Newsom Signs Housing Bill as Federal Housing Act Becomes Law

California Governor Gavin Newsom signed Assembly Bill 179 on July 13, 2026, during a visit to the Clara E. Chan Lee Residences construction site in Oakland's Chinatown. The budget trailer bill aims to accelerate affordable housing production by reducing administrative red tape and limiting local development impact fees, which Newsom described as "outrageous." The legislation allocates $500 million for state low-income housing tax credits and is projected to lower the cost of building affordable units by $60,000 to $70,000 each. Additionally, the law provides $900 million in grants to combat homelessness for the 2026-2027 fiscal year and establishes a $100 million disaster rebuilding fund.

Newsom aligned the state's strategy with the simultaneous enactment of the federal 21st Century Road to Housing Act (H.R. 6644). The federal law seeks to increase housing supply and lower costs by providing grants to local governments and streamlining environmental reviews. It specifically restricts corporations owning more than 350 single-family homes from further purchases, creates a pilot program for small-dollar mortgages under $100,000, and establishes a national renter resource center to manage disputes with institutional landlords.

Supporters of both initiatives, including U.S. Congressman Mike Thompson and State Senator Jesse Arreguín, characterized the moves as critical steps in tackling the housing crisis. Newsom cited a 59% increase in housing construction and a 57% decrease in permit processing times as evidence that streamlining bureaucracy is working.