Assembly Member Lee's Social Housing Act would establish the California Housing Authority (CHA) as an independent state body to develop and maintain publicly-owned mixed-income housing across California. The CHA would operate under a board comprising housing experts, government appointees, and resident representatives, with a mandate to help eliminate gaps between housing production and regional needs assessment targets.

The legislation creates two distinct housing models: a rental option offering one-year leases and an ownership path providing 99-year limited equity arrangements. Both models would accommodate residents across income levels, from extremely low to above moderate income, with rents structured to ensure no resident pays more than 30% of their income for housing. The CHA would prioritize developing vacant parcels, underutilized properties, surplus public lands, and transit-adjacent sites.

The bill establishes the Social Housing Revolving Loan Fund to provide zero-interest construction loans and authorizes the CHA to issue revenue bonds for financing developments. Properties would operate under a revenue neutrality principle, using rent cross-subsidization to balance below-market rates for lower-income residents with higher rents from moderate and above-moderate income units. Residents would participate in property governance through local councils empowered to manage amenities budgets and provide input on renovations.

Local jurisdictions would maintain influence over development decisions, with the CHA required to accept municipal preferences for project sites meeting specified cost and amenity criteria. The authority must also coordinate with local planning bodies on factors like building height, unit count, and construction timelines.