California Housing Justice & Earned Equity Act
Your rent has always been proof you can afford a home. This act finally recognizes that.
During World War II, Black shipyard workers built the ships that won the war at Marinship in Marin City. When the war ended, they were systematically locked out of the homeownership boom that built white middle-class wealth — through redlining, restrictive covenants, and unequal access to federal housing programs. Today, Marin City remains one of the few Black communities in Marin County, with dramatically lower homeownership rates than its neighbors. A few miles south, immigrant families in San Rafael's Canal district pay unaffordable rent in overcrowded conditions while facing constant displacement pressure. This act creates a pilot program in both communities: the state voluntarily acquires properties from willing sellers at fair market value, transfers them to community land trusts, and enrolls qualifying tenants in the Earned Equity Program — where 15–30% of every on-time rent payment builds toward ownership over up to 15 years. You prove you can pay rent. The state helps you turn that into a home.
Pay Rent. Build Equity. Own Your Home. Keep It Affordable Forever.
Eighty percent of low-income Californians are renters. They pay rent on time, year after year, proving they can handle housing costs — yet none of that history counts when they try to buy a home. Meanwhile, the communities they live in face speculative buyouts that displace the people who built them. This act tackles both problems at once. The state buys properties only from willing sellers at fair market value — no eminent domain, ever — and transfers them to community land trusts with 99-year affordability. Qualifying tenants enter the Earned Equity Program: complete financial literacy courses, maintain stable income, keep your home in good condition, pay rent on time, and 15–30% of every payment accumulates as equity credits toward ownership over up to 15 years. You earn it. It's inheritable. And when you sell, 50% of appreciation stays with you, 50% preserves affordability for the next family. Two pilot communities first. Expansion only if the LAO certifies success against nine measurable benchmarks.
The Earned Equity Program
Years of on-time rent payments prove you can own a home — this program turns that proof into a key
Eligible households (income ≤80% AMI, priority for ≤50% AMI) voluntarily enroll and commit to on-time rent, stable income, property maintenance, lease compliance, and free financial literacy courses. In return, 15–30% of every on-time rent payment accrues as earned equity credits (enhanced rate for extremely low-income households). Over up to 15 years, credits accumulate to 100% of the benchmark home value — calculated as acquisition price minus subsidies plus rehab, divided by units. Quarterly statements show progress. Credits are portable within the pilot area. Prior rent history may count. Ownership forms include fee-simple with shared equity, limited-equity co-ops, and 99-year inheritable community land trust ground leases. Noncompliance triggers graduated consequences — written notice, probation, reduced accrual, then program removal — but termination from the equity program is never grounds for eviction. Hardship provisions suspend (never forfeit) credits for up to 12 months during job loss, illness, or family emergencies.
Voluntary Acquisition & Community Land Trusts
No eminent domain. Not ever. Willing sellers only, fair market value, with free legal counsel and a 30-day right to walk away.
The state acquires properties exclusively from willing sellers at prices not exceeding the average of two independent appraisals by unaffiliated licensed appraisers. Every seller gets: written notice of the absolute right to refuse (in their primary language), free independent legal counsel at program expense, a notarized voluntary-sale certification, and a 30-day cooling-off period to rescind without penalty. Priority: multifamily rentals with existing low-income tenants, properties at risk of speculative sale, Section 8 properties where owners are exiting. Acquired properties transfer within three years to public interest entities (community land trusts, nonprofit housing organizations) with 99-year ground leases, permanent affordability restrictions, and governance boards that are at least one-third residents. The state never operates as a landlord. Clawback provisions require return of state investment if affordability restrictions are violated.
Displacement Prevention & Tenant Protections
No tenant in good standing loses their home because the state bought the building
Every activity under this act is designed to prevent involuntary displacement. No tenant in good standing is required to vacate due to acquisition. If temporary relocation is needed for rehabilitation, the entity provides comparable housing at no cost, relocation assistance, and an absolute right of return at affordable rent. Section 8 voucher holders keep their eligibility throughout and can apply assistance toward earned equity — upon homeownership, the voucher is released to serve another family. It is unlawful to evict, threaten eviction, raise rent illegally, or harass any tenant for participating or declining to participate. Violations carry civil liability for actual damages, injunctive relief, and attorney's fees. All materials in English, Spanish, and community languages. Immigration status is never collected and no information is shared with immigration enforcement. Property inspections require 72 hours' notice and are limited to health/safety — no inspection of personal effects.
Resale, Inheritance & Permanent Affordability
You keep half the appreciation. The other half keeps it affordable for the next family. And your kids inherit.
When you sell within 15 years: you keep your contributed equity plus 50% of any appreciation. The other 50% returns to the community land trust for permanent affordability. Sales are restricted to income-eligible households or back to the trust at a formula-restricted price. After 15 years of ownership, shared equity requirements phase out — but CLT resale restrictions continue in perpetuity. Inheritance: surviving spouse or domestic partner keeps ownership under the same terms. Dependent children keep it until adulthood. If no eligible survivor, the property sells under restrictions with proceeds to the estate. The revolving fund structure means every sale recycles money for the next family — this is designed to be self-sustaining.
Pilot Rigor, Success Metrics & Contingent Expansion
Nine measurable benchmarks. LAO concurrence required. No expansion unless the pilot actually works.
Phase I: $60M over 5 years ($12M/yr) for up to 150 units across both pilot sites (minimum 50 per site). Phase II (Years 5–7): no new acquisitions — independent LAO evaluation only. Phase III (Years 7–10): expansion to up to 2,000 additional units statewide — but only if the department certifies success and the LAO concurs. Nine benchmarks, all required in both sites: ≥85% on-time rent, ≥80% stable employment, ≥90% tenant retention, ≥60% ownership conversion within 15 years, ≥90% properties maintained, costs within 110% of budget, revolving fund cash-flow positive by Year 7, no crime increase, ≥70% satisfaction. Expansion communities must show ≥40% cost-burdened renters, documented history of housing discrimination, local government support, and CLT capacity. At least 20% of expansion reserved for rural communities including Humboldt, Mendocino, Del Norte, Trinity, Modoc, and Siskiyou. Two tax credits: 25% CLT investment credit ($50K/yr max, $5M cap) and 20% affordable rehab credit ($25K/unit, $10M cap). 15-year sunset.
Community Investment, Workforce & Tribal Partnership
The work of building these homes goes to the people who live in these communities
At least 40% of rehabilitation contract value goes to businesses in or owned by residents of the pilot areas. At least 25% of labor hours performed by pilot-area residents. The department coordinates with local workforce programs for job training and placement. A minimum 25% local/private/philanthropic match is required (reduced to 10% for pilot areas and exceptional-need communities), leveraging Housing Choice Vouchers, HOME, LIHTC, CDBG, and the Affordable Housing and Sustainable Communities Program. Tribal housing authorities are eligible as public interest entities. Government-to-government consultation with affected tribes is required. Tribes in CA-2 — including Round Valley, Hoopa Valley, and Yurok — are specifically considered. Cost controls: acquisition ≤110% of area median, total cost ≤130%, with 10% waiver for historic preservation or accessibility. Admin capped at 10% state, 12% entities.
Every Bill Meets These Standards
Article XXXIV compliance (not public housing — voluntary acquisition to CLTs), no eminent domain, Proposition 26 fee compliance, Fair Housing Act and Unruh Act compliance, full severability. Built on law, not promises.