AB 2074: Regional transit hub districts: downtown housing developments.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-29
Current Status:
Passed
(2026-09-29: Chaptered by Secretary of State - Chapter 797, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
The bill requires large “major transit” cities to create regional transit hub districts where dense downtown housing — at least 60 units per acre and including units affordable to lower‑income households — is an allowed use and can get faster, ministerial approval (a non‑discretionary, staff‑level review) if it meets safety, historic, size, and environmental checks. It also directs the California Housing Finance Agency to study state construction loan and financing options for these projects and give recommendations to the Legislature. The rules apply to all cities, including charter cities.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
The Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate at least one regional transit hub district, as specified, and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would define downtown housing development as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would require the California Housing Finance Agency to conduct a housing construction loan and financing study that includes specified components and deliver that study to the Legislature and specified committees by March 1, 2028, as specified. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The Planning and Zoning law requires each planning agency to prepare and the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes certain mandatory elements, including a housing element. The law requires the Department of Housing and Community Development to notify the city, county , or city and county and authorizes the department to notify the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to the housing element does not substantially comply with these provisions or that any local government has taken an action in violation of specified laws.
This bill would add a violation of the provisions described above to that list of specified laws.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate at least one regional transit hub district, as specified, and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would define downtown housing development as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would require the California Housing Finance Agency to conduct a housing construction loan and financing study that includes specified components and deliver that study to the Legislature and specified committees by March 1, 2028, as specified. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The Planning and Zoning law requires each planning agency to prepare and the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes certain mandatory elements, including a housing element. The law requires the Department of Housing and Community Development to notify the city, county , or city and county and authorizes the department to notify the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to the housing element does not substantially comply with these provisions or that any local government has taken an action in violation of specified laws.
This bill would add a violation of the provisions described above to that list of specified laws.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate one or more at least one regional transit hub districts district, as specified, and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would define downtown housing development as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would require the California Housing Finance Agency to conduct a housing construction loan and financing study that includes specified components and deliver that study to the Legislature and specified committees by December 1, 2027, March 1, 2028, as specified. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The Planning and Zoning law requires each planning agency to prepare and the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city that includes certain mandatory elements, including a housing element. The law requires the Department of Housing and Community Development to notify the city, county , or city and county and authorizes the department to notify the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to the housing element does not substantially comply with these provisions or that any local government has taken an action in violation of specified laws.
This bill would add a violation of the provisions described above to that list of specified laws.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate one or more regional transit hub districts and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would define downtown housing development as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would establish the Downtown Revitalization Loan Fund and continuously appropriate moneys in the fund to the California Housing Finance Agency for the purpose of making loans to applicants to develop downtown housing developments, as specified. By establishing a continuously appropriated fund, the bill would make an appropriation. require the California Housing Finance Agency to conduct a housing construction loan and financing study that includes specified components and deliver that study to the Legislature and specified committees by December 1, 2027, as specified. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate one or more regional transit hub districts and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would prescribe requirements for downtown housing developments, including requiring specified labor standards and requiring the developments to be define downtown housing development as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would establish the Downtown Revitalization Loan Fund and continuously appropriate moneys in the fund to the California Housing Finance Agency for the purpose of making loans to applicants to develop downtown housing developments, as specified. By establishing a continuously appropriated fund, the bill would make an appropriation. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate one or more regional transit hub districts, districts and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would require a downtown housing development to be an allowed use within a regional transit hub district, as specified. The bill would prescribe requirements for downtown housing developments, including requiring specified labor standards and requiring the developments to be eligible for streamlined ministerial approval, as specified. The bill would establish the Downtown Revitalization Loan Fund and continuously appropriate moneys in the fund to the California Housing Finance Agency for the purpose of making loans to applicants to develop downtown housing developments, as specified. By establishing a continuously appropriated fund, the bill would make an appropriation. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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 Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.
This bill would, by July 1, 2027, require major transit cities to designate one or more regional transit hub districts, as specified. The bill would require a downtown housing development to be an allowed use within a regional transit hub district, as specified. The bill would prescribe requirements for downtown housing developments, including requiring specified labor standards and requiring the developments to be eligible for streamlined ministerial approval, as specified. The bill would establish the Downtown Revitalization Loan Fund and continuously appropriate moneys in the fund to the California Housing Finance Agency for the purpose of making loans to applicants to develop downtown housing developments, as specified. By establishing a continuously appropriated fund, the bill would make an appropriation. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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 with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
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.
Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that contains certain mandatory elements, including a housing element. Existing law requires that the housing element consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing, as specified.Existing law requires that a housing development project within a specified distance of a transit-oriented development stop be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with applicable requirements, as specified.This bill would state the intent of the Legislature to enact legislation to support transit-oriented housing development, high road labor standards, and downtown revitalization in major transit cities, as defined, establish land use standards appropriate to transit-oriented development in regional centers, streamline ministerial approval for developments that meet high road labor standards in regional centers, and establish a revolving loan fund to finance construction of qualifying developments in regional centers.Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that contains certain mandatory elements, including a housing element. Existing law requires that the housing element consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing, as specified.
Existing law requires that a housing development project within a specified distance of a transit-oriented development stop be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with applicable requirements, as specified.
This bill would state the intent of the Legislature to enact legislation to support transit-oriented housing development, high road labor standards, and downtown revitalization in major transit cities, as defined, establish land use standards appropriate to transit-oriented development in regional centers, streamline ministerial approval for developments that meet high road labor standards in regional centers, and establish a revolving loan fund to finance construction of qualifying developments in regional centers.
(a)In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)(1)(A)At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local governments housing element at least seven days before submitting the draft revision to the department.
(B)The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county and provide these comments to each member of the legislative body before it adopts the housing element.
(C)The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(2)(A)At least 90 days prior to the initial adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, and at least 7 days prior to any subsequent adoption submittal if changes have occurred to the inventory of sites, a local government shall do both of the following:
(i)Make a draft of its inventory of sites required pursuant to paragraph (3) of subdivision (a) of Section 65583 available to the department and the public and post the draft inventory on its internet website.
(ii)Send an email to all individuals and organizations that have previously requested notices notifying them that the inventory has been updated that includes a link to the draft inventory on its website.
(B)The requirements of this paragraph shall apply to the seventh and each subsequent revision of the housing element.
(c)In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d)In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e)Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the departments findings are not available within the time limits set by this section, the legislative body may act without them.
(f)If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1)(A)Change the draft element or draft amendment to substantially comply with this article.
(B)Any change to a draft element or draft amendment pursuant to subparagraph (A) shall be completed in accordance with subdivision (b). This subparagraph does not constitute a change in, but is declaratory of, existing law.
(2)Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings that explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g)(1)Promptly following the adoption of its element or amendment, the planning agency shall submit a copy of the adopted element or amendment and any findings made pursuant to paragraph (2) of subdivision (f) to the department.
(2)This subdivision shall not be construed to excuse a legislative body from complying with subdivision (f). This paragraph does not constitute a change in, but is declaratory of, existing law.
(h)The department shall, within 60 days, review adopted housing elements or amendments and any findings pursuant to paragraph (2) of subdivision (f), make a finding as to whether the adopted element or amendment is in substantial compliance with this article, and report its findings to the planning agency.
(i)(1)(A)The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (C).
(B)If the department finds that the citys, countys, or city and countys action or failure to act does not substantially comply with its adopted housing element or its obligations pursuant to Section 65583, there shall be a rebuttable presumption of invalidity in any legal action challenging that action or failure to act.
(C)If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2)The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j)The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1)Housing Accountability Act (Section 65589.5).
(2)Section 65863.
(3)Chapter 4.3 (commencing with Section 65915).
(4)Section 65008.
(5)Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6)Section 8899.50.
(7)Section 65913.4.
(8)Article 11 (commencing with Section 65650).
(9)Article 12 (commencing with Section 65660).
(10)Section 65913.11.
(11)Section 65400.
(12)Section 65863.2.
(13)Chapter 4.1 (commencing with Section 65912.100).
(14)Section 65905.5.
(15)Chapter 13 (commencing with Section 66310).
(16)Section 65852.21.
(17)Section 65852.24.
(18)Section 66411.7.
(19)Section 65913.16.
(20)Article 2 (commencing with Section 66300.5) of Chapter 12.
(21)Section 65852.28.
(22)Section 65913.4.5.
(23)Section 66499.41.
(24)Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code).
(25)Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code).
(26)Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
(27)Article 11.5 (commencing with Section 65658).
(28)Section 65913.13.
(k)Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l)In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1)If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2)If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3)If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A)If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B)The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdictions housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the departments determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4)This subdivision does not limit a courts discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m)In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n)Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o)Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j), the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p)Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
(q)The amendments to this section made by the act adding this subdivision shall not be construed to limit the departments ability to enforce programmatic requirements or remedies against cities, counties, and continuums of care pursuant to the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code), the Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code), and the Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
SEC. 2.Section 65913.13 is added to the Government Code, to read:65913.13.(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district that meets all of the following conditions:
(A)It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
(B)It has a density of at least 60 dwelling units per acre.
(C)It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(D)It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
(E)It does not demolish any individually landmarked property on a local, state, or federal historic register.
(F)It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(G)The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
(2)Housing development project has the same meaning as defined in Section 65589.5.
(3)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(4)Regional transit hub district means a district designated pursuant to subdivision (b).
(5)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall do both of the following:
(i)Designate at least one regional transit hub district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall do both of the following:
(i)Designate at least one regional transit hub district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least one square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall do both of the following:
(i)Designate at least one regional transit hub district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least 1.5 square miles.
(2)A major transit city shall make the designation required by paragraph (1) by the applicable of the following:
(A)Resolution, if the major transit citys existing zoning code standards and zoning maps applicable to the regional transit hub district are consistent with the requirements of this section.
(B)Ordinance, if one or more amendments to the major transit citys existing zoning code standards or zoning maps applicable to the regional transit hub district are necessary to make the standards or maps consistent with the requirements of this section, in which case the ordinance shall also include those amendments.
(3)(A)Subject to the requirements of this paragraph, if a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the citys highest ridership transit-oriented development stop shall be deemed a regional transit hub district.
(B)The area described in subparagraph (A) shall comply with all of the following:
(i)It shall be located entirely within the major transit city.
(ii)It shall not occupy any portion of the San Francisco Bay.
(iii)It shall not occupy any portion of the Pacific Ocean.
(C)The portions of the area described in subparagraph (A) that are subject to clauses (ii), (iv), and (vi), inclusive, of subparagraph (A) of paragraph (2) of subdivision (c) shall be located in an equivalent area of uniform radius closest to the citys highest ridership transit-oriented development stop.
(D)The highest ridership transit-oriented development stop described in subparagraph (A) shall be determined by measuring the cumulative total ridership for all transit operators serving the stop over the course of the 12-month period between July 1, 2026, and July 1, 2027.
(4)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(5)A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
(6)The designation of a regional transit hub district pursuant to this subdivision, including, but not limited to, the enactment of an ordinance described in subparagraph (B) of paragraph (2), shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)(1)Each transit hub district shall meet all of the following requirements:
(A)It shall be a contiguous area of land.
(B)It shall have a land area of at least 0.25 square miles.
(C)It shall contain at least one transit-oriented development stop.
(2)(A)A regional transit hub district shall make a downtown housing development an allowable use and shall be subject to all of the following with respect to a downtown housing development:
(i)The city shall not set a maximum height limit lower than 150 feet.
(ii)At least 25 percent of the total aggregate area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(iii)The city shall not set a maximum floor area ratio lower than six.
(iv)At least 25 percent of the total aggregate area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(v)The city shall not set a maximum density less than 200 dwelling units per acre.
(vi)At least 25 percent of the total aggregate area of all regional hub districts in a city shall not have a maximum density limit.
(B)The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).
(d)Both of the following apply to a downtown housing development:
(1)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.
(2)(A)Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
(B)If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i)It shall meet the standards of paragraph (6) of that subdivision.
(ii)It shall meet the standards of paragraph (8) of that subdivision.
(C)(i)The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.
(ii)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(iii)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(iv)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(e)(1)The California Housing Finance Agency shall conduct a housing construction loan and financing study that includes, but is not limited to, all of the following:
(A)An analysis of existing construction loan programs and housing construction loan programs implemented in California.
(B)An assessment of current gaps in housing construction loan availability for a state housing construction loan program, including, but not limited to, gaps that impede the production of the types of housing sought to be developed.
(C)A case study analysis identifying and examining appropriate precedents that address the gaps identified pursuant to subparagraph (B).
(D)Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, including, but not limited to, all of the following:
(i)Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.
(ii)Housing projects of varying sizes, including, but not limited to, missing middle housing projects and large, high-rise projects with the affordability and labor standards contemplated by this section.
(iii)Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.
(E)An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (D).
(F)Recommendations to mitigate increased lending risk and maximize leverage of state funds.
(G)Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.
(H)Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.
(2)The California Housing Finance Agency shall submit the study described in paragraph (1) to the Legislature, including, but not limited to, the Assembly Housing and Community Development Committee, the Assembly Local Government Committee, the Senate Local Government Committee, and the Senate Housing Committee, by March 1, 2028, in compliance with Section 9795.
(3)Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on April 1, 2028.
(f)This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
(g)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)(1)(A)At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local governments housing element at least seven days before submitting the draft revision to the department.
(B)The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county and provide these comments to each member of the legislative body before it adopts the housing element.
(C)The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(2)(A)At least 90 days prior to the initial adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, and at least 7 days prior to any subsequent adoption submittal if changes have occurred to the inventory of sites, a local government shall do both of the following:
(i)Make a draft of its inventory of sites required pursuant to paragraph (3) of subdivision (a) of Section 65583 available to the department and the public and post the draft inventory on its internet website.
(ii)Send an email to all individuals and organizations that have previously requested notices notifying them that the inventory has been updated that includes a link to the draft inventory on its website.
(B)The requirements of this paragraph shall apply to the seventh and each subsequent revision of the housing element.
(c)In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d)In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e)Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the departments findings are not available within the time limits set by this section, the legislative body may act without them.
(f)If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1)(A)Change the draft element or draft amendment to substantially comply with this article.
(B)Any change to a draft element or draft amendment pursuant to subparagraph (A) shall be completed in accordance with subdivision (b). This subparagraph does not constitute a change in, but is declaratory of, existing law.
(2)Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings that explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g)(1)Promptly following the adoption of its element or amendment, the planning agency shall submit a copy of the adopted element or amendment and any findings made pursuant to paragraph (2) of subdivision (f) to the department.
(2)This subdivision shall not be construed to excuse a legislative body from complying with subdivision (f). This paragraph does not constitute a change in, but is declaratory of, existing law.
(h)The department shall, within 60 days, review adopted housing elements or amendments and any findings pursuant to paragraph (2) of subdivision (f), make a finding as to whether the adopted element or amendment is in substantial compliance with this article, and report its findings to the planning agency.
(i)(1)(A)The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (C).
(B)If the department finds that the citys, countys, or city and countys action or failure to act does not substantially comply with its adopted housing element or its obligations pursuant to Section 65583, there shall be a rebuttable presumption of invalidity in any legal action challenging that action or failure to act.
(C)If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2)The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j)The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1)Housing Accountability Act (Section 65589.5).
(2)Section 65863.
(3)Chapter 4.3 (commencing with Section 65915).
(4)Section 65008.
(5)Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6)Section 8899.50.
(7)Section 65913.4.
(8)Article 11 (commencing with Section 65650).
(9)Article 12 (commencing with Section 65660).
(10)Section 65913.11.
(11)Section 65400.
(12)Section 65863.2.
(13)Chapter 4.1 (commencing with Section 65912.100).
(14)Section 65905.5.
(15)Chapter 13 (commencing with Section 66310).
(16)Section 65852.21.
(17)Section 65852.24.
(18)Section 66411.7.
(19)Section 65913.16.
(20)Article 2 (commencing with Section 66300.5) of Chapter 12.
(21)Section 65852.28.
(22)Section 65913.4.5.
(23)Section 66499.41.
(24)Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code).
(25)Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code).
(26)Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
(27)Article 11.5 (commencing with Section 65658).
(28)Section 65913.13.
(k)Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l)In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1)If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2)If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3)If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A)If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B)The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdictions housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the departments determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4)This subdivision does not limit a courts discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m)In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n)Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o)Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j), the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p)Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
(q)The amendments to this section made by the act adding this subdivision shall not be construed to limit the departments ability to enforce programmatic requirements or remedies against cities, counties, and continuums of care pursuant to the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code), the Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code), and the Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
SEC. 2.Section 65913.13 is added to the Government Code, to read:65913.13.(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district that meets all of the following conditions:
(A)It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
(B)It has a density of at least 60 dwelling units per acre.
(C)It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(D)It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
(E)It does not demolish any individually landmarked property on a local, state, or federal historic register.
(F)It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(G)The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
(2)Housing development project has the same meaning as defined in Section 65589.5.
(3)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(4)Regional transit hub district means a district designated pursuant to subdivision (b).
(5)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall do both of the following:
(i)Designate at least one regional transit hub district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall do both of the following:
(i)Designate at least one regional transit hub district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least one square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall do both of the following:
(i)Designate at least one regional transit hub district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least 1.5 square miles.
(2)A major transit city shall make the designation required by paragraph (1) by the applicable of the following:
(A)Resolution, if the major transit citys existing zoning code standards and zoning maps applicable to the regional transit hub district are consistent with the requirements of this section.
(B)Ordinance, if one or more amendments to the major transit citys existing zoning code standards or zoning maps applicable to the regional transit hub district are necessary to make the standards or maps consistent with the requirements of this section, in which case the ordinance shall also include those amendments.
(3)(A)Subject to the requirements of this paragraph, if a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the citys highest ridership transit-oriented development stop shall be deemed a regional transit hub district.
(B)The area described in subparagraph (A) shall comply with all of the following:
(i)It shall be located entirely within the major transit city.
(ii)It shall not occupy any portion of the San Francisco Bay.
(iii)It shall not occupy any portion of the Pacific Ocean.
(C)The portions of the area described in subparagraph (A) that are subject to clauses (ii), (iv), and (vi), inclusive, of subparagraph (A) of paragraph (2) of subdivision (c) shall be located in an equivalent area of uniform radius closest to the citys highest ridership transit-oriented development stop.
(D)The highest ridership transit-oriented development stop described in subparagraph (A) shall be determined by measuring the cumulative total ridership for all transit operators serving the stop over the course of the 12-month period between July 1, 2026, and July 1, 2027.
(4)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(5)A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
(6)The designation of a regional transit hub district pursuant to this subdivision, including, but not limited to, the enactment of an ordinance described in subparagraph (B) of paragraph (2), shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)(1)Each transit hub district shall meet all of the following requirements:
(A)It shall be a contiguous area of land.
(B)It shall have a land area of at least 0.25 square miles.
(C)It shall contain at least one transit-oriented development stop.
(2)(A)A regional transit hub district shall make a downtown housing development an allowable use and shall be subject to all of the following with respect to a downtown housing development:
(i)The city shall not set a maximum height limit lower than 150 feet.
(ii)At least 25 percent of the total aggregate area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(iii)The city shall not set a maximum floor area ratio lower than six.
(iv)At least 25 percent of the total aggregate area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(v)The city shall not set a maximum density less than 200 dwelling units per acre.
(vi)At least 25 percent of the total aggregate area of all regional hub districts in a city shall not have a maximum density limit.
(B)The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).
(d)Both of the following apply to a downtown housing development:
(1)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.
(2)(A)Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
(B)If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i)It shall meet the standards of paragraph (6) of that subdivision.
(ii)It shall meet the standards of paragraph (8) of that subdivision.
(C)(i)The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.
(ii)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(iii)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(iv)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(e)(1)The California Housing Finance Agency shall conduct a housing construction loan and financing study that includes, but is not limited to, all of the following:
(A)An analysis of existing construction loan programs and housing construction loan programs implemented in California.
(B)An assessment of current gaps in housing construction loan availability for a state housing construction loan program, including, but not limited to, gaps that impede the production of the types of housing sought to be developed.
(C)A case study analysis identifying and examining appropriate precedents that address the gaps identified pursuant to subparagraph (B).
(D)Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, including, but not limited to, all of the following:
(i)Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.
(ii)Housing projects of varying sizes, including, but not limited to, missing middle housing projects and large, high-rise projects with the affordability and labor standards contemplated by this section.
(iii)Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.
(E)An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (D).
(F)Recommendations to mitigate increased lending risk and maximize leverage of state funds.
(G)Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.
(H)Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.
(2)The California Housing Finance Agency shall submit the study described in paragraph (1) to the Legislature, including, but not limited to, the Assembly Housing and Community Development Committee, the Assembly Local Government Committee, the Senate Local Government Committee, and the Senate Housing Committee, by March 1, 2028, in compliance with Section 9795.
(3)Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on April 1, 2028.
(f)This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
(g)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.
(b)(1)(A)At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local governments housing element at least seven days before submitting the draft revision to the department.
(B)The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county and provide these comments to each member of the legislative body before it adopts the housing element.
(C)The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).
(2)(A)At least 90 days prior to the initial adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, and at least 7 days prior to any subsequent adoption submittal if changes have occurred to the inventory of sites, a local government shall do both of the following:
(i)Make a draft of its inventory of sites required pursuant to paragraph (3) of subdivision (a) of Section 65583 available to the department and the public and post the draft inventory on its internet website.
(ii)Send an email to all individuals and organizations that have previously requested notices notifying them that the inventory has been updated that includes a link to the draft inventory on its website.
(B)The requirements of this paragraph shall apply to the seventh and each subsequent revision of the housing element.
(c)In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.
(d)In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.
(e)Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the departments findings are not available within the time limits set by this section, the legislative body may act without them.
(f)If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:
(1)(A)Change the draft element or draft amendment to substantially comply with this article.
(B)Any change to a draft element or draft amendment pursuant to subparagraph (A) shall be completed in accordance with subdivision (b). This subparagraph does not constitute a change in, but is declaratory of, existing law.
(2)Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings that explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.
(g)(1)Promptly following the adoption of its element or amendment, the planning agency shall submit a copy of the adopted element or amendment and any findings made pursuant to paragraph (2) of subdivision (f) to the department.
(2)This subdivision shall not be construed to excuse a legislative body from complying with subdivision (f). This paragraph does not constitute a change in, but is declaratory of, existing law.
(h)The department shall, within 60 days, review adopted housing elements or amendments and any findings pursuant to paragraph (2) of subdivision (f), make a finding as to whether the adopted element or amendment is in substantial compliance with this article, and report its findings to the planning agency.
(i)(1)(A)The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (C).
(B)If the department finds that the citys, countys, or city and countys action or failure to act does not substantially comply with its adopted housing element or its obligations pursuant to Section 65583, there shall be a rebuttable presumption of invalidity in any legal action challenging that action or failure to act.
(C)If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.
(2)The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.
(j)The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:
(1)Housing Accountability Act (Section 65589.5).
(2)Section 65863.
(3)Chapter 4.3 (commencing with Section 65915).
(4)Section 65008.
(5)Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).
(6)Section 8899.50.
(7)Section 65913.4.
(8)Article 11 (commencing with Section 65650).
(9)Article 12 (commencing with Section 65660).
(10)Section 65913.11.
(11)Section 65400.
(12)Section 65863.2.
(13)Chapter 4.1 (commencing with Section 65912.100).
(14)Section 65905.5.
(15)Chapter 13 (commencing with Section 66310).
(16)Section 65852.21.
(17)Section 65852.24.
(18)Section 66411.7.
(19)Section 65913.16.
(20)Article 2 (commencing with Section 66300.5) of Chapter 12.
(21)Section 65852.28.
(22)Section 65913.4.5.
(23)Section 66499.41.
(24)Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code).
(25)Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code).
(26)Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
(27)Article 11.5 (commencing with Section 65658).
(28)Section 65913.13.
(k)Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).
(l)In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.
(1)If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(2)If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(3)If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:
(A)If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdictions failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.
(B)The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdictions housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the departments determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.
(4)This subdivision does not limit a courts discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).
(m)In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.
(n)Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.
(o)Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j), the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.
(p)Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).
(q)The amendments to this section made by the act adding this subdivision shall not be construed to limit the departments ability to enforce programmatic requirements or remedies against cities, counties, and continuums of care pursuant to the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code), the Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code), and the Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).
SECTION 1.SEC. 2.Section 65913.13 is added to the Government Code, to read:65913.13.(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district that meets all of the following conditions:
(A)It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
(B)It has a density of at least 60 dwelling units per acre.
(C)It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(D)It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
(E)It does not demolish any individually landmarked property on a local, state, or federal historic register.
(F)It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(G)The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
(2)Fund means the Downtown Revitalization Loan Fund established pursuant to subdivision (e).(3)(2)Housing development project has the same meaning as defined in Section 65589.5.
(4)(3)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(5)(4)Regional transit hub district means a district designated pursuant to subdivision (b).
(6)(5)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate do both of the following:
(i)Designate at least one regional transit hub district with a district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate do both of the following:
(i)Designate at least one regional transit hub district with a district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least one square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate do both of the following:
(i)Designate at least one regional transit hub district with a district.
(ii)Ensure that the total area of all regional transit hub districts in the major transit city is at least 1.5 square miles.
(2)A major transit city shall make the designation required by paragraph (1) by the applicable of the following:
(A)Resolution, if the major transit citys existing zoning code standards and zoning maps applicable to the regional transit hub district are consistent with the requirements of this section.
(B)Ordinance, if one or more amendments to the major transit citys existing zoning code standards or zoning maps applicable to the regional transit hub district are necessary to make the standards or maps consistent with the requirements of this section, in which case the ordinance shall also include those amendments.
(2)If(3)(A)Subject to the requirements of this paragraph, if a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the citys highest ridership transit-oriented development stop shall be deemed a regional transit hub district.
(B)The area described in subparagraph (A) shall comply with all of the following:
(i)It shall be located entirely within the major transit city.
(ii)It shall not occupy any portion of the San Francisco Bay.
(iii)It shall not occupy any portion of the Pacific Ocean.
(C)The portions of the area described in subparagraph (A) that are subject to clauses (ii), (iv), and (vi), inclusive, of subparagraph (A) of paragraph (2) of subdivision (c) shall be located in an equivalent area of uniform radius closest to the citys highest ridership transit-oriented development stop.
(D)The highest ridership transit-oriented development stop described in subparagraph (A) shall be determined by measuring the cumulative total ridership for all transit operators serving the stop over the course of the 12-month period between July 1, 2026, and July 1, 2027.
(3)(4)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(4)(5)A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
(5)(6)The designation of a regional transit hub district pursuant to this subdivision subdivision, including, but not limited to, the enactment of an ordinance described in subparagraph (B) of paragraph (2), shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)(1)Each transit hub district shall meet all of the following requirements:
(A)It shall be a contiguous area of land.
(B)It shall have a land area of at least 0.25 square miles.
(C)It shall contain at least one transit-oriented development stop.
(2)(A)A regional transit hub district shall make a downtown housing development an allowable use and shall be subject to all of the following: following with respect to a downtown housing development:
(i)The city shall not set a maximum height limit lower than 150 feet.
(ii)At least 25 percent of the total aggregate area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(iii)The city shall not set a maximum floor area ratio lower than six.
(iv)At least 25 percent of the total aggregate area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(v)The city shall not set a maximum density less than 200 dwelling units per acre.
(vi)At least 25 percent of the total aggregate area of all regional hub districts in a city shall not have a maximum density limit.
(B)The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).
(d)Both of the following apply to a downtown housing development:
(1)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.
(2)(A)Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
(B)If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i)It shall meet the standards of paragraph (6) of that subdivision.
(ii)It shall meet the standards of paragraph (8) of that subdivision.
(C)(i)The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.
(ii)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(iii)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(iv)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(e)(1)The California Housing Finance Agency shall conduct a housing construction loan and financing study that includes, but is not limited to, all of the following:
(A)An analysis of existing construction loan programs and housing construction loan programs implemented in California.
(B)An analysis of existing construction loan programs and housing construction loan programs implemented outside of California and how or whether those programs could be replicated in California.(B)An assessment of current gaps in housing construction loan availability for a state housing construction loan program, including, but not limited to, gaps that impede the production of the types of housing sought to be developed.
(C)A case study analysis identifying and examining appropriate precedents that address the gaps identified pursuant to subparagraph (B).
(C)(D)Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, including, but not limited to, all of the following:
(i)Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.
(ii)Housing projects of varying sizes, including, but not limited to, missing middle housing projects and large, high-rise projects with the affordability and labor standards contemplated by this section.
(iii)Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.
(D)(E)An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (C). (D).
(E)An analysis of the demand for housing construction loans for a state housing construction loan program serving the projects described in subparagraph (C), including, but not limited to, investor interest and demand, interest rates, market conditions that could drive demand, and any other financial considerations(F)An analysis of, and recommendations for, protecting the states and taxpayers financial interests.(F)Recommendations to mitigate increased lending risk and maximize leverage of state funds.
(G)Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.
(H)Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.
(2)The California Housing Finance Agency shall submit the study described in paragraph (1) to the Legislature, including, but not limited to, the Assembly Housing and Community Development Committee, the Assembly Local Government Committee, the Senate Local Government Committee, and the Senate Housing Committee, by December 1, 2027, March 1, 2028, in compliance with Section 9795.
(3)Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on January April 1, 2028.
(f)This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
(g)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 2.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district that meets all of the following conditions:
(A)It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
(B)It has a density of at least 60 dwelling units per acre.
(C)It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(D)It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
(E)It does not demolish any individually landmarked property on a local, state, or federal historic register.
(F)It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(G)The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
(2)Fund means the Downtown Revitalization Loan Fund established pursuant to subdivision (e).
(3)Housing development project has the same meaning as defined in Section 65589.5.
(4)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(5)Regional transit hub district means a district designated pursuant to subdivision (b).
(6)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least one square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1.5 square miles.
(2)If a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the citys highest ridership transit-oriented development stop shall be deemed a regional transit hub district.
(3)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(4)A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
(5)The designation of a regional transit hub district pursuant to this subdivision shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)(1)Each transit hub district shall meet all of the following requirements:
(A)It shall be a contiguous area of land.
(B)It shall have a land area of at least 0.25 square miles.
(C)It shall contain at least one transit-oriented development stop.
(2)(A)A regional transit hub district shall make a downtown housing development an allowable use and subject to all of the following:
(i)The city shall not set a maximum height limit lower than 150 feet.
(ii)At least 25 percent of the total area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(iii)The city shall not set a maximum floor area ratio lower than six.
(iv)At least 25 percent of the total area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(v)The city shall not set a maximum density less than 200 dwelling units per acre.
(vi)At least 25 percent of the total area of all regional hub districts in a city shall not have a maximum density limit.
(B)The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).
(d)Both of the following apply to a downtown housing development:
(1)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.
(2)(A)Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
(B)If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i)It shall meet the standards of paragraph (6) of that subdivision.
(ii)It shall meet the standards of paragraph (8) of that subdivision.
(C)(i)The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.
(ii)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(iii)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(iv)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(e)(1)The Downtown Revitalization Loan Fund is hereby established in the State Treasury.(2)Notwithstanding Section 13340, moneys deposited and maintained under this subdivision are continuously appropriated without regard to fiscal years to the California Housing Finance Agency for the purposes described in this subdivision.(3)Moneys in the fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:(A)The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan.(B)The amount loaned shall not exceed 30 percent of the project cost.(C)The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.(D)The applicant shall certify as a condition of the loan that they will comply with paragraph (8) of subdivision (a) of Section 65913.4.(4)Moneys received from repayments of loans under this subdivision shall be deposited into the fund and shall be available to make new loans pursuant to this subdivision.(5)(A)The California Housing Finance Agency may adopt any necessary rules and regulations to implement this subdivision, including, but not limited to, rules or regulations governing the issuance or timing of loans from the fund.(B)Regulations adopted pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2), and adoption of emergency regulations pursuant to this subparagraph shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.(6)The Legislature finds and declares that this section serves a public purpose of helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.(e)(1)The California Housing Finance Agency shall conduct a housing construction loan and financing study that includes, but is not limited to, all of the following:
(A)An analysis of existing construction loan programs and housing construction loan programs implemented in California.
(B)An analysis of existing construction loan programs and housing construction loan programs implemented outside of California and how or whether those programs could be replicated in California.
(C)Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, including, but not limited to, all of the following:
(i)Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.
(ii)Housing projects of varying sizes, including, but not limited to, missing middle housing projects and large, high-rise projects with the affordability and labor standards contemplated by this section.
(iii)Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.
(D)An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (C).
(E)An analysis of the demand for housing construction loans for a state housing construction loan program serving the projects described in subparagraph (C), including, but not limited to, investor interest and demand, interest rates, market conditions that could drive demand, and any other financial considerations
(F)An analysis of, and recommendations for, protecting the states and taxpayers financial interests.
(G)Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.
(H)Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.
(2)The California Housing Finance Agency shall submit the study described in paragraph (1) to the Legislature, including, but not limited to, the Assembly Housing and Community Development Committee, the Assembly Local Government Committee, the Senate Local Government Committee, and the Senate Housing Committee, by December 1, 2027, in compliance with Section 9795.
(3)Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on January 1, 2028.
(f)This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
(g)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district. district that meets all of the following conditions:
(A)It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
(B)It has a density of at least 60 dwelling units per acre.
(C)It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(D)It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
(E)It does not demolish any individually landmarked property on a local, state, or federal historic register.
(F)It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(2)Fund means the Downtown Revitalization Loan Fund established pursuant to subdivision (e).
(3)Housing development project has the same meaning as defined in Section 65589.5.
(4)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(5)Regional transit hub district means a district designated pursuant to subdivision (b).
(6)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1 one square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1.5 square miles.
(2)If a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the citys highest ridership transit-oriented development stop shall be deemed a regional transit hub district.
(2)(3)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(4)A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
(3)(5)The designation of a regional transit hub district pursuant to this subdivision shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)(1)Each transit hub district shall meet all of the following requirements:
(A)It shall be a contiguous area. area of land.
(B)It shall have a land area of at least 0.25 square miles.
(C)It shall contain at least one transit-oriented development stop.
(2)(A)A regional transit hub district shall make a downtown housing development an allowable use and subject to all of the following:
(i)The city shall not set a maximum height limit lower than 150 feet.
(ii)At least 25 percent of the total area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(iii)The city shall not set a maximum floor area ratio lower than 6. six.
(iv)At least 25 percent of the total area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(v)The city shall not set a maximum density less than 200 dwelling units per acre.
(vi)At least 25 percent of the total area of all regional hub districts in a city shall not have a maximum density limit.
(B)The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).
(d)All of the following apply to a downtown housing development:(1)It shall meet the standards of paragraph (8) of subdivision (a) of Section 65913.4.(d)Both of the following apply to a downtown housing development:
(2)(1)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.
(3)(2)(A)Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
(B)If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i)It shall meet the standards of paragraph (6) of that subdivision.
(ii)It shall meet the standards of paragraph (8) of that subdivision.
(4)(A)The(C)(i)The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.
(B)(ii)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(C)(iii)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(D)(iv)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(5)It shall have a density of at least 60 dwelling units per acre.(6)It shall include housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.(7)It shall meet the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.(8)It shall not demolish any individually landmarked property on a local, state, or federal historic register.(9)It shall be consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.(e)(1)The Downtown Revitalization Loan Fund is hereby established in the State Treasury.
(2)Notwithstanding Section 13340, moneys deposited and maintained under this subdivision are continuously appropriated without regard to fiscal years to the California Housing Finance Agency for the purposes described in this subdivision.
(3)Moneys in the fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:
(A)The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan.
(B)The amount loaned shall not exceed 30 percent of the project cost.
(C)The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.
(D)The applicant shall certify as a condition of the loan that they will comply with paragraph (8) of subdivision (a) of Section 65913.4.
(4)Moneys received from repayments of loans under this subdivision shall be deposited into the fund and shall be available to make new loans pursuant to this subdivision.
(5)(A)The California Housing Finance Agency may adopt any necessary rules and regulations to implement this subdivision, including, but not limited to, rules or regulations governing the issuance or timing of loans from the fund.
(B)Regulations adopted pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2), and adoption of emergency regulations pursuant to this subparagraph shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
(6)The Legislature finds and declares that this section serves a public purpose of helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
(f)This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
(f)(g)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district.
(2)Fund means the Downtown Revitalization Loan Fund established pursuant to subdivision (f). (e).
(3)Housing development project has the same meaning as defined in Section 65589.5.
(4)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(5)Regional transit hub district means a district designated pursuant to subdivision (b).
(6)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1 square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1.5 square miles.
(2)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(3)The designation of a regional transit hub district pursuant to this subdivision shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)(1)Each transit hub district shall meet all of the following requirements:
(1)(A)It shall be a contiguous area.
(2)(B)It shall have a land area of at least 0.25 square miles.
(3)(C)It shall contain at least one transit-oriented development stop.
(d)(1)A downtown housing development shall be an allowable use within a regional transit hub district, subject to all of the following requirements:(2)(A)A regional transit hub district shall make a downtown housing development an allowable use and subject to all of the following:
(A)(i)The city shall not set a maximum height limit lower than 150 feet.
(B)(ii)At least 25 percent of the total area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(C)(iii)The city shall not set a maximum floor area ratio lower than 6.
(D)(iv)At least 25 percent of the total area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(E)(v)The city shall not set a maximum density less than 200 dwelling units per acre.
(F)(vi)At least 25 percent of the total area of all regional hub districts in a city shall not have a maximum density limit.
(2)(B)The city may set other zoning standards objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in paragraph (1). subparagraph (A).
(e)(d)All of the following apply to a downtown housing development:
(1)It shall meet the labor standards of paragraph (8) of subdivision (a) of Section 65913.4 65913.4.(2)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, with using the requirements described in paragraph (1) of subdivision (d) serving of this section as the base zoning. density.
(3)It (A)Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4 and the project shall be exempt from subdivision (a) of that section. 65913.4.
(B)If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:
(i)It shall meet the standards of paragraph (6) of that subdivision.
(ii)It shall meet the standards of paragraph (8) of that subdivision.
(4)(A)The local government shall, as a condition of approval of the development, require the development proponent to complete a phase I environmental assessment.
(B)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(C)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(D)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(5)It shall have a density of at least 60 dwelling units per acre.
(6)It shall include housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(7)It shall meet the site eligibility requirements of subdivision subdivisions (g) and (h) of Section 65912.157.
(8)It shall not demolish any individually landmarked property on a local, state, or federal historic register.
(9)It shall be consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(f)(e)(1)The Downtown Revitalization Loan Fund is hereby established in the State Treasury.
(2)Notwithstanding Section 13340, moneys deposited and maintained under this subdivision are continuously appropriated without regard to fiscal years to the California Housing Finance Agency for the purposes described in this subdivision.
(3)Moneys in the fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:
(A)The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan.
(B)The amount loaned shall not exceed 30 percent of the project cost.
(C)The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.
(4)Moneys received from repayments of loans under this subdivision shall be deposited into the fund and shall be available to make new loans pursuant to this subdivision.
(5)(A)The California Housing Finance Agency may adopt any necessary rules and regulations to implement this subdivision, including, but not limited to, rules or regulations governing the issuance or timing of loans from the fund.
(B)Regulations adopted pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2), and adoption of emergency regulations pursuant to this subparagraph shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
(6)The Legislature finds and declares that this section serves a public purpose of helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
(g)This section does not override the height, noise, or safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.(h)(f)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)For purposes of this section:
(1)Downtown housing development means a housing development project within a regional transit hub district.
(2)Fund means the Downtown Revitalization Loan Fund established pursuant to subdivision (f).
(3)Housing development project has the same meaning as defined in Section 65589.5.
(4)Major transit city means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
(5)Regional transit hub district means a district designated pursuant to subdivision (b).
(6)Transit-oriented development stop has the same meaning as defined in Section 65912.156.
(b)(1)Subject to subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
(A)A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 0.5 square miles.
(B)A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1 square mile.
(C)A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one regional transit hub district with a total area of at least 1.5 square miles.
(2)Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
(3)The designation of a regional transit hub district pursuant to this subdivision shall not be considered a project for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(c)Each transit hub district shall meet all of the following requirements:
(1)It shall be a contiguous area.
(2)It shall have a land area of at least 0.25 square miles.
(3)It shall contain at least one transit-oriented development stop.
(d)(1)A downtown housing development shall be an allowable use within a regional transit hub district, subject to all of the following requirements:
(A)The city shall not set a maximum height limit lower than 150 feet.
(B)At least 25 percent of the total area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.
(C)The city shall not set a maximum floor area ratio lower than 6.
(D)At least 25 percent of the total area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.
(E)The city shall not set a maximum density less than 200 dwelling units per acre.
(F)At least 25 percent of the total area of all regional hub districts in a city shall not have a maximum density limit.
(2)The city may set other zoning standards that are consistent with the requirements described in paragraph (1).
(e)All of the following apply to a downtown housing development:
(1)It shall meet the labor standards of paragraph (8) of subdivision (a) of Section 65913.4
(2)It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, with the requirements described in paragraph (1) of subdivision (d) serving as the base zoning.
(3)It shall be eligible for streamlined ministerial approval pursuant to Section 65913.4 and the project shall be exempt from subdivision (a) of that section.
(4)(A)The local government shall, as a condition of approval of the development, require the development proponent to complete a phase I environmental assessment.
(B)If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(C)If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(D)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
(5)It shall have a density of at least 60 dwelling units per acre.
(6)It shall include housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
(7)It shall meet the site eligibility requirements of subdivision (h) of Section 65912.157.
(8)It shall not demolish any individually landmarked property on a local, state, or federal historic register.
(f)(1)The Downtown Revitalization Loan Fund is hereby established in the State Treasury.
(2)Notwithstanding Section 13340, moneys deposited and maintained under this subdivision are continuously appropriated without regard to fiscal years to the California Housing Finance Agency for the purposes described in this subdivision.
(3)Moneys in the fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:
(A)The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan.
(B)The amount loaned shall not exceed 30 percent of the project cost.
(C)The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.
(4)Moneys received from repayments of loans under this subdivision shall be deposited into the fund and shall be available to make new loans pursuant to this subdivision.
(5)(A)The California Housing Finance Agency may adopt any necessary rules and regulations to implement this subdivision, including, but not limited to, rules or regulations governing the issuance or timing of loans from the fund.
(B)Regulations adopted pursuant to subparagraph (A) may be adopted as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2), and adoption of emergency regulations pursuant to this subparagraph shall be deemed to be an emergency and necessary for the immediate preservation of public peace, health and safety, or general welfare.
(6)The Legislature finds and declares that this section serves a public purpose of helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
(g)This section does not override the height, noise, or safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.
(h)The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1. It is the intent of the Legislature to enact legislation that would do all of the following: (a)Define a major transit city as a city with a population greater than 400,000 and multiple transit-oriented development stops, as specified in Section 65912.156 of the Government Code. (b)Support transit-oriented housing development, high road labor standards, and downtown revitalization in major transit cities. (c)Establish land use standards appropriate for transit-oriented development in regional centers, and ensure that all major transit cities have areas designated to allow those land use standards. (d)Streamline ministerial approval for developments that meet high road labor standards in regional centers. (e)Establish a revolving loan fund, upon appropriation by the Legislature, to help finance the construction of qualifying developments in regional centers.It is the intent of the Legislature to enact legislation that would do all of the following:
(a)Define a major transit city as a city with a population greater than 400,000 and multiple transit-oriented development stops, as specified in Section 65912.156 of the Government Code.
(b)Support transit-oriented housing development, high road labor standards, and downtown revitalization in major transit cities.
(c)Establish land use standards appropriate for transit-oriented development in regional centers, and ensure that all major transit cities have areas designated to allow those land use standards.
(d)Streamline ministerial approval for developments that meet high road labor standards in regional centers.
(e)Establish a revolving loan fund, upon appropriation by the Legislature, to help finance the construction of qualifying developments in regional centers.
|
Date
|
Status
|
|---|---|
| Sep 29, 2026 | Chaptered by Secretary of State - Chapter 797, Statutes of 2026. |
| Sep 29, 2026 | Approved by the Governor. |
| Sep 10, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 30, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 66. Noes 9.). |
| Aug 30, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 66. Noes 9. Page 6867.). |
| Aug 30, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 28, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 28, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Aug 24, 2026 | Read second time. Ordered to third reading. |
| Aug 21, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 13, 2026 | Read second time. Ordered to third reading. |
| Aug 13, 2026 | From committee: Do pass. (Ayes 7. Noes 0.) (August 13). |
| Aug 3, 2026 | In committee: Referred to APPR. suspense file. |
| Jul 2, 2026 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 2, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (July 1). |
| Jul 1, 2026 | From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 6. Noes 0.) (June 30). Re-referred to Com. on L. GOV. |
| Jun 16, 2026 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HOUSING. |
| Jun 15, 2026 | Referred to Coms. on HOUSING and L. GOV. |
| Jun 1, 2026 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 28, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 64. Noes 6.) |
| May 28, 2026 | Read third time. Passed. Ordered to the Senate. (Ayes 64. Noes 6. Page 5525.) |
| May 18, 2026 | Read second time. Ordered to third 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: Do pass. (Ayes 12. Noes 2.) (May 14). |
| May 13, 2026 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 21, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 3.) (April 20). Re-referred to Com. on APPR. |
| Apr 16, 2026 | From committee: Do pass and re-refer to Com. on NAT. RES. (Ayes 8. Noes 1.) (April 15). Re-referred to Com. on NAT. RES. |
| Apr 13, 2026 | Re-referred to Com. on L. GOV. |
| Apr 13, 2026 | (Pending re-refer to Com. on NAT. RES.) |
| Apr 13, 2026 | Assembly Rule 56 suspended. |
| Apr 13, 2026 | Assembly Rule 56 suspended. (Page 4581.) |
| Apr 9, 2026 | Read second time and amended. |
| Apr 8, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on L. GOV. (Ayes 10. Noes 1.) (April 8). |
| Mar 23, 2026 | Re-referred to Com. on H. & C.D. |
| Mar 19, 2026 | Referred to Coms. on H. & C.D., L. GOV. and NAT. RES. |
| Mar 19, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Feb 19, 2026 | From printer. May be heard in committee March 21. |
| Feb 18, 2026 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2026 | AB 2074 Haney Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 28, 2026 | Assembly 3rd Reading AB2074 Haney et al. By Arreguín | Senate Floor |
Passed |
|
| Aug 13, 2026 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 3, 2026 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2026 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Local Government |
Passed |
|
| Jun 30, 2026 | Do pass, but first be re-referred to the Committee on [Local Government] | Senate Standing Committee on Housing |
Passed |
|
| May 28, 2026 | AB 2074 Haney Assembly Third Reading | Assembly Floor |
Passed |
|
| May 14, 2026 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 20, 2026 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
Passed |
|
| Apr 15, 2026 | Do pass and be re-referred to the Committee on [Natural Resources] | Assembly Standing Committee on Local Government |
Passed |
|
| Apr 8, 2026 | Do pass as amended and be re-referred to the Committee on [Local Government] | Assembly Standing Committee on Housing and Community Development |
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
|
|---|---|---|
| Big City Mayors | ** Support | |
| Bike Coalition San Diego County | ** Support | |
| Business For Good San Diego | ** Support | |
| Ca Black Chamber Of Commerce | ** Support | |
| Caity Maple, City of Sacramento Councilmember | ** Support | |
| California Big City Mayors Coalition | ** Support | |
| California Black Chamber of Commerce | ** Support | |
| California Downtown Association | ** Support | |
| California Housing Consortium | ** Against | |
| California Housing Partnership Corporation | ** Against | |
| California Yes in my Backyard (YIMBY) | ** Support | |
| California YIMBY | ** Support | |
| California Yimby (co-source) | ** Support | |
| Central City Association Of Los Angeles | ** Support | |
| Circulate Planning & Policy | ** Support | |
| City Of Anaheim | ** Support | |
| City of Bakersfield | ** Support | |
| City of Fresno | ** Support | |
| City of Irvine | ** Support | |
| City of Long Beach | ** Support | |
| City Of Los Angeles | ** Support | |
| City Of Oakland | ** Support | |
| City of Riverside | ** Support | |
| City Of Sacramento | ** Support | |
| City Of San Diego | ** Support | |
| City of San Francisco | ** Support | |
| City of San Jose | ** Support | |
| City of Stockton | ** Support | |
| Climate Action Campaign | ** Support | |
| Coalition For Clean Air | ** Support | |
| Downtown Los Angeles Residents Association | ** Support | |
| Downtown San Diego Partnership | ** Support | |
| Dtla Residents Association | ** Support | |
| Equitable Land Use Alliance | ** Against | |
| Families and Homes San Jose | ** Against | |
| Families and Homes San Jose (Unless Amended) | ** Against | |
| Greenbelt Alliance | ** Support | |
| Housing California | ** Against | |
| Mayor Matt Mahan, City of San Jose | ** Support | |
| Mission Street Neighbors | ** Against | |
| Sacramento Councilmember Caity Maple | ** Support | |
| San Diego County Bicycle Coalition | ** Support | |
| Southern California Black Chamber of Commerce | ** Support | |
| State Building & Construction Trades Council Of California | ** Support | |
| YIMBY Democrats of San Diego County | ** Support | |
| Zillow Group | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2074
Author:(Haney)
As Amended Ver:August 21, 2026
Majority vote
SUMMARY
Requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and requires the California Housing Finance Agency (CalHFA) to conduct a housing construction loan and financing study by March 1, 2028, as specified.
Senate Amendments
Amendments taken in the Senate:
- Removed the revolving loan fund provisions from the bill and replaced them with a CalHFA housing construction loan and financing study;
- Make several changes to the establishment of the downtown transit hub districts; and
- Require the California Department of Housing and Community Development (HCD) to notify a local government if they are in violation of this bill, permit HCD to notify the attorney general if a local government is in violation of this bill
COMMENTS
This Bill: This bill establishes a statewide framework to facilitate high-density housing development in downtown, transit-rich areas by requiring certain large cities with a population of at least 400,000 in the 2020 U.S. Census with at least two qualifying transit-oriented development (TOD) stops to designate "regional transit hub districts" of a specified minimum size based on population. Under the bill, Los Angeles (population over 2,000,000) must designate at least 1.5 square miles; San Diego and San Jose (population between 1,000,000 and 2,000,000) must designate at least 1 square mile; and San Francisco, Sacramento, Long Beach, and Oakland (population between 400,000 and 1,000,000) must each designate at least 0.5 square miles in districts, based on 2020 Census populations. Other cities may opt in and elect to designate a regional transit hub district.
Within these districts, this bill establishes minimum zoning standards that local governments must allow, including a base maximum height of at least 150 feet, with at least 25% of the district permitting heights of at least 450 feet; a minimum floor area ratio (FAR) of 6, with at least 25% of the district allowing an FAR of at least 12; a minimum density of 60 dwelling units per acre, and a density cap of no less than 200 dwelling units per acre, with at least 25% of the district allowing unlimited density. This bill prohibits cities from imposing lower caps and requires that housing be an allowable use throughout these areas, while still permitting local governments to adopt other zoning standards that do not conflict with these minimum thresholds. In effect, this bill establishes a statewide zoning floor overlay for downtown areas, increasing allowable development intensity in proximity to major transit.
Within these designated districts, qualifying "downtown housing developments" are subject to additional requirements and benefits. Projects must meet the same labor requirements currently included in SB 423 (Wiener), Chapter 778, Statutes of 2023, the same affordability requirements included in SB 79 (Wiener), Chapter 512, Statutes of 2025, and satisfy site eligibility and anti-displacement provisions. These qualifying downtown housing developments are eligible for ministerial, streamlined approval and are exempt from discretionary review processes, while still requiring environmental site assessments and remediation where necessary. Projects may also layer on additional incentives through the Density Bonus Law (DBL), with this bill's zoning standards serving as the applicable base zoning for calculating concessions, incentives, waivers, and reductions of development standards.
In addition, this bill requires CalHFA to complete a housing construction loan and financing study by March 1, 2028. The study must include an analysis of existing construction loan programs and housing construction loan programs in the state, an assessment of current gaps in housing construction loan availability for a state housing construction loan program, a case study analysis, recommendations for how a state construction loan program could function and facilitate various types of housing developments, an analysis of state resources needed to establish the revolving loan fund, recommendations to mitigate increased lending risks and maximize the leverage of state funds, feedback and input from stakeholders, and recommendations for implementation for a state construction loan program, including actions that do not require legislation.
According to the Author
"California's downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs. This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns."
Arguments in Support
California Yes in my Backyard (YIMBY), one of the bill sponsors, writes in support: "By requiring cities to designate transit-rich districts and allow substantial residential capacity, AB 2074 will unlock new housing opportunities in the places where homes are most sustainable, accessible, and economically productive—near jobs, transit, and existing infrastructure. This approach helps ensure that California's growth is directed to areas best suited to support vibrant, transit-oriented communities while reducing barriers that too often delay or prevent housing construction."
Arguments in Opposition
None on file for current bill version.
FISCAL COMMENTS
According to the Senate Appropriations Committee:
- CalHFA estimates one-time costs of up to $250,000 to conduct the required study, including contracted data analysis and staff time for coordination with stakeholders, data collection, and preparation of the final report. (General Fund)
- The Department of Housing and Community Development (HCD) estimates ongoing costs of approximately $236,000 annually for 1.0 PY of staff to update guidelines related to streamlined and ministerial provisions, and respond to an expected significant increase in technical assistance inquiries from housing advocates, local agencies and developers related to compliance with the bill, designation of districts, and processing of applications. (General Fund)
- The Department of Industrial Relations (DIR) estimates Labor Commissioner's Office costs of approximately $1.1 million in the first year and $1 million annually ongoing for oversight and enforcement activities related to prevailing wage and apprenticeship standards on projects constructed pursuant to the provisions of this bill. There would also be penalty revenue gains, potentially in the hundreds of thousands of dollars annually, to partially offset these costs. Actual costs and penalty revenues would depend upon the number of qualifying projects constructed under this bill and the number of complaints and referrals to the Division of Labor Standards and Enforcement that require enforcement actions, investigations, and appeals. (State Public Works Enforcement Fund)
- Unknown local mandated costs. The bill would impose new costs on seven major transit cities to establish regional transit hub districts and to revise planning requirements and considerations for specified housing development projects within those districts. These costs are not state-reimbursable because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates. (local funds)
VOTES:
ASM HOUSING AND COMMUNITY DEVELOPMENT: 10-1-1
YES: Haney, Patterson, Ward, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Wicks, Wilson
NO: Tangipa
ABS, ABST OR NV: Ta
ASM LOCAL GOVERNMENT: 8-1-1
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
NO: Johnson
ABS, ABST OR NV: Ta
ASM NATURAL RESOURCES: 11-3-0
YES: Bryan, Connolly, Garcia, Haney, Hoover, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur
NO: Ellis, Alanis, Macedo
ASM APPROPRIATIONS: 12-2-1
YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Dixon, Tangipa
ABS, ABST OR NV: Ta
ASSEMBLY FLOOR: 64-6-10
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Davies, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NO: DeMaio, Dixon, Macedo, Sanchez, Tangipa, Wallis
ABS, ABST OR NV: Castillo, Flora, Gallagher, Hadwick, Johnson, Lackey, Quirk-Silva, Celeste Rodriguez, Schiavo, Ta
UPDATED
VERSION: August 21, 2026
CONSULTANT: Dori Ganetsos / H. & C.D. / (916) 319-2085 FN: 0004162
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 2074 |
THIRD READING
Bill No: AB 2074
Author: Haney (D), et al.
Amended: 8/21/26 in Senate
Vote: 21
SENATE HOUSING COMMITTEE: 6-0, 6/30/26
AYES: Arreguín, Cabaldon, Cortese, Durazo, Grayson, Padilla
NO VOTE RECORDED: Seyarto, Caballero, Gonzalez, Ochoa Bogh
SENATE LOCAL GOVERNMENT COMMITTEE: 6-0, 7/1/26
AYES: Durazo, Arreguín, Ashby, Cervantes, Laird, Seyarto
NO VOTE RECORDED: Choi
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 64-6, 5/28/26 - See last page for vote
SUBJECT: Regional transit hub districts: downtown housing developments
State Building & Construction Trades Council of California
DIGEST:
This bill requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and requires the California Housing Finance Agency (CalHFA) to conduct a housing construction loan and financing study by March 1, 2028, as specified.
Senate Floor amendments of 8/21/26 make several changes to the establishment of the downtown transit hub districts, require HCD to notify a local government if they are in violation of this bill, permit HCD to notify the attorney general if a local government is in violation of this bill, and require the study to be completed by March 1, 2028.
ANALYSIS:
Existing law, pursuant to SB 79 (Wiener, Chapter 512, Statutes of 2025):
- Establishes the following definitions:
- “Adjacent” means within 200 feet of any pedestrian access point to a transit oriented development (TOD) stop. A parcel that meets any of the eligibility criteria under this bill and is adjacent to a Tier 1 TOD Stop or Tier 2 TOD Stop, as defined below, shall be eligible for an adjacency intensifier to increase the height limit by an additional 20 feet, the maximum density standard by an additional 40 dwelling units per acre, and the floor area ratio (FAR) by 1 prior to the application of Density Bonus Law.
- “Residential FAR” means the ratio of net habitable square footage dedicated to residential use to the area of the lot. A local government may not impose any other local development standard or combination of standards that would physically preclude the residential FAR established.
- “Tier 1 TOD stop” means a transit-oriented development stop with an urban transit county, served by heavy rail transit or very high frequency commuter rail.
- “Tier 2 TOD stop” excludes a Tier 1 TOD stop, and means a transit-oriented development stop with an urban transit county served by light rail transit, by high-frequency commuter rail, or by bus service, as specified. “Urban transit county” means a county with more than 15 passenger rail stations.
- “TOD stop” means a major transit stop or a stop on a route for which a preferred alternative has been selected or which are identified in a regional transportation improvement program, served by heavy rail transit, very high frequency commuter rail, high frequency commuter rail, light rail transit, or specified bus service within an urban county. When a new transit route is planned that was not identified in the applicable regional transportation plan on or before January 1, 2026, these stops shall not be eligible as a TOD stop unless they would be eligible as Tier 1 TOD stops. If a county becomes an urban transit county subsequent to July 1, 2026, then bus service in that county shall remain ineligible for designation of a transit-oriented development stop.
- “Urban transit county” means a county with more than 15 passenger rail stations.
- Provides that a housing development within a specified distance of a transit stop in a residential, mixed-use, or commercial zone shall be entitled to specified development standards pursuant to the table below. TOD housing development projects shall also meet the following requirements:
- The average total area of floor space for the proposed units in the transit-oriented housing development project shall not exceed 1,750 net habitable square feet, and
- The housing development project shall include at least five dwelling units and meet the greater of the following:
- A minimum density of at least 30 dwelling units per acre; or
- The minimum density required under the local zoning, if applicable.
TOD Stop Type | Dist. from Stop (TOD Zone) | Development Standards for Project
|
Tier 1: Major transit stop, heavy rail transit, or very high frequency commuter rail in urban transit county | ¼ mile from stop |
|
¼ - ½ mile from stop in city with population at least 35,000 |
| |
Tier 2: Not Tier 1 major transit stops served by light rail transit, high-frequency commuter rail, or bus rapid transit in an urban transit county | ¼ mile from stop |
|
¼ - ½ mile from stop in a city with a population at least 35,000 |
|
- Provides that for projects with more than 10 units, the project shall comply with one of the following requirements:
- Any of the following:
- At least 7% are dedicated to extremely low-income (ELI) households.
- At least 10% of the total units are dedicated to very low-income (VLI) households.
- At least 13% of the total units are dedicated to low-income households.
- If a local inclusionary housing requirement mandates a higher percentage or deeper level of affordability, then the local inclusionary housing standard shall apply.
- All units dedicated to ELI, VLI, or low-income households shall have an affordable cost or rent, as defined, and ensure the continued affordability of those units for 45 years for ownership or 55 years for rental units.
- Any of the following:
- Prohibits a transit housing development from being located on either of the following:
- A site containing more than two units where the development would require the demolition of housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power that has been occupied by tenants within the last seven years.
- A site that was previously used for more than two units of housing that was demolished within seven years before the development proponent submits an application under this section any of the units were subject to any form of rent or price control.
- Requires a TOD project to meet specified labor standards, including the provision of prevailing wages if the project is not entirely a public work, as specified, and projects over 85 feet shall employ a skilled and trained workforce, as specified.
- Requires Metropolitan Planning Organizations (MPOs) to create a map of TOD stops and zones established by SB 79 (Wiener, Chapter 512, Statutes of 2025)(SB 79).
- Delays implementation of SB 79 development standards until July 1, 2026, unless a local government adopts an ordinance or local TOD alternative plan deemed compliant by the Department of Housing and Community Development (HCD) before July 1, 2026. Delays implementation to unincorporated areas of a county until the 7th regional housing needs allocation cycle.
Existing state law:
- Authorizes California Housing Finance Agency (CalHFA) to make loans to housing sponsors for housing developments and to qualified mortgage lenders, among others. Provides that the primary purpose of CalHFA is to meet the housing needs of persons and families of low- or moderate-income.
This bill:
- Defines for purposes of this bill:
- “Downtown housing development” means a housing development project within a regional transit hub district that meets the following conditions:
- Labor Standards pursuant to SB 423 (Wiener, Chapter 778, Statutes of 2023) (SB 423).
- Requires a minimum density of 60 dwelling units per acre and an average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
- Meets the affordability requirements established in SB 79 for projects containing more than 10 units or the local inclusionary housing requirement, whichever has a higher percentage of affordable units or deeper level of affordability (see (3) in Existing Law).
- Requires the development proposed pursuant to the bill to comply with the anti-demolition standards established in SB 79 (see (4) in Existing Law).
- Prohibits the demolition of any individually landmarked property on a local, state, or federal historic register.
- Requires consistency with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zone, as specified.
- “Housing development project” means the same as a housing development project is defined in the Housing Accountability Act (HAA), generally a multiunit project that is at least two-thirds residential.
- “Major transit city” means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
- “Regional transit hub district” (district) means a district surrounding a transit stop designated by a city.
- “Transit-oriented development stop” (TOD stop) has the same meaning as defined in SB 79.
- “Downtown housing development” means a housing development project within a regional transit hub district that meets the following conditions:
- Requires each major transit city to comply with the applicable of the following:
- A major transit city with a population of at least 400,000 and less than 1 million in the most recent decennial census shall designate at least one district with a total area of at least 0.5 square miles.
- A major transit city with a population of at least 1 million and less than 2 million in the most recent decennial census shall designate at least one district with a total area of at least 1 square mile.
- A major transit city with a population of at least 2 million in the most recent decennial census shall designate at least one district with a total area of at least 1.5 square miles.
- Provides that if a major transit city does not comply with (2), then the equivalent area in a uniform radius around the city’s highest ridership TOD stop shall be deemed a regional transit hub district.
- Authorizes a major transit city to designate multiple hug districts so long as they cumulatively meet the requirements of (2).
- Provides that a city that is not a major transit city may designate a district.
- Provides that designation of a district pursuant to this bill shall not be considered a “project” for the purposes of the California Environmental Quality Act (CEQA).
- Requires districts to be a contiguous area of land at least .25 square miles containing at least one TOD stop.
- Requires that a downtown housing development be an allowable use in a district. Provides that a downtown housing development in a district is subject to all of the following:
- Prohibits a city from setting a maximum height limit lower than 150 feet.
- Requires at least 25% of the total area of all districts within a city to allow a maximum height of 450 feet.
- Prohibits a city from setting a maximum floor area ratio lower than six.
- Requires at least 25% of the total area of all districts within a city to allow a maximum floor area ratio of at least 12.
- Prohibits a city from setting a maximum density of less than 200 dwelling units per acre.
- Prohibits at least 25% of the total area of all districts in a city from having a maximum density limit.
- Allows a city to set other objective zoning standards, objective subdivision standards, and object design review standards related to a downtown housing development within a district that are consistent the requirements specified in of 6).
- Applies the following to a downtown housing development:
- Ability to quality for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to DBL or a local density bonus, using the requirements of the bill as the base density.
- Provides eligibility for streamlined ministerial approval pursuant to SB 423 without meeting the standards for a project under SB 423, except that the downtown housing development project is still restricted from using the ministerial process in SB 423 if the project is on an environmentally sensitive site.
- Requires the local government to, as a condition of approval, require the development proponent to complete a phase I environmental assessment, as specified.
- Requires the California Housing Finance Agency, but March 1, 2028, to conduct and submit to the relevant policy committees, a housing construction loan and financing study, including feedback from interested stakeholders, that includes, but is not limited to, all of the following:
- An analysis of existing construction loan programs and housing construction loan programs implemented in California and an assessment and case study analysis of current gaps in housing construction loan availability for a state housing construction loan program, including, but not limited to gaps that impeded the production of the types of housing sought to be developed.
- Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, as specified.
- An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (C).
- Recommendations to mitigate increased lending risk and maximize leverage of state funds.
Background
SB 79 Development Standards. Beginning July 1, 2026, SB 79 makes housing an allowable use on sites zoned residential, mixed-use, or commercial within one-half mile of an existing or currently proposed qualifying TOD stop in an “urban transit county” for jurisdictions with a population of at least 35,000 residents, and within one-quarter mile of the qualifying TOD stop for jurisdictions with a population of less than 35,000. For unincorporated areas of a county, implementation is delayed until the 7th housing element cycle begins. SB 79 projects must include at least five units, achieve the greater of 30 dwelling units per acre (du/acre) or meet the local minimum density requirements, and maintain an average unit size not exceeding 1,750 square feet. SB 79 projects over 10 units must include specified levels of affordable housing, comply with anti-displacement provisions of the Housing Crisis Act, and comply with specified labor standards.
Comments
- Author’s statement. “California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs. This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns.”
- High-rise housing projects near transit. This bill uses the existing legislative framework established by SB 79 (Wiener) by establishing TOD zoning standards that are typically higher than what a local agency has zoned the area for in its general plan near TOD stops. Specifically, this bill requires the following cities, based on population, to establish the following sized districts with at least one TOD stop:
- Los Angeles (population over 2 million) - at least 1.5 square miles;
- San Diego and San Jose (population between 1 million and 2 million) - at least 1 square mile; and,
- San Francisco, Sacramento, Long Beach, and Oakland (population between 400,000 and 1 million) - at least 0.5 square miles in districts.
Within the districts, housing shall be an allowable use, and the following development standards would apply to downtown housing developments:
- A city cannot impose a maximum height lower than 150 feet. At least 25% of the district or districts shall allow up to 450 feet;
- A city cannot set a maximum FAR lower than 6. At least 25% of the district or districts shall allow a maximum FAR of at least 12.
- A city cannot set a maximum density of less than 200 units per acre (u/a). At least 25% of the total area of district or districts shall have no maximum density requirements. The housing project shall be at least 60 u/a.
Additionally, these high-rise housing projects are eligible for streamlined ministerial approval and to utilize the benefits of DBL. Housing projects shall meet the same affordability, labor standards, and anti-demolition and anti-displacement provisions as SB 79 (Wiener). The intent is for each major transit city to designate at least district subject to the requirements above; they may establish more than one, so long as cumulatively the districts meet the overall size requirements. This bill also authorizes non-major transit cities to designate districts.
- Report on new innovative housing construction methods. Given the interest in identifying new and creative ways to finance housing projects, this bill requires CalHFA to issue a report that would evaluate and analyze: construction loan programs implemented elsewhere and how those models could be replicated in California; how a program could serve a range of income levels, project sizes (including smaller multifamily developments as well as high-rise buildings), and in various regions in the state, (including but not limited to the downtown areas contemplated by this bill); and recommendations to mitigate increased lending risk and maximize leverage of state funds. The report must be informed by feedback from interested stakeholders and include considerations for the Legislature to consider for adopting a state construction loan program and submit those recommendations to the Legislature by March 1, 2028.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- CalHFA estimates one-time costs of up to $250,000 to conduct the required study, including contracted data analysis and staff time for coordination with stakeholders, data collection, and preparation of the final report. (General Fund)
- The Department of Housing and Community Development (HCD) estimates ongoing costs of approximately $236,000 annually for 1.0 PY of staff to update guidelines related to streamlined and ministerial provisions, and respond to an expected significant increase in technical assistance inquiries from housing advocates, local agencies and developers related to compliance with the bill, designation of districts, and processing of applications. (General Fund)
- The Department of Industrial Relations (DIR) estimates Labor Commissioner’s Office costs of approximately $1.1 million in the first year and $1 million annually ongoing for oversight and enforcement activities related to prevailing wage and apprenticeship standards on projects constructed pursuant to the provisions of this bill. There would also be penalty revenue gains, potentially in the hundreds of thousands of dollars annually, to partially offset these costs. Actual costs and penalty revenues would depend upon the number of qualifying projects constructed under this bill and the number of complaints and referrals to the Division of Labor Standards and Enforcement that require enforcement actions, investigations, and appeals. (State Public Works Enforcement Fund)
- Unknown local mandated costs. The bill would impose new costs on seven major transit cities to establish regional transit hub districts and to revise planning requirements and considerations for specified housing development projects within those districts. These costs are not state-reimbursable because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates. (local funds)
SUPPORT: (Verified 8/20/26)
California Yimby (co-source)
State Building & Construction Trades Council of California (co-source)
Big City Mayors
Bike Coalition San Diego County
Business for Good San Diego
CA Black Chamber of Commerce
California Big City Mayors Coalition
California Black Chamber of Commerce
California Downtown Association
Central City Association of Los Angeles
City of Anaheim
City of Bakersfield
City of Fresno
City of Irvine
City of Long Beach
City of Los Angeles
City of Oakland
City of Riverside
City of Sacramento
City of San Diego
City of San Francisco
City of San Jose
City of Stockton
Climate Action Campaign
Coalition for Clean Air
Downtown Los Angeles Residents Association
Downtown San Diego Partnership
Dtla Residents Association
Greenbelt Alliance
Mayor Matt Mahan, City of San Jose
Sacramento Councilmember Caity Maple
Yimby Democrats of San Diego County
Zillow Group
OPPOSITION: (Verified 8/20/26)
None received.
ASSEMBLY FLOOR: 64-6, 5/28/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Davies, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Dixon, Macedo, Sanchez, Tangipa, Wallis
NO VOTE RECORDED: Castillo, Flora, Gallagher, Hadwick, Johnson, Lackey, Quirk-Silva, Celeste Rodriguez, Schiavo, Ta
Prepared by: Alison Hughes / HOUSING / (916) 651-4124
8/24/26 11:38:14
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 2074 |
THIRD READING
Bill No: AB 2074
Author: Haney (D), et al.
Amended: 7/2/26 in Senate
Vote: 21
SENATE HOUSING COMMITTEE: 6-0, 6/30/26
AYES: Arreguín, Cabaldon, Cortese, Durazo, Grayson, Padilla
NO VOTE RECORDED: Seyarto, Caballero, Gonzalez, Ochoa Bogh
SENATE LOCAL GOVERNMENT COMMITTEE: 6-0, 7/1/26
AYES: Durazo, Arreguín, Ashby, Cervantes, Laird, Seyarto
NO VOTE RECORDED: Choi
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 64-6, 5/28/26 - See last page for vote
SUBJECT: Regional transit hub districts: downtown housing developments
State Building & Construction Trades Council of California
DIGEST:
This bill requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and establishes a state revolving loan fund to support their construction.
ANALYSIS:
Existing law, pursuant to SB 79 (Wiener, Chapter 512, Statutes of 2025):
- Establishes the following definitions:
- “Adjacent” means within 200 feet of any pedestrian access point to a transit oriented development (TOD) stop. A parcel that meets any of the eligibility criteria under this bill and is adjacent to a Tier 1 TOD Stop or Tier 2 TOD Stop, as defined below, shall be eligible for an adjacency intensifier to increase the height limit by an additional 20 feet, the maximum density standard by an additional 40 dwelling units per acre, and the floor area ratio (FAR) by 1 prior to the application of Density Bonus Law.
- “Residential FAR” means the ratio of net habitable square footage dedicated to residential use to the area of the lot. A local government may not impose any other local development standard or combination of standards that would physically preclude the residential FAR established.
- “Tier 1 TOD stop” means a transit-oriented development stop with an urban transit county, served by heavy rail transit or very high frequency commuter rail.
- “Tier 2 TOD stop” excludes a Tier 1 TOD stop, and means a transit-oriented development stop with an urban transit county served by light rail transit, by high-frequency commuter rail, or by bus service, as specified. “Urban transit county” means a county with more than 15 passenger rail stations.
- “TOD stop” means a major transit stop or a stop on a route for which a preferred alternative has been selected or which are identified in a regional transportation improvement program, served by heavy rail transit, very high frequency commuter rail, high frequency commuter rail, light rail transit, or specified bus service within an urban county. When a new transit route is planned that was not identified in the applicable regional transportation plan on or before January 1, 2026, these stops shall not be eligible as a TOD stop unless they would be eligible as Tier 1 TOD stops. If a county becomes an urban transit county subsequent to July 1, 2026, then bus service in that county shall remain ineligible for designation of a transit-oriented development stop.
- “Urban transit county” means a county with more than 15 passenger rail stations.
- Provides that a housing development within a specified distance of a transit stop in a residential, mixed-use, or commercial zone shall be entitled to specified development standards pursuant to the table below. TOD housing development projects shall also meet the following requirements:
- The average total area of floor space for the proposed units in the transit-oriented housing development project shall not exceed 1,750 net habitable square feet, and
- The housing development project shall include at least five dwelling units and meet the greater of the following:
- A minimum density of at least 30 dwelling units per acre; or
- The minimum density required under the local zoning, if applicable.
TOD Stop Type | Dist. from Stop (TOD Zone) | Development Standards for Project
|
Tier 1: Major transit stop, heavy rail transit, or very high frequency commuter rail in urban transit county | ¼ mile from stop |
|
¼ - ½ mile from stop in city with population at least 35,000 |
| |
Tier 2: Not Tier 1 major transit stops served by light rail transit, high-frequency commuter rail, or bus rapid transit in an urban transit county | ¼ mile from stop |
|
¼ - ½ mile from stop in a city with a population at least 35,000 |
|
- Provides that for projects with more than 10 units, the project shall comply with one of the following requirements:
- Any of the following:
- At least 7% are dedicated to extremely low-income (ELI) households.
- At least 10% of the total units are dedicated to very low-income (VLI) households.
- At least 13% of the total units are dedicated to low-income households.
- If a local inclusionary housing requirement mandates a higher percentage or deeper level of affordability, then the local inclusionary housing standard shall apply.
- All units dedicated to ELI, VLI, or low-income households shall have an affordable cost or rent, as defined, and ensure the continued affordability of those units for 45 years for ownership or 55 years for rental units.
- Any of the following:
- Prohibits a transit housing development from being located on either of the following:
- A site containing more than two units where the development would require the demolition of housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power that has been occupied by tenants within the last seven years.
- A site that was previously used for more than two units of housing that was demolished within seven years before the development proponent submits an application under this section any of the units were subject to any form of rent or price control.
- Requires a TOD project to meet specified labor standards, including the provision of prevailing wages if the project is not entirely a public work, as specified, and projects over 85 feet shall employ a skilled and trained workforce, as specified.
- Requires Metropolitan Planning Organizations (MPOs) to create a map of TOD stops and zones established by SB 79 (Wiener, Chapter 512, Statutes of 2025)(SB 79).
- Delays implementation of SB 79 development standards until July 1, 2026, unless a local government adopts an ordinance or local TOD alternative plan deemed compliant by the Department of Housing and Community Development (HCD) before July 1, 2026. Delays implementation to unincorporated areas of a county until the 7th regional housing needs allocation cycle.
Existing state law:
- Authorizes California Housing Finance Agency (CalHFA) to make loans to housing sponsors for housing developments and to qualified mortgage lenders, among others. Provides that the primary purpose of CalHFA is to meet the housing needs of persons and families of low- or moderate-income.
This bill:
- Defines for purposes of this bill:
- “Downtown housing development” means a housing development project within a regional transit hub district that meets the following conditions:
- Labor Standards pursuant to SB 423 (Wiener, Chapter 778, Statutes of 2023) (SB 423).
- Requires a minimum density of 60 dwelling units per acre and an average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
- Meets the affordability requirements established in SB 79 for projects containing more than 10 units or the local inclusionary housing requirement, whichever has a higher percentage of affordable units or deeper level of affordability (see (3) in Existing Law).
- Requires the development proposed pursuant to the bill to comply with the anti-demolition standards established in SB 79 (see (4) in Existing Law).
- Prohibits the demolition of any individually landmarked property on a local, state, or federal historic register.
- Requires consistency with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zone, as specified.
- “Housing development project” means the same as a housing development project is defined in the Housing Accountability Act (HAA), generally a multiunit project that is at least two-thirds residential.
- “Major transit city” means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
- “Regional transit hub district” (district) means a district surrounding a transit stop designated by a city.
- “Transit-oriented development stop” (TOD stop) has the same meaning as defined in SB 79.
- “Downtown housing development” means a housing development project within a regional transit hub district that meets the following conditions:
- Requires each major transit city to comply with the applicable of the following:
- A major transit city with a population of at least 400,000 and less than 1 million in the most recent decennial census shall designate at least one district with a total area of at least 0.5 square miles.
- A major transit city with a population of at least 1 million and less than 2 million in the most recent decennial census shall designate at least one district with a total area of at least 1 square mile.
- A major transit city with a population of at least 2 million in the most recent decennial census shall designate at least one district with a total area of at least 1.5 square miles.
- Provides that if a major transit city does not comply with (2), then the equivalent area in a uniform radius around the city’s highest ridership TOD stop shall be deemed a regional transit hub district.
- Authorizes a major transit city to designate multiple hug districts so long as they cumulatively meet the requirements of (2).
- Provides that a city that is not a major transit city may designate a district.
- Provides that designation of a district pursuant to this bill shall not be considered a “project” for the purposes of the California Environmental Quality Act (CEQA).
- Requires districts to be a contiguous area of land at least .25 square miles containing at least one TOD stop.
- Requires that a downtown housing development be an allowable use in a district. Provides that a downtown housing development in a district is subject to all of the following:
- Prohibits a city from setting a maximum height limit lower than 150 feet.
- Requires at least 25% of the total area of all districts within a city to allow a maximum height of 450 feet.
- Prohibits a city from setting a maximum floor area ratio lower than six.
- Requires at least 25% of the total area of all districts within a city to allow a maximum floor area ratio of at least 12.
- Prohibits a city from setting a maximum density of less than 200 dwelling units per acre.
- Prohibits at least 25% of the total area of all districts in a city from having a maximum density limit.
- Allows a city to set other objective zoning standards, objective subdivision standards, and object design review standards related to a downtown housing development within a district that are consistent the requirements specified in of 6).
- Applies the following to a downtown housing development:
- Ability to quality for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to DBL or a local density bonus, using the requirements of the bill as the base density.
- Provides eligibility for streamlined ministerial approval pursuant to SB 423 without meeting the standards for a project under SB 423, except that the downtown housing development project is still restricted from using the ministerial process in SB 423 if the project is on an environmentally sensitive site.
- Requires the local government to, as a condition of approval, require the development proponent to complete a phase I environmental assessment, as specified.
- Requires the California Housing Finance Agency, but December 1, 2027, to conduct and submit to the relevant policy committees, a housing construction loan and financing study, including feedback from interested stakeholders, that includes, but is not limited to, all of the following:
- An analysis of existing construction loan programs and housing construction loan programs implemented in California and outside of California and how or whether those programs could be replicated in California.
- Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, as specified.
- An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (C).
- An analysis of the demand for housing construction loans for a state housing construction loan program serving the projects described in subparagraph (C), including, but not limited to, investor interest and demand, interest rates, market conditions that could drive demand, any other financial considerations, and protecting the state’s and taxpayers’ financial interests.
Background
SB 79 Development Standards. Beginning July 1, 2026, SB 79 makes housing an allowable use on sites zoned residential, mixed-use, or commercial within one-half mile of an existing or currently proposed qualifying TOD stop in an “urban transit county” for jurisdictions with a population of at least 35,000 residents, and within one-quarter mile of the qualifying TOD stop for jurisdictions with a population of less than 35,000. For unincorporated areas of a county, implementation is delayed until the 7th housing element cycle begins. SB 79 projects must include at least five units, achieve the greater of 30 dwelling units per acre (du/acre) or meet the local minimum density requirements, and maintain an average unit size not exceeding 1,750 square feet. SB 79 projects over 10 units must include specified levels of affordable housing, comply with anti-displacement provisions of the Housing Crisis Act, and comply with specified labor standards.
Comments
- Author’s statement. “California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs. This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns.”
- High-rise housing projects near transit. This bill uses the existing legislative framework established by SB 79 (Wiener) by establishing TOD zoning standards that are typically higher than what a local agency has zoned the area for in its general plan near TOD stops. Specifically, this bill requires the following cities, based on population, to establish the following sized districts with at least one TOD stop:
- Los Angeles (population over 2 million) - at least 1.5 square miles;
- San Diego and San Jose (population between 1 million and 2 million) - at least 1 square mile; and,
- San Francisco, Sacramento, Long Beach, and Oakland (population between 400,000 and 1 million) - at least 0.5 square miles in districts.
Within the districts, housing shall be an allowable use, and the following development standards would apply to downtown housing developments:
- A city cannot impose a maximum height lower than 150 feet. At least 25% of the district or districts shall allow up to 450 feet;
- A city cannot set a maximum FAR lower than 6. At least 25% of the district or districts shall allow a maximum FAR of at least 12.
- A city cannot set a maximum density of less than 200 units per acre (u/a). At least 25% of the total area of district or districts shall have no maximum density requirements. The housing project shall be at least 60 u/a.
Additionally, these high-rise housing projects are eligible for streamlined ministerial approval and to utilize the benefits of DBL. Housing projects shall meet the same affordability, labor standards, and anti-demolition and anti-displacement provisions as SB 79 (Wiener). The intent is for each major transit city to designate at least district subject to the requirements above; they may establish more than one, so long as cumulatively the districts meet the overall size requirements. This bill also authorizes non-major transit cities to designate districts.
- Report on new innovative housing construction methods. Given the interest in identifying new and creative ways to finance housing projects, this bill requires CalHFA to issue a report that would evaluate and analyze: construction loan programs implemented elsewhere and how those models could be replicated in California; how a program could serve a range of income levels, project sizes (including smaller multifamily developments as well as high-rise buildings), and in various regions in the state, (including but not limited to the downtown areas contemplated by this bill); and the demand for such a program including investor interest and ways to protect state and taxpayer interests. The report must be informed by feedback from interested stakeholders and also include considerations for the Legislature to consider for adopting a state construction loan program and submit those recommendations to the Legislature by December 21, 2027.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- CalHFA estimates one-time costs of up to $250,000 to conduct the required study, including contracted data analysis and staff time for coordination with stakeholders, data collection, and preparation of the final report. (General Fund)
- The Department of Housing and Community Development (HCD) estimates ongoing costs of approximately $236,000 annually for 1.0 PY of staff to update guidelines related to streamlined and ministerial provisions, and respond to an expected significant increase in technical assistance inquiries from housing advocates, local agencies and developers related to compliance with the bill, designation of districts, and processing of applications. (General Fund)
- The Department of Industrial Relations (DIR) estimates Labor Commissioner’s Office costs of approximately $1.1 million in the first year and $1 million annually ongoing for oversight and enforcement activities related to prevailing wage and apprenticeship standards on projects constructed pursuant to the provisions of this bill. There would also be penalty revenue gains, potentially in the hundreds of thousands of dollars annually, to partially offset these costs. Actual costs and penalty revenues would depend upon the number of qualifying projects constructed under this bill and the number of complaints and referrals to the Division of Labor Standards and Enforcement that require enforcement actions, investigations, and appeals. (State Public Works Enforcement Fund)
- Unknown local mandated costs. The bill would impose new costs on seven major transit cities to establish regional transit hub districts and to revise planning requirements and considerations for specified housing development projects within those districts. These costs are not state-reimbursable because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates. (local funds)
SUPPORT: (Verified 8/13/26)
California Yimby (co-source)
State Building & Construction Trades Council of California (co-source)
Big City Mayors
Bike Coalition San Diego County
Business for Good San Diego
CA Black Chamber of Commerce
California Big City Mayors Coalition
California Black Chamber of Commerce
California Downtown Association
Central City Association of Los Angeles
City of Anaheim
City of Bakersfield
City of Fresno
City of Irvine
City of Long Beach
City of Los Angeles
City of Oakland
City of Riverside
City of Sacramento
City of San Diego
City of San Francisco
City of San Jose
City of Stockton
Climate Action Campaign
Coalition for Clean Air
Downtown Los Angeles Residents Association
Downtown San Diego Partnership
Dtla Residents Association
Greenbelt Alliance
Mayor Matt Mahan, City of San Jose
Sacramento Councilmember Caity Maple
Yimby Democrats of San Diego County
Zillow Group
OPPOSITION: (Verified 8/13/26)
None received
ASSEMBLY FLOOR: 64-6, 5/28/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Chen, Connolly, Davies, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Dixon, Macedo, Sanchez, Tangipa, Wallis
NO VOTE RECORDED: Castillo, Flora, Gallagher, Hadwick, Johnson, Lackey, Quirk-Silva, Celeste Rodriguez, Schiavo, Ta
Prepared by: Alison Hughes / HOUSING / (916) 651-4124
8/15/26 10:15:34
**** END ****
SENATE COMMITTEE ON
Senator Sabrina Cervantes, Chair
2025 - 2026 Regular Session
AB 2074 (Haney) - Regional transit hub districts: downtown housing developments
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 2074 would require specified “major transit cities” to designate one or more “regional transit hub districts,” and makes certain housing development projects within those districts an allowable use by-right, subject to specified labor and affordability standards. The bill would also require the California Housing Finance Agency (CalHFA) to conduct a specified housing construction loan and financing study and submit it to the Legislature by December 31, 2027.
Fiscal Impact:
- CalHFA estimates one-time costs of up to $250,000 to conduct the required study, including contracted data analysis and staff time for coordination with stakeholders, data collection, and preparation of the final report. (General Fund)
- The Department of Housing and Community Development (HCD) estimates ongoing costs of approximately $236,000 annually for 1.0 PY of staff to update guidelines related to streamlined and ministerial provisions, and respond to an expected significant increase in technical assistance inquiries from housing advocates, local agencies and developers related to compliance with the bill, designation of districts, and processing of applications. (General Fund)
- The Department of Industrial Relations (DIR) estimates Labor Commissioner’s Office costs of approximately $1.1 million in the first year and $1 million annually ongoing for oversight and enforcement activities related to prevailing wage and apprenticeship standards on projects constructed pursuant to the provisions of this bill. There would also be penalty revenue gains, potentially in the hundreds of thousands of dollars annually, to partially offset these costs. Actual costs and penalty revenues would depend upon the number of qualifying projects constructed under this bill and the number of complaints and referrals to the Division of Labor Standards and Enforcement that require enforcement actions, investigations, and appeals. (State Public Works Enforcement Fund)
- Unknown local mandated costs. The bill would impose new costs on seven major transit cities to establish regional transit hub districts and to revise planning requirements and considerations for specified housing development projects within those districts. These costs are not state-reimbursable because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates. (local funds)
Background:
Under current law, cities and counties have the authority to regulate behavior to preserve the health, safety, and welfare of the public, including land use authority. Specifically, they can enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, minimum numbers of required parking spaces, setbacks to preserve privacy, and lot coverage ratios to increase open space. Such ordinances can also include conditions on development to address aesthetics, community impacts, or other particular site-specific considerations. Zoning ordinances and other development decisions must be consistent with the city or county’s general plan.
Local governments generally 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. Projects reviewed ministerially require only an administrative review designed to ensure they are consistent with existing general plan and zoning rules, as well as meet standards for building quality, health, and safety. Most large housing projects are not allowed ministerial review. Instead, these projects are vetted through both public hearings and administrative review, including design review and appeals processes. Most housing projects that require discretionary review and approval are subject to California Environmental Quality Act (CEQA) review, while projects permitted ministerially are not.
In 2017, the Legislature enacted SB 35 (Wiener) to provide for a streamlined, ministerial process for approving housing developments that are in compliance with the applicable objective local planning standards, including the general plan, zoning ordinances, and objective design review standards. SB 35 sought to enable developments that face local opposition, but are consistent with local objective development standards, to be constructed. To be eligible for streamlining under the bill, a specified percentage of the total housing units in the development must be affordable to lower-income households, and projects must be constructed using a skilled and trained workforce, as specified.
In 2023, SB 423 (Wiener) extended AB 35’s sunset until January 1, 2036, but also made many significant modifications to the original bill, including (1) authorizing SB 35 to apply within the coastal zone, beginning January 1, 2025, consistent with the applicable local coastal plan or land use plan, except in areas that are environmentally sensitive or hazardous, (2) requiring that, in jurisdictions not meeting their housing targets for above moderate-households, projects eligible for SB 35 streamlining must contain at least 10 percent of the units affordable to very low-income households (i.e., 50 percent of the area median income (AMI) or below), and (3) amending labor standards that apply to projects over 85 feet in height above grade. Applicable labor standards include requirements to pay prevailing wages (enforced by the Labor Commissioner), and additional standards apply to projects of 50 or more units, including requirements for project proponents to certify with a local agency that contractors will be paid prevailing wages, and for contractors to participate in an apprenticeship program and make health care expenditures for each employee, as specified, and subject proponents to additional compliance reporting regarding payroll records, the apprenticeship program participation, and health care requirements.
Last year, SB 79 (Wiener) was enacted to make certain transit-oriented development (TOD) projects an allowable use on any site zoned for residential, commercial, or mixed use and benefit from specified “upzoned” development standards providing for specified height limits, increased maximum densities, and floor area ratios depending on proximity to a transit stop and type of transit stop. TOD projects with more than 10 units must comply with any of the following affordability requirements: at least 7% of the total units are dedicated to extremely low-income households, at least 10% of the units are dedicated to very low-income households, or at least 13% of the units are dedicated to low-income households. If a local inclusionary housing ordinance mandates a higher percentage or deeper affordability level, then the local inclusionary standards apply. A TOD project must also comply with specified SB 423 labor standards, including the provision of prevailing wages if the project is not entirely a public work, and projects that are over 85 feet, as specified. TOD projects may not be constructed on specified sites that would require demolition of rent control units or sites subject to rent control within the past seven years.
Proposed Law:
AB 2074 would require specified “major transit cities” to designate one or more “regional transit hub districts,” and makes certain housing development projects within those districts an allowable use by-right, subject to specified labor and affordability standards. Specifically, among other things, this bill would to the following:
- Require each major transit city (a city with a population of at least 400,000 that contains at least two TOD stops, as defined in SB 79), and authorize other cities, to establish a regional transit hub district (district) by July 1, 2027 that includes at least one TOD stop as follows:
- A major transit city with a population of 400,000 to 1 million must designate at least one district with a total area of at least 0.5 square miles.
- A major transit city with a population of 1 million to 2 million must designate at least one district with a total area of at least 1 square mile.
- A major transit city with a population of over 2 million must designate at least one district with a total area of at least 1.5 square miles.
- Authorize a city to create multiple districts to comply with the bill’s requirements, and specify that if a city fails to establish a district, then the district boundaries would be the area surrounding the city’s highest ridership TOD.
- Exempt the designation of a district from CEQA.
- Define a “downtown housing development” as a housing development project that meets all of the following conditions:
- Complies with SB 423 labor standards, as specified.
- Has a density of at least 60 units per acre.
- Meets SB 79 affordability requirements, as specified.
- Meets SB 79 site eligibility requirements, as specified.
- Does not demolish any individually landmarked property on a local, state, or federal historic register.
- Is consistent with airport land use planning, as specified.
- Require a district to make downtown housing developments an allowable use subject to all the following:
- The city cannot set a maximum height limit lower than 150 feet.
- At least 25% of the total area of all the city’s RTHDs must allow a maximum height of at least 450 feet.
- Cities cannot set a maximum floor area ratio (FAR) lower than 6.
- At least 25% of the total area of all the city’s RTHDs must allow a maximum FAR of at least 12.
- Cities cannot set a maximum density less than 200 dwelling units per acre.
- At least 25% of the total area of all the city’s RTHDs must not have a maximum density limit.
- The city may set other objective standards related to a downtown housing development within a RTHD if they are consistent with the measure’s requirements.
- Specify that both of the following apply to a downtown housing development:
- The project may qualify for a density bonus and other incentives, concessions, and standards applicable in density bonus law or local density bonus program, using the bill’s requirements as the base density.
- Require projects in the bill to qualify for streamlined ministerial approval under SB 423’s requirements, but those projects would be exempt from specified requirements of SB 423 except specified labor and site eligibility standards must still be met.
- Require local agencies to require projects subject to this bill to complete a phase I environmental assessment, and take specified actions if certain environmental or hazardous conditions are found.
- Require CalHFA to conduct a housing construction loan and financing study that includes detailed specified analyses and recommendations, and to submit the study to the Legislature by December 31, 2027.
Related Legislation:
SB 79 (Wiener), Chap. 512/2025, made specified TOD projects an allowable use by right on any site zoned for residential, commercial, and mixed use, subject to specified labor standards and affordability criteria.
SB 423 (Wiener), Chap. 778/2023, expanded the applicability of a streamlined, ministerial approval process for certain infill, multifamily, mixed-income housing projects that are proposed in local jurisdictions that have not met regional housing needs if the projects meet specific labor standards and affordability criteria.
AB 2011 (Wicks), Chap. 647/2022, created a ministerial, streamlined approval process for 100% affordable housing projects in commercial zones and for mixed-income housing projects along commercial corridors. The bill also imposed specified labor standards on those projects, including requirements that contractors pay prevailing wages, participate in apprenticeship programs, and make specified healthcare expenditures.
Staff Comments:
The bill’s mandated local costs would not be subject to state reimbursement because local agencies have the authority to charge and adjust planning and permitting fees as necessary to cover administrative costs. Existing law authorizes planning and zoning fees to “include the costs reasonably necessary to prepare and revise the plans and policies that a local agency is required to adopt before it can make any necessary findings and determinations.” Case law and previous decisions by the Commission on State Mandates support the position that local governments’ planning costs are not reimbursable when the state imposes new planning mandates.
Recommended Amendments:
The bill was amended in policy committee to delete provisions establishing a Downtown Revitalization Loan Fund, but a definitional provision still references that fund. The bill should be amended to delete that provision on page 3, lines 22-23 of the bill (Gov.Code Sec. 65913.13 (a)(2)).
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SENATE COMMITTEE ON LOCAL GOVERNMENT
Senator María Elena Durazo, Chair
2025 - 2026 Regular
Bill No: | AB 2074 | Hearing Date: | 7/1/26 |
Author: | Haney | Fiscal: | Yes |
Version: | 6/16/26 | Consultant: | Peterson |
Regional transit hub districts: downtown housing developments
Requires cities with 400,000 residents or more to establish at least one regional transit hub district, and makes specified housing projects an allowable use in these districts.
Background
Land use. 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 use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, minimum numbers of required parking spaces, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. These ordinances can also include conditions on development to address aesthetics, community impacts, or other particular site-specific considerations. Zoning ordinances and other development decisions must be consistent with the city or county’s general plan.
California’s housing crisis. California has the largest concentration of severely unaffordable housing markets in the nation, with the average home value in California at $773,363. To keep up with demand, the Department of Housing and Community Development (HCD) estimates that California must plan for the development of more than 2.5 million homes over the next eight years. Many economists point to zoning constraints as a cost driver. Last year, the Legislature passed SB 79 (Wiener, 2025) to remove some of these zoning constraints on projects near transit stops. Building housing near transit is also a strategy to combat climate change, since it can reduce reliance on automobile travel.
Housing streamlining laws. 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. In 2017, the Legislature enacted a substantial package of legislation aimed at addressing the state’s housing crisis. Among others, the Legislature enacted SB 35 (Wiener) to provide for a streamlined, ministerial process for approving housing developments that are in compliance with the applicable objective local planning standards—including the general plan, zoning ordinances, and objective design review standards. SB 35 was intended to enable developments that face local opposition, but are consistent with local objective development standards, to be constructed. To be eligible for streamlining under SB 35, a specified percentage of the total housing units in the development must be affordable to lower-income households.
SB 423 (Wiener, 2023) extended the sunset for SB 35 until January 1, 2036, and made many changes to SB 35’s provisions. Some of the most significant changes included to:
- Authorize SB 35 to apply within the coastal zone, beginning January 1, 2025, consistent with the applicable local coastal plan or land use plan, except in areas that are environmentally sensitive or hazardous;
- Require that, in jurisdictions not meeting their housing targets for above moderate-households, projects eligible for SB 35 streamlining must contain at least 10% of the units affordable to very low-income households (i.e., 50% of the area median income (AMI) or below); and
- Amend labor standards that apply to projects over 85 feet in height above grade.
Senate Bill 79 (Wiener, 2025). SB 79 (1) made transit-oriented development (TOD) an allowable use on any site zoned for residential, commercial, or mixed use; and (2) allowed a transit agency to adopt objective standards for both residential and mixed-use development projects.
TOD development upzoning. SB 79 entitles a housing development within a specified distance of a transit stop in a residential, mixed-use, or commercial zone to specified development standards described in the table below.
TOD Stop Type | Dist. from Stop (TOD Zone) | Standards for Project
|
Tier 1: Major transit stop, heavy rail transit, or very high frequency commuter rail | ¼ mile from stop |
|
¼ - ½ mile from stop in city with population at least 35,000 |
| |
Tier 2: Not Tier 1 major transit stops served by light rail transit, high-frequency commuter rail, or bus rapid transit | ¼ mile from stop |
|
¼ - ½ mile from stop in a city with a population at least 35,000 |
|
TOD housing development projects must also meet the following requirements:
- The average total area of floor space for the proposed units in the TOD housing development project cannot exceed 1,750 net habitable square feet; and
- The housing development project must include at least five dwelling units and meet the greater of the following:
- A minimum density of at least 30 dwelling units per acre; or
- The minimum density required under the local zoning, if applicable.
SB 79 prohibits projects from being located on specified sites subject to rent control within the last seven years. SB 79 projects must also meet specified affordability and labor standards.
SB 79 requires metropolitan planning organizations (MPOs) to create a map of TOD stops and zones. Based on those maps, a local government has to enact an ordinance to make its zoning consistent with SB 79, subject to HCD review. Additionally, they can adopt a local TOD alternative plan that allows them to adopt their own standards provided they maintain the same amount of housing as the general SB 79 provisions.
The State Building & Construction Trades Council of California wants to increase housing production in downtown areas of large cities near transit.
Proposed Law
Assembly Bill 2074 creates regional transit hub districts (RTHDs) and makes downtown housing projects an allowable use in those districts.
RTHDs. At a minimum, an RTHD must meet all of the following requirements:
- Be a contiguous area of land;
- Have a land area of at least 0.25 square miles; and
- Have at least one TOD stop.
By July 1, 2027, each major transit city, meaning a city with a population of at least 400,000 that contains at least two TOD stops, must comply with the applicable requirement:
- A major transit city with a population of at least 400,000 and less than 1 million must designate at least one RTHD with a total area of at least 0.5 square miles;
- A major transit city with a population of at least 1 million and less than 2 million must designate at least one RTHD with a total area of at least 1 square mile; and
- A major transit city with a population of at least 2 million must designate at least one RTHD with a total area of at least 1.5 square miles.
A city can create multiple RTHDs to comply with the measure’s requirements. If the city fails to designate an RTHD, then the RTHD’s boundaries become the area surrounding the city’s highest-ridership TOD stop. Cities that do not meet these population thresholds can, but are not required to, designate a RTHD. Designating a RTHD is exempt from CEQA.
Downtown housing projects. Downtown housing projects are housing development projects within a regional transit hub district that satisfy all the following conditions:
- Comply with SB 423 labor standards;
- Have density of at least 60 units per acre;
- Meet SB 79 affordability requirements;
- Meet SB 79 site eligibility requirements;
- Does not demolish any individually landmarked property on a local, state, or federal historic register; and
- Is consistent with airport land use planning.
RTHDs must make downtown housing developments an allowable use subject to all the following:
- The city cannot set a maximum height limit lower than 150 feet;
- At least 25% of the total area of all the city’s RTHDs must allow a maximum height of at least 450 feet;
- Cities cannot set a maximum FAR lower than 6;
- At least 25% of the total area of all the city’s RTHDs must allow a maximum FAR of at least 12;
- Cities cannot set a maximum density less than 200 dwelling units per acre;
- At least 25% of the total area of all the city’s RTHDs must not have a maximum density limit; and
- The city may set other objective standards related to a downtown housing development within a RTHD if they are consistent with the measure’s requirements.
Downtown housing projects may qualify for a density bonus, and AB 2074 required density becomes the base density for purposes of calculating eligibility for density bonus law incentives and concessions.
If utilizing SB 423 streamlined ministerial approval, projects are exempt from most of SB 423’s requirements, but must still follow labor and site eligibility standards. As a condition of qualifying for streamlining, the city or county must require the developer to complete a phase I environmental assessment and mitigate any identified issues as specified.
Loan eligibility. AB 2074 creates the Downtown Revitalization Loan Fund, which continually appropriates funds to the California Housing Finance Agency to finance downtown housing projects. Loans cannot exceed 30% of project costs. The applicant must certify they will comply with SB 423 labor standards.
Comments
1. Purpose of the bill. According to the author, “California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs.
“This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns.”
2. Now, do it again. Under existing law, local agencies are subject to many planning requirements, especially when it comes to housing. The housing element process requires local agencies to consider many different factors, including how economic, environmental, fiscal, and community factors influence their ability to address regional housing needs. Among the many factors local agencies must include is a statement of the community’s goals, quantified objectives, policies relative to affirmatively furthering fair housing, and to the maintenance, preservation, improvement, and development of housing. After balancing factors such as these, local governments have to identify and implement programs and policies to make sites available to accommodate their share of regional housing needs at all income levels, which, crucially, must include any necessary rezonings.
SB 79 disregarded many of these planning efforts and imposed new restrictions on local agencies near TOD stops. SB 79 allows local governments to enact an ordinance to implement SB 79 that might provide some flexibility. Local agencies are in the midst of implementing SB 79, which goes into effect on July 1, 2026. AB 2074 requires the cities that qualify as major transit cities to go back over their plans for at least one TOD stop to now comply with AB 2074, potentially repeating some of the efforts they just went through for SB 79. Completing these plans takes time and resources. Local agencies may have to divert resources from other planning efforts, or increase planning fees, to come into compliance with AB 2074.
3. Dealer’s choice. Valuation of real estate is complicated, but a fundamental principle is that property is as valuable as its highest and best use allows. Land that can only accommodate construction of a few new units of housing is less valuable than land that can accommodate more, all else being equal, and same goes for larger developments versus smaller ones. When zoning rules change to allow more building, property values go up—an effect that was demonstrated in a recent study of upzoning in Chicago.[1] Like SB 79 before it, AB 2074 allows more units to be built and reduces costs associated with developments by granting additional waivers and concessions of development policies. AB 2074 puts a series of requirements on local agencies in terms of heights, density, and FARs it must allow, but allows developers to choose the density, height, and FAR, up to the limits, potentially allowing them to maximize profits by building larger luxury units instead of smaller, lower priced ones. The main requirement for developers as far as project dimensions is that they must build to a minimum density of at least 60 units per acre. Without further direction, a developer could choose to build fewer, relatively large units that would not naturally be affordable to many households. The Committee may wish to consider amending the bill to require the average total area of floor space for the proposed units in the project to not exceed 1,750 net habitable square feet.
4. Priorities. Financing deed-restricted, affordable housing units is a complicated endeavor. Affordable housing developers have to rely on piecing together multiple funding sources, and often rely on government subsidies to get across the finish line. In other words, without state and local funds, these units reserved for lower-income households may never get built. Predominantly market-rate projects are not as reliant on government subsidies, and do not come with a guarantee that units will be offered at an affordable cost. There is no guarantee that a market-rate developer uses funds to build more units than they otherwise would, nor that the developer offers those units at below-market rates. AB 2074 sets up a new loan program out of CalHFA to help finance RTHDs, but the only restriction on the funds is that the loan cannot cover more than 30% of project costs. While loans eventually get repaid, setting up a new loan program has costs. First, there are ongoing costs to administer the program. Second, there are one-time costs to capitalize the loan program so that the first loans can go out. Since these resources could be used for other purposes, an effective loan program is one that maximizes public benefits. In this case, loan funds can go to any project in one of these districts regardless of whether the project can only get built if it has access to additional capital. Since projects with more deed-restricted, affordable units generally require greater public subsidies than purely market rate projects, the loan program could be designed to finance only the deed-restricted, affordable units. This would ensure resources get used in a way to maximize public benefits.
5. Public funds. Article XVI, Sec. 6 of the State Constitution prohibits a gift, including the lending of credit, of public funds. However, courts have found that funds used for a public purpose do not constitute a gift of public funds. There is no statutory definition of public purpose. So, it is up to the courts to determine whether the gift of public funds is for a “public” or “private” purpose. In some instances, the courts have deferred to legislative findings of public purpose if they are reasonable. For example, courts have typically found that funding affordable housing is a public purpose. AB 2074 makes findings that helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds, but it is unclear whether those findings are sufficient to justify using public funds to finance market-rate housing. Limiting AB 2074’s loan funds to affordable housing would limit this potential legal uncertainty.
6. Who, Me? AB 2074 applies to “major transit cities,” which the measure defines as a city with a population of at least 400,000 that contains at least two TOD stops. This would include the following cities:
Los Angeles | San Diego |
San Jose | San Francisco |
Long Beach | Sacramento |
Oakland | |
7. Charter city. The California Constitution allows cities that adopt charters to control their own “municipal affairs.” In all other matters, charter cities must follow the general, statewide laws. Because the Constitution does not define municipal affairs, the courts determine whether a topic is a municipal affair or whether it is an issue of statewide concern. AB 2074 says that its statutory provisions apply to charter cities because addressing the statewide housing crisis is a matter of statewide concern.
8. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because AB 2074 adds to the duties of local officials, Legislative Counsel says the bill imposes a new state mandate. AB 2074 disclaims the state’s responsibility for providing reimbursement by citing local governments’ authority to charge for the costs of implementing the bill’s provisions, while acknowledging the state may have to reimburse costs the local agency cannot recover through fees.
9. Incoming! The Senate Rules Committee has ordered a double referral of AB 2074: first to the Committee on Housing, which is set to hear the bill at its June 30th hearing.
Assembly Actions
Assembly Housing and Community Development Committee: 10-1
Assembly Local Government Committee: 8-1
Assembly Natural Resources Committee: 11-3
Assembly Appropriations Committee: 12-2
Assembly Floor: 64-6
Support and Opposition
(6/26/26)
Support: State Building & Construction Trades Council of California (Sponsor)
Caity Maple, City of Sacramento Councilmember
Mayor Matt Mahan, City of San Jose
Big City Mayors
Business for Good San Diego
California Big City Mayors Coalition
California Downtown Association
California Yimby
Central City Association of Los Angeles
City of Anaheim
City of Bakersfield
City of Fresno
City of Irvine
City of Long Beach
City of Los Angeles
City of Oakland
City of Riverside
City of Sacramento
City of San Diego
City of San Francisco
City of San Jose
City of Stockton
Climate Action Campaign
Coalition for Clean Air
Downtown San Diego Partnership
Dtla Residents Association
Greenbelt Alliance
San Diego County Bicycle Coalition
Southern California Black Chamber of Commerce
Yimby Democrats of San Diego County
Opposition: California Housing Partnership Corporation
Housing California
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Yonah Freemark. (2020) “Upzoning Chicago: Impacts of a Zoning Reform on Property Values and Housing Construction.” Urban Affairs Review 56(3), 758-789. ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 2074
Author:(Haney)
As Amended Ver:April 9, 2026
2/3 vote
SUMMARY
Requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and establishes a state revolving loan fund to support their construction.
Major Provisions
- Defines for purposes of the bill:
- "Downtown housing development" means a housing development project within a regional transit hub district.
- "Housing development project" means the same as a housing development project is defined in the Housing Accountability Act (HAA), generally a multiunit project that is at least two-thirds residential.
- "Major transit city" means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
- "Regional transit hub district" (district) means a district of a minimum size, as specified by 2), surrounding a transit stop designated by a city.
- Requires major transit cities to designate at least one regional transit hub district by July 1, 2027, with minimum district sizes tied to city population.
- Provides that a city that is not a major transit city may opt-in and designate a district.
- Provides that designation of a district pursuant is not a "project" for the purposes of the California Environmental Quality Act (CEQA).
- Requires districts to be a contiguous area of at least .25 square miles containing at least one transit-oriented development (TOD) stop.
- Requires that a downtown housing development be an allowable use in a district and establishes minimum zoning standards, including:
- No maximum height below 150 feet;
- At least 25% of district area allowing heights of at least 450 feet;
- No maximum floor area ratio (FAR) below 6;
- At least 25% of district area allowing FARs of at least 12;
- No maximum density below 200 dwelling units per acre; and
- At least 25% of district area with no maximum density limit.
- Allows a city to set other objective zoning standards, subdivision standards, and design review standards related to a downtown housing development within a district that are consistent with this bill.
- Applies the following to a downtown housing development:
- Labor standards pursuant to SB 423 (Wiener), Chapter 778, Statutes of 2023 (SB 423);
- Ability to quality for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Density Bonus Law (DBL) or a local density bonus, using the requirements of the bill as the base density;
- Eligibility for streamlined ministerial approval pursuant to SB 423 without meeting the standards for a project under SB 423, except that the downtown housing development project is still restricted from using the ministerial process in SB 423 if the project is on an environmentally sensitive site;
- Phase I environmental assessments and, if necessary, hazardous materials investigation and remediation requirements;
- A minimum density of 60 dwelling units per acre;
- The affordability requirements established in SB 79 for projects containing more than 10 units or the local inclusionary housing requirement, whichever has a higher percentage of affordable units or deeper level of affordability.
- The antidisplacement standards established in SB 79;
- Prohibition of the demolition of any individually landmarked property on a local, state, or federal historic register; and
- Required consistency with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zone, as specified.
- Establishes the Downtown Revitalization Loan Fund (Fund) within the State Treasury, administered by the California Housing Finance Agency (CalHFA), upon appropriation, to provide low-interest revolving loans for qualifying downtown housing developments of up to 30% of project costs.
- Makes findings and declarations.
COMMENTS
This Bill: This bill establishes a statewide framework to facilitate high-density housing development in downtown, transit-rich areas by requiring certain large cities with a population of at least 400,000 in the 2020 U.S. Census with at least two qualifying TOD stops to designate "regional transit hub districts" of a specified minimum size based on population. Under the bill, Los Angeles (population over 2,000,000) must designate at least 1.5 square miles; San Diego and San Jose (population between 1,000,000 and 2,000,000) must designate at least 1 square mile; and San Francisco, Sacramento, Long Beach, and Oakland (population between 400,000 and 1,000,000) must each designate at least 0.5 square miles in districts, based on 2020 Census populations. Other cities may opt in and elect to designate a regional transit hub district in order for downtown developments to be eligible for project financing through the Fund, as further explained below.
Within these districts, this bill establishes minimum zoning standards that local governments must allow, including a base maximum height of at least 150 feet, with at least 25% of the district permitting heights of at least 450 feet; a minimum floor area ratio (FAR) of 6, with at least 25% of the district allowing an FAR of at least 12; a minimum density of 60 dwelling units per acre, and a density cap of no less than 200 dwelling units per acre, with at least 25% of the district allowing unlimited density. This bill prohibits cities from imposing lower caps and requires that housing be an allowable use throughout these areas, while still permitting local governments to adopt other zoning standards that do not conflict with these minimum thresholds. In effect, this bill establishes a statewide zoning floor overlay for downtown areas, increasing allowable development intensity in proximity to major transit.
Within these designated districts, qualifying "downtown housing developments" are subject to additional requirements and benefits. Projects must meet the same labor requirements currently included in SB 423 (Wiener), the same affordability requirements included in SB 79 (Wiener), and satisfy site eligibility and anti-displacement provisions. These qualifying downtown housing developments are eligible for ministerial, streamlined approval and are exempt from discretionary review processes, while still requiring environmental site assessments and remediation where necessary. Projects may also layer on additional incentives through the DBL, with this bill's zoning standards serving as the applicable base zoning for calculating concessions, incentives, waivers, and reductions of development standards.
In addition, this bill creates the Downtown Revitalization Loan Fund, administered by CalHFA, to provide low-interest, revolving loans covering up to 30% of project costs for eligible developments. Loans are issued at or below the state's pooled investment rate and must be repaid upon project completion, with repayments recycled to support future projects. The Fund is considered a continuous appropriation, because CalHFA can continue to issue additional loans upon repayment without future appropriation from the Legislature.
By pairing significant upzoning and ministerial approval with a dedicated financing source, this bill seeks to incentivize large-scale housing production in transit-accessible downtown areas and support broader efforts to revitalize urban cores.
According to the Author
"California's downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs.
This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns."
Arguments in Support
California YIMBY, one of the bill's co-sponsors, writes in support: "AB 2074 requires California's seven largest transit-rich cities—those with populations over 400,000, including Los Angeles, San Diego, San Jose, San Francisco, Sacramento, Oakland, and Long Beach—to designate regional transit hub districts. Within these districts, the bill establishes new development standards, including a baseline height limit of 150 feet and a requirement that at least 25 percent of each district allow buildings of 450 feet or more. Residential projects that meet the bill's labor standards would qualify for streamlined, ministerial approval.
By requiring cities to designate transit-rich districts and allow substantial residential capacity, AB 2074 will unlock new housing opportunities in the places where homes are most sustainable, accessible, and economically productive—near jobs, transit, and existing infrastructure. This approach helps ensure that California's growth is directed to areas best suited to support vibrant, transit-oriented communities while reducing barriers that too often delay or prevent housing construction."
Arguments in Opposition
The California Housing Consortium writes in opposition: "While the intent of the bill is to revitalize downtown areas, we have concerns with the unintended consequences of the legislation. At a time when the state's general fund has a growing structural deficit, creating a loan fund that is limited to a specific project type in specific locations raises serious issues. As currently written, the bill would subsidize market-rate luxury housing unaffordable to most Californians. Limited public dollars should subsidize homes that are affordable to low-income people, not developments with mostly market-rate housing. Furthermore, given the project requirements, there are only a few jurisdictions that would benefit from these funds, inadvertently exacerbating regional economic disparities. For these reasons, we hold an "oppose" position on AB 2074.
Revitalizing downtowns is a laudable goal, and we would welcome the opportunity to partner with you to craft a policy that will increase the supply of housing that is affordable to Californians."
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- Ongoing General Fund (GF) cost pressures, likely in the hundreds of millions of dollars annually to provide loans to applicants to develop downtown housing developments. This bill establishes a fund in the State Treasury for this purpose and requires money appropriated to the fund to be continuously appropriated to CalHFA. The Governor's 2026-27 budget proposal does not provide money for this purpose.
- CalHFA estimates ongoing GF costs of at least $740,000 for a minimum of four staff to administer and monitor the program. CalHFA notes this is not a service CalHFA currently provides, and more staff may be required. CalHFA normally takes a 5% administration fee on appropriated funds for programs they administer, which this bill does not provide for.
- Local costs of an unknown, but potentially substantial amount statewide to the seven impacted cities required to designate regional transit hub districts and establish a streamlined ministerial approval process for downtown housing developments within these districts. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State 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.
VOTES
ASM HOUSING AND COMMUNITY DEVELOPMENT: 10-1-1
YES: Haney, Patterson, Ward, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Wicks, Wilson
NO: Tangipa
ABS, ABST OR NV: Ta
ASM LOCAL GOVERNMENT: 8-1-1
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
NO: Johnson
ABS, ABST OR NV: Ta
ASM NATURAL RESOURCES: 11-3-0
YES: Bryan, Connolly, Garcia, Haney, Hoover, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur
NO: Ellis, Alanis, Macedo
ASM APPROPRIATIONS: 12-2-1
YES: Wicks, Hoover, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Dixon, Tangipa
ABS, ABST OR NV: Ta
UPDATED
VERSION: April 9, 2026
CONSULTANT: Dori Ganetsos / H. & C.D. / (916) 319-2085 FN: 0002583
Date of Hearing: May 13, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2074
Author:(Haney) – As Amended Ver:April 9, 2026
Policy Committee: | Housing and Community Development | Vote: | 10 - 1 |
Local Government | 8 - 1 | ||
Natural Resources | 11 - 3 |
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill requires each major transit city to designate a downtown regional transit hub district where qualifying high-rise housing developments are allowed by right, subject to specified labor and affordability standards. The bill establishes a state revolving loan fund to support construction of these developments.
Specifically, this bill:
- Defines “major transit city” as a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development (TOD) stops.
- Requires each major transit city to designate a regional transit hub district as follows:
- A major transit city with a population of at least 400,000 and less than one million (San Francisco, Sacramento, Long Beach, and Oakland) must designate at least one district with a total area of at least 0.5 square miles.
- A major transit city with a population of at least one million and less than two million (San Diego and San Jose) must designate at least one district with a total area of at least 1 square mile.
- A major transit city with a population of at least two million (Los Angeles) must designate at least one district with a total area of at least 1.5 square miles.
- Allows a city that is not a major transit city to designate a regional transit hub district.
- Provides that designation of a regional transit hub district pursuant to this bill is not considered a “project” for purposes of the California Environmental Quality Act (CEQA).
- Requires a regional transit hub district to be a contiguous area of at least .25 square miles containing at least one TOD stop.
- Requires a downtown housing development to be an allowable use in a regional transit hub district, and prescribes requirements for downtown housing developments, including, among other items, a baseline height limit of 150 feet and a requirement that at least 25% of each district allow buildings of 450 feet or more.
- Requires a downtown housing development meet specified labor standards and requires a development project that meets the bill’s labor standards to qualify for streamlined, ministerial approval, as specified.
- Establishes the Downtown Revitalization Loan Fund in the State Treasury and continuously appropriates money in the fund to the California Housing Finance Agency (CalHFA) to provide low-interest, revolving loans covering up to 30% of project costs for eligible downtown housing developments. Loans must be issued at or below the state’s pooled investment rate and must be repaid upon project completion, with repayments recycled to support future projects.
FISCAL EFFECT:
- Ongoing General Fund (GF) cost pressures, likely in the hundreds of millions of dollars annually to provide loans to applicants to develop downtown housing developments. This bill establishes a fund in the State Treasury for this purpose and requires money appropriated to the fund to be continuously appropriated to CalHFA. The Governor’s 2026-27 budget proposal does not provide money for this purpose.
- CalHFA estimates ongoing GF costs of at least $740,000 for a minimum of four staff to administer and monitor the program. CalHFA notes this is not a service CalHFA currently provides, and more staff may be required. CalHFA normally takes a 5% administration fee on appropriated funds for programs they administer, which this bill does not provide for.
- Local costs of an unknown, but potentially substantial amount statewide to the seven impacted cities required to designate regional transit hub districts and establish a streamlined ministerial approval process for downtown housing developments within these districts. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State 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:
California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. [This bill] responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs.
- Background. SB 79 (Wiener), Chapter 512, Statutes of 2025, established a streamlined, ministerial approval process for transit-oriented development (TOD) housing development projects. This bill uses the framework established by SB 79 and establishes a statewide framework to facilitate high-density housing development in downtown, transit-rich areas.
Within these districts, qualifying “downtown housing developments” must meet the same labor requirements currently included in SB 423 (Wiener), Chapter 778, Statutes of 2023, the same affordability requirements included in SB 79, and are eligible for ministerial, streamlined approval, while still requiring environmental site assessments and remediation where necessary.
- Support and Opposition. This bill is cosponsored by California YIMBY and the State Building and Construction Trades Council of California and is supported by a variety of downtown-related interests. California YIMBY asserts “[this bill] will unlock new housing opportunities in the places where homes are most sustainable, accessible, and economically productive—near jobs, transit, and existing infrastructure,”
The bill is opposed by the California Housing Consortium who asserts, “the bill would subsidize market-rate luxury housing unaffordable to most Californians. Limited public dollars should subsidize homes that are affordable to low-income people, not developments with mostly market-rate housing.”
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 20, 2026
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Isaac G. Bryan, Chair
ABPCA Bill Id:AB 2074 (
Author:Haney) – As Amended Ver:April 9, 2026
SUBJECT: Regional transit hub districts: downtown housing developments
SUMMARY: Requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and establishes a state revolving loan fund to support their construction.
EXISTING LAW:
- The California Environmental Quality Act (CEQA) requires lead agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated negative declaration, or environmental impact report (EIR) for this action, unless the project is exempt from CEQA. CEQA statute and guidelines provide multiple exemptions for residential projects. (Public Resources Code (PRC) 21000 et seq.)
- Requires ministerial approval (i.e., not subject to CEQA or other discretionary review by the relevant city or county) of both affordable and market-rate multifamily housing projects until 2036, provided specified construction labor requirements are met, while excluding the following 11 categories of environmentally sensitive sites.
- Coastal zone, with specified exceptions.
- Prime farmland or farmland of statewide importance.
- Wetlands.
- Very high fire hazard severity zones, with specified exceptions.
- Hazardous waste site.
- Delineated earthquake fault zone.
- Special flood hazard area.
- Regulatory flood way.
- Lands identified for conservation.
- Habitat for protected species.
- Lands under conservation easement.
(Government Code (GC) 65913.4)
- Requires ministerial approval of housing development projects within a specified distance of major transit stops. (GC65912.157)
- Requires ministerial approval of certain infill multifamily affordable housing projects that are located on land that is zoned for retail, office, or parking. (GC 65912.100-65912.140)
- Requires ministerial approval for certain office-to-housing development projects. (GC 51299 et seq.)
THIS BILL:
- Defines for purposes of the bill:
- “Downtown housing development” means a housing development project within a regional transit hub district.
- “Fund” means the Downtown Revitalization Loan Fund.
- “Major transit city” means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
- “Regional transit hub district” (district) means a district of a minimum size, as specified by 2), surrounding a transit stop designated by a city.
- Requires each major transit city to comply with the applicable of the following:
- A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one district with a total area of at least 0.5 square miles.
- A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one district with a total area of at least 1 square mile.
- A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one district with a total area of at least 1.5 square miles.
- Provides that a city that is not a major transit city may designate a district.
- Provides that designation of a district pursuant to this bill shall not be considered a “project” for purposes of CEQA.
- Requires districts to be a contiguous area of at least .25 square miles containing at least one transit-oriented development stop.
- Requires that a downtown housing development be an allowable use in a district. Provides that a downtown housing development in a district is subject to all of the following:
- Prohibits a city from setting a maximum height limit lower than 150 feet.
- Requires at least 25% of the total area of all districts within a city to allow a maximum height of 450 feet.
- Prohibits a city from setting a maximum floor area ratio lower than 6.
- Requires at least 25% of the total area of all districts within a city to allow a maximum floor area ratio of at least 12.
- Prohibits a city from setting a maximum density of less than 200 dwelling units per acre.
- Prohibits at least 25% of the total area of all districts in a city from having a maximum density limit.
- Allows a city to set other objective zoning standards, objective subdivision standards, and object design review standards related to a downtown housing development within a district that are consistent the requirement of 6).
- Applies the following to a downtown housing development:
- Labor Standards pursuant to SB 423 (Wiener), Chapter 778, Statutes of 2023 (SB 423).
- Ability to quality for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Density Bonus Law (DBL) or a local density bonus, using the requirements of the bill as the base density.
- Provides eligibility for streamlined ministerial approval pursuant to SB 423 without meeting the standards for a project under SB 423, except that the downtown housing development project is still restricted from using the ministerial process in SB 423 if the project is on an environmentally sensitive site.
- Requires the local government to, as a condition of approval, require the development proponent to complete a phase I environmental assessment.
- Requires a minimum density of 60 dwelling units per acre.
- Meets the affordability requirements established in SB 79 (Wiener), Chapter 512, Statutes of 2025, for projects containing more than 10 units or the local inclusionary housing requirement, whichever has a higher percentage of affordable units or deeper level of affordability.
- Requires the development proposed pursuant to the bill to comply with any applicable local demolition and anti-displacement standards established through a local ordinance.
- Prohibits the downtown housing development from being located on either of the following:
- A site with more than two units of housing subject to any form of rent or price control, was occupied by tenants within the past seven years, and the development would require the demolition of those housing units.
- A site that was previously used for more than two units of housing that was subject to rent or price control and the units were demolished within 7 years before the development proponent submitted an application.
- Prohibits the demolition of any individually landmarked property on a local, state, or federal historic register.
- Requires consistency with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zone, as specified.
- Establishes the Fund within the State Treasury:
- Provides that moneys deposited and maintained in the Fund are continuously appropriated without regard to fiscal year to the California Housing Finance Agency (CalHFA).
- Provides that moneys in the Fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:
- The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan.
- The amount loaned shall not exceed 30% of the project cost.
- The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.
- Provides that moneys received from repayments of loans shall be deposited into the Fund and shall be available to make new loans.
- Allows CalHFA to adopt necessary rules and regulations to create and administer the Fund, including, but not limited to, rules or regulations governing the issuance or timing of loans from the Fund.
- Allows CalHFA to adopt those regulations as emergency regulations under the Administrative Procedures Act.
- Finds and declares that this bill serves a public purpose of helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
FISCAL EFFECT: Unknown
COMMENTS:
- Author’s statement:
California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs.
This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns.
- Triple referral. This bill was approved by the Housing and Community Development Committee by a vote of 10-1 on April 8, and by the Local Government Committee by a vote of 8-1 on April 15.
REGISTERED SUPPORT / OPPOSITION:
Support
Anthony Tordillos, Councilmember, City of San Jose
California YIMBY
Circulate Planning & Policy
State Building & Construction Trades Council of California
Opposition
Equitable Land Use Alliance
Families and Homes San Jose (unless amended)
Mission Street Neighbors
Analysis Prepared by: Lawrence Lingbloom / NAT. RES. / , Paige Brokaw / NAT. RES. /
Date of Hearing: April 15, 2026
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
ABPCA Bill Id:AB 2074 (
Author:Haney) – As Amended Ver:April 9, 2026
SUBJECT: Regional transit hub districts: downtown housing developments
SUMMARY: Requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and establishes a state revolving loan fund to support their construction. Specifically, this bill:
- Defines for purposes of the bill:
- “Downtown housing development” means a housing development project within a regional transit hub district.
- “Fund” means the Downtown Revitalization Loan Fund established pursuant to 9).
- “Housing development project” means the same as a housing development project is defined in the Housing Accountability Act (HAA), generally a multiunit project that is at least two-thirds residential.
- “Major transit city” means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.
- “Regional transit hub district” (district) means a district of a minimum size, as specified by 2), surrounding a transit stop designated by a city.
- “Transit-oriented development stop” (TOD stop) has the same meaning as defined in SB 79 (Wiener), Chapter 512, Statutes of 2025 (SB 79).
- Requires each major transit city to comply with the applicable of the following:
- A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate at least one district with a total area of at least 0.5 square miles.
- A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate at least one district with a total area of at least 1 square mile.
- A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate at least one district with a total area of at least 1.5 square miles.
- Provides that a city that is not a major transit city may designate a district.
- Provides that designation of a district pursuant to this bill shall not be considered a “project” for the purposes of the California Environmental Quality Act (CEQA).
- Requires districts to be a contiguous area of at least .25 square miles containing at least one TOD stop.
- Requires that a downtown housing development be an allowable use in a district. Provides that a downtown housing development in a district is subject to all of the following:
- Prohibits a city from setting a maximum height limit lower than 150 feet.
- Requires at least 25% of the total area of all districts within a city to allow a maximum height of 450 feet.
- Prohibits a city from setting a maximum floor area ratio lower than 6.
- Requires at least 25% of the total area of all districts within a city to allow a maximum floor area ratio of at least 12.
- Prohibits a city from setting a maximum density of less than 200 dwelling units per acre.
- Prohibits at least 25% of the total area of all districts in a city from having a maximum density limit.
- Allows a city to set other objective zoning standards, objective subdivision standards, and object design review standards related to a downtown housing development within a district that are consistent the requirement of 6).
- Applies the following to a downtown housing development:
- Labor Standards pursuant to SB 423 (Wiener), Chapter 778, Statutes of 2023 (SB 423).
- Ability to quality for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Density Bonus Law (DBL) or a local density bonus, using the requirements of the bill as the base density.
- Provides eligibility for streamlined ministerial approval pursuant to SB 423 without meeting the standards for a project under SB 423, except that the downtown housing development project is still restricted from using the ministerial process in SB 423 if the project is on an environmentally sensitive site, see 3) in Existing Law.
- Requires the local government to, as a condition of approval, require the development proponent to complete a phase I environmental assessment.
- Provides that if a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as specified, prepared by an environmental assessor to determine the existence of any release of hazardous substances on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
- Provides that if a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
- Provides that if a potential exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential expose shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.
- Requires a minimum density of 60 dwelling units per acre.
- Meets the affordability requirements established in SB 79 for projects containing more than 10 units or the local inclusionary housing requirement, whichever has a higher percentage of affordable units or deeper level of affordability.
- Requires the development proposed pursuant to the bill to comply with any applicable local demolition and anti-displacement standards established through a local ordinance.
- Prohibits the downtown housing development from being located on either of the following:
- A site with more than two units of housing subject to any form of rent or price control, was occupied by tenants within the past seven years, and the development would require the demolition of those housing units.
- A site that was previously used for more than two units of housing that was subject to rent or price control and the units were demolished within 7 years before the development proponent submitted an application.
- Prohibits the demolition of any individually landmarked property on a local, state, or federal historic register.
- Requires consistency with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zone, as specified.
- Establishes the Fund within the State Treasury:
- Provides that moneys deposited and maintained in the Fund are continuously appropriated without regard to fiscal year to the California Housing Finance Agency (CalHFA).
- Provides that moneys in the Fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:
- The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan.
- The amount loaned shall not exceed 30% of the project cost.
- The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.
- Provides that moneys received from repayments of loans shall be deposited into the Fund and shall be available to make new loans.
- Allows CalHFA to adopt necessary rules and regulations to create and administer the Fund, including, but not limited to, rules or regulations governing the issuance or timing of loans from the Fund.
- Allows CalHFA to adopt those regulations as emergency regulations under the Administrative Procedures Act.
- Finds and declares that this bill serves a public purpose of helping to address the statewide housing crisis and loans issued pursuant to this subdivision do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
- Finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this bill applies to all cities, including charter cities.
- Provides that no reimbursement is required 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 bill.
- Provides that if the Commissions on State Mandates determines that this bill contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs pursuant to current law governing state mandated local costs.
EXISTING LAW:
- Establishes, pursuant to SB 79 (Wiener), Chapter 512, Statutes of 2025, a streamlined, ministerial approvals process for housing development projects within a specified distance of TOD stops. [Government Code (GOV) § 65912.157]
- Establishes, pursuant to SB 423, a streamlined, ministerial approval process for certain infill multifamily affordable housing projects that are compliant with local zoning and objective standards and that are proposed in local jurisdictions that have not met their regional housing needs allocation. (GOV § 65913.4)
- Requires a project pursuant to SB 423 to not be located in any of the following to use the streamlined ministerial approval process:
- Coastal zone.
- Prime farmland or farmland of statewide importance.
- Wetlands.
- Very high fire hazard severity zone.
- Hazardous waste site.
- Delineated earthquake fault zone.
- Special flood hazard area.
- Regulatory flood way.
- Lands identified for conservation.
- Habitat for protected species.
- Lands under conservation easement. (GOV § 65913.4)
FISCAL EFFECT: This bill is keyed fiscal and contains a state mandated local program.
COMMENTS:
- Bill Summary. This bill establishes a statewide framework to facilitate high-density housing development in downtown, transit-rich areas by requiring certain large cities with a population of at least 400,000 in the 2020 U.S. Census with at least two qualifying TOD stops to designate “regional transit hub districts” of a specified minimum size based on population. Under the bill, Los Angeles (population over 2,000,000) must designate at least 1.5 square miles; San Diego and San Jose (population between 1,000,000 and 2,000,000) must designate at least 1 square mile; and San Francisco, Sacramento, Long Beach, and Oakland (population between 400,000 and 1,000,000) must each designate at least 0.5 square miles in districts, based on 2020 Census populations. Other cities may opt in and elect to designate a regional transit hub district in order for downtown developments to be eligible for project financing through the Downtown Revitalization Loan Fund (Fund).
Within these districts, the bill establishes minimum zoning standards that local governments must allow, including a base maximum height of at least 150 feet, with at least 25% of the district permitting heights of at least 450 feet; a minimum floor area ratio (FAR) of 6, with at least 25% of the district allowing a FAR of at least 12; a minimum density of 60 dwelling units per acre, and a density cap of no less than 200 dwelling units per acre, with at least 25% of the district allowing unlimited density. This bill prohibits cities from imposing lower caps and requires that housing be an allowable use throughout these areas, while still permitting local governments to adopt other zoning standards that do not conflict with these minimum thresholds. In effect, this bill establishes a statewide zoning floor for downtown areas, increasing allowable development intensity in proximity to major transit.
In addition, this bill creates the Downtown Revitalization Loan Fund, administered by CalHFA, to provide low-interest, revolving loans covering up to 30% of project costs for eligible developments. Loans are issued at or below the state’s pooled investment rate and must be repaid upon project completion, with repayments recycled to support future projects. The Fund is considered a continuous appropriation, because CalHFA can continue to issue additional loans upon repayment without future appropriation from the Legislature.
This bill is sponsored by California YIMBY and the State Building and Construction Trades Council of California. - Author’s Statement. According to the author, “California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs.
“This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns.” - Police Powers and Land Use Authority. 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. - Transit Oriented Development. Research has shown that encouraging denser housing near transit serves not only as a means of increasing ridership of public transportation to reduce greenhouse gases (GHGs), but also as a solution to our state’s housing crisis. As part of California’s overall strategy to combat climate change, the Legislature began the process of encouraging more transit-oriented development with the passage of SB 375 (Steinberg, Chapter 728, Statutes of 2008). SB 375 is aimed at reducing the amount that people drive and associated GHGs by requiring the coordination of transportation, housing, and land use planning. The Affordable Housing and Sustainable Communities Program (AHSC), administered by the Strategic Growth Council, furthers the purposes of AB 32 (Chapter 488, Statues 2006) and SB 375 (Chapter 728, Statutes, 2008) by investing in projects that reduce GHG emissions by supporting more compact, infill development patterns, encouraging active transportation and transit usage, and protecting agricultural land from sprawl development.
Funding for AHSC is provided by the Greenhouse Gas Reduction Fund (GGRF), an account established to receive Cap-and-Trade auction proceeds. The Legislature subsequently allocated 20% of the ongoing Cap and Trade Program funds to AHSC. AHSC provides grants and/or loans to projects that achieve GHG reductions and benefit disadvantaged communities, low-income communities, and low-income households through increasing accessibility of affordable housing connected to high quality transit. High quality transit includes bus rapid transit with a headway frequency of every 20 minutes or less and service seven days a week.
Additionally, HCD administers the Transit Oriented Development Program. Its primary objectives are to increase the overall supply of housing, increase the supply of affordable housing, increase public transit ridership, and minimize automobile trips. The program seeks to accomplish these objectives by providing financial assistance for the development of housing and related infrastructure near public transit stations, including bus rapid transit.
- SB 79: A Roadmap for Transit Oriented Development Legislation. This bill uses the existing legislative framework established by SB 79 (Wiener). SB 79 requires a housing development project within a specified radius of existing or currently proposed major TOD stops, as defined, to be an allowable use on a site zoned for residential, mixed, or commercial development, if the housing development meets certain requirements. This bill also allows a transit agency to adopt TOD zoning standards for district-owned land located in a TOD zone.
Similar to SB 79, this bill establishes TOD zoning standards that are typically higher than what a local agency has zoned the area in its general plan. Recent guidance from HCD, SB 79 Advisory Clarification on Definition for Metropolitan Planning Organizations, attempts to provide additionally clarity to various terms in SB 79, including “TOD stop” which is used by this bill.
- Related Legislation. AB 2415 (Hoover) provides that a transit-oriented development alternative plan may reduce the capacity in up to one transit-oriented development zone in total units or residential floor area by more than 50% if certain requirements are met. AB 2415 is pending in the Housing and Community Development Committee.
AB 2576 (Harabedian) delays the deadlines in SB 79 by one year, increases the population threshold that would trigger certain requirements to apply to cities from 35,000 to 40,000, and excludes sites with a historic resource to 10% of the eligible area of a TOD zone. AB 2576 is pending in the Housing and Community Development Committee
- Previous Legislation. AB 1445 (Haney), Chapter 642, Statutes of 2024, authorized any city or county to establish one downtown revitalization and economic recovery financing district.
AB 2488 (Ting), Chapter 274, Statutes of 2024, allowed the City and County of San Francisco to establish one downtown revitalization and economic recovery financing district. AB 2488 also allowed that district to finance commercial-to-residential conversion projects the district determines are of communitywide significance and provide significant benefits to the district or San Francisco.
AB 2011 (Wicks), Chapter 647, Statutes of 2021, created the Affordable Housing and High Road Jobs Act of 2022, creating a streamlined, ministerial local review and approvals process for certain affordable and mixed-use housing developments in commercial zoning districts and commercial corridors.
SB 79 (Wiener), Chapter 512, Statutes of 2025, established a streamlined, ministerial approval process for TOD housing development projects.
SB 423 (Wiener), Chapter 778, Statutes of 2023, amended SB 35 (Wiener), which created a streamlined, ministerial local approvals process for housing development proposals in jurisdictions that have failed to produce sufficient housing to meet their RHNA.
SB 6 (Caballero), Chapter 659, Statutes of 2022, established the Middle Class Housing Act of 2022, allowing residential uses on commercially zoned property without requiring a rezoning.
- Arguments in Support. California YIMBY, one of the bill’s co-sponsors, writes in support: “AB 2074 requires California’s seven largest transit-rich cities—those with populations over 400,000, including Los Angeles, San Diego, San Jose, San Francisco, Sacramento, Oakland, and Long Beach—to designate regional transit hub districts. Within these districts, the bill establishes new development standards, including a baseline height limit of 150 feet and a requirement that at least 25 percent of each district allow buildings of 450 feet or more. Residential projects that meet the bill’s labor standards would qualify for streamlined, ministerial approval.
“By requiring cities to designate transit-rich districts and allow substantial residential capacity, AB 2074 will unlock new housing opportunities in the places where homes are most sustainable, accessible, and economically productive—near jobs, transit, and existing infrastructure. This approach helps ensure that California’s growth is directed to areas best suited to support vibrant, transit-oriented communities while reducing barriers that too often delay or prevent housing construction.” - Arguments in Opposition. The California Housing Consortium writes in opposition, “While the intent of the bill is to revitalize downtown areas, we have concerns with the unintended consequences of the legislation. At a time when the state’s general fund has a growing structural deficit, creating a loan fund that is limited to a specific project type in specific locations raises serious issues. As currently written, the bill would subsidize market-rate luxury housing unaffordable to most Californians. Limited public dollars should subsidize homes that are affordable to low-income people, not developments with mostly market-rate housing. Furthermore, given the project requirements, there are only a few jurisdictions that would benefit from these funds, inadvertently exacerbating regional economic disparities.”
- Triple-Referral. This bill is triple referred to the Committee on Housing and Community Development, where it passed on a 10-1 vote on April 8th, and the Committee on Natural Resources.
- State Mandate. The bill is keyed a state mandated, which means that the state could be required to reimburse local agencies and school districts for implementing the bill’s provisions if the Commission on State Mandates determines that the bill contains costs mandated by the state.
REGISTERED SUPPORT / OPPOSITION:
Support
California YIMBY [CO-SPONSOR]
State Building & Construction Trades Council of California [CO-SPONSOR]
Circulate Planning & Policy
Climate Action Campaign
Zillow Group
Opposition
California Housing Consortium
Equitable Land Use Alliance (ELUA)
Families and Homes San Jose (Unless Amended)
Mission Street Neighbors
Analysis Prepared by: Linda Rios / L. GOV. / (916) 319-3958
Date of Hearing: April 8, 2026
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Matt Haney, Chair
ABPCA Bill Id:AB 2074 (
Author:Haney) – As Amended Ver:March 19, 2026
SUBJECT: Regional transit hub districts: downtown housing developments
SUMMARY: Requires major transit cities to designate high-density downtown transit hub districts where qualifying housing developments are allowed by right, subject to specified labor and affordability standards, and establishes a state revolving loan fund to support their construction. Specifically, this bill:
- Defines the following terms:
- “Downtown housing development” means a housing development project within a regional transit hub district;
- “Fund” means the Downtown Revitalization Loan Fund;
- “Housing development project” means the same as a housing development project is defined in the Housing Accountability Act (HAA), generally a multiunit project that is at least two-thirds residential;
- “Major transit city” means a city with a population of at least 400,000 in the 2020 U.S. Census with at least two transit-oriented development stops;
- “Regional transit hub district” (district) means a district of a certain minimum size surrounding a transit stop designated by a city; and
- “Transit-oriented development stop,” (TOD stop) has the same meaning as defined in SB 79 (Wiener), Chapter 512, Statutes of 2025.
- Requires each major transit city to designate at least one district of a certain size based on its population in the 2020 U.S. Census, as follows:
- For cities with at least 400,000 but less than 1,000,000 people, one district with a total area of at least 0.5 square miles;
- For cities with a population of at least 1,000,000 people but less than 2,000,000, one district with a total area of at least 1 square miles; and
- For cities with a population of at least 2,000,000, at least one district with a total area of at least 1.5 square miles.
- Allows jurisdictions that do not meet the definition of a “major transit city” to designate a district, as provided in 2).
- Provides that the designation of a district, as required by 2), is not a project under the California Environmental Quality Act (CEQA).
- Requires each district to meet the following requirements:
- It must be a contiguous area;
- It must have a land area of at least 0.25 square miles; and
- It must contain at least one TOD stop.
- Makes a downtown housing development meeting the following requirements an allowable use within a district:
- Height limits:
- The city shall not set a maximum height limit lower than 150’; and
- At least 25% of the total area of the district shall allow a maximum height limit of at least 450’.
- Floor Area Ratio (FAR):
- The city shall not set a maximum FAR lower than 6; and
- At least 25% of the total area of the district shall allow a maximum FAR of at least 12.
- Density:
- The city shall not set a maximum density less than 200 dwelling units per acre; and
- At least 25% of the total area of the district shall allow for unlimited density.
- Allows a city to set other zoning standards that are consistent with the requirements described in 6)a) through 6)c).
- Height limits:
- Applies all of the following to a downtown housing development:
- The existing labor standards in SB 423 (Wiener), Chapter 778, Statutes of 2023;
- The ability to qualify for density bonus, incentives or concessions, waivers or reductions of development standards or parking ratios under state Density Bonus Law (DBL) or a local density bonus program, with the requirements in (6) serving as the base zoning;
- The streamlined ministerial approval process in SB 423, without the downtown housing development having to comply with the same qualification requirements established in SB 423;
- A phase I environmental assessment, imposed as a condition of approval, with associated mitigation measures;
- A minimum density of at least 60 dwelling units per acre;
- Affordable housing requirements established in SB 79 for projects containing more than 10 units, generally ranging from 7-13% deed-restricted affordability depending on income level, or the affordability required by a local inclusionary ordinance;
- Antidisplacement requirements established in SB 79, preventing downtown housing developments from being located on sites containing more than two units that would require the demolition of housing subject to any form of rent or price control that has been occupied by tenants over the past seven years, or that was demolished within seven years before the development proponent submits the application; and
- A prohibition on the demolition of any individually landmarked property on a local, state, or federal historic register.
- Establishes the Fund in the State Treasury;
- Provides that moneys deposited and maintained in the Fund are continuously appropriated without regard to fiscal year to the California Housing Finance Agency (CalHFA);
- Provides that moneys in the Fund may be loaned to an applicant to develop a downtown housing development, subject to all of the following conditions:
- The loan shall be a simple-interest loan at an interest rate that is the same or less than the rate of interest earned on moneys in the Pooled Money Investment Account, determined as of the date of disbursement of the loan;
- The amount loaned shall not exceed 30% of the project cost; and
- The applicant shall repay the loan, including interest, after completion of the development, as specified in the terms of the loan.
- Provides that moneys received from repayments of loans shall be deposited into the Fund and shall be available to make new loans;
- Allows CalHFA to adopt necessary rules and regulations to create and administer the Fund, and allows CalHFA to adopt those regulations as emergency regulations under the Administrative Procedures Act.
- Provides that this bill does not override the height, noise, or safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installation Compatible Use Zones.
- Makes findings and declarations.
EXISTING LAW:
- Establishes, pursuant to SB 79 (Wiener), Chapter 512, Statutes of 2025, a streamlined, ministerial approvals process for housing development projects within a specified distance of TOD stops. (Government Code (GOV) 65912.157)
- Establishes, pursuant to SB 423 (Wiener), Chapter 778, Statutes of 2023, a streamlined, ministerial approval process for certain infill multifamily affordable housing projects that are compliant with local zoning and objective standards and that are proposed in local jurisdictions that have not met their regional housing needs allocation. (GOV 65913.4)
- Establishes, pursuant to AB 2011 (Wicks), Chapter 647, Statutes of 2022, a streamlined, ministerial approval process, not subject to CEQA, for certain infill multifamily affordable housing projects that are located on land that is zoned for retail, office, or parking. (GOV 65912.100-65912.140)
- Establishes, pursuant to SB 6 (Caballero), Chapter 659, Statutes of 2022, the Middle Class Housing Act of 2022, allowing residential uses on commercially zoned property without requiring a rezoning. (GOV 65852.24)
- Establishes, pursuant to AB 507 (Haney), Chapter 493, Statutes of 2025 a streamlined, ministerial approvals process for office-to-housing development projects.
- Establishes DBL, which requires local governments to grant increased density and other development incentives or concessions, waivers or reductions of development standards, to housing projects that include specified levels of affordable housing. (GOV 65915)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “California’s downtowns are at a crossroads. In the wake of the pandemic, many of our city centers are struggling with high vacancy rates, declining foot traffic, and reduced economic activity. At the same time, we continue to face a severe housing shortage, especially in the very places where housing makes the most sense: near jobs, transit, and existing infrastructure. AB 2074 responds to both of these challenges by creating a clear, statewide framework to support high-density housing in our downtown cores while ensuring that the jobs created are high-quality, family-supporting jobs.
This bill establishes regional transit hub districts in major cities and sets baseline zoning standards that allow for meaningful mixed-use and residential high-rise development, while providing a streamlined approval pathway for projects that meet affordability and strong labor standards. It also creates a revolving loan fund through CalHFA to help address one of the most significant barriers to building housing today: access to early-stage financing. By pairing housing production with robust labor protections and financial tools, AB 2074 is designed to unlock housing, support good-paying jobs, and bring new life to our downtowns.”
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]
Downtown Recovery: Downtowns across California continue to face significant economic and fiscal challenges in the aftermath of the COVID-19 pandemic. Remote and hybrid work have fundamentally reduced daily office occupancy, leading to lower foot traffic, diminished retail activity, and rising commercial vacancies. These shifts have weakened local tax bases, strained small businesses, and left many central business districts with underutilized infrastructure and declining vibrancy. While some recovery has occurred, it has been uneven and slow across the state, particularly in major urban cores that historically relied on office workers to sustain surrounding commercial activity.
These conditions have prompted growing interest in strategies to support downtown revitalization, including facilitating the conversion of underutilized commercial space to housing, activating ground-floor uses, and investing in public realm improvements. Policymakers are increasingly evaluating whether existing land use, financing, and regulatory frameworks are well-suited to support this transition, or whether targeted interventions are needed to help downtowns adapt to changing economic conditions. For example, in recognition of these challenges, the Assembly has convened the Select Committee on Downtown Recovery to examine the scope of these impacts and identify potential policy responses.
Transit-Oriented Development (TOD): TOD refers to compact, pedestrian-oriented development located within walking distance of high-quality public transit. A growing body of academic research points to a range of public benefits associated with TOD, particularly from increasing dense housing options near transit, including reduced greenhouse gas (GHG) emissions, lower vehicle miles traveled, and greater economic and social inclusion.
However, much of California’s urban form reflects a century of auto-centric development, characterized by low-density suburban neighborhoods, wide streets, and land use patterns designed around vehicular access. Despite significant investments in transit infrastructure, ridership remains low across much of the state, and driving continues to dominate travel behavior. This is particularly true outside of dense urban cores, due in part to the lack of housing near high-frequency transit stops and the challenges of first- and last-mile connectivity.
According to a 2024 analysis by the Othering & Belonging Institute at UC Berkeley, a staggering 95.8% of all residential land in California is zoned exclusively for single-family housing, severely constraining opportunities for infill development near transit. Even when lower-density unincorporated areas are excluded, over 82% of residentially zoned land in the state prohibits multifamily housing. In response, the state has increasingly sought to align land use with transit investments by requiring additional housing capacity in transit-rich areas and limiting local ability to downzone or otherwise constrain development in those locations, including through SB 79 (Wiener), Chapter 512, Statutes of 2025. The state has also taken steps to incrementally open single-family zones specifically to additional housing, including through State ADU Law and SB 9 (Atkins), Chapter 161, Statutes of 2021. However, much of California’s residential land remains off-limits for denser development, even in locations with strong access to jobs, transit, and other opportunities.
One way to address these constraints and discourage sprawling development patterns is to increase allowable density in infill locations near existing transit stops and job centers, as was the case in SB 79. Doing so can place more homes, and therefore more people, within walking distance of frequent transit. While proximity alone does not always shift travel behavior, particularly where parking remains abundant or bundled with housing, pairing land use reforms with complementary policies can meaningfully influence outcomes. For example, AB 2097 (Friedman), Chapter 459, Statutes of 2022 eliminated minimum parking requirements near transit, and a 2020 UCLA study by Manville & Pinski found that residents in buildings without bundled parking are substantially more likely to commute without a car. Together, these types of reforms suggest that increasing housing near transit, while reducing incentives to drive, can lead to measurable increases in transit ridership and reductions in car dependency.
Cost of Building Housing: It is expensive to build housing in California. The UC Berkeley Terner Center finds that challenging macroeconomic conditions, including inflation and high interest rates, affect the availability and cost of capital, resulting in rising costs for labor and materials.[7] Furthermore, workforce and supply shortages have exacerbated the already high price of construction in California, and economic uncertainty has made equity partners and lenders apprehensive about financing new housing development proposals.[8] These conditions are particularly acute during the early stages of development, when projects rely on higher-risk, higher-cost forms of capital, such as predevelopment and construction financing, which are often the most difficult to secure.
A 2025 study found that California is the most expensive state for multifamily housing production, in part due to the long timeline it takes to go from an application to an approved project.[9] This report found that longer production timelines are strongly associated with higher costs, and the time to bring a project to completion in California is more than 22 months longer than the average time required in Texas.[10] These cost and timing challenges can make it difficult to build housing at all in the current environment, and are especially pronounced for high-rise and other complex urban developments, which carry higher construction costs, longer timelines, and greater exposure to financing risk. More broadly, when development projects are perceived as too costly or risky, capital may be redirected to lower-risk investments or to other states with more predictable timelines and lower development costs, further constraining housing production in California.
A separate analysis by the California Housing Partnership compares the cost of market rate development prototypes developed by the Terner Center with the median cost of developing affordable rental homes. In the four regions analyzed, the study found that the cost of developing one unit of affordable housing ranged from approximately $480,000 to $713,000, while the cost of developing one unit of market rate housing in the state ranged from approximately $508,000 to $637,000.[11] The increased cost for the affordable units can be attributed, in part, to the difficulty associated with assembling a capital stack for affordable housing development, the complex regulations that these affordable units must comply with, and the added cost of labor requirements tied to certain funding sources used by affordable housing developers.
This Bill: This bill establishes a statewide framework to facilitate high-density housing development in downtown, transit-rich areas by requiring certain large cities with a population of at least 400,000 in the 2020 U.S. Census with at least two qualifying TOD stops to designate “regional transit hub districts” of a specified minimum size based on population. Under the bill, Los Angeles (population over 2,000,000) must designate at least 1.5 square miles; San Diego and San Jose (population between 1,000,000 and 2,000,000) must designate at least 1 square mile; and San Francisco, Sacramento, Long Beach, and Oakland (population between 400,000 and 1,000,000) must each designate at least 0.5 square miles in districts, based on 2020 Census populations. Other cities may opt in and elect to designate a regional transit hub district in order for downtown developments to be eligible for project financing through the Fund, as further explained below.
Within these districts, the bill establishes minimum zoning standards that local governments must allow, including a base maximum height of at least 150 feet, with at least 25% of the district permitting heights of at least 450 feet; a minimum floor area ratio (FAR) of 6, with at least 25% of the district allowing an FAR of at least 12; a minimum density of 60 dwelling units per acre, and a density cap of no less than 200 dwelling units per acre, with at least 25% of the district allowing unlimited density. This bill prohibits cities from imposing lower caps and requires that housing be an allowable use throughout these areas, while still permitting local governments to adopt other zoning standards that do not conflict with these minimum thresholds. In effect, this bill establishes a statewide zoning floor for downtown areas, increasing allowable development intensity in proximity to major transit.
Within these designated districts, qualifying “downtown housing developments” are subject to additional requirements and benefits. Projects must meet the same labor requirements currently included in SB 423 (Wiener), the same affordability requirements included in SB 79 (Wiener), and satisfy site eligibility and anti-displacement provisions. These qualifying downtown housing developments are eligible for ministerial, streamlined approval and are exempt from discretionary review processes, while still requiring environmental site assessments and remediation where necessary. Projects may also layer on additional incentives through the DBL, with the bill’s zoning standards serving as the applicable base zoning for calculating concessions, incentives, waivers, and reductions of development standards.
In addition, this bill creates the Downtown Revitalization Loan Fund, administered by CalHFA, to provide low-interest, revolving loans covering up to 30% of project costs for eligible developments. Loans are issued at or below the state’s pooled investment rate and must be repaid upon project completion, with repayments recycled to support future projects. The Fund is considered a continuous appropriation, because CalHFA can continue to issue additional loans upon repayment without future appropriation from the Legislature.
By pairing significant upzoning and ministerial approval with a dedicated financing source, this bill seeks to incentivize large-scale housing production in transit-accessible downtown areas and support broader efforts to revitalize urban cores.
Arguments in Support: California YIMBY, one of the bill’s co-sponsors, writes in support: “AB 2074 requires California’s seven largest transit-rich cities—those with populations over 400,000, including Los Angeles, San Diego, San Jose, San Francisco, Sacramento, Oakland, and Long Beach—to designate regional transit hub districts. Within these districts, the bill establishes new development standards, including a baseline height limit of 150 feet and a requirement that at least 25 percent of each district allow buildings of 450 feet or more. Residential projects that meet the bill’s labor standards would qualify for streamlined, ministerial approval.
By requiring cities to designate transit-rich districts and allow substantial residential capacity, AB 2074 will unlock new housing opportunities in the places where homes are most sustainable, accessible, and economically productive—near jobs, transit, and existing infrastructure. This approach helps ensure that California’s growth is directed to areas best suited to support vibrant, transit-oriented communities while reducing barriers that too often delay or prevent housing construction.”
Arguments in Opposition: The California Housing Consortium writes in opposition: “While the intent of the bill is to revitalize downtown areas, we have concerns with the unintended consequences of the legislation. At a time when the state’s general fund has a growing structural deficit, creating a loan fund that is limited to a specific project type in specific locations raises serious issues. As currently written, the bill would subsidize market-rate luxury housing unaffordable to most Californians. Limited public dollars should subsidize homes that are affordable to low-income people, not developments with mostly market-rate housing. Furthermore, given the project requirements, there are only a few jurisdictions that would benefit from these funds, inadvertently exacerbating regional economic disparities. For these reasons, we hold an “oppose” position on AB 2074.
Revitalizing downtowns is a laudable goal, and we would welcome the opportunity to partner with you to craft a policy that will increase the supply of housing that is affordable to Californians.”
Committee Amendments: The Committee may wish to consider the following amendments:
- Moving all of the content in 65913.13(d)(1), and 65913.13(g), which contain requirements related to the whole transit hub district, to 65913.13(c) of the bill so that all district-wide standards are in the same subdivision.
- Clarifying that the base density, for purposes of calculating any density bonus on downtown housing developments, is calculated using all of the land use controls in 65913.13.
- Add language providing that instead of allowing the city to apply “zoning standards” to downtown housing developments, it may apply “other objective zoning standards, objective subdivision standards, and objective design review standards.”
- Require all downtown housing development projects under this bill to meet the site requirements in GOV 65913.4(a)(6).
- Require downtown housing developments under this bill to comply with any applicable local demolition and antidisplacement standards established through a local ordinance.
Related Legislation
SB 79 (Wiener), Chapter 512, Statutes of 2025. Established a streamlined, ministerial approval process for TOD housing development projects.
AB 507 (Haney), Chapter 493, Statutes of 2025. Established a streamlined, ministerial approval process for adaptive reuse housing development projects.
AB 1490 (Lee), Chapter 764, Statutes of 2023. Established a streamlined, ministerial approval process for “extremely affordable adaptive reuse projects.”
SB 423 (Wiener), Chapter 778, Statutes of 2023. Amended SB 35 (Wiener), which created a streamlined, ministerial local approvals process for housing development proposals in jurisdictions that have failed to produce sufficient housing to meet their RHNA.
SB 6 (Caballero), Chapter 659, Statutes of 2022. Established the Middle Class Housing Act of 2022, allowing residential uses on commercially zoned property without requiring a rezoning.
AB 2011 (Wicks), Chapter 647, Statutes of 2021: Created the Affordable Housing and High Road Jobs Act of 2022, creating a streamlined, ministerial local review and approvals process for certain affordable and mixed-use housing developments in commercial zoning districts and commercial corridors. A current bill, AB 2243 (Wicks) would amend AB 2011 to facilitate the conversion of office buildings to residential uses, among other provisions.
Triple-Referred: This bill was also referred to the Committees on Local Government and Natural Resources, where it will be heard should it pass out of this Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
California YIMBY (Sponsor)
State Building & Construction Trades Council of California (Co-Sponsor)
Circulate Planning & Policy
Opposition
California Housing Consortium
Equitable Land Use Alliance
Oppose Unless Amended
Families and Homes San Jose
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 ↑
David Garcia, Ian Carlton, Lacy Patterson, and Jacob Strawn, Making It Pencil: The Math Behind Housing Development (2023 Update), Terner Center for Housing Innovation, December 2023, https://ternercenter.berkeley.edu/research-and-policy/making-it-pencil-2023/ ↑
IBID. ↑
https://www.rand.org/pubs/research_reports/RRA3743-1.html ↑
https://www.rand.org/pubs/research_reports/RRA3743-1.html ↑
Mark Stivers, Affordable Housing Compares Favorably to Market-Rate Housing From a Cost Perspective, California Housing Partnership, January 2024: https://chpc.net/affordable-housing-compares-favorably-to-market-rate-housing-from-a-cost-perspective/#:~:text=It%20turns%20out%20that%20costs,market%2Drate%20developments%20do%20not. ↑
Discussed in Hearing
1MIN
Assembly Floor
9SEC
Senate Floor
3MIN
Senate Floor
10MIN
Senate Standing Committee on Local Government
9MIN
Senate Standing Committee on Housing
4MIN
Assembly Floor
9MIN
Assembly Standing Committee on Natural Resources
10MIN
Assembly Standing Committee on Local Government
Bill Author
Bill Co-Author(s):
