Newsom Signs AB 179 to Cut Affordable Housing Costs by $60,000 per Unit
Updated
Updated · KGO-TV · Jul 13
Newsom Signs AB 179 to Cut Affordable Housing Costs by $60,000 per Unit
3 articles · Updated · KGO-TV · Jul 13
Summary
AB 179 creates a one-stop state financing application for affordable housing and pushes money faster to projects ready to build, Newsom said after signing the bill in Oakland.
Development impact fees are another target: backers say the law encourages cities to reduce them, potentially lowering costs by about $60,000 to $70,000 per unit.
The measure passed with broad bipartisan support, drawing just 18 no votes across both chambers, as supporters prioritize affordable rental housing and faster project delivery.
Newsom cast the law as part of a wider push to ease building barriers, citing a 59% rise in housing construction and a 57% drop in permit times in California.
California remains among the most expensive states to build and buy homes, so supporters say financing reform alone will not solve the housing crisis but could speed more projects.
California wants to build more homes faster. Can local communities afford the cost of streamlined development?
With a slowing economy and no new state funds, can California’s new housing agency truly accelerate construction?
As cities like Austin see rents fall after deregulation, is California’s new law the key to solving its housing crisis?
Transforming California Housing: AB 179’s $900 Million Funding, Streamlined Development, and New Accountability Measures in 2026
Overview
On July 13, 2026, Governor Newsom signed Assembly Bill 179 into law, launching immediate reforms to address California’s severe housing shortages and rising homelessness. The bill aims to reshape affordable housing financing, streamline the development process, and make it much easier to build new homes. By accelerating the distribution of funds and reducing bureaucratic barriers, AB 179 seeks to boost the supply of affordable housing across the state. These changes reflect California’s urgent need for housing reform and mark a significant step toward making homes more accessible and affordable for residents.