CCAH Executive Director, Jenna Abbott, offered public comment to the Senate Budget and Fiscal Review Subcommittee #4 on April 30, 2026. CCAH continues to be concerned that the Governor’s proposal to codify, in statute, a minimum of 50% of the state’s private activity bond cap exclusively for HDFC projects would significantly reduce flexibility in California’s affordable housing finance system. The change could constrain the ability to support the broader 4% LIHTC pipeline, disrupt shovel‑ready multifamily and preservation projects that rely on CDLAC allocations, and create uncertainty for developments already in planning or underwriting. Prioritizing one project type could also result in regional inequities, inefficient use of bond authority if HDFC projects are not ready to absorb the full allocation, and an overall slowdown in affordable housing production at a time when demand and costs remain exceptionally high.

We submitted a formal letter to the Administration outlining our concerns and we include a transcript of Jenna’s remarks during the hearing below.

“Good afternoon, Chair and Members. My name is Jenna Abbott, and I serve as Executive Director of the California Council for Affordable Housing. Our organization represents the full ecosystem of the affordable housing industry, including developers, lenders, syndicators, investors, property managers, and long-term operators.

First and foremost, we support the long-term goal of creating a true “one-stop shop”.  We also strongly support the proposal to reserve 90% of the available bond capacity for affordable housing projects. We appreciate the time that the LAO spent preparing the analysis. They have raised excellent questions about proposed exemptions from open meetings requirements and the composition of the HDFC, among others, that really deserve answers. 

While there are several components of the trailer bill that we find promising, the proposal to allocate no less than 50 percent of the state’s bond cap to be available ONLY to HDFC projects represents a substantial departure from the existing process that affordable housing developers rely upon to assemble viable capital stacks. In 2025 alone, CDLAC and the California Tax Credit Allocation Committee were able to award resources supporting the development of nearly 20,000 affordable homes. Redirecting such a large share of bond authority to a new and untested entity introduces uncertainty and risk into a system that is already functioning as a critical engine for housing production.

From our perspective, HDFC should be afforded time to become fully operational and demonstrate readiness before assuming any share, let alone a significant share of bond cap authority. We urge consideration of an alternative approach that preserves the certainty and predictability that currently exist within CDLAC and CTCAC, which developers depend upon to move projects forward.

Under CalHFA, the Mixed-Income Program is structured to assess annual funding needs before resources are deployed. We recommend a similar, needs-based framework to guide any future allocation of bond cap between CDLAC and HDFC, rather than establishing a fixed minimum allocation at the outset. We also strongly recommend a reporting requirement to assess how any change that might be adopted works over time with the option to tweak as necessary.

We have submitted a letter for the record outlining our concerns and offering recommended alternatives to the current proposal. We look forward to continued engagement with the Legislature and the Administration as you consider how best to structure this transition in a way that sustains, and strengthens, affordable housing production across California.

Thank you for the opportunity to share our perspective.”