As California continues to face what can only be described as a housing crisis, the California Council for Affordable Housing (CCAH) remains committed to advancing policies that promote the development, sustainability, and preservation of affordable housing.
For the last two years, our key legislative efforts resulted in AB 515 (2023) and AB 2638 (2024) which have the potential to unlock millions of dollars in funding for new affordable housing projects by allowing for the early payoff of California Department of Housing and Community Development (HCD) loans. In both years, we worked in partnership with key members of HCD’s leadership team to craft bill language that met the needs of the Department and affordable housing operators and we jointly presented the results of our work as bill language. To our dismay, and despite having no opposition, this important piece of legislation was held in Senate Appropriations Committee in both 2023 and 2024.
While we were disappointed that the bills did not move forward in 2023 and 2024, we were not dissuaded. For the 2025 session we worked with our legislative partners to form a strategy designed to strengthen and reintroduce the bill, now numbered SB 686. As a result of this strategy, we are pleased to announce that Senator Eloise Gómez Reyes (D-San Bernardino) has introduced the bill in the Senate and Assemblymember Christopher Ward (D-San Diego) remains engaged as the principal co-author. Beyond this, we are successfully working to secure additional members of the legislature as co-authors, demonstrating growing bipartisan recognition of the need for this common-sense reform. The expansion of legislative authorship support reflects the increasing urgency to unlock critical funding for affordable housing projects.
Recognizing the importance of building a broader coalition, CCAH also engaged the California Housing Consortium (CHC) as a co-sponsor of SB 686. This partnership strengthens advocacy efforts and underscores the widespread industry support for the bill’s provisions. “At CHC, we are committed to solutions that make it easier to finance and build affordable housing on the scale California needs to reach its housing goals.” said Ray Pearl, Executive Director of the California Housing Consortium. “We are pleased to co-sponsor SB 686 with CCAH because it gives housing providers the flexibility they need to cost-effectively manage and reinvest in affordable housing properties without requiring new state funding. By unlocking existing capital, we can help ensure that more housing is built and preserved for those who need it most.”
Why SB 686 Matters
Under current regulations, affordable housing projects funded through HCD loans are locked into their repayment schedules and early payoff is not an option. While these loans were essential in getting projects off the ground, they now limit a developer’s ability to leverage existing equity to finance new affordable housing developments.
“One of the biggest challenges we face in affordable housing is access to capital for both preservation and new developments” said Jenna Abbott, Executive Director of the California Council for Affordable Housing. “SB 686 provides a practical solution by allowing early loan payoffs at the discretion of HCD, which unlocks equity that can be reinvested to ensure we preserve existing affordable housing while creating new opportunities for Californians.” Unlocked funds must be redeployed into an affordable project AND that the existing property must retain its affordable status. “There is no downside here” continued Abbott. “This simple yet powerful change has the potential to unlock millions of dollars in additional funding, accelerating the production and/or preservation of affordable housing at a time when California needs it most.”
Join Us in Advocating for SB 686
The success of the legislation depends on strong advocacy from the affordable housing community. We urge you to join us in pushing for this crucial legislation.
Watch for our communications and send a letter to your elected officials urging them to support SB 686. We will provide a fact sheet, talking points and a template in the coming weeks.
Let your state legislators know this bill would help expand affordable housing in your community.
Become a CCAH member. Numbers matter, and your voice adds credence to our work
Join us in Sacramento later this spring for a CCAH-sponsored Lobby Day, where we will meet with lawmakers to advocate for AB 2638. Watch for details coming soon.
Together, we can unlock funding, preserve existing affordable housing, and create new opportunities for Californians in need. Let’s get SB 686 passed in 2025. Unlocking funding means unlocking more homes for California’s families.