Year in Review: 2024 Policy Update from Sacramento
December 17, 2024
Governor Newsom signed 13 bills supported by Eden during this legislative session—including legislation that strengthens protections for affordable housing providers from “bad faith” lawsuits, increases financing flexibility, and reduces or delays fees imposed on our projects.
In spite of a multi-billion-dollar revenue shortfall, the 2024-25 state budget approved earlier this year also maintained state commitments to several successful affordable housing programs, including the Low Income Housing Tax Credit and Multifamily Housing Program.
The Governor vetoed two Eden-supported bills this year, including AB 1360 (Gabriel), a bill that would have extended state housing tax credit allocations through 2030 and SB 1374 (Becker), a bill that sought to reverse a recent state regulatory decision preventing multifamily housing developments from consuming solar energy produced on our properties.
The summary below includes highlights of major changes to housing policy this year:
Ballot Measures:
Approved:
- Prop 1 – Mental Health Services: Voters approved a measure in March that will modernize the state’s Mental Health Services Act (MHSA), expanding housing interventions for people suffering from mental illness and substance use disorders, while authorizing a $6.4 billion bond to provide additional support to the program.
- Prop 2 – School construction bond: Voters approved a $10 billion bond to fund construction and modernization of K-12/community college facilities.
- Prop 4 – Climate bond: Voters approved a $10 billion bond for a range of programs to provide safe drinking water, prevent wildfires, prepare for drought, improve air quality, and mitigate against sea level rise.
Failed:
- Prop 5 – Vote thresholds: Voters rejected a measure endorsed by Eden that sought to lower vote thresholds for local housing bonds to 55%, the level voters have approved for school bonds.
- Prop 33 – Rent control: Voters rejected a measure that sought to repeal the Costa-Hawkins Rental Housing Act.
Legislation endorsed by Eden and signed by the Governor:
ADUs:
- SB 1077 (Blakespear): Streamlines coastal development permits for ADUs
- SB 1211 (Skinner): Increases the number of detached ADUs allowed on multifamily developments
Anti-NIMBY:
- SB 393 (Glazer): Strengthens protections for affordable housing providers from “bad faith” lawsuits
Fees – Deferrals/Transparency:
- AB 1820 (Schiavo): Allows development proponents to request fee/exaction estimates
- AB 2430 (Alvarez): Reduces duplication in compliance monitoring
- AB 3012 (Grayson): Requires local governments to create fee estimate tools by 2031
- SB 937 (Wiener): Delays fees until certificate of occupancy
- SB 1210 (Skinner): Caps utility charges for new housing
Funding:
- AB 1053 (Gabriel): Allows HCD loans to fund during construction
- AB 2353 (Ward): Allows affordable housing providers to withhold property tax payments while welfare exemption applications are under review
- SB 440 (Skinner): Authorizes two or more local governments to create regional housing finance authorities
Preservation:
- AB 2926 (Kalra): Requires projects with expiring affordability covenants to accept bona fide offers from qualified preservation buyers
Streamlining:
- SB 1395 (Becker): Makes shelter housing eligible for streamlined CEQA review