Assemblymember Chris Holden Introduces Community Affordable Housing Bill

Pasadena Assemblymember Chris Holden introduced AB 323, The Owner Occupant Preference Bill, which would protect homeownership pathways for low-income families.

“Displacement in our communities has become more and more frequent,” said Assemblymember Chris Holden. “I believe that with this bill, more people from our communities will be able to raise generations of their families in the communities they love and grew up in.”

While California has established opportunities for low-income families to realize their dream of homeownership, some investors have developed an end-around that increases their holdings rather enhancing the community. Investors have found a loophole that allows them to change income restricted owner-occupancy units to rental ownership instead.

Two density bonus projects located in Encinitas, California in 2021 contained single-family detached homes designated in their subdivision map for sale to very-low-income families making below 60% of the area median income. Instead of selling the homes to qualified families who submitted offers to purchase the homes, the developer ignored their offers, and petitioned the city to change the unit’s owner occupancy designation and sold the units to corporate investors. 

AB 323 would prohibit developers from submitting a petition to change the deed or unit designation for a density bonus unit or local inclusionary zone developed unit unless the developer can prove that none of the applicants can qualify for the unit as owner an occupant.

“This bill will close a loophole that has disenfranchised low-income families and further ensure our affordable housing laws are used as intended,” said Holden.