CalRHA Public Policy Update - January 2025

Budget Update

Sacramento is back in full swing. Governor Newsom released his proposed 2025-26 budget on January 10th, which was presented by the Department of Finance Director, Joe Stephenshaw, given the Governor’s attention on the fire emergencies in Southern California. The summary and detail may be found at https://ebudget.ca.gov/.

The Governor is proposing a balanced budget of $322 billion, which is the second-largest spending plan ever. We are facing a surplus of $363 million, with almost $17 billion more in revenue than expected. Part of his proposal is the creation of a new Housing and Homelessness Agency. Other highlights of the budget include:

• Housing

  • Does not include new funding for housing and does not propose funding for the Low Income Housing Tax Credit.

  • Proposes to establish a new California Housing and Homelessness Agency, which will be released in the spring through a Reorganization Plan submitted to the Little Hoover Commission.

  • Puts forth housing policy principles that would reduce costs, enhance accountability, and coordinate housing and transportation.

• Homelessness

  • Includes $100 million for Encampment Resolution Fund grants.

  • States that any future homelessness funding for local governments will include stronger accountability policies.

  • Provides that the Administration will increase accountability efforts around the implementation of the HHAPP Fund.

• California Consumer Protection Agency

  • The Governor’s Budget Summary notes the recent creation of the California Consumer Protection Agency, with additional details to be provided in the spring via a plan submitted to the Little Hoover Commission.

Legislative Update

The Senate has announced Committee assignments, which may be found at https://sd02.senate.ca.gov/news/senate-leader-mcguire-announces-leadership-team-committee-membership-2025-26-legislative.

Of note, Senator Aisha Wahab (D-Hayward) is the new Chair of the Senate Housing Committee. Senator Tom Umberg (D-Anaheim) retained his chairmanship of the Senate Judiciary Committee.

Full committee make-up is expected imminently. Of note, Assemblymember Matt Haney (D-San Francisco) is the new Chair of the Assembly Housing Committee and Assemblymember Ash Kalra (D-San Jose) has retained his chairmanship of the Assembly Judiciary Committee.

A few key legislative bills have been introduced so far, including:

• AB 11 (Lee) – Social Housing
• AB 21 (DeMaio) – Taxpayer Protection Act of 2025
• SB 9 (Arreguin) – ADU Owner-Occupancy Requirement
• SB 52 (Perez) – Housing Rental Rates and Algorithmic Devices

The Legislative calendar for the year is as follows:

• January 24th – Deadline to submit bill request to Legislative Counsel
• February 21st – Last day for bills to be introduced
• April 11-18 – Spring Recess
• May 2nd – Policy Committee Deadline for Fiscal Bills
• May 9th – Policy Committee Deadline for Nonfiscal Bills
• May 23rd – Appropriations Committee Deadline
• June 6th – Deadline for bills to pass the Floor in their House of Origin
• June 15th – Deadline to Pass Budget Bill
• July 18th – Policy Committee Deadline in Second House
• July 18th - August 15th – Summer Recess
• August 29th – Appropriations Committee Deadline in Second House
• September 12th – Recess Begins
• October 12th – Last Day for the Governor to Sign or Veto Legislation