On March 26, 2025, the California State Assembly's Housing and Community Development Committee convened to address pressing issues surrounding affordable housing and homelessness in the state. The discussions highlighted the challenges faced by low-income renters and the need for legislative action to protect existing affordable housing.

A significant focus of the meeting was the impact of private equity firms and corporate investors on naturally occurring affordable housing (NOAH). Many low-income renters reside in older multifamily buildings that remain affordable without government subsidies. However, these properties are increasingly targeted by investors, leading to rising rents and the displacement of long-term tenants. The committee emphasized that the loss of these homes exacerbates California's housing crisis.

Assembly Bill 670 was a central topic of discussion, aiming to incentivize local governments to preserve NOAH. The bill would allow jurisdictions to count investments in preserving these properties toward their housing element and annual progress reports. This change is crucial as current laws primarily reward new housing construction, often at the expense of existing affordable units. The bill also seeks to enhance accountability by requiring local governments to report all housing demolitions and ensure compliance with replacement and relocation assistance requirements.

Testimonies from advocates underscored the importance of preserving NOAH as a means to prevent displacement and homelessness. Organizations like Enterprise Community Partners highlighted that nearly 60% of California's affordable homes are unsubsidized, with an alarming estimate of 220,000 such homes at risk of losing affordability in the near term. The acquisition and preservation of these units by nonprofit organizations have proven effective in maintaining affordable housing stock.

In addition to AB 670, the committee discussed the need for improved oversight of homeless shelters. Assembly Bill 750 aims to strengthen state enforcement and accountability regarding shelter conditions, as previous legislation revealed significant non-compliance among local jurisdictions. The bill proposes standardizing reporting requirements and empowering shelter residents to report issues, addressing the alarming lack of oversight that has persisted.

The committee's discussions reflect a growing recognition of the need for comprehensive strategies to address California's housing and homelessness crises. As the state grapples with these challenges, the proposed legislation represents a critical step toward preserving affordable housing and ensuring accountability in shelter operations. The committee's actions signal a commitment to addressing the needs of vulnerable populations and fostering a more equitable housing landscape in California.