Lawmakers review AB 519 outcomes as state agencies map single application for affordable housing

Chair Assemblymember Haney opened an outcomes-review hearing on AB 519 and invited state housing agency leaders to report on implementation progress.

Gustavo Velasquez, director of the Department of Housing and Community Development (HCD), said AB 519 required a working group across HCD, the California Housing Finance Agency (CalHFA), the California Tax Credit Allocation Committee (TCAC) and the California Debt Limit Allocation Committee (CDLAC) to recommend a consolidated application and coordinated review process. Velasquez said the working group included more than 50 active members from nonprofit and for‑profit developers, local and tribal governments, lenders and industry partners and produced a report with an implementation timeline to align application cycles, scoring and program requirements.

"The goal is clear: a unified application and coordinated review process that reduces the cost of affordable housing, expedites application and funding, and results in more units built faster," Velasquez said.

Assemblymember Schiavo, the bill's author, praised tribal and developer engagement and asked for clarification about how the two application paths will operate in practice and how deadlines and cycles will be aligned. Agency witnesses said the system will preserve a path for projects that do not seek additional state subsidies while creating a separate HDFC pathway for projects that do need state support.

Developers on the third panel broadly supported consolidation but warned that streamlining the application alone will not fix persistent post‑award barriers, such as loan closings, construction lending and long‑term asset management. Several witnesses and public commenters urged that whichever application model is adopted must be matched by predictable funding and by processes that help, not hinder, project delivery.

The committee heard that the initial HDFC‑administered funding release is targeted for early 2027, with the regulatory and public‑comment schedule intended to be completed before that round. Members said they will continue oversight as the regulations are drafted and the first NOFA is prepared.