HCD developed the Guide to Affordable Housing Preservation Laws to explain how these laws work to preserve affordable homes in California. The Guide covers the various protections that promote transparency and accountability as well as incentivize long-term affordability. Finally, the Guide explains HCD’s role in holding owners and operators accountable and the consequences for non-compliance. The Guide includes information on the requirements related to:

• Tenant and government partner notifications of expiring affordability
• Registering as a Qualified Entity interested in bidding on affordable properties
• The process for sales of affordable homes, and the priority for maintaining affordability
• The consequences for not complying with affordable housing preservation laws

Guide to Affordable Housing Preservation Laws (PDF) — Revised 09/2024. Note: HCD will soon publish a revised Guide that incorporates AB 2926 amendments that took effect on January 1, 2025.

Three years prior to a scheduled expiration of rental restrictions, prepayment of a federally insured or held mortgage, or anticipated date of the termination of a subsidy contract, the owner of an assisted housing development must provide notice using the HCD-approved form (Gov. Code, § 65863.10, subd. (e)) unless exempt under Government Code section 65863.13.

Notice must be given to:

1. every prospective tenant at the time the prospective tenant is interviewed for eligibility.
2. existing tenants by posting the notice in an accessible location on the property.
3. affected public entities, which include HCD, the local housing authority, and the city (or county for an unincorporated area). 
   
   All notices to affected public agencies must be made by either first-class mail postage prepaid or electronically to any public entity that has provided an email address for that purpose. 
   
   To notice HCD, please send notices via email to Preservation@hcd.ca.gov (preferred) or via mail to 651 Bannon Street, Suite 400, Sacramento, CA 95811.

Owners must use the HCD-approved forms below to comply with Government Code section 65863.10, subdivisions (b), (c), and (e).

• Three Year Notice to Tenants of Owner's Intent to Prepay or Terminate template (PDF) — Revised: 02/18/2025
• Spanish version coming soon.

Twelve months prior to a scheduled expiration of rental restrictions, prepayment of a federally insured or held mortgage, or anticipated date of the termination of a subsidy contract, the owner of an assisted housing development must provide notice using the HCD-approved form (Gov. Code, § 65863.10, subd. (b)) unless exempt under Government Code section 65863.13.

Notice must be given to:

1. every prospective tenant at the time the prospective tenant is interviewed for eligibility.
2. existing tenants by first-class mail postage prepaid.
3. affected public entities, which include HCD, the local housing authority, and the city (or county for an unincorporated area). 
   
   All notices to affected public agencies must be made by either first-class mail postage prepaid or electronically to any public entity that has provided an email address for that purpose. 
   
   To notice HCD, please send notices via email to Preservation@hcd.ca.gov (preferred) or via mail to 651 Bannon Street, Suite 400, Sacramento, CA 95811.

Owners must use the HCD-approved forms below to comply with Government Code section 65863.10, subdivisions (b), (c), and (e).

• Twelve Month Notice to Tenants of Owner's Intent to Prepay or Terminate template (PDF)  — Revised: 02/18/2025
• Spanish version coming soon.

Tenant Resource Document to Include with Twelve-Month Notice

The Tenant Advisory and Options document below should be included with the twelve-month notice. This document helps inform tenants of the resources and options available to them. Tenants can also contact the agencies/organizations listed in the “cc” section at the end of the Three-Year, Twelve- Month, and Six-Month Notice of Intent if they have additional questions or need assistance.

• Tenant Advisory and Options: Attachment to Notice of Intent (PDF) — Revised: 02/18/2025
• Tenant Advisory and Options: Attachment to Notice of Intent - HUD Projects (PDF) — Revised: 02/18/2025

An owner must provide a Notice of Opportunity to Submit an Offer to Purchase (NOSOP) prior to or concurrent with the 12-month notice. Additionally, if an owner is contemplating selling an assisted property within five years of expiration or eligibility for termination or prepayment, they must provide the NOSOP at least twelve months in advance unless the sale or disposition qualifies for exemption pursuant to Government Code section 65863.13.

• Notice of Opportunity to Submit and Offer to Purchase template (PDF) — Revised: 02/18/2025

This notice must be: 

1. Sent to geographically relevant Qualified Entities (QEs) and to QEs that directly contact the owner. QEs are entities interested in bidding on affordable properties and deemed qualified by HCD.
   1. Geographically relevant QEs include all QEs in the county where the development is located and those whose area of interest includes “All Counties.”
   2. The most current list of QEs can be found in the “Qualified Entities” section below.
   3. The notices to QEs must be made by registered or certified mail, return receipt requested. Additional information and the contact list of QEs can be found in the “Qualified Entities” section below.
2. Send to HCD, via email to Preservation@hcd.ca.gov (preferred) or via mail to 651 Bannon Street, Suite 400, Sacramento, CA 95811.
3. Posted in a conspicuous place in the common area of the development. (Gov. Code, § 65863.11).

270-Day Offer Period Prioritizing Affordability for Sales and Purchase of Properties

The Notice of Opportunity to Submit an Offer to Purchase (NOSOP) initiates a 270-day offer period, during which preservation is prioritized. The owner may not accept an offer from any entity other than a QE during these 270 days. If the owner receives one or more bona fide offers from a QE or QEs that meet these requirements, the owner must notify HCD within 90 days of all bona fide offers and either:

• Accept one of the bona fide offers from a QE subject to the valuation process described in Government Code section 65863.11, subdivision (j) and execute a purchase agreement; or
• Record a new regulatory agreement with a term of at least 30 years that, at a minimum, meets the criteria of subdivision (a) of Government Code section 65863.13 (Gov. Code, § 65863.11, subd. (i)).

If the owner does not receive a bona fide offer from one or more qualified entities within the 270-day offer period, or if all bona fide offers are withdrawn, the owner may do any of the following:

• Sell the property to any buyer. If the property is sold to a non-QE, the owner must record a compliance certification prior to the close of escrow. Contact HCD at Preservation@hcd.ca.gov for a copy of the compliance certification template.
• Extend affordability restrictions for any period of time.
• Maintain ownership of the property and allow the affordability to end after the required notices are provided.

Six months prior to a scheduled expiration of rental restrictions, prepayment of a federally insured or held mortgage, or anticipated date of the termination of a subsidy contract, the owner of an assisted housing development must provide notice using the HCD-approved form (Gov. Code, § 65863.10, subd. (c)) unless exempt under Government Code section 65863.13.

Notice must be given to:

1. every prospective tenant at the time the prospective tenant is interviewed for eligibility.
2. existing tenants by first-class mail postage prepaid.
3. affected public entities, which include HCD, the local housing authority, and the city (or county for an unincorporated area).

All notices to affected public agencies must be made by either first-class mail postage prepaid or electronically to any public entity that has provided an email address for that purpose.

To notice HCD, please send notices via email to Preservation@hcd.ca.gov or via mail to 651 Bannon Street, Suite 400, Sacramento, CA 95811.

Owners must use the HCD-approved forms below to comply with Government Code, § 65863.10, subdivisions (b), (c), and (e).

• Six Month Notice to Tenants of Owner's Intent to Prepay or Terminate template (PDF) — Revised: 02/18/2025
• Six Month Letter to Affected Public Entities template (PDF) — Revised: 02/18/2025
• Spanish version coming soon.

7-Day Notice of Significant Change to Six-Month Notice

Owners must notify each existing tenant, HCD, and the affected public entities within seven business days of any significant change in the information required in the six-month notice to tenants (Gov. Code, § 65863.10 subd. (d)). “Significant change” includes, but is not limited to, any change to the date of termination, prepayment, or expiration or any change in the anticipated new rent.

Tenant Resource Document to Include with Six-Month Notice

The Tenant Advisory and Options document should be included with the six-month notice. The document helps inform tenants of the resources and options available to them. Tenants can also contact the agencies/organizations listed in the “cc” section at the end of the Three-Year, Twelve-Month, and Six-Month Notice of Intent if they have additional questions or need assistance.

• Tenant Advisory and Options: Attachment to Notice of Intent (PDF) — Revised: 02/18/2025
• Tenant Advisory and Options: Attachment to Notice of Intent - HUD Projects (PDF) — Revised: 02/18/2025

Owners of multifamily residential developments that receive governmental assistance under programs defined in Government Code Section 65863.10, subdivision (a)(3) must register their properties and complete an annual certification of compliance with affordable housing preservation laws. All assisted housing developments with five or more units in which at least 5 percent of the units are subject to affordability restrictions or a rent or mortgage subsidy contract must be certified.

If a property is operated under a ground lease or similar structure, the title holder and the lessee are mutually responsible for the completion of the certification (Gov. Code, § 65863.11, subd. (n)(3)(B)).

The California Housing Preservation Portal below is how responsible parties must complete their annual certifications.

California Housing Preservation Portal (CaHPP)

If you need assistance navigating the CaHPP Portal, please view CaHPP Portal User Training Video

Contact HCD's Housing Accountability Unit at Preservation@hcd.ca.gov for additional information or assistance.

Qualified entities are tenant associations, local non-profit organizations and public agencies, regional/national non-profit organizations and regional/national public agencies, or profit-motivated housing organizations or individuals that are interested in bidding on affordable properties and have been deemed certified to own and operate assisted housing developments by HCD.

Use the form below to apply to be registered as a Qualified Entity:

• Qualified Entity Certification Form (PDF) — Revised 10/2023

Owners must notify all relevant Qualified Entities of potential opportunities to purchase an assisted housing development (see NOSOP section for further details).

• HCD’s current list of Qualified Entities (XLS)

HCD makes enforcement letters, actions, and a list of notices received available to the public. The report of all letters issued is organized by jurisdiction, date, and letter type.

Technical Assistance and Enforcement Letters

The report of all notices received is organized by date received, project name, property information, and notice type. HCD makes no representation of the accuracy or compliance with statutory notice provisions.

Notices Received by HCD

To request technical assistance or report violations of affordable housing preservation laws, please submit your inquiry to Preservation@hcd.ca.gov.

• Affordable Housing Map (California Housing Partnership)
• Preservation technical assistance (California Housing Partnership)
• Preservation strategies (California Housing Partnership)

Learn how local governments and nonprofit organizations can request access to the California Housing Partnership's database of at-risk affordable developments.