California Law Expanded Regional Housing Trust Funding
New legislation allows moderate-income earners in the South Bay access to more affordable apartment options.
Updated on Oct. 7, 2026 in Apartments
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Governor Gavin Newsom has signed Senate Bill 799 into law, allowing the South Bay Regional Housing Trust to finance housing for moderate-income households. This change expands the group's scope beyond its previous focus on homeless and low-income residents.
Why it matters
The bill addresses a critical gap for essential workers who earn between 80% and 120% of the area median income but remain priced out of market-rate apartments. By expanding eligibility, the trust aims to help keep moderate-income households in the communities where they work.
The legislation supports households earning 80% to 120% of the area median income. The trust manages $7.9 million in annual funds and previously provided a $6 million loan toward the $75 million development of the 90-unit Cordary Avenue Apartments.
The players
Gavin Newsom
The Governor of California who signed the legislation into law.
South Bay Regional Housing Trust
A joint powers authority focused on funding housing projects across the South Bay region of Los Angeles County.
The details
The South Bay Regional Housing Trust operates as a joint powers authority involving Los Angeles County and cities within the South Bay Cities Council of Governments. The new law enables the trust to leverage both public and private capital to finance the construction of new units and the preservation of existing affordable housing stock. By broadening the trust's mandate, the legislation provides a mechanism to support workers who exceed low-income thresholds but still require housing assistance.
Timeline
April 2026: The South Bay Regional Housing Trust was established.
May 2026: The trust approved a $6 million loan for its first housing project.
October 7, 2026: Governor Newsom signed Senate Bill 799 into law.
The Home Front
This legislation marks the first major policy expansion for the South Bay Regional Housing Trust since its 2026 formation. The move reflects a broader trend of local joint powers authorities shifting focus to include the 'missing middle' of essential workers in their affordability efforts.
If you are a moderate-income worker in the South Bay, keep an eye on upcoming development projects funded by the regional trust to see if you qualify for new units. Reach out to your local city housing office to determine if your household meets the current area median income requirements for these programs.
The takeaway
This policy change helps close the housing gap for moderate-income families by allowing regional trusts to allocate resources more flexibly. Residents should monitor local housing authority announcements to stay informed about potential rent-restricted developments in their area.
Further reading
Learn more about local rental market initiatives in the Apartments section.
Source note: This article includes information reported by My News LA.
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