Housing development: density bonus: student housing developments.

The bill header changed from showing amendment history (dates of amendments in Assembly and Senate) to showing final passage: 'Passed the Assembly August 25, 2026' and 'Passed the Senate August 25, 2026,' along with a line for the Governor's receipt date.

The legislative counsel's digest was reformatted from 'AB 2480, as amended, Avila Farias' to 'AB 2480, Avila Farias,' dropping the 'as amended' language that is standard in enrolled bills.

Rent calculation for lower income students in shared bedrooms changed from 80% of AMI divided by number of bedrooms (with a 75% per-bed reduction) to 65% of AMI rent limit for an efficiency unit divided by the number of beds in the shared bedroom. This simplifies the formula and lowers the effective rent cap.

Rent calculation for moderate-income students in shared bedrooms changed from 120% of AMI divided by number of bedrooms (with a 75% per-bed reduction) to 100% of AMI rent limit for an efficiency unit divided by the number of beds in the shared bedroom.

New provision stating that no affordability restriction, state or county law or policy, or property management policy may prevent a lower income student from sharing a room or unit with a non-lower income student. Any attempted waiver is void as against public policy.

New tables specifying additional density bonus percentages: for very low income units ranging from 20% (at 5% of units) to 38.75% (at 10% of units), and for moderate-income units ranging from 20% (at 5% of units) to 50% (at 15% of units).

New SEC 1.1 provides an alternative version of Section 65915 that becomes operative only if AB 2433, SB 1383, or both are enacted before this bill. This version incorporates changes from those bills including a new subparagraph (G) for developments where 100% of units are for lower income households (with up to 20% for moderate-income), a homeless priority requirement for affordable student units, and a site restriction preventing placement on sites that would trigger replacement unit requirements for density bonuses over 35%.

Bill summary corrected a typo ('units units' changed to 'units') and page numbers shifted from 96 to 95 throughout due to formatting changes.

The rent limit for lower-income students in two-bedroom or larger units with shared bedrooms was lowered from 80 percent of area median income (AMI) rent limit to 65 percent of AMI rent limit for an efficiency unit, divided by the number of beds in the shared bedroom. This makes affordable student housing more genuinely affordable for lower-income students sharing rooms.

The rent limit for unshared bedrooms for lower-income students is now explicitly stated as 65 percent of AMI rent limit for an efficiency unit (previously described as 65 percent of AMI rent limit for the appropriate unit size without specifying efficiency).

A new subclause (ic) was added providing that if a specific AMI percentage is not published by the California Tax Credit Allocation Committee, it shall be determined by applying that percentage as a multiplication factor to the area median income published by CTAC for the relevant area.

The per-bed rent limit calculation now explicitly references 'beds in the shared bedroom' rather than just 'the number of bedrooms,' clarifying that the division is by actual bed count in a shared arrangement.

In the legislative digest, the requirement for additional rental units was narrowed from 'lower income students or moderate-income students' to just 'moderate-income students,' though the 50 percent cap on total restricted units still covers both categories.

Removed the requirement that, as a condition of receiving a certificate of occupancy, the developer must provide evidence of an operating agreement or master lease with one or more institutions of higher education. This lowers a barrier for developers seeking density bonuses on student housing.

Replaced the single rent formula (30% of 65% of area median income for a single-room occupancy unit type) with a tiered system: efficiency and one-bedroom units are capped at 65% of area median income rent limits set by the California Tax Credit Allocation Committee, while two-bedroom or larger units are capped at 80% of area median income rent limits divided by the number of bedrooms (with a per-bed limit of 75% of the per-bedroom limit if shared).

Clarified that a city or county must provide an additional density bonus for student housing developments that meet eligibility requirements and provide 24% of total units to lower income students, with the applicant agreeing to include additional affordable units for lower or moderate-income students, provided no more than 50% of total units are restricted to moderate- or lower-income students.

Assembly Member Ransom added as coauthor of the bill.

New rent cap for efficiency and one-bedroom units in student housing developments: rent shall not exceed the 65 percent of area median income rent limit for the appropriate unit size as established by the California Tax Credit Allocation Committee.

New rent cap for two-bedroom or larger units in student housing developments: rent shall not exceed the 80 percent of area median income rent limit for the appropriate unit size divided by the number of bedrooms. If a bedroom is shared, the per-bed rent limit is 75 percent of the per-bedroom rent limit.

The digest was revised to clarify that student housing developments meeting the requirements are eligible not only for a density bonus but also for 'other incentives or concessions' under the Density Bonus Law.