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CaliforniaSB 6862025-2026 Regular SessionSenateWALLET

Housing programs: financing.

Sponsored By: Eloise Gómez Reyes (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Regulated affordable projects can borrow more

The law lets owners of properties under a Department regulatory agreement take on more debt to pay for repairs or invest in new affordable homes. The Department must approve and the borrowing must be allowed under federal law and the California Constitution. New loans usually stay behind the Department’s lien and regulatory agreement, but the Department can let a new loan go first if that is needed to make the project work and pay for reasonable repairs. The Department’s regulatory agreement stays in place for the rest of the term. When equity is taken out for allowed purposes, the agreement is recorded in a senior position.

Rules for equity cash-outs and debt

The law sets strict financing tests. All hard debt must show a debt-service coverage ratio of at least 1.15 and positive cash flow for 15 straight years. "Hard debt" means loans with regular payments or a set maturity date. The law defines "extracted equity" as cash taken out with new debt that is not spent on approved project costs, and it limits where that money can go. Allowed uses include repairs and rehab and approved reserves. Owners may pay unpaid deferred developer fees. They may buy out a tax credit investor under Department guidelines. With approval, they may contribute to other deed-restricted affordable projects. They may reimburse eligible predevelopment, capital improvement, or operating deficit advances. Other Department-approved uses are also allowed. The Department continues to charge monitoring fees to track compliance.

Sponsors & Cosponsors

Sponsor

  • Eloise Gómez Reyes

    Democratic • Senate

Cosponsors

  • Timothy Grayson

    Democratic • Senate

  • Kelly Seyarto

    Republican • Senate

  • Christopher Ward

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 202 • No: 0

Senate vote • 9/11/2025

Item 173 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 8/28/2025

Item 150 — Assembly AFLOOR

Yes: 74 • No: 0

legislature vote • 8/20/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 7/16/2025

Vote in CX10

Yes: 12 • No: 0

Senate vote • 5/29/2025

Item 340 — Senate SFLOOR

Yes: 38 • No: 0

legislature vote • 5/23/2025

Vote in CS61

Yes: 6 • No: 0

legislature vote • 4/21/2025

Vote in CS61

Yes: 6 • No: 0

legislature vote • 4/1/2025

Vote in CS75

Yes: 11 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 523, Statutes of 2025.

    10/10/2025Senate

  2. Approved by the Governor.

    10/10/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/22/2025legislature

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2927.) Ordered to engrossing and enrolling.

    9/11/2025Senate

  5. Ordered to special consent calendar.

    9/9/2025Senate

  6. In Senate. Concurrence in Assembly amendments pending.

    8/28/2025Senate

  7. Read third time. Passed. (Ayes 74. Noes 0. Page 2777.) Ordered to the Senate.

    8/28/2025House

  8. Read second time. Ordered to consent calendar.

    8/21/2025House

  9. From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 20).

    8/20/2025House

  10. Coauthors revised.

    8/20/2025House

  11. From 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.

    7/16/2025House

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on H. & C.D.

    7/7/2025House

  13. Referred to Com. on H. & C.D.

    6/5/2025House

  14. In Assembly. Read first time. Held at Desk.

    5/29/2025House

  15. Read third time. Passed. (Ayes 38. Noes 0. Page 1328.) Ordered to the Assembly.

    5/29/2025Senate

  16. Ordered to special consent calendar.

    5/27/2025Senate

  17. Read second time. Ordered to third reading.

    5/23/2025Senate

  18. From committee: Do pass. (Ayes 6. Noes 0. Page 1209.) (May 23).

    5/23/2025Senate

  19. Set for hearing May 23.

    5/16/2025Senate

  20. April 21 hearing: Placed on APPR. suspense file.

    4/21/2025Senate

  21. Set for hearing April 21.

    4/4/2025Senate

  22. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0. Page 609.) (April 1). Re-referred to Com. on APPR.

    4/2/2025Senate

  23. Set for hearing April 1.

    3/13/2025Senate

  24. Referred to Com. on HOUSING.

    3/5/2025Senate

  25. Read first time.

    2/24/2025Senate

Bill Text

  • Chaptered

    10/10/2025

    HTML

  • Enrolled

    9/16/2025

    HTML

  • Amended Assembly

    7/7/2025

    HTML

  • Introduced

    2/21/2025

    HTML

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