California Expands Affordable Homeownership Incentives

California enacted a new housing law on September 29, 2026, aimed at creating more affordable homes and speeding approvals for qualifying developments statewide.
The measure updated California's most-used housing incentive program, a bonus law that streamlined approvals by granting benefits to projects with affordable homes.
Reforms added incentives for deed-restricted for-sale homes and allowed deeper affordability targets, broadening access for low- and moderate-income California families and fully affordable builders.
Supporters said the changes could expand mixed-income and fully affordable developments while helping working families, employers, and local communities respond to California's housing shortage.
Approval changes made benefits automatic, reaffirmed non-discretionary review, and clarified that qualifying California projects gained development certainty after an initial application was filed.