The Assembly and Senate began their Summer Recess last Friday, and will not reconvene until August 18th, which will be followed by a hectic four weeks until the last day to pass bills for the year on September 12th — and a final month of advocacy to the governor to sign or veto bills by October 12th. But some important things have happened in the past month.
Budget Passed
The 2025-26 California State Budget was finalized and while not as bad as the governor’s proposed May Revise, it still does not reflect the commitment that we need from our state leaders to housing solutions. Housing advocates across the Bay Area and the state fought hard and restored some major cuts. Here are some highlights our friends at NPH pointed out:
- $500M for the state Low Income Housing Tax Credits (LIHTC)
- $120M for the Multifamily Housing Program (MHP)
- Increased funding for the Department of Housing and Community Development (HCD) to support the Housing and Homeless Accountability, Results and Partnership unit
- $500M allocation for the Homeless Housing and Assistance Program (HHAP) in FY 2026-27
The budget is very tight, and it took a lot of work to make sure even these allocations were included.
CEQA Reform in Budget Trailer Bills
The legislature and governor have gotten a head start on passing and signing policy legislation via budget trailer bills that include notable policy reforms which will go into effect immediately. Perhaps most notable among these for housers are the California Environmental Quality Act (CEQA) reforms in AB-130 (Asm. Buffy Wicks) and SB-131 (Sen. Scott Wiener). These bills aim to make it easier to create infill housing while protecting environmentally sensitive areas. Check out this piece by KQED, this short video by KPBS in San Diego, or this piece by our friend Corey Smith, Executive Director at HAC, for more.
New California Housing and Homelessness Agency (CHHA)
The state is splitting the Business, Consumer Services, and Housing Agency to clearly separate out housing and homelessness under a new California Housing and Homelessness Agency (CHHA), which will be distinct from the new Business and Consumer Services Agency (BCSA). This change will allow CHHA to focus on addressing housing and homelessness. The administration anticipates CHHA to become operational in July 2026. For more, please see this from the Governor’s office and this overview.
Check out SV@Home’s August PIA for a lunchtime virtual discussion of state housing progress.