California lets HCD shift residual receipts between developments of the same sponsor
Governor Gavin Newsom signed AB 2020 (Chapter 795, Statutes of 2026) on September 29, 2026. New Health and Safety Code section 50406.4.5 lets the Department of Housing and Community Development, in its sole discretion, transfer its residual receipts share or excess reserves from one HCD-regulated rental development as equity to another owned by the same sponsor or an affiliate. Transfers may not impair other lenders' payment rights or leave replacement reserves below $1,000 per unit.
Enrolled text (California Legislative Information) → · Office of the Governor