CalHFA's legislative director briefed the board on Sept. 18 about state bills relevant to the agency and federal developments that could affect affordable housing financing.

At the state level, Mejid Tabar told the board that Assembly Bill 57, which would create a Dream for All geographic set-aside for descendants of enslaved persons, had passed both houses and was on the governor's desk. He also reported that Senate Bill 750 (a loan guarantee/credit enhancement proposal that explicitly named CalHFA earlier in the session) was held and may be revisited in the second year of the two-year legislative session. Two housing bond measures (AB 736 and SB 417) remain active and are expected to move forward next year as two-year bills.

On the federal front, Tabar summarized the recent reconciliation package the president signed and subsequent rulemaking and guidance the agencies are issuing. Key points flagged for CalHFA include a permanent 12% increase in the 9% low-income housing tax credit (LIHTC) authority and a reduction in the bond-financing threshold for the 4% credit from 50% to 25%. Tabar said preliminary estimates suggest these changes could support roughly 200,000 new rental homes in California and create about 300,000 jobs, though he cautioned final impacts depend on guidance and market pricing.

Tabar also highlighted the Road to Housing Act, a bipartisan federal housing bill that has proposals ranging from Community Reinvestment Act-related reforms to NEPA streamlining and expanded HOME funding. He said the bill remains under consideration in Congress and contains language that could broaden ADU financing and expand manufactured housing eligibility.

Board members asked about potential impacts to the agency's multifamily portfolio and tax-credit pricing. CalHFA staff said the increase in tax-credit supply may reduce credit prices, creating feasibility gaps that will likely increase demand for additional soft subsidy and change the profile of projects that are feasible. CalHFA staff are reviewing their portfolio and will monitor changes in tax-credit pricing and investor demand.

Ending: staff committed to tracking federal rulemaking and legislative developments and to return to the board with any direct implications for CalHFA programs and multifamily finance.