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AB 726

Relating to: minimum wage for all inmates and residents of state correctional institutions and county jails and making an appropriation. (FE)

2025-2026 Regular Session Introduced by Margaret Arney and 15 co-sponsors

Local jurisdictions may optionally report rehabilitated deed‑restricted affordable units in annual housing reports, without counting them toward streamlined approval affordability

Read first time and referred to Committee on Corrections
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Bill Summary · AB 726

AB 726 (Ávila Farías) — Summary

Status: Enacted — Chapter 704, Statutes of 2025 (signed by Governor Oct 13, 2025)

Purpose / Intent

AB 726 amends Government Code section 65400 (annual planning reports) to allow local jurisdictions to report certain substantially rehabilitated, deed‑restricted affordable housing units in their statutorily required annual housing reports. The change recognizes major rehabilitation of long‑standing deed‑restricted units in municipal/county reporting while preventing those rehabilitated units from being used to meet affordability thresholds for certain accelerated/streamlined approval eligibility.

Key provisions

  • Annual report timing retained: local planning agencies must provide an annual report by April 1 to the legislative body, the Office of Land Use and Climate Innovation, and the Department of Housing and Community Development (HCD).
  • New optional reporting item: the annual report may include the number of units that meet all of the following:
    • Are existing deed‑restricted affordable housing units with an average affordability no greater than 45% of Area Median Income (AMI);
    • Are at least 15 years old; and
    • Have been substantially rehabilitated with at least $60,000 per unit in funds awarded by the city (or county for unincorporated areas). The $60,000 per unit threshold may include forgiveness of principal or interest on existing debt.
  • Exclusion for streamlined approvals: any units included in the report under this provision shall not be counted when determining affordability requirements for purposes of eligibility for streamlined approvals (see paragraph (4) of subdivision (a) of Gov. Code § 65913.4).
  • Technical update: updates a reference to the Office of Land Use and Climate Innovation (formerly the Office of Planning and Research).
  • Conditional incorporation: the bill states it incorporates certain additional changes proposed by AB 670 to §65400 only if both bills are enacted and AB 726 is enacted last.

Who is affected

  • Local agencies (cities and counties): get an optional method to report rehabilitated, deed‑restricted affordable units in their required annual housing reports.
  • Department of Housing and Community Development and Office of Land Use and Climate Innovation: recipients of the expanded reporting data and continue to use standard forms and definitions for the housing element portion of the report.
  • Owners/operators of deed‑restricted affordable housing and jurisdictions that fund rehabilitations: those rehabilitations that meet the thresholds can be included in local reports.
  • Applicants relying on streamlined approval pathways: jurisdictions and applicants cannot use these reported rehabilitated units to satisfy affordability thresholds that make a project eligible for streamlined approvals.

Fiscal and procedural notes

  • Digest indicates: Vote — majority; Appropriation — no; Fiscal committee — yes.
  • Legislative chronology (selected): introduced Feb 18, 2025; moved through Assembly and Senate committees; passed both houses (unanimous recorded votes in later stages); enrolled and presented to the Governor Sep 24, 2025; signed and chaptered Oct 13, 2025 (Chapter 704, Statutes of 2025).
  • Effective date: the bill is chaptered into state law (Oct 13, 2025). (No special operative date is specified in the provided text.)

Practical implication

AB 726 creates a narrow reporting option that allows jurisdictions to document investment in the preservation and rehabilitation of long‑standing deed‑restricted affordable housing while preventing those preserved units from being used to meet certain affordability thresholds tied to expedited development approvals. This balances recognition of preservation activity with safeguards against counting rehabilitated units toward eligibility for streamlined entitlements.

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

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