California Law Expanded Housing Funding Options
New legislation enables South Bay residents earning moderate incomes to access subsidized housing support.
Updated on Oct. 7, 2026 in Apartments
Live Poll
Should local government expand its authority to finance housing for middle-income workers in your community?
Governor Gavin Newsom signed Senate Bill 799, which allows the South Bay Regional Housing Trust to finance developments for households earning between 80% and 120% of the area median income. This change expands the group of eligible residents beyond those previously limited to low-income or homeless populations.
Why it matters
The bill addresses a persistent affordability gap for essential workers who earn too much to qualify for traditional low-income subsidies but remain unable to afford market-rate rents in their communities. By broadening the trust's mandate, the legislation aims to preserve existing affordable units and encourage new development for the middle-income workforce.
Moderate-income households represent those earning 80% to 120% of the area median income. This legislation follows the trust's recent $6 million loan for the 90-unit Cordary Avenue Apartments, a development with a total cost of $75 million.
The players
Gavin Newsom
The current Governor of the United States who signed Senate Bill 799.
South Bay Regional Housing Trust
A joint powers authority that manages housing development loans and funding for the South Bay region.
South Bay Cities Council of Governments
A collaborative agency representing cities in the South Bay that participates in the regional housing trust.
The details
The South Bay Regional Housing Trust operates as a joint powers authority representing Los Angeles County and cities within the South Bay Cities Council of Governments. Senate Bill 799 provides this entity the authority to tap into both public and private capital to finance housing development and preservation for moderate-income earners. The legislation does not, however, allocate or require the use of state funds for specific projects, leaving capital sourcing to the trust's existing framework.
Timeline
April 2026: The South Bay Regional Housing Trust was created.
May 2026: The trust approved its first loan for the Cordary Avenue Apartments.
October 7, 2026: Governor Gavin Newsom signed Senate Bill 799 into law.
Money Landscape
This policy change reflects a shift in regional housing strategy toward the moderate-income gap in California. It builds upon the existing framework of the South Bay Regional Housing Trust to address affordability challenges for workers who fall outside traditional low-income assistance programs.
Households earning between 80% and 120% of the area median income may find new opportunities for stable housing costs as the trust begins to finance middle-income units. Renters should monitor local housing project announcements to see if these expanded authorities translate into new affordable developments in their specific cities.
The takeaway
The signing of Senate Bill 799 marks a formal broadening of state-enabled housing assistance for the region's moderate-income workforce. Residents should track upcoming announcements from the South Bay Regional Housing Trust regarding new project approvals or housing preservation programs.
Further reading
For additional context on the local rental market, see our guide on Apartments.
Source note: This article includes information reported by My News LA.
Live Poll
Should local government expand its authority to finance housing for middle-income workers in your community?
