statement that the tenant has the right to remain in possession until the end of the lease term, except as specified. For sales of residential real property containing 1 to 4 residential dwelling units by an institutional investor, this bill would require the institutional investor to, among other things, only accept offers from prospective owner-occupants, including any tenant in possession, during the first 30 days after the property is listed for sale. The bill would require the prospective owner-occupant to submit with their offer an affidavit or declaration executed under penalty of perjury stating they are purchasing the residential real property as an owner-occupant, as described. The bill would subject a prospective owner-occupant or an institutional investor to criminal or civil liability. The bill would also require an institutional investor that sells residential real property to record, or cause to be recorded, a certification of compliance under penalty of perjury, as specified. The bill would require the failure to record the certificate of compliance to result in a civil penalty, as described. By expanding the scope of existing crimes, the bill would impose a state-mandated local program. This bill would also authorize the Attorney General, district attorney, city attorney, and tenant to bring an action in the superior court to enforce the bill's provisions, and upon prevailing, would allow for injunctive relief and civil penalties, as specified. The bill would require its provisions to be construed consistently with the above-described federal act, if enacted, and would make its provisions severable. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law establishes various advisory boards and commissions in state government with specified duties and responsibilities. This bill would create the California Latino Commission to address the inequities faced by the Latino community in housing, education, economic mobility, labor, and health care. The commission would consist of 9 members who have demonstrated expertise in specified areas, including housing policy and advocacy and economic development. The bill would task the commission with, among other things, collecting and analyzing data, developing recommendations, and monitoring the implementation of state programs and policies affecting the Latino community, as specified. The bill would require the commission to work with other state agencies and to submit an annual report to the Governor and the Legislature. The bill would establish that the commission and its activities would be supported by appropriations by the Legislature from the General Fund and grants from federal and private sources. The bill would repeal these provisions on January 1, 2036.

(1) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor's Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to issue bonds, make loans, and provide financial assistance for various types of projects that qualify as economic development or public development facilities. This bill would enact the Community Stabilization Act. The bill would require the I-Bank to develop and administer a program to issue a security, and to cease issuing a security on January 1, 2030. The bill would specify that the purpose of the program is to help stabilize property values in disaster-affected areas by allowing qualified investors, as defined, to purchase tradable securities, with the funding allocated to qualifying investment entities that purchase and manage residential land until it can be resold at fair market value. The bill would require profits from the land investments to be shared among investors and the I-Bank according to certain percentages, with qualifying investment entities being reimbursed for their administrative costs. This bill would establish various requirements for the security, including that it be tradeable, comply with specified municipal bonding requirements, and that it be funded by investments made by qualified investors using funds available pursuant to the federal Community Reinvestment Act of 1977. The bill would require the security to repay the investment upon a liquidity event and within 7 years of the purchase of an investment property, and would describe a liquidity event as the refinance or sale of the investment property. This bill would require funds raised from the purchase of the security to be deposited in the Community Stabilization Fund, which would be created by the bill, and would require all moneys in the fund to be continuously appropriated to the I-Bank. The bill would require the I-Bank to allocate moneys in the fund to qualifying investment entities to be invested in the Counties of Los Angeles and Ventura and in those areas that are covered by a state of disaster declared by the Governor. The bill would require a qualifying investment entity to meet prescribed requirements, including that it be a specified entity, including, among others, a nonprofit organization, as provided. The bill would also impose various requirements on the qualifying investment entity relating to the purchase, maintenance, and sale of the investment property, including, among other things, limiting the purchase of property to residential property that has been damaged or destroyed by the wildfires that began on January 7, 2025, in the Counties of Los Angeles and Ventura, as specified. The bill would require the I-Bank to submit a final report on the program to the Legislature, the Governor, and the Department of Finance no later than January 1, 2034, as specified. By establishing a new continuously appropriated fund, the Community Stabilization Fund, this bill would make an appropriation. (2) This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles and Ventura. (3) This bill would declare that it is to take effect immediately as an urgency statute.

Existing law establishes the California Housing Finance Agency in the Department of Housing and Community Development, and authorizes the agency to, among other things, make loans to finance affordable housing, including residential structures, housing developments, multifamily rental housing, special needs housing, and other forms of housing, as specified. Existing law establishes the California Dream for All Program to provide shared appreciation loans to qualified first-time homebuyers, as specified. Existing law establishes in the State Treasury the California Dream for All Fund, which is continuously appropriated for expenditure pursuant to the program, as specified. This bill would require, upon establishment of the certification process for the descendants of American slavery established by the Bureau for Descendants of American Slavery, at least 10% of the moneys in the fund to be reserved for applicants who meet the requirements for a loan under the program and have been certified as descendants of formerly enslaved people, as specified. This bill would become operative only if SB 518 of the 2025–26 Regular Session is enacted and takes effect on or before January 1, 2027, and establishes the Bureau for Descendants for American Slavery.

Existing law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households unless the local agency makes written findings as to one of certain sets of conditions, as specified. Existing law defines, for its purposes, a housing development project as a use consisting of, among other things, mixed-use developments consisting of residential and nonresidential uses meeting one of several conditions, including that at least 23 of the new or converted square footage is designated for residential use. This bill would revise the definition of "housing development project" to, in the case of mixed-use developments with at least 23 of the new or converted square footage designated for residential use, require that no portion of the project be designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except as specified. This bill would correct cross-references in the Housing Accountability Act. This bill would incorporate additional changes to Section 65589.5 of the Government Code proposed by AB 1308 to be operative only if this bill and AB 1308 are enacted and this bill is enacted last.