By Jenna Abbott, Executive Director California Council for Affordable Housing
California’s affordable housing developers are navigating a maze of challenges—from financing gaps to escalating insurance costs—but one of the most frustrating and least discussed barriers is the delay in utility hookups. It’s not uncommon for developers to be told by utility companies that power connections could take six months or longer. For Low-Income Housing Tax Credit (LIHTC) projects operating on rigid timelines, these delays can be catastrophic.
The consequences are real and immediate. In San Francisco, Mission Housing Development Corporation completed three high-quality, 100% affordable units for seniors and low-income families—only to have them sit vacant for months because PG&E couldn’t provide a connection date. In another case, a 131-unit affordable housing project near Balboa Park BART station had to be built using generators, costing the nonprofit hundreds of thousands of dollars and jeopardizing plans for a childcare center and retail space.
These delays aren’t isolated incidents. San Francisco Mayor London Breed recently reported that 75 housing projects are currently stalled due to PG&E’s inability to connect them to the grid, costing the city an estimated $35 million in additional expenses. Developers cite inconsistent communication, shifting equipment requirements, and a lack of accountability as major obstacles.
This is more than an inconvenience—it’s a systemic failure.
LIHTC projects face strict deadlines for conversion and occupancy. Missing those deadlines can result in financial penalties, loss of tax credits, and jeopardized long-term viability. When utility companies delay connections, they’re not just slowing down construction—they’re putting entire projects at risk.
Fortunately, there’s momentum for change. Assembly Bill 1404, introduced by Assemblymember Liz Ortega, would require utility companies to connect affordable housing projects to the grid within 60 days of completion which seems like a very reasonable ask. It also proposes penalties for missed deadlines, including delaying rate increases and mandating expedited reviews by the Public Utilities Commission.
It’s time to treat affordable housing as what it is: essential infrastructure—and that means prioritizing it in utility connection timelines.
CCAH urges our members and others in the industry to reach out to your state leaders, regulators, and utility companies. and to:
Support AB 1404 and similar legislation that enforces timely utility hookups for affordable housing.
Create a fast-track process for LIHTC-funded projects to ensure they meet critical deadlines.
Hold utilities accountable for delays that jeopardize housing stability and affordability.
Share your story—if your project has been impacted by utility delays, let us know. CCAH is collecting data to advocate for stronger protections.
We cannot afford to let completed affordable housing units sit empty while families wait and developers accrue penalties. Let’s power up progress on this issue—literally.