CaliforniaHousing department may transfer eligible funds between rental projects
California's housing department may authorize certain funds from one rental development to support another under the same sponsor or an affiliated owner, while protecting other lenders' payment rights.
What it does
The housing department may authorize a transfer of its share of project cash or eligible extra reserves to another rental development. The projects must have the same sponsor or an affiliated owner, and other lenders' and public agencies' payment rights must be protected.
Argument forA sponsor could put eligible funds toward another rental project it owns, while other lenders and public agencies keep their payment rights.
Argument againstMoving extra reserves could leave a project with less money for future needs, though the transfer limits protect near-term repairs and minimum reserve levels.
More detail
The department may authorize transferring its share of project cash or eligible extra reserves as equity to another rental development. Both rental developments must be covered by a department agreement, and the receiving development must have the same sponsor or an affiliated owner. The department decides whether to approve a transfer. It may not reduce or impair amounts or payment rights owed to another lender, public agency, or government entity. The department's share is calculated after required debt service and other amounts owed to lenders and public entities are paid or provided for. Replacement reserves may move only above the amount needed for immediate and short-term repairs, as identified in an independent assessment made within the prior three years. The project must keep at least $1,000 per unit and meet, or be projected to meet, required yearly reserve deposits. Operating reserves and project-specific transition reserves may move only to the extent they exceed the minimum required by the department's agreement.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 29Chaptered by Secretary of State - Chapter 795, Statutes of 2026.Latest
- Sep 29Approved by the Governor Gavin Newsom.Became Law
- Sep 14Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6965.).Major
- Vote recorded AB 2020 Gabriel Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB2020 Gabriel By Cabaldon. Result: pass.Upper
- Aug 30Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).Passed Senate
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 21Read third time and amended. Ordered to second reading.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 13From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).Major
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jun 25From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 10. Noes 0.) (June 24). Re-referred to Com. on APPR.Minor
- Jun 24
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Jun 10Referred to Com. on HOUSING.Minor
- May 28In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 2020 Gabriel Assembly Third Reading. Result: pass.Lower
- May 27Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 5493.)Passed Assembly
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 15. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- Apr 29In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 15From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 15). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Apr 2In committee: Set, first hearing. Hearing canceled at the request of author.
- Mar 2Referred to Com. on H. & C.D.Minor
- Feb 18From printer. May be heard in committee March 20.
- Feb 17Read first time. To print.Introduced
HousingMental HealthPublic Safety