Sacramento Update - June 2026
2026-27 May Budget Revision Overview
The Governor released his May Revision reflecting the impact of the April 15th tax receipts on the state budget. The Governor's May Revision reflects a significantly improved fiscal outlook compared to January. Higher-than-expected revenues and budget adjustments have largely eliminated the projected operating deficit for 2026-27 while maintaining substantial reserve levels. The Administration reduced General Fund spending by approximately $1.8 billion through a combination of delays, funding shifts, and targeted reductions rather than broad program eliminations.
Housing remains a major Administration priority. The May Revision largely preserves existing affordable housing and homelessness programs while emphasizing housing production, accountability, streamlining, and local implementation.
The Administration continues to support efforts to accelerate housing construction and address affordability challenges, although no major new housing spending initiatives were proposed.
SCRHA Supported Legislation - Active Bills
AB 311 (McKinnor) – Persons at Risk of Homelessness
Status: Senate Judiciary Committee
Allows tenants, with landlord approval, to temporarily house individuals at risk of homelessness, including those displaced by disasters.
AB 748 (Harabedian) – Preapproved Housing Plans
Status: Awaiting Senate Committee Assignment
Requires local governments to establish preapproved single-family and multifamily housing plan programs to accelerate housing production.
AB 1559 (Calderon) – Residential Property Insurance Images
Status: Senate Insurance Committee
Requires insurers to notify homeowners when aerial imagery is used for underwriting purposes and provide those images upon request.
AB 1842 (Harabedian) - California Emergency Mortgage Relief Act.
Status: Status: Awaiting Senate Committee Assignment
This bill would require a mortgage servicer to offer mortgage payment forbearance of a period of up to an initial 180 days, to be extended at the request of the borrower in 90-day increments, up to a maximum forbearance period of 12 months during a state or federally declared emergency.
AB 2124 (Pacheco) – Utility Ratepayer Impact Review
Status: Awaiting Senate Committee Assignment
Requires independent review of legislation that imposes utility mandates or otherwise affects ratepayers.
SB 1014 (Grayson) - preliminary estimate of required improvements: onsite and offsite improvements.
Status: Assembly Local Government
This bill allows development proponents to request and receive additional information on offsite and onsite improvements at the preliminary application phase, and when processing post-entitlement permits (PEPP).
Support Bills No Longer Moving
AB 1620 (Sanchez) – Homeowners' Insurance Premium Deduction
Status: Held on Assembly Appropriations Suspense File
Would have created a state income tax deduction for homeowners' insurance premiums. The bill is effectively dead for the year.
SCRHA Opposed Legislation - Active Bills
AB 2350 - (McKinnor) - residential real property rental payments.
Status: Status: Awaiting Senate Committee Assignment
Provides requirements for licensees under the California Financing Law (CFL) when providing a loan agreement to advance rent payments for residential real property under a split loan agreement
SB 1296 (Durazo) – Rental Housing Pet Policies – Oppose unless amended.
Status: Assembly Judiciary
SCRHA is opposed unless amended. The bill requires landlords that allow pets to publicly disclose detailed pet policies, including fees, restrictions, and other requirements. SCRHA's concerns focus on operational and compliance burdens and the need for clarifying amendments. Forthcoming amendments are expected to address our concerns.
Oppose Bills No Longer Moving #DEAD
AB 1611 (Haney) – Would have eliminated like-kind exchange tax treatment for owners with 50 or more single-family rental properties. SCRHA opposed the measure due to concerns regarding impacts on housing investment and housing supply.
SB 1155 (Smallwood-Cuevas) – Would have prohibited a landlord from evicting for nonpayment of rent or non-rent fees, or charging or collecting late fees to, a tenant who is employed by the federal government and whose income is materially affected by a government shutdown for the duration of, and 30 days following, a government shutdown.
SB 1243 (Durazo) – Sought to provide a tenant with a defense against evictions for nonpayment of rent when the tenant’s income has been impacted by immigration enforcement activities. The provisions of the bill would be repealed on January 1, 2030.
Housing and Homelessness Legislative Trends
Several themes continue to dominate housing policy discussions in 2026:
- Accelerating housing production through permitting reform and project streamlining.
- Expanding affordable housing financing opportunities.
- Increasing accountability for local housing production goals.
- Addressing homelessness through continued funding and service coordination.
- Responding to rising insurance costs and housing affordability pressures.
- Balancing tenant protections with the operational realities facing housing providers.
Key Takeaways
- The May Revision substantially improved the state's fiscal outlook while preserving major housing and homelessness programs.
- Housing production and affordability remain among the Legislature's highest priorities.
- SCRHA continues to support measures that increase housing production, improve homelessness programs, and address insurance affordability concerns.
- SCRHA remains actively engaged on several measures affecting rental housing operations, property owners, and housing development.