SB 728 Summary

• Requires developers and local governments to ensure for-sale density bonus units are initially occupied by very low, low, or moderate-income households at affordable housing costs and include an equity sharing agreement, or are purchased by a qualified nonprofit housing organization with a repurchase option and affordability restrictions for at least 45 years.

• Allows qualified nonprofit housing organizations receiving welfare exemptions to purchase density bonus units under recorded contracts that include repurchase options requiring subsequent purchasers to offer the nonprofit first right to buy back the property.

• Expands density bonus eligibility to include rental or sale units for lower and very low-income households, modifying language from rental-only to rental or for-sale units.

• Imposes state-mandated local program requirements on cities, counties, and city and counties regarding density bonus implementation, with reimbursement available through state mandate procedures if Commission on State Mandates determines costs are mandated.

• Becomes operative conditionally if both SB 728 and SB 290 are enacted before January 1, 2022, with SB 728 enacted last; otherwise only Section 1 becomes operative.