A California Assembly budget subcommittee hearing on April 14 advanced a proposal to reorganize the state’s housing-finance structure, but lawmakers left key implementation questions unresolved and held the item open for a follow-up hearing in mid-May.
According to the hearing transcript, the proposal would create or expand the Housing Development and Finance Committee, or HDFC, and move staff and General Fund resources from the Department of Housing and Community Development to HDFC on a net-zero basis, with operational planning also involving the Department of Consumer Affairs. The Assembly hearing transcript also says officials described draft HDFC guidelines as expected this summer, followed by two rounds of public comment, adoption in early 2027 and first awards in 2027.
Public commenters broadly supported the reorganization, but several raised concerns about timing and program control. Mercy Housing California’s Becky Flores asked for an Aug. 1 reallocation date instead of Nov. 1 and said the 9% tax-credit program should stay under T-CAC for now, according to the transcript. Jenna Abbott of the California Council for Affordable Housing backed reserving 90% of bond capacity for affordable housing, but said a proposal to allocate no less than 50% of the state bond cap to HDFC would be a significant change.
The transcript does not show a final vote or amendment text, and it is unclear whether any budget line items were formally adopted or rejected at the hearing. The record does show the chair held the item open and said the committee would take it up again in mid-May.
