AB 787 - NYU Furman Center

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
AB 787	CA	2021	D	Affordable housing incentives and financing, Fair distribution of housing, Planning Requirements

Provided by Furman

Summary

Authorizes local planning agencies to count existing multifamily units converted to deed-restricted affordable housing toward up to 25% of their moderate-income regional housing need allocation (RHNA).
Jurisdictions may reduce their RHNA on a unit-for-unit basis for converted units included in their annual progress reports to HCD, provided the units meet these requirements:

Report clearly indicates units are existing (not newly constructed)
Pre-conversion rent was not affordable to very low, low-, or moderate-income households
Unit subject to 55-year affordability covenant
Post-conversion rent is at least 10% less than average monthly rent for previous 12 months
Unit is decent, safe, and sanitary
Unit was not acquired through eminent domain
Unit subject to governmental monitoring
Public entity has right to purchase development at price not exceeding outstanding indebtedness principal plus all taxes attributed to sale

HCD is not required to implement until January 1, 2023; however, planning agencies may report conversions occurring on or after January 1, 2022, in reports issued after January 1, 2023.