California Senate Bill SB1170

California 2025-2026 Regular Session

• Introduced: 2/18/26
• Refer: 2/26/26
• Report Pass: 4/22/26
• Engrossed: 4/30/26

Caption

An act to amend Section 990.8 of, and to add Section 6525.5 to, the Government Code, relating to nonprofit housing developers.

Impact

One notable impact of SB 1170 is the expansion of the entities that can participate in joint insurance agreements. By including nonprofit housing developers, the bill facilitates a structure where these developers can collaboratively manage risks and liabilities without being held accountable for one another's debts, thus potentially attracting more investment and support in the housing sector. This change is expected to enhance the capacity of nonprofit developers to provide affordable housing by minimizing financial risks associated with liability.

Summary

Senate Bill No. 1170, introduced by Senator Durazo, seeks to amend portions of the Government Code relating to joint powers agreements, particularly in the context of nonprofit housing developers. The bill allows nonprofit housing developers to enter into joint powers agreements with any public agency for common purposes. This development is significant as it grants nonprofit housing developers the same capacity for forming risk-pooling agreements as other public entities, thereby boosting their operational and financial capabilities.

Contention

While proponents argue that SB 1170 enhances the ability of nonprofit housing developers to operate efficiently and securely, critics may express concerns about potential overreach and the implications for public accountability. The bill can intensify debates on how public funds and responsibilities are shared among various stakeholders, especially if these agreements limit the financial exposure of public agencies in housing projects. Critics may argue that it could reduce oversight and lead to more risks being taken by developers, impacting the overall housing market.