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AB 726

Planning and zoning: annual report: rehabilitated units.

2025-2026 Regular Session

AB 726 requires local agencies to report on rehabilitated affordable housing units, promoting transparency and encouraging investment in existing housing stock.

Chaptered by Secretary of State - Chapter 704, Statutes of 2025.
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Bill Summary · AB 726

Summary of AB 726: Planning and Zoning: Annual Report: Rehabilitated Units

Bill Overview

  • Bill Number: AB 726
  • Introduced: February 18, 2025
  • Status: Chaptered by Secretary of State - Chapter 704, Statutes of 2025
  • Author: Ávila Farías
  • Vote Requirement: Majority
  • Fiscal Committee: Yes
  • Local Program: No

Purpose and Intent

AB 726 aims to enhance the reporting requirements for local agencies regarding the status of affordable housing units that have undergone substantial rehabilitation. The bill allows local agencies to report on specific rehabilitated units in their annual housing reports, thereby promoting transparency and accountability in meeting housing needs.

Key Provisions

  1. Annual Reporting Requirement:

    • Local agencies (cities and counties) must provide an annual report by April 1 to the Office of Land Use and Climate Innovation and the Department of Housing and Community Development.
    • The report must detail progress in meeting regional housing needs and include various metrics related to housing development.

  2. Inclusion of Rehabilitated Units:

    • Local agencies can include in their annual reports the number of existing deed-restricted affordable housing units that:
      • Are at least 15 years old.
      • Have been substantially rehabilitated with a minimum of $60,000 per unit in funding from the city or county.
      • Have an average affordability no greater than 45% of the area median income.

  3. Exclusion from Affordability Calculations:

    • Units reported under this provision will not be considered when determining affordability requirements for streamlined approvals, ensuring that these rehabilitated units do not count against local housing obligations.

  4. Nonsubstantive Changes:

    • The bill updates references to the Office of Land Use and Climate Innovation, reflecting its rebranding from the Office of Planning and Research.

  5. Interaction with Other Legislation:

    • The bill incorporates additional changes to Section 65400 of the Government Code proposed by AB 670, which will take effect only if both bills are enacted and AB 726 is enacted last.

Impact

  • Local Governments: This bill provides local governments with a mechanism to highlight their efforts in rehabilitating affordable housing, potentially improving public perception and accountability.
  • Affordable Housing Sector: By allowing the inclusion of rehabilitated units in annual reports, the bill encourages investment in existing affordable housing stock, which may lead to improved living conditions for residents.
  • Streamlined Approvals: The exclusion of these units from affordability calculations may facilitate the approval process for new developments, as local agencies can focus on meeting their housing obligations without the burden of counting rehabilitated units.

Procedural Aspects

  • The bill was approved by the Governor on October 13, 2025, and was chaptered into law the same day.
  • It passed through various committees and legislative readings, demonstrating broad support with no recorded opposition during the voting process.

Conclusion

AB 726 represents a significant step in California's ongoing efforts to address housing needs by enhancing the reporting framework for rehabilitated affordable housing units. By allowing local agencies to showcase their rehabilitation efforts, the bill aims to foster a more comprehensive understanding of housing development and its impacts on community needs.

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

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