CA AB1850

Prohibits public entities (cities, counties, joint powers authorities, or other political subdivisions) from acquiring unrestricted multifamily housing unless units are subject to a 55-year regulatory agreement requiring affordability for low- or moderate-income persons and families.

Requires aggregate monthly rents postconversion to be at least 10 percent less than average rents in the six months prior to conversion, and establishes detailed calculations for including vacant units and units receiving rehabilitation expenditures.

Mandates that at least one-third of units have initial rents not exceeding the lesser of rents affordable at 80 percent of area median income or HUD's small area fair market rent, distributed proportionally across unit sizes.

Requires public entities to monitor compliance annually, conduct physical inspections and income certifications at least once every three years, and publicly post all financial and monitoring reports within 120 days of receipt.

Exempts developments subject to regulatory agreements with the California Tax Credit Allocation Committee, Department of Housing and Community Development, or public entities serving formerly homeless or extremely low-income individuals, and properties to be removed from the housing market within one year.