SB677 - Housing financing: joint powers agreements: bond approvals: subdivisions: tentative and final maps: appeals.

Amended IN Assembly August 20, 2026 Amended IN Assembly July 07, 2026 Amended IN Assembly June 24, 2026 Amended IN Assembly June 08, 2026 Amended IN Senate January 08, 2026 Amended IN Senate January 05, 2026 Amended IN Senate April 09, 2025 Amended IN Senate April 01, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 677 Introduced by Senator Wiener (Coauthor: Assembly Member Caloza) February 21, 2025 An act to amend Sections 6519, 66452.5, 66458, 66462, and 66474.7 of, and to add Sections 6505.7 6505.7, 6505.9, and 66452.8 to, and to repeal Section 6547.9 of, the Government Code, and to amend Section 52011.5 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 677, as amended, Wiener. Housing financing: joint powers agreements: bond approvals:subdivisions: approvals: subdivisions: tentative and final maps: appeals. Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law, for the purposes of that act, defines the term “public agency” to include various federal, state, local, and tribal entities. Existing law requires approval by the Department of General Services of certain joint powers agreements that include the state as a member, as provided. Existing law authorizes a joint powers authority to issue revenue bonds to pay the costs and expenses of acquiring, constructing, or conducting a program for, among other things, low-income housing projects owned or operated by a city, county, city and county, or housing authority. Existing law provides that the Treasurer and the Secretary of State are designated as elected representatives for federal tax purposes of a joint powers agency created to approve or certify the issuance of bonds, notes, or other evidence of indebtedness issued by or on behalf of the joint powers agency to the extent approval is required by federal tax law. This bill would provide that the geographic jurisdiction of a joint powers authority is the area encompassed by the combined geographical boundaries of all of its member public agencies. The bill would declare that these provisions are declaratory of existing law. This bill would, instead, provide that the Treasurer is designated as an applicable elected representative of a joint powers authority and may, at the discretion of the joint powers authority, approve the issuance of bonds, notes, or other evidence of indebtedness issued by or on behalf of the joint powers agency to the extent approval is required by federal tax law, as specified. The bill would additionally authorize the Treasurer to execute an agreement including the state as a member of a joint powers authority without obtaining approval from the Department of General Services and would authorize the Treasurer to provide any approval, consent, or other action related to the issuance of bonds, including, but not limited to, approvals required by federal tax law. only for the Treasurer to provide specified approvals for bonds issued by the joint powers authority to finance specified residential rental projects for which a city, county, or city and county that is a member of the joint powers authority has failed to provide specified approval required by federal tax law, as defined and provided. The bill would provide that its provisions do not expand, limit, or otherwise affect the authority of, among others, the state, or any officer or agency of the state, to enter into a joint exercise of powers agreement or cause the state to become a member of a joint powers authority, as specified. Existing law additionally authorizes, subject to specified limitations, any city or county to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation, refinancing, or development of multifamily rental housing and for the provision of capital improvements in connection with, and determined necessary to, that multifamily rental housing. This bill would specify that, for the purposes of the above-described provisions, “city,” “county,” and “city and county” are “city” or “county” is deemed to include the state when the state is a member of a joint powers authority, and would specify that the Treasurer provides the applicable approval, consent, or other action with respect to the issuance of bonds. authority pursuant to the bill’s provisions only to provide the state with the power to issue bonds and provide approval, consent, or other action required to finance specified residential rental projects, as provided. The bill would declare that its provisions are declaratory of existing law. Existing law provides that the State of California will not change the composition of a joint powers authority that has issued bonds, unless the change is authorized by a majority vote of applicable legislative bodies, as provided. Existing law defines “change in composition” to include, among others, the addition of a public agency, as defined, to a joint powers authority. This bill would, notwithstanding the above-described definition, provide that the state becoming a member of an existing joint powers authority shall not, in and of itself, constitute a “change in composition.” The bill would make additional nonsubstantive and conforming changes. Existing law, the Subdivision Map Act, provides for the approval of tentative and final parcel maps by various local officials, as specified. The act authorizes an appeal of the local official’s decision to the local legislative body, as provided. This bill would create an exception from the above-described authority as it applies to appeals by an interested person for maps that meet specified criteria, as provided. The bill would exempt from these provisions an appeal filed by an applicant, subdivider, tenant, advisory agency, or public agency or official, as specified. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would make the provisions of the act severable. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 6505.7 is added to the Government Code, to read: 6505.7. (a) For the purposes of Section 147(f) of the Internal Revenue Code, as amended, the Treasurer is designated as an applicable elected representative of a joint powers authority created pursuant to this chapter. In the discretion of the joint powers authority, the Treasurer is authorized to approve the issuance of bonds, notes, or other evidence of indebtedness, issued by or on behalf of that joint powers authority, to the extent this approval is required by federal tax law, including, but not limited to, providing issuer approval, host approval, or both, pursuant to Section 147(f) of the Internal Revenue Code and Section 1.147(f)-1 of Title 26 of the Code of Federal Regulations. (b) 6505.7. (a) The geographic jurisdiction of a joint powers authority created pursuant to this chapter is the area encompassed by the combined geographical boundaries of all of its member public agencies. (c) (1) Notwithstanding any other law or any other provision of this chapter, the Treasurer may, on behalf of the State of California, execute a joint exercise of powers agreement and cause the state to become a member of a joint powers authority formed pursuant to this chapter without approval otherwise required pursuant to Section 6501. The Treasurer may, on behalf of the state, provide any approval, consent, or other action required or permitted under that agreement if any approval, consent, or action shall be limited exclusively to financings consisting of the issuance of bonds, including, but not limited to, tax exempt private activity bonds and tax exempt obligations, the interest on which is excludable from gross income pursuant to Section 103 of the Internal Revenue Code, to finance qualified residential rental projects or other affordable multifamily rental housing, including tax exempt multifamily housing revenue bonds issued pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code. For the purposes of Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, including, but not limited to, Chapter 7 (commencing with Section 52075) of Part 5 of Division 31 of the Health and Safety Code, “city,” “county,” and “city and county” shall be deemed to include the state when the state is a member of a joint powers authority formed pursuant to this chapter, and the Treasurer, on behalf of the state, shall provide the applicable approval, consent, or other action with respect to the issuance of bonds. Any approval, consent, or other action by the Treasurer shall constitute the approval or other action of the city, county, or city and county required pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code. (2) This subdivision shall not limit any of the following: (A) The authority of the State of California or any officer or agency thereof to enter into a joint exercise of powers agreement or cause the state to become a member of a joint powers authority formed pursuant to this chapter under any other provision of law. (B) The authority of a joint powers authority of which the Treasurer or state is not a member to issue bonds or other obligations. (C) The authority of the Treasurer under subdivision (a) to approve or certify the issuance of bonds, notes, or other evidence of indebtedness, issued by or on behalf of a joint powers authority of which the Treasurer is not a member. (d) (b) This section is declaratory of existing law. SEC. 2. Section 6505.9 is added to the Government Code, to read: 6505.9. (a) For the purpose of this section, all of the following definitions shall apply: (1) “Eligible residential rental project” means a qualified residential rental project that meets both of the following conditions: (A) The qualified residential rental project has received an allocation from the California Debt Limit Allocation Committee from the state ceiling on qualified private activity bonds, or requires approval under Section 147(f) of the Internal Revenue Code in order to obtain such an allocation. (B) The city, county, or city and county where the qualified residential rental project is located is a member of a joint powers authority formed pursuant to this chapter that plans to issue the qualified private activity bonds for that qualified residential rental project and the city, county, or city and county has failed to provide the approval required by federal tax law, or has failed to provide any member consent or approval required under the joint exercise of powers agreement for that qualified residential rental project or for the issuance of those bonds, after a written request is sent by the joint powers authority or the borrower. Failure to provide the approval required by federal tax law, or to provide any member consent or approval required under the joint exercise of powers agreement for that qualified residential rental project or for the issuance of those bonds by the time approval required by federal tax law is provided by any one city, county, or city and county that is a member of the joint powers authority satisfies this subparagraph. (2) “Failure to provide the approval required by federal tax law” means either of the following: (A) If the city, county, or city and county has not published a qualifying document, “failure to provide the approval required by federal tax law” means failure to hold the relevant hearing and provide the required approval within 30 days after a written request is sent by the joint powers authority or the borrower. (B) If the city, county, or city and county has published a qualifying document, “failure to provide the approval required by federal tax law” means failure to hold the relevant hearing and provide the required approval within the time period established by the document after written request is sent by the joint powers authority or the borrower, including by electronic mail. (3) “Local agency member” means a city, county, or city and county that is a member of a joint powers authority formed pursuant to this chapter, provided that the joint powers authority plans to issue the qualified private activity bonds for an eligible residential rental project. (4) “Qualified residential rental project” has the meaning as defined in Section 142(d) of the Internal Revenue Code of 1986, as amended. (5) “Qualifying document” means a current document, published online by the city, county, or city and county, that establishes the standard process and timing the city, county, or city and county undergoes to hold a public hearing satisfying Section 147(f) of the Internal Revenue Code and Section 1.147(f)-1 of Title 26 of the Code of Federal Regulations and to adopt a resolution or take other formal action approving the bonds as required by federal tax law, provided that the process and timing so established do not exceed 90 days after written request is sent by the joint powers authority or the borrower, including by email. (6) “Written request” means a request that meets all of the following conditions: (A) The request is in writing and identifies the eligible residential rental project, its location, and the proposed plan of finance, and requests that the city, county, or city and county hold the hearing required by Section 147(f) of the Internal Revenue Code and Section 1.147(f)-1 of Title 26 of the Code of Federal Regulations and adopt a resolution or take other formal action approving the bonds as required by federal tax law, and requests that the city, county, or city and county provide any member consent or approval required under the joint exercise of powers agreement for the eligible residential rental project or for the issuance of the bonds. (B) The request is sent by the joint powers authority or the borrower to the clerk of the legislative body of the city, county, or city and county and, if a qualifying document published by the city, county, or city and county designates an official or office as responsible for receiving or processing requests of that type, to that official or office. (b) (1) For the purposes of Section 147(f) of the Internal Revenue Code, the Treasurer is designated as an applicable elected representative of the State of California. (2) (A) For the purposes of Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, including, but not limited to, Chapter 7 (commencing with Section 52075), “city” or [Text truncated for display. Full text available on Congress.gov.]