AB 1997: Land use: housing development approvals: timelines and processes.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-08-27
Current Status:
Failed
(2026-09-30: Vetoed by Governor.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act sets forth various procedures for the review and approval of development project applications. Among other things, the act requires a public agency that is the lead agency or a responsible agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process. The act defines development project to include specified housing development projects, as provided.
This bill would additionally require approval or disapproval of a housing development project within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA if certain other conditions are met. The bill would also define housing development project for the purposes of the Permit Streamlining Act and make additional conforming changes. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act sets forth various procedures for the review and approval of development project applications. Among other things, the act requires a public agency that is the lead agency or a responsible agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process. The act defines development project to include specified housing development projects, as provided.
This bill would additionally require approval or disapproval of a housing development project within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA if certain other conditions are met. The bill would also define housing development project for the purposes of the Permit Streamlining Act and make additional conforming changes. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act sets forth various procedures for the review and approval of development project applications. Among other things, the act requires a public agency that is the lead agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process.
This bill would additionally require approval or disapproval of a housing development project within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA if certain other conditions are met. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
Existing law establishes the Department of Housing and Community Development, which is administered by the Director of Housing and Community Development. Among other things, existing law requires the department to review adopted housing elements or amendments, make a finding as to whether the adopted element or amendment is in substantial compliance with specified law, and report its findings to the planning agency.This bill would require the director, in consultation with the Governors Office of Land Use and Climate Innovation, to establish a working group, as specified, for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing, as described.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act sets forth various procedures for the review and approval of development project applications. Among other things, the act requires a public agency that is the lead agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process.
This bill would reduce the timeline for a housing development project from 90 days to 60 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA. The bill would additionally require approval or disapproval of a housing development project within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA if certain other conditions are met. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
Existing law establishes the Department of Housing and Community Development, which is administered by the Director of Housing and Community Development. Among other things, existing law requires the department to review adopted housing elements or amendments, make a finding as to whether the adopted element or amendment is in substantial compliance with specified law, and report its findings to the planning agency.
This bill would require the director, in consultation with the Governors Office of Land Use and Climate Innovation, to establish a working group, as specified, for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing, as described.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act sets forth various procedures for the review and approval of development project applications. Among other things, the act requires a public agency that is the lead agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process.
This bill would reduce various of those approval or disapproval timelines under the Permit Streamlining Act for housing development projects, as defined and specified. The bill would also additionally require approval or disapproval of a housing development project within the timeline for a housing development project from 90 days to 60 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA. The bill would additionally require approval or disapproval of a housing development project within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA and if certain other conditions are met. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
(5)ExistingExisting law establishes the Department of Housing and Community Development, which is administered by the Director of Housing and Community Development. Among other things, existing law requires the department to review adopted housing elements or amendments, make a finding as to whether the adopted element or amendment is in substantial compliance with specified law, and report its findings to the planning agency.
This bill would require the director, in consultation with the Governors Office of Land Use and Climate Innovation, to establish a working group, as specified, for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing, as described.
(6)This bill would make related findings and declarations and make conforming changes. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law, the Housing Accountability Act (act), among other things, when a housing development project, as defined, that complies with applicable, objective general plan, zoning, and subdivision standards and criteria in effect at the time that the application was deemed complete, requires a local agency that proposes to disapprove that development, or to impose a condition that the project be developed at a lower density, to base its decision on written findings supported by a preponderance of the evidence that specified conditions exist. That act, however, sets forth certain limitations with respect to its requirements, including providing that the act does not prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdictions share of the regional housing need. The act provides for enforcement of its provisions by an enforcement action brought by the applicant, a person who would be eligible to apply for residency in the housing development, or a housing organization, as provided.
This bill would, under the act, prohibit a plan, entitlement, or permit that has been approved by a previous local utility or agency from being overturned or revised by a subsequent utility or agency, unless the development proponent makes a material change to the project, as described. described, and except as specified.
(2)Existing law awards additional points or preference in the scoring of program applications for specified programs, including, among others, the Affordable Housing and Sustainable Communities Program, to jurisdictions that have adopted a substantially compliant housing element and that have been designated as prohousing, as described. Existing law requires the Department of Housing and Community Development to designate jurisdictions as prohousing under these provisions, as specified.
This bill would also award, for award cycles commenced after July 1, 2027, additional points or preference to jurisdictions that have adopted a substantially compliant housing element and that have been identified as a housing development expediter, as described. The bill would require the department to develop a housing development benchmark based on specific, objective, measurable factors, to determine whether a jurisdiction is a housing development expediter.
(3)Existing law, the Permit Streamlining Act, sets forth various procedures for the review and approval of development project applications. Among other things, that act requires that an applicant for a housing development project, as defined, be deemed to have submitted a preliminary application upon providing specified information about the proposed project to the city, county, or city and county from which approval for the project is being sought and upon payment of the permit processing fee.
This bill would require a city, county, or city and county with a population of 250,000 or more to assign a project development director to a project that is expected to cost more than $10,000,000 once it has received a development application for that project. The bill would require the project development director to oversee the project until completion and it until the project has received a certificate of occupancy, occupancy and would set forth the directors duties. The bill would, if the project development director can no longer fulfill the responsibilities for a specific project for reasons that are out of the control of the local jurisdiction, require the local jurisdiction to do everything in its power to assign a person to fulfill those responsibilities as soon as possible, as specified. The bill would also require the city, county, or city and county to assign a lead inspector to coordinate each inspection required of those projects, as described.
(4)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act requires a public agency that is the lead agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process.
This bill would reduce various of those approval or disapproval timelines under the Permit Streamlining Act, Act for housing development projects, as defined and specified. The bill would also additionally require project approval or disapproval of a housing development project within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA and certain other conditions are met.
(5)Existing law establishes the Department of Housing and Community Development, which is administered by the Director of Housing and Community Development. Among other things, existing law requires the department to review adopted housing elements or amendments, make a finding as to whether the adopted element or amendment is in substantial compliance with specified law, and report its findings to the planning agency.
This bill would require the director, in consultation with the Governors Office of Land Use and Climate Innovation, to establish a working group, as specified, for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing, as described.
(6)This bill would make related findings and declarations and make conforming changes. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law, the Housing Accountability Act (act), among other things, when a housing development project, as defined, that complies with applicable, objective general plan, zoning, and subdivision standards and criteria in effect at the time that the application was deemed complete, requires a local agency that proposes to disapprove that development, or to impose a condition that the project be developed at a lower density, to base its decision on written findings supported by a preponderance of the evidence that specified conditions exist. That act, however, sets forth certain limitations with respect to its requirements, including providing that the act does not prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdictions share of the regional housing need. The act provides for enforcement of its provisions by an enforcement action brought by the applicant, a person who would be eligible to apply for residency in the housing development, or a housing organization, as provided.
This bill would, under the act, prohibit a plan, entitlement, or permit that has been approved by a previous local utility or agency from being overturned or revised by a subsequent utility or agency, unless the development proponent makes a material change to the project, as described.
(2)Existing law awards additional points or preference in the scoring of program applications for specified programs, including, among others, the Affordable Housing and Sustainable Communities Program, to jurisdictions that have adopted a substantially compliant housing element and that have been designated as prohousing, as described. Existing law requires the Department of Housing and Community Development to designate jurisdictions as prohousing under these provisions, as specified.
This bill would also award, for award cycles commenced after July 1, 2027, additional points or preference to jurisdictions that have adopted a substantially compliant housing element and that have been identified as a housing development expediter, as described. The bill would require the department to develop a housing development benchmark to determine whether a jurisdiction is a housing development expediter.
(3)Existing law, the Permit Streamlining Act, sets forth various procedures for the review and approval of development project applications. Among other things, that act requires that an applicant for a housing development project, as defined, be deemed to have submitted a preliminary application upon providing specified information about the proposed project to the city, county, or city and county from which approval for the project is being sought and upon payment of the permit processing fee.
This bill would require a city, county, or city and county with a population of 250,000 or more to assign a project development director to a project that is expected to cost more than $10,000,000 once it has received a development application for that project. The bill would require the project development director to oversee the project until completion and it has received a certificate of occupancy, and would set forth the directors duties. The bill would also require the city, county, or city and county to assign a lead inspector to coordinate each inspection required of those projects, as described.
(4)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
The Permit Streamlining Act requires a public agency that is the lead agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the projects phase in the CEQA process.
This bill would reduce various of those approval or disapproval timelines under the Permit Streamlining Act, as specified. The bill would also require project approval or disapproval within 30 days from the date of certification by the lead agency of the EIR, if the EIR is prepared pursuant to specified provisions of CEQA and certain other conditions are met.
(5)Existing law establishes the Department of Housing and Community Development, which is administered by the Director of Housing and Community Development. Among other things, existing law requires the department to review adopted housing elements or amendments, make a finding as to whether the adopted element or amendment is in substantial compliance with specified law, and report its findings to the planning agency.
This bill would require the director, in consultation with the Governors Office of Land Use and Climate Innovation, to establish a working group, as specified, for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing, as described.
(6)This bill would make related findings and declarations and make conforming changes. By imposing additional duties on local agencies, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)Development project means any project undertaken for the purpose of development. Development project includes a project involving the issuance of a permit for construction or reconstruction but not a permit to operate.
(b)(1)(A)Except as otherwise provided in subparagraph (B), development project does not include any ministerial projects proposed to be carried out or approved by public agencies.
(B)Notwithstanding subparagraph (A), development project includes a housing development project that requires an entitlement from a local agency, regardless of whether the process for permitting that entitlement is discretionary or ministerial.
(2)Development project does not include a postentitlement phase permit, as that term is defined in Section 65913.3.
SEC. 2.Section 65928.6 is added to the Government Code, to read:65928.6.Housing development project means a development project that is a housing development project, as that term is defined in paragraph (3) of subdivision (b) of Section 65905.5.
SEC. 3.Section 65950 of the Government Code is amended to read:65950.(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project.
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project and all of the following conditions are met:
(A)At least 49 percent of the units in the housing development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the housing development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the housing development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project and all of the following conditions are met:
(A)At least 90 percent of the units in the housing development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the housing development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the housing development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(5)Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(6)Sixty days from the determination by the lead agency that the development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the development project is exempt from that act.
(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, 60 days from the date of receipt of a complete application if the development project is subject to ministerial review by the public agency.
(8)If a housing development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 4.Section 65952 of the Government Code is amended to read:65952.(a)Except as provided in subdivision (b), a public agency that is a responsible agency for a development project that has been approved by the lead agency shall approve or disapprove the development project within whichever of the following periods of time is longer:
(1)Within 180 days from the date on which the lead agency has approved the project.
(2)Within 180 days of the date on which the completed application for the development project has been received and accepted as complete by that responsible agency.
(b)Except as provided in subdivision (c), a public agency that is a responsible agency for a housing development project that has been approved by the lead agency shall approve or disapprove the development project within whichever of the following periods of time is longer:
(1)Within 45 days from the date on which the lead agency has approved the housing development project.
(2)Within 45 days of the date on which the completed application for the housing development project has been received and accepted as complete by that responsible agency.
(c)(1)Where a responsible agency is either the California Coastal Commission or the San Francisco Bay Conservation and Development Commission for a housing development project that has been approved by the lead agency, that responsible agency shall approve or disapprove the housing development project within whichever of the following periods of time is longer:
(A)Within 90 days from the date on which the lead agency has approved the housing development project.
(B)Within 90 days of the date on which the completed application for the housing development project has been received and accepted as complete by that responsible agency.
(2)Where the responsible agency is the State Water Resources Control Board or a California Regional Water Quality Control Board for a housing development project that has been approved by the lead agency, and the approval being sought from the responsible agency is either an individual waste discharge requirement or any certificate or statement required by any federal agency pursuant to the Federal Water Pollution Control Act (33 U.S.C. Sec. 1251 et seq.) or any other federal water quality control law, that responsible agency shall approve or disapprove the housing development project within whichever of the following periods of time is longer:
(A)Within 90 days from the date on which the lead agency has approved the housing development project.
(B)Within 90 days of the date on which the completed application for the housing development project has been received and accepted as complete by that responsible agency.
(d)At the time a decision by a lead agency to disapprove a development project becomes final, applications for that project which are filed with responsible agencies shall be deemed withdrawn.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)Development project means any project undertaken for the purpose of development. Development project includes a project involving the issuance of a permit for construction or reconstruction but not a permit to operate.
(b)(1)(A)Except as otherwise provided in subparagraph (B), development project does not include any ministerial projects proposed to be carried out or approved by public agencies.
(B)Notwithstanding subparagraph (A), development project includes a housing development project, as that term is defined in paragraph (3) of subdivision (b) of Section 65905.5, project that requires an entitlement from a local agency, regardless of whether the process for permitting that entitlement is discretionary or ministerial.
(2)Development project does not include a postentitlement phase permit, as that term is defined in Section 65913.3.
SEC. 2.Section 65928.6 is added to the Government Code, to read:65928.6.Housing development project means a development project that is a housing development project, as that term is defined in paragraph (3) of subdivision (b) of Section 65905.5.
SECTION 1.SEC. 3.Section 65950 of the Government Code is amended to read:65950.(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c). project.
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c), project and all of the following conditions are met:
(A)At least 49 percent of the units in the housing development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the housing development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the housing development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c), project and all of the following conditions are met:
(A)At least 90 percent of the units in the housing development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the housing development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the housing development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(5)Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(6)Sixty days from the determination by the lead agency that the development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the development project is exempt from that act.
(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, 60 days from the date of receipt of a complete application if the development project is subject to ministerial review by the public agency.
(8)If a housing development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of paragraphs (2), (3), and (4) of subdivision (a) and Section 65952, development project means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.(d)(c)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 4.Section 65952 of the Government Code is amended to read:65952.(a)Except as provided in subdivision (b), a public agency that is a responsible agency for a development project that has been approved by the lead agency shall approve or disapprove the development project within whichever of the following periods of time is longer:
(1)Within 180 days from the date on which the lead agency has approved the project.
(2)Within 180 days of the date on which the completed application for the development project has been received and accepted as complete by that responsible agency.
(b)Except as provided in subdivision (c), a public agency that is a responsible agency for a housing development project described in paragraph (2) or (3) of subdivision (a) of Section 65950 that has been approved by the lead agency shall approve or disapprove the development project within whichever of the following periods of time is longer:
(1)Within 45 days from the date on which the lead agency has approved the housing development project.
(2)Within 45 days of the date on which the completed application for the housing development project has been received and accepted as complete by that responsible agency.
(c)(1)Where a responsible agency is either the California Coastal Commission or the San Francisco Bay Conservation and Development Commission for a housing development project described in paragraph (2) or (3) of subdivision (a) of Section 65950 that has been approved by the lead agency, that responsible agency shall approve or disapprove the housing development project within whichever of the following periods of time is longer:
(A)Within 90 days from the date on which the lead agency has approved the housing development project.
(B)Within 90 days of the date on which the completed application for the housing development project has been received and accepted as complete by that responsible agency.
(2)Where the responsible agency is the State Water Resources Control Board or a California Regional Water Quality Control Board for a housing development project described in paragraph (2) or (3) of subdivision (a) of Section 65950 that has been approved by the lead agency, and the approval being sought from the responsible agency is either an individual waste discharge requirement or any certificate or statement required by any federal agency pursuant to the Federal Water Pollution Control Act (33 U.S.C. Sec. 1251 et seq.) or any other federal water quality control law, that responsible agency shall approve or disapprove the housing development project within whichever of the following periods of time is longer:
(A)Within 90 days from the date on which the lead agency has approved the housing development project.
(B)Within 90 days of the date on which the completed application for the housing development project has been received and accepted as complete by that responsible agency.
(d)At the time a decision by a lead agency to disapprove a development project becomes final, applications for that project which are filed with responsible agencies shall be deemed withdrawn.
SEC. 2.SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c).
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c), and all of the following conditions are met:
(A)At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c), and all of the following conditions are met:
(A)At least 90 percent of the units in the development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(5)Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(6)Sixty days from the determination by the lead agency that the development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the development project is exempt from that act.
(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, 60 days from the date of receipt of a complete application if the development project is subject to ministerial review by the public agency.
(8)If a development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of paragraphs (2), (3), and (4) of subdivision (a) and Section 65952, development project means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(d)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 2.Section 50411 is added to the Health and Safety Code, to read:50411.(a)The director, in consultation with the Governors Office of Land Use and Climate Innovation, shall establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing. The recommendations may include, but are not limited to, proposals for amendments to state law to achieve the same objective.(b)The director shall ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.SEC. 3.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Sixty Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c).
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c), and all of the following conditions are met:
(A)At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project, pursuant to subdivision (c), and all of the following conditions are met:
(A)At least 90 percent of the units in the development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(5)Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(6)Sixty days from the determination by the lead agency that the development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the development project is exempt from that act.
(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, 60 days from the date of receipt of a complete application if the development project is subject to ministerial review by the public agency.
(8)If a development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of paragraphs (2), (3), and (4) of subdivision (a) and Section 65952, development project means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(d)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 2.Section 50411 is added to the Health and Safety Code, to read:50411.(a)The director, in consultation with the Governors Office of Land Use and Climate Innovation, shall establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing. The recommendations may include, but are not limited to, proposals for amendments to state law to achieve the same objective.
(b)The director shall ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project. project, pursuant to subdivision (c).
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project project, pursuant to subdivision (c), and all of the following conditions are met:
(A)At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development project project, pursuant to subdivision (c), and all of the following conditions are met:
(A)At least 90 percent of the units in the development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(5)Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(6)Sixty days from the determination by the lead agency that the development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the development project is exempt from that act, except it shall be 30 days if it is a housing development project. act.
(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, 60 days from the date of receipt of a complete application if the development project is subject to ministerial review by the public agency, except it shall be 30 days if it is a housing development project. agency.
(8)If a development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of this section, housing development project has the same definition as paragraphs (2), (3), and (4) of subdivision (a) and Section 65952, development project means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(d)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 6.SEC. 2.Section 50411 is added to the Health and Safety Code, to read:50411.(a)The director, in consultation with the Governors Office of Land Use and Climate Innovation, shall establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing. The recommendations may include, but are not limited to, proposals for amendments to state law to achieve the same objective.
(b)The director shall ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.
SEC. 7.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares all of the following:
(a)According to the Department of Housing and Community Development, the state needs to build 2,500,000 homes by 2030. However, by any measure, the state is substantially behind this goal. The department reports, During the last ten years, housing production averaged fewer than 80,000 new homes each year, and ongoing production continues to fall far below the projected need of 180,000 additional homes annually.
(b)The impediments to more robust housing development are manifold, including increased cost of construction materials, labor costs, interest rates, and procedural logjams.
(c)Despite dozens of laws enacted in recent years to spur housing developmenta few too recent to measure their impacthousing construction continues to slow-walk its way toward achieving state and local development goals.
(d)Realtor.coms recent report on housing affordability and construction across all 50 states gave California an F.
(e)According to the Employment Development Department, only 94,704 housing construction permits were pulled in 2024, a 17-percent decrease since 2021. The United States Census Bureau reports that through August of 2025, only 67,502 permits have been pulled in California, substantially fewer than Florida and Texas and equivalent to North Carolina.
(f)Multifamily housing permits, which are permits for five units or more, plummeted by 31 percent from 52,772 in 2022 to 36,085 in 2024, the last full year of United States Census Bureau data.
(g)According to the Metropolitan Transportation Commission, housing production in the Bay Area bay area in 2024 was 12 percent lower than the average over the previous five years. According to the Los Angeles Department of Building and Safety, apartment units approved by the City of Los Angeles dropped 45 percent over the previous five years.
(h)According to an April 25, 2025, article from The San Francisco Standard, the City and County of San Francisco has achieved only 9 percent of its goal of authorizing 82,000 housing units by January 2031. In order to reach its goal, it must authorize 12,800 housing units each year for the next five years. Last year, less than 1,000 housing units were authorized.
(i)The RAND Corporation reports that the cost per unit in a multifamily development in California is $430,000, with the biggest thing driving up California apartment costs? Time. The time to produce a unit from start to finish is over four years. By comparison to multifamily housing development in Texas, [i]t takes twice as long to gain project approvals and the construction timeline is 1.5 times longer. That means land costs must be carried for longer, equipment and labor are on jobsites longer, and that loans are taken out for a longer term, and so on.
(j)The development cost per unit ranges from $730,000 in the San Francisco and Los Angeles areas to $575,000 in the San Diego area.
(k)The policies and practices employed by local jurisdictions at every step in the development approval process are often a major contributor to the housing construction time problem.
(1)The Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code) requires that a development project be approved by the city within 90 or 180 days, depending on the circumstances, from the date the development project application has been approved.
(2)However, there is no similar requirement regarding the approval of the application, so a city can take from one to five years to approve the application before the Permit Streamlining Act is applicable.
(3)Furthermore, there are no requirements for coordinating and expediting the process within the relevant local agencies.
(l)In two telling examples in the City of Los Angeles:
(1)A 99-year-old building was planned to be converted into a single-room occupancy housing project in downtown Los Angeles. The developer and the city had reached an agreement on the structure of the building, and the developer was ready to move forward. At the last minute, some agencies within the city imposed new requirements regarding structural improvements and fortifications that other city agencies did not believe were necessary. Because these new requirements are prohibitively expensive, the project remains stalled while the city is deprived of 231 rooms that would house people who are homeless or at risk of being homeless.
(2)An 1897 building was renovated with 94 rooms ready for occupancy to house persons who are homeless or at risk of being homeless. For more than four years, the city has stood in the way of opening those rooms for tenants because the city has conflicting standards and requirements regarding electrical power upgrades. A complete lack of interdepartmental coordination has led to those 94 rooms languishing in downtown Los Angeles while homelessness continues to plague the city.
(m)According to the Terner Center, the City of San Diego has implemented major reforms to its housing development processes, including wider latitude for ministerial approvals, dedicated project managers, and mandatory coordinated review. Between 2022 and 2023, and again in 2024, the number of approved permits nearly doubled as a result of these policy changes.
(n)The Terner Center further notes, By creating dedicated relationship managers and empowering staff to make decisions on an accelerated timeline via a mandatory interdepartmental review meeting, San Diego solves for a major process component of getting housing built.
(o)The RAND Corporations April 2025 report recommends that local jurisdictions do both of the following:
(1)Approve a housing development in 30 days and deem a project approved if the jurisdiction does not act in 30 days.
(2)Synchronize inspections rather than conducting them sequentially.
(p)In its final report, the Assembly Select Committee on Permitting Reform echoes both the Terner Center and the RAND Corporation by stating, there should be a project manager from the regulatory side that is as invested in the projects success as the project manager from the applicants side...They can also serve as the liaison between all the permitting entities, making sure all the parties are openly communicating about their objectives and timeframes. And, they can use their access to decision makers to ensure that the project stays on track in terms of timeframe, costs, and desired outcomes.
(q)Therefore, the Legislature declares that while there are other costs, such as land, labor, and materials that contribute to the high cost of housing development for all income levels, much of the delay caused by the approval process from start to finish could be eliminated by more efficient, timely, coordinated, and nonredundant local permitting and approval policies and practices.
SEC. 2.Section 65589.5 of the Government Code is amended to read:65589.5.(a)(1)The Legislature finds and declares all of the following:
(A)The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California.
(B)California housing has become the most expensive in the nation. The excessive cost of the states housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing.
(C)Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.
(D)Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.
(2)In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following:
(A)California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the states environmental and climate objectives.
(B)While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor.
(C)The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability.
(D)According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025.
(E)Californias overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of Californias households are able to afford the cost of housing in their local regions.
(F)Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians.
(G)The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent.
(H)When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees.
(I)An additional consequence of the states cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. Californias cumulative housing shortfall therefore has not only national but international environmental consequences.
(J)Californias housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section.
(K)The Legislatures intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of Californias communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled.
(L)It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.
(3)It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently.
(4)It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments.
(b)It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d).
(c)The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas.
(d)For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
(1)The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards.
(2)The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety:
(A)Inconsistency with the zoning ordinance or general plan land use designation.
(B)The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
(3)The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.
(4)The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project.
(5)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation as specified in any element of the general plan.
(A)This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete.
(B)If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583.
(6)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builders remedy project.
(e)Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)(1)Except as provided in paragraphs (7) and (9) of this subdivision, and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdictions share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a projects eligibility for a density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915.
(2)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdictions need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project.
(3)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter.
(4)For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity.
(5)For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter.
(6)(A)For purposes of this section, no plan, entitlement, or permit that has been approved by a local utility or agency shall be overturned or revised by a subsequent utility or agency unless the development proponent of the project makes a material change to the project that a reasonable person would conclude justifies a change in the previously approved plan, entitlement, or permit.
(B)This paragraph does not apply to the California Coastal Commission, a special district, or any other entity that is not under the jurisdiction of a city, county, or city and county.
(7)Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builders remedy project:
(A)A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. If the local agency has no general plan designation or zoning classification that would have allowed the density and unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the projects density and unit type, and those shall apply.
(B)(i)Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following:
(I)Render the project infeasible.
(II)Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant.
(ii)The local agency shall bear the burden of proof of complying with clause (i).
(C)(i)A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915.
(ii)For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builders remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iii)A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iv)A project that dedicates units to extremely low-income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives incentives, or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915.
(v)All units dedicated to extremely low-income, low income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915.
(D)(i)The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval.
(ii)The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant.
(iii)Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose.
(E)A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builders remedy project.
(F)(i)A builders remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123.
(ii)A builders remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4.
(G)(i)(I)If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement.
(II)Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind.
(III)Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement.
(ii)Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units.
(iii)Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law.
(8)(A)For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builders remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025.
(B)Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builders remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more.
(9)A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (10).
(10)For purposes of this subdivision, objective, quantifiable, written development standards, conditions, and policies means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project.
(g)This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem.
(h)The following definitions apply for the purposes of this section:
(1)Feasible means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors.
(2)Housing development project means a use consisting of any of the following:
(A)Residential units only.
(B)Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions:
(i)A mixed-use development that meets both of the following:
(I)At least two-thirds of the new or converted square footage is designated for residential use.
(II)(ia)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging.
(ib)(Ia)Notwithstanding sub-subclause (ia), if a mixed-use project as defined in this paragraph includes a hotel, motel, bed and breakfast inn, or other transient lodging, the portion of the mixed-use project which does not include a hotel, motel, bed and breakfast inn, or other transient lodging shall be considered a housing development project.
(Ib)The local agency may separately approve the portion of the project that includes a hotel, motel, bed and breakfast inn, or other transient lodging, which shall not be eligible for any benefits conferred on a housing development project by state law, including, but not limited to to, those available to a development under Section 65913.4.
(ic)For purposes of this subclause, the term other transient lodging does not include either of the following:
(Ia)A residential hotel, as defined in Section 50519 of the Health and Safety Code.
(Ib)After the issuance of a certificate of occupancy, a residents use or marketing of a unit as short-term lodging, as defined in Section 17568.8 of the Business and Professions Code, in a manner consistent with local law.
(ii)At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following:
(I)The project includes at least 500 net new residential units.
(II)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(iii)At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following:
(I)The project includes at least 500 net new residential units.
(II)The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use.
(III)The project demolishes at least 50 percent of the existing nonresidential uses on the site.
(IV)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(C)Transitional housing or supportive housing.
(D)Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(3)(A)Housing for very low, low-, or moderate-income households means housing for lower income households, mixed-income households, or moderate-income households.
(B)Housing for lower income households means a housing development project in which 100 percent of the units, excluding managers units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(C)(i)Housing for mixed-income households means any of the following:
(I)A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code.
(II)A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to very low income households, as defined in Section 50105 of the Health and Safety Code.
(III)A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre.
(ii)All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following:
(I)The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(II)The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years.
(D)Housing for moderate-income households means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4)Area median income means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.
(5)Notwithstanding any other law, deemed complete means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete.
(6)Disapprove the housing development project includes any instance in which a local agency does any of the following:
(A)Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit.
(B)Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph.
(C)Fails to meet the time limits specified in Section 65913.3.
(D)Fails to meet the time limit specified in Section 17970.3 of the Health and Safety Code.
(E)Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met:
(i)The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100.
(ii)Within five working days of receiving the applicants written notice described in clause (i), the local agency shall post the notice on the local agencys internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code.
(iii)The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicants written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i).
(iv)Within 90 days of receipt of the applicants written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements:
(I)The findings articulate an objective basis for why the challenged course of conduct is necessary.
(II)The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing.
(v)(I)If a local agency continues the challenged course of conduct described in the applicants written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant.
(II)If an applicant challenges a local agencys course of conduct as a disapproval under this subparagraph, the local agencys written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agencys course of conduct constitutes a disapproval of the housing development project under this subparagraph.
(vi)A local agencys action in furtherance of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph.
(F)Fails to comply with Section 65905.5. For purposes of this subparagraph, a builders remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete.
(G)(i)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agencys submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist.
(ii)In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination.
(iii)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agencys submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943.
(iv)If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section.
(H)Violates subparagraph (D) or (E) of paragraph (7) of subdivision (f).
(I)Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions(d) subdivisions (d) and (e) of Section 65941.1.
(J)(i)Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(K)(i)Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(7)(A)For purposes of this section and Sections 65589.5.1 and 65589.5.2, lawful determination means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2.
(B)This paragraph shall become inoperative on January 1, 2031.
(8)Lower density includes any conditions that have the same effect or impact on the ability of the project to provide housing.
(9)Objective means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.
(10)Notwithstanding any other law, determined to be complete means that the applicant has submitted a complete application pursuant to Section 65943.
(11)Builders remedy project means a project that meets all of the following criteria:
(A)The project is a housing development project that provides housing for very low, low-, or moderate-income households.
(B)On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article.
(C)The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions:
(i)The density does not exceed the greatest of the following densities:
(I)Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(II)Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater.
(III)The density that is consistent with the density specified in the housing element.
(ii)Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following:
(I)One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(II)A very low vehicle travel area, as defined in subdivision (b) of Section 65589.5.1.
(III)A high or highest resource census tract, as identified by the latest edition of the CTCAC/HCD Opportunity Map published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development.
(D)(i)On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site.
(I)For purposes of this subparagraph, commuter rail means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares.
(II)For purposes of this subparagraph, heavy rail means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading.
(ii)On all other sites with a minimum density requirement, the density of the project shall not be less than the local agencys minimum density or one-half of the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower.
(E)The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16.
(12)Condition approval includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies.
(13)Unit type means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel.
(14)Proposed by the applicant means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses.
(i)If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development projects application is complete, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o).
(j)(1)When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(2)(A)If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows:
(i)Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units.
(ii)Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units.
(B)If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(3)For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision.
(4)For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project.
(k)(1)(A)(i)The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii):
(I)The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section.
(II)The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section.
(III)The local agency, in violation of subdivision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted.
(IV)The local agency violated a provision of this section applicable to a builders remedy project.
(ii)If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorneys fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorneys fees in either of the following instances:
(I)The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section.
(II)(ia)In a case concerning a disapproval within the meaning of subparagraph (J) or (K) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a substantial ground for difference of opinion at the time of the disapproval.
(ib)This subclause shall become inoperative on January 1, 2031.
(B)Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agencys progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households.
(C)If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency.
(D)Nothing in this section shall limit the courts inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure.
(2)For purposes of this subdivision, housing organization means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorneys fees and costs if it is the prevailing party in an action to enforce this section.
(l)If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the courts order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, bad faith includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit.
(m)(1)Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial courts order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant.
(2)(A)A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(3)(A)A disapproval within the meaning of subparagraph (K) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(n)In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioners points and authorities, (2) by the respondent with respondents points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs.
(o)(1)Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted.
(2)Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances:
(A)In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction.
(B)A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
(C)Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(D)The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph:
(i)Affordable housing project means a housing development that satisfies both of the following requirements:
(I)Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915.
(II)All of the units within the development, excluding managers units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code.
(ii)Final approval means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met:
(I)The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed.
(II)If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project.
(E)The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided. For purposes of this subdivision, square footage of construction means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations).
(3)This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted.
(4)For purposes of this subdivision, ordinances, policies, and standards includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions.
(5)This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section.
(6)This subdivision shall not restrict the authority of a public agency or local agency to require mitigation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(7)With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing.
(p)(1)Upon any motion for an award of attorneys fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agencys approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agencys approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorneys fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2.
(2)This subdivision shall become inoperative on January 1, 2031.
(q)This section shall be known, and may be cited, as the Housing Accountability Act.
(r)The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 3.Section 65589.9 of the Government Code is amended to read:65589.9.(a)It is the intent of the Legislature to create incentives for jurisdictions that are compliant with housing element requirements and have enacted prohousing local policies. It is the intent of the Legislature that these incentives be in the form of additional points or other preference in the scoring of competitive housing and infrastructure programs. It is the intent of the Legislature that, in adopting regulations related to prohousing local policy criteria, the department shall create criteria that consider the needs of rural, suburban, and urban jurisdictions and how those criteria may differ in those areas.
(b)(1)For award cycles commenced after July 1, 2021, qualified jurisdictions shall be awarded additional points or preference in the scoring of program applications for the following programs:
(A)The Affordable Housing and Sustainable Communities Program established by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code.
(B)The Transformative Climate Communities Program established by Part 4 (commencing with Section 75240) of Division 44 of the Public Resources Code.
(C)The qualifying infill area portion of the Infill Incentive Grant Program of 2007 established by Section 53545.13 of the Health and Safety Code.
(D)The qualifying infill area and catalytic qualifying infill area portions of the Infill Infrastructure Grant Program of 2019 established by Section 53559 of the Health and Safety Code.
(E)Additional bonus points may be awarded to other state programs when already allowable under state law.
(2)For purposes of paragraph (1), qualified jurisdiction means a jurisdiction that has adopted a housing element that has been found by the department to be in substantial compliance with the requirements of this article pursuant to Section 65585, and that meets either of the following conditions:
(A)Has been designated prohousing pursuant to subdivision (c) based on their adoption of prohousing local policies.
(B)For award cycles commenced after July 1, 2027, has been identified as a housing development expediter.
(c)(1)The department shall designate jurisdictions as prohousing pursuant to the permanent regulations adopted pursuant to subdivision (d) and report these designations to the Office of Land Use and Climate Innovation, and any other applicable agency or department, annually and upon request.
(2)(A)Beginning with the seventh housing element cycle, the department shall, upon request by a small rural jurisdiction, to the extent feasible, evaluate materials from the small rural jurisdictions housing element submission, pursuant to Section 65585, for evidence of prohousing local policies in order to minimize the need for jurisdictions to submit supplementary documentation.
(B)The department shall only conduct the evaluation described in subparagraph (A) for small rural jurisdictions that have a compliant housing element.
(3)(A)The department shall not require small rural jurisdictions to renew their prohousing designations for at least four years.
(B)This paragraph shall not be construed to limit the authority of the department to revoke a jurisdictions prohousing designation.
(4)Any additional points or preferences awarded for a prohousing local policy described in subparagraphs (L) to (N), inclusive, of paragraph (4) of subdivision (g) shall not exceed the minimum value of points or preferences awarded for a prohousing local policy that directly relates to the planning, approval, or construction of housing.
(d)(1)By July 1, 2021, the department, in collaboration with stakeholders, shall adopt emergency regulations to implement this section.
(2)Notwithstanding Section 11346.1, the emergency regulations adopted pursuant to this subdivision shall remain in effect until the date that permanent regulations to implement this section become effective.
(e)On or before January 1, 2021, and annually thereafter, the department shall publish on its internet website the list of programs included under subdivision (b).
(f)The department shall develop a housing development benchmark to determine whether a jurisdiction is a housing development expediter, as defined in this section. The benchmark shall be based on specific, objective, and measurable factors.
(g)For purposes of this section, the following definitions shall apply:
(1)Adaptive reuse shall have the same meaning as in Section 53559.1 of the Health and Safety Code.
(2)Compliant housing element means an adopted housing element that has been found to be in substantial compliance with the requirements of this article by the department pursuant to Section 65585.
(3)Housing development expediter means a jurisdiction that develops housing at a pace that demonstrably increases the number of single-family homes and multifamily residential buildings in the jurisdiction in the 12-month period prior to its designation as prohousing.
(4)Prohousing local policies means policies that facilitate the planning, approval, or construction of housing, or policies that keep people housed. These policies may include, but are not limited to, the following:
(A)Local financial incentives for housing, including, but not limited to, establishing a local housing trust fund.
(B)Reduced parking requirements for sites that are zoned for residential development.
(C)Adoption of zoning allowing for use by right for residential and mixed-use development.
(D)Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing regional housing need allocation for the current housing element cycle.
(E)Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Article 2 (commencing with Section 66314) of Chapter 13, as determined by the department.
(F)Reduction of permit processing time.
(G)Creation of objective development standards.
(H)Reduction of development impact fees.
(I)Establishment of a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.
(J)Preservation of affordable housing units through the extension of existing project-based rental assistance covenants to avoid the displacement of affected tenants and a reduction in available affordable housing units.
(K)Facilitation of the conversion or redevelopment of commercial properties into housing, including the adoption of adaptive reuse ordinances or other mechanisms that reduce barriers for these conversions.
(L)A safe parking program that provides safe parking locations and options for individuals and families living in their vehicles and that does all of the following:
(i)Provides a bathroom facility and onsite security.
(ii)Establishes an application or enrollment process for the program that may include a background check requirement.
(iii)Establishes rules and regulations for the program.
(M)A safe camping program that provides safe camping locations and options for individuals and families experiencing unsheltered homelessness.
(N)Adoption of ordinances, processes, or other mechanisms that expedite, or remove barriers to, the approval of any of the following:
(i)Low-barrier navigation centers beyond the requirements in Article 12 (commencing with Section 65660).
(ii)Emergency shelters beyond the requirements in Section 65583.
(iii)Supportive housing beyond the requirements in Article 11 (commencing with Section 65650).
(5)Small rural jurisdiction means either of the following:
(A)A city with a population of fewer than 25,000 persons.
(B)A county with a population of fewer than 200,000 persons.
SEC. 4.Section 65943.3 is added to the Government Code, to read:65943.3.(a)(1)Once a city, county, or city and county with a population of 250,000 or more has received a development application, the city, county, or city and county, as applicable, shall assign a project development director to the project.
(2)For purposes of paragraph (1), population numbers shall be based on data from the most recent decennial United States Census. Census and for a county shall only apply to the unincorporated portion of the county.
(b)The project development director shall oversee the project until the project is completed and has received a certificate of occupancy.
(c)The responsibilities of the project development director shall include, but are not limited to, all of the following:
(1)Monitor compliance with all state and local laws, regulations, and policies relative to the development and construction of the project.
(2)Coordinate the local and state responsibilities of every local agency involved at each stage of the development and construction of the project.
(3)Act as the central point of contact between the local jurisdiction and the project applicant.
(4)Mediate and resolve any conflict among and between local agencies and utilities relative to any obligation or requirement imposed on the project.
(5)Mediate and resolve any conflict between a local agency or utility and the project applicant relative to any obligation or requirement imposed on the project.
(6)Ensure, to the extent feasible and consistent with existing law, that inspections are scheduled in a manner that is synchronized rather than sequential.
(d)If the project development director can no longer fulfill the responsibilities for a specific project for reasons that are out of the control of the local jurisdiction, the local jurisdiction shall do everything in its power to assign a person to fulfill those responsibilities as soon as possible and shall not be held responsible for any resulting delay in the project, provided that the person is assigned within a reasonable timeframe.
(d)(e)(1)Once the city, county, or city and county has approved the project application and the project enters the construction phase, the city, county, or city and county shall assign a lead inspector to coordinate each inspection required of the project.
(2)The lead inspector shall coordinate with the project development director in order to ensure, to the extent feasible, that all inspections are synchronized and expedited and that any conflict between and among local agencies and utilities or the project applicant is resolved expeditiously.
(3)This subdivision shall only apply to a project that is expected to cost more than ten million dollars ($10,000,000).
SEC. 5.Section 65950 of the Government Code is amended to read:65950.(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)Ninety One hundred eighty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c). housing development project.
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c) housing development project and all of the following conditions are met:
(A)At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c) housing development project and all of the following conditions are met:
(A)At least 90 percent of the units in the development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(5)Thirty Sixty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(6)Thirty Sixty days from the determination by the lead agency that the development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the development project is exempt from that act. act, except it shall be 30 days if it is a housing development project.
(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, thirty 60 days from the date of receipt of a complete application if the development project is subject to ministerial review by the public agency. agency, except it shall be 30 days if it is a housing development project.
(8)If a development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of paragraphs (2) and (3) of subdivision (a) and Section 65952, development project means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.(c)For purposes of this section, housing development project has the same definition as in paragraph (3) of subdivision (b) of Section 65905.5.
(d)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 6.Section 50411 is added to the Health and Safety Code, to read:50411.(a)The director, in consultation with the Governors Office of Land Use and Climate Innovation, shall establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing. The recommendations may include, but are not limited to, proposals for amendments to state law to achieve the same objective.
(b)The director shall ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.
SEC. 7.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The Legislature finds and declares all of the following:
(a)According to the Department of Housing and Community Development, the state needs to build 2,500,000 homes by 2030. However, by any measure, the state is substantially behind this goal. The department reports, During the last ten years, housing production averaged fewer than 80,000 new homes each year, and ongoing production continues to fall far below the projected need of 180,000 additional homes annually.
(b)The impediments to more robust housing development are manifold, including increased cost of construction materials, labor costs, interest rates, and procedural logjams.
(c)Despite dozens of laws enacted in recent years to spur housing developmenta few too recent to measure their impacthousing construction continues to slow-walk its way toward achieving state and local development goals.
(d)Realtor.coms recent report on housing affordability and construction across all 50 states gave California an F.
(e)According to the Employment Development Department, only 94,704 housing construction permits were pulled in 2024, a 17-percent decrease since 2021. The United States Census Bureau reports that through August of 2025, only 67,502 permits have been pulled in California, substantially fewer than Florida and Texas and equivalent to North Carolina.
(f)Multifamily housing permits, which are permits for five units or more, plummeted by 31 percent from 52,772 in 2022 to 36,085 in 2024, the last full year of United States Census Bureau data.
(g)According to the Metropolitan Transportation Commission, housing production in the Bay Area in 2024 was 12 percent lower than the average over the previous five years. According to the Los Angeles Department of Building and Safety, apartment units approved by the City of Los Angeles dropped 45 percent over the previous five years.
(h)According to an April 25, 2025, article from The San Francisco Standard, the City and County of San Francisco has achieved only 9 percent of its goal of authorizing 82,000 housing units by January 2031. In order to reach its goal, it must authorize 12,800 housing units each year for the next five years. Last year, less than 1,000 housing units were authorized.
(i)The RAND Corporation reports that the cost per unit in a multifamily development in California is $430,000, with the biggest thing driving up California apartment costs? Time. The time to produce a unit from start to finish is over four years. By comparison to multifamily housing development in Texas, [i]t takes twice as long to gain project approvals and the construction timeline is 1.5 times longer. That means land costs must be carried for longer, equipment and labor are on jobsites longer, and that loans are taken out for a longer term, and so on.
(j)The development cost per unit ranges from $730,000 in the San Francisco and Los Angeles areas to $575,000 in the San Diego area.
(k)The policies and practices employed by local jurisdictions at every step in the development approval process are often a major contributor to the housing construction time problem.
(1)The Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code) requires that a development project be approved by the city within 90 or 180 days, depending on the circumstances, from the date the development project application has been approved.
(2)However, there is no similar requirement regarding the approval of the application, so a city can take from one to five years to approve the application before the Permit Streamlining Act is applicable.
(3)Furthermore, there are no requirements for coordinating and expediting the process within the relevant local agencies.
(l)In two telling examples in the City of Los Angeles:
(1)A 99-year-old building was planned to be converted into a single-room occupancy housing project in downtown Los Angeles. The developer and the city had reached an agreement on the structure of the building, and the developer was ready to move forward. At the last minute, some agencies within the city imposed new requirements regarding structural improvements and fortifications that other city agencies did not believe were necessary. Because these new requirements are prohibitively expensive, the project remains stalled while the city is deprived of 231 rooms that would house people who are homeless or at risk of being homeless.
(2)An 1897 building was renovated with 94 rooms ready for occupancy to house persons who are homeless or at risk of being homeless. For more than four years, the city has stood in the way of opening those rooms for tenants because the city has conflicting standards and requirements regarding electrical power upgrades. A complete lack of interdepartmental coordination has led to those 94 rooms languishing in downtown Los Angeles while homelessness continues to plague the city.
(m)According to the Terner Center, the City of San Diego has implemented major reforms to its housing development processes, including wider latitude for ministerial approvals, dedicated project managers, and mandatory coordinated review. Between 2022 and 2023, and again in 2024, the number of approved permits nearly doubled as a result of these policy changes.
(n)The Terner Center further notes, By creating dedicated relationship managers and empowering staff to make decisions on an accelerated timeline via a mandatory interdepartmental review meeting, San Diego solves for a major process component of getting housing built.
(o)The RAND Corporations April 2025 report recommends that local jurisdictions do both of the following:
(1)Approve a housing development in 30 days and deem a project approved if the jurisdiction does not act in 30 days.
(2)Synchronize inspections rather than conducting them sequentially.
(p)In its final report, the Assembly Select Committee on Permitting Reform echoes both the Terner Center and the RAND Corporation by stating, there should be a project manager from the regulatory side that is as invested in the projects success as the project manager from the applicants side...They can also serve as the liaison between all the permitting entities, making sure all the parties are openly communicating about their objectives and timeframes. And, they can use their access to decision makers to ensure that the project stays on track in terms of timeframe, costs, and desired outcomes.
(q)Therefore, the Legislature declares that while there are other costs, such as land, labor, and materials that contribute to the high cost of housing development for all income levels, much of the delay caused by the approval process from start to finish could be eliminated by more efficient, timely, coordinated, and nonredundant local permitting and approval policies and practices.
SEC. 2.Section 65589.5 of the Government Code is amended to read:65589.5.(a)(1)The Legislature finds and declares all of the following:
(A)The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California.
(B)California housing has become the most expensive in the nation. The excessive cost of the states housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing.
(C)Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.
(D)Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.
(2)In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following:
(A)California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the states environmental and climate objectives.
(B)While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor.
(C)The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability.
(D)According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025.
(E)Californias overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of Californias households are able to afford the cost of housing in their local regions.
(F)Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians.
(G)The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent.
(H)When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees.
(I)An additional consequence of the states cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. Californias cumulative housing shortfall therefore has not only national but international environmental consequences.
(J)Californias housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section.
(K)The Legislatures intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of Californias communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled.
(L)It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.
(3)It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently.
(4)It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments.
(b)It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d).
(c)The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas.
(d)For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
(1)The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards.
(2)The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety:
(A)Inconsistency with the zoning ordinance or general plan land use designation.
(B)The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
(3)The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.
(4)The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project.
(5)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation as specified in any element of the general plan.
(A)This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete.
(B)If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583.
(6)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builders remedy project.
(e)Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)(1)Except as provided in paragraphs (6) and (8) (7) and (9) of this subdivision, and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdictions share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a projects eligibility for a density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915.
(2)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdictions need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project.
(3)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter.
(4)For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity.
(5)For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter.
(6)For purposes of this section, no plan, entitlement, or permit that has been approved by a local utility or agency shall be overturned or revised by a subsequent utility or agency unless the development proponent of the project makes a material change to the project that a reasonable person would conclude justifies a change in the previously approved plan, entitlement, or permit.
(6)(7)Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builders remedy project:
(A)A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. If the local agency has no general plan designation or zoning classification that would have allowed the density and unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the projects density and unit type, and those shall apply.
(B)(i)Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following:
(I)Render the project infeasible.
(II)Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant.
(ii)The local agency shall bear the burden of proof of complying with clause (i).
(C)(i)A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915.
(ii)For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builders remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iii)A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iv)A project that dedicates units to extremely low-income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915.
(v)All units dedicated to extremely low-income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915.
(D)(i)The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval.
(ii)The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant.
(iii)Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose.
(E)A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builders remedy project.
(F)(i)A builders remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123.
(ii)A builders remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4.
(G)(i)(I)If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement.
(II)Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind.
(III)Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement.
(ii)Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units.
(iii)Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law.
(7)(8)(A)For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builders remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025.
(B)Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builders remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more.
(8)(9)A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9). (10).
(9)(10)For purposes of this subdivision, objective, quantifiable, written development standards, conditions, and policies means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project.
(g)This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem.
(h)The following definitions apply for the purposes of this section:
(1)Feasible means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors.
(2)Housing development project means a use consisting of any of the following:
(A)Residential units only.
(B)Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions:
(i)A mixed-use development that meets both of the following:
(I)At least two-thirds of the new or converted square footage is designated for residential use.
(II)(ia)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging.
(ib)(Ia)Notwithstanding sub-subclause (ia), if a mixed-use project as defined in this paragraph includes a hotel, motel, bed and breakfast inn, or other transient lodging, the portion of the mixed-use project which does not include a hotel, motel, bed and breakfast inn, or other transient lodging shall be considered a housing development project.
(Ib)The local agency may separately approve the portion of the project that includes a hotel, motel, bed and breakfast inn, or other transient lodging, which shall not be eligible for any benefits conferred on a housing development project by state law, including, but not limited to those available to a development under Section 65913.4.
(ic)For purposes of this subclause, the term other transient lodging does not include either of the following:
(Ia)A residential hotel, as defined in Section 50519 of the Health and Safety Code.
(Ib)After the issuance of a certificate of occupancy, a residents use or marketing of a unit as short-term lodging, as defined in Section 17568.8 of the Business and Professions Code, in a manner consistent with local law.
(ii)At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following:
(I)The project includes at least 500 net new residential units.
(II)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(iii)At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following:
(I)The project includes at least 500 net new residential units.
(II)The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use.
(III)The project demolishes at least 50 percent of the existing nonresidential uses on the site.
(IV)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(C)Transitional housing or supportive housing.
(D)Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(3)(A)Housing for very low, low-, or moderate-income households means housing for lower income households, mixed-income households, or moderate-income households.
(B)Housing for lower income households means a housing development project in which 100 percent of the units, excluding managers units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(C)(i)Housing for mixed-income households means any of the following:
(I)A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code.
(II)A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to very low income households, as defined in Section 50105 of the Health and Safety Code.
(III)A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre.
(ii)All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following:
(I)The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(II)The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years.
(D)Housing for moderate-income households means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4)Area median income means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.
(5)Notwithstanding any other law, deemed complete means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete.
(6)Disapprove the housing development project includes any instance in which a local agency does any of the following:
(A)Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit.
(B)Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph.
(C)Fails to meet the time limits specified in Section 65913.3.
(D)Fails to meet the time limit specified in Section 17970.3 of the Health and Safety Code.
(E)Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met:
(i)The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100.
(ii)Within five working days of receiving the applicants written notice described in clause (i), the local agency shall post the notice on the local agencys internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code.
(iii)The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicants written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i).
(iv)Within 90 days of receipt of the applicants written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements:
(I)The findings articulate an objective basis for why the challenged course of conduct is necessary.
(II)The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing.
(v)(I)If a local agency continues the challenged course of conduct described in the applicants written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant.
(II)If an applicant challenges a local agencys course of conduct as a disapproval under this subparagraph, the local agencys written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agencys course of conduct constitutes a disapproval of the housing development project under this subparagraph.
(vi)A local agencys action in furtherance of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph.
(F)Fails to comply with Section 65905.5. For purposes of this subparagraph, a builders remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete.
(G)(i)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agencys submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist.
(ii)In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination.
(iii)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agencys submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943.
(iv)If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section.
(H)Violates subparagraph (D) or (E) of paragraph (6) (7) of subdivision (f).
(I)Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions(d) and (e) of Section 65941.1.
(J)(i)Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(K)(i)Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(7)(A)For purposes of this section and Sections 65589.5.1 and 65589.5.2, lawful determination means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2.
(B)This paragraph shall become inoperative on January 1, 2031.
(8)Lower density includes any conditions that have the same effect or impact on the ability of the project to provide housing.
(9)Objective means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.
(10)Notwithstanding any other law, determined to be complete means that the applicant has submitted a complete application pursuant to Section 65943.
(11)Builders remedy project means a project that meets all of the following criteria:
(A)The project is a housing development project that provides housing for very low, low-, or moderate-income households.
(B)On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article.
(C)The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions:
(i)The density does not exceed the greatest of the following densities:
(I)Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(II)Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater.
(III)The density that is consistent with the density specified in the housing element.
(ii)Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following:
(I)One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(II)A very low vehicle travel area, as defined in subdivision (b) of Section 65589.5.1.
(III)A high or highest resource census tract, as identified by the latest edition of the CTCAC/HCD Opportunity Map published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development.
(D)(i)On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site.
(I)For purposes of this subparagraph, commuter rail means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares.
(II)For purposes of this subparagraph, heavy rail means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading.
(ii)On all other sites with a minimum density requirement, the density of the project shall not be less than the local agencys minimum density or one-half of the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower.
(E)The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16.
(12)Condition approval includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies.
(13)Unit type means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel.
(14)Proposed by the applicant means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses.
(i)If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development projects application is complete, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o).
(j)(1)When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(2)(A)If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows:
(i)Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units.
(ii)Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units.
(B)If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(3)For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision.
(4)For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project.
(k)(1)(A)(i)The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii):
(I)The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section.
(II)The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section.
(III)The local agency, in violation of subdivision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted.
(IV)The local agency violated a provision of this section applicable to a builders remedy project.
(ii)If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorneys fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorneys fees in either of the following instances:
(I)The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section.
(II)(ia)In a case concerning a disapproval within the meaning of subparagraph (J) or (K) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a substantial ground for difference of opinion at the time of the disapproval.
(ib)This subclause shall become inoperative on January 1, 2031.
(B)Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agencys progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households.
(C)If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency.
(D)Nothing in this section shall limit the courts inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure.
(2)For purposes of this subdivision, housing organization means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorneys fees and costs if it is the prevailing party in an action to enforce this section.
(l)If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the courts order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, bad faith includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit.
(m)(1)Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial courts order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant.
(2)(A)A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(3)(A)A disapproval within the meaning of subparagraph (K) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(n)In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioners points and authorities, (2) by the respondent with respondents points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs.
(o)(1)Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted.
(2)Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances:
(A)In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction.
(B)A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
(C)Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(D)The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph:
(i)Affordable housing project means a housing development that satisfies both of the following requirements:
(I)Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915.
(II)All of the units within the development, excluding managers units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code.
(ii)Final approval means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met:
(I)The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed.
(II)If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project.
(E)The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided. For purposes of this subdivision, square footage of construction means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations).
(3)This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted.
(4)For purposes of this subdivision, ordinances, policies, and standards includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions.
(5)This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section.
(6)This subdivision shall not restrict the authority of a public agency or local agency to require mitigation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(7)With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing.
(p)(1)Upon any motion for an award of attorneys fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agencys approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agencys approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorneys fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2.
(2)This subdivision shall become inoperative on January 1, 2031.
(q)This section shall be known, and may be cited, as the Housing Accountability Act.
(r)The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 3.Section 65589.9 of the Government Code is amended to read:65589.9.(a)It is the intent of the Legislature to create incentives for jurisdictions that are compliant with housing element requirements and have enacted prohousing local policies. It is the intent of the Legislature that these incentives be in the form of additional points or other preference in the scoring of competitive housing and infrastructure programs. It is the intent of the Legislature that, in adopting regulations related to prohousing local policy criteria, the department shall create criteria that consider the needs of rural, suburban, and urban jurisdictions and how those criteria may differ in those areas.
(b)(1)For award cycles commenced after July 1, 2021, qualified jurisdictions that have adopted a housing element that has been found by the department to be in substantial compliance with the requirements of this article pursuant to Section 65585, and that have been designated prohousing pursuant to subdivision (c) based upon their adoption of prohousing local policies, shall be awarded additional points or preference in the scoring of program applications for the following programs:
(1)(A)The Affordable Housing and Sustainable Communities Program established by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code.
(2)(B)The Transformative Climate Communities Program established by Part 4 (commencing with Section 75240) of Division 44 of the Public Resources Code.
(3)(C)The qualifying infill area portion of the Infill Incentive Grant Program of 2007 established by Section 53545.13 of the Health and Safety Code.
(4)(D)The qualifying infill area and catalytic qualifying infill area portions of the Infill Infrastructure Grant Program of 2019 established by Section 53559 of the Health and Safety Code.
(5)(E)Additional bonus points may be awarded to other state programs when already allowable under state law.
(2)For purposes of paragraph (1), qualified jurisdiction means a jurisdiction that has adopted a housing element that has been found by the department to be in substantial compliance with the requirements of this article pursuant to Section 65585, and that meets either of the following conditions:
(A)Has been designated prohousing pursuant to subdivision (c) based on their adoption of prohousing local policies.
(B)For award cycles commenced after July 1, 2027, has been identified as a housing development expediter.
(c)(1)The department shall designate jurisdictions as prohousing pursuant to the permanent regulations adopted pursuant to subdivision (d) and report these designations to the Office of Land Use and Climate Innovation, and any other applicable agency or department, annually and upon request.
(2)(A)Beginning with the seventh housing element cycle, the department shall, upon request by a small rural jurisdiction, to the extent feasible, evaluate materials from the small rural jurisdictions housing element submission, pursuant to Section 65585, for evidence of prohousing local policies in order to minimize the need for jurisdictions to submit supplementary documentation.
(B)The department shall only conduct the evaluation described in subparagraph (A) for small rural jurisdictions that have a compliant housing element.
(3)(A)The department shall not require small rural jurisdictions to renew their prohousing designations for at least four years.
(B)This paragraph shall not be construed to limit the authority of the department to revoke a jurisdictions prohousing designation.
(4)Any additional points or preferences awarded for a prohousing local policy described in subparagraphs (L) to (N), inclusive, of paragraph (3) (4) of subdivision (f) (g) shall not exceed the minimum value of points or preferences awarded for a prohousing local policy that directly relates to the planning, approval, or construction of housing.
(d)(1)By July 1, 2021, the department, in collaboration with stakeholders, shall adopt emergency regulations to implement this section.
(2)Notwithstanding Section 11346.1, the emergency regulations adopted pursuant to this subdivision shall remain in effect until the date that permanent regulations to implement this section become effective.
(e)On or before January 1, 2021, and annually thereafter, the department shall publish on its internet website the list of programs included under subdivision (b).
(f)The department shall develop a housing development benchmark to determine whether a jurisdiction is a housing development expediter, as defined in this section.
(f)(g)For purposes of this section, the following definitions shall apply:
(1)Adaptive reuse shall have the same meaning as in Section 53559.1 of the Health and Safety Code.
(2)Compliant housing element means an adopted housing element that has been found to be in substantial compliance with the requirements of this article by the department pursuant to Section 65585.
(3)Housing development expediter means a jurisdiction that develops housing at a pace that demonstrably increases the number of single-family homes and multifamily residential buildings in the jurisdiction in the 12-month period prior to its designation as prohousing.
(3)(4)Prohousing local policies means policies that facilitate the planning, approval, or construction of housing, or policies that keep people housed. These policies may include, but are not limited to, the following:
(A)Local financial incentives for housing, including, but not limited to, establishing a local housing trust fund.
(B)Reduced parking requirements for sites that are zoned for residential development.
(C)Adoption of zoning allowing for use by right for residential and mixed-use development.
(D)Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing regional housing need allocation for the current housing element cycle.
(E)Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Article 2 (commencing with Section 66314) of Chapter 13, as determined by the department.
(F)Reduction of permit processing time.
(G)Creation of objective development standards.
(H)Reduction of development impact fees.
(I)Establishment of a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.
(J)Preservation of affordable housing units through the extension of existing project-based rental assistance covenants to avoid the displacement of affected tenants and a reduction in available affordable housing units.
(K)Facilitation of the conversion or redevelopment of commercial properties into housing, including the adoption of adaptive reuse ordinances or other mechanisms that reduce barriers for these conversions.
(L)A safe parking program that provides safe parking locations and options for individuals and families living in their vehicles and that does all of the following:
(i)Provides a bathroom facility and onsite security.
(ii)Establishes an application or enrollment process for the program that may include a background check requirement.
(iii)Establishes rules and regulations for the program.
(M)A safe camping program that provides safe camping locations and options for individuals and families experiencing unsheltered homelessness.
(N)Adoption of ordinances, processes, or other mechanisms that expedite, or remove barriers to, the approval of any of the following:
(i)Low-barrier navigation centers beyond the requirements in Article 12 (commencing with Section 65660).
(ii)Emergency shelters beyond the requirements in Section 65583.
(iii)Supportive housing beyond the requirements in Article 11 (commencing with Section 65650).
(4)(5)Small rural jurisdiction means either of the following:
(A)A city with a population of fewer than 25,000 persons.
(B)A county with a population of fewer than 200,000 persons.
SEC. 4.Section 65943.3 is added to the Government Code, to read:65943.3.(a)(1)Once a city, county, or city and county with a population of 250,000 or more has received a development application, the city, county, or city and county, as applicable, shall assign a project development director to the project.
(2)For purposes of paragraph (1), population numbers shall be based on data from the most recent decennial United States Census.
(b)The project development director shall oversee the project until the project is completed and has received a certificate of occupancy.
(c)The responsibilities of the project development director shall include, but are not limited to, all of the following:
(1)Monitor compliance with all state and local laws, regulations, and policies relative to the development and construction of the project.
(2)Coordinate the local and state responsibilities of every local agency involved at each stage of the development and construction of the project.
(3)Act as the central point of contact between the local jurisdiction and the project applicant.
(4)Mediate and resolve any conflict among and between local agencies and utilities relative to any obligation or requirement imposed on the project.
(5)Mediate and resolve any conflict between a local agency or utility and the project applicant relative to any obligation or requirement imposed on the project.
(6)Ensure, to the extent feasible and consistent with existing law, that inspections are scheduled in a manner that is synchronized rather than sequential.
(d)(1)Once the city, county, or city and county has approved the project application and the project enters the construction phase, the city, county, or city and county shall assign a lead inspector to coordinate each inspection required of the project.
(2)The lead inspector shall coordinate with the project development director in order to ensure, to the extent feasible, that all inspections are synchronized and expedited and that any conflict between and among local agencies and utilities or the project applicant is resolved expeditiously.
(3)This subdivision shall only apply to a project that is expected to cost more than ten million dollars ($10,000,000).
SEC. 5.Section 65950 of the Government Code is amended to read:65950.(a)A public agency that is the lead agency for a development project shall approve or disapprove the project within whichever of the following periods is applicable:
(1)One hundred eighty Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for the development project.
(2)Ninety Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c).
(3)Sixty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c) and all of the following conditions are met:
(A)At least 49 percent of the units in the development project are affordable to very low or low-income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for and the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Thirty days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a development project defined in subdivision (c) and all of the following conditions are met:
(A)At least 90 percent of the units in the development project are affordable to very low or extremely low income households, as defined by Sections 50105 and 50079.5 of the Health and Safety Code, respectively. Rents for the lower income units shall be set at an affordable rent, as that term is defined in Section 50053 of the Health and Safety Code, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as that term is defined in Section 50052.5 of the Health and Safety Code.
(B)Prior to the application being deemed complete for the development project pursuant to Article 3 (commencing with Section 65940), the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency, and the notice specifies the financial assistance that has been applied for or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be affordable as required pursuant to subparagraph (A).
(C)There is confirmation that the application has been made to the public agency or federal agency prior to certification of the environmental impact report.
(4)Sixty(5)Thirty days from the date of adoption by the lead agency of the negative declaration, if a negative declaration is completed and adopted for the development project.
(5)Sixty(6)Thirty days from the determination by the lead agency that the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if the project is exempt from that act.
(6)(7)Except as provided in subdivision (a) of Section 65912.114 and subdivision (a) of Section 65912.124, sixty thirty days from the date of receipt of a complete application if the project is subject to ministerial review by the public agency.
(7)(8)If a development project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) pursuant to Section 21080.66 of the Public Resources Code, 30 days from the later of the following dates:
(A)The conclusion of the process outlined in subdivision (b) of Section 21080.66 of the Public Resources Code.
(B)The expiration of the applicable time limit in paragraph (2) of subdivision (j) of Section 65589.5.
(b)This section does not preclude a project applicant and a public agency from mutually agreeing in writing to an extension of any time limit provided by this section pursuant to Section 65957.
(c)For purposes of paragraphs (2) and (3) of subdivision (a) and Section 65952, development project means a housing development project, as defined in paragraph (3) of subdivision (b) of Section 65905.5.
(d)For purposes of this section, lead agency and negative declaration have the same meaning as defined in Sections 21067 and 21064 of the Public Resources Code, respectively.
SEC. 6.Section 50411 is added to the Health and Safety Code, to read:50411.(a)The director, in consultation with the Governors Office of Land Use and Climate Innovation, shall establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways in which to expedite development of housing. The recommendations may include, but are not limited to, proposals for amendments to state law to achieve the same objective.
(b)The director shall ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.
SEC. 7.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
|
Date
|
Status
|
|---|---|
| Sep 30, 2026 | Vetoed by Governor. |
| Aug 31, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 25, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 4.). |
| Aug 25, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 4. Page 6508.). |
| Aug 25, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 25, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 35. Noes 3.). |
| Aug 4, 2026 | Read second time. Ordered to third reading. |
| Aug 3, 2026 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jul 1, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 1.) (June 30). Re-referred to Com. on APPR. |
| Jun 18, 2026 | Read second time and amended. Re-referred to Com. on HOUSING. |
| Jun 17, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on HOUSING. (Ayes 5. Noes 1.) (June 17). |
| Jun 3, 2026 | Referred to Coms. on L. GOV. and HOUSING. |
| May 27, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 26, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 3.) |
| May 26, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 3. Page 5369.) |
| May 26, 2026 | Read third time. Passed. Ordered to the Senate. |
| May 19, 2026 | Read second time. Ordered to third reading. |
| May 18, 2026 | Read second time and amended. Ordered returned to second reading. |
| May 14, 2026 | Joint Rule 62(a), file notice suspended. (Page 5030.) |
| May 14, 2026 | Joint Rule 62(a), file notice suspended. |
| May 14, 2026 | From committee: Amend, and do pass as amended. (Ayes 11. Noes 1.) (May 14). |
| May 13, 2026 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 28, 2026 | Re-referred to Com. on APPR. |
| Apr 27, 2026 | Read second time and amended. |
| Apr 23, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 1.) (April 22). |
| Apr 20, 2026 | Re-referred to Com. on H. & C.D. |
| Apr 16, 2026 | From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 8. Noes 0.) (April 15). Re-referred to Com. on H. & C.D. |
| Apr 16, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Apr 13, 2026 | Assembly Rule 56 suspended. (Page 4581.) |
| Apr 13, 2026 | Assembly Rule 56 suspended. |
| Apr 13, 2026 | (Pending re-refer to Com. on H. & C.D.) |
| Apr 8, 2026 | Re-referred to Com. on L. GOV. |
| Apr 7, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Mar 9, 2026 | Referred to Coms. on L. GOV. and H. & C.D. |
| Feb 18, 2026 | From printer. May be heard in committee March 20. |
| Feb 17, 2026 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 25, 2026 | AB 1997 Lee Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 25, 2026 | Assembly 3rd Reading AB1997 Lee By Allen | Senate Floor |
Passed |
|
| Jun 30, 2026 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Housing |
Passed |
|
| Jun 17, 2026 | Do pass as amended, but first amend, and re-refer to the Committee on [Housing] | Senate Standing Committee on Local Government |
Passed |
|
| May 26, 2026 | AB 1997 Lee Assembly Third Reading | Assembly Floor |
Passed |
|
| May 14, 2026 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2026 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Apr 15, 2026 | Do pass and be re-referred to the Committee on [Housing and Community Development] | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Advocate Association of California Water Agencies | ** Against | |
| Aids Healthcare Foundation | ** Support | |
| American Planning Association, California Chapter | ** Against | |
| Association Of California Water Agencies | ** Against | |
| California Association Of Sanitation Agencies | ** Against | |
| California Municipal Utilities Association | ** Against | |
| California Special Districts Association | ** Against | |
| California State Association of Counties (CSAC) | ** Against | |
| City of La Verne | ** Against | |
| Cucamonga Valley Water District | ** Against | |
| League Of California Cities | ** Against | |
| Rural County Representatives of California (RCRC) | ** Against | |
| Urban Counties of California (UCC) | ** Against |
GOVERNOR'S VETO
GV Bill Id:AB 1997
Author:(Lee)
As Enrolled Ver:August 27, 2026
2/3 vote
SUMMARY
Expedites the timeline for approval or disapproval of certain affordable housing development projects.
Senate Amendments
Make technical and conforming changes.
Governor's Veto Message
"This bill would require a public agency serving as the lead agency or a development project to approve or disapprove a housing development within 30 days after certifying an environmental impact report (EIR). This expedited process applies if at least 90% of the project's units are affordable to very low- or extremely low-income households and the development is seeking public financing. If the lead agency fails to act within this 30-day period, the project may be deemed approved.
"I strongly support accelerating affordable housing production. My administration and the Legislature have enacted comprehensive reforms providing qualifying housing projects with ministerial approval, CEQA exemptions and judicial streamlining, and accelerated entitlement and permitting timelines. However, this bill creates further statutory ambiguity by failing to clarify how its deadline applies to subsequent project approvals that rely on a program, master, or staged EIR. Although the broader EIR may already be certified, a subsequent project may still require additional project-specific environmental review. The bill does not clearly establish whether the regulatory clock begins upon certification of the broader EIR or after that additional project-specific review is complete. Shortening the deadline without resolving this question would create additional uncertainty for public agencies responsible for implementing the law.
"This risk is difficult to justify given the measure's limited reach. The bill applies exclusively to a narrow subset of projects — those with at least 90% of units affordable to very low- or extremely low-income households and requiring a full approve or deny the project from 60 to 30 days. Deeply affordable housing developments typically depend on multiple sources of public funding, often with their own requirements and deadlines; they need a high degree of regulatory certainty to assemble and retain financing. Moreover, most already use existing regulatory pathway that streamline or entirely bypass this review altogether. Therefore, this narrow potential benefit does not outweigh the risk that projects could be inadvertently denied or deemed approved based on unclear requirements and compressed timelines.
"Effective housing policy should provide clear, workable rules that move projects forward — not jam public agencies into making consequential decisions under uncertain statutory requirements. Unfortunately, this bill does not meet that standard.
COMMENTS
- Police Powers. Planning for and approving new development is mainly a local responsibility. The California Constitution allows cities and counties to ″make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.″ It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public – including land use authority. Cities and counties enforce this land use authority through zoning regulations, as well as through an ″entitlement process″ for obtaining discretionary as well as ministerial approvals.
The scale of the proposed development, as well as the existing environmental setting determine the degree of local review that occurs. For larger developments, the local entitlement process commonly requires multiple discretionary decisions regarding the subdivision of land, environmental review pursuant to California Environmental Quality Act (CEQA), and project review by the local agency′s legislative body (city council or county board) or by a planning commission delegated by the legislative body.
- Permit Streamlining Act. Permit Streamlining Act. The 1977 Permit Streamlining Act (PSA) requires public agencies to act fairly and promptly on applications for development permits, including housing. Public agencies must compile detailed lists of information that applicants for development projects must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being ″deemed complete.″
Once a complete application for a development has been submitted, the PSA requires public officials to act within a specific time period after completing any environmental review documents required under the CEQA, ranging from 60 to 180 days depending on the project and the environmental review required. If the public agency fails to approve or disapprove the application in the applicable time period, the application is ″deemed approved,″ and the applicant may file suit in state court to order the local government to issue the permit.
The PSA applies different requirements to ″lead agencies and ″responsible agencies. Lead agencies are the public agency with principal responsibility for carrying out or approving a project. Most often, particularly for housing projects, the lead agency is a city or county. The lead agency determines whether CEQA applies and prepares the relevant CEQA document. The timelines above apply to lead agencies.
A responsible agency is any other public agency with discretionary approval over part of the project, such as issuing a permit or license. Examples include water boards, air districts, utility providers, or agencies overseeing habitat or coastal resources. Once the lead agency has certified or adopted the CEQA document, responsible agencies must approve or disapprove qualifying projects within the longer of 180 days from the lead agency′s approval, or 180 days from the date the responsible agency accepts the application as complete. For housing development projects, a shorter PSA timeline applies:
- 90 days from the lead agency′s approval.
- 90 days from receipt of a complete application.
Most recently, AB 1007 (Rubio), Chapter 502, Statutes of 2025, shortened the period of time a responsible agency has to approve or disapprove for residential or mixed-use residential projects.
- Housing and CEQA. A project is exempt from CEQA if it is ministerial (i.e., it does not involve discretionary decisions), or if there is a specific statutory or categorical exemption that applies to the project. Statutory exemptions are created by the Legislature and apply even if a project has the potential to significantly affect the environment. In contrast, categorical exemptions, which are listed in the CEQA guidelines, generally do not apply if there are significant environmental impacts associated with the project, including if (a) there is a reasonable possibility of a significant effect on the environment due to unusual circumstances; (b) significant cumulative impacts from projects of the same type will result; or (c) the project will have impacts on a uniquely sensitive environment.
Affordable housing, as a subset of housing, could be eligible for any of these exemptions so long as the project meets the specific criteria for a given exemption. These exemptions come with their own eligibility criteria, including that projects meet certain urban density and size requirements, avoid impacts on sensitive habitat, wildlife, and the environment, and are not on sensitive sites.
According to the Author
"AB 1997 reduces from 60 days down to 30 days the period of time a lead agency has to approve or deny an affordable housing project's environmental impact report (EIR) after the lead agency certifies the EIR. This faster timeline only applies to projects that are 90% affordable to very-low or extremely-low income households, and requires the project applicant to have provided written notice to the agency specifics about the project's financing. This narrow and very focused streamlining will move 90% affordable housing projects faster."
Arguments in Support
The AIDS Healthcare Foundation, the sponsor of the bill, writes in support, "In a report released in February 2025, RAND states 'the biggest things driving up California apartment costs? Time.' The time to produce a unit from start to finish is over four years. By comparison to multifamily housing development in Texas, 'It takes twice as long to gain project approvals and the construction timeline is 1.5 times longer. That means land costs must be carried for longer, equipment and labor are on jobsites longer, and that loans are taken out for a longer term, and so on.
"RAND's report recommends that local jurisdictions approve a housing development in 30 days, deeming a project approved if the jurisdiction does not act in 30 days, and synchronize inspections rather than conducting them sequentially…
"AB 1997 seeks to build on these thoughtful findings and recommendations from housing development experts to effect reforms statewide. The Permit Streamlining Act establishes deadlines for granting permits for housing developments once the environmental approval process has been completed. Under this bill, a new deadline of 30 days would be instituted for housing projects that provide 90% of their units for very low and extremely low-income households."
Arguments in Opposition
The City of La Verne writes in opposition, "The City of La Verne supports efforts to increase the production of affordable housing, particularly for very low- and extremely low-income households. However, AB 1997 would impose an unreasonably compressed approval timeline immediately after completion of the environmental review process, regardless of project complexity, outstanding technical issues, public input, or the need for local decision-makers to carefully consider conditions of approval, mitigation measures, infrastructure impacts, and community-specific concerns.
"… Certification of an EIR does not mean a project is automatically ready for approval. Local agencies must still evaluate the full record, consider appropriate findings, ensure mitigation measures are enforceable, and determine whether the project can be approved in a manner that protects public health, safety, and welfare.
"AB 1997 would undermine this necessary local review by forcing cities to act within 30 days or risk procedural conflict, even when additional time may be needed to address unresolved concerns. For smaller cities such as La Verne, this mandate is particularly problematic. City staff often manage complex development applications while also administering essential municipal services with limited planning, legal, engineering, and public works resources. Compressing the post-EIR decision-making process places additional strain on local governments and increases the risk of rushed decisions, incomplete analysis, and avoidable litigation."
FISCAL COMMENTS
According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, the bill has negligible state costs.
VOTES
ASM LOCAL GOVERNMENT: 8-0-2
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
ABS, ABST OR NV: Ta, Johnson
ASM HOUSING AND COMMUNITY DEVELOPMENT: 11-1-0
YES: Haney, Patterson, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Ta, Wicks, Wilson
NO: Tangipa
ASM APPROPRIATIONS: 11-1-3
YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Tangipa
ABS, ABST OR NV: Hoover, Dixon, Ta
ASSEMBLY FLOOR: 71-3-6
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lee, Lowenthal, Macedo, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO: Irwin, Sanchez, Tangipa
ABS, ABST OR NV: Boerner, Dixon, Johnson, Lackey, Muratsuchi, Celeste Rodriguez
SENATE FLOOR: 35-3-2
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Hurtado, Laird, Limón, McGuire, McNerney, Menjivar, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Jones, Seyarto
ABS, ABST OR NV: Grove, Niello
ASSEMBLY FLOOR: 71-4-4
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lee, Lowenthal, Macedo, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO: Castillo, Johnson, Sanchez, Tangipa
ABS, ABST OR NV: Dixon, Irwin, Lackey, McKinnor
UPDATED
VERSION: August 27, 2026
CONSULTANT: Linda Rios / L. GOV. / (916) 319-3958 FN: 0004652
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1997
Author:(Lee)
As Amended Ver:June 18, 2026
Majority vote
SUMMARY
Expedites the timeline for approval or disapproval of certain affordable housing development projects.
Senate Amendments
Make technical and conforming changes.
COMMENTS
- Police Powers. Planning for and approving new development is mainly a local responsibility. The California Constitution allows cities and counties to ″make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.″ It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public – including land use authority. Cities and counties enforce this land use authority through zoning regulations, as well as through an ″entitlement process″ for obtaining discretionary as well as ministerial approvals.
The scale of the proposed development, as well as the existing environmental setting determine the degree of local review that occurs. For larger developments, the local entitlement process commonly requires multiple discretionary decisions regarding the subdivision of land, environmental review pursuant to CEQA, and project review by the local agency′s legislative body (city council or county board) or by a planning commission delegated by the legislative body.
- Permit Streamlining Act. Permit Streamlining Act. The 1977 Permit Streamlining Act (PSA) requires public agencies to act fairly and promptly on applications for development permits, including housing. Public agencies must compile detailed lists of information that applicants for development projects must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being ″deemed complete.″
Once a complete application for a development has been submitted, the PSA requires public officials to act within a specific time period after completing any environmental review documents required under the California Environmental Quality Act (CEQA), ranging from 60 to 180 days depending on the project and the environmental review required. If the public agency fails to approve or disapprove the application in the applicable time period, the application is ″deemed approved,″ and the applicant may file suit in state court to order the local government to issue the permit.
The PSA applies different requirements to ″lead agencies and ″responsible agencies. Lead agencies are the public agency with principal responsibility for carrying out or approving a project. Most often, particularly for housing projects, the lead agency is a city or county. The lead agency determines whether CEQA applies and prepares the relevant CEQA document. The timelines above apply to lead agencies.
A responsible agency is any other public agency with discretionary approval over part of the project, such as issuing a permit or license. Examples include water boards, air districts, utility providers, or agencies overseeing habitat or coastal resources. Once the lead agency has certified or adopted the CEQA document, responsible agencies must approve or disapprove qualifying projects within the longer of 180 days from the lead agency′s approval, or 180 days from the date the responsible agency accepts the application as complete. For housing development projects, a shorter PSA timeline applies:
- 90 days from the lead agency′s approval.
- 90 days from receipt of a complete application.
Most recently, AB 1007 (Rubio), Chapter 502, Statutes of 2025, shortened the period of time a responsible agency has to approve or disapprove for residential or mixed-use residential projects.
- Housing and CEQA. A project is exempt from CEQA if it is ministerial (i.e., it does not involve discretionary decisions), or if there is a specific statutory or categorical exemption that applies to the project. Statutory exemptions are created by the Legislature and apply even if a project has the potential to significantly affect the environment. In contrast, categorical exemptions, which are listed in the CEQA guidelines, generally do not apply if there are significant environmental impacts associated with the project, including if (1) there is a reasonable possibility of a significant effect on the environment due to unusual circumstances; (2) significant cumulative impacts from projects of the same type will result; or (3) the project will have impacts on a uniquely sensitive environment.
Affordable housing, as a subset of housing, could be eligible for any of these exemptions so long as the project meets the specific criteria for a given exemption. These exemptions come with their own eligibility criteria, including that projects meet certain urban density and size requirements, avoid impacts on sensitive habitat, wildlife, and the environment, and are not on sensitive sites.
According to the Author
“AB 1997 reduces from 60 days down to 30 days the period of time a lead agency has to approve or deny an affordable housing project’s environmental impact report (EIR) after the lead agency certifies the EIR. This faster timeline only applies to projects that are 90% affordable to very-low or extremely-low income households, and requires the project applicant to have provided written notice to the agency specifics about the project’s financing. This narrow and very focused streamlining will move 90% affordable housing projects faster.”
Arguments in Support
The AIDS Healthcare Foundation, the sponsor of the bill, writes in support, “In a report released in February 2025, RAND states ‘the biggest things driving up California apartment costs? Time.’ The time to produce a unit from start to finish is over four years. By comparison to multifamily housing development in Texas, ‘It takes twice as long to gain project approvals and the construction timeline is 1.5 times longer. That means land costs must be carried for longer, equipment and labor are on jobsites longer, and that loans are taken out for a longer term, and so on.’
“RAND’s report recommends that local jurisdictions approve a housing development in 30 days, deeming a project approved if the jurisdiction does not act in 30 days, and synchronize inspections rather than conducting them sequentially…
“AB 1997 seeks to build on these thoughtful findings and recommendations from housing development experts to effect reforms statewide. The Permit Streamlining Act establishes deadlines for granting permits for housing developments once the environmental approval process has been completed. Under this bill, a new deadline of 30 days would be instituted for housing projects that provide 90% of their units for very low and extremely low-income households.”
Arguments in Opposition
The City of La Verne writes in opposition, “The City of La Verne supports efforts to increase the production of affordable housing, particularly for very low- and extremely low-income households. However, AB 1997 would impose an unreasonably compressed approval timeline immediately after completion of the environmental review process, regardless of project complexity, outstanding technical issues, public input, or the need for local decision-makers to carefully consider conditions of approval, mitigation measures, infrastructure impacts, and community-specific concerns.
“… Certification of an EIR does not mean a project is automatically ready for approval. Local agencies must still evaluate the full record, consider appropriate findings, ensure mitigation measures are enforceable, and determine whether the project can be approved in a manner that protects public health, safety, and welfare.
“AB 1997 would undermine this necessary local review by forcing cities to act within 30 days or risk procedural conflict, even when additional time may be needed to address unresolved concerns. For smaller cities such as La Verne, this mandate is particularly problematic. City staff often manage complex development applications while also administering essential municipal services with limited planning, legal, engineering, and public works resources. Compressing the post-EIR decision-making process places additional strain on local governments and increases the risk of rushed decisions, incomplete analysis, and avoidable litigation.”
FISCAL COMMENTS
According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, the bill has negligible state costs.
VOTES:
ASM LOCAL GOVERNMENT: 8-0-2
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
ABS, ABST OR NV: Ta, Johnson
ASM HOUSING AND COMMUNITY DEVELOPMENT: 11-1-0
YES: Haney, Patterson, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Ta, Wicks, Wilson
NO: Tangipa
ASM APPROPRIATIONS: 11-1-3
YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Tangipa
ABS, ABST OR NV: Hoover, Dixon, Ta
ASSEMBLY FLOOR: 71-3-6
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lee, Lowenthal, Macedo, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO: Irwin, Sanchez, Tangipa
ABS, ABST OR NV: Boerner, Dixon, Johnson, Lackey, Muratsuchi, Celeste Rodriguez
UPDATED
VERSION: June 18, 2026
CONSULTANT: Linda Rios / L. GOV. / (916) 319-3958 FN: 0004131
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1997 |
THIRD READING
Bill No: AB 1997
Author: Lee (D)
Amended: 6/18/26 in Senate
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE: 5-1, 6/17/26
AYES: Durazo, Choi, Arreguín, Cervantes, Laird
NOES: Seyarto
NO VOTE RECORDED: Ashby
SENATE HOUSING COMMITTEE: 8-1, 6/30/26
AYES: Arreguín, Cabaldon, Caballero, Cortese, Durazo, Grayson, Ochoa Bogh, Padilla
NOES: Seyarto
NO VOTE RECORDED: Gonzalez
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 71-3, 5/26/26 - See last page for vote
SUBJECT: Land use: housing development approvals: timelines and processes
SOURCE: AIDS Healthcare Foundation
DIGEST:
This bill expedites the timeline for approval or disapproval of certain affordable housing development projects.
ANALYSIS:
Existing law:
- Allows, pursuant to the California Constitution, cities and counties to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.”
- Requires public agencies to act fairly and promptly on applications for development permits, including housing, under the Permit Streamlining Act (PSA), including that “lead agencies,” which are public agencies that have principal responsibility for approving a project, must approve or deny the project within:
- 180 days of certifying an environmental impact report (EIR);
- 90 days of certifying an EIR for a housing project;
- 60 days of certifying an EIR for a housing project that is at least 49% affordable to very low or low-income households and the project has applied or will apply for state or federal financial assistance;
- 60 days of adopting a negative declaration under CEQA, determining a project is exempt from CEQA, or receiving a complete application if the project is subject to ministerial review; and
- 60 to 90 days, depending on project size, of receiving a complete application for a housing project that qualifies for a CEQA exemption pursuant to AB 130 (Committee on Budget, 2025), unless specified tribal consultation is ongoing.
- Deems approved the application if the agency fails to approve or disapprove the application in the applicable time period.
This bill:
- Requires a lead agency under the PSA to approve a housing project within 30 days of the certification of an EIR for housing project that is at least 90% affordable to very low or low-income households and the project has applied or will apply for state or federal financial assistance, as specified.
- Makes technical and conforming changes.
Comment
Purpose of the bill. According to the author, “AB 1997 reduces from 60 days down to 30 days the period of time a lead agency has to approve or deny an affordable housing project’s environmental impact report (EIR) after the lead agency certifies the EIR. This faster timeline only applies to projects that are 90% affordable to very-low or extremely-low income households, and requires the project applicant to have provided written notice to the agency specifics about the project’s financing. This narrow and very focused streamlining will move 90% affordable housing projects faster.”
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 8/5/26)
AIDS Healthcare Foundation (source)
OPPOSITION: (Verified 8/5/26)
City of La Verne
ASSEMBLY FLOOR: 71-3, 5/26/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lee, Lowenthal, Macedo, McKinnor, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: Irwin, Sanchez, Tangipa
NO VOTE RECORDED: Boerner, Dixon, Johnson, Lackey, Muratsuchi, Celeste Rodriguez
Prepared by: Anton Favorini-Csorba / L. GOV. / (916) 651-4119
8/5/26 15:04:10
**** END ****
SENATE COMMITTEE ON HOUSING
Senator Jesse Arreguín, Chair
2025 - 2026 Regular
Bill No: AB 1997 Hearing Date: 6/30/2026
Author: | Lee | ||
Version: | 6/18/2026 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Hank Brady | ||
SUBJECT: Land use: housing development approvals: timelines and processes
DIGEST: This bill requires a lead agency for a development project to approve or disapprove a housing development project where 90% of the units are affordable to very low- or extremely low-income households within 30 days of certifying an environmental impact report (EIR).
ANALYSIS:
Existing law:
- Establishes the California Environmental Quality Act (CEQA), which requires public agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated negative declaration, or an environmental impact report (EIR) for this action, unless the project is exempt from CEQA.
- Establishes the Permit Streamlining Act (PSA), which, among other things, establishes time limits within which state and local government agencies must either approve or disapprove permits to entitle a development.
- Requires a lead agency for a development project to approve or disapprove a project within whichever of the following periods is applicable:
- 180 days from the date of certification by the lead agency of the EIR.
- 90 days from the date of certification by the lead agency of the EIR, if the development project is a housing development project.
- 60 days from the date of certification by the lead agency of the EIR, if the development is a housing development project and meets all of the following:
- At least 49% of the units are affordable to very low or low-income households, as specified. Rents for the lower income units shall be set at an affordable rent, as specified, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as specified.
- Prior to the application being deemed complete for the development project, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency. The notice must also specify the financial assistance that has been or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be at an affordable rent for a minimum of 30 years for rental units and at an affordable cost for an owner occupant.
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- 60 days from the date of adoption by the lead agency of a negative declaration.
- 60 days from the date a lead agency determines that the project is exempt from CEQA.
- Except for affordable and mixed income housing developments in a commercial corridor, 60 days from the date of receipt of a complete application if the project is subject to ministerial review by the public agency.
- Within 30 days of specified timelines if a housing development project is exempt from CEQA.
This bill:
- Requires a lead agency for a development project to approve or disapprove the project within 30 days from the date of certification by the lead agency of the EIR for a housing development project where the following conditions are met:
- At least 90% of the units in the development project are affordable to very low or extremely low-income households, as specified.
- Prior to the application being deemed complete, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency.
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
Background
The PSA. The PSA requires public agencies to act fairly and promptly on applications for development proposals, including housing developments. Under the PSA, public agencies have 30 days to determine whether applications for development projects are complete and request additional information; failure to act results in an application being “deemed complete.” The PSA applies to the discretionary approval phase of a development review process; this is the phase where the agency, in its discretion, decides whether it approves of the concept outlined in the development proposal.
Comments
- Author’s Statement. “AB 1997 reduces from 60 days down to 30 days the period of time a lead agency has to approve or deny an affordable housing project’s environmental impact report (EIR) after the lead agency certifies the EIR. This faster timeline only applies to projects that are 90% affordable to very-low or extremely-low income households, and requires the project applicant to have provided written notice to the agency specifics about the project’s financing. This narrow and very focused streamlining will move 90% affordable housing projects faster.”
- CEQA Review. CEQA provides a process for evaluating the environmental effects of applicable projects undertaken or approved by public agencies. If a project is not exempt from CEQA, the lead agency prepares an initial study to determine whether the project may have a significant effect on the environment. If the initial study shows the project would not have a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows that project may have a significant effect, the lead agency must prepare an environmental impact report (EIR).
Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact expected to result from the proposed project, identify mitigation measures to reduce those impacts to the extent feasible, and evaluate a range of reasonable alternatives to the proposed project. Prior to approving any project that has received environmental review, the lead agency must make certain findings. If mitigation measures are required or incorporated into a project, the lead agency must adopt a reporting or monitoring program to ensure compliance with those measures.
- PSA post-CEQA timelines. The (PSA) requires public agencies to act fairly and promptly on applications for development permits, including housing. Public agencies must compile detailed lists of information that applicants for development projects must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being "deemed complete."
Once a complete application for a development has been submitted, the PSA requires public officials to act within a specific time period after completing any environmental review documents required under CEQA ranging from 60 to 180 days depending on the project and the environmental review required. If the public agency fails to approve or disapprove the application in the applicable time period, the application is “deemed approved,” and the applicant may file suit in state court to order the local government to issue the relevant permit.
The PSA specifies that lead agencies must either approve or deny a housing development project within 90 days of certifying an EIR. For housing development projects where at least 49% of the units in the project are affordable to very low or low-income households, the lead agency must approve or deny the project within 60 days of certification of the EIR.
This bill requires lead agencies to approve or deny housing development projects within 30 days of certifying an EIR if the housing development project meets the following:
- 90% of the units are affordable to very low- or extremely low-income households; and,
- The lead agency received written notice that the applicant is seeking state or federal financial assistance, as specified.
Related/Prior Legislation
AB 1007 (Rubio, Chapter 502, Statutes of 2025) — shortened the period of time a responsible agency has to approve or disapprove for residential or mixed-use residential projects.
AB 130 (Committee on Budget, Chapter 22, Statutes of 2025) — expanded the application of PSA timelines to certain ministerial approvals for housing development projects.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
POSITIONS: (Communicated to the committee before noon on Wednesday, June 24th, 2026.)
SUPPORT:
Aids Healthcare Foundation
OPPOSITION:
City of La Verne
-- END --
SENATE COMMITTEE ON LOCAL GOVERNMENT
Senator María Elena Durazo, Chair
2025 - 2026 Regular
Bill No: | AB 1997 | Hearing Date: | 6/17/26 |
Author: | Lee | Fiscal: | Yes |
Version: | 5/18/26 | Consultant: | Favorini-Csorba |
Land use: housing development approvals: timelines and processes
Expedites the timeline for approval or disapproval of certain affordable housing development projects.
Background
The California Constitution allows cities and counties to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public—including land use authority.
Zoning and approval processes. Local governments use their police power to enact zoning ordinances that establish the types of land uses that are allowed or authorized in an area. Zoning ordinances often identify a primary use for parcels in the area, as well as other uses that are allowed if they meet conditions imposed by the local government. They also set the standards and conditions that development must comply with in order to proceed.
Local governments have broad authority to define the specific approval processes needed to satisfy these considerations. Some housing projects can be permitted by city or county planning staff “ministerially” or without further approval from elected officials, but most large housing projects require “discretionary” approvals from local governments, such as a conditional use permit or a change in zoning laws. This process requires hearings by the local planning commission and public notice and may require additional approvals.
Permit Streamlining Act. The 1977 Permit Streamlining Act (PSA) requires public agencies to act fairly and promptly on applications for development permits, including housing. Public agencies must compile detailed lists of information that applicants for development projects must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being “deemed complete.”
Once a complete application for a development has been submitted, the PSA requires public officials to act within a specific time period after completing any environmental review documents required under the California Environmental Quality Act (CEQA), ranging from 30 to 180 days depending on the project and the environmental review required. Specifically, “lead agencies,” which are public agencies that have principal responsibility for approving a project, must approve or deny the project within:
- 180 days of certifying an environmental impact report (EIR);
- 90 days of certifying an EIR for a housing project;
- 60 days of certifying an EIR for a housing project that is at least 49% affordable to very low or low-income households and the project has applied or will apply for state or federal financial assistance;
- 60 days of adopting a negative declaration under CEQA, determining a project is exempt from CEQA, or receiving a complete application if the project is subject to ministerial review; and
- 60 to 90 days, depending on project size, of receiving a complete application for a housing project that qualifies for a CEQA exemption pursuant to AB 130 (Committee on Budget, 2025), unless specified tribal consultation is ongoing.
If the public agency fails to approve or disapprove the application in the applicable time period, the application is “deemed approved,” and the applicant may file suit in state court to order the local government to issue the permit.
The PSA also requires a “responsible agency,” which is any other public agency with discretionary approval over part of the project, to approve or deny a project within specified timeframes following approval by the lead agency. AB 1007 (Rubio, 2025) shortened the review period for responsible agencies to review a housing project to:
- Within 45 days of receiving a complete application, or the lead agency approving the project, whichever is longer; and
- When the responsible agency is the Coastal Commission or San Francisco Bay Conservation and Development Commission, within 90 days of receiving a complete application, or the lead agency approving the project, whichever is longer. This 90-day clock also applies to specified permits issued by the State Water Resources Control Board.
It can take years for a housing project to receive the necessary land use approvals to move to the construction phase. For example, the table below indicates the average number of days for housing projects to go from a submitted application to entitled in 2024, based on data reported by local governments to the Department of Housing and Community Development.
Development Type | Single Family (Detached) | Single Family (Attached) | Accessory Dwelling Unit (ADU) | Mobile Home | Two to Four Units | Five or More Units |
Average time from submission to entitled (days) | 112 | 200 | 103 | 104 | 187 | 250 |
The AIDS Healthcare Foundation wants the Legislature to shorten housing development approval times.
Proposed Law
Assembly Bill 1997 requires a lead agency under the PSA to approve a housing project within 30 days of the certification of an EIR for housing project that is at least 90% affordable to very low or low-income households and the project has applied or will apply for state or federal financial assistance, as specified. The bill also makes technical and conforming changes.
Comments
1. Purpose of the bill. According to the author, “AB 1997 reduces from 60 days down to 30 days the period of time a lead agency has to approve or deny an affordable housing project’s environmental impact report (EIR) after the lead agency certifies the EIR. This faster timeline only applies to projects that are 90% affordable to very-low or extremely-low income households, and requires the project applicant to have provided written notice to the agency specifics about the project’s financing. This narrow and very focused streamlining will move 90% affordable housing projects faster.”
2. Don’t look at me, I just work here. In recent years, as the Legislature has enacted housing streamlining laws, it has also added special provisions relating to housing to the deadlines in the PSA. As these provisions have proliferated, they have used inconsistent terms, including “development project” and “housing development project.” However, the term development project is already a defined term in the PSA, creating confusion over which requirements apply to what projects. AB 1997 adds an additional category of housing development projects. But because of the way the PSA is drafted, projects streamlined by AB 1997 would not benefit from the same shortened timeframes for approval of the project by a responsible agency. The Committee may wish to consider amending AB 1997 to clarify which deadlines in the PSA apply to all development projects versus only housing development projects.
3. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because AB 1997 imposes new duties on local officials, Legislative Counsel says that it imposes a new state mandate. AB 1997 disclaims the state’s responsibility for providing reimbursement by citing local governments’ authority to charge for the costs of implementing the bill’s provisions.
4. Coming and going. The Senate Rules Committee has ordered a double referral: first to the Committee on Local Government to hear issues related to the Permit Streamlining Act, and second to the Committee on Housing.
Assembly Actions
Assembly Local Government Committee: 8-0
Assembly Housing and Community Development Committee: 11-1
Assembly Appropriations Committee: 11-1
Assembly Floor: 71-3
Support and Opposition
(6/12/2026)
Support: Aids Healthcare Foundation
Opposition: City of LA Verne
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1997
Author:(Lee)
As Amended Ver:May 18, 2026
Majority vote
SUMMARY
Requires a lead agency for a development project to approve or disapprove a housing development project where 90% of the units are affordable to very low- or extremely low-income households within 30 days of certifying an environmental impact report (EIR).
Major Provisions
- Requires a lead agency for a development project to approve or disapprove the project within 30 days from the date of certification by the lead agency of the EIR for a housing development project where the following conditions are met:
- At least 90% of the units in the development project are affordable to very low or extremely low-income households, as specified.
- Prior to the application being deemed complete, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency.
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- Provides that no reimbursement is required by the bill because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by the bill.
COMMENTS
- Police Powers. Planning for and approving new development is mainly a local responsibility. The California Constitution allows cities and counties to ″make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.″ It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public – including land use authority. Cities and counties enforce this land use authority through zoning regulations, as well as through an ″entitlement process″ for obtaining discretionary as well as ministerial approvals.
The scale of the proposed development, as well as the existing environmental setting determine the degree of local review that occurs. For larger developments, the local entitlement process commonly requires multiple discretionary decisions regarding the subdivision of land, environmental review pursuant to CEQA, and project review by the local agency′s legislative body (city council or county board) or by a planning commission delegated by the legislative body.
- Permit Streamlining Act. Permit Streamlining Act. The 1977 Permit Streamlining Act (PSA) requires public agencies to act fairly and promptly on applications for development permits, including housing. Public agencies must compile detailed lists of information that applicants for development projects must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being ″deemed complete.″
Once a complete application for a development has been submitted, the PSA requires public officials to act within a specific time period after completing any environmental review documents required under the California Environmental Quality Act (CEQA), ranging from 60 to 180 days depending on the project and the environmental review required. If the public agency fails to approve or disapprove the application in the applicable time period, the application is ″deemed approved,″ and the applicant may file suit in state court to order the local government to issue the permit.
The PSA applies different requirements to ″lead agencies and ″responsible agencies. Lead agencies are the public agency with principal responsibility for carrying out or approving a project. Most often, particularly for housing projects, the lead agency is a city or county. The lead agency determines whether CEQA applies and prepares the relevant CEQA document. The timelines above apply to lead agencies.
A responsible agency is any other public agency with discretionary approval over part of the project, such as issuing a permit or license. Examples include water boards, air districts, utility providers, or agencies overseeing habitat or coastal resources. Once the lead agency has certified or adopted the CEQA document, responsible agencies must approve or disapprove qualifying projects within the longer of 180 days from the lead agency′s approval, or 180 days from the date the responsible agency accepts the application as complete.
For housing development projects, a shorter PSA timeline applies:
- 90 days from the lead agency′s approval.
- 90 days from receipt of a complete application.
Most recently, AB 1007 (Rubio), Chapter 502, Statutes of 2025, shortened the period of time a responsible agency has to approve or disapprove for residential or mixed-use residential projects.
- Housing and CEQA. A project is exempt from CEQA if it is ministerial (i.e., it does not involve discretionary decisions), or if there is a specific statutory or categorical exemption that applies to the project. Statutory exemptions are created by the Legislature and apply even if a project has the potential to significantly affect the environment. In contrast, categorical exemptions, which are listed in the CEQA guidelines, generally do not apply if there are significant environmental impacts associated with the project, including if (1) there is a reasonable possibility of a significant effect on the environment due to unusual circumstances; (2) significant cumulative impacts from projects of the same type will result; or (3) the project will have impacts on a uniquely sensitive environment.
Affordable housing, as a subset of housing, could be eligible for any of these exemptions so long as the project meets the specific criteria for a given exemption. These exemptions come with their own eligibility criteria, including that projects meet certain urban density and size requirements, avoid impacts on sensitive habitat, wildlife, and the environment, and are not on sensitive sites.
According to the Author
″This bill will expedite home construction by reducing the approval time for housing applications. By reducing approval timeframes after environmental reviews have been completed, projects will move into construction faster. Finally, the bill creates a working group within the Governor′s Office of Land Use and Climate Innovation to recommend ways to speed up housing developments for local jurisdictions.″
Arguments in Support
The AIDS Healthcare Foundation, the bill sponsor, writes in support to a previous version of the bill, ″AB 1997 seeks to build on innovative success as well as thoughtful recommendations from housing development experts to effect reforms statewide. The bill would shorten the timeframes for permit approval for housing developments once the entitlement process has been completed.
- ″The deadlines during this phase of permit approval under the Permit Streamlining Act would be shortened in many cases.
- ″In addition, a new deadline of 30 days would be instituted for housing projects that provide 90% of their units for very low and extremely low-income households.″
Arguments in Opposition
The Cucamonga Valley Water District writes in opposition to a previous version of the bill, ″As this bill and many others are positioning to truncate existing processes and timelines for permit approvals, we encourage thoughtful consideration on the impact this may have on a large scale. The shortening of timelines can create issues with thorough examination of permit applications and often many of the delays in permitting are not caused by the entity issuing the permit, but with the completion of the work and final review. As the state seeks to address the housing crisis, being mindful of ensuring we are also protecting the infrastructure that serves those housing developments goes hand-in hand with those goals.″
FISCAL COMMENTS
No state costs. Local costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates.
VOTES
ASM LOCAL GOVERNMENT: 8-0-2
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
ABS, ABST OR NV: Ta, Johnson
ASM HOUSING AND COMMUNITY DEVELOPMENT: 11-1-0
YES: Haney, Patterson, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Ta, Wicks, Wilson
NO: Tangipa
ASM APPROPRIATIONS: 11-1-3
YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Tangipa
ABS, ABST OR NV: Hoover, Dixon, Ta
UPDATED
VERSION: May 18, 2026
CONSULTANT: Linda Rios / L. GOV. / (916) 319-3958 FN: 0002679
Date of Hearing: May 13, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 1997
Author:(Lee) – As Amended Ver:April 27, 2026
Policy Committee: | Local Government | Vote: | 8 - 0 |
Housing and Community Development | 11 - 1 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill requires a lead agency for a development project to approve or disapprove a housing development project where 90% of the units are affordable to very low- or extremely low-income households within 30 days of certifying an environmental impact report (EIR), and requires the Department of Housing and Community Development (HCD) to establish a working group to develop and provide recommendations on the most effective ways to expedite the development of housing.
Specifically, this bill:
- Requires a lead agency for a development project to approve or disapprove the project within 30 days from the date of certification by the lead agency of the EIR for a housing development project where the following conditions are met:
- At least 90% of the units in the development project are affordable to very low or extremely low-income households, as specified.
- Prior to the application being deemed complete, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency.
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- Requires HCD, in consultation with the Governor’s Office of Land Use and Climate Innovation (LCI), to establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways to expedite the development of housing.
- Requires HCD to ensure the working group includes an equal number of local government representatives, housing developers, and housing advocates.
FISCAL EFFECT:
- HCD estimates ongoing General Fund costs of $236,000 annually for an additional position to establish the working group and provide recommendations on ways to expedite housing development.
- Local costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates.
The Legislative Analyst’s Office recently warned of General Fund structural deficits of around $35 billion per year in the 2027-28 fiscal year and ongoing.
COMMENTS:
- Purpose. According to the author. “This bill will expedite home construction by reducing the approval time for housing applications. By reducing approval timeframes after environmental reviews have been completed, projects will move into construction faster.”
- Background. The California Environmental Quality Act (CEQA) requires a lead agency to prepare and certify the completion of an EIR on a project that the lead agency proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if the lead agency finds that the project will not have that effect. Existing law, the Permit Streamlining Act sets forth various procedures for the review and approval of development project applications. Among other things, the act requires a public agency that is the lead agency for a development project to approve or disapprove the project within a specified period of time, which varies depending on the project’s phase in the CEQA process.
This bill requires a lead agency to approve or disapprove a housing development project within 30 days of certifying an EIR if the housing development project meets certain conditions. The bill also requires HCD to form a working group of local governments, housing advocates, and housing developers to make recommendations on ways to expedite housing development. These recommendations may include changes to state law.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 22, 2026
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Matt Haney, Chair
ABPCA Bill Id:AB 1997 (
Author:Lee) – As Amended Ver:April 16, 2026
SUBJECT: Land use: housing development approvals: timelines and processes
SUMMARY: Requires a lead agency to approve or disapprove a housing development project where 90% of the units are affordable to very low or extremely low income households within 30 days of certifying an environmental impact report (EIR), and establishes a working group to make recommendations on the most effective ways to expedite the development of housing. Specifically, this bill:
- Requires a lead agency for a development project to approve or disapprove the project within 30 days from the date of certification by the lead agency of the EIR for a housing development project where all of the following conditions are met:
- At least 90% of the units in the development project are affordable to very low or extremely low-income households, as specified. Requires that rents for lower income units be set at an affordable cost, as specified, for a minimum of 30 years. Requires that owner-occupied units be available at an affordable housing cost, as specified;
- Prior to the application being deemed complete for the development project, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency. The notice must also specify the financial assistance that has been or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be at an affordable rent for a minimum of 30 years for rental units and at an affordable cost for an owner occupant; and
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- Reduces from 90 to 60 days the timeframe that a lead agency has to approve all housing development projects after the completion of the EIR, regardless of affordability level, unless the project meets the criteria in 1) to qualify for a shorter processing timeline.
- Requires the director of the Department of Housing and Community Development (HCD), in consultation with the Governor’s Office of Land Use and Climate Innovation (LCI), to establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways to expedite the development of housing. Provides that the working group’s recommendations may include, but are not limited to, amendments to state law to achieve the same objective.
- Requires the HCD Director to ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.
- Makes additional technical and conforming changes.
EXISTING LAW:
- Establishes the Permit Streamlining Act (PSA), which requires a lead agency for a development project to approve or disapprove a project within whichever of the following periods is applicable:
- 180 days from the date of certification by the lead agency of the EIR.
- 90 days from the date of certification by the lead agency of the EIR, if the development project is a housing development project.
- 60 days from the date of certification by the lead agency of the EIR, if the development is a housing development project and meets all of the following:
- At least 49% of the units are affordable to very low or low-income households, as specified. Rents for the lower income units shall be set at an affordable rent, as specified, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as specified;
- Prior to the application being deemed complete for the development project, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency. The notice must also specify the financial assistance that has been or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be at an affordable rent for a minimum of 30 years for rental units and at an affordable cost for an owner occupant; and
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- 60 days from the date of adoption by the lead agency of a negative declaration.
- 60 days from the date a lead agency determines that the project is exempt from CEQA.
- Except for affordable and mixed income housing developments in a commercial corridor, 60 days from the date of receipt of a complete application if the project is subject to ministerial review by the public agency.
- Within 30 days of specified timelines if a housing development project is exempt from CEQA. (Government Code Section 65950)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “This bill will expedite home construction by reducing the approval time for housing applications. By reducing approval timeframes after environmental reviews have been completed, projects will move into construction faster. Finally, the bill creates a working group within the Governor’s Office of Land Use and Climate Innovation to recommend ways to speed up housing developments for local jurisdictions.”
California’s Housing Crisis: California’s housing crisis is a half-century in the making.[1] After decades of underproduction, supply is far behind demand, and housing and rental costs are soaring. As a result, millions of Californians must make hard decisions about paying for housing at the expense of food, health care, child care, and transportation, directly impacting the quality of life in the state.[2] One in three households in the state doesn’t earn enough money to meet their basic needs.[3] In 2024, over 187,000 Californians experienced homelessness on a given night.[4]
To meet this housing need, HCD determined that California must plan for more than 2.5 million new homes, and no less than one million of those homes must be affordable to lower-income households, in the 6th Regional Housing Needs Allocation (RHNA) cycle. By contrast, housing production in the past decade has been under 100,000 units per year – including less than 10,000 units of affordable housing per year.[5] Increasing the overall supply of housing, both market-rate and deed-restricted affordable, is essential to reducing upward pressure on rents and home prices, and to creating a more stable, accessible housing market for Californians across income levels.
The state’s housing crisis is not equally experienced by all Californians. Testimony by the UC Berkeley Terner Center to this Committee showed that the impacts of the housing crisis are significantly more severe for lower-income individuals, single-earner households, Black and Latino Californians, younger and older populations, and those who reside in, or aspire to live and work in, the state’s highest-cost regions.[6]
Housing Approvals Process: Planning for, and approving, new housing developments is primarily a local responsibility. Under the California Constitution, cities and counties have broad authority, known as the police power, to regulate land use in the interest of public health, safety, and welfare. Local governments enforce this authority through an entitlement process, which includes both discretionary and ministerial approvals. Gaining “entitlement” is essentially a local government’s confirmation that a housing project conforms to all applicable local zoning regulations and design standards.
For discretionary projects, environmental review under CEQA is often required as part of the entitlement process. CEQA was enacted in 1970 and signed into law by Governor Reagan in response to growing public concern about the environmental consequences of development. Over time, CEQA has become a central feature of land use planning in California, influencing how and where development proposals, including proposed housing developments, can proceed. Modeled after the National Environmental Policy Act (NEPA), CEQA requires public agencies to identify, disclose, and, where feasible, mitigate the significant environmental impacts of proposed projects. The level of environmental review varies depending on a project’s potential impacts or its eligibility for exemption under CEQA. Projects may qualify for a statutory or categorical exemption, or, if not exempt, may require a Negative Declaration, Mitigated Negative Declaration (MND), or a full EIR. While categorical exemptions typically apply to project types that are unlikely to have significant environmental impacts, statutory exemptions may apply even if a project could result in significant impacts, based on policy decisions made by the Legislature.
Under the PSA, once the environmental review is complete, the lead agency has specified timeframes to approve or disapprove the project at the entitlement stage, generally within 60 days for projects approved with a Negative Declaration or Mitigated Negative Declaration, and within 90 days for projects requiring an EIR, unless the applicant consents to an extension.
Once a project receives entitlement, or approval, from the local planning department or review body, it must obtain postentitlement permits, such as building, demolition, and grading permits. Postentitlement permits are related to the physical construction of the development proposal before construction can begin. In 2022, AB 2234 (Rivas), Chapter 651, established postentitlement permitting review timelines that local governments must comply with. In 2025, AB 301 (Schiavo), Chapter 488, applied those same timelines for postentitlement reviews done by state agencies.
Navigating through the various stages of housing approval requires developers to invest time and resources early in the development process. Obtaining approval to build housing can be even more difficult for less-experienced developers seeking to enter new markets throughout the state, or for developers from other states who are unfamiliar with California’s unique approvals process, including the CEQA process. To address this, the Legislature has enacted various laws to streamline, expedite, and standardize housing approvals, particularly for projects meeting objective standards. Despite the efforts to expedite local approvals for housing development proposals both at the entitlement and permitting stages, it still takes far too long to approve housing in California.
HCD identifies lengthy permit processing timelines and procedures as a governmental constraint to housing development. In HCD’s San Francisco Housing Policy and Practice Review, the department found that procedural complexities associated with housing entitlement and permitting are “not only a barrier to entry to new development professionals pursuing [housing] projects,” but they may also cause developers to exit housing markets with complex permitting ecosystems and pursue developments in neighboring jurisdictions with less complex procedural requirements instead.”[7] Bureaucratic hurdles and delays can result in project abandonment, further tightening the housing production pipeline.
Permit Streamlining Act: Recognizing the challenges posed by extended approval timelines, the Legislature adopted the PSA in 1977 to bring greater efficiency and predictability to the development review process. The PSA applies to all local governments, including charter cities, and is intended to protect applicants from unjustified delays. The PSA establishes timelines and procedural requirements for public agencies to review and act on development permit applications, including housing projects.
The PSA applies broadly to development projects requiring public agency approval, and has historically governed discretionary approvals at the entitlement stage. Recent legislation, including AB 130 (Committee on Budget), Chapter 22, Statutes of 2025), expanded the application of PSA timelines to certain ministerial approvals for housing development projects.
Under the PSA, public agencies must specify the information required for a complete application and have 30 days to determine whether an application is complete; if they fail to act, the application is deemed complete by operation of law. The PSA mandates a clear review process:
- Within 30 calendar days of receiving an application, a local agency must determine whether it is complete;
- If incomplete, the agency must provide a detailed list of deficiencies; and
- If complete, the application is formally accepted, and PSA timelines begin.
Once an application is accepted as complete, the PSA sets strict timelines for lead agencies to approve or disapprove a project. A lead agency is the public agency with principal responsibility for carrying out or approving a project. Most often, this is a city or county. The lead agency determines whether CEQA applies and prepares the relevant CEQA document. The applicable deadline depends on the type of environmental review. If the agency fails to act within the applicable timeframe, the project may be deemed approved by operation of law.
Triggering Event | Lead Agency Deadline for Approval |
Certification of an EIR | 180 days |
Certification of an EIR for all-residential or primarily residential mixed-use projects | 90 days |
Certification of an EIR for certain affordable housing projects meeting specific criteria (49% affordability, public funding application, etc.) | 60 days |
Adoption of a Negative Declaration | 60 days |
Determination that project is CEQA-exempt | 60 days |
Ministerial housing development project (with complete application) | 60 days |
CEQA exemption under Pub. Res. Code § 21080.66 (specific streamlining provision | 30 days from later of specified triggers |
This Bill: This bill reduces the time that a lead agency has to approve an application for housing entitlement associated with a housing development project from 90 days after completion of an EIR to 60 days after EIR completion, regardless of the affordability levels associated with the proposed housing development project. Under current law, housing developments meeting certain affordability criteria must be approved or disapproved within 60 days, and others have a 90 day timeframe.
This bill further requires a lead agency to approve or disapprove a housing development project within 30 days of certifying an EIR if the housing development project meets certain conditions. One of the conditions requires that 90% of the units in the housing development project be at an affordable rent for a minimum of 30 years, or be at an affordable cost to an owner-occupant. These conditions also require the project applicant to provide notice to the lead agency that the project applicant has applied, or will apply, for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency for the housing development project. The project applicant must confirm that the application for financial assistance from a public or federal agency has been made at least 30 days prior to the EIR being certified.
This bill also requires HCD, in consultation with LCI, to establish a working group consisting of equal membership of local governments, housing advocates, and housing developers to make recommendations on ways to expedite housing development. These recommendations may include, but are not limited to, changes to state law.
Arguments in Support: The AIDS Healthcare Foundation, the bill sponsor, writes in support: “AB 1997 seeks to build on innovative success as well as thoughtful recommendations from housing development experts to effect reforms statewide. The bill would shorten the timeframes for permit approval for housing developments once the entitlement process has been completed.
- The deadlines during this phase of permit approval under the Permit Streamlining Act would be shortened in many cases.
- In addition, a new deadline of 30 days would be instituted for housing projects that provide 90% of their units for very low and extremely low-income households.
Finally, getting great housing development minds together to ponder the challenges to creating necessary housing could generate further recommendations. The director of Housing and Community Development would be required to convene a working group of local government officials, housing developers and housing advocates to consider and recommend other ways to expedite housing development.”
Arguments in Opposition: None on file for current bill version.
Committee Amendments: The Committee may wish to consider the following amendment to correct a drafting error in the prior Committee’s amendments:
(2) Sixty Ninety days from the date of certification by the lead agency of the environmental impact report, if an environmental impact report is prepared pursuant to Section 21100 or 21151 of the Public Resources Code for a housing development, pursuant to subdivision (c).
Related Legislation:
AB 130 (Committee on Budget), Chapter 22, Statutes of 2025, expanded the application of PSA timelines to certain ministerial approvals for housing development projects.
AB 1007 (Rubio), Chapter 502, Statutes of 2025, expedites timelines for approval or disapproval by a public agency acting as the "responsible agency" for residential and mixed-use development projects.
AB 301 (Schiavo), Chapter 488, Statutes of 2025, applied the same timelines for postentitlement reviews established in AB 2234 to reviews done by state agencies.
AB 2234 (Rivas), Chapter 651, Statutes of 2022, established postentitlement permitting review timelines that local governments must comply with.
Double-Referred: This bill was also referred to the Committee on Local Government, where it passed with a vote of 8-0 on April 15, 2026.
REGISTERED SUPPORT / OPPOSITION:
Support
AIDS Healthcare Foundation (Sponsor)
Opposition
None on file for the current bill version
Analysis Prepared by: Dori Ganetsos / H. & C.D. / (916) 319-2085
California Department of Housing and Community Development, A Home for Every Californian: 2022 Statewide Housing Plan. March 2022, https://storymaps.arcgis.com/stories/94729ab1648d43b1811c1698a748c136 ↑
IBID. ↑
IBID. ↑
U.S. Department of Housing and Urban Development, Point in Time Counts. https://www.huduser.gov/portal/datasets/ahar/2023-ahar-part-1-pit-estimates-of-homelessness-in-the-us.html ↑
https://www.hcd.ca.gov/policy-research/housing-challenges.shtml ↑
UC Berkeley Terner Center Testimony by Ben Metcalf, Managing Director, at the State Housing Production Legislation: Actions, Outcomes, and Opportunities Informational Hearing, February 12, 2025 ↑
HCD San Francisco Policy & Practice Review, Page 13. Published October 2023. Accessed from: https://www.hcd.ca.gov/policy-and-research/plans-and-reports ↑
Date of Hearing: April 15, 2026
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
ABPCA Bill Id:AB 1997 (
Author:Lee) – As Amended Ver:April 7, 2026
AS PROPOSED TO BE AMENDED
SUBJECT: Land use: housing development approvals: timelines and processes
SUMMARY: Requires a lead agency to approve or disapprove a housing development project where 90% of the units are affordable to very low or extremely low income households within 30 days of certifying an environmental impact report (EIR), and establishes a working group to make recommendations on the most effective ways to expedite the development of housing. Specifically, this bill:
- Requires a lead agency for a development project to approve or disapprove the project within 30 days from the date of certification by the lead agency of the EIR for a housing development project where all of the following conditions are met:
- At least 90% of the units in the development project are affordable to very low or extremely low-income households, as specified. Requires that rents for lower income units be set at an affordable cost, as specified, for a minimum of 30 years. Requires that owner-occupied units be available at an affordable housing cost, as specified.
- Prior to the application being deemed complete for the development project, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency. The notice must also specify the financial assistance that has been or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be at an affordable rent for a minimum of 30 years for rental units and at an affordable cost for an owner occupant.
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- Requires the director of the Department of Housing and Community Development, in consultation with the Governor’s Office of Land Use and Climate Innovation (LCI), to establish a working group for purposes of exploring, considering, and recommending guidance to local jurisdictions on the most effective ways to expedite the development of housing. Provides that the working group’s recommendations may include, but are not limited to, amendments to state law to achieve the same objective.
- Requires the director to ensure that the working group includes an equal number of local government representatives, housing developers, and housing advocates.
- Provides that no reimbursement is required by the bill because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by the bill.
- Makes additional technical and conforming changes.
EXISTING LAW:
- Requires a lead agency for a development project to approve or disapprove a project within whichever of the following periods is applicable:
- 180 days from the date of certification by the lead agency of the EIR.
- 90 days from the date of certification by the lead agency of the EIR, if the development project is a housing development project.
- 60 days from the date of certification by the lead agency of the EIR, if the development is a housing development project and meets all of the following:
- At least 49% of the units are affordable to very low or low-income households, as specified. Rents for the lower income units shall be set at an affordable rent, as specified, for at least 30 years. Owner-occupied units shall be available at an affordable housing cost, as specified.
- Prior to the application being deemed complete for the development project, the lead agency received written notice from the project applicant that an application has been made or will be made for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency. The notice must also specify the financial assistance that has been or will be applied for, the deadline for application for that assistance, the requirement that one of the approvals of the development project by the lead agency is a prerequisite to the application for or approval of the application for financial assistance, and that the financial assistance is necessary for the project to be at an affordable rent for a minimum of 30 years for rental units and at an affordable cost for an owner occupant.
- There is prior confirmation that the application has been made to the public agency or federal agency prior to certification of the EIR.
- 60 days from the date of adoption by the lead agency of a negative declaration.
- 60 days from the date a lead agency determines that the project is exempt from CEQA.
- Except for affordable and mixed income housing developments in a commercial corridor, 60 days from the date of receipt of a complete application if the project is subject to ministerial review by the public agency.
- Within 30 days of specified timelines if a housing development project is exempt from CEQA. (Government Code § 65950)
FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program.
COMMENTS:
- Summary. This bill requires a lead agency to approve or disapprove a housing development project within 30 days of certifying an EIR if the housing development project meets certain conditions. One of the conditions requires that 90% of the units in the housing development project be at an affordable rent for a minimum of 30 years or be at an affordable cost to an owner occupant. These conditions also require the project applicant to provide notice to the lead agency that the project applicant has applied or will apply for an allocation or commitment of financing, tax credits, bond authority, or other financial assistance from a public agency or federal agency for the housing development project. The project applicant must confirm that the application for financial assistance from a public or federal agency has been made at least 30 days prior to the EIR being certified.
The bill also requires HCD, in consultation with LCI, to establish a working group consisting of equal membership of local governments, housing advocates, and housing developers to make recommendations on ways to expedite housing development. These recommendations may include, but are not limited to, changes to state law.
This bill is sponsored by the AIDS Healthcare Foundation.
- Author’s Statement. According to the author, “This bill will expedite home construction by reducing the approval time for housing applications. By reducing approval timeframes after environmental reviews have been completed, projects will move into construction faster. Finally, the bill creates a working group within the Governor’s Office of Land Use and Climate Innovation to recommend ways to speed up housing developments for local jurisdictions.
- Police Powers. Planning for and approving new development is mainly a local responsibility. The California Constitution allows cities and counties to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public – including land use authority. Cities and counties enforce this land use authority through zoning regulations, as well as through an “entitlement process” for obtaining discretionary as well as ministerial approvals.
The scale of the proposed development, as well as the existing environmental setting determine the degree of local review that occurs. For larger developments, the local entitlement process commonly requires multiple discretionary decisions regarding the subdivision of land, environmental review pursuant to CEQA, and project review by the local agency’s legislative body (city council or county board) or by a planning commission delegated by the legislative body.
- Permit Streamlining Act. Permit Streamlining Act. The 1977 Permit Streamlining Act (PSA) requires public agencies to act fairly and promptly on applications for development permits, including housing. Public agencies must compile detailed lists of information that applicants for development projects must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being "deemed complete."
Once a complete application for a development has been submitted, the PSA requires public officials to act within a specific time period after completing any environmental review documents required under the California Environmental Quality Act (CEQA), ranging from 60 to 180 days depending on the project and the environmental review required. If the public agency fails to approve or disapprove the application in the applicable time period, the application is "deemed approved," and the applicant may file suit in state court to order the local government to issue the permit.
The PSA applies different requirements to "lead agencies and "responsible agencies. Lead agencies are the public agency with principal responsibility for carrying out or approving a project. Most often, particularly for housing projects, the lead agency is a city or county. The lead agency determines whether CEQA applies and prepares the relevant CEQA document. The timelines above apply to lead agencies.
A responsible agency is any other public agency with discretionary approval over part of the project, such as issuing a permit or license. Examples include water boards, air districts, utility providers, or agencies overseeing habitat or coastal resources. Once the lead agency has certified or adopted the CEQA document, responsible agencies must approve or disapprove qualifying projects within the longer of 180 days from the lead agency's approval, or 180 days from the date the responsible agency accepts the application as complete.
For housing development projects, a shorter PSA timeline applies:
- 90 days from the lead agency's approval.
- 90 days from receipt of a complete application.
Most recently, AB 1007 (Rubio), Chapter 502, Statutes of 2025, shortened the period of time a responsible agency has to approve or disapprove for residential or mixed-use residential projects.
- Housing and CEQA. A project is exempt from CEQA if it is ministerial (i.e., it does not involve discretionary decisions), or if there is a specific statutory or categorical exemption that applies to the project. Statutory exemptions are created by the Legislature and apply even if a project has the potential to significantly affect the environment. In contrast, categorical exemptions, which are listed in the CEQA guidelines, generally do not apply if there are significant environmental impacts associated with the project, including if (1) there is a reasonable possibility of a significant effect on the environment due to unusual circumstances; (2) significant cumulative impacts from projects of the same type will result; or (3) the project will have impacts on a uniquely sensitive environment.
Affordable housing, as a subset of housing, could be eligible for any of these exemptions so long as the project meets the specific criteria for a given exemption. These exemptions come with their own eligibility criteria, including that projects meet certain urban density and size requirements, avoid impacts on sensitive habitat, wildlife, and the environment, and are not on sensitive sites. - Previous Legislation. AB 1007 (Rubio), Chapter 502, Statutes of 2025, expedites timelines for approval or disapproval by a public agency acting as the "responsible agency" for residential and mixed-use development projects.
AB 2180 (Ting) Chapter 566, Statutes of 2016, expedited timelines for approval or disapproval by a public agency for certain types of development projects. - Arguments in Support. The AIDS Healthcare Foundation, the sponsor of the bill, writes to the bill in print, “According to the California Department of Housing and Community Development, the state needs to build 2.5 million homes by 2030. However, by any measure, the state is substantially behind this goal. HCD reports, ‘During the last 10 years, housing production average fewer than 80,000 new homes each year, and ongoing production continues to fall far below the projected need of 180,000 additional homes annually.’
“Despite dozens of laws enacted in recent years to spur housing development (a few too recent to measure their impact), housing construction continues to slow-walk its way toward achieving state and local development goals. In fact, the US Census Bureau reports that over the last four years, the number of permits pulled for housing development has dropped by more than 13% and the number of permits for multifamily housing (5 units or more) has dropped by 18%...
"AB 1997 seeks to build on innovative success as well as thoughtful recommendation from housing development experts to effect reforms statewide. The bill also incentivizes local jurisdiction to move housing development more rapidly from application to construction to occupancy."
- Arguments in Opposition. The California Special Districts Association, the California Association of Sanitation Agencies, the Association of California Water Agencies, and the California Municipal Utilities Association write in opposition to the bill in print, “We have concerns involving the matter of a project development director and lead inspectors assigned by the city or county. The project development director is tasked with mediating and resolving conflicts. While we appreciate the intent to encourage expeditious and meaningful conflict resolution between the various entities, it may be read to assign authority to a select city employee(s) over a wide variety of independent agencies. This authority could pit agencies against their own necessary ordinances, standards, rules, expertise, and the statutes that govern and inform them.
“As this bill and many others are positioning to truncate existing processes and timelines for permit approvals, we encourage thoughtful consideration on the impact this may have on a large scale. The shortening of timelines can create issues with thorough examination of permit applications and often many of the delays in permitting are not caused by the entity issuing the permit, but with the completion of the work and final review. As the state seeks to address the housing crisis, being mindful of ensuring we are also protecting the infrastructure that serves those housing developments goes hand-in hand with those goals.” - Double-Referral. This bill is double referred to the Housing and Community Development Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
AIDS Healthcare Foundation - SPONSOR
Opposition
Advocate Association of California Water Agencies
American Planning Association, California Chapter
Association of California Water Agencies
California Association of Sanitation Agencies
California Municipal Utilities Association
California Special Districts Association
California State Association of Counties (CSAC)
League of California Cities
Rural County Representatives of California (RCRC)
Urban Counties of California (UCC)
Analysis Prepared by: Linda Rios / L. GOV. / (916) 319-3958
Discussed in Hearing
57SEC
Assembly Floor
1MIN
Senate Floor
4MIN
Senate Standing Committee on Housing
4MIN
Senate Standing Committee on Local Government
55SEC
Assembly Floor
6MIN
Assembly Standing Committee on Housing and Community Development
7MIN
Assembly Standing Committee on Local Government
Bill Author
Bill Co-Author(s):