California lets for-sale density-bonus affordability be met through nonprofit homebuyer loans
Governor Gavin Newsom signed AB 939 (Chapter 790, Statutes of 2026) on September 29, 2026, adding Government Code section 65915.4. A developer may instead meet Density Bonus Law affordability for a for-sale unit by ensuring it is bought by a 501(c)(3) nonprofit housing corporation with a welfare exemption that sells to extremely low, very low or lower income families in a below-market interest rate loan program with a repurchase option. Cities and counties must ensure that purchase.
Enrolled text (California Legislative Information) → · Office of the Governor