(1) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards, including that the development is a multifamily housing development that contains two or more residential units. This bill would deem an adaptive reuse project a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process if the project meets specified requirements, subject to specified exceptions. In this regard, an adaptive reuse project, in order to qualify for the streamlined, ministerial review process, would be required to be proposed for an existing building or structure that is less than 50 years old or meets certain requirements regarding the preservation of historic resources, including the signing of an affidavit declaring that the project will comply with the United States Secretary of the Interior's Standards for Rehabilitation for, among other things, the preservation of exterior facades of a building or structure that face a street, or receive federal or state historic rehabilitation tax credits, as specified. The bill would require an adaptive reuse project to meet specified affordability criteria. In this regard, the bill would require an adaptive reuse project for rental housing to include either 8% of the unit for very low income households and 5% of the units for extremely low income households or 15% of the units for lower income households. For an adaptive reuse project for owner-occupied housing, the bill would require the development to offer either 30% of the units at an affordable housing cost to moderate-income households or 15% of the units at an affordable housing cost to lower income households. For an adaptive reuse project including mixed uses, the bill would require at least one-half of the square footage of the adaptive reuse project to be dedicated to residential uses. The bill would prohibit an adaptive reuse project from being permitted in industrial zones that do not permit residential uses. The bill would provide, among other things relating to projects involving adaptive reuse, that parking is not required for the portion of a project consisting of a building subject to adaptive reuse that does not have existing onsite parking. The bill would authorize an adaptive reuse project subject to these provisions to include the development of new residential or mixed-use structures on undeveloped areas and parking areas located on the same parcel as the proposed repurposed building, or on the parcels adjacent to the proposed adaptive reuse project site if certain conditions are met. The bill would subject an adaptive reuse project approved by a local government pursuant to these provisions to specified labor standards, including certain labor prevailing wage, apprenticeship, skilled and training workforce, and health care expenditure requirements, and would require development proponents to certify compliance with certain labor standards under penalty of perjury. By requiring certain development proponents of an adaptive reuse project to sign an affidavit regarding the preservation of historic resources and requiring development proponents to certify compliance with certain labor standards under penalty of perjury, the bill would expand the crime of perjury and therefore impose a state-mandated local program. The bill would authorize a local government to adopt an ordinance, as specified, to, among other things, specify the process and requirements applicable to adaptive reuse projects, as specified, and would require an adaptive reuse project to comply with all objective planning standards found in the ordinance. The bill would specify that nothing in its provisions relating to adaptive reuse projects is intended to preempt the adoption and implementation of a local ordinance that provides alternative procedures and substantive requirements for adaptive reuse projects, provided that the local ordinance does not prohibit an applicant from electing to pursue an adaptive reuse project, as specified. The bill would require a local agency that has not adopted an above-described ordinance to ministerially without discretionary review approve or disapprove applications for a permit to create or serve an adaptive reuse project, as specified. The bill would, if a local government's planning director or equivalent position determines that the adaptive reuse project submitted pursuant to these provisions is consistent with the objective planning standards, require the local government to approve the adaptive reuse project within specified timeframes. The bill would require the local government staff or relevant local planning and permitting department, upon determining that the adaptive reuse project is in conflict with any of the objective planning standards, to provide the proponent written documentation of, among other things, which standard or standards the development conflicts with within specific timeframes. The bill would prohibit a local government from imposing any local development standard on any project that is an adaptive reuse that would require alteration of the existing building envelope, except as specified, whether or not the local government has adopted an ordinance. By requiring local governments to implement the streamlined, ministerial review process for adaptive reuse projects, the bill would impose a state-mandated local program. This bill would, except as specified, exempt an adaptive reuse project from all impact fees that are not reasonably related to the impacts resulting from the change of use of the site from nonresidential to residential or mixed use and would require any fees charged to be roughly proportional to the difference in impacts caused by the change of use. This bill would authorize a city or county, or city and county, commencing in the 2026–27 fiscal year, to establish an adaptive reuse investment incentive program to pay adaptive reuse investment incentive funds to the proponent of an adaptive reuse project approved pursuant to the streamlined, ministerial process described above for up to 30 consecutive fiscal years, as specified. The bill would define "adaptive reuse investment incentive funds" to mean an amount up to or equal to the amount of ad valorem property tax revenue allocated to the participating local agency from the taxation of that portion of the total assessed value of the real and personal property of an adaptive reuse project property that is in excess of the qualified adaptive reuse project property's valuation at the time of the proponent's initial request for funding. The bill would define various other terms for these purposes, and would make findings and declarations related to its provisions. The bill would make its provisions operative on July 1, 2026. (2) Existing law, the California Environmental Quality Act (CEQA) , requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the streamlined, ministerial review process described above, would exempt the approval of adaptive reuse projects subject to those processes from CEQA. The bill would also exempt specified findings regarding industrial uses and ordinances adopted to implement specified provisions from CEQA. (3) Existing law requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other mandatory elements, a housing element. Existing law requires the Department of Housing and Community Development to notify a city, county, or city and county, and authorizes the department to notify the Attorney General, that a city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to that element, or any specified action or failure to act, does not substantially comply with the law as it pertains to housing elements or that any local government has taken an action in violation of certain housing laws. This bill would make corrections to a housing law cross-reference relating to the adaptive reuse project process established by the bill, thereby making a violation of that adaptive reuse project process by a city, county, or city and county subject to the above-described notification requirements. (4) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (5) This bill would incorporate additional changes to Section 65585 of the Government Code proposed by AB 650 to be operative only if this bill and AB 650 are enacted and this bill is enacted last. (6) 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 specified reasons.
Existing law, the Permit Streamlining Act, requires a public agency to determine whether an application for a development project is complete within specified time periods, as specified. The act requires a public agency that is the lead agency for a development project to approve or disapprove that project within specified time periods. Existing law, the California Emergency Services Act, among other things, authorizes the governing body of a city, county, or city and county to proclaim a local emergency under certain circumstances, as specified, and grants political subdivisions various powers and authorities in periods of local emergency. This bill would require a city, county, or city and county to approve or deny a complete application, within 10 business days of receipt of the application, for a building permit or an equivalent permit for any of the specified structures intended to be used by a person until the rebuilding or repair of an affected property is complete. By imposing new duties on local agencies, this bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. 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.
Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations. This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, upon request by a small rural jurisdiction, to the extent feasible, the bill would require HCD to evaluate materials from the small rural jurisdiction's housing element submission when determining whether the jurisdiction qualifies as prohousing, but only with respect to those small rural jurisdictions that have a compliant housing element. The bill would also prohibit HCD from requiring small rural jurisdictions to renew their prohousing designation for at least 4 years. The bill would define "small rural jurisdiction" for these purposes to mean either a city with a population of fewer than 25,000 persons or a county with a population of fewer than 200,000 persons. This bill would incorporate additional changes to Section 65589.9 of the Government Code proposed by SB 262 to be operative only if this bill and SB 262 are enacted and this bill is enacted last.
(1) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries. Existing law requires the general plan to include, among other mandatory elements, a housing element, and requires the housing element to include, among other things, an inventory of land suitable and available for residential development. Existing law requires, for the 4th and subsequent revisions of the housing element, the department to determine the existing and projected need for housing for each region, as specified. Existing law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region at least 2 years prior to the scheduled revision of the housing element, as provided. Existing law requires the department to meet and consult with the council of governments regarding the assumptions and methodology to be used to determine the region's housing needs at least 26 months prior to the scheduled revision of the housing element, as provided. This bill, except as specified, would extend the above-described timeline for the department to determine the existing and projected need of housing for each region from 2 years to 3 years prior to the scheduled revision of the housing element. The bill would require the department to meet and consult with the council of governments, as described above, pursuant to prescribed deadlines. For the 7th revision of the housing element, the bill would require the department to meet and consult with each council of governments at least 38 months prior to the scheduled revision, except for specified councils of governments. For the 8th and subsequent revisions of the housing element, the bill would require the department to meet and consult with each council of governments at least 38 months prior to the scheduled revision. (2) Existing law authorizes at least 2 or more cities and a county, or counties, at least 28 months prior to the scheduled housing element revision, to form a subregional entity to allocate the subregion's existing and projected housing need among its members. Existing law requires the council of governments to determine the share of regional housing need assigned to each delegate subregion at least 25 months prior to the scheduled revision. Existing law also requires the share allocated to the delegate subregion or subregions by a council of governments to be in a proportion consistent with the distribution of households assumed for the comparable time period of the applicable regional transportation plan. This bill would instead require the share allocated to the delegate subregion or subregions by a council of governments to be in a proportion consistent with the subregion's share of the current adopted final regional housing need allocation plan. (3) Existing law requires certain transportation planning agencies to prepare and adopt a regional transportation plan directed at achieving a coordinated and balanced regional transportation system. Existing law requires that each regional transportation plan include a sustainable communities strategy developed to achieve greenhouse gas emission reduction targets for the automobile and light truck sector for 2020 and 2035 established by the State Air Resources Board. Existing law requires each council of governments, or delegate subregion as applicable, to consider certain factors in developing the methodology that allocates regional housing needs, including each member jurisdiction's existing and projected jobs and housing relationship. This bill would require each council of governments, or delegate subregion as applicable, to consider, in addition to the above-described factors, the development pattern set forth in the region's sustainable communities strategy of its regional transportation plan. (4) Existing law states the intent of the Legislature that housing planning be coordinated and integrated with the regional transportation plan. To achieve this goal, existing law requires the allocation plan to allocate housing units within the region consistent with the development pattern included in the sustainable communities strategy. Existing law also requires the resolution approving the final housing need allocation plan to demonstrate that the plan is consistent with the sustainable communities strategy in the regional transportation plan, among other things. This bill would instead require the allocation plan to be informed by the development pattern included in the sustainable communities strategy. The bill would also require the resolution approving the final housing need allocation plan to demonstrate that the plan is, instead, informed by the sustainable communities strategy in the regional transportation plan, among other things. (5) This bill would incorporate additional changes to Section 65584.01 of the Government Code proposed by SB 486 to be operative only if this bill and SB 486 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 65584.03 of the Government Code proposed by AB 650 to be operative only if this bill and AB 650 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 65584.04 of the Government Code proposed by SB 486 and AB 650, to be operative only if this bill and either or both of those bills are enacted and this bill is enacted last. (6) By imposing additional requirements on a local entity, this bill would impose a state-mandated local program. 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Mobilehome Residency Law, governs the terms and conditions of residency in mobilehome parks and prescribes the content of a rental agreement for a tenancy. Existing law requires that a copy of the Mobilehome Residency Law be provided as an exhibit and incorporated into the rental agreement by reference, as specified. Existing law also requires that a copy of a specified notice containing the rights and responsibilities of homeowners and park managers be included in the rental agreement and requires management to provide a copy of the notice to all homeowners each year, as specified. Existing law requires these and other notices required by the Mobilehome Residency Law to be either personally delivered to the homeowner or sent by mail, as specified, to the homeowner, unless otherwise provided. Existing law allows all notices required by the Mobilehome Residency Law to be delivered before February 1 of each year to be combined into one notice, as specified. This bill would, instead, require notices required by the Mobilehome Residency Law to be delivered to both the homeowner and resident of the mobilehome. The bill would also authorize the notices required by the Mobilehome Residency Law to be delivered prior to February 1 of each year to be delivered by electronic mail if the homeowner or resident has provided affirmative, written consent, as defined. The bill would allow a homeowner or resident to revoke their consent to receive notices by electronic mail at any time, without any fee, charge, or penalty, and without any impact to the terms of their tenancy, as specified. The bill would require management to deliver personally or by mail to the homeowner or resident a notice stating that the homeowner or resident has agreed to receive notices by electronic mail and may revoke this agreement, as provided. This bill would make nonsubstantive changes reflective of existing law, as provided.
Existing law regulates the terms and conditions of residential tenancies, including generally limiting the amount of security that a landlord may demand or receive to an amount or value equivalent to one month's rent, as provided, and allowing a landlord to claim of the security only those amounts as are reasonably necessary for specified purposes. Existing law defines a security for these purposes as any payment, fee, deposit, or charge, including any payment, fee, deposit, or charge, except as specified, that is imposed at a tenancy's beginning to reimburse a landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used for any purpose. Existing law requires a landlord to provide a tenant a copy of an itemized statement, as specified, and return the security's remaining portion to the tenant by personal delivery or by first-class mail, postage prepaid, no later than 21 calendar days after the tenant has vacated the premises, as specified. Existing law authorizes a landlord and tenant to mutually agree to have the landlord deposit electronically the security's remaining portion to a bank account or other financial institution designated by the tenant or provide a copy of the itemized statement to an email account provided by the tenant. This bill would revise these provisions to generally require the landlord to return the security by personal delivery or by check made payable to the tenant. If the landlord received the security or rental payments from the tenant electronically, the bill would instead require the landlord to return the remainder of the security electronically, as specified, unless the landlord and tenant designated another method of return, by written agreement. If the landlord received the security or rental payments from the tenant electronically, the bill would require the landlord to notify the tenant in writing of the tenant's right to receive the security electronically pursuant to these provisions, as specified. The bill would also instead authorize the landlord and tenant to mutually agree, as specified, to provide the itemized statement by either email to an email account provided by the tenant or mail by first-class mail, postage prepaid, to an address provided by the tenant. If multiple adult tenants reside in the unit, the bill would require the landlord to return the remainder of the security by a check made payable to all adult tenants, as specified, and provide the itemized statement by personal delivery or first-class mail, postage prepaid, to any one of the adult tenants chosen by the landlord, unless the landlord and all adult tenants, at the commencement of the tenancy or at any time during or after the tenancy, enter into a mutual written agreement containing specified provisions.
The California Coastal Act of 1976, which is administered by the California Coastal Commission, requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act provides for the submission and approval of long-range land use development plans as an alternative to project-by-project review to promote greater efficiency for the planning of public works or state university or college or private university development projects and provides for amendments to those plans. The act places limits on the conditions the commission may impose on projects contained in a plan that has been certified by the commission. The act authorizes the commission to, after a public hearing, by regulation, adopt procedures for the issuance by the executive director of the commission of waivers from coastal development permit requirements for any development that is de minimis, as specified. This bill would require the commission to defer to the state university or college or private university in determining the number of vehicle parking spaces necessary for residents of student, faculty, or staff housing facilities, as provided. The bill would authorize the executive director to determine that a proposed amendment to a public works plan or long-range development plan is de minimis and would provide the procedures for the determination and approval of amendments that are de minimis. The bill would require the commission to track and publish on a public portion of its internet website any public works plans or long-range development plans, amendments to public works plans or long-range development plans, and notices of impending development submitted by a state university or college or private university to the commission for approval, as specified.
Existing law, the California Community Care Facilities Act, requires the State Department of Social Services to license and regulate transitional housing placement providers, which is defined as organizations licensed by the department to provide transitional housing to foster children at least 16 years of age and not more than 18 years of age and to nonminor dependents to promote their transition to adulthood. Existing law requires the department to adopt regulations governing transitional housing placement living arrangement requirements for minors and nonminor dependents, including allowing a participant to share a bedroom or unit with certain other individuals and requiring all counties and program contracts to allow participants and those certain other individuals to share bedrooms, bathrooms, and units together, regardless of gender identity. Under existing law, a violation of the act is a misdemeanor. This bill would require all counties and program contracts to also ensure that decisions about sharing bedrooms, bathrooms, and units together are led by the program participant and agreed upon in collaboration with the provider. By increasing county duties, this bill would impose a state-mandated local program. Existing law requires an applicant to obtain certification from a county specifying the population that will be served by the facility in order to be licensed as a transitional housing placement provider. Existing law requires the certification to confirm that the program includes specified components, depending on the population served. This bill would specify contract requirements if a county contracts with a transitional housing placement provider, including prohibiting the contract from containing terms that create unreasonable barriers for a qualified foster youth's admission into or participation in the program. 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.
(1) Existing law governs the hiring of residential dwelling units. Existing law, the Tenant Protection Act of 2019, prohibits, until January 1, 2030, an owner of residential real property from terminating the tenancy of certain tenants without just cause, either at-fault or no-fault of the tenant, and requires just cause for terminating a tenancy to be stated in the written notice to terminate tenancy. The act requires an owner of residential real property subject to these provisions to provide the above-described notice to a tenant subject to specified requirements, including, for any tenancy commenced or renewed on or after July 1, 2020, as an addendum to the lease or rental agreement, or as a written notice signed by the tenant, with a copy provided to the tenant, except as specified. This bill would allow the above-described notice to be provided in the lease or rental agreement. (2) Existing law, the Planning and Zoning Law, requires an owner of an assisted housing development, as defined, that is within 3 years of a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract to provide notice of the scheduled expiration or termination to any prospective tenant at the time the prospective tenant is interviewed for eligibility, to existing tenants, as specified, and to affected public entities, as defined. This bill would require a notice of a scheduled expiration of rental restrictions or a scheduled termination of a subsidy contract described above to remain posted until the expiration or termination has occurred, and would make technical changes relating to these provisions. Existing law requires an owner of an assisted housing development, at least 12 months prior to the anticipated date of the termination of a subsidy contract, the expiration of rental restrictions, or prepayment on an assisted housing development, to provide a 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, as specified. Existing law also requires an owner of an assisted housing development proposing to terminate a subsidy contract, or prepay the mortgage, or sell or otherwise dispose of the assisted housing development to provide a notice of the opportunity to offer to purchase, as provided. Existing law requires the notice of the opportunity to purchase to be given before or concurrently with the notice of the proposed change described above, as specified. This bill would specify that the notice of the opportunity to purchase is required to be given before or concurrently with the 12-month notice of the proposed change, as specified. Existing law requires that the initial notice of a bona fide opportunity to submit an offer to purchase contain certain information, including a statement addressing, among other things, whether the owner has an interest in selling the property. Existing law also requires that the initial notice include a statement that specified types of entities, or any combination of them, have the right to purchase the development under these provisions. This bill would delete the requirement that the initial notice include a statement addressing whether the owner has an interest in selling the property. The bill would also clarify that the initial notice include a statement that the specified types of entities, as described above, have the right to submit a bona fide offer to purchase the development. Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power, including, among other things, that a trustee, mortgagee, or beneficiary, or any of their authorized agents, first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part or parcel thereof is situated, a notice of default, as specified. Existing law requires the mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale to mail the notice to specified individuals, including the office of the Controller, Sacramento, California, where, as of the recording date of the notice of default, a "Notice of Lien for Postponed Property Taxes" has been recorded against the real property to which the notice of default applies. This bill would additionally require the mortgagee, trustee, or other person authorized to record the notice of default or the notice of sale to mail the notice to the office of the Director of Housing and Community Development, Sacramento, California, and the office of the Executive Director of the California Tax Credit Allocation Committee, Sacramento, California, where, as of the recording date of the notice of default, a use restriction, as defined, has been recorded against the real property to which the notice of default applies. The bill would prohibit any failure to comply with the above-described provisions from affecting the validity of a trustee's sale or a sale in favor of a bona fide purchaser. (3) Existing law, the Zenovich-Moscone-Chacon Housing and Home Finance Act, prohibits "affordable rent" for certain rental housing developments that receive assistance on or after January 1, 1991, from exceeding a specified percentage based on the area median income adjusted for family size appropriate for the unit and whether the household is an acutely low income household, extremely low income household, very low income household, lower income household, or moderate-income household. Existing law, for a rental housing development that dedicates 80% of units to lower income households, as specified, prohibits affordable rent from exceeding the rent prescribed by deed restrictions or regulatory agreements pursuant to the terms of public financing or public financial assistance for the rental housing development, if the rental housing development receives specified awards on or after January 1, 2025. This bill would instead, for an above-described rental housing development that dedicates at least 80% of units to lower income households, as specified, prohibit affordable rent from exceeding an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee. By revising the limit on "affordable rent" for certain housing developments, thereby revising the duties of local government officials with respect to administering various programs and requirements that require a determination of "affordable rent," this bill would impose a state-mandated local program. (4) Existing law requires the Department of Housing and Community Development, through its Office of Migrant Services, to assist in the development, construction, reconstruction, rehabilitation, or operation of migrant farm labor centers, as provided. Existing law requires the department to develop a report that analyzes the feasibility and impact of transitioning housing units at Office of Migrant Services centers to year-round availability, and to submit that report to specified committees of the Legislature by July 1, 2027, as provided. Existing law, by December 31, 2028, and following completion of that report, requires the department to coordinate with the Department of General Services and the Department of Food and Agriculture to identify available excess sites in proximity to migrant farm labor centers. This bill would specify that, for the purposes of these provisions, the term "available excess sites" refers to prescribed previously identified sites, as provided. (5) This bill would incorporate additional changes to Section 1946.2 of the Civil Code proposed by SB 522 to be operative only if this bill and SB 522 are enacted and this bill is enacted last. (6) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency. This bill would authorize a borrower who is experiencing financial hardship that prevents the borrower from making timely payments on a specified residential mortgage loan due directly to the wildfire disaster described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025, or the federally declared disaster, declared on January 8, 2025, related to the Eaton Wildfire, the Palisades Fire, and the Straight-line Winds, to request forbearance on their residential mortgage loan, as prescribed. The bill would limit eligibility for that forbearance to loans that are secured by residential real property improved by 4 or fewer residential units. The bill would require the borrower to affirm that they are experiencing a financial hardship due to the wildfire disaster. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program. This bill would, except as specified, require a mortgage servicer to offer mortgage payment forbearance of a period of up to an initial 90 days, which shall be extended at the request of the borrower in 90-day increments, up to a maximum forbearance period of 12 months. The bill would also prohibit a mortgage servicer from assessing any late fees to the borrower's account or charging a default rate of interest during the forbearance period. The bill would provide that the forbearance period includes any period of forbearance related to the wildfire disaster that a mortgage servicer has provided to a borrower before the effective date of these provisions. The bill would require a mortgage servicer to report the credit obligations of borrowers under a disaster-related forbearance plan in compliance with the federal Fair Credit Reporting Act. For accounts granted disaster-related mortgage payment relief, the bill would prohibit mortgage servicers from furnishing information during the forbearance period indicating that the payments are in forbearance and would require them to report the credit obligation or account as current or delinquent, as specified. The bill would prohibit a mortgage servicer from initiating any judicial or nonjudicial foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure-related eviction or foreclosure during the period of forbearance. This bill would require the Department of Financial Protection and Innovation to post specified information on its website including links to the provisions of servicing guidelines pertaining to disaster-related forbearance relief for federally backed loans and a dedicated telephone number for borrowers seeking assistance. 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. This bill would declare that it is to take effect immediately as an urgency statute.
