Legislative Outcomes
Habitat California works alongside our statewide network of affiliates to advance policies that expand affordable homeownership, strengthen Habitat’s work, and remove barriers for the families and communities we serve. The legislation below represents bills sponsored or supported by Habitat California that were passed by the Legislature and signed into law by the Governor - important policy victories made possible through persistent advocacy, strong partnerships, and the collective voice of the Habitat network.
When Habitat voices come together, advocacy can lead to lasting change. These legislative outcomes highlight the policies Habitat California and our statewide network helped advance to remove barriers, expand affordable homeownership opportunities, and strengthen the work of Habitat affiliates across California.
2026 Legislative Session
AB 939 (Schultz) Density Bonus Law Reform
SPONSORED by Habitat California
AB 939 provides a targeted, no-cost solution to streamline affordable homeownership by creating an exception to the 180-day resale restriction in state law. Under the new law, developers can immediately sell income-restricted homes to qualified nonprofit affordable housing organizations that receive an IRS welfare exemption and provide below-market-rate financing to eligible low-income homebuyers. Rather than requiring completed homes to sit vacant for up to 180 days, AB 939 allows these transactions to move forward without delay, reducing developers’ holding and marketing costs while helping more income-qualified families achieve homeownership sooner.
AB 1621 (Wilson) Post-Entitlement Phase Permits
This bill streamlines the building permit process by generally limiting cities, counties, and state agencies to two rounds of plan reviews. After two reviews, agencies can deny applications that still do not meet requirements, although applicants can choose to submit revised plans for further consideration. The bill also limits agencies’ ability to require changes during inspections that differ from previously approved plans, with certain exceptions. These changes aim to reduce unnecessary delays, improve predictability, and make the permitting process more efficient.
AB 1738 (Carrillo) Remote Virtual Inspections
AB 1738 requires cities and counties to offer virtual building inspections, upon request, for common home improvement projects, including water heater replacements, HVAC installations, roofing, minor electrical and plumbing work, solar installations, and certain ADU improvements. Using photos or live video instead of in-person visits, these inspections will help reduce delays and costs for homeowners while allowing local agencies to focus staff resources on more complex projects. The bill also allows virtual inspections for other types of work at the discretion of local inspectors and establishes reporting and oversight requirements to ensure compliance with building standards.
AB 1751 (Quirk-Silva) Missing Middle Townhome Ownership Act
The Missing Middle Townhome Ownership Act streamlines the approval process for qualifying townhome developments, making it easier and faster to build more affordable homeownership opportunities. The new law allows eligible townhome projects that meet established planning and development standards to receive administrative approval without lengthy public hearings or discretionary reviews. It also simplifies the subdivision process, allowing townhomes to be built on smaller individual lots. Together, these changes help reduce development delays and costs while expanding opportunities for more attainable homeownership in California.
AB 1842 (Harabedian) California Emergency Mortgage Relief Act
This new law expands mortgage relief protections for homeowners affected by declared emergencies or disasters, including those whose homes become uninhabitable. It increases the initial mortgage forbearance period from 90 days to up to 180 days, with additional extensions available for a total of up to 12 months. During this time, eligible homeowners can temporarily pause mortgage payments without incurring late fees or increased interest rates. These protections provide greater financial flexibility and stability for families recovering from emergencies and natural disasters.
AB 1847 (Harabedian) 2025 Wildfire Emergency Mortgage Forbearance
AB 1847 expands mortgage relief for homeowners affected by the January 2025 Southern California wildfires, including the Eaton and Palisades fires. It extends the maximum mortgage forbearance period from 12 to 36 months, allowing eligible homeowners experiencing financial hardship to temporarily pause mortgage payments while they recover and rebuild. The law also extends the deadline to request relief to January 7, 2029, giving impacted families more time and financial flexibility to recover from the disasters.
AB 2433 (Alvarez) Affordable Homes Bonus
This bill updates California’s Density Bonus Law by replacing the existing “density bonus” structure with an “affordable homes bonus.” It continues to allow developers to build additional housing units and receive flexibility from certain development requirements in exchange for including affordable homes in their projects. The changes aim to streamline development incentives and encourage the construction of more income-restricted affordable housing throughout California.
AB 2259 (Ward) Construction Waste Deposits
This new law requires cities and counties to fully refund construction and demolition debris deposits when builders demonstrate compliance with local recycling and waste diversion requirements. By ensuring that builders receive their full deposits back when they follow the rules, the law helps reduce unnecessary construction costs and financial burdens on housing developers.
SB 417 (Limon) The Affordable Housing Bond Act of 2026
This bill enacted the Affordable Housing Bond Act of 2026, which, if adopted, would authorize the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance programs to fund affordable rental housing and home ownership programs, including, among others, the CalHome Program.
SB 996 (Padilla) Classifying Manufactured Housing as Real Property
SB 996 makes it easier for manufactured and mobile homeowners to have their homes classified as real property, rather than personal property, even if they do not own the land beneath them. Homeowners with qualifying long-term occupancy agreements can receive real property status if certain requirements are met. This change expands access to traditional mortgage financing, strengthens long-term housing stability, and creates more opportunities for manufactured and mobile homeowners to build and preserve home equity.
SB 1014 (Grayson) Early Identification of Onsite and Offsite Improvements
This bill requires cities and counties to provide housing developers with an early estimate of required infrastructure improvements and associated costs. Within 30 days of receiving a housing application, local governments must identify any necessary onsite or offsite improvements, such as roads, utilities, or other infrastructure upgrades, and provide estimated costs. This change helps developers better anticipate expenses, reduce unexpected costs, and plan housing projects more efficiently.
SB 1036 (Grayson) Mitigation Fee Act
This new law requires cities and counties to calculate development fees based on a project's actual impact on public infrastructure, such as roads, parks, and other facilities. When a project replaces an existing building or use, local governments must account for the demand already generated by that property rather than treating the project as entirely new development. This change helps ensure that fees reflect the additional impact of development and prevents builders from being charged for infrastructure needs that already exist.
SB 1169 (Grayson) Approval of Tentative Maps
SB 1169 streamlines the subdivision approval process by allowing qualifying housing projects to receive administrative approval of tentative vesting maps without lengthy discretionary reviews, provided they meet established standards. The new law also extends the validity of these approvals from approximately two years to eight years, giving developers more time and flexibility to complete projects. These changes help reduce delays and costs, improve predictability, and make it easier to build homeownership opportunities, including townhomes and condominiums.
SB 1288 (Laird) Non-Probate Transfer of Ownership
This bill simplifies the process of transferring stocks, bonds, and other investment assets to designated beneficiaries after an account holder’s death. It requires financial institutions to notify beneficiaries, limits unnecessary paperwork, and prevents institutions from requiring beneficiaries to open new accounts or coordinate with other beneficiaries to receive their assets. The law also clarifies that nonprofits and charitable organizations can be named as beneficiaries, making it easier for these organizations to receive charitable gifts without unnecessary delays or administrative burdens.
