SB 686: Housing programs: financing.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the Zenovich-Moscone-Chacon Housing and Home Finance Act, among other things, establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing and to provide housing assistance and home loans. Existing law sets forth various general powers of the department in implementing these programs, including authorizing the department to enter into long-term contracts or agreements of up to 30 years for the purpose of servicing loans or grants or enforcing regulatory agreements or other security documents.

Existing law requires the department, subject to certain conditions, to allow property owners subject to a regulatory agreement with the department to take out additional debt on the development in order to finance, with the department’s approval, the rehabilitation of the property or investment in new affordable housing. Under existing law, one of those conditions is that any extracted equity is required to meet at least one of several conditions, as specified. Existing law defines “extracted equity” for these purposes to mean debt added to a department-regulated property that is not used in prescribed ways.

This bill would, additionally, require the department to allow property owners to take out additional debt, as described above, if any extracted equity is utilized for reimbursement of borrower advances for predevelopment costs, unreimbursed capital improvements, and unreimbursed operating deficits. The bill would revise the definition of “extracted equity” to mean debt distributed funds that are financed with debt that is secured by a department-regulated property and is not used in prescribed ways.

Sponsors

Sponsors by party (alphabetical): Democratic 3 · Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 10, 2025Chaptered by Secretary of State. Chapter 523, Statutes of 2025.
2. October 10, 2025Approved by the Governor.
3. September 22, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 11, 2025Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2927.) Ordered to engrossing and enrolling.
5. September 9, 2025Ordered to special consent calendar.
6. August 28, 2025In Senate. Concurrence in Assembly amendments pending.
7. August 28, 2025Read third time. Passed. (Ayes 74. Noes 0. Page 2777.) Ordered to the Senate.
8. August 21, 2025Read second time. Ordered to consent calendar.
9. August 20, 2025From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 20).
10. August 20, 2025Coauthors revised.
11. July 16, 2025From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 12. Noes 0.) (July 16). Re-referred to Com. on APPR.
12. July 7, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on H. & C.D.