AMENDED IN SENATE AUGUST 13, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Assembly Members Quirk-Silva and Wicks

February 19, 2026

An act to add Section 50158 to the Health and Safety Code, relating to housing.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the Governor’s Reorganization Plan No. 1 of 2025 (GRP), which became effective on July 5, 2025, reorganized specified state agencies and departments, including eliminating the Business, Consumer Services, and Housing Agency as of July 1, 2026, and instead establishing the Business and Consumer Services Agency and the California Housing and Homelessness Agency. The GRP, as of July 1, 2026, sets forth the general responsibilities and roles of the California Housing Homelessness Agency, the Department of Housing and Community Development, the Housing Development and Finance Committee, and the California Housing Finance Agency in carrying out state housing policies and programs. Existing law establishes programs providing assistance for, among other things, multifamily housing, farmworker housing, and veteran housing.

This bill would require the California Housing and Homelessness Agency, the California Housing Finance Agency, the California Debt Limit Allocation Committee, and the California Tax Credit Allocation Committee, and the Housing Development and Finance Committee, no later than July 1, 2027, when administering a multifamily affordable housing program, as specified, to, among other things, review, analyze, and make any changes necessary to their guidelines and regulations to facilitate the production and use of factory-built housing.

The people of the State of California do enact as follows:

SECTION 1.

Section 50158 is added to the Health and Safety Code, to read:

50158.

(a) For purposes of this section, the following definitions apply:

(1) “Agency” includes all of the following:

(A) California Debt Limit Allocation Committee.

(B) California Housing and Homelessness Agency.

(C) California Housing Finance Agency.

(D) California Tax Credit Allocation Committee.

(2) “Multifamily affordable housing program” includes all of the following:

(A) The Affordable Housing and Sustainable Communities Program (Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code).

(B) The Infill Incentive Grant Program of 2007 (Section 53545.13).

(C) The Infill Infrastructure Grant Program of 2019 (Part 12.5 (commencing with Section 53559)).

(D) The Joe Serna, Jr. Farmworker Housing Grant Program (Chapter 3.2 (commencing with Section 50515.2) of Part 2).

(E) The Low-Income Housing Tax Credit Program (Chapter 3.6 (commencing with Section 50199.4)).

(F) The Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).

(G) The Multifamily Rental Housing Program (Chapter 6.7 (commencing with Section 51325) of Part 3) administered by the California Housing Finance Agency.

(H) The Transit-Oriented Development Implementation Program (Part 13 (commencing with Section 53560)).

(I) The Veterans Housing and Homeless Prevention Act of 2014 (Article 3.2 (commencing with Section 987.001) of Chapter 6 of Division 4 of the Military and Veterans Code).

(b) No later than July 1, 2027, the agency, when administering a multifamily affordable housing program, shall do all of the following:

(1) Review, analyze, and make any changes necessary to their guidelines and regulations to facilitate the production and use of factory-built housing.

(2) Clarify that factory-built housing projects are an allowable use of funding under these programs.

(3) (A) To the extent the agency directly funds the multifamily affordable housing program project, whether for construction financing, permanent financing, or both, make sufficient early deposits available for factory-built housing projects as an allowable use of funding under each of these programs to support the upfront payments needed to cover material costs and factory production.

(B) Each agency shall establish market-based underwriting guidelines as to the amount and timing of early deposits, including a requirement that any project receiving financial support be considered to have all of its construction and permanent financing committed at the time the deposits are funded by the agency. allow funding for early deposits for factory-built housing.

(C) Each agency may require that either the factory, general contractor, or project sponsor provide a payment and performance bond, financial guarantee, letter of credit, or other security to protect the agency in the event that the project fails to close its financing and begin construction.