South Bay Housing Trust to Expand Funding in 2027
A new state law allows regional trusts to finance more housing options for moderate-income families starting January 1.
Updated on Oct. 21, 2026 in Apartments
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California Governor Gavin Newsom has signed SB 799 into law, which expands the South Bay Regional Housing Trust to support moderate-income housing. This change takes effect on January 1, 2027, allowing the trust to broaden its development efforts.
Why it matters
As moderate-income workers face increasing difficulty finding housing in the areas where they work, this legislation aims to bolster regional development resources. The trust enables 11 member cities to pool funding and coordinate on construction projects to address local inventory shortages.
The trust manages $7.9 million in annual funding via Measure A, supporting projects like the $6 million loan for Cordary Avenue Apartments. This expansion integrates 11 cities into a unified effort to address housing needs starting January 1, 2027.
The players
Gavin Newsom
The Governor of California who signed SB 799 into law.
South Bay Regional Housing Trust
A joint powers authority managing regional housing funds for 11 member cities.
The details
The South Bay Regional Housing Trust operates as a joint powers authority, allowing participating cities to pool resources for residential development. By expanding the trust's scope to include moderate-income households, local authorities can provide financing for projects that might otherwise struggle to move forward. This structure centralizes the management of annual funding to ensure development efforts reach workers who are currently priced out of their local communities.
Timeline
2022: Legislation first established the housing trust.
2026: Eleven cities formally launched the regional trust.
May 2026: The trust board approved a $6 million loan for the Cordary Avenue Apartments.
January 1, 2027: The law expanding the trust authority takes effect.
The Home Front
This legislation marks a strategic evolution in how Measure A funds are deployed across California's regional housing markets. It shifts the focus of local development authorities toward a broader segment of the workforce to combat systemic affordability challenges.
Renters and prospective buyers in the South Bay should track new developments funded by the trust, as these projects are designed to increase local inventory. Monitor city council updates regarding new apartment construction in Hawthorne and the other 10 participating municipalities.
The takeaway
The expansion of the regional housing trust represents a shift toward more inclusive development planning for moderate-income families. Residents should keep an eye on upcoming housing board meetings to see how these newly available funds are allocated for construction in their specific city.
Further reading
Learn more about local rental market developments in California Apartments.
Source note: This article includes information reported by Santa Monica Daily Press.
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