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AB 1165

California Housing Justice Act of 2025.

2025-2026 Regular Session Introduced by Mike Gipson

Creates the California Housing Justice Fund to provide ongoing state financing and oversight to build and preserve affordable, supportive housing and reduce homelessness.

In committee: Referred to APPR. suspense file.
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Bill Summary · AB 1165

AB 1165 — California Housing Justice Act of 2025

Sponsor/Author: Gipson
Status: In committee (set for first hearing; hearing canceled at request of author). Introduced Feb 21, 2025. Re-referred to Assembly Appropriations after passing Assembly Housing & Community Development (Ayes 9, Noes 1).

Purpose / Intent

AB 1165 seeks to establish a sustained, statewide financing and accountability framework to “solve homelessness and housing unaffordability” in California. The bill declares that homelessness and housing cost burden are urgent, system-wide problems caused by long-term disinvestment, discrimination, and insufficient supply, and that large, ongoing public investments coupled with stronger oversight are required.

Key provisions

  • Creates the California Housing Justice Fund (a General Fund subaccount) and directs the Legislature to provide an ongoing annual allocation “in an amount needed to solve homelessness and housing unaffordability” (amount to be set by the Legislature).
  • Requires that monies in the Fund be appropriated annually by the Legislature to the Business, Consumer Services, and Housing Agency (Agency) and expended by the Department of Housing and Community Development (HCD) to support:
    • Development, acquisition, rehabilitation, and preservation of affordable and supportive housing affordable to acutely low, extremely low, very low, and lower‑income households.
  • Requires HCD, by no later than January 1, 2027, to develop (in collaboration with specified state and local entities) two finance plans: one to “solve homelessness” and one to “solve the housing unaffordability crisis,” together with statewide annual performance metrics.
  • Requires the Agency to report to the Legislature annually (on or before October 1, beginning 2027) on progress toward finance-plan benchmarks and to publish and update goals and progress on its website at least annually.
  • Establishes a new culture of state oversight and accountability for local governments and funded grantees; the bill imposes new duties on local entities (potential state‑mandated local program).
  • If the Commission on State Mandates determines the bill imposes reimbursable costs, reimbursement follows existing statutory procedures.
  • Makes nonsubstantive changes to the Zenovich‑Moscone‑Chacon Act findings.

Who would be affected

  • State: HCD and the Business, Consumer Services, and Housing Agency (administration, reporting, planning, and fund distribution).
  • Local governments, Continuums of Care, homeless service providers, affordable housing developers and owners (new requirements, potential conditions for funding).
  • Low‑income Californians—particularly acutely low, extremely low, very low, and lower‑income households—targeted beneficiaries of housing production, preservation, and rental supports.

Fiscal and procedural notes

  • The bill does not set a specific dollar amount but requires an ongoing Legislative appropriation; some referenced analyses/plans cited an illustrative need equal to 6% of the state budget for housing solutions, but AB 1165 leaves appropriation decisions to future budgets.
  • Assembly Housing & Community Development passed the bill (with amendments); it is pending in Assembly Appropriations. The May 14, 2025 hearing was canceled at the author’s request.

Expected impact

If enacted and funded, AB 1165 would establish a permanent funding vehicle and statewide planning/measurement framework intended to scale production/preservation of affordable and supportive housing and expand homelessness solutions. The magnitude and timing of outcomes depend on future annual appropriations, implementation details in the HCD finance plans, and local coordination.

Compiled from official sources — confirm details with the bill’s official record.

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