PRIA Logo™
CaliforniaAB 14452025-2026 Regular SessionHouseWALLET

Affordable housing.

Sponsored By: Matt Haney (Democratic)

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

Affordable housing rules for conversions

Mixed‑use conversions must make at least 60% of the building housing. A project can get district tax money only if it meets one test: at least 5% of rentals are very‑low‑income for 55 years; or 10% of rentals are lower‑income for 55 years; or 10% of for‑sale homes are moderate‑income for 45 years. When there is nonresidential space, at least 25% of the affordable homes must be ready before each 25% of the nonresidential space opens. Outside San Francisco, at least 30% of the district’s incremental revenue must help pay for the required affordable homes. In San Francisco, the first 1,500,000 square feet of opted‑in projects are exempt from these affordability tests. Projects must opt in before the first building permit, and no projects can opt in after December 31, 2032.

How tax increment money pays projects

Only opted‑in properties can send their tax growth into the district fund. Only the housing share of a mixed project’s tax growth (by square feet) can be used. Each project gets annual pay‑as‑you‑go payments, up to the amount it generates, for up to 30 years or until the district ends. Payments start the fiscal year after a certificate of occupancy, or after final inspection if no certificate is used. If the property is sold, the payment right goes to the new owner. The base assessed value is set to the last equalized roll before the first building permit. Any leftover revenue funds downtown programs, and after project allocations end, revenue returns to the local government.

Prevailing wages on conversion projects

Opted‑in conversion projects are public works and must pay prevailing wages. Projects with 50 or more homes must meet the labor standards in Section 65912.131. Projects in buildings over 85 feet must meet the labor standards in Section 65913.4. If a project is streamlined under the Office to Housing Conversion Act, that act’s labor standards apply only if AB 507 (2025–26) is enacted and takes effect.

Cities can form downtown conversion districts

Local governments can create one district to help turn offices into housing. San Francisco can create one district limited to its downtown. District boards have three local officials and two public members, and must follow open meetings and public records laws.

Time limits, caps, and reports for districts

Each plan must state the maximum share of tax growth it will commit each year, show yearly revenue projections, set a total dollar cap, and include cost and fiscal impact analyses. Local administrative costs taken from these revenues are capped at 5%, not counting setup and certain listed costs. A district must end no later than 45 years after its first project distribution. The district must pay the local government’s costs to divide the taxes. Local governments that create a district must send an annual report to the Legislature on financed projects.

Sponsors & Cosponsors

Sponsor

  • Matt Haney

    Democratic • House

Cosponsors

  • Ash Kalra

    Democratic • House

  • Alex Lee

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 205 • No: 6

House vote • 9/11/2025

Item 54 — Assembly AFLOOR

Yes: 69 • No: 5

Senate vote • 9/10/2025

Item 200 — Senate SFLOOR

Yes: 28 • No: 0

legislature vote • 8/29/2025

Vote in CS61

Yes: 5 • No: 0

legislature vote • 8/18/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 7/15/2025

Vote in CS75

Yes: 8 • No: 1

legislature vote • 7/2/2025

Vote in CS82

Yes: 5 • No: 0

House vote • 5/23/2025

Item 27 — Assembly AFLOOR

Yes: 63 • No: 0

legislature vote • 5/7/2025

Vote in CX10

Yes: 11 • No: 0

legislature vote • 4/23/2025

Vote in CX15

Yes: 9 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 642, Statutes of 2025.

    10/11/2025Senate

  2. Approved by the Governor.

    10/11/2025legislature

  3. Enrolled and presented to the Governor at 4 p.m.

    9/23/2025legislature

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 5. Page 3311.).

    9/11/2025House

  5. In Assembly. Concurrence in Senate amendments pending.

    9/10/2025House

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 0. Page 2813.).

    9/10/2025Senate

  7. Read second time. Ordered to third reading.

    9/8/2025Senate

  8. Read third time and amended. Ordered to second reading.

    9/5/2025Senate

  9. Read second time. Ordered to third reading.

    8/29/2025Senate

  10. From committee: Do pass. (Ayes 5. Noes 0.) (August 29).

    8/29/2025Senate

  11. In committee: Referred to suspense file.

    8/18/2025Senate

  12. Read second time and amended. Re-referred to Com. on APPR.

    7/17/2025Senate

  13. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 1.) (July 15).

    7/16/2025Senate

  14. Read second time and amended. Re-referred to Com. on HOUSING.

    7/3/2025Senate

  15. From committee: Amend, and do pass as amended and re-refer to Com. on HOUSING. (Ayes 5. Noes 0.) (July 2).

    7/2/2025Senate

  16. Referred to Coms. on L. GOV. and HOUSING.

    6/4/2025Senate

  17. In Senate. Read first time. To Com. on RLS. for assignment.

    5/23/2025Senate

  18. Read third time. Passed. Ordered to the Senate. (Ayes 63. Noes 0. Page 1649.)

    5/23/2025House

  19. Read second time. Ordered to third reading.

    5/8/2025House

  20. From committee: Do pass. (Ayes 11. Noes 0.) (May 7).

    5/7/2025House

  21. Coauthors revised.

    5/7/2025House

  22. In committee: Hearing postponed by committee.

    4/29/2025House

  23. Re-referred to Com. on H. & C.D.

    4/29/2025House

  24. Read second time and amended.

    4/28/2025House

  25. From committee: Amend, and do pass as amended and re-refer to Com. on H. & C.D. (Ayes 9. Noes 0.) (April 23).

    4/24/2025House

Bill Text

  • Chaptered

    10/11/2025

    HTML

  • Enrolled

    9/15/2025

    HTML

  • Amended Senate

    9/5/2025

    HTML

  • Amended Senate

    7/17/2025

    HTML

  • Amended Senate

    7/3/2025

    HTML

  • Amended Assembly

    4/28/2025

    HTML

  • Amended Assembly

    3/28/2025

    HTML

  • Introduced

    2/21/2025

    HTML

Related Bills

Back to State Legislation