Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations.

This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, upon request by a small rural jurisdiction, to the extent feasible, the bill would require HCD to evaluate materials from the small rural jurisdictions housing element submission when determining whether the jurisdiction qualifies as prohousing, but only with respect to those small rural jurisdictions that have a compliant housing element. The bill would also prohibit HCD from requiring small rural jurisdictions to renew their prohousing designation for at least 4 years. The bill would define small rural jurisdiction for these purposes to mean either a city with a population of fewer than 25,000 persons or a county with a population of fewer than 200,000 persons.

This bill would incorporate additional changes to Section 65589.9 of the Government Code proposed by SB 262 to be operative only if this bill and SB 262 are enacted and this bill is enacted last.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations.

This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, upon request by a small rural jurisdiction, to the extent feasible, the bill would require HCD to evaluate materials from the small rural jurisdictions housing element submission when determining whether the jurisdiction qualifies as prohousing, but only with respect to those small rural jurisdictions that have a compliant housing element. The bill would also prohibit HCD from requiring small rural jurisdictions to renew their prohousing designation for at least 4 years. The bill would define small rural jurisdiction for these purposes to mean either a city with a population of fewer than 25,000 persons or a county with a population of fewer than 200,000 persons.

This bill would incorporate additional changes to Section 65589.9 of the Government Code proposed by SB 262 to be operative only if this bill and SB 262 are enacted and this bill is enacted last.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations.

This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, upon request by a small rural jurisdiction, to the extent feasible, the bill would require HCD to evaluate materials from the small rural jurisdictions housing element submission when determining whether the jurisdiction qualifies as prohousing, but only with respect to those small rural jurisdictions that have a compliant housing element. The bill would also prohibit HCD from requiring small rural jurisdictions to renew their prohousing designation for at least 4 years. The bill would define small rural jurisdiction for these purposes to mean either a city with a population of fewer than 25,000 persons or a county with a population of fewer than 200,000 persons.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations.

This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, upon request by a small rural jurisdiction, to the extent feasible, the bill would require HCD to evaluate materials from a nonentitlement the small rural jurisdictions housing element submission when determining whether the jurisdiction qualifies as prohousing, but only with respect to those nonentitlement jursidictions small rural jurisdictions that have a compliant housing element. The bill would also prohibit HCD from requiring nonentitlement small rural jurisdictions to renew their prohousing designation for at least 5 4 years. The bill would define nonentitlement small rural jurisdiction for these purposes to mean either a city with a population of fewer than 50,000 25,000 persons or a county with a population of fewer than 200,000 persons.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations.

This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, the bill would require HCD to use evaluate materials from a nonentitlement jurisdictions housing element submission when determining whether the jurisdiction qualifies as prohousing. prohousing, but only with respect to those nonentitlement jursidictions that have a compliant housing element. The bill would also prohibit HCD from requiring nonentitlement jurisdictions with populations less than 100,000 persons to renew their prohousing designation before the next housing element cycle, as provided. for at least 5 years. The bill would define nonentitlement jurisdiction for these purposes to mean either a city with a population of fewer than 50,000 persons or a county with a population of fewer than 200,000 persons.

Existing law, the Planning and Zoning Law, requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. Existing law requires HCD to designate jurisdictions as prohousing pursuant to emergency regulations adopted by HCD, as prescribed, and to report those designations to the Office of Land Use and Climate Innovation. Existing law specifies that these emergency regulations will remain in effect until HCD promulgates permanent prohousing regulations.

This bill would instead require HCD to designate jurisdictions as prohousing pursuant to permanent regulations adopted by HCD to implement these provisions, as specified. Beginning with the 7th housing element cycle, the bill would require HCD to use materials from a jurisdictions housing element submission when determining whether the jurisdiction qualifies as prohousing. The bill would also prohibit HCD from requiring jurisdictions with populations less than 100,000 persons to renew their prohousing designation before the next housing element cycle, as provided.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 36

Author:(Soria)

As Amended Ver:September 04, 2025

Majority vote

SUMMARY

Requires the Department of Housing and Community Development (HCD) to evaluate materials from a small rural jurisdiction's housing element submission for evidence of prohousing local policies and prohibits HCD from requiring those jurisdictions to renew their prohousing designations for at least five years.

Senate Amendments

1. Delete references to "nonentitlement jurisdictions" and instead apply the bill to "small rural jurisdictions," as defined.
2. Lower the population threshold for cities to be subject to the bill from those with fewer than 50,000 persons to those with fewer than 25,000 persons.
3. Include chaptering amendments.

COMMENTS

Adoption and Implementation of Housing Elements: One important tool in addressing the state's housing crisis is to ensure that all of the state's 539 cities and counties appropriately plan for new housing. Such planning is required through the housing element of each community's General Plan, which outlines a long-term plan for meeting the community's existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in most highly populated parts of the state, and five years in areas with smaller populations. Cities must adopt a legally valid housing element by their statutory deadline for adoption. Failure to do so can result in certain escalating penalties, including exposure to the "builder's remedy" as well as public or private lawsuits, financial penalties, potential loss of permitting authority, or court receivership.

It is critical that local jurisdictions adopt legally compliant housing elements on time in order to meet statewide housing goals and create the environment locally for the successful construction of desperately needed housing at all income levels. Unless communities plan for production and preservation of affordable housing, new housing will be slow to build. Adequate zoning, removal of regulatory barriers, protection of existing stock and targeting of resources are essential to obtaining a sufficient permanent supply of housing affordable to all economic segments of the community. Although not requiring the community to develop the housing, housing element law requires the community to plan for housing. Recognizing that local governments may lack adequate resources to house all those in need, the law nevertheless mandates that the community do all that it can and that it not engage in exclusionary zoning practices or perpetuate housing discrimination patterns or impediments to fair housing.

Prohousing Designation: In 2019, the Legislature enacted AB 101 (Committee on Budget), Chapter 26, that required HCD to designate cities and counties as pro-housing if their local policies facilitate the planning, approval, or construction of housing. "Prohousing" jurisdictions receive a competitive advantage – in the form of additional application points or preferences – in applying for certain state funding programs, including the Affordable Housing and Sustainable Communities Program, Transformative Climate Communities Program, and infill infrastructure programs.

Although AB 101 provided examples of prohousing local polices, HCD had discretion over the final designation criteria, which they adopted via emergency regulations in July 2021 and subsequently converted to permanent regulations in April 2022 (California Code of Regulations, Title 25, Sections 6600-6608). Some examples of prohousing local policies that local jurisdictions can identify as evidence in their applications to HCD to be awarded the prohousing designation include reduction of development impact fees, creating new ministerial approval pathways for housing and mixed-use projects, or creating local housing trust funds. According to HCD, as of March 2025, 52 jurisdictions have been awarded the prohousing designation.

Currently, program regulations require a local governing body to adopt a formal resolution directing the jurisdiction to submit a prohousing designation application. This bill would require HCD, beginning in the seventh housing element cycle, to evaluate the materials in a nonentitlement jurisdiction's housing element submission for evidence of prohousing local policies that would otherwise have to be identified by the local government in a formal application for prohousing status. The requirement would only apply to nonentitlement jurisdictions – either cities with a population fewer than 50,000 or counties with a population fewer than 200,000.

The bill would also prohibit HCD from requiring nonentitlement jurisdictions who have been awarded the prohousing designation to renew their designation for at least five years. The program regulations currently specify that a designation expires three years from the first day of the January following the date of designation and allow a jurisdiction to apply for a renewal no earlier than six months before its designation expires.

The author contends these changes will help more rural and smaller jurisdictions qualify for the prohousing designation and reduce the amount of staff time and capacity taken up by submitting a formal application and renewal every three years. HCD would retain the ability to monitor and revoke a prohousing designation if a jurisdiction takes an action that is inconsistent with the program rules or fails to implement policies it previously had committed to implement or enact.

According to the Author

"In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state's housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the PDP, which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents. AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead."

Arguments in Support

According to the Rural County Representatives of California, the California State Association of Counties, and the League of California Cities, "The PDP designates local governments going above and beyond the requirements of state housing law to promote housing development in their communities as 'prohousing,' rewarding them with priority access to critical housing and infrastructure programs. However, the application for the PDP is complex and requires extensive documentation, making it difficult for rural jurisdictions with limited staff to apply even when they have adopted strong prohousing policies. AB 36 eases the administrative burden on smaller cities and counties by having HCD analyze the information local governments already provide in their housing elements to determine whether they qualify as prohousing. This minimizes unnecessary duplication of work by local governments with limited resources without lowering the standards to be designated as prohousing. To combat California's housing crisis, we must equitably recognize and incentivize the work local governments of all sizes are doing to promote housing development. This bill achieves our mutual goal of focusing HCD's resources to assist local governments' efforts to meet the state's housing needs."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations, HCD anticipates minor and absorbable costs to adopt new permanent prohousing designation regulations for small jurisdictions and additional monitoring processes.

VOTES:

ASM HOUSING AND COMMUNITY DEVELOPMENT: 12-0-0

YES: Haney, Patterson, Ávila Farías, Caloza, Gallagher, Garcia, Kalra, Lee, Quirk-Silva, Ta, Wicks, Wilson

ASM LOCAL GOVERNMENT: 10-0-0

YES: Carrillo, Ta, Hoover, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson

ASM APPROPRIATIONS: 14-0-1

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

ABS, ABST OR NV: Pellerin

ASSEMBLY FLOOR: 69-0-10

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis

UPDATED

VERSION: September 04, 2025

CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0001588

 CONSENT  

Bill No: AB 36

Author: Soria (D)

Amended: 9/4/25 in Senate

Vote: 21

SENATE HOUSING COMMITTEE: 10-0, 7/15/25

AYES: Wahab, Seyarto, Arreguín, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla

NO VOTE RECORDED: Cabaldon

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote

SUBJECT: Housing elements: prohousing designation

SOURCE: Author

DIGEST:

This bill: 1) requires the California Department of Housing and Community Development (HCD), upon request by a small rural jurisdiction, to analyze existing housing element materials from the jurisdiction to determine whether or not they qualify for the Prohousing Designation Program (PDP); 2) clarifies that HCD shall only review those materials if the jurisdiction has a compliant housing element; 3) prohibits HCD from requiring “small rural jurisdictions” renew their prohousing designation for at least 4 years; and, 4) preserves HCD’s authority to revoke a jurisdiction’s designation.

Senate Floor Amendments of 9/4/2025 resolve chaptering conflicts with SB 262 (Wahab).

ANALYSIS

Existing state law:

1. Provides for the acknowledgement and support of jurisdictions that have played an active role in accelerating housing production, under the PDP.
2. Authorizes HCD to award bonus application points to jurisdictions — who have been designated as prohousing — for state funding, giving them a competitive advantage.
3. Enables jurisdictions that receive a prohousing designation to also be eligible to apply for the Prohousing Incentive Program (PIP), which awards additional funds to support accelerated affordable housing development and preservation.

This bill:

1. Defines “small rural jurisdictions” as either cities with fewer than 25,000 people, or counties with fewer than 200,000 people.
2. Requires HCD to review, upon request from small rural jurisdictions with compliant housing elements, previously submitted housing element materials and determine whether or not they qualify outright for the prohousing designation without submitting additional information.

Background

Housing elements. Since 1969, California has required that all cities and counties adequately plan to meet the housing needs of everyone in the community, at all income levels. California’s local governments meet this requirement by adopting housing plans as part of their “general plan” (also required by the state). A general plan serves as a local government’s blueprint for how the city and/or county will grow and develop and includes eight elements: land use, transportation, conservation, noise, open space, safety, environmental justice, and housing. California’s Housing Element Law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests largely on the effective implementation of local general plans and, in particular, local housing elements.

Prohousing Designation Program (PDP). The Prohousing Designation Program was established by the 2019-20 California Budget Act. This program seeks to acknowledge and support jurisdictions that go above-and-beyond state housing law to help accelerate housing production. A jurisdiction with a Prohousing Designation may receive priority processing or funding points when applying for several funding programs, including Affordable Housing and Sustainable Communities, Infill Infrastructure Grant, Transformative Climate Communities, Solutions for Congested Corridors, Local Partnership Program, Transit and Intercity Rail Capital Program, and Sustainable Transportation Planning Grant Program.

PIP. The Prohousing Incentive Program is intended to increase participation in HCD’s Prohousing Designation Program by pairing the designation with an impactful award grant that aids cities and counties in creating and conserving affordable housing. HCD uses a points-based system to evaluate PDP applications across these four categories: implementing prohousing zoning and land use policies; accelerating new housing production timelines; reducing costs associated with housing production; and providing financial subsidies and public resources to aid housing production.

Comments

1. Author’s statement. “In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state’s housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the Prohousing Designation Program (PDP), which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents. AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead.”
2. Leveling the playing field for smaller jurisdictions. This bill would allow small rural jurisdictions to request HCD review the housing element materials they are already required to submit as part of their Annual Progress Report (APR) to determine if they qualify for the PDP. Proponents of this bill have described the undue administrative burden placed on smaller, more rural jurisdictions who may otherwise qualify as “prohousing,” but may not have the administrative bandwidth to submit additional materials for consideration. This bill aims to shift some of that administrative burden onto HCD, and in turn, empower these jurisdictions to have greater access to state housing funds.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 9/4/25)

California State Association of Counties
CDP Rural Caucus
League of California Cities
Rural County Representatives of California

OPPOSITION: (Verified 9/4/25)

None received.

ASSEMBLY FLOOR: 69-0, 5/8/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis

Prepared by: Ryan Hardmeyer / HOUSING / (916) 651-4124

9/8/25 21:05:53

**** END ****

 THIRD READING 

Bill No: AB 36

Author: Soria (D)

Amended: 8/18/25 in Senate

Vote: 21

SENATE HOUSING COMMITTEE: 10-0, 7/15/25

AYES: Wahab, Seyarto, Arreguín, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla

NO VOTE RECORDED: Cabaldon

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote

SUBJECT: Housing elements: prohousing designation

SOURCE: Author

DIGEST:

This bill 1) requires the California Department of Housing and Community Development (HCD), upon request by a small rural jurisdiction, to analyze existing housing element materials from the jurisdiction to determine whether or not they qualify for the Prohousing Designation Program (PDP); 2) clarifies that HCD shall only review those materials if the jurisdiction has a compliant housing element; 3) prohibits HCD from requiring “small rural jurisdictions” renew their prohousing designation for at least 4 years; and, 4) preserves HCD’s authority to revoke a jurisdiction’s designation.

ANALYSIS:

Existing state law:

1. Provides for the acknowledgement and support of jurisdictions that have played an active role in accelerating housing production, under the PDP.
2. Authorizes HCD to award bonus application points to jurisdictions — who have been designated as prohousing — for state funding, giving them a competitive advantage.
3. Enables jurisdictions that receive a prohousing designation to also be eligible to apply for the Prohousing Incentive Program (PIP), which awards additional funds to support accelerated affordable housing development and preservation.

This bill:

1. Defines “small rural jurisdictions” as either cities with fewer than 25,000 people, or counties with fewer than 200,000 people.
2. Requires HCD to review, upon request from small rural jurisdictions with compliant housing elements, previously submitted housing element materials and determine whether or not they qualify outright for the prohousing designation without submitting additional information.

Background

Housing elements. Since 1969, California has required that all cities and counties adequately plan to meet the housing needs of everyone in the community, at all income levels. California’s local governments meet this requirement by adopting housing plans as part of their “general plan” (also required by the state). A general plan serves as a local government’s blueprint for how the city and/or county will grow and develop and includes eight elements: land use, transportation, conservation, noise, open space, safety, environmental justice, and housing. California’s Housing Element Law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests largely on the effective implementation of local general plans and, in particular, local housing elements.

PDP. The PDP was established by the 2019-20 California Budget Act. This program seeks to acknowledge and support jurisdictions that go above-and-beyond state housing law to help accelerate housing production. A jurisdiction with a Prohousing Designation may receive priority processing or funding points when applying for several funding programs, including Affordable Housing and Sustainable Communities, Infill Infrastructure Grant, Transformative Climate Communities, Solutions for Congested Corridors, Local Partnership Program, Transit and Intercity Rail Capital Program, and Sustainable Transportation Planning Grant Program.

PIP. The PIP is intended to increase participation in HCD’s PDP by pairing the designation with an impactful award grant that aids cities and counties in creating and conserving affordable housing. HCD uses a points-based system to evaluate PDP applications across these four categories: implementing prohousing zoning and land use policies; accelerating new housing production timelines; reducing costs associated with housing production; and providing financial subsidies and public resources to aid housing production.

Comments

Author’s statement. “In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state’s housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the PDP, which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents. AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead.”

Leveling the playing field for smaller jurisdictions. This bill would allow small rural jurisdictions to request HCD review the housing element materials they are already required to submit as part of their Annual Progress Report to determine if they qualify for the PDP. Proponents of the bill have described the undue administrative burden placed on smaller, more rural jurisdictions who may otherwise qualify as “prohousing,” but may not have the administrative bandwidth to submit additional materials for consideration. This bill aims to shift some of that administrative burden onto HCD, and in turn, empower these jurisdictions to have greater access to state housing funds.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 08/25/25)

California State Association of Counties
CDP Rural Caucus
League of California Cities
Rural County Representatives of California

OPPOSITION: (Verified 08/25/25)

None received.

ARGUMENTS IN SUPPORT: Rural County Representatives of California wrote the following in support of this bill, “The PDP designates local governments going above and beyond the requirements of state housing law to promote housing development in their communities as “prohousing”, rewarding them with priority access to critical housing and infrastructure programs However, the application for the PDP is complex and requires extensive documentation, making it difficult for rural jurisdictions with limited staff to apply even when they have adopted strong prohousing policies. AB 36 eases the administrative burden on smaller cities and counties by having HCD analyze the information local governments already provide in their housing elements to determine whether they qualify as prohousing. This minimizes unnecessary duplication of work by local governments with limited resources without lowering the standards to be designated as prohousing. To combat California’s housing crisis, we must equitably recognize and incentivize the work local governments of all sizes are doing to promote housing development. This bill achieves our mutual goal of focusing HCD’s resources to assist local governments’ efforts to meet the state’s housing needs.”

ASSEMBLY FLOOR: 69-0, 5/8/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis

Prepared by: Ryan Hardmeyer / HOUSING / (916) 651-4124

8/29/25 12:59:39

**** END ****

 CONSENT  

Bill No: AB 36

Author: Soria (D)

Amended: 8/18/25 in Senate

Vote: 21

SENATE HOUSING COMMITTEE: 10-0, 7/15/25

AYES: Wahab, Seyarto, Arreguín, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla

NO VOTE RECORDED: Cabaldon

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 69-0, 5/8/25 (Consent) - See last page for vote

SUBJECT: Housing elements: prohousing designation

SOURCE: Author

DIGEST:

This bill 1) requires the California Department of Housing and Community Development (HCD), upon request by a small rural jurisdiction, to analyze existing housing element materials from the jurisdiction to determine whether or not they qualify for the Prohousing Designation Program (PDP); 2) clarifies that HCD shall only review those materials if the jurisdiction has a compliant housing element; 3) prohibits HCD from requiring “small rural jurisdictions” renew their prohousing designation for at least 4 years; and, 4) preserves HCD’s authority to revoke a jurisdiction’s designation.

ANALYSIS:

Existing state law:

1. Provides for the acknowledgement and support of jurisdictions that have played an active role in accelerating housing production, under the PDP.
2. Authorizes HCD to award bonus application points to jurisdictions — who have been designated as prohousing — for state funding, giving them a competitive advantage.
3. Enables jurisdictions that receive a prohousing designation to also be eligible to apply for the Prohousing Incentive Program (PIP), which awards additional funds to support accelerated affordable housing development and preservation.

This bill:

1. Defines “small rural jurisdictions” as either cities with fewer than 25,000 people, or counties with fewer than 200,000 people.
2. Requires HCD to review, upon request from small rural jurisdictions with compliant housing elements, previously submitted housing element materials and determine whether or not they qualify outright for the prohousing designation without submitting additional information.

Background

Housing elements. Since 1969, California has required that all cities and counties adequately plan to meet the housing needs of everyone in the community, at all income levels. California’s local governments meet this requirement by adopting housing plans as part of their “general plan” (also required by the state). A general plan serves as a local government’s blueprint for how the city and/or county will grow and develop and includes eight elements: land use, transportation, conservation, noise, open space, safety, environmental justice, and housing. California’s Housing Element Law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests largely on the effective implementation of local general plans and, in particular, local housing elements.

PDP. The PDP was established by the 2019-20 California Budget Act. This program seeks to acknowledge and support jurisdictions that go above-and-beyond state housing law to help accelerate housing production. A jurisdiction with a Prohousing Designation may receive priority processing or funding points when applying for several funding programs, including Affordable Housing and Sustainable Communities, Infill Infrastructure Grant, Transformative Climate Communities, Solutions for Congested Corridors, Local Partnership Program, Transit and Intercity Rail Capital Program, and Sustainable Transportation Planning Grant Program.

PIP. The PIP is intended to increase participation in HCD’s PDP by pairing the designation with an impactful award grant that aids cities and counties in creating and conserving affordable housing. HCD uses a points-based system to evaluate PDP applications across these four categories: implementing prohousing zoning and land use policies; accelerating new housing production timelines; reducing costs associated with housing production; and providing financial subsidies and public resources to aid housing production.

Comments

Author’s statement. “In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state’s housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the PDP, which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents. AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead.”

Leveling the playing field for smaller jurisdictions. This bill would allow small rural jurisdictions to request HCD review the housing element materials they are already required to submit as part of their Annual Progress Report to determine if they qualify for the PDP. Proponents of the bill have described the undue administrative burden placed on smaller, more rural jurisdictions who may otherwise qualify as “prohousing,” but may not have the administrative bandwidth to submit additional materials for consideration. This bill aims to shift some of that administrative burden onto HCD, and in turn, empower these jurisdictions to have greater access to state housing funds.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 08/25/25)

California State Association of Counties
CDP Rural Caucus
League of California Cities
Rural County Representatives of California

OPPOSITION: (Verified 08/25/25)

None received.

ARGUMENTS IN SUPPORT: Rural County Representatives of California wrote the following in support of this bill, “The PDP designates local governments going above and beyond the requirements of state housing law to promote housing development in their communities as “prohousing”, rewarding them with priority access to critical housing and infrastructure programs However, the application for the PDP is complex and requires extensive documentation, making it difficult for rural jurisdictions with limited staff to apply even when they have adopted strong prohousing policies. AB 36 eases the administrative burden on smaller cities and counties by having HCD analyze the information local governments already provide in their housing elements to determine whether they qualify as prohousing. This minimizes unnecessary duplication of work by local governments with limited resources without lowering the standards to be designated as prohousing. To combat California’s housing crisis, we must equitably recognize and incentivize the work local governments of all sizes are doing to promote housing development. This bill achieves our mutual goal of focusing HCD’s resources to assist local governments’ efforts to meet the state’s housing needs.”

ASSEMBLY FLOOR: 69-0, 5/8/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Bonta, Bryan, Calderon, Caloza, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Fong, Gabriel, Garcia, Gipson, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Arambula, Boerner, Carrillo, Flora, Gallagher, Jeff Gonzalez, Irwin, Celeste Rodriguez, Sanchez, Wallis

Prepared by: Ryan Hardmeyer / HOUSING / (916) 651-4124

8/27/25 16:17:58

**** END ****

SENATE COMMITTEE ON HOUSING

Senator Aisha Wahab, Chair

2025 - 2026 Regular

Bill No: AB 36 Hearing Date: 7/15/2025

SUBJECT: Housing elements: prohousing designation

DIGEST: This bill: 1) requires the California Department of Housing and Community Development (HCD) to analyze existing housing element materials from “non-entitlement jurisdictions” to determine whether or not they qualify for the Prohousing Designation Program (PDP); 2) prohibits HCD from requiring “non-entitlement jurisdictions” to renew their prohousing designation for at least 5 years; and, 3) preserves HCD’s authority to revoke a jurisdiction’s designation.

ANALYSIS:

Existing law:

1. Provides for the acknowledgement and support of jurisdictions that have played an active role in accelerating housing production, under the Prohousing Designation Program (PDP).
2. Authorizes HCD to award bonus application points to jurisdictions — who have been designated as prohousing — for state funding, giving them a competitive advantage.
3. Enables jurisdictions that receive a prohousing designation to also be eligible to apply for the Prohousing Incentive Program (PIP), which awards additional funds to support accelerated affordable housing development and preservation.

This bill:

1. Defines “non-entitlement jurisdictions” as either cities with fewer than 50,000 people, or counties with fewer than 200,000 people.
2. Requires HCD to review previously submitted housing element materials from “non-entitlement jurisdictions” and determine whether or not they qualify outright for the prohousing designation without a new application.

Background

Housing elements. Since 1969, California has required that all cities and counties adequately plan to meet the housing needs of everyone in the community, at all income levels. California’s local governments meet this requirement by adopting housing plans as part of their “general plan” (also required by the state). A general plan serves as a local government’s blueprint for how the city and/or county will grow and develop and includes eight elements: land use, transportation, conservation, noise, open space, safety, environmental justice, and housing. California’s Housing Element Law acknowledges that, in order for the private market to adequately address the housing needs and demand of Californians, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. As a result, housing policy in California rests largely on the effective implementation of local general plans and, in particular, local housing elements.

Prohousing Designation Program (PDP). The Prohousing Designation Program was established by the 2019-20 California Budget Act. This program seeks to acknowledge and support jurisdictions that go above-and-beyond state housing law to help accelerate housing production. A jurisdiction with a Prohousing Designation may receive priority processing or funding points when applying for several funding programs, including Affordable Housing and Sustainable Communities (AHSC), Infill Infrastructure Grant (IIG), Transformative Climate Communities (TCC), Solutions for Congested Corridors (SCCP), Local Partnership Program (LPP), Transit and Intercity Rail Capital Program (TIRCP), and Sustainable Transportation Planning Grant Program (STPG).

Prohousing Incentive Program (PIP). The Prohousing Incentive Program is intended to increase participation in HCD’s Prohousing Designation Program by pairing the designation with an impactful award grant that aids cities and counties in creating and conserving affordable housing. HCD uses a points-based system to evaluate PDP applications across these four categories: implementing prohousing zoning and land use policies; accelerating new housing production timelines; reducing costs associated with housing production; and providing financial subsidies and public resources to aid housing production.

Comments

1. Author’s Statement. “In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state’s housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the Prohousing Designation Program (PDP), which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents. AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead.”
2. Leveling the playing field for smaller jurisdictions. This bill would require HCD to review already submitted APR materials by “non-entitlement jurisdictions” (cities with less than 50,000 people, and counties with less than 200,000 people) to be considered for the prohousing designation. Proponents of the bill have described the administrative burden placed on these smaller jurisdictions when forced to go out of their way to apply for the PDP. For those jurisdictions who may otherwise qualify, but do not have the bandwidth, they may miss out on essential funds from the state to bolster their affordable housing efforts. This bill aims to shift the administrative burden to HCD and potentially remedy this.

Related/Prior Legislation

SB 262 (Wahab, 2025) — aims to expand the kinds of projects which can be counted toward the PDP, including certain rent stabilization, tenant protection, and homelessness policies. This bill is pending in the Assembly Committee on Housing and Community Development, and Committee on Local Government.

AB 1029 (Mullin, Chapter 353, Statutes of 2021) ­— this bill adds preservation of affordable housing units as a pro-housing, local policy that the Department of Housing and Community Development (HCD) can consider in developing a pro-housing designation.

AB 101 (Committee on Budget, Chapter 159, Statutes of 2019) — among other budget provisions, this established the Prohousing Designation Program, incentivizing jurisdictions to adopt prohousing policies to gain advantage in applying for state funds.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday, July 9^th, 2025.)

SUPPORT:

AARP

California State Association of Counties (CSAC)

CDP Rural Caucus

City of Firebaugh

John Jansons, City Manager, City of Kerman, CA

City of Madera

City of Mendota

City of Merced

City of Soledad

Eden Housing

Habitat for Humanity Greater Fresno Area

League of California Cities

Rural County Representatives of California (RCRC)

OPPOSITION:

None Received.

-- END --

Date of Hearing: April 30, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 36

Author:(Soria) – As Amended Ver:March 19, 2025

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

SUMMARY:

This bill requires the Department of Housing and Community Development (HCD) to evaluate materials from a nonentitlement jurisdiction’s housing element submission for evidence of prohousing local policies and prohibits HCD from requiring a nonentitlement jurisdiction to renew its prohousing designations for at least five years.

Specifically, this bill:

1. Defines, for purposes of the prohousing designation program, “nonentitlement jurisdiction” to mean either a city with a population of fewer than 50,000 persons, or a county with a population of fewer than 200,000 persons.
2. Requires HCD, beginning with the seventh housing element cycle and to the extent feasible, to evaluate materials from a nonentitlement jurisdiction’s housing element submission, as specified, for evidence of prohousing local policies in order to minimize the need for jurisdictions to submit supplemental documentation.
3. Requires HCD to conduct the evaluation in item 2, above, only for nonentitlement jurisdictions that have a compliant housing element.
4. Prohibits HCD from requiring nonentitlement jurisdictions to renew their prohousing designations for at least five years.
5. Clarifies that these provisions do not limit the authority of HCD to revoke a jurisdiction’s prohousing designation.

FISCAL EFFECT:

HCD anticipates minor and absorbable costs to adopt new permanent prohousing designation regulations for small jurisdictions and additional monitoring processes.

COMMENTS:

1. Purpose. The author seeks to help rural and smaller jurisdictions qualify for the prohousing designation. According to the author:

Unfortunately, applying to the [prohousing designation program (PDP)] is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents.

[This bill] levels the playing field by requiring HCD to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, this bill ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy.

1. Background. Prohousing Designation. Existing law requires HCD to designate cities and counties as prohousing if their local policies facilitate the planning, approval, or construction of housing. “Prohousing” jurisdictions receive a competitive advantage – in the form of additional application points or preferences – in applying for certain state funding programs, including the Affordable Housing and Sustainable Communities Program, Transformative Climate Communities Program, and infill infrastructure programs.

Prohousing local policies that may allow a city or a county to secure a prohousing designation from HCD include, among others, a reduction of development impact fees, creating new ministerial approval pathways for housing and mixed-use projects, or creating local housing trust funds. According to HCD, as of March 2025, it has awarded 52 jurisdictions with the prohousing designation.

Program regulations require a local governing body to adopt a formal resolution directing the jurisdiction to submit a prohousing designation application. This bill instead requires HCD, beginning in the seventh housing element cycle, to evaluate the materials in a nonentitlement jurisdiction’s housing element submission for evidence of prohousing local policies that the local governing body would otherwise have to identify in a formal application for prohousing status. The requirement applies only to nonentitlement jurisdictions – either cities with a population fewer than 50,000 or counties with a population fewer than 200,000.

The bill also prohibits HCD from requiring a nonentitlement jurisdiction who has been awarded the prohousing designation to renew the jurisdiction’s designation for at least five years.

The League of California Cities, the Rural County Representatives of California (RCRC), and the California State Association of Counties (CSAC) write in support:

[This bill] eases the administrative burden on smaller cities and counties by having HCD analyze the information local governments already provide in their housing elements to determine whether they qualify as prohousing. This minimizes unnecessary duplication of work by local governments with limited resources without lowering the standards to be designated as prohousing. To combat California’s housing crisis, we must equitably recognize and incentivize the work local governments of all sizes are doing to promote housing development.

1. Related Legislation. SB 262 (Wahab), of this legislative session, includes in the definition of “prohousing local policies” certain rent stabilization, tenant protection, and homelessness policies. SB 262 is pending on the Senate Floor.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 23, 2025

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Juan Carrillo, Chair

ABPCA Bill Id:AB 36 (

Author:Soria) – As Amended Ver:March 19, 2025

SUBJECT: Housing elements: prohousing designation

SUMMARY: Requires the Department of Housing and Community Development (HCD) to evaluate materials from a nonentitlement jurisdiction’s, as defined, housing element submission for evidence of prohousing local policies and prohibits HCD from requiring nonentitlement jurisdictions to renew their prohousing designations for at least five years. Specifically, this bill:

1. Requires HCD to designate jurisdictions as prohousing pursuant to the permanent regulations, instead of emergency regulations, and report the designations to the Office of Land Use and Climate Innovation, instead of the Office of Planning and Research.
2. Defines “nonentitlement jurisdiction” to mean either a city with a population of fewer than 50,000 persons or a county with a population fewer than 200,000 persons.
3. Requires, beginning with the seventh housing element cycle, HCD to evaluate materials from a nonentitlement jurisdiction’s housing element submission, as specified, for evidence of prohousing local policies in order to minimize the need for jurisdiction to submit supplementary documentation.
4. Requires HCD to only conduct the evaluation in 3) above for nonentitlement jurisdictions that have a compliant housing element.
5. Prohibits HCD from requiring nonentitlement jurisdictions to renew their prohousing designations for at least five years. Provides that HCD’s authority to revoke a jurisdiction’s prohousing designation is not limited by this provision.

EXISTING LAW:

1. Requires each city and county to adopt a housing element, which must contain specified information, programs, and objectives, including:
   1. An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs, including a quantification of the locality’s existing and projected housing needs for all income levels; an inventory of land suitable and available for residential development with an analysis of the relationship of the sites to the duty to affirmatively further fair housing (AFFH); an analysis of potential and actual governmental and nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels; and a demonstration of local efforts to remove constraints that hinder the locality from meeting its share of the regional housing need, among other items;
   2. A statement of the community’s goals, quantified objectives, and policies relative to AFFH and to the maintenance, preservation, improvement, and development of housing; and
   3. A program that sets forth a schedule of actions during the planning period, and timelines for implementation, that the local government is undertaking to implement the policies and achieve the goals and objectives of the housing element, including actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the local government’s share of the regional housing need for each income level that could not be accommodated on sites identified in the sites inventory without rezoning, among other things. [Government Code (GOV) § 65583(a)-(c)]
2. For award cycles after July 1, 2021, awards additional points or preference in the scoring of certain housing and infrastructure funding program applications to jurisdictions that have adopted a substantially compliant housing element and that have been designated prohousing based upon their adoption of prohousing local policies. (GOV § 65889.9)
3. Defines “prohousing local policies” to mean policies that facilitate the planning, approval, or construction of housing. Specifies that these policies may include, but are not limited to, the following:
   1. Local financial incentives for housing, including, but not limited to, establishing a local housing trust fund;
   2. Reduced parking requirements for sites that are zoned for residential development;
   3. Adoption of zoning allowing for use by right for residential and mixed-use development;
   4. Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing regional housing need allocation for the current housing element cycle;
   5. Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond existing law requirements, as determined by HCD;
   6. Reduction of permit processing time;
   7. Creation of objective development standards;
   8. Reduction of development impact fees;
   9. Establishment of a Workforce Housing Opportunity Zone or a housing sustainability district;
   10. Preservation of affordable housing units through the extension of existing project-based rental assistance contracts to avoid the displacement of affected tenants and a reduction in available affordable housing units; and
   11. Facilitation of the conversion or redevelopment of commercial properties into housing, including the adoption of adaptive reuse ordinances or other mechanisms that reduce barriers for these conversions. (GOV § 65589.9)

FISCAL EFFECT: This bill is keyed fiscal.

COMMENTS:

1. Bill Summary. This bill requires HCD, beginning in the seventh housing element cycle, to evaluate the materials in a nonentitlement jurisdiction’s housing element submission for evidence of prohousing local policies that would otherwise have to be identified by the local government in a formal application for prohousing status. The requirement would only apply to nonentitlement jurisdictions – either cities with a population fewer than 50,000 or counties with a population fewer than 200,000. The bill also prohibits HCD from requiring nonentitlement jurisdictions who have been awarded the prohousing designation to renew their designation for at least five years.
   
   This bill is author sponsored.
   
2. Author’s Statement. According to the author, “In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state’s housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the Prohousing Designation Program (PDP), which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents.

“AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead.”

1. Adoption and Implementation of Housing Elements. One important tool in addressing the state’s housing crisis is to ensure that all of the state’s 539 cities and counties appropriately plan for new housing. Such planning is required through the housing element of each community’s General Plan, which outlines a long-term plan for meeting the community’s existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in the most highly populated parts of the state, and five years in areas with smaller populations. Cities must adopt a legally valid housing element by their statutory deadline for adoption. Failure to do so can result in certain escalating penalties, including exposure to the “builder’s remedy” as well as public or private lawsuits, financial penalties, potential loss of permitting authority, or court receivership.
2. Prohousing Designation. In 2019, the Legislature enacted AB 101 (Committee on Budget), Chapter 26, which required HCD to designate cities and counties as pro-housing if their local policies facilitate the planning, approval, or construction of housing. “Prohousing” jurisdictions receive a competitive advantage – in the form of additional application points or preferences – in applying for certain state funding programs, including the Affordable Housing and Sustainable Communities Program, Transformative Climate Communities Program, and infill infrastructure programs.

Although AB 101 provided examples of prohousing local polices, HCD had discretion over the final designation criteria, which they adopted via emergency regulations in July 2021 and subsequently converted to permanent regulations in April 2022 (California Code of Regulations, Title 25, Sections 6600-6608). Some examples of prohousing local policies that local jurisdictions can identify as evidence in their applications to HCD to be awarded the prohousing designation include reduction of development impact fees, creating new ministerial approval pathways for housing and mixed-use projects, or creating local housing trust funds. According to HCD, as of March 2025, 52 jurisdictions have been awarded the prohousing designation.

1. Related Legislation. SB 262 (Wahab) would include in the definition of “prohousing local policies” certain rent stabilization, tenant protection, and homelessness policies. This bill is pending a hearing in the Senate Appropriations Committee.
2. Previous Legislation. AB 101 (Committee on Budget), Chapter 26, Statutes of 2019, required HCD to designate cities and counties as prohousing and award preference or points in certain funding applications if their local policies facilitate the planning, approval, or construction of housing.
3. Arguments in Support. The League of California Cities, the Rural County Representatives of California, and the California State Association of Counties write, “AB 36 directs the Department of Housing and Community Development (HCD) to use the information cities with populations under 50,000 persons and counties under 200,000 already provide in their housing elements to determine their eligibility for the PDP. Additionally, the bill extends the time until prohousing designations expire for an additional two years.
   
   “The PDP designates local governments going above and beyond the requirements of state housing law to promote housing development in their communities as ‘prohousing’, rewarding them with priority access to critical housing and infrastructure programs. However, the application for the PDP is complex and requires extensive documentation, making it difficult for rural jurisdictions with limited staff to apply even when they have adopted strong prohousing policies. AB 36 eases the administrative burden on smaller cities and counties by having HCD analyze the information local governments already provide in their housing elements to determine whether they qualify as prohousing. This minimizes unnecessary duplication of work by local governments with limited resources without lowering the standards to be designated as prohousing. To combat California’s housing crisis, we must equitably recognize and incentivize the work local governments of all sizes are doing to promote housing development. This bill achieves our mutual goal of focusing HCD’s resources to assist local governments efforts to meet the state’s housing needs.”
   
4. Arguments in Opposition. None on file.
5. Double-Referral. This bill is double-referred to the Assembly Housing and Community Development Committee, where it passed on a 12-0 vote on April 9, 2025.

REGISTERED SUPPORT / OPPOSITION:

Support

AARP

California State Association of Counties (CSAC)

City of Firebaugh

City of Madera

City of Mendota

City of Merced

Habitat for Humanity Greater Fresno Area

John Jansons, City Manager, City of Kerman, CA

League of California Cities

Rural County Representatives of California (RCRC)

Opposition

None on file

Analysis Prepared by: Linda Rios / L. GOV. / (916) 319-3958

Date of Hearing: April 9, 2025

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

Matt Haney, Chair

ABPCA Bill Id:AB 36 (

Author:Soria) – As Amended Ver:March 19, 2025

SUBJECT: Housing elements: prohousing designation

SUMMARY: Requires the Department of Housing and Community Development (HCD) to evaluate materials from a nonentitlement jurisdiction’s housing element submission for evidence of prohousing local policies and prohibits HCD from requiring nonentitlement jurisdictions to renew their prohousing designations for at least five years. Specifically, this bill:

1. Requires HCD, beginning with the seventh housing element cycle and to the extent feasible, to evaluate materials from a nonentitlement jurisdiction’s housing element submission, as specified, for evidence of prohousing local policies in order to minimize the need for jurisdictions to submit supplemental documentation.
2. Requires HCD to conduct the evaluation in 1) above only for nonentitlement jurisdictions that have a compliant housing element.
3. Prohibits HCD from requiring nonentitlement jurisdictions to renew their prohousing designations for at least five years.
4. Clarifies that this bill does not limit the authority of HCD to revoke a jurisdiction’s prohousing designation.
5. Defines, for purposes of the prohousing designation program, “nonentitlement jurisdiction” to mean either of the following:
   1. A city with a population of fewer than 50,000 persons; or
   2. A county with a population of fewer than 200,000 persons.

EXISTING LAW:

1. Requires each city and county to adopt a housing element, which must contain specified information, programs, and objectives, including:
   1. An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs, including a quantification of the locality’s existing and projected housing needs for all income levels; an inventory of land suitable and available for residential development with an analysis of the relationship of the sites to the duty to affirmatively further fair housing (AFFH); an analysis of potential and actual governmental and nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels; and a demonstration of local efforts to remove constraints that hinder the locality from meeting its share of the regional housing need, among other items;
   2. A statement of the community’s goals, quantified objectives, and policies relative to AFFH and to the maintenance, preservation, improvement, and development of housing; and
   3. A program that sets forth a schedule of actions during the planning period, and timelines for implementation, that the local government is undertaking to implement the policies and achieve the goals and objectives of the housing element, including actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the local government’s share of the regional housing need for each income level that could not be accommodated on sites identified in the sites inventory without rezoning, among other things. (Government Code (GOV) Section 65583(a)-(c))
2. For award cycles after July 1, 2021, awards additional points or preference in the scoring of certain housing and infrastructure funding program applications to jurisdictions that have adopted a substantially compliant housing element and that have been designated prohousing based upon their adoption of prohousing local policies. (GOV 65889.9)
3. Defines “prohousing local policies” to mean policies that facilitate the planning, approval, or construction of housing. Specifies that these policies may include, but are not limited to, the following:
   1. Local financial incentives for housing, including, but not limited to, establishing a local housing trust fund;
   2. Reduced parking requirements for sites that are zoned for residential development;
   3. Adoption of zoning allowing for use by right for residential and mixed-use development;
   4. Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing regional housing need allocation for the current housing element cycle;
   5. Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond existing law requirements, as determined by HCD;
   6. Reduction of permit processing time;
   7. Creation of objective development standards;
   8. Reduction of development impact fees;
   9. Establishment of a Workforce Housing Opportunity Zone or a housing sustainability district;
   10. Preservation of affordable housing units through the extension of existing project-based rental assistance contracts to avoid the displacement of affected tenants and a reduction in available affordable housing units; and
   11. Facilitation of the conversion or redevelopment of commercial properties into housing, including the adoption of adaptive reuse ordinances or other mechanisms that reduce barriers for these conversions. (GOV 65589.9)

FISCAL EFFECT: Unknown.

COMMENTS:

Author’s Statement: According to the author, “In recent years, California has taken a number of steps to ensure cities and counties are doing their part to combat the state’s housing crisis, creating penalties to deter bad actors and incentives to reward those doing the right thing and to encourage others to follow their lead. One of the most significant incentives has been the creation of the Prohousing Designation Program (PDP), which recognizes local governments who are going above and beyond to promote housing development and gives them bonuses when applying for state housing funds. Unfortunately, applying to the PDP is extremely complex and burdensome, putting the program out of the reach of many small, rural cities and counties who are doing all the right things to provide housing for their residents.

AB 36 levels the playing field by requiring the Department of Housing and Community Development to use the information cities already provide in their housing elements to determine whether they qualify for the PDP. By minimizing the burden on small cities and counties, AB 36 ensures the PDP rewards those doing the most to house their residents and not only those able to navigate complicated bureaucracy, while incentivizing more small jurisdictions to follow their lead.”

Adoption and Implementation of Housing Elements: One important tool in addressing the state’s housing crisis is to ensure that all of the state’s 539 cities and counties appropriately plan for new housing. Such planning is required through the housing element of each community’s General Plan, which outlines a long-term plan for meeting the community’s existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in most highly populated parts of the state, and five years in areas with smaller populations. Cities must adopt a legally valid housing element by their statutory deadline for adoption. Failure to do so can result in certain escalating penalties, including exposure to the “builder’s remedy” as well as public or private lawsuits, financial penalties, potential loss of permitting authority, or court receivership.

It is critical that local jurisdictions adopt legally compliant housing elements on time in order to meet statewide housing goals and create the environment locally for the successful construction of desperately needed housing at all income levels. Unless communities plan for production and preservation of affordable housing, new housing will be slow to build. Adequate zoning, removal of regulatory barriers, protection of existing stock and targeting of resources are essential to obtaining a sufficient permanent supply of housing affordable to all economic segments of the community. Although not requiring the community to develop the housing, housing element law requires the community to plan for housing. Recognizing that local governments may lack adequate resources to house all those in need, the law nevertheless mandates that the community do all that it can and that it not engage in exclusionary zoning practices or perpetuate housing discrimination patterns or impediments to fair housing.

Prohousing Designation: In 2019, the Legislature enacted AB 101 (Committee on Budget), Chapter 26, that required HCD to designate cities and counties as pro-housing if their local policies facilitate the planning, approval, or construction of housing. “Prohousing” jurisdictions receive a competitive advantage – in the form of additional application points or preferences – in applying for certain state funding programs, including the Affordable Housing and Sustainable Communities Program, Transformative Climate Communities Program, and infill infrastructure programs.

Although AB 101 provided examples of prohousing local polices, HCD had discretion over the final designation criteria, which they adopted via emergency regulations in July 2021 and subsequently converted to permanent regulations in April 2022 (California Code of Regulations, Title 25, Sections 6600-6608). Some examples of prohousing local policies that local jurisdictions can identify as evidence in their applications to HCD to be awarded the prohousing designation include reduction of development impact fees, creating new ministerial approval pathways for housing and mixed-use projects, or creating local housing trust funds. According to HCD, as of March 2025, 52 jurisdictions have been awarded the prohousing designation.

Currently, program regulations require a local governing body to adopt a formal resolution directing the jurisdiction to submit a prohousing designation application. This bill would require HCD, beginning in the seventh housing element cycle, to evaluate the materials in a nonentitlement jurisdiction’s housing element submission for evidence of prohousing local policies that would otherwise have to be identified by the local government in a formal application for prohousing status. The requirement would only apply to nonentitlement jurisdictions – either cities with a population fewer than 50,000 or counties with a population fewer than 200,000.

The bill would also prohibit HCD from requiring nonentitlement jurisdictions who have been awarded the prohousing designation to renew their designation for at least five years. The program regulations currently specify that a designation expires three years from the first day of the January following the date of designation and allow a jurisdiction to apply for a renewal no earlier than six months before its designation expires.

The author contends these changes will help more rural and smaller jurisdictions qualify for the prohousing designation and reduce the amount of staff time and capacity taken up by submitting a formal application and renewal every three years. HCD would retain the ability to monitor and revoke a prohousing designation if a jurisdiction takes an action that is inconsistent with the program rules or fails to implement policies it previously had committed to implement or enact.

Arguments in Support: According to Habitat for Humanity of the Greater Fresno Area, “Based in the San Joaquin Valley, Habitat Greater Fresno Area serves Fresno and Madera counties providing low-income families, the opportunity to realize the dream of homeownership. Our service territory is comprised of small rural communities which are often competing with larger urban areas of the state for funding that a PDP designation could provide. Habitat Greater Fresno Area’s model of partnering with families who demonstrate a need, ability to pay a mortgage, and a willingness to partner in the construction of their home has worked well to serve rural communities of our service territory, however we have found that the limited staffing in these municipalities can often be a challenge when completing the process to secure state level designations and funding.”

Arguments in Opposition: None on file.

Related Legislation:

SB 262 (Wahab) of the current legislative session would include in the definition of “prohousing local policies” certain rent stabilization, tenant protection, and homelessness policies. This bill is pending a hearing in the Senate Appropriations Committee.

AB 101 (Committee on Budget), Chapter 26, Statutes of 2019: Required HCD to designate cities and counties as prohousing and award preference or points in certain funding applications if their local policies facilitate the planning, approval, or construction of housing.

Double-referred: This bill was also referred to the Assembly Committee on Local Government where it will be heard should it pass out of this committee.

REGISTERED SUPPORT / OPPOSITION:

Support

AARP

City of Firebaugh
City of Madera

City of Mendota
City of Merced
Habitat for Humanity Greater Fresno Area
John Jansons, City Manager, City of Kerman, CA

Opposition

None on file.

Analysis Prepared by: Nicole Restmeyer / H. & C.D. / (916) 319-2085