Housing

Existing law establishes various programs and regulations to assist with affordability and cost of living issues, such as the Multifamily Housing Program, the California Dream for All Program, and the CalWORKs Housing Support Program. This bill would state the intent of the Legislature to enact legislation to address affordability and cost of living in California.

Existing law, the Office to Housing Conversion Act, beginning July 1, 2026, deems an adaptive reuse project a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process, if the project meets specified requirements. Existing law defines an "adaptive reuse project" as the retrofitting and repurposing of an existing building to create new residential or mixed uses including office conversion projects and excludes from that definition, among other things, the retrofitting and repurposing of any building that is within an industrial zone that does not permit residential uses. Existing law prohibits an adaptive reuse project from being permitted in an industrial zone, as defined, that does not permit residential uses. This bill would revise the above-described prohibition to specify an adaptive reuse project is not permitted on a site where the existing primary use is classified as a high-hazard (Group H) occupancy under Title 24 of the California Code of Regulations, as it read on January 1, 2025. The bill would also revise the definition of an "adaptive reuse project" to exclude the retrofitting and repurposing of any building whose primary existing use is a high-hazard (Group H) occupancy under Title 24 of the California Code of Regulations, as it read on January 1, 2025. By expanding eligibility for streamlined, ministerial review of adaptive reuse projects, and therefore expanding the duties of the local government, 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 requires the Department of Housing and Community Development, in consultation with each council of governments, to determine each region's existing and projected housing need, as provided. Existing law requires each council of governments, or delegate subregion as applicable, to develop and adopt a methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, as provided. Existing law also requires each council of governments and delegate subregion, as applicable, to adopt a final allocation of regional housing needs to each local government in the region or subregion, where applicable, and the department, based on that adopted methodology. Existing law requires that the housing element of a county's or city's general plan include, among other things, a quantification of the locality's existing and projected housing needs for all income levels, which must include the locality's share of the regional housing need, as provided. Existing law authorizes a local government within the same county as a federally recognized Native American tribe to enter into a voluntary agreement with a tribe to allow new tribal housing development projects to count toward the locality's share of the regional housing needs allocation if certain conditions are met. This bill would authorize a local government, as defined, to enter into a voluntary agreement with another local government to allow new housing development projects to count toward each locality's share of the regional housing needs allocation if certain conditions are met, including that the project includes affordable housing units for very low and lower income households.

Existing property tax law, pursuant to constitutional authorization, provides for a "welfare exemption" for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing law also provides that property is within the welfare exemption if that property is owned by a community land trust, as defined, otherwise qualifying for the welfare exemption, and specified conditions are met, including that the property is being or will be developed or rehabilitated as housing, as specified. This bill would make a nonsubstantive change to the provision providing that property is within the welfare exemption if that property is owned by a community land trust.

The Planning and Zoning Law requires a city or county to adopt a general plan for land use development of the city or county that includes, among other elements, a housing element. That law requires the housing element to include, among other things, an identification and analysis of existing and projected housing needs. That law requires the city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development that includes, among other specified information, the number of units of housing demolished and new units of housing that have been issued a completed entitlement, a building permit, or a certificate of occupancy. This bill would additionally require the city or county to include in the annual report the number of suite-style student housing quarters, as determined by the department. By requiring a city or county to include additional information in the annual report, the 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. 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.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. If a lead agency determines that a project will have a significant transportation impact, existing law authorizes the lead agency to mitigate the transportation impact to a less than significant level by helping to fund or otherwise facilitating housing or related infrastructure projects, including by contributing an amount, to be determined pursuant to guidance issued by the Office of Land Use and Climate Innovation, to the Transit-Oriented Development Implementation Fund for purposes of the Transit-Oriented Development Implementation Program. Existing law makes those moneys available to the Department of Housing and Community Development, upon appropriation by the Legislature, for the purpose of awarding funding for affordable housing or related infrastructure projects under the program in accordance with specified priorities. On or before July 1, 2026, and at least once every 3 years thereafter, existing law requires the office, in consultation with other state agencies, to issue guidance related to the implementation of these provisions, as provided. This bill would authorize a lead agency for a land use project to require an applicant to contribute to the Transit-Oriented Development Implementation Fund if certain cost conditions are met and the department and the office have validated the reductions in vehicle miles traveled that are attributable to the project, as specified. This bill would declare that it is to take effect immediately as an urgency statute.

Existing law deems an applicant for a housing development project to have submitted a preliminary application upon providing specified information about the proposed project to the city, county, or city and county from which approval for the project is being sought and payment of the permit processing fee. Existing law authorizes a development proponent that submits a preliminary application providing the required information to include in its preliminary application a request for a preliminary fee and exaction estimate from the city, county, or city and county within 30 business days of the submission of the preliminary application. This bill would make a nonsubstantive change to those provisions.

Existing law prohibits the smoking of tobacco products in various public and private places and also authorizes a landlord of a residential dwelling unit to prohibit the smoking of tobacco products on the property or in any building or portion of the building, including in any dwelling unit, in accordance with specified requirements. This bill would prohibit the smoking of tobacco products in a state-subsidized multiunit housing development, as defined, for which a certificate of occupancy is issued on or after January 1, 2027.

This measure would proclaim the month of November 2026 as California Youth Homelessness Outreach, Prevention, and Education (HOPE) Month to recognize the need for individuals, schools, communities, businesses, local governments, and the state to take action on behalf of runaway and homeless youth in California.

Existing law establishes the California Housing Finance Agency in the Business, Consumer Services, and Housing Agency, and, as of July 1, 2026, transfers the agency to the California Housing and Homelessness Agency created pursuant to the Governor's Reorganization Plan No. 1 of 2025, as provided. Existing law 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, administered by the agency subject to the availability of funds, to provide shared appreciation loans, as defined, to qualified first-time homebuyers. Existing law limits the program to providing assistance to low- and moderate-income homebuyers in the purchase of owner-occupied homes. Existing law establishes the California Dream for All Fund, and continuously appropriates moneys in that fund for the purposes of the program, as prescribed. This bill would require the agency to expand the California Dream for All Program to provide additional assistance, as specified, to first-generation homebuyers, as defined. The bill would require the agency to prioritize this assistance to first-generation homebuyers purchasing homes built using specified state funding, and to expedite approval of that assistance for a first-generation homebuyer purchasing a home located in a moderate-density area, as provided. By expanding the purposes for which money in the California Dream for All Fund may be used, the bill would make an appropriation. The bill would additionally establish the Credit-Enhancement and Guarantee Fund for the purpose of distributing this assistance to specified first-generation homebuyers and would, upon appropriation, require the agency to align the distribution of funds with relevant government-sponsored enterprise pilot programs, as defined, focused on expanding access to credit for first-generation borrowers. Existing law requires the agency to convene a working group to develop recommendations to assist homeowners in qualifying for loans to construct accessory dwelling units and junior accessory dwelling units on their property and to increase access to capital for homeowners interested in building accessory dwelling units. This bill would require that working group to explore opportunities for first-generation homebuyers to use funds from the expanded California Dream for All Program as down payment assistance for small-plex or accessory dwelling unit ready properties.