Gov. Gavin Newsom has signed legislation expanding the South Bay Regional Housing Trust's authority to finance housing for moderate-income workers, giving the young regional agency new tools just months after it committed its first loan to a 93-unit affordable complex in Hawthorne. The trust was previously authorized to fund housing only for homeless people and extremely low-, very low- and low-income residents.
Senate Bill 799, authored by state Sen. Ben Allen, expands eligibility to moderate-income families and allows the trust to tap private and public funding and capital resources, according to MyNewsLA.com. Moderate-income households are generally defined as those earning between 80% and 120% of area median income, and moderate-income workers often include teachers, first responders and health care professionals who face income levels too high for traditional low-income housing subsidies but insufficient to afford market-rate housing in their work communities, per the same report.
The bill also authorizes the trust to finance the preservation of existing affordable housing, not just new construction. According to CalMatters' Digital Democracy database, the measure expands the trust's authority to include funding the planning, construction and preservation of housing for persons and families of moderate income, while also broadening its existing low-income and homeless-serving mission to include preservation work. The bill was chaptered by the California secretary of state on September 30 as Chapter 980 of the Statutes of 2026, according to the same database.
Governance Changes Come With the Funding Expansion
SB 799 doesn't just widen who the trust can help — it also rewrites some of the rules for how the trust's board operates. The joint powers agreement must now establish the number of directors and the process for appointing them and filling vacancies, per CalMatters' Digital Democracy database. The bill also caps how often a non-elected alternate board member can vote, prohibiting any such alternate from casting votes in more than 75% of a calendar year's meetings, the same source notes.
Importantly, the legislation does not appropriate or obligate state money for any specific housing project, MyNewsLA.com reports. SB 799 amends 2022 legislation authored by Allen that first allowed Los Angeles County and South Bay Cities Council of Governments member cities to form a joint powers authority able to fund, plan and construct housing for homeless and low-income households — the law that created the trust itself in April, per the outlet.
“We’re extremely grateful to Senator Ben Allen for understanding and addressing our needs in the South Bay with SB799…” Debby Stegura said, as quoted by MyNewsLA.com. The trust now includes El Segundo, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Manhattan Beach, Rancho Palos Verdes, Rolling Hills Estates, Redondo Beach and Torrance, according to the outlet's reporting, though a separate account from South Bay Cities Council of Governments put the membership at eleven cities as of this past May.
The Trust's First Project: A Hawthorne Apartment Complex
Before SB 799 even reached the governor's desk, the trust had already put its lending power to work. The agency approved funding for its first affordable housing project in May, committing a $6 million loan for the Cordary Avenue Apartments in Hawthorne, per MyNewsLA.com. The South Bay Cities Council of Governments reports that the trust's board voted at its second meeting on May 21 to commit the loan, which represents 8% of the development cost, approved at a 3% interest rate with a 55-year term.
The project is proposed by Abode Communities, a nonprofit developer, at 14115 Cordary Avenue. Sources differ on the project's size: MyNewsLA.com describes it as a $75 million development with 90 affordable units, while the South Bay Cities Council of Governments describes a $75.9 million, 100% affordable development with 93 units, made up of 69 one-bedroom units and 24 two-bedroom units, one of which is reserved for an on-site manager. All proposed rental units would be income-restricted to households earning between 30% and 70% of the area's median income, according to the council of governments' account. Construction is anticipated to begin November 1, 2027, with completion targeted for September 1, 2029, the same source reports.
The $6 million loan marked the first allocation from Los Angeles County Affordable Housing Solutions Agency funds earmarked annually for the South Bay, which MyNewsLA.com reports at $7.9 million per year, funded through the Measure A-backed Production, Preservation and Ownership Program.
Why Moderate-Income Housing Has Become a Regional Priority
The trust's expansion comes amid broader attention to regional housing production.
For comparison, the San Gabriel Valley Regional Housing Trust, formed in 2020, has been generating more than $230,000 annually in interest and loan fee revenue, per the South Bay Cities Council of Governments.
