In the final days before the Governor’s bill-signing deadline, a wave of housing legislation swept through Sacramento; among the 45 housing-related bills signed by Governor Gavin Newsom was Senate Bill 686, our sponsored bill, which is now officially law.

This moment has been three years in the making. SB 686 has faced its share of challenges and setbacks, but this year, with persistence and partnership, it finally crossed the finish line. We owe a deep debt of gratitude to our advocacy team at Brownstein Hyatt Farber Schreck, whose dedication and strategic guidance were instrumental in this success. We also want to recognize our co-sponsors at the California Housing Consortium, whose collaboration helped strengthen the bill and build the momentum needed to get it passed.

SB 686, working in tandem with AB 130 (which passed earlier this year), gives the California Department of Housing and Community Development (HCD) the authority to allow developers to prepay loans before their term ends. More importantly, it enables them to extract equity from affordable housing developments, capital that can then be reinvested into new projects, with HCD’s approval. This change opens up new pathways for financing and expanding affordable housing across the state.

Governor Newsom’s housing package reflects a bold and comprehensive approach to California’s housing crisis. His vision includes speeding up permitting and inspections, streamlining housing production to meet the diverse needs of communities, strengthening enforcement of housing laws, and pairing housing development with climate-conscious measures like transit-oriented planning. 

At CCAH, we share the Governor’s urgency and commitment. These legislative wins are a step forward, but we know the road ahead is long. Our advocacy efforts will only intensify in the coming year as we push for more reliable funding, fewer barriers to development, and a more predictable process for building affordable housing in California.

This legislative session was one of the most productive in recent memory. Of the 35 bills we actively supported, 21 were signed into law. Nine others, including the proposed $10 billion housing bond, will return next year for another chance at passage. We’re already working with our coalition partners to ensure that bond measure makes it onto the November 2026 ballot.

We’re proud of what we’ve accomplished this year, but we’re even more energized by what’s ahead. CCAH remains committed to fighting for policies that make affordable housing more accessible, more attainable, and easier to produce.