SB 677: Housing financing: joint powers agreements: bond approvals:subdivisions: tentative and final maps: appeals.

Session Year: 2025-2026
House: Senate
Latest Version Date: 2026-07-07

Current Status:

In Progress

(2026-08-06: Read second time. Ordered to third reading.)

Introduced

In Committee

Awaiting First Chamber Vote

Passed First Chamber

In Committee

Awaiting Second Chamber Vote

Passed Second Chamber

Enacted

Version:

Existing law, the Housing Accountability Act (act), among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households unless the local agency makes written findings as to one of certain sets of conditions, as specified. The act defines the term disapprove the housing development project for its purposes to include various actions, or inactions, by a local agency, as specified.This bill would expand the definition of disapprove the housing development project under the act to include, in the case of a housing development project that includes the issuance of tax-exempt private activity bonds, a local agencys failure to take the actions required by certain federal tax regulations in connection with the issuance of those tax-exempt private activity bonds. The bill would specify that these provisions do not require a local agency to take any action that would result in it incurring any financial liability, debt, or obligation. By mandating new duties on local agencies with respect to housing development projects that include the issuance of tax-exempt private activity bonds, this bill would impose a state-mandated local program.

Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law, for the purposes of that act, defines the term public agency to include various federal, state, local, and tribal entities. Existing law requires approval by the Department of General Services of certain joint powers agreements that include the state as a member, as provided. Existing law authorizes a joint powers authority to issue revenue bonds to pay the costs and expenses of acquiring, constructing, or conducting a program for, among other things, low-income housing projects owned or operated by a city, county, city and county, or housing authority.

Existing law provides that the Treasurer and the Secretary of State are designated as elected representatives for federal tax purposes of a joint powers agency created to approve or certify the issuance of bonds, notes, or other evidence of indebtedness issued by or on behalf of the joint powers agency to the extent approval is required by federal tax law.

This bill would, instead, provide that the Treasurer is designated as an applicable elected representative of a joint powers authority and may, at the discretion of the joint powers authority, approve the issuance of bonds, notes, or other evidence of indebtedness issued by or on behalf of the joint powers agency to the extent approval is required by federal tax law, as specified. The bill would additionally authorize the Treasurer to execute an agreement including the state as a member of a joint powers authority without obtaining approval from the Department of General Services and would authorize the Treasurer to provide any approval, consent, or other action related to the issuance of bonds, including, but not limited to, approvals required by federal tax law.

Existing law additionally authorizes, subject to specified limitations, any city or county to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing.

This bill would specify that, for the purposes of the above-described provisions, city, county, and city and county are deemed to include the state when the state is a member of a joint powers authority, and would specify that the Treasurer provides the applicable approval, consent, or other action with respect to the issuance of bonds.

The bill would declare that its provisions are declaratory of existing law.

Existing law provides that the State of California will not change the composition of a joint powers authority that has issued bonds, unless the change is authorized by a majority vote of applicable legislative bodies, as provided. Existing law defines change in composition to include, among others, the addition of a public agency, as defined, to a joint powers authority.

This bill would, notwithstanding the above-described definition, provide that the state becoming a member of an existing joint powers authority shall not, in and of itself, constitute a change in composition.

The bill would make additional nonsubstantive and conforming changes.

Existing law, the Subdivision Map Act, provides for the approval of tentative and final parcel maps by various local officials, as specified. The act authorizes an appeal of the local officials decision to the local legislative body, as provided.

This bill would create an exception from the above-described authority as it applies to appeals by an interested person for maps that meet specified criteria, as provided. The bill would exempt from these provisions an appeal filed by an applicant, subdivider, tenant, advisory agency, or public agency or official, as specified.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Discussed in Hearing