CAL.Regulation
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
Key points
- For-sale density-bonus affordability may be met via nonprofit housing corporation purchases.California Legislative Information
- The buyer must be a 501(c)(3) nonprofit housing corporation holding a property-tax welfare exemption.California Legislative Information
- Units go to extremely low, very low or lower income families in a below-market interest rate loan program.California Legislative Information
- Purchase contracts must give the nonprofit a right to repurchase before any later resale.California Legislative Information
- Chapter 790, 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
Filed under
RegulationCal.AB 939 — Density Bonus For-Sale AffordabilityConsumer protectionRegulatoryFor practitionersFor governance