Raayan Mohtashemi (Office of Senator Scott Wiener) + Natalie Spievack (Housing California)
This month’s Regulatory Committee brought together two vital perspectives on housing in California: a Capitol insider’s view on the latest legislation and budget dynamics, and a statewide advocate’s outlook on the deep funding gaps holding us back from hitting our housing goals.
Sacramento Update with Raayan Mohtashemi
Raayan from Senator Wiener’s office gave us a high-level update on what’s moving in Sacramento and what’s (still) up for negotiation.
Key highlights:
SB 79 has passed both chambers and shows momentum for CEQA reform. Raayan wasn’t staffing it directly but noted a generally optimistic tone in the Capitol, especially as SB 607 and similar bills gain traction.
AB 609, which many see as a potential gamechanger, is expected to include prevailing wage amendments – a long-anticipated compromise to secure labor support.
Historic preservation as a barrier to housing remains a hot topic. Senator Wiener is aware of how local and federal historic listings are being used to block housing and sees closing that loophole as a priority.
Additional topics discussed:
Fire zones under bills like SB 607/609 may require more nuanced treatment via building codes, rather than blanket allowances.
Transfer taxes: AB 698 would require cities to conduct feasibility studies before enacting new ones – something to watch as LA and SF push forward on creative revenue strategies.
Coastal Commission is slowly shifting, with more pro-housing appointees, though still not a majority.
Big picture idea: could office-to-residential incentives, like SF Mayor Lurie’s revenue-backed loan proposal, inspire a state-level program? Jury’s out, but it sparked interest.
Funding the 1 Million Homes Goal – Housing California
Natalie Spievack shared Housing California’s roadmap to reach 1 million new affordable homes by 2030, with a clear message: we don’t have a land or entitlement problem – we have a funding problem.
Topline numbers:
45,000 fully entitled affordable homes are ready to build across California, but need public financing to proceed.
Affordable housing programs are oversubscribed as much as 10:1.
Even at our best, California is only funding about 20% of what’s needed annually to reach long-term housing targets.
Solutions in progress:
A 2026 housing bond is being developed with Asm. Wicks, which will kick in and be crucial for funding starting in 2027. But we’ll need interim solutions to avoid a funding gap.
Programs like the Affordable Housing and Sustainable Communities Program (from cap-and-trade revenue) remain vital in the short term.
The Legislature's current budget proposal includes:
$500M for the Low-Income Housing Tax Credit
$120M for the Multifamily Housing Program
$300M for Dream for All
$0 for HHAP (Homeless Housing Assistance Program) – a disappointing outcome
Longer-term ideas in motion:
Lower the voter threshold for local housing bonds (potential $25B over 10 years)
Use Vehicle Miles Traveled (VMT) mitigation dollars for affordable housing (AB 1244)
Close corporate property tax loopholes, tax large estates, and create a State CRA to direct investment into housing and community development
Process improvements:
Speeding up post-entitlement timelines (AB 301, AB 660)
Deferring impact fees (SB 937), reducing monitoring fees (AB 2430), and improving HCD loan timing (AB 1053)
Pushing modular housing and other cost-saving innovations to stretch public dollars further
While HAC and Housing California don’t always align on every issue, we deeply appreciate their leadership and continued partnership in advancing the shared goal of more affordable homes across the state. Natalie’s presentation underscored the scale of what’s needed and the urgency to act collaboratively and creatively to get there.
Final Thoughts
This month’s RegComm made it clear: unlocking housing in California takes more than policy. It takes political will, durable funding, and thoughtful coordination across sectors. We’re grateful to Raayan and Natalie for their insights and to all our members for continuing to show up, ask tough questions, and push this work forward.
Thank you for being part of the conversation!