The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. Existing law exempts various projects from CEQA, including projects related to the conversion of a structure with a certificate of occupancy as a motel, hotel, residential hotel, or hostel to supportive or transitional housing, as defined, that meet certain conditions.

This bill would exempt from CEQA the new construction of a single-family dwelling that meets specified conditions, including that the project contains one single-family dwelling that is 1,500 square feet or less with no more than 3 bedrooms, the property is intended to be sold to a first-time homebuyer, home buyer, and the lead agency determines that the developer of the project or the property owner provided sufficient legal commitments to meet the requirements of the exemption. The bill would require the lead agency, if it determines that a project qualifies for the exemption, to file a notice of exemption with the Office of Land Use and Climate Innovation, formerly known as the Office of Planning and Research, and the county clerk, as specified. By placing additional requirements on the lead agency to make a determination on whether the CEQA exemption applies, and on local agencies to determine whether the project developer provided sufficient legal commitments, as described, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. Existing law exempts various projects from CEQA, including projects related to the conversion of a structure with a certificate of occupancy as a motel, hotel, residential hotel, or hostel to supportive or transitional housing, as defined, that meet certain conditions.

This bill would exempt from CEQA the new construction of a single-family dwelling that meets specified conditions, including that the project contains one single-family dwelling that is 1,500 square feet or less with no more than 3 bedrooms, the property is intended to be sold to a first-time homebuyer, and the lead agency determines that the developer of the project or the property owner provided sufficient legal commitments to meet the requirements of the exemption. The bill would require the lead agency, if it determines that a project qualifies for the exemption, to file a notice of exemption with the Office of Land Use and Climate Innovation, formerly known as the Office of Planning and Research, and the county clerk, as specified. By placing additional requirements on the lead agency to make a determination on whether the CEQA exemption applies, and on local agencies to determine whether the project developer provided sufficient legal commitments, as described, the bill would impose a state-mandated local program.

(2)The California Constitution generally limits ad valorem taxes on real property to 1% of the full cash value of that property, defined as the county assessors valuation of real property as shown on the 197576 tax bill and, thereafter, the appraised value of the property when purchased, newly constructed, or a change in ownership occurs after the 1975 assessment, subject to an annual inflation adjustment not to exceed 2%. Existing property tax law provides for the payment of taxes on the secured roll in 2 installments, which are due and payable on November 1 and February 1, respectively. Under existing property tax law, unpaid property taxes become delinquent and subject to specified penalties and fees.

This bill would require, except as provided, payment of property taxes for a property to be deferred, without penalty or interest, until a change in ownership occurs, if specified requirements are met, including that the property is zoned for residential use and contains one newly constructed single-family dwelling that is 1,500 square feet or less with no more than 3 bedrooms. The bill would require the property owner to notify the assessor if specified conditions occur, including if the property is leased or rented, and would end the deferment upon notification. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.

(3)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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

ASSEMBLY THIRD READING

ATR Bill Id:AB 317

Author:(Jackson)

As Amended Ver:April 29, 2025

Majority vote

SUMMARY

Establishes an exemption from the California Environmental Quality Act (CEQA) for new construction of a single-family dwelling that is 1,500 square feet or less with no more than three bedrooms, and is intended to be sold to a first-time homebuyer for less than $400,000.

Major Provisions

1. Establishes CEQA exemption for new construction of a single-family dwelling that meets all of the following criteria:
   1. The dwelling is 1,500 square feet or less with no more than three bedrooms.
   2. The property is intended to be sold, or transferred for less than $400,000.
   3. The property is intended to be sold or transferred to a first-time homebuyer.
   4. The lead agency determines that the developer of the project or the property owner provided sufficient legal commitments to meet these requirements.
2. Requires the lead agency to file a notice of exemption with the Office of Land Use and Climate Innovation and the county clerk of the county in which the project is located as specified.

COMMENTS

CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA Guidelines, for a wide range of residential projects. Since 1978, CEQA has included statutory exemptions for housing. There are now at least 15 distinct CEQA exemptions for housing projects. The majority of residential projects are approved via exemption or negative declaration under CEQA, or through ministerial permits where CEQA does not apply.

A few existing CEQA exemptions are specific to projects with an affordable housing fraction, the rest are available to affordable and market-rate projects alike. Each exemption includes a range of conditions, including requirements for prior planning-level review, as well as limitations on the location and characteristics of the site. These conditions are intended to guard against the approval of projects with significant environmental impacts that go undisclosed and unmitigated – endangering workers, residents and the greater environment. More recently, bills such as SB 35 (Wiener), Chapter 366, Statutes of 2017, and AB 2011 (Wicks), Chapter 647, Statutes of 2022, have established ministerial approval for housing projects, where local discretionary review, including CEQA, is replaced with construction labor requirements and exclusion of specified sensitive sites.

The CEQA Guidelines have included categorical exemptions for housing projects for decades, allowing projects with no significant environmental impacts to proceed to approval without environmental review. These exemptions are well-known and widely used for small housing projects of one to six units, as well larger housing projects in incorporated areas, on infill sites up to five acres, with no limit on the number of units.

According to the Author

AB 317 seeks to address the profound challenges that California′s housing crisis has placed on first-time buyers. The rising cost of homeownership, combined with lengthy regulatory delays, has made it difficult for many hardworking individuals and families to achieve the dream of owning a home. AB 317, the California First-Time Homeownership Dream Act, offers a practical solution by exempting small, affordable homes from CEQA review, thereby increasing the efficiency of the approval process. By cutting through bureaucratic delays, this bill helps make homeownership more attainable for those who need it most. I believe that providing Californians with a fair opportunity to own a home will foster stronger communities and contribute to economic stability. AB 317 is a step in the right direction to ensure that all Californians can own a home.

Arguments in Support

According to the Southwest California Legislative Council, AB 317 supports economic growth and strengthens communities by making homeownership attainable for more Californians. By facilitating the development of affordable housing and reducing financial obstacles, AB 317 helps address the state′s housing crisis while promoting sustainable growth and local investment.

Arguments in Opposition

According to Livable California, this bill′s exemption doesn′t seem appropriate to approving a series of single-family homes. To the contrary, if unusual circumstances, such as a location with a high probability of flooding or wildfire ignition, are involved, acknowledging and addressing the associated potentially significant impacts would seem imperative.

FISCAL COMMENTS

According to the Assembly Appropriations Committee, negligible state costs.

VOTES

ASM NATURAL RESOURCES: 14-0-0

YES: Bryan, Alanis, Connolly, Ellis, Flora, Garcia, Haney, Hoover, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache, Ta, Tangipa

UPDATED

VERSION: April 29, 2025

CONSULTANT: Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0000424

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 317

Author:(Jackson) – As Amended Ver:April 29, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill establishes an exemption from the California Environmental Quality Act (CEQA) for the new construction of a single-family dwelling that meets specified criteria.

Specifically, this bill, among other things:

1. Establishes a new CEQA exemption for the new construction of a single-family dwelling that meets all of the following criteria:
   1. The single-family dwelling is 1,500 square feet or less with no more than three bedrooms.
   2. The property is intended to be sold, or transferred for less than $400,000.
   3. The property is intended to be sold or transferred to a first-time homebuyer.
   4. The applicable lead agency determines that the developer of the project or the property owner provided sufficient legal commitments to meet requirements of this bill.
2. Requires the lead agency to file a notice of exemption with the Office of Land Use and Climate Innovation and the county clerk of the county in which the project is located, as specified.

FISCAL EFFECT:

Negligible state costs.

COMMENTS:

1) Purpose. According to the author:

AB 317 seeks to address the profound challenges that California’s housing crisis has placed on first-time buyers. The rising cost of homeownership, combined with burdensome property taxes and lengthy regulatory delays, has made it difficult for many hardworking individuals and families to achieve the dream of owning a home. AB 317, the California First-Time Homeownership Dream Act, offers a practical solution by…exempting small, affordable homes from CEQA review, thereby increasing the efficiency of the approval process.

2) Background. CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA Guidelines, for a wide range of residential projects. Since 1978, CEQA has included statutory exemptions for housing. There are now at least 15 distinct CEQA exemptions for housing projects. The majority of residential projects are approved via exemption or negative declaration under CEQA, or through ministerial permits where CEQA does not apply.

A few CEQA exemptions are specific to projects with an affordable housing fraction; the rest are available to affordable and market-rate projects alike. Each exemption includes a range of conditions, including requirements for prior planning-level review, as well as limitations on the location and characteristics of the site. These conditions guard against the approval of projects with significant environmental impacts that go undisclosed and unmitigated. More recently, bills such as SB 35 (Wiener), Chapter 366, Statutes of 2017, and AB 2011 (Wicks), Chapter 647, Statutes of 2022, have established ministerial approval for housing projects, where local discretionary review, including CEQA, is replaced with construction labor requirements and exclusion of specified sensitive sites.

The CEQA Guidelines have included categorical exemptions for housing projects for decades, allowing projects with no significant environmental impacts to proceed to approval without environmental review. These exemptions are well-known and widely used for small housing projects of one to six units, as well larger housing projects in incorporated areas, on infill sites up to five acres, with no limit on the number of units.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 7, 2025

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Isaac G. Bryan, Chair

ABPCA Bill Id:AB 317 (

Author:Jackson) – As Introduced Ver:January 24, 2025

SUBJECT: California First Time Homeowner Dream Act

SUMMARY: Establishes an exemption from the California Environmental Quality Act (CEQA) for new construction of a single-family dwelling that is 1,500 square feet or less with no more than three bedrooms, and is intended to be sold to a first-time homebuyer for less than $400,000. Also provides for deferral of property taxes on eligible dwellings.

EXISTING LAW:

1. The CEQA Guidelines (Title 14, Division 6, Chapter 3 of the California Code of Regulations) include categorical exemptions for residential projects, including:
   1. Section 15303 for new construction or conversion of small structures, including:
      1. One single-family residence, or a second dwelling unit in a residential zone. In urbanized areas, up to three single-family residences may be constructed or converted under this exemption.
      2. A duplex or similar multi-family residential structure, totaling no more than four dwelling units. In urbanized areas, this exemption applies to apartments, duplexes and similar structures designed for not more than six dwelling units.
   2. Section 15332 for larger, infill development projects, as follows:
      1. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations;
      2. The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses;
      3. The project site has no value as habitat for endangered, rare, or threatened species;
      4. Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and,
      5. The site can be adequately served by all required utilities and public services.
2. Exempts from CEQA multi-family residential and mixed-use housing projects on infill sites within cities and unincorporated areas that are within the boundaries of an urbanized area or urban cluster. (Public Resources Code (PRC) 21159.25)
3. Exempts from CEQA any residential development project, including any subdivision, or any zoning change that is undertaken to implement and is consistent with a specific plan for which an environmental impact report (EIR) has been certified, unless substantial changes or new information require the preparation of a supplemental EIR for the specific plan, in which case the exemption applies once the supplemental EIR is certified. (Government Code (GC) 65457)
4. Exempts from CEQA specified residential housing projects which meet detailed criteria established to ensure the project does not have a significant effect on the environment, including:
   
   1. Affordable agricultural housing projects not more than 45 units within a city, or 20 units within an agricultural zone, on a site not more than five acres in size;
      
   2. Urban affordable housing projects not more than 100 units on a site not more than five acres in size; and,
      
   3. Urban infill housing projects not more than 100 units on a site not more than four acres in size which is within one-half mile of a major transit stop.

(PRC 21159.20-21159.24)

1. Requires metropolitan planning organizations (MPOs) to include a sustainable communities strategy (SCS), as defined, in their regional transportation plans, or an alternative planning strategy (APS), for the purpose of reducing greenhouse gas (GHG) emissions, aligns planning for transportation and housing, and creates specified incentives for the implementation of the strategies, including CEQA exemption or abbreviated review for residential or mixed-use residential "transit priority projects" if the project is consistent with the use designation, density, building intensity, and applicable policies specified for the project area in either an approved SCS or APS. (PRC 21155.1)
2. Exempts from CEQA residential, mixed-use, and "employment center" projects, as defined, located within "transit priority areas," as defined, if the project is consistent with an adopted specific plan and specified elements of an SCS or APS. (PRC 21155.4)
3. Establishes a ministerial approval process (i.e., not subject to CEQA) for certain multifamily affordable housing projects that are proposed in local jurisdictions that have not met regional housing needs. Requires eligible projects to meet specified standards, including paying prevailing wage to construction workers and use of a skilled and trained workforce. (GC 65913.4, added by SB 35 (Wiener), Chapter 366, Statutes of 2017)
4. Establishes a ministerial approval process for affordable housing projects in commercial zones. Requires eligible projects to pay prevailing wage to construction workers and requires projects of 50 units or more to participate in an apprenticeship program and make specified healthcare contributions for construction workers. (GC 65912.100 et seq., added by AB 2011 (Wicks), Chapter 647, Statutes of 2022)
5. Existing property tax law provides for the payment of taxes on the secured roll in two installments, which are due and payable on November 1 and February 1, respectively. Under existing property tax law, unpaid property taxes become delinquent and subject to specified penalties and fees.

THIS BILL:

1. Establishes CEQA exemption for new construction of a single-family dwelling that meets all of the following criteria:
   1. The dwelling is 1,500 square feet or less with no more than three bedrooms.
   2. The property is intended to be sold, or transferred for less than $400,000.
   3. The property is intended to be sold or transferred to a first-time homebuyer.
   4. The lead agency determines that the developer of the project or the property owner provided sufficient legal commitments to meet these requirements.
2. Requires the lead agency to file a notice of exemption with the Office of Land Use and Climate Innovation and the county clerk of the county in which the project is located as specified.
3. Require payment of property taxes for an eligible property to be deferred, without penalty or interest, until a change in ownership occurs. Requires the property owner to notify the assessor if specified conditions occur, including if the property is leased or rented, and would end the deferment upon notification. (Note the property tax provisions of this bill are the jurisdiction of the Revenue and Taxation Committee, to which the bill has been double-referred.)

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

AB 317 seeks to address the profound challenges that California’s housing crisis has placed on first-time buyers. The rising cost of homeownership, combined with burdensome property taxes and lengthy regulatory delays, has made it difficult for many hardworking individuals and families to achieve the dream of owning a home. AB 317, the California First-Time Homeownership Dream Act, offers a practical solution by providing property tax deferral for eligible first-time buyers and exempting small, affordable homes from CEQA review, thereby increasing the efficiency of the approval process. By reducing financial barriers and cutting through bureaucratic delays, this bill helps make homeownership more attainable for those who need it most. I believe that providing Californians with a fair opportunity to own a home will foster stronger communities and contribute to economic stability. AB 317 is a step in the right direction to ensure that all Californians can own a home.

1. Existing CEQA exemptions for housing. CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA Guidelines, for a wide range of residential projects. Since 1978, CEQA has included statutory exemptions for housing. There are now at least 15 distinct CEQA exemptions for housing projects. The majority of residential projects are approved via exemption or negative declaration under CEQA, or through ministerial permits where CEQA does not apply.

A few existing CEQA exemptions are specific to projects with an affordable housing fraction, the rest are available to affordable and market-rate projects alike. Each exemption includes a range of conditions, including requirements for prior planning-level review, as well as limitations on the location and characteristics of the site. These conditions are intended to guard against the approval of projects with significant environmental impacts that go undisclosed and unmitigated – endangering workers, residents and the greater environment. More recently, bills such as SB 35 (Wiener) and AB 2011 (Wicks) have established ministerial approval for housing projects, where local discretionary review, including CEQA, is replaced with construction labor requirements and exclusion of specified sensitive sites.

The CEQA Guidelines have included categorical exemptions for housing projects for decades, allowing projects with no significant environmental impacts to proceed to approval without environmental review. These exemptions are well-known and widely used for small housing projects of one to six units, as well larger housing projects in incorporated areas, on infill sites up to five acres, with no limit on the number of units.

1. Double referral. This bill has been double-referred to the Revenue and Taxation Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

Southwest California Legislative Council

Opposition

Livable California (unless amended)

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. /