Potential conversion of affordable housing to market-rate housing is an ongoing and critical statewide problem. Federal, state, and local governments have invested in the development of more than 500,000 affordable rental homes in California over the last few decades.

A large percentage of these units may convert to market rate as subsidy contracts or regulatory agreements expire. These at-risk units are home to seniors and families with lower incomes who cannot afford to pay market-rate rents and who could be displaced if the developments convert.

State Preservation Notice Law Requirements

Owners of specified, federally assisted projects are required, unless exempted, to provide "notices of intent" to prepay a federally assisted mortgage, terminate mortgage insurance, or terminate rent subsidies or restrictions at three years, twelve and six months to all affected households, to affected public agencies, and to prospective tenants (California Government Code (GC) Section 65863.10 (b), (c) and (e)).

Additional Notice of significant changes to the six-month notice shall provide a seven-business day notice to each affected tenant household and to the affected public entities (California Government Code (GC) Section 65863.10 (d)).

Affected public agencies include the city or county where the development is located, the local public housing authority, and the California Department of Housing and Community Development (HCD) (GC Section 65863.10 (a)).

All notices to affected tenants must be made by first-class mail postage prepaid. 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.

Owners of government-assisted developments cannot terminate subsidy contracts, prepay a federally assisted mortgage, or discontinue use restrictions without first providing an exclusive "notice of opportunity to submit an offer to purchase" to each identified qualified entity (GC Section 65863.11 (g)).

The notices to qualified entities must be made by registered or certified mail, return receipt requested. The owner shall also post a copy of the notice in a conspicuous place in the common area of the development.

Links to California Government Code Sections 65863.10, 65863.11, and 65863.13.

Contact the Division of Housing Policy Development at preservation@hcd.ca.gov for additional information.

Owner Notices and Letters

• Three Year Notice to Tenants of Owner's Intent to Prepay or Terminate (PDF) — Revised 01/2021
• Three Year Notice to Tenants of Owner's Intent to Prepay or Terminate (Spanish) (DOC) — Revised 02/2019
• Twelve Month Notice to Tenants of Owner's Intent to Prepay or Terminate (PDF) — Revised 01/2021
• Twelve Month Notice to Tenants of Owner's Intent to Prepay or Terminate (Spanish) (DOC) — Revised 02/2019
• Six Month Notice to Tenants of Owner's Intent to Pay or Terminate (PDF) — Revised 01/2021
• Six Month Notice to Tenants of Owner's Intent to Pay or Terminate (Spanish) (DOC) — Revised 02/2019
• Six Month Letter to Affected Public Entities (DOC) — Revised 02/2019
• Six Month Letter to Affected Public Entities (Spanish) (DOC) — Revised 02/2019
• Tenant Resources (PDF) — Revised 01/2021
• Tenant Resources (Spanish) (DOC) — Revised 08/2020
• Tenant Advisory and Options: Attachment to Notice of Intent - HUD Projects (PDF) — Revised 01/2021
• Tenant Advisory and Options: Attachment to Notice of Intent (PDF) — Revised 01/2021
• Tenant Advisory and Options: Attachment to Notice of Intent (DOC) — Revised 08/2020
• Notice of Opportunity to Purchase (DOC)

View list of notices received by HCD (XLS) (Revised). HCD makes no representation of the accuracy or compliance with statutory notice provisions.

Annual Owner Compliance Certification

Owners of multifamily residential developments that receive governmental assistance under programs defined in Government Code Section 65863.10(a)(3) must register their properties and complete an annual certification of compliance with Preservation Notice Law. See State Preservation Notice Law Requirements above for more information. 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 (California Government Code (GC) Section 65863.11(o)(3)(B)).

All assisted housing developments with five or more units in which at least 25 percent of the units of the property are subject to affordability restrictions or a rent or mortgage subsidy contract must be certified.

Contact the Division of Housing Policy Development at preservation@hcd.ca.gov for additional information.

California Housing Preservation Portal (CaHPP)

• Annual Owner Certification Training Video
• Annual Owner Certification Webinar
• Frequently Asked Questions (Coming Soon)

Qualified Entity Information

• HCD’s current list of Qualified Entities (XLS)
• Self-Certification as a Qualified Entity (PDF) — Revised 05/2017
• Qualified Entity Certification (PDF) — Revised 05/2017

Partnership Links

• 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.