CAL.Regulation
California extends undertaking-bond protection to student housing developments
Governor Gavin Newsom signed SB 916 on September 29, 2026. It amends Code of Civil Procedure section 529.2 so defendants in suits challenging student housing developments, like affordable housing projects, may ask the court to require the plaintiff to post an undertaking if the action is meritless and brought in bad faith, vexatiously or for delay. The plaintiff’s liability is capped at $1 million, and courts may waive the bond for undue hardship.
Enrolled text (California Legislative Information) → · Office of the Governor
Key points
- Defendants may seek an undertaking when a suit against student housing is without merit and brought in bad faith or for delay.California Legislative Information
- Plaintiff liability under the undertaking is capped at $1 million; courts may reduce or waive it for undue economic hardship.California Legislative Information
- Chapter 805, Statutes of 2026, amends Code of Civil Procedure section 529.2; it takes effect January 1, 2027.California Legislative Information
- Signed September 29, 2026 as part of California's housing and homelessness package.Office of the Governor
Sources2 articles across 2 outlets
California Legislative Information
Office of the Governor