CA AB2256

Authorizes two adjacent cities to enter into a memorandum of understanding to build affordable housing in one jurisdiction and share credit toward regional housing needs allocation requirements.

Requires the city without the housing project to face prohibitive obstacles to affordable housing development (including high property values, lack of suitable land, or fire severity zone restrictions) and own land in the second city where the project will be developed.

Mandates the memorandum of understanding include affordable housing for low-income and very low-income households, adequate financing from the city not hosting the project, and an explicit agreement on credit distribution for regional housing needs purposes.

Makes the memorandum of understanding valid only upon approval by the Department of Housing and Community Development.