Affordable housing “preservation” refers to maintaining the long-term affordability of housing developments with expiring rental restrictions that keep rents affordable to low-income residents.
Maintaining the affordability of these developments ensures both that current tenants (including seniors and families with lower incomes) can afford to stay in their homes and that future tenants can find an affordable place to live.
Affordable Housing Preservation Laws
To address the risk of converting at-risk units to market-rate, the state began to adopt the Affordable Housing Preservation Laws starting in 1987. In 2017, Affordable Housing Preservation Laws were expanded and enhanced, giving HCD enforcement authority to monitor compliance and ensure the law prioritizes the sale of affordable housing developments to entities that will maintain their long-term affordability.
To learn more, visit the Guide to Affordable Housing Preservation Laws below. The full text of the Affordable Housing Preservation Laws is covered in Government Code sections 65863.10, 65863.11, and 65863.13.
Guide to Affordable Housing Preservation Laws
HCD developed the Guide to Affordable Housing Preservation Laws to explain how these laws work to preserve affordable homes in California. The Guide covers the various protections that promote transparency and accountability as well as incentivize long-term affordability. The Guide explains HCD’s role in holding owners and operators accountable and the consequences for non-compliance. Also included is information related to:
- Tenant and government partner notifications of expiring affordability
- Registering as a Qualified Entity interested in bidding on affordable properties
- The process for sales of affordable homes, and the priority for maintaining affordability
- The consequences for not complying with affordable housing preservation laws
Note: HCD will soon publish a revised Guide that incorporates AB 2926 amendments that took effect on January 1, 2025.
Notice of Opportunity to Submit an Offer to Purchase
A cornerstone of the state’s policy is preferential treatment for entities that are interested in buying an at-risk property to keep it affordable. Owners of specified, multifamily housing developments with rental restrictions must provide a Notice of Opportunity to Submit an Offer to Purchase (NOSOP) to Qualified Entities (QE) prior to or concurrent with the 12-month notice or anytime the owner is contemplating selling an assisted property within five years of the affordability ending. The NOSOP gives QEs a 270-day period to submit an offer to purchase the assisted housing development to keep it affordable.
Certain types of stakeholders may become a QE through HCD’s self-certification process. Select the button below for more information on submitting a NOSOP or becoming a QE.
Notices of Intent
Owners of specified, multifamily government assisted housing developments are required, unless exempted, to provide “notices of intent” when they plan to prepay a federally insured or held mortgage, terminate rent subsidies, or terminate rent restrictions. These notices need to be sent three years, twelve months, and six months prior to the action taking place, and must go to all affected tenants, HCD, local public entities, and prospective tenants (Gov. Code, § 65863.10, subd. (b), (c), and (e)). All notices must be provided on HCD’s approved forms that can be accessed in the links below (Gov. Code, § 65863.10, subd. (k)).
Owners of multifamily housing developments that receive government assistance under programs defined in Government Code section 65863.10, subdivision (a)(3) are also required to register their properties and complete an annual owner certification using the California Housing Preservation Portal (CaHPP).
Transparency
HCD makes enforcement letters, actions, and a list of notices received available to the public. The report of all letters issued is organized by jurisdiction, date, and letter type.
To request technical assistance or report violations of affordable housing preservation laws, please submit your inquiry to Preservation@hcd.ca.gov.
The report of all notices received is organized by date received, project name, property information, and notice type. HCD makes no representation of the accuracy or compliance with statutory notice provisions.
Other External Resources
- Affordable Housing Map (California Housing Partnership)
- Preservation technical assistance (California Housing Partnership)
- Preservation strategies (California Housing Partnership)
- California Housing Partnership's database of at-risk affordable developments.