California Housing Trust Authority to Expand in 2027
New law will allow more funding for moderate-income apartments across 11 South Bay cities.
Updated on Oct. 21, 2026 in Apartments
Live Poll
Should local governments use public funds to subsidize housing for moderate-income workers in your area?
California Governor Gavin Newsom has signed SB 799 into law, allowing the South Bay Regional Housing Trust to finance developments for moderate-income households starting January 1, 2027. This expansion aims to assist local workers who face rising housing costs in the region.
Why it matters
As moderate-income workers find themselves increasingly priced out of the areas where they work, this legislation provides a new mechanism for local governments to pool resources and support more housing development. The change enables the trust to move beyond its previous scope to address specific local inventory gaps.
The South Bay Regional Housing Trust manages $7.9 million in annual funding across 11 cities. The trust recently approved a $6 million loan for a development project in Hawthorne.
The players
Gavin Newsom
The Governor of California who signs state legislation impacting housing and municipal finance.
South Bay Regional Housing Trust
A regional entity that manages local funds to finance the development of affordable and moderate-income housing.
The details
Participating cities leverage a joint powers authority to pool regional resources, which are supported by Measure A funding. By expanding the trust's authority to include moderate-income households, the law allows these cities to deploy capital more broadly to develop residential units. This mechanism helps lower the cost burden for workers who would otherwise struggle to find local housing options.
Timeline
2022: Initial legislation established the trust.
2026: Eleven South Bay cities launched the formal trust structure.
May 2026: The board approved a $6 million loan for the Cordary Avenue Apartments.
January 1, 2027: The new law expanding authority takes effect.
Money Landscape
This law follows the funding framework established by Measure A, which remains the cornerstone for South Bay housing initiatives. It marks a shift toward greater regional coordination in managing affordability challenges compared to traditional city-level planning.
Renters in the South Bay who earn moderate incomes may see more housing availability as new projects receive trust financing. Keep track of local housing developments in Hawthorne and surrounding cities for potential leasing opportunities starting in 2027.
The takeaway
This expansion provides a critical financing tool for South Bay communities to address the needs of moderate-income workers. Residents should watch for upcoming development announcements as the law takes effect in early 2027.
Further reading
For more on housing trends and local market inventory, visit California Apartments.
Source note: This article includes information reported by Santa Monica Daily Press.
Live Poll
Should local governments use public funds to subsidize housing for moderate-income workers in your area?
