CA AB2734

Establishes the Local Control Affordable Housing Act requiring the Department of Finance to annually determine General Fund savings from the dissolution of redevelopment agencies and allocate 50% of those savings or $1 billion, whichever is less, to affordable housing programs.

Requires the Department of Housing and Community Development to retain one-half of allocated funds for state-level programs and distribute the other one-half to local agencies using an equitable, geographically balanced funding formula that considers poverty rates and affordable housing supply gaps.

Restricts local agency use of funds to affordable housing development, acquisition, rehabilitation, permanent supportive housing, home modifications for accessibility, foreclosed home reuse, infill infrastructure, and rapid rehousing of homeless individuals and families.

Mandates at least 25% of expenditures support extremely low-income housing and at least 50% support very low-income housing, with affordability covenants lasting a minimum of 55 years for rentals and 45 years for owner-occupied units.

Limits administrative costs to 5% of funds received and requires local agencies to return any unexpended funds after five years to the Department of Housing and Community Development for reallocation to other qualifying agencies.