SB1072 - Housing omnibus.

Enrolled September 01, 2026 Passed IN Senate August 30, 2026 Passed IN Assembly August 27, 2026 Amended IN Assembly August 21, 2026 Amended IN Assembly June 03, 2026 Amended IN Senate April 28, 2026 Amended IN Senate April 06, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 1072 Introduced by Committee on Housing (Senators Arreguín (Chair), Cabaldon, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla, and Seyarto) February 13, 2026 An act to amend Sections 65589.5, 65863.10, 65863.11, and 66300 of, and to repeal Section 65584.6 of, the Government Code, to amend Sections 50199.7, 50199.15, 50408, 50676, 50827, and 50828 of the Health and Safety Code, and to amend Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 1072, Committee on Housing. Housing omnibus. (1) Existing law authorized the County of Napa, until June 30, 2007, to meet up to 15 percent of its existing share of the regional housing need for lower income households in a specified manner. This bill would repeal this expired authority. (2) The Housing Accountability Act, which is a part of the Planning and Zoning Law, among other things, prohibits a local agency from disapproving a housing development project, as described, unless it makes specified written findings. The act requires a petition to enforce its provisions to be brought pursuant to a specified procedure and be filed no later than 90 days from the later of (A) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action taken on a housing development project or (B) the expiration of certain time periods specified in the Permit Streamlining Act. This bill would also include in the above-described expiration of certain time periods, among other things, the expiration of specified time periods in the State Housing Law. The Planning and Zoning Law requires the owner of land on which an assisted housing development is located, at least 12 months prior to an anticipated date of termination of a subsidy contract, an expiration of rental restrictions, or a prepayment on an assisted housing development, to provide notice of the proposed change to each affected tenant household residing in the assisted housing development at the time the notice is provided and to the affected public entities. If the owner decides to terminate a subsidy contract or prepay the mortgage pursuant to these provisions, or if the owner has an assisted housing development in which there will be the expiration of rental restrictions, existing law requires the owner to first give notice of the opportunity to specified entities. Existing law requires the Department of Housing and Community Development to monitor compliance with these provisions and provide a report to the Legislature, as prescribed, containing specified information. Existing law defines various terms for these purposes. This bill would additionally require the owner to provide that notice to affected public entities, as defined. The bill would prescribe the process for serving the notice on a city, county, or city and county in which the assisted housing development is located, to the appropriate local public housing authority, if any, and the Department of Housing and Community Development. The bill would remove some of the information required to be in the report from the department described above. The bill would also make technical changes to these provisions. (3) The Housing Crisis Act of 2019 prohibits an affected county or affected city, as defined, from enacting a development policy, standard, or condition that would change the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use below what was allowed under the land use designation and zoning ordinances of the affected county or affected city in effect on January 1, 2018. However, the act authorized the City of San Jose, until the date that the City of San Jose’s housing element update for the 6th cycle was due, to proactively change a zoning ordinance to a more intensive use and use the added capacity to subsequently change a zoning ordinance applicable to an eligible parcel, as defined, to a less intensive use as long as there is no net loss in residential capacity. This bill would remove that expired authority. (4) Existing law establishes a low-income housing tax credit program pursuant to which the California Tax Credit Allocation Committee provides procedures and requirements for the allocation, in modified conformity with federal law, of state insurance, personal income, and corporation tax credit amounts to qualified low-income housing projects that have been allocated, or qualify for, a federal low-income housing tax credit and farmworker housing. Existing law defines “agricultural worker” or “farmworker” for these purposes to have the same meaning as “agricultural employee,” which is defined to mean one engaged in agriculture, as defined, and to exclude, among other persons, any person other than those employees excluded from the coverage under specified provisions of federal law. This bill would revise the definition of “agricultural worker” or “farmworker” to mean an individual who derives, or prior to retirement or disability derived, a substantial portion of their income as an agricultural employee, as specified. The bill would also conform state tax law to changes relating to low-income housing tax credits for buildings financed by tax-exempt bonds subject to volume cap made by the federal One Big Beautiful Bill Act. The bill would specify the amount of credit to the taxpayer for each year, as prescribed. The bill would also make technical changes and correct cross-references in these provisions. Existing law requires the committee to annually submit to the Legislature a report specifying, with respect to its activities during the previous calendar year, certain information, including, among other requirements, the total amount of low-income housing credits allocated by the committee. Existing law requires the committee to include in its annual report to the Legislature, an aggregation of the information submitted annually by housing sponsors for all projects that have received an allocation in previous years, specifying certain information, including, among other requirements, the total number of units assisted by the credit that are occupied by households whose income is 60% or less of the area median gross income. For a project that has received an allocation on or after January 1, 2026, this bill would require the committee to include in the above-described aggregation, the total number of units assisted by the credit that meet each of specified conditions, including, among others, the unit is accessible to people with mobility disabilities or that the unit is accessible to people with vision and hearing disabilities. (5) Existing law designates the Department of Housing and Community Development as the state agency responsible for administering funds received by the state from the federal Housing Trust Fund pursuant to the Housing and Economic Recovery Act of 2008, and requires the department to submit an allocation plan for the distribution of those funds, as specified, to the Assembly Committee on Housing and Community Development and the Senate Transportation and Housing Committees. This bill would update the name of the Senate Housing Committee within these provisions. Existing law requires the department to submit an annual report to the Governor and both houses of the Legislature on the operations and accomplishments during the previous fiscal year of the housing programs administered by the department, as specified. Existing law requires that report to include an evaluation of any program established by the department to meet the legal requirements of the federal Housing Trust Fund program guidelines. This bill would remove the requirement to include that evaluation in the report. Existing law generally governs the state’s implementation of the federal State Community Development Block Grant Program. This bill would make nonsubstantive, technical changes to those provisions. (6) This bill would incorporate additional changes to Section 65589.5 of the Government Code proposed by AB 1621 to be operative only if this bill and AB 1621 are enacted and this bill is enacted last. The bill would incorporate additional changes to Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code proposed by AB 2270 to be operative only if this bill and AB 2270 are enacted and this bill is enacted last. (7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 65584.6 of the Government Code is repealed. SEC. 2. Section 65589.5 of the Government Code is amended to read: 65589.5. (a) (1) The Legislature finds and declares all of the following: (A) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (B) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (C) Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (D) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. (2) In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following: (A) California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives. (B) While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor. (C) The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability. (D) According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025. (E) California’s overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of California’s households are able to afford the cost of housing in their local regions. (F) Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians. (G) The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent. (H) When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees. (I) An additional consequence of the state’s cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. California’s cumulative housing shortfall therefore has not only national but international environmental consequences. (J) California’s housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section. (K) The Legislature’s intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled. (L) It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing. (3) It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently. (4) It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments. (b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdiv [Text truncated for display. Full text available on Congress.gov.]