Governor Gavin Newsome (D-CA) recently signed S.B 948, which allows the California Department of Housing and Community Development to establish a statewide Pooled Transition Reserve Fund. The California legislature appropriated $5 million and commits to additional annual appropriations. The bill authorizes CalHCD to charge a fee to a development that receives qualified project rental or operating subsidies at the time of permanent loan closing, not to exceed the department’s reasonable costs to capitalize the reserve fund and cover administrative costs, to be deposited in the fund.