Housing: multifamily affordable housing programs.

Subsection (b)(3)(B) was simplified from requiring agencies to establish market-based underwriting guidelines for early deposits (including a requirement that all construction and permanent financing be committed at the time deposits are funded) to simply requiring agencies to allow funding for early deposits for factory-built housing. This removes prescriptive underwriting standards and gives agencies more flexibility in how they structure early deposit programs.

Procedural formatting changes reflecting transition from amended-in-senate version to enrolled version: removal of amendment tracking headers, addition of passage dates (Assembly and Senate both August 26, 2026), addition of Governor approval line, removal of line numbers, and removal of vote/appropriation/fiscal committee information.

The amendment to Section 65581 of the Government Code (a nonsubstantive change to housing element intent provisions) was entirely removed. The bill now only adds Section 50158 to the Health and Safety Code.

The Housing Development and Finance Committee was added as a fifth entity required to review and modify its guidelines to facilitate factory-built housing, joining the California Housing and Homelessness Agency, California Housing Finance Agency, California Debt Limit Allocation Committee, and California Tax Credit Allocation Committee.

Section (b)(3)(B) now explicitly states that agencies shall 'allow funding for early deposits for factory-built housing' in addition to establishing market-based underwriting guidelines for the amount and timing of those deposits.

The fiscal committee vote changed from 'no' to 'yes,' indicating the bill now carries a state fiscal impact requiring fiscal committee review.

Assembly Member Wicks was added as a co-author of the bill.

Adds new Health and Safety Code Section 50158, expanding the bill from a minor technical fix to a substantive policy mandate affecting factory-built housing in state multifamily affordable housing programs.

Requires four agencies (California Debt Limit Allocation Committee, California Housing and Homelessness Agency, California Housing Finance Agency, and California Tax Credit Allocation Committee) to review and modify their guidelines and regulations by July 1, 2027 to facilitate production and use of factory-built housing.

Allows agencies to require a payment and performance bond, financial guarantee, letter of credit, or other security from the factory, general contractor, or project sponsor to protect against project failure to close financing and begin construction.

Requires agencies to clarify that factory-built housing projects are an allowable use of funding under nine specified multifamily affordable housing programs, including AHSC, LIHTC, Infill Incentive Grant, Infill Infrastructure Grant, Farmworker Housing, Multifamily Housing Program, Multifamily Rental Housing Program, TOD Implementation Program, and Veterans Housing.

Requires agencies that directly fund projects to make sufficient early deposits available for factory-built housing to cover upfront material costs and factory production, with market-based underwriting guidelines for the amount and timing of those deposits.

Changes 'in order to address' to 'to address' in Government Code Section 65581(d), a nonsubstantive grammatical edit.

Fiscal committee review vote changed from 'no' to 'yes', indicating the bill now requires fiscal committee analysis due to its expanded scope.