SB677 - Housing financing: joint powers agreements: bond approvals: subdivisions: tentative and final maps: appeals.

Enrolled September 01, 2026 Passed IN Senate August 30, 2026 Passed IN Assembly August 25, 2026 Amended IN Assembly August 20, 2026 Amended IN Assembly July 07, 2026 Amended IN Assembly June 24, 2026 Amended IN Assembly June 08, 2026 Amended IN Senate January 08, 2026 Amended IN Senate January 05, 2026 Amended IN Senate April 09, 2025 Amended IN Senate April 01, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 677 Introduced by Senator Wiener (Coauthor: Assembly Member Caloza) February 21, 2025 An act to amend Sections 6519, 66452.5, 66458, 66462, and 66474.7 of, and to add Sections 6505.7, 6505.9, and 66452.8 to, the Government Code, and to amend Section 52011.5 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 677, Wiener. Housing financing: joint powers agreements: bond approvals: subdivisions: tentative and final maps: appeals. Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law, for the purposes of that act, defines the term “public agency” to include various federal, state, local, and tribal entities. Existing law requires approval by the Department of General Services of certain joint powers agreements that include the state as a member, as provided. Existing law authorizes a joint powers authority to issue revenue bonds to pay the costs and expenses of acquiring, constructing, or conducting a program for, among other things, low-income housing projects owned or operated by a city, county, city and county, or housing authority. Existing law provides that the Treasurer and the Secretary of State are designated as elected representatives for federal tax purposes of a joint powers agency created to approve or certify the issuance of bonds, notes, or other evidence of indebtedness issued by or on behalf of the joint powers agency to the extent approval is required by federal tax law. This bill would provide that the geographic jurisdiction of a joint powers authority is the area encompassed by the combined geographical boundaries of all of its member public agencies. The bill would declare that these provisions are declaratory of existing law. This bill would additionally authorize the Treasurer to execute an agreement including the state as a member of a joint powers authority without obtaining approval from the Department of General Services only for the Treasurer to provide specified approvals for bonds issued by the joint powers authority to finance specified residential rental projects for which a city, county, or city and county that is a member of the joint powers authority has failed to provide specified approval required by federal tax law, as defined and provided. The bill would provide that its provisions do not expand, limit, or otherwise affect the authority of, among others, the state, or any officer or agency of the state, to enter into a joint exercise of powers agreement or cause the state to become a member of a joint powers authority, as specified. Existing law additionally authorizes, subject to specified limitations, any city or county to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. This bill would specify that, for the purposes of the above-described provisions, “city” or “county” is deemed to include the state when the state is a member of a joint powers authority pursuant to the bill’s provisions only to provide the state with the power to issue bonds and provide approval, consent, or other action required to finance specified residential rental projects, as provided. Existing law provides that the State of California will not change the composition of a joint powers authority that has issued bonds, unless the change is authorized by a majority vote of applicable legislative bodies, as provided. Existing law defines “change in composition” to include, among others, the addition of a public agency, as defined, to a joint powers authority. This bill would, notwithstanding the above-described definition, provide that the state becoming a member of an existing joint powers authority shall not, in and of itself, constitute a “change in composition.” The bill would make additional nonsubstantive and conforming changes. Existing law, the Subdivision Map Act, provides for the approval of tentative and final parcel maps by various local officials, as specified. The act authorizes an appeal of the local official’s decision to the local legislative body, as provided. This bill would create an exception from the above-described authority as it applies to appeals by an interested person for maps that meet specified criteria, as provided. The bill would exempt from these provisions an appeal filed by an applicant, subdivider, tenant, advisory agency, or public agency or official, as specified. This bill would make the provisions of the act severable. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 6505.7 is added to the Government Code, to read: 6505.7. (a) The geographic jurisdiction of a joint powers authority created pursuant to this chapter is the area encompassed by the combined geographical boundaries of all of its member public agencies. (b) This section is declaratory of existing law. SEC. 2. Section 6505.9 is added to the Government Code, to read: 6505.9. (a) For the purpose of this section, all of the following definitions shall apply: (1) “Eligible residential rental project” means a qualified residential rental project that meets both of the following conditions: (A) The qualified residential rental project has received an allocation from the California Debt Limit Allocation Committee from the state ceiling on qualified private activity bonds, or requires approval under Section 147(f) of the Internal Revenue Code in order to obtain such an allocation. (B) The city, county, or city and county where the qualified residential rental project is located is a member of a joint powers authority formed pursuant to this chapter that plans to issue the qualified private activity bonds for that qualified residential rental project and the city, county, or city and county has failed to provide the approval required by federal tax law, or has failed to provide any member consent or approval required under the joint exercise of powers agreement for that qualified residential rental project or for the issuance of those bonds, after a written request is sent by the joint powers authority or the borrower. Failure to provide the approval required by federal tax law, or to provide any member consent or approval required under the joint exercise of powers agreement for that qualified residential rental project or for the issuance of those bonds by the time approval required by federal tax law is provided by any one city, county, or city and county that is a member of the joint powers authority satisfies this subparagraph. (2) “Failure to provide the approval required by federal tax law” means either of the following: (A) If the city, county, or city and county has not published a qualifying document, “failure to provide the approval required by federal tax law” means failure to hold the relevant hearing and provide the required approval within 30 days after a written request is sent by the joint powers authority or the borrower. (B) If the city, county, or city and county has published a qualifying document, “failure to provide the approval required by federal tax law” means failure to hold the relevant hearing and provide the required approval within the time period established by the document after written request is sent by the joint powers authority or the borrower, including by electronic mail. (3) “Local agency member” means a city, county, or city and county that is a member of a joint powers authority formed pursuant to this chapter, provided that the joint powers authority plans to issue the qualified private activity bonds for an eligible residential rental project. (4) “Qualified residential rental project” has the meaning as defined in Section 142(d) of the Internal Revenue Code of 1986, as amended. (5) “Qualifying document” means a current document, published online by the city, county, or city and county, that establishes the standard process and timing the city, county, or city and county undergoes to hold a public hearing satisfying Section 147(f) of the Internal Revenue Code and Section 1.147(f)-1 of Title 26 of the Code of Federal Regulations and to adopt a resolution or take other formal action approving the bonds as required by federal tax law, provided that the process and timing so established do not exceed 90 days after written request is sent by the joint powers authority or the borrower, including by email. (6) “Written request” means a request that meets all of the following conditions: (A) The request is in writing and identifies the eligible residential rental project, its location, and the proposed plan of finance, and requests that the city, county, or city and county hold the hearing required by Section 147(f) of the Internal Revenue Code and Section 1.147(f)-1 of Title 26 of the Code of Federal Regulations and adopt a resolution or take other formal action approving the bonds as required by federal tax law, and requests that the city, county, or city and county provide any member consent or approval required under the joint exercise of powers agreement for the eligible residential rental project or for the issuance of the bonds. (B) The request is sent by the joint powers authority or the borrower to the clerk of the legislative body of the city, county, or city and county and, if a qualifying document published by the city, county, or city and county designates an official or office as responsible for receiving or processing requests of that type, to that official or office. (b) (1) For the purposes of Section 147(f) of the Internal Revenue Code, the Treasurer is designated as an applicable elected representative of the State of California. (2) (A) For the purposes of Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, including, but not limited to, Chapter 7 (commencing with Section 52075), “city” or “county” shall be deemed to include the state when the state is a member of a joint powers authority pursuant to subdivision (c). (B) This paragraph shall only provide the state with the power to issue bonds and provide approval, consent, or other action required pursuant to this part to finance eligible residential rental projects. This power shall be deemed common to the state and the cities, counties, or cities and counties that are members of the joint powers authority for the purposes of Sections 6502 and 6508 and may be exercised only through that joint powers authority. (C) For purposes of this paragraph, “bonds” has the same meaning as defined in Section 52011 of the Health and Safety Code. (c) Notwithstanding any other law or any other provision of this chapter, the Treasurer may, on behalf of the State of California, enter into a joint exercise of powers agreement, and, thereby cause the state to become a member of that joint powers authority, without approval otherwise required pursuant to Section 6501. The state’s membership shall be limited to providing for the Treasurer, on behalf of the state, to do one or both of the following: (1) Provide issuer approval, host approval, or both, pursuant to Section 147(f) of the Internal Revenue Code and Section 1.147(f)-1 of Title 26 of the Code of Federal Regulations, for the issuance of tax-exempt private activity bonds by the joint powers authority to finance eligible residential rental projects. (2) (A) Provide any member consent or approval required under the joint exercise of powers agreement for the issuance of either of the following types of bonds by the joint powers authority to finance eligible residential rental projects: (i) Tax-exempt multifamily housing revenue bonds, issued pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code. (ii) An issuance that includes both tax-exempt and taxable multifamily housing revenue bonds, issued pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, for the same eligible residential rental project. (B) Any approval, consent, or other action by the Treasurer pursuant to this paragraph shall constitute the approval or other action of the city, county, or city and county required pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code. (d) (1) If the state becomes a member of a joint powers authority pursuant to this section, the state shall be deemed a member public agency, and the geographic jurisdiction of the joint powers authority shall include the geographical boundaries of the state. (2) The state’s entry into a joint exercise of powers agreement pursuant to this section shall not expand, limit, or otherwise affect the authority of a joint powers authority to do either of the following: (A) Exercise any power, except the power to take the actions, including to issue bonds, specified in paragraphs (1) and (2) of subdivision (c), within the geographic boundaries of the joint powers authority’s local agency members. (B) Exercise any authority outside of the geographic boundaries of the joint powers authority’s local agency members. (3) Notwithstanding any provision of the joint exercise of powers agreement, neither the Treasurer nor the state shall exercise, or be deemed to hold, any power or right under that agreement or as a member of the joint powers authority other than the powers specified in paragraphs (1) and (2) of subdivision (c) if the state becomes a member of a joint powers authority pursuant to this section. (4) The Treasurer’s execution and delivery, on behalf of the state, of a counterpart of a joint powers agreement entered into pursuant to subdivision (c) shall constitute the state’s approval of that agreement and shall satisfy any requirement of that agreement for approval or authorization of the state’s membership by the governing body of the state or by resolution of a governing body. (e) This section shall not expand, limit, or otherwise affect any of the following: (1) The authority of the state, or any officer or agency of the state, to enter into a joint exercise of powers agreement or cause the state to become a member of a joint powers authority formed pursuant to this chapter under any other provision of law. (2) The authority [Text truncated for display. Full text available on Congress.gov.]