Senate committee advances bill to expand HCD’s portfolio reinvestment program to preserve at‑risk affordable housing

Assemblymember Wicks presented AB 7 50 to expand eligibility for HCD’s Portfolio Reinvestment Program (PRP), arguing the program helps preserve deed‑restricted affordable housing that otherwise lacks access to financing for rehabilitation. "Expanding access while prioritizing at‑risk HCD projects will reduce the risk of losing affordable housing to disrepair and foreclosure," she said.

Marina Espinosa of the California Housing Consortium and Tyesha Watts of the California Housing Partnership outlined PRP’s earlier results and the need for more resources: initial PRP funding of $200 million helped rehabilitate roughly 2,000 homes in its first rounds, and sponsors noted a proposed veterans and housing bond would provide an additional $750 million targeted to PRP to scale preservation efforts.

Committee members asked about program mechanics — how PRP funding is used, whether owners are required to maintain affordability covenants after receiving funds, and how the program prevents owners from allowing properties to deteriorate and then profiting from market conversion. Witnesses explained PRP awards require needs assessments and obligate recipients to perform required repairs and to maintain affordability as a condition of continued eligibility.

The committee advanced the bill to appropriations after discussion. Sponsors and housing partners said the combination of expanded program eligibility and forthcoming bond funds would substantially increase the number of rehabilitated and preserved affordable homes across the state.

What’s next: AB 7 50 goes to the appropriations committee for fiscal review; supporters said they will monitor bond timing and program implementation details.