AB 2145: Housing finance: barriers to downsizing: study.

California · Assembly · 2025–2026 Regular Session · last verified June 8, 2026

What AB 2145 does, verified June 8, 2026

This bill would allow a borrower who has reached retirement age to transfer the interest rate and remaining loan term of a mortgage on a residential property to a new mortgage secured by their principal residence. This transfer would be allowed without accelerating the original loan, meaning the borrower would not have to pay off the original loan immediately. The new mortgage would be secured by the new principal residence and would have the same interest rate and loan term as the transferred amount.

Bill journey

1IntroducedCurrent

2In CommitteePending

3First Chamber FloorPending

4Second ChamberPending

5GovernorPending

6ChapteredPending

Last action: In committee: Held under submission. (2026-05-14)Alert me

Author and sponsors

Asm. Robert GarciaAuthor · California State Assembly

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Recent actions10 total · showing 5

May. 14, 2026	In committee: Held under submission.
May. 14, 2026	Joint Rule 62(a), file notice suspended. (Page 5030.)
May. 13, 2026	In committee: Set, first hearing. Referred to APPR. suspense file.
Apr. 30, 2026	Re-referred to Com. on APPR. pursuant to Joint Rule 10.5.
Apr. 30, 2026	Read second time. Ordered to third reading.

Full action history, 5 earlier actionsConnect Plus

Latest bill textAmended version, April 29, 2026 · 621 words

Amended IN Assembly April 29, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2145

Introduced by Assembly Member Garcia

February 18, 2026

An act to add and repeal Section ~~2924.4 to the Civil Code, relating to real property.~~ 50464.5 of the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 2145, as amended, Garcia. ~~Mortgages: principal residence.~~ Housing finance: barriers to downsizing: study.

Existing law establishes the Department of Housing and Community Development and authorizes the department to study the operation and enforcement of specified laws related to housing finance, taxes, redevelopment programs, and public housing projects, as related to housing and community development.
This bill would require the department, upon appropriation by the Legislature, to conduct a study to assess the need and desire among seniors 60 years of age and older to downsize their homes, as specified. The bill would require the department to submit a report on the study to the Legislature within one year of an appropriation made for this purpose. The bill would repeal its provisions on January 1, 2032.
Existing law generally regulates mortgages and mortgage servicers, including, among other things, prohibiting the acceleration of a loan secured by a mortgage upon specified transfers of residential real property.
This bill would authorize a borrower who has reached retirement age to transfer the interest rate and remaining loan term secured by a mortgage on residential real property to a mortgage secured by a new principal residence, as specified.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 50464.5 is added to the Health and Safety Code, to read:

50464.5.
(a) The department shall conduct a study to assess the need and desire among seniors to downsize their homes. The purpose of the study shall be to enable the department to do all of the following:
(1) Examine the primary reasons seniors choose to downsize, including the role of financial challenges.
(2) Determine to what extent financial challenges are a barrier to downsizing.
(3) Identify nonfinancial barriers that limit seniors’ ability to downsize.
(4) Analyze trends across different senior age groups regarding housing preferences, including size and architectural characteristics and their impact on mobility.
(5) Evaluate the potential benefits and feasibility of enabling seniors to transfer their existing mortgage interest rate to a new home when downsizing and whether seniors would utilize this option.
(b) Not later than one year following an appropriation made for purposes of this section, the department shall submit a report on the study and its findings, as described in subdivision (a), to the Legislature, in compliance with Section 9795 of the Government Code. The report shall include findings and recommendations regarding potential policy options to facilitate downsizing opportunities for seniors.
(c) For purposes of this section, “senior” means a person 60 years of age or older.
(d) This section shall become operative only upon appropriation by the Legislature.
(e) This section shall remain in effect only until January 1, 2032, and as of that date is repealed.

SECTION 1.Section 2924.4 is added to the Civil Code, to read:
2924.4.
(a)Notwithstanding any other law, a borrower who has reached retirement age may transfer the interest rate and remaining loan term of a loan secured by a mortgage or deed of trust on residential real property that is the principal residence of the borrower to a loan secured by a mortgage or deed of trust on a residential real property that is the replacement principal residence of the borrower.
~~(b)This section applies to any loan secured by a mortgage or deed of trust that is open on January 1, 2027, and to any new loan opened on or after January 1, 2027.~~

Text of AB 2145 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions