Local acquisition and rehabilitation programs invest in preserving affordable housing units and supporting community-ownership models. These programs empower community members, help prevent displacement, and support Affirmatively Furthering Fair Housing (AFFH), even in an environment of uncertainty around Federal funding and oversubscribed State funding programs.
California’s Affirmatively Furthering Fair Housing (AFFH) law, AB 686, requires all jurisdictions to create policies that expand access to housing and combat segregation. Passed in 2018, the law requires jurisdictions to make meaningful investments to integrate fair housing efforts into their Housing Element plans, ensuring proactive measures to address disparities and foster integration. Preserving affordable housing is key to this commitment—without it, low-income communities, especially communities of color, face the risk of displacement and deepening segregation in our communities.
Across California, local governments have implemented innovative programs to help acquire and rehabilitate rental housing where lower-income households live, helping to stabilize neighborhoods and ensure long-term affordability. Local preservation programs were the topic of a panel at the 2025 Housing California Conference titled “How to Gain Ground: Models for Public Sector Support of Affordable Housing Preservation.”
The session explored how public agencies across California are developing and refining preservation programs to prevent displacement and stabilize communities, focusing on serving residents at high risk of displacement—particularly communities of color. Speakers included Heather Bromfield (Enterprise Community Partners), Elizabeth Wampler (LISC Bay Area), Connor Lock (City of Long Beach), Geoffrey Moen (HACLA), and Alea Gage (San Francisco Mayor’s Office of Housing and Community Development).
San Francisco’s Small Sites Program prevents displacement by converting rent-controlled properties into permanently affordable housing through nonprofit ownership. Nonprofit sponsors work closely with existing tenants to assess their needs, conduct outreach, and facilitate participation in the preservation process. Once approved, properties undergo necessary renovations, with temporary relocation supported by project sponsors. By focusing on buildings with 5 to 25 units in neighborhoods with a high risk of displacement, the program protects long-term residents and prevents the loss of naturally affordable housing stock.
Los Angeles Housing Authority (HACLA) Acquisition Program expands affordable housing by acquiring properties without relying on competitive tax credits. It targets buildings with 25 or more units that meet ADA and seismic standards. HACLA leverages mortgage revenue bonds, government property tax exemptions, and the housing authority’s access to credit lines to finance these acquisitions. Since 2020, HACLA has successfully acquired 2,606 units across 35 properties, significantly increasing the city’s affordable housing stock and providing long-term housing security for low-income residents.
Long Beach Residents Empowered (LiBRE), promotes permanent affordability through collective ownership. The initiative began with the city committing up to $800,000 in seed funding to establish a community land trust (CLT) and plans to expand through additional resources. LiBRE safeguards tenant rights, prevents displacement, and creates pathways to homeownership for low- and moderate-income households. It aligns with Long Beach’s Racial and Reconciliation Initiative, investing in alternative ownership models prioritizing long-term affordability and community control.
In 2021, recognizing the urgent need to prevent displacement and promote resident or nonprofit ownership, California established the Foreclosure Intervention Housing Preservation Program (FIHPP). This program aimed to preserve at-risk housing by offering loans and grants for acquisition and rehabilitation. However, despite an initial $500 million allocation, it was not funded in the 2024 Budget Act.
The lack of funding for FIHPP at the state level and the reported end of the federal Green and Resilient Retrofit Program (GRRP)—which had earmarked $1.4 billion to preserve HUD-assisted multifamily housing—exacerbate preservation funding challenges. Considering these setbacks, local jurisdictions should double down on flexible, community-led housing strategies to help fill the gap.
Cities implementing preservation programs should focus on three key principles:
- Securing adaptable funding mechanisms to quickly respond to acquisition opportunities,
- Prioritizing anti-displacement strategies that protect long-term residents, and
- Strengthening partnerships with local nonprofits and mission-driven developers to sustain community-led solutions.
As Federal and State financial support for preserving affordable housing stock dwindles, cities and counties must take ownership of equitable housing solutions, prioritizing preservation, tenant protections, and community-driven initiatives to safeguard low-income residents from displacement and ensure long-term housing stability.