California Code, Government Code - GOV § 65960.1

(a) Any local source of funding that can be used for the development of affordable housing shall include adaptive reuse as an eligible project. No agency with control of a local source of funding shall prohibit or exclude a project proposal that uses an adaptive reuse model for an affordable housing project development solely on the basis that the proposal is for an adaptive reuse project.

(b) For purposes of this section “adaptive reuse” means the retrofitting and repurposing of an existing building to create new residential units.