August 27, 2026 · Housing · 1,965 words · 7 speakers · 87 segments
Good morning. I'd like to call to order this meeting of the Senate Standing Committee on Housing. We do not yet have a quorum, so the committee will operate as a subcommittee to hear bill presentations. And we'll begin first with file item 2, SB 457 by Senator Becker. And Senator, whenever you're ready, you may present. Also, very nice tie.
Go Giants. Thank you, Mr. Chair. Before we get started, I want to thank the committee staff. It's been incredibly constructive throughout the whole process. Coming off the Senate floor earlier this This year, the bill clarified what constituted valid in-kind services a city can offer for the purposes of receiving rena credit for preserving naturally occurring affordable housing. Working with SPUR, we've amended the bill to additionally direct HCD, develop and publish economic models that would allow jurisdictions to quickly and accurately estimate the realistic development capacity of any given site, grounded in real data for site inventory analysis. Historically, the lack of standardization in this analysis has meant every city has used a different method, even differing between parcels. What's great about this bill, it's a re-reform bill that even housing advocates can love. Housing advocates, local governments, developers all agree that our current approach needs to change. It's too time-consuming. The bang for the buck just really isn't there. This will just make it a much faster and more economical to develop housing elements. The bill is a meaningful step forward towards a more data-driven housing element process that will reduce ambiguity that has cost many cities both time and money at the expense of development. Request an aye vote.
Thank you.
Do you have any witnesses in support?
We have, yeah, Michael Lane. We're just here to answer questions. Certainly for technical support.
Okay, thank you very much. I want to invite anyone else who would like to express support for SB 457. Please come forward and set your name, organization, and position on the bill. Seeing no one come forward, are there any opposition witnesses? Seeing no opposition witnesses, we don't have a quorum yet. I'll bring it back to the dais for any questions or comments. Vice Chair Cierta.
Thank you. So I like the intent of this bill because cities have had a very, very difficult time trying to get through their housing elements. And the back and forth that has happened between them, HCD not having clear direction on what it is that they need to have better. And then also, you know, lacking some of the expertise because, you know, they frankly have a shortage of community planners out there. So that part of it I'm good with. I'm a little nervous about the part where we're kind of giving HCD kind of a lot of legal deference before we hear what their methodology is. Because if their methodology to deal with some of this is worse than what we started with, that's a concern. I'd rather hear their methodology first. You know, frankly, from my city's perspective, my several cities perspective, HCD is really housing. The community development part doesn pertain And we should just rename it housing um and and and so that that the part of of this that makes me a little bit um leery of of approve or you know being on board with this uh so i'd have to see their method methodology before i could support the bill
thanks thank you uh thank you so much center for this bill it's a it's a really excellent bill i I think showing how innovation can really help improve our housing element process. Senator Baltimore and SB 457.
You know, once again, local agents are not required to use the tool. But for those jurisdictions that don't have, you know, a huge planning department, you know, this tool could really help with the site capacity analysis. I know, having chaired the COG in the Bay Area, the Association of Bay Area Governments, that a lot of local jurisdictions, including smaller cities, are really resource constrained. And the state is requiring that local agencies have to do a lot in developing these housing elements. So this is a really great idea to provide additional tool to make it easier and to make sure cities comply, because that's the goal, is to achieve compliance. So I want to thank you very much.
And Senator Cabaldon, any questions or comments on SB 457? Now I'll turn it back over to you to make a closing statement.
Yeah, thank you. Yeah, all I represent are small and medium-sized cities, so we're optimistic this will be helpful. I appreciate the comments of Senator Sayarto. Hopefully we'll find that you will be happy with the methodology. We'll see how it all goes, but certainly I feel this is a big step forward. I respectfully ask for an aye vote.
Thank you, Senator. We don't have a quorum, but when we do, we will entertain a motion at that time. Thank you. And, Sergeant Sif, you can contact Senator Durazo's office. just to let her know that we're ready to have her present. I know that she's in the health committee. And so committee will recess for five minutes while we refer the next author to present. I'll go over to the vice chair as I present the next bill on behalf of the author. All right, the next bill we will be hearing is SB 1388. The author is Senator Durazzo, and it's going to be presented by the chair. Thank you.
Let me begin. Thank you, Mr. Chair and members. SB 1388 establishes the Affordable Housing Risk Reduction Program to help affordable housing providers reduce insurance costs by providing technical assistance. This will support providers in pursuing alternative insurance models and securing more affordable housing options than available in the current market. I want to clarify that this is not providing specific loans. This is about providing technical assistance. California is facing a dual crisis and affordable housing and insurance crisis. And while California is experiencing an ongoing supply shortage of affordable housing, affordable housing providers across California are facing limited availability of insurance coverage, including significant premium and deductible cost increases, reductions in the scope and quality of coverage. And California has experienced some of the highest insurance premium hikes in the United States with increases as high as 500%. The senator wanted to note in her district the Little Tokyo Service Center a community development nonprofit had insurance premiums rise by over 300 The severe insurance crisis is significantly increasing costs for affordable housing developers by limiting their ability to build new affordable housing and preserve existing units. Given these insurance challenges, many providers have expressed interest in alternative risk financing options to increase the availability and affordability of insurance coverage. However, several affordable housing nonprofits lack the technical expertise necessary to evaluate, establish, or participate in these models. The bill will address these challenges by having the state provide technical assistance to affordable housing developers so they can pursue risk mitigation strategies and alternative risk financing options. Housing providers need affordable insurance options, so California can continue to work towards our housing goals of creating affordable housing. Affordable insurance to create affordable housing. SB 1388 will reduce the barriers for the production and preservation of essential affordable housing and help us reach our goals. And at the appropriate time, I respectfully ask for an aye vote. Thank you.
And do we have a witness today? A witness in support? Are you a –
Just a quick support. Here on behalf of Enterprise Community – Graciela Castillo-Krings here on behalf of Enterprise Community Partners and Housing California, strong supporters and co-sponsors of the bill.
All right. Other support?
Clifton Wilson on behalf of the Burbank Housing Development Corporation, also in support. Thank you.
Thank you. Do we have any opposition out in the room? If not, I'll bring it back to the dais. I don't have any questions. You may close.
Respectfully ask for your aye vote at the appropriate time.
Absolutely. So we are waiting for a quorum to be established, and once it's established, we will be voting on the two bills that we have already heard. And so at this time, we're going to be going into recess. All right. And we have established a quorum, so I'd like to ask the committee assistant to please call the roll.
Senators, Erigine.
Here.
Erigine here, Ciarato.
Here.
Ciarato here, Cabaldon.
Here.
Cabaldon here, Caballero. Cortese.
Here.
Cortese here, Durazo. Gonzalez.
Gonzalez here, Grayson.
Otro Bogue.
Here.
Otro Bogue here, Padilla.
Okay. Thank you, colleagues. We did hear the two bills, so I will entertain a motion first on SB 1388 Durazo. Is there a motion?
Moved by Senator Gonzalez.
Thank you. If we can please call the motion is that the Assembly amendments be concurred.
Senators Ergin.
Aye.
Ergin, aye. Ciaro.
No.
Ciaro, no. Cabaldon.
Aye.
Cabaldon, aye. Caballero. Cortese.
Aye.
Cortese, aye. Durazo. Gonzalez.
Aye.
Gonzalez, aye. Grayson. Ochoa Bogue.
No.
Ochoa Bogue, no. Padilla.
We'll keep that bill on call. And lastly, filing M2, SB 457 Becker. I'll entertain a motion on that bill. Moved by Senator Cabaldon. Thank you. If you can please call the roll.
Motion that the assembly amendments be concurred in. Senators Errigin? Aye. Errigin, aye. Ciaro? No. Ciaro, no. Cabaldon? Aye. Cabaldon, aye. Caballero? Cortese? Aye. Cortese, aye. Durazo? Gonzalez? Aye. Gonzalez, aye. Grayson? Otroboog? No. Otroboog, no. Badia?
Okay, we'll keep that bill on call as well, and thank you to my colleagues. We'll wait. We'll recess the committee and wait for other members to join to add on. Thank you. We will go through the roll for Senator Caballero starting with file item 1 SB 1388 Durazo Senators Caballero Aye Caballero aye We keep that bill on call Thank you. And lastly, file item 2, SB 457, Becker.
Senators Caballero?
Aye.
Caballero, aye.
We'll keep that bill on call as well. Thank you.
I'm assuming they were all I-bills and you, Chair Reco, I.
Yeah.
Pretty straightforward.
I knew that.
There's one that's not on our agenda.
as we discussed yesterday.
Yeah.
We'll see you then. We'll open the role for Senator Padilla.
If we could start first with file item 1, SB 1388 by Senator Rosso.
Senator Spadia?
Aye.
Spadia, aye.
We'll keep that bill on call. Thank you. And file item 2, SB 457 by Becker.
Senator Spadia?
Aye.
Spadia, aye.
And we'll keep that bill on call as well. And we'll wait for other members to add on. Thank you very much, Mr. Chairman. Thank you. And so we will open the roll now for Senator DeRazzo, starting first with her bill, SB 1388.
Senators DeRazzo?
Aye.
DeRazzo, aye.
Okay. We'll keep that bill on call. And lastly, file item 2, SB 457 by Senator Becker.
Senators DeRazzo?
Aye.
DeRazzo, aye.
Okay. The motion was assembly amendments be concurred in. And so thank you, Senator Russell. We are done. And we will recess the committee and wait for Senator Grayson. Thank you. Thank you, Mr. Chair. We're going to reconvene the Senate Housing Committee hearing. All good. Okay, we're going to open the roll for Senator Grayson, and we'll start first on file item
1, SB 1388 by Senator DeRosso.
The motion is that the Assembly amendments be concurred in.
Grayson? Aye. Grayson, aye. Okay, that motion passes on a vote of 8-2. And now filing to SB 457,
Becker, the motion is that the Assembly amendments be concurred in. Senator Grayson? Aye. Grayson, aye.
And that motion passes on a vote of 8-2 as well. Thank you, Senator. With that,
the Senate Committee on Housing is now adjourned.