Appropriations committee gives due-pass recommendation to AB 1339, orders study of affordable-housing insurance availability

The Appropriations Committee gave a due-pass recommendation to AB 1339, a bill that would (upon appropriation) require the Department of Insurance to study availability and affordability of property, liability and builders-risk insurance for affordable-housing providers and report back within a year.

Assemblymember Gonzales presented the bill and said rising insurance costs are straining affordable housing providers that cannot pass premium increases through rents. "This targeted one-time study is a modest expenditure compared to the potential fiscal risk of affordable housing projects failing, stalling or collapsing due to unmanageable insurance costs," she said. The Department of Finance estimated modest administrative costs to complete the study — the department cited $89,000 in 2025–26 and $125,000 in 2026–27 from the insurance fund to complete the work.

After brief committee discussion and a motion to give AB 1339 a due-pass recommendation, the committee called the roll. A partial tally was announced (“Current vote is 4 to 0”) and the chair said the measure would be put on call for absent members. The committee’s action signals a path to the Senate floor subject to the remaining votes being recorded.

Why it matters: Affordable-housing providers, especially mission-driven non-profit developers operating under rent restrictions, have limited ability to recover rising insurance costs. The requested study would examine insurance-market constraints and potential policy responses and could inform future budget or policy action.

Next steps: The committee adopted a due-pass recommendation and placed the measure on call; absent and remaining members will be recorded and, if the committee completes the action, the bill would go to the Senate floor for further consideration.