Housing development: density bonuses: affordability of for-sale units.

The bill now adds a new Section 65915.4 to the Government Code in addition to amending existing Section 65915. This expands the bill beyond modifying the current density bonus statute to creating an entirely new code section, likely addressing additional housing development requirements or procedures.

Corrected a duplicated phrase: 'below-market below market interest rate loan program' was fixed to 'below market interest rate loan program' in both the digest and operative text.

Corrected duplicated words in the for-sale unit provision: 'sold to to, and occupied by by' was fixed to 'sold to, and occupied by.'

Fixed a cross-reference error in the student housing provision: 'pursuant to paragraph (3) of subdivision (c) (c)' was corrected to 'pursuant to paragraph (3) of subdivision (c).'

Fixed a duplicated cross-reference in the equity sharing agreement enforcement provision: 'clause (ii) or (iii) of subparagraph (A) (A)' was corrected to 'clause (ii) or (iii) of subparagraph (A).'

Page numbers were renumbered from 96 to 95 throughout the document, reflecting minor formatting adjustments.

A new clause (iii) under paragraph (2)(A) allows for-sale units to meet affordability requirements if purchased by a qualified nonprofit housing corporation whose purchase contracts include a repurchase option requiring subsequent sellers to offer the property back to the nonprofit before selling to others, pursuant to an equity sharing agreement or affordability restrictions preserving lower income housing for at least 45 years.

The new equity sharing agreement must include a deed restriction provision ensuring homeowners recover their investments in home maintenance or improvements and receive a minimum of 20 percent of the property value increase during their ownership term.

The equity sharing agreement enforcement provision (subparagraph C) was updated to reference clause (i), (ii), or (iii) of subparagraph (A), incorporating the new nonprofit repurchase pathway into the local government's enforcement duties.

Target income categories for the nonprofit-purchased for-sale units were expanded from 'low-income families' to 'extremely low, very low, or lower income families' as defined in Section 50052.5 of the Health and Safety Code.

The section reference was simplified by removing 'amended by Section 1.5 of Chapter 486 of the Statutes of 2025,' indicating that prior amendment language has been incorporated into the base statute text.

The entire Safe, Sustainable, Traffic-Reducing Transportation Bond Act of 2026 was removed. This had authorized $20 billion in bonds for transit, passenger rail, local streets and roads, zero-emission vehicles, freight infrastructure, and grade separations, to be submitted to voters on November 3, 2026.

The vote threshold for passage was changed from a two-thirds majority to a simple majority, making it easier for the bill to pass the Assembly.

Assembly Members Solache and Wicks were added as coauthors of the bill.

The legislative counsel's digest was refined to clarify that the nonprofit corporation purchase option applies to properties sold to low-income families who are 'occupied by extremely low, very low, or lower income families' participating in a below-market interest rate loan program, and changed 'as specified' to 'as described.'

The bill now amends Government Code Section 65915 (the Density Bonus Law) in addition to authorizing the $20 billion transportation bond. The scope expanded from transportation infrastructure to also include housing affordability policy.

A new option was added for for-sale units that qualified a developer for a density bonus: the unit may be purchased by a nonprofit corporation organized under IRC 501(c)(3) that receives a welfare exemption under Revenue and Taxation Code Section 214.15, for properties to be sold to low-income families participating in a below-market interest rate loan program. This is an alternative to the existing options of initial sale to an income-qualified buyer or purchase by a qualified nonprofit housing corporation.

The fiscal note changed 'State-mandated local program' from 'no' to 'yes,' acknowledging that the new housing provision imposes obligations on local agencies. The bill specifies that no state reimbursement is required for this mandate.

Added a definition of 'qualified nonprofit housing corporation' as a 501(c)(3) nonprofit that has received a welfare exemption under R&T Code Section 214.15 for properties intended to be sold to low-income families in a special no-interest loan program.