CAL.Regulation
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
Key points
- HCD may transfer residual receipts or excess reserves between developments of the same sponsor or affiliate.California Legislative Information
- Transfers may not impair other lenders' or public agencies' payment rights.California Legislative Information
- Replacement reserves may not fall below $1,000 per unit.California Legislative Information
- Chapter 795, Statutes of 2026; no urgency clause, so it takes effect January 1, 2027.California Legislative Information
Sources2 articles across 2 outlets
California Legislative Information
Office of the Governor