California Governor Signs Bill to Streamline Affordable Housing Financing

The legislation establishes a single application process for state funding and reduces duplicative reviews. State officials said the changes will move projects from approval to construction more quickly.

The bill creates a $100 million Disaster Rebuilding Fund for homeowners affected by natural disasters. It also extends $900 million in homelessness grants to local governments and provides an additional $700 million for affordable multifamily housing through tax credits.

Supporters said the streamlined process could reduce construction costs by $60,000 to $70,000 per unit. State Sen. Jesse Arreguín stated the measure will make it easier to build and distribute funds faster. Newsom said the state has recorded a 59 percent increase in housing construction since 2019 and a 57 percent reduction in average permit times.

The bill received broad bipartisan support, passing with 18 opposing votes across both legislative chambers.