Authors: Eva Frazier, Ryan Kemp, Adrian Villaneda, Madison Lourenco
What is Assembly Bill 939?
Assembly Bill 939 (AB 939), originally introduced by Assemblymember Nick Schultz, amended California's Density Bonus Law under Government Code §65915. AB 939 has increased pathways for qualified nonprofits to purchase specifically reserved affordable housing units.
The previous Density Bonus Law allows developers to receive incentives for including certain affordable or qualifying housing units in their developments. The previous density bonus law meant that, within California, when the government reviews a developer’s plans for building construction or remodeling, they will approve a higher level of residential density than would be typically permitted if they meet conditions regarding affordable housing. Meyers Nave, a Californian law firm, has clarified that the "density bonus is set on a sliding scale, based upon the percentage of affordable units” present within the planned development. This means that if two developers indicate different percentages of affordable housing in their zoning plans, for example, ten out of one hundred units are affordable as opposed to thirty out of one hundred, the developer who planned to designate thirty units as affordable would receive a great number of “bonus” zoning permits.
Additionally, the bonuses vary based upon the level of affordability of the units in question, which can range in level of financial accessibility. The bonus provided to developers often occurs through the allowance of the construction of additional units on the same plot of land. This law was originally introduced to incentivize the construction of affordable housing. For the “for sale” units that qualified the developer to receive the density bonus, current law requires the unit to first be offered to a qualified very low, low, or moderate income household. If the unit has not been purchased within 180 days after the certificate of occupancy is issued, a qualified nonprofit housing corporation may then purchase the unit.
AB 939 created an additional pathway to transfer affordable units by allowing a qualified nonprofit housing corporation to purchase an eligible unit without waiting for the existing 180-day period that was in place prior. The nonprofit would still have to meet the requirements established under the law and maintain the affordability restrictions associated with the unit. The bill is intended to make the process of transferring eligible affordable units more flexible and efficient.
Why was it introduced ?
AB 939 is a change to an existing housing policy rather than a new housing program, and was introduced because the existing Density Bonus Law’s 180-day waiting period required can delay a qualified nonprofit's ability to purchase an affordable unit when an income qualified household has not purchased it. For developers, the change may provide greater flexibility when an eligible unit does not immediately find a qualified buyer. For nonprofit organizations, this change may increase organization’s ability to acquire and preserve affordable homeownership units. AB 939 now allows nonprofits to purchase affordable housing apartments sooner. Sponsors of the bill highlighted its potential to both reduce the costs that developers face when a property sits empty, and ensure that affordable housing does not remain vacant. If units sit vacant, developers must continue to pay maintenance costs, reducing the profit they can generate from a development. The only registered official opposition to the bill, per Senate and Assembly records, was that from the California Association of Realtors. The organization expressed concerns that AB 939 would weaken low income community member’s options to own their own properties, and that “unless amended to resolve C.A.R.'s concerns, AB 939 will undermine property rights, weaken homeownership pathways, and threaten the long-term stability of California's entry-level ownership market.”
As the bill does not directly provide government funding or guarantee lower housing prices for residents, its potential effects on increasing affordable housing should not be overstated. It specifically may offer greater flexibility in preserving affordable homeownership opportunities. This impact will depend on how many qualifying developments are constructed and whether nonprofit organizations have the resources to purchase the available units.
How is it relevant to the Inland Empire ?
This bill may have important impacts throughout the Inland Empire because it applies statewide to qualifying developments. All cities and counties, including Riverside and San Berdenion county, must adhere to California's Density Bonus Law. Riverside and San Bernardino Counties include communities experiencing significant housing affordability challenges, making policies that preserve affordable housing relevant to the region.
Based upon the Traditional Housing Affordability Index, which measures relative affordability of a housing market, at the end of 2024, only twenty percent of Inland Empire households could afford a median priced home. Additionally, within the last five years, extensive levels of commercial development, particularly for warehouses and logistics centers, has been approved on land originally zoned for housing, limiting available home construction space. Currently, some efforts are underway to increase the availability of affordable housing in the Inland Empire. In November of 2025, Governor Gavin Newsom approved the use of specific state land plots in Riverside to construct affordable homes. In April 2026, the Housing Authority of the County of San Bernardino’s (HACSB) Arrowhead Grove Affordable Housing Phase V Project received 3 million dollars in federal funding to expand affordable housing offerings within the Inland Empire. Although these projects are not directly related to AB 939, the bill could bolster efforts to increase funding and land availability for affordable housing in the Inland Empire. The previous DBL has already shaped development in the Inland Empire through an increase in reserved affordable properties; on October 15th, Redland News reported that seventeen affordable housing units had been approved for construction in Redlands due to the existing density bonus law. As opposed to increased financial investment or earmarking of land for affordable housing, the DBL sets aside housing within general large scale development, and AB 939 addresses the interaction between non profits and these developments
Who are the decision makers?
In addition to Assemblymember Nick Schultz, AB 939 was co-authored by Assemblymember José Solache and Assemblymember Buffy Wicks. AB 939 passed both the Assembly (67-6-6) and Senate floor (34-1-5), and then presented to Governor Gavin Newsom for signature or veto on September 4th, 2026. It was approved by Governor Newsom on September 29th and is now considered enacted.
Works Cited
4th Quarter California Housing Affordability report. (n.d.). Retrieved November 3, 2026, from https://www.car.org/aboutus/mediacenter/newsreleases/2025releases/4qtr2024hai
AB 939: Housing development: density bonuses: affordability of for-sale units. | Digital Democracy. (n.d.-a). Retrieved November 3, 2026, from https://calmatters.digitaldemocracy.org/bills/ca_202520260ab939
Advocacy—San Diego Habitat for Humanity. (n.d.). Retrieved November 3, 2026, from https://www.sandiegohabitat.org/what-we-do/advocacy/
Bill Analysis—AB-939 Housing development: Density bonuses: Affordability of for-sale units. (n.d.). Retrieved November 3, 2026, from https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=202520260AB939
California Code, GOV 65915. (n.d.). Retrieved November 3, 2026, from https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65915&lawCode=GOV
California, S. of. (2025, November 18). Governor Newsom announces underutilized state property in Riverside to become 209 affordable homes. Governor of California. https://www.gov.ca.gov/2025/11/18/governor-newsom-announces-underutilized-state-property-in-riverside-to-become-209-affordable-homes/
Costs of Development—SV@Home. (n.d.). Retrieved November 3, 2026, from https://siliconvalleyathome.org/resources/economics-of-housing/
Density Bonus | Santa Rosa, CA. (n.d.-a). Retrieved November 3, 2026, from https://www.srcity.org/2555/Density-Bonus
Goetz, J., & Sakai, T. (n.d.). Guide to the California Density Bonus Law.
Masterton, H. (2023, March 27). Inland Empire Politicians Ignoring Housing Crisis While Conjuring Warehouse Crisis. Western Center on Law & Poverty. https://wclp.org/inland-empire-politicians-ignoring-housing-crisis-while-conjuring-warehouse-crisis/
Redlands Planning Commission approves 194-unit apartment complex on San Bernardino Avenue. (2026, October 15). Community Forward Redlands News. https://www.communityforwardredlands.com/redlands-planning-commission-approves-194-unit-apartment-complex-on-san-bernardino-avenue/
Rep. Aguilar Delivers $3 Million for San Bernardino County to Build More Affordable Housing – Pete Aguilar. (n.d.). Retrieved November 3, 2026, from https://aguilar.house.gov/2026/04/24/rep-aguilar-delivers-3-million-for-san-bernardino-county-to-build-more-affordable-housing/
