As we approach the end of this year’s legislative session and hurtle towards the upcoming summer recess, I want to take a moment to reflect on the tremendous advocacy work that we have undertaken on behalf of our members to advance California’s affordable housing industry. This year, CCAH proudly sponsored three important pieces of legislation that address real-world barriers to affordable housing production and preservation.
SB 677 (Wiener) seeks to reduce unnecessary delays for affordable housing developments by addressing local actions that can stall projects even after they have received approval, including obstacles related to tax-exempt bond financing and certain subdivision map appeals. We were proud to step up, along with our partners at California YIMBY and Housing Action Coaltion (HAC), to provide credible witness testimony on the impact of localities refusing to hold TEFRA hearings. As we go to print, this bill is set for final hearing on 6/30 before it heads to Appropriations and then for a floor vote, assuming it passes out.
AB 2748 (Quirk-Silva) addresses escalating development costs by providing affordable housing developments with relief from new electric vehicle charging requirements contained in the 2025 California Green Building Standards Code and allowing projects to continue operating under prior standards for a defined period. Essentially, the bill propses to keep EV charger readiness at 40% rather than forcing affordable developers to a full 100% readiness level. This bill has faced aggressive opposition both from environmental groups and the electric charger industry and we and our partners at the California Housing Consortium have diligently worked to reach a compromise. Again, this bill is set for final hearing on 6/30 and will head to Appropriations and then for a floor vote, assuming it passes out.
AB 2089 (Ward) helps preserve the financial stability of affordable housing properties by improving administration of the welfare property tax exemption and helping ensure affordable housing owners are not unnecessarily burdened by tax and administrative complications that divert resources away from housing operations and preservation. This bill also faced significant opposition but seems poised to clear hurdles to head to Appropriations and then to a floor vote.
While we are proud of the progress these bills have made, our advocacy efforts remain far from over. Our bills could be held in Appropriations, fail during the floor vote or suffer from the ultimate let down: a gubernatorial veto. Fingers crossed that our hard work results in the outcome we want. One thing is for sure, though, the legislative process requires persistence, collaboration, and a willingness to speak up when policies may negatively impact affordable housing production.
That is certainly the case with the recently negotiated budget agreement reached among Governor Gavin Newsom, Assembly Speaker Robert Rivas, and Senate President pro Tempore Monique Limón. The agreement includes language requiring that a minimum of 50 percent of the state’s private activity bond cap be reserved for HCD-administered affordable housing projects through the state’s new housing finance structure. CCAH has been vocal in its opposition to this proposal and continues to believe it is the wrong policy choice.
To be clear, we support efforts to improve coordination within state housing programs and share the goal of creating a more efficient housing finance system. However, setting aside a guaranteed minimum of 50 percent of available bond authority for a new and largely untested entity reduces flexibility at a time when California can least afford it. Existing programs administered through CDLAC and CTCAC have decades of experience, transparent processes, and a proven track record of financing thousands of affordable homes each year. We wrote about our concerns back in April and you can access that post here.
Our concern is simple. Housing production depends on flexibility. Locking up half of the bond cap in statute could disrupt the current affordable housing pipeline, create regional inequities, slow down shovel-ready developments, and leave valuable bond authority underutilized if the new program is not yet positioned to absorb those resources efficiently. California needs more housing, faster and not additional uncertainty in the financing process.
Thank you for your ongoing engagement, advocacy, and support of CCAH. Together, we continue to be a powerful voice for affordable housing throughout California. Our work continues even as the legislature breaks for summer recess.
In partnership,
