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California requires affordable-housing programs to accommodate factory-built housing by 2027

Governor Gavin Newsom signed AB 2185 (Chapter 784, Statutes of 2026) on September 29, 2026. New Health and Safety Code section 50158 requires state housing agencies administering nine multifamily affordable-housing programs, including the low-income housing tax credit and Multifamily Housing programs, to revise their guidelines by July 1, 2027 to facilitate factory-built housing, treat it as an allowable use of funds, and make early deposits available for upfront material and factory-production costs.

Enrolled text (California Legislative Information) → · Office of the Governor

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RegulationCal.AB 2185 — Factory-Built Housing in Affordable ProgramsComplianceRegulatoryFor practitionersFor governance