AB 906: Planning and zoning: housing elements: affirmatively furthering fair housing.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-06-23
Current Status:
In Progress
(2026-08-13: In committee: Held under submission.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
(1)The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, including specified sites, an analysis of the relationship of zoning and public facilities and services to these sites (first analysis), and an analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing (2nd analysis).
This bill would remove the requirement on cities and counties to include the 2nd analysis in their housing elements.
(2)Existing law requires a housing element to include a program that sets forth a schedule of actions during the planning period, each with a timeline for implementation such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through specified actions. Existing law requires this program to, among other things, identify actions that will be taken to make sites available, as provided, to accommodate that portion of the citys or countys share of the regional housing need for all income levels that could not be accommodated on sites identified in the inventory of sites without rezoning, and to comply with the certain zoning and rezoning requirements. If the inventory of sites does not identify adequate sites to accommodate the need for groups of all household income levels, as provided, existing law requires that the local government rezone those sites within specified time periods and requires the local government housing element program to identify sites that can be developed for housing within the planning period, as specified. Existing law also requires this program to affirmatively further fair housing and include an assessment that consists of specified components, including an analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. Under the above-described program, existing law requires the Department of Housing and Community Development to develop a standardized reporting format for certain programs and actions taken, and requires the standardized reporting format to enable the reporting of all of the assessment components and certain fields, including timelines for implementation.
This bill would additionally require the above-described program to identify actions that will be taken to make sites available to ensure that the distribution of sites across the jurisdiction affirmatively furthers fair housing. The bill would require those sites, after any required rezoning and among other things, to be distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing, as specified. The bill would additionally require the local government to rezone the sites within specified time periods, as described above, and identify sites that can be developed for housing within the planning period, as described above, if the inventory of sites does not affirmatively further fair housing, as specified. For those additionally identified sites, the bill would require the jurisdiction to demonstrate that those sites will affirmatively further fair housing, as provided. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
This bill would revise and recast the requirement that the program affirmatively further fair housing. The bill would require each city or county, at least one year prior to the adoption deadline for the next revision of the housing element, to complete and make publicly available an assessment that program to include an assessment of fair housing that includes, among other things, an analysis of available federal, state, and local data and knowledge to identify and examine certain patterns, trends, areas, disparities, and needs, as specified. The bill would also require each city or county to make the draft assessment publicly available and solicit public comments on the assessment. for a period of at least 90 days. The bill would require the city or county to include, among other things, in its first draft revision of the housing element, the assessment, including any revisions made in response to the public comments, and specified strategies and actions to implement the jurisdictions fair housing priorities and goals. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
This bill would instead require the department to develop a standardized format for describing those strategies and actions to be taken, and would require the standardized reporting format to address all of the assessment components and, in addition to the above-described certain fields, a field for which fair housing priority the program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
(3)Existing law authorizes the Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance, to allow a city or county to identify adequate sites by a variety of methods, including, among others, redesignation of property to a more intense land use category. Existing law also authorizes the department to allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department.
This bill would revise the departments authorization to allow a city or county to identify sites for accessory dwelling units in each income category based on the number of accessory dwelling units developed in the prior housing element planning period in that income category whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. The bill would also require the jurisdiction to provide proof of a recorded deed restriction requiring the continued affordability of the unit, as specified, for accessory dwelling units developed in the prior housing element period to count towards determining the number of sites for accessory dwelling units a jurisdiction can include in the lower income category.
(4)Existing law requires a citys or countys inventory of land suitable for residential development to be used to identify sites throughout the community, consistent with certain fair housing requirements, that can be developed for housing within the planning period, and that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels.
This bill would instead require that a citys or countys inventory of land suitable for residential development be used to identify sites that can be developed for housing within the planning period, that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels, and that are distributed throughout the community in a manner that compliance with the requirement that the distribution affirmatively furthers fair housing. housing, as specified. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
(5)Existing law requires a city or county to determine whether each site in its inventory of suitable land, as described above, can accommodate the development of some portion of its share of the regional housing need by income level during the planning period. Existing law also requires the inventory to, among other things, specify for each site the number of units that can realistically be accommodated on that site.
This bill would additionally require those cities and counties to ensure that the sites identified as described above are to be distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing allowing for a reduction in residential segregation, based on a specified determination procedure. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
This bill would require the department, by no later than April 1, 2027, to develop and publish an online tool to serve as the method for determining whether each citys or countys identification of sites adequate to accommodate its share of the regional housing need at all income levels meets the distribution requirement described above. The bill would authorize the department to grant an adjustment to the distribution requirement described above if underlying data for the jurisdiction renders the tool unreliable. The bill would require the department to include in its materials explaining the online tool a procedure for applying for an adjustment and the factors that the department will consider in determining whether or not to grant an adjustment.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, including specified sites, an analysis of the relationship of zoning and public facilities and services to these sites (first analysis), and an analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing (2nd analysis). If the inventory of sites does not identify adequate sites to accommodate the need for groups of all household income levels, as provided, existing law requires that the local government rezone sites within specified time periods.
This bill would additionally require the 2nd analysis to demonstrate that the jurisdiction has accommodated a meaningful portion of its share of the regional housing need for lower income households on sites located in higher income, racially exclusive areas to the extent that those areas exist within the jurisdiction. The bill would also require the local government to rezone the sites within specified time periods, as described above, if the inventory of sites does not affirmatively further fair housing. By imposing additional duties on local entities, this bill would impose a state-mandated local program. remove the requirement on cities and counties to include the 2nd analysis in their housing elements.
Existing(2)Existing law requires a housing element to include a program that sets forth a schedule of actions during the planning period, each with a timeline for implementation such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through specified actions. Existing law requires this program to to, among other things, identify actions that will be taken to make sites available, as provided, to accommodate that portion of the citys or countys share of the regional housing need for all income levels that could not be accommodated on sites identified in the inventory of sites without rezoning, and to comply with the certain zoning and rezoning requirements. If the inventory of sites does not identify adequate sites to accommodate the need for groups of all household income levels, as provided, existing law requires that the local government rezone those sites within specified time periods and requires the local government housing element program to identify sites that can be developed for housing within the planning period, as specified. Existing law also requires this program to affirmatively further fair housing and consist include an assessment that consists of specified components, including an analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. Under the above-described program, existing law requires the Department of Housing and Community Development to develop a standardized reporting format for certain programs and actions taken, and requires the standardized reporting format to enable the reporting of all of the assessment components and certain fields, including timelines for implementation.
This bill would additionally require the above-described program to identify actions that will be taken to make sites available to ensure that the distribution of sites across the jurisdiction affirmatively furthers fair housing. The bill would additionally require the local government to rezone the sites within specified time periods, as described above, and identify sites that can be developed for housing within the planning period, as described above, if the inventory of sites does not affirmatively further fair housing, as specified. For those additionally identified sites, the bill would require the jurisdiction to demonstrate that those sites will affirmatively further fair housing, as provided. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
This bill would require the above-described analysis to be completed at least one year before the adoption deadline for the revision of the housing element, and would require the analysis to include meaningful consultation with members of protected classes and organizations representing their interests. revise and recast the requirement that the program affirmatively further fair housing. The bill would require each city or county, at least one year prior to the adoption deadline for the next revision of the housing element, to complete and make publicly available an assessment that includes, among other things, an analysis of available federal, state, and local data and knowledge to identify and examine certain patterns, trends, areas, disparities, and needs, as specified. The bill would also require each city or county to solicit public comments on the assessment. The bill would require the city or county to include, among other things, in its first draft revision of the housing element, the assessment, including any revisions made in response to the public comments, and specified strategies and actions to implement the jurisdictions fair housing priorities and goals. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
This bill would instead require the department to develop a standardized format for describing those strategies and actions to be taken, and would require the standardized reporting format to address all of the assessment components and, in addition to the above-described certain fields, a field for which fair housing priority the program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
(3)Existing law authorizes the Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance, to allow a city or county to identify adequate sites by a variety of methods, including, among others, redesignation of property to a more intense land use category. Existing law also authorizes the department to allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department.
This bill would revise the departments authorization to allow a city or county to identify sites for accessory dwelling units in each income category based on the number of accessory dwelling units developed in the prior housing element planning period in that income category whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. The bill would also require the jurisdiction to provide proof of a recorded deed restriction requiring the continued affordability of the unit, as specified, for accessory dwelling units developed in the prior housing element period to count towards determining the number of sites for accessory dwelling units a jurisdiction can include in the lower income category.
(4)Existing law requires a citys or countys inventory of land suitable for residential development to be used to identify sites throughout the community, consistent with certain fair housing requirements, that can be developed for housing within the planning period, and that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels.
This bill would instead require that a citys or countys inventory of land suitable for residential development be used to identify sites that can be developed for housing within the planning period, that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels, and that are distributed throughout the community in a manner that affirmatively furthers fair housing. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
(5)Existing law requires a city or county to determine whether each site in its inventory of suitable land, as described above, can accommodate the development of some portion of its share of the regional housing need by income level during the planning period. Existing law also requires the inventory to, among other things, specify for each site the number of units that can realistically be accommodated on that site.
This bill would additionally require those cities and counties to ensure that the sites identified as described above are distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing residential segregation, based on a specified determination procedure. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
This bill would require the department, by no later than April 1, 2027, to develop and publish an online tool to serve as the method for determining whether each citys or countys identification of sites adequate to accommodate its share of the regional housing need at all income levels meets the distribution requirement described above. The bill would authorize the department to grant an adjustment to the distribution requirement described above if underlying data for the jurisdiction renders the tool unreliable.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, including specified sites, an analysis of the relationship of zoning and public facilities and services to these sites (first analysis), and an analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing (2nd analysis). If the inventory of sites does not identify adequate sites to accommodate the need for groups of all household income levels, as provided, existing law requires that the local government rezone sites within specified time periods.
This bill would additionally require the 2nd analysis to demonstrate that the jurisdiction has accommodated a meaningful portion of its share of the regional housing need for lower income households on sites located in higher income, racially exclusive areas to the extent that those areas exist within the jurisdiction. The bill would also require the local government to rezone the sites within specified time periods, as described above, if the inventory of sites does not affirmatively further fair housing. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
Existing law requires a housing element to include a program that sets forth a schedule of actions during the planning period, each with a timeline for implementation such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through specified actions. Existing law requires this program to affirmatively further fair housing and consist of specified components, including an analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk.
This bill would require the above-described analysis to be completed at least one year before the adoption deadline for the revision of the housing element, and would require the analysis to include meaningful consultation with members of protected classes and organizations representing their interests. By imposing additional duties on local entities, this bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The housing element shall contain all of the following:
(a)An assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs. The assessment and inventory shall include all of the following:
(1)An analysis of population and employment trends and documentation of projections and a quantification of the localitys existing and projected housing needs for all income levels. These existing and projected needs shall include the localitys share of the regional housing need in accordance with Section 65584.
(2)An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
(3)An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the localitys housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites.
(4)(A)The identification of one or more zoning designations that allow residential uses, including mixed uses, where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit and that are suitable for residential uses. The identified zoning designations shall include sufficient sites meeting the requirements of subparagraph (H) with sufficient capacity, as described in subparagraph (I), to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zoning designation or designations that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zoning designation or designations with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zoning designations where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards that apply to emergency shelters are objective and encourage and facilitate the development of, or conversion to, emergency shelters.
(B)Emergency shelters shall only be subject to the following written, objective standards:
(i)The maximum number of beds or persons permitted to be served nightly by the facility.
(ii)Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.
(iii)The size and location of exterior and interior onsite waiting and client intake areas.
(iv)The provision of onsite management.
(v)The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
(vi)The length of stay.
(vii)Lighting.
(viii)Security during hours that the emergency shelter is in operation.
(C)For purposes of this paragraph, emergency shelter shall include other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.
(D)The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(E)If a local government has adopted written, objective standards pursuant to subparagraph (B), the local government shall include an analysis of the standards in the analysis of constraints pursuant to paragraph (5).
(F)A local government that can demonstrate, to the satisfaction of the department, the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdictions need and the needs of the other jurisdictions that are a part of the agreement for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zoning designation where new emergency shelters are allowed with a conditional use permit.
(G)A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zoning designations for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph.
(H)The zoning designation or designations where emergency shelters are allowed, as described in subparagraph (A), shall include sites that meet at least one of the following standards:
(i)Vacant sites zoned for residential use.
(ii)Vacant sites zoned for nonresidential use that allow residential development, if the local government can demonstrate how the sites with this zoning designation that are being used to satisfy the requirements of paragraph (1) are located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite.
(iii)Nonvacant sites zoned for residential use or for nonresidential use that allow residential development that are suitable for use as a shelter in the current planning period, or which can be redeveloped for use as a shelter in the current planning period. A nonvacant site with an existing use shall be presumed to impede emergency shelter development absent an analysis based on substantial evidence that the use is likely to be discontinued during the planning period. The analysis shall consider current market demand for the current uses, market conditions, and incentives or standards to encourage shelter development.
(I)The zoning designation or designations shall have sufficient sites meeting the requirements of subparagraph (H) to accommodate the need for shelters identified pursuant to paragraph (7). The number of people experiencing homelessness that can be accommodated on any site shall be demonstrated by dividing the square footage of the site by a minimum of 200 square feet per person, unless the locality can demonstrate that one or more shelters were developed on sites that have fewer square feet per person during the prior planning period or the locality provides similar evidence to the department demonstrating that the site can accommodate more people experiencing homelessness. Any standard applied pursuant to this subparagraph is intended only for calculating site capacity pursuant to this section, and shall not be construed as establishing a development standard applicable to the siting, development, or approval of a shelter.
(J)Notwithstanding subparagraph (H), a local government may accommodate the need for emergency shelters identified pursuant to paragraph (7) on sites owned by the local government if it demonstrates with substantial evidence that the sites will be made available for emergency shelter during the planning period, they are suitable for residential use, and the sites are located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite.
(5)An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees, and other exactions required of developers, local processing and permit procedures, historic preservation practices and policies and an assessment of how existing and proposed historic designations affect the localitys ability to meet its share of the housing need pursuant to paragraph (1), and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).
(6)An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a localitys share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the localitys planning for the development of housing for all income levels and the construction of that housing.
(7)(A)An analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; extremely low income households; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on the capacity necessary to accommodate the most recent homeless point-in-time count conducted before the start of the planning period, the need for emergency shelter based on number of beds available on a year-round and seasonal basis, the number of shelter beds that go unused on an average monthly basis within a one-year period, and the percentage of those in emergency shelters that move to permanent housing solutions. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services.
(B)For the seventh and subsequent revisions of the housing element, the analysis required in subparagraph (A) shall also include an analysis of the housing needs of acutely and extremely low income households.
(8)An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system.
(9)An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. Assisted housing developments, for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. Assisted housing developments shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916.
(A)The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the localitys low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis.
(B)The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate.
(C)The analysis shall identify public and private nonprofit corporations known to the local government that have legal and managerial capacity to acquire and manage these housing developments.
(D)The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs that can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program that have not been legally obligated for other purposes and that could be available for use in preserving assisted housing developments.
(b)(1)A statement of the communitys goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing.
(2)It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the communitys ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category that can be constructed, rehabilitated, and conserved over a five-year time period.
(c)A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:
(1)Identify 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 citys or countys share of the regional housing need for all income levels that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, or to ensure that the distribution of sites across the jurisdiction affirmatively furthers fair housing as determined pursuant to subdivision (h) of Section 65583.2, and to comply with the requirements of Section 65584.09. Sites shall be identified to ensure that the sites designated made available to accommodate the citys or countys share of the regional housing need at all income levels after any required rezoning affirmatively furthers fair housing, as determined pursuant to paragraph (2) of shall comply with subdivision (h) of Section 65583.2, and to shall facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing.
(A)Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not include adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, or where the sites identified pursuant to subdivision (c) of Section 65583.2 do not affirmatively further fair housing as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2, a program for rezoning of those sites, subject to the following deadlines:
(i)For the adoption of the sixth revision of the housing element, jurisdictions with an eight-year housing element planning period pursuant to Section 65588, including adoption of minimum density and development standards or, for a jurisdiction in the coastal zone, any necessary local coastal program amendments related to land use designations, changes in intensity of land use, zoning ordinances, or zoning district maps, consistent with Sections 30512, 30512.2, 30513, and 30514 of the Public Resources Code, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f). Notwithstanding the foregoing, for a local government that fails to adopt a housing element that the department has found to be in substantial compliance with this article within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards or, for a jurisdiction in the coastal zone, any necessary local coastal program amendments related to land use designations, changes in intensity of land use, zoning ordinances, or zoning district maps, consistent with Sections 30512, 30512.2, 30513, and 30514 of the Public Resources Code, shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
(ii)For adoption of the seventh and all subsequent revisions of the housing element, rezonings shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
(iii)Notwithstanding clause (ii), for the adoption of the seventh and all subsequent revisions of the housing element, rezonings shall be completed no later than three years and 90 days after the statutory deadline in Section 65588 for adoption of the housing element, unless the deadline is extended pursuant to subdivision (f). This clause shall apply only if the local government complies with all of the following:
(I)The local government submits a draft element or draft amendment to the department for review pursuant to paragraph (1) of subdivision (b) of Section 65585 at least 90 days before the statutory deadline established in Section 65588 for adoption of the housing element.
(II)The local government receives from the department findings that the draft element or draft amendment substantially complies with this article pursuant to paragraph (3) of subdivision (b) of Section 65585 on or before the statutory deadline set forth in Section 65588 for adoption of the housing element.
(III)The local government adopts the draft element or draft amendment that the department found to substantially comply with this article no later than 120 days after the statutory deadline set forth in Section 65588.
(B)Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not include adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, or where the sites identified pursuant to subdivision (c) of Section 65583.2 do not affirmatively further fair housing as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (i) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2. The jurisdiction shall demonstrate that sites identified to accommodate the citys or countys share of the regional housing need at all income levels after any rezoning required by this subdivision will affirmatively further fair housing as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2.
(C)Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not include adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households.
(2)(A)Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.
(B)For the seventh and subsequent revisions of the housing element, the program shall also assist in the development of adequate housing to meet the needs of acutely low income households.
(3)Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650).
(4)Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.
(5)Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.
(6)Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance.
(7)Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, accessory dwelling units has the same meaning as accessory dwelling unit as defined in subdivision (a) of Section 66313.
(8)Include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.
(9)Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.
(10)Affirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall meet the requirements of Section 65583.01.
(d)(1)A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period.
(2)The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit toward its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element.
(3)Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following:
(A)How the joint facility will meet the jurisdictions emergency shelter need.
(B)The jurisdictions contribution to the facility for both the development and ongoing operation and management of the facility.
(C)The amount and source of the funding that the jurisdiction contributes to the facility.
(4)The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter.
(e)Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following:
(1)A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section.
(2)Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02.
(f)The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the units for lower income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exists:
(1)The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency.
(2)The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints.
(3)The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.
The resolution and the findings shall be transmitted to the department together with a detailed budget and schedule for preparation and adoption of the required rezonings, including plans for citizen participation and expected interim action. The schedule shall provide for adoption of the required rezoning within one year of the adoption of the resolution.
(g)(1)If a local government fails to complete the rezoning by the deadline provided in subparagraph (A) of paragraph (1) of subdivision (c), as it may be extended pursuant to subdivision (f), except as provided in paragraph (2), a local government may not disapprove a housing development project, nor require a conditional use permit, planned unit development permit, or other locally imposed discretionary permit, or impose a condition that would render the project infeasible, if the housing development project, (A) is proposed to be located on a site required to be rezoned pursuant to the program action required by that subparagraph and, (B) complies with applicable, objective general plan and zoning standards and criteria, including design review standards, described in the program action required by that subparagraph. Any subdivision of sites shall be subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)). Design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)A local government may disapprove a housing development described in paragraph (1) if it makes written findings supported by substantial evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(3)The applicant or any interested person may bring an action to enforce this subdivision. If a court finds that the local agency disapproved a project or conditioned its approval in violation of this subdivision, the court shall issue an order or judgment compelling compliance within 60 days. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders to ensure that the purposes and policies of this subdivision are fulfilled. In any such action, the city, county, or city and county shall bear the burden of proof.
(4)For purposes of this subdivision, housing development project means a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49 percent of the housing units for very low, low-, and moderate-income households with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, respectively, for the period required by the applicable financing.
(h)An action to enforce the program actions of the housing element shall be brought pursuant to Section 1085 of the Code of Civil Procedure.
(i)Notwithstanding any other law, the otherwise applicable timeframe set forth in paragraph (2) of subdivision (b) and subdivision (d) of Section 21080.3.1 of the Public Resources Code, and paragraph (3) of subdivision (d) of Section 21082.3 of the Public Resources Code, for a Native American tribe to respond to a lead agency and request consultation in writing is extended by 30 days for any housing development project application determined or deemed to be complete on or after March 4, 2020, and prior to December 31, 2021.
(j)On or after January 1, 2024, at the discretion of the department, the analysis of government constraints pursuant to paragraph (5) of subdivision (a) may include an analysis of constraints upon the maintenance, improvement, or development of housing for persons with a characteristic identified in subdivision (b) of Section 51 of the Civil Code. The implementation of this subdivision is contingent upon an appropriation by the Legislature in the annual Budget Act or another statute for this purpose.
SEC. 2.Section 65583.01 is added to the Government Code, to read:65583.01.The program to affirmatively further fair housing required pursuant to paragraph (10) of subdivision (c) of Section 65583 shall meet the requirements of Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2 and all of the following requirements:
(a)At least one year prior to the adoption deadline for the next revision of the housing element, the city or county shall complete and make publicly available an assessment Include an assessment of fair housing that includes both all of the following:
(1)(A)An analysis of available federal, state, and local data and knowledge to identify and examine all of the following:
(i)Integration and segregation patterns and trends.
(ii)Racially or ethnically concentrated areas of poverty and affluence.
(iii)Disparities in access to opportunity for members of protected classes, including, but not limited to, access to educational, employment, and transportation opportunities, and access to a healthy environment.
(iv)Disparities in availability and quality of amenities and services for members of protected classes, including infrastructure, parks, maintenance and sanitation services, health services, grocery stores, and financial institutions.
(v)Disproportionate housing needs of members of protected classes, including, but not limited to, displacement risk, evictions, cost burden, overcrowding, substandard housing, homelessness, risk related to climate disasters, and expiring covenants resulting in loss of affordable housing.
(vi)Investment and disinvestment patterns and trends.
(B)(i)The analysis shall be prepared after meaningful consultation with members of protected classes and organizations representing their interests and shall identify and examine those patterns, trends, areas, disparities, and needs both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2) and Section 65008.
(ii)A jurisdiction shall conduct the outreach and engagement required under meaningful consultation through a variety of methods, in languages commonly spoken by community members, and in an accessible format for people with disabilities as needed. The jurisdiction shall include in any drafts of the housing element and the final adopted housing element a description of its outreach, a summary of comments received, and an explanation of how the comments were considered and incorporated or why they were rejected.
(2)Based on the analysis completed pursuant to paragraph (1), a summary of fair housing issues in the jurisdiction and an assessment of the contributing factors, including the local and regional historical origins and current policies and practices, that created and maintain the fair housing issues identified.
(3)An assessment of the jurisdictions fair housing enforcement and fair housing outreach capacity.
(b)After completing the assessment a draft assessment of fair housing that includes all components required pursuant to subdivision (a), and before making the first draft revision of the housing element, element available for public comment pursuant to subdivision (b) of Section 65585, the city or county shall make the draft assessment of fair housing publicly available and solicit public comments on the assessment and for a period of at least 90 days. During this period the city and county additionally shall seek input on, including through meaningful consultation with members of protected classes and organizations that represent their interests, the information required pursuant to paragraphs (1) and (2) of subdivision (c).
(c)The city or county shall include in the first draft revision of the housing element available for public comment pursuant to subdivision (b) of Section 65585 both of the following:
(1)The assessment completed of fair housing required pursuant to subdivision (a), including any revisions made in response to comments received pursuant to subdivision (b).
(2)Based on the assessment and any input received pursuant to the meaningful consultation required pursuant to subdivision (b), all of the following:
(A)An identification of the jurisdictions fair housing priorities and goals, giving highest priority to addressing those issues and factors identified in paragraph (2) of subdivision (a) that have been identified as priorities by members of protected classes and organizations representing their interests, limit access for members of protected classes to higher income areas, limit access to opportunity, contribute to lack of investment in historically disadvantaged neighborhoods, or cause displacement of protected classes.
(B)An identification of the neighborhoods most in need of investment and the types of public and private investment required to meet the needs of members of protected classes without causing displacement of protected classes.
(C)Strategies and actions to implement the priorities and goals identified in subparagraph (A), including those that would make necessary investments in the areas identified in subparagraph (B) and those that would expand housing choice for members of protected classes. Jurisdictions shall consider strategies that include, but are not limited to, all of the following:
(i)Strategies to enable members of protected classes to live in the neighborhood of their choice.
(ii)Strategies to encourage development of new affordable housing in both higher income neighborhoods and historically disinvested neighborhoods.
(iii)Strategies to encourage community revitalization in historically disinvested neighborhoods, including preservation of existing affordable housing, infrastructure, and other investments that enhance opportunity, remediation of environmental justice issues, and policies that protect existing residents and community-serving small businesses from displacement.
(D)An assessment of the jurisdictions fair housing enforcement and fair housing outreach capacity.(iv)The strategies and actions required by this subparagraph shall include both direct public actions and public actions that can attract private investment in disinvested neighborhoods.
(d)(1)The department shall develop a standardized format for describing strategies and actions to be taken pursuant to subparagraph (C) of paragraph (2) of subdivision (c). The standardized format shall address all of the assessment components listed in subparagraph (A) of paragraph (1) of subdivision (a), and, at a minimum, include all of the following fields:
(A)Timelines for implementation.
(B)Responsible party or parties.
(C)Resources committed from the local budget to affirmatively further fair housing.
(D)Action areas.
(E)Which fair housing priority the program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
(2)A local government shall utilize the standardized format developed pursuant to this subdivision for the seventh and each subsequent revision of the housing element.
(e)For purposes of this section, the following definitions shall apply:
(1)Meaningful consultation means taking proactive steps to outreach to and engage with members of protected classes, especially those harmed by the impact of historical discrimination in the jurisdiction and surrounding region, and organizations representing their interests, to solicit their participation and input throughout the development of the assessment described in subdivision (a).
(2)Members of protected classes means persons as described in paragraph (5) of subdivision (c) of Section 65583.
SEC. 3.Section 65583.1 of the Government Code is amended to read:65583.1.(a)The Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance with this article, may allow a city or county to identify adequate sites, as required pursuant to Section 65583, by a variety of methods, including, but not limited to, redesignation of property to a more intense land use category and increasing the density allowed within one or more categories. The department may also allow a city or county to identify sites for accessory dwelling units in each income category based on the number of accessory dwelling units developed in the prior housing element planning period in that income category whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. For accessory dwelling units developed in the prior housing element period to count toward determining the number of sites for accessory dwelling units a jurisdiction can include in the lower income category, the jurisdiction shall provide proof of a recorded deed restriction requiring the continued affordability of the unit for at least 55 years for rental housing and 30 years for ownership housing for lower income households. Nothing in this section reduces the responsibility of a city or county to identify, by income category, the total number of sites for residential development as required by this article.
(b)Sites that contain permanent housing units located on a military base undergoing closure or conversion as a result of action pursuant to the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526), the Defense Base Closure and Realignment Act of 1990 (Public Law 101-510), or any subsequent act requiring the closure or conversion of a military base may be identified as an adequate site if the housing element demonstrates that the housing units will be available for occupancy by households within the planning period of the element. No sites containing housing units scheduled or planned for demolition or conversion to nonresidential uses shall qualify as an adequate site.
Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to paragraph (1) of subdivision (b) of Section 65400.
(c)(1)The Department of Housing and Community Development may allow a city or county to substitute the provision of units for up to 25 percent of the communitys obligation to identify adequate sites for any income category in its housing element pursuant to paragraph (1) of subdivision (c) of Section 65583 where the community includes in its housing element a program committing the local government to provide units in that income category within the city or county that will be made available through the provision of committed assistance during the planning period covered by the element to lower income households at affordable housing costs or affordable rents, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, and which meet the requirements of paragraph (2). Except as otherwise provided in this subdivision, the community may substitute one dwelling unit for one dwelling unit site in the applicable income category. The program shall do all of the following:
(A)Identify the specific, existing sources of committed assistance and dedicate a specific portion of the funds from those sources to the provision of housing pursuant to this subdivision.
(B)Indicate the number of units that will be provided to low-, very low, extremely low, and acutely low income households and demonstrate that the amount of dedicated funds is sufficient to develop the units at affordable housing costs or affordable rents.
(C)Demonstrate that the units meet the requirements of paragraph (2).
(2)Only units that comply with subparagraph (A), (B), (C), (D), or (E) qualify for inclusion in the housing element program described in paragraph (1), as follows:
(A)Units that are to be substantially rehabilitated with committed assistance from the city or county and constitute a net increase in the communitys stock of housing affordable to lower income households. For purposes of this subparagraph, a unit is not eligible to be substantially rehabilitated unless all of the following requirements are met:
(i)At the time the unit is identified for substantial rehabilitation, (I) the local government has determined that the unit is at imminent risk of loss to the housing stock, (II) the local government has committed to provide relocation assistance pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 to any occupants temporarily or permanently displaced by the rehabilitation or code enforcement activity, or the relocation is otherwise provided prior to displacement either as a condition of receivership, or provided by the property owner or the local government pursuant to Article 2.5 (commencing with Section 17975) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code, or as otherwise provided by local ordinance; provided the assistance includes not less than the equivalent of four months rent and moving expenses and comparable replacement housing consistent with the moving expenses and comparable replacement housing required pursuant to Section 7260, (III) the local government requires that any displaced occupants will have the right to reoccupy the rehabilitated units, and (IV) the unit has been found by the local government or a court to be unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code.
(ii)The rehabilitated unit will have long-term affordability covenants and restrictions that require the unit to be available to, and occupied by, persons or families of lower income at affordable housing costs for at least 55 years or the time period required by any applicable federal or state law or regulation.
(iii)Prior to initial occupancy after rehabilitation, the local code enforcement agency shall issue a certificate of occupancy indicating compliance with all applicable state and local building code and health and safety code requirements.
(B)Units that are located either on foreclosed property or in a multifamily rental or ownership housing complex of three or more units, are converted with committed assistance from the city or county from nonaffordable to affordable by acquisition of the unit or the purchase of affordability covenants and restrictions for the unit, are not acquired by eminent domain, and constitute a net increase in the communitys stock of housing affordable to lower income households. For purposes of this subparagraph, a unit is not converted by acquisition or the purchase of affordability covenants unless all of the following occur:
(i)The unit is made available for rent at a cost affordable to lower income households.
(ii)At the time the unit is identified for acquisition, the unit is not available at an affordable housing cost to either of the following:
(I)Low-income households, if the unit will be made affordable to low-income households.
(II)Very low, extremely low, or acutely low income households, if the unit will be made affordable to very low income households.
(iii)At the time the unit is identified for acquisition the unit is not occupied by lower income households or if the acquired unit is occupied, the local government has committed to provide relocation assistance prior to displacement, if any, pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 to any occupants displaced by the conversion, or the relocation is otherwise provided prior to displacement; provided the assistance includes not less than the equivalent of four months rent and moving expenses and comparable replacement housing consistent with the moving expenses and comparable replacement housing required pursuant to Section 7260.
(iv)The unit is in decent, safe, and sanitary condition at the time of occupancy.
(v)The unit has long-term affordability covenants and restrictions that require the unit to be affordable to persons of lower income for not less than 55 years.
(vi)For units located in multifamily ownership housing complexes with three or more units, or on or after January 1, 2015, on foreclosed properties, at least an equal number of new-construction multifamily rental units affordable to lower income households have been constructed in the city or county within the same planning period as the number of ownership units to be converted.
(C)Units that will be preserved at affordable housing costs to persons or families of lower incomes with committed assistance from the city or county by acquisition of the unit or the purchase of affordability covenants for the unit. For purposes of this subparagraph, a unit shall not be deemed preserved unless all of the following occur:
(i)The unit has long-term affordability covenants and restrictions that require the unit to be affordable to, and reserved for occupancy by, persons of the same or a lower income group as the current occupants for a period of at least 55 years.
(ii)The unit is within an assisted housing development, as defined in paragraph (3) of subdivision (a) of Section 65863.10.
(iii)The city or county finds, after a public hearing, that the unit is eligible, and is reasonably expected, to change from housing affordable to lower income households to any other use during the next eight years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use.
(iv)The unit is in decent, safe, and sanitary condition at the time of occupancy.
(v)At the time the unit is identified for preservation it is available at affordable cost to persons or families of low or very low income.
(D)Units in a motel, hotel, or hostel that are converted with committed assistance from the city or county from nonresidential to residential by the acquisition of the unit or the purchase of affordability covenants and restrictions for the unit, are not acquired by eminent domain, and constitute a net increase in the communitys stock of housing affordable to low- and very low income households. For purposes of this subparagraph, a unit is not converted by acquisition or the purchase of affordability covenants unless all of the following occur:
(i)The unit is part of a long-term recovery response to COVID-19.
(ii)The unit is made available for people experiencing homelessness as defined in Section 578.3 of Title 24 of the Code of Federal Regulations.
(iii)The unit is made available for rent at a cost affordable to low- or very low income households.
(iv)The unit is in decent, safe, and sanitary condition at the time of occupancy.
(v)The unit has long-term affordability covenants and restrictions that require the unit to be affordable to persons of low or very low income for not less than 55 years.
(vi)This subparagraph shall remain in effect only for the sixth revision of the housing element pursuant to Section 65588.
(E)All spaces in a mobilehome park, as defined in subdivision (a) of Section 18214 of the Health and Safety Code, that is acquired with committed assistance from the city or county where any of the following apply:
(i)The mobilehome park will be acquired with financing that includes a loan from the department pursuant to Section 50783 or 50784.5 of the Health and Safety Code.
(ii)At least 50 percent of the current residents in the mobilehome park to be acquired are lower income households and the entity acquiring the park agrees to enter into a regulatory agreement for a minimum of 55 years that requires both of the following:
(I)All vacant spaces shall be rented at a space rent that does not exceed 50 percent of maximum rent limits established by the California Tax Credit Allocation Committee at 60 percent of the area median income.
(II)The space rent for existing residents at the time of the acquisition of the property, both during the 12 months preceding the acquisition and during the term of the regulatory agreement, shall not increase more than 5 percent in any 12-month period.
(3)This subdivision does not apply to any city or county that, during the current or immediately prior planning period, as defined by Section 65588, has not met any of its share of the regional need for affordable housing, as defined in Section 65584, for low- and very low income households. A city or county shall document for any housing unit that a building permit has been issued and all development and permit fees have been paid or the unit is eligible to be lawfully occupied.
(4)For purposes of this subdivision, committed assistance means that the city or county enters into a legally enforceable agreement during the period from the beginning of the projection period until the end of the third year of the planning period that obligates sufficient available funds or other in-kind services to provide the assistance necessary to make the identified units affordable and that requires that the units be made available for occupancy within two years of the execution of the agreement. Committed assistance does not include tenant-based rental assistance.
(5)For purposes of this subdivision, net increase includes only housing units provided committed assistance pursuant to subparagraph (A) or (B) of paragraph (2) in the current planning period, as defined in Section 65588, that were not provided committed assistance in the immediately prior planning period.
(6)For purposes of this subdivision, the time the unit is identified means the earliest time when any city or county agent, acting on behalf of a public entity, has proposed in writing or has proposed orally or in writing to the property owner, that the unit be considered for substantial rehabilitation, acquisition, or preservation.
(7)In the fourth year of the planning period, as defined by Section 65588, in the report required pursuant to Section 65400, each city or county that has included in its housing element a program to provide units pursuant to subparagraph (A), (B), (C), (D), or (E) of paragraph (2) shall report in writing to the legislative body, and to the department within 30 days of making its report to the legislative body, on its progress in providing units pursuant to this subdivision. The report shall identify the specific units for which committed assistance has been provided or which have been made available to lower income households, and it shall adequately document how each unit complies with this subdivision. If, by the end of the third year of the planning period, the city or county has not entered into an enforceable agreement of committed assistance for all units specified in the programs adopted pursuant to subparagraph (A), (B), (C), (D), or (E) of paragraph (2), the city or county shall, not later than the end of the fourth year of the planning period, adopt an amended housing element in accordance with Section 65585, identifying additional adequate sites pursuant to paragraph (1) of subdivision (c) of Section 65583 sufficient to accommodate the number of units for which committed assistance was not provided. If a city or county does not amend its housing element to identify adequate sites to address any shortfall, or fails to complete the rehabilitation, acquisition, purchase of affordability covenants, or the preservation of any housing unit within two years after committed assistance was provided to that unit, it shall be prohibited from identifying units pursuant to subparagraph (A), (B), (C), (D), or (E) of paragraph (2) in the housing element that it adopts for the next planning period, as defined in Section 65588, above the number of units actually provided or preserved due to committed assistance.
(d)A city or county may reduce its share of the regional housing need by the number of units built between the start of the projection period and the deadline for adoption of the housing element. If the city or county reduces its share pursuant to this subdivision, the city or county shall include in the housing element a description of the methodology for assigning those housing units to an income category based on actual or projected sales price, rent levels, or other mechanisms establishing affordability.
SEC. 4.Section 65583.2 of the Government Code, as amended by Section 6.5 of Chapter 282 of the Statutes of 2024, is amended to read:65583.2.(a)A citys or countys inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites that can be developed for housing within the planning period, that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584, and that are distributed throughout the community in a manner that affirmatively furthers fair housing. compliance with subdivision (h). As used in this section, land suitable for residential development includes all of the following sites that meet the standards set forth in subdivisions (c) and (g):
(1)Vacant sites zoned for residential use.
(2)Vacant sites zoned for nonresidential use that allows residential development.
(3)Residentially zoned sites that are capable of being developed at a higher density, including sites owned or leased by a city, county, or city and county.
(4)Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, rezoned for, to permit residential use, including sites owned or leased by a city, county, or city and county.
(b)The inventory of land shall include all of the following:
(1)A listing of properties by assessor parcel number.
(2)The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.
(3)For nonvacant sites, a description of the existing use of each property. If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(4)A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation for which has been made available to the jurisdiction. This information need not be identified on a site-specific basis.
(5)(A)A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities.
(B)Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory.
(6)Sites identified as available for housing for above moderate-income households in areas not served by public sewer systems. This information need not be identified on a site-specific basis.
(7)A map that shows the location of the sites included in the inventory, such as the land use map from the jurisdictions general plan, for reference purposes only.
(c)Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the localitys housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning by the applicable deadline for rezoning set forth in subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households. An unincorporated area in a nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall not be subject to the requirements of this subdivision to allow residential use by right. The analysis shall determine whether the inventory can provide for a variety of types of housing, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing, and whether the inventory affirmatively furthers fair housing. The city or county shall determine the number of housing units that can be accommodated on each site as follows:
(1)If local law or regulations require the development of a site at a minimum density, the department shall accept the planning agencys calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.
(2)The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvements requirement identified in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.
(A)A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing.
(B)A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, site means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.
(C)A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
(3)For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or county shall do either of the following:
(A)Provide an analysis demonstrating how the adopted densities accommodate this need. The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.
(B)The following densities shall be deemed appropriate to accommodate housing for lower income households:
(i)For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre.
(ii)For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre.
(iii)For a suburban jurisdiction: sites allowing at least 20 units per acre.
(iv)For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.
(4)(A)For a metropolitan jurisdiction:
(i)At least 25 percent of the jurisdictions share of the regional housing need for moderate-income housing shall be allocated to sites with zoning that allows at least four 4 units of housing, but not more than 100 units per acre of housing.
(ii)At least 25 percent of the jurisdictions share of the regional housing need for above moderate-income housing shall be allocated to sites with zoning that allows at least 4 four units of housing.
(B)The allocation of moderate-income and above moderate-income housing to sites pursuant to this paragraph shall not be a basis for the jurisdiction to do either of the following:
(i)Deny a project that does not comply with the allocation.
(ii)Impose a price minimum, price maximum, price control, or any other exaction or condition of approval in lieu thereof. This clause does not prohibit a jurisdiction from imposing any price minimum, price maximum, price control, exaction, or condition in lieu thereof, pursuant to any other law.
(iii)The provisions of this subparagraph do not constitute a change in, but are declaratory of, existing law with regard to the allocation of sites pursuant to this section.
(C)This paragraph does not apply to an unincorporated area.
(D)For purposes of this paragraph:
(i)Housing development project has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.
(ii)Unit of housing does not include an accessory dwelling unit or junior accessory dwelling unit that could be approved pursuant to Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 or through a local ordinance or other provision implementing either of those articles. This paragraph shall not limit the ability of a local government to count the actual production of accessory dwelling units or junior accessory dwelling units in an annual progress report submitted pursuant to Section 65400 or other progress report as determined by the department.
(E)Nothing in this subdivision shall preclude the subdivision of a parcel, provided that the subdivision is subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)) or any other applicable law authorizing the subdivision of land.
(d)For purposes of this section, a metropolitan county, nonmetropolitan county, and nonmetropolitan county with a micropolitan area shall be as determined by the United States Census Bureau. A nonmetropolitan county with a micropolitan area includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada, Tehama, and Tuolumne and other counties as may be determined by the United States Census Bureau to be nonmetropolitan counties with micropolitan areas in the future.
(e)(1)Except as provided in paragraph (2), a jurisdiction shall be considered suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdictions population is greater than 100,000, in which case it shall be considered metropolitan. A county, not including the City and County of San Francisco, shall be considered suburban unless the county is in an MSA of 2,000,000 or greater in population, in which case the county shall be considered metropolitan.
(2)(A)(i)Notwithstanding paragraph (1), if a county that is in the San Francisco-Oakland-Fremont California MSA has a population of less than 400,000, that county shall be considered suburban. If this county includes an incorporated city that has a population of less than 100,000, this city shall also be considered suburban. This paragraph shall apply to a housing element revision cycle, as described in subparagraph (A) of paragraph (3) of subdivision (e) of Section 65588, that is in effect from July 1, 2014, to December 31, 2028, inclusive.
(ii)A county subject to this subparagraph shall utilize the sum existing in the countys housing trust fund as of June 30, 2013, for the development and preservation of housing affordable to low- and very low income households.
(B)A jurisdiction that is classified as suburban pursuant to this paragraph shall report to the Assembly Committee on Housing and Community Development, the Senate Committee on Housing, and the Department of Housing and Community Development regarding its progress in developing low- and very low income housing consistent with the requirements of Section 65400. The report shall be provided three times: once, on or before December 31, 2019, which report shall address the initial four years of the housing element cycle, a second time, on or before December 31, 2023, which report shall address the subsequent four years of the housing element cycle, and a third time, on or before December 31, 2027, which report shall address the subsequent four years of the housing element cycle and the cycle as a whole. The reports shall be provided consistent with the requirements of Section 9795.
(f)A jurisdiction shall be considered metropolitan if the jurisdiction does not meet the requirements for suburban area above and is located in an MSA of 2,000,000 or greater in population, unless that jurisdictions population is less than 25,000 in which case it shall be considered suburban.
(g)(1)For sites described in paragraph (3) of subdivision (b), the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the citys or countys past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.
(2)In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.
(3)Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entitys valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site. Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915.
(h)(1)A city or county shall ensure that the sites Sites identified pursuant to subdivision (c) are shall be distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing allowing for a reduction in residential segregation. This determination shall be based on whether the sites identified to accommodate the lower income share of the regional housing need and the sites identified to accommodate the total regional housing need, taking into account the number of units specified to be accommodated on each site pursuant to subdivision (c), are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
(2)(A)By no later than April 1, 2027, the department shall develop and publish an online tool that shall serve as the method for determining whether each citys or countys identification of sites adequate to accommodate its share of the regional housing need at all income levels that meets the requirement in paragraph (1).
(B)The department may grant an adjustment to the requirement in paragraph (1) if underlying data for the jurisdiction renders the tool unreliable. The department shall include in its materials explaining the online tool a procedure for applying for an adjustment and the factors that the department will consider in determining whether or not to grant an adjustment.
(i)(1)The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for lower income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period.
(2)These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c), and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the lower income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the lower income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.
(j)For purposes of this section and Section 65583, the phrase use by right shall mean that the local governments review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that use by right does not exempt the use from design review. However, that design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.
(k)Notwithstanding any other provision of this section, within one-half mile of a Sonoma-Marin Area Rail Transit station, housing density requirements in place on June 30, 2014, shall apply.
(l)For purposes of subdivisions (a) and (b), the department shall provide guidance to local governments to properly survey, detail, and account for sites listed pursuant to Section 65585.
(m)(1)The changes to this section made by Chapter 193 of the Statutes of 2020 shall become operative on January 1, 2022.
(2)The changes to this section made by Chapter 193 of the Statutes of 2020 shall not apply to a housing element revision that is originally due on or before January 1, 2022, regardless of the date of adoption by the local agency.
(n)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 5.Section 65583.2 of the Government Code, as amended by Section 7.5 of Chapter 282 of the Statutes of 2024, is amended to read:65583.2.(a)A citys or countys inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites that can be developed for housing within the planning period, that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584, and that are distributed throughout the community in a manner that affirmatively furthers fair housing. compliance with subdivision (h). As used in this section, land suitable for residential development includes all of the following sites that meet the standards set forth in subdivisions (c) and (g):
(1)Vacant sites zoned for residential use.
(2)Vacant sites zoned for nonresidential use that allows residential development.
(3)Residentially zoned sites that are capable of being developed at a higher density, and sites owned or leased by a city, county, or city and county.
(4)Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, to permit residential use, including sites owned or leased by a city, county, or city and county.
(b)The inventory of land shall include all of the following:
(1)A listing of properties by assessor parcel number.
(2)The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.
(3)For nonvacant sites, a description of the existing use of each property. If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(4)A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation for which has been made available to the jurisdiction. This information need not be identified on a site-specific basis.
(5)(A)A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities.
(B)Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory.
(6)Sites identified as available for housing for above moderate-income households in areas not served by public sewer systems. This information need not be identified on a site-specific basis.
(7)A map that shows the location of the sites included in the inventory, such as the land use map from the jurisdictions general plan for reference purposes only.
(c)Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the localitys housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning by the applicable deadline for rezoning set forth in subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households. An unincorporated area in a nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall not be subject to the requirements of this subdivision to allow residential use by right. The analysis shall determine whether the inventory can provide for a variety of types of housing, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing, and whether the inventory affirmatively furthers fair housing. The city or county shall determine the number of housing units that can be accommodated on each site as follows:
(1)If local law or regulations require the development of a site at a minimum density, the department shall accept the planning agencys calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.
(2)The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvements requirement identified in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.
(A)A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing.
(B)A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, site means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.
(C)A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
(3)For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or county shall do either of the following:
(A)Provide an analysis demonstrating how the adopted densities accommodate this need. The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.
(B)The following densities shall be deemed appropriate to accommodate housing for lower income households:
(i)For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre.
(ii)For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre.
(iii)For a suburban jurisdiction: sites allowing at least 20 units per acre.
(iv)For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.
(4)(A)For a metropolitan jurisdiction:
(i)At least 25 percent of the jurisdictions share of the regional housing need for moderate-income housing shall be allocated to sites with zoning that allows at least four 4 units of housing, but not more than 100 units per acre of housing.
(ii)At least 25 percent of the jurisdictions share of the regional housing need for above moderate-income housing shall be allocated to sites with zoning that allows at least 4 four units of housing.
(B)The allocation of moderate-income and above moderate-income housing to sites pursuant to this paragraph shall not be a basis for the jurisdiction to do either of the following:
(i)Deny a project that does not comply with the allocation.
(ii)Impose a price minimum, price maximum, price control, or any other exaction or condition of approval in lieu thereof. This clause does not prohibit a jurisdiction from imposing any price minimum, price maximum, price control, exaction, or condition in lieu thereof, pursuant to any other law.
(iii)The provisions of this subparagraph do not constitute a change in, but are declaratory of, existing law with regard to the allocation of sites pursuant to this section.
(C)This paragraph does not apply to an unincorporated area.
(D)For purposes of this paragraph:
(i)Housing development project has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.
(ii)Unit of housing does not include an accessory dwelling unit or junior accessory dwelling unit that could be approved pursuant to Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 or through a local ordinance or other provision implementing either of those articles. This paragraph shall not limit the ability of a local government to count the actual production of accessory dwelling units or junior accessory dwelling units in an annual progress report submitted pursuant to Section 65400 or other progress report as determined by the department.
(E)Nothing in this subdivision shall preclude the subdivision of a parcel, provided that the subdivision is subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)) or any other applicable law authorizing the subdivision of land.
(d)For purposes of this section, a metropolitan county, nonmetropolitan county, and nonmetropolitan county with a micropolitan area shall be as determined by the United States Census Bureau. A nonmetropolitan county with a micropolitan area includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada, Tehama, and Tuolumne and other counties as may be determined by the United States Census Bureau to be nonmetropolitan counties with micropolitan areas in the future.
(e)A jurisdiction shall be considered suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdictions population is greater than 100,000, in which case it shall be considered metropolitan. A county, not including the City and County of San Francisco, shall be considered suburban unless the county is in an MSA of 2,000,000 or greater in population in which case the county shall be considered metropolitan.
(f)A jurisdiction shall be considered metropolitan if the jurisdiction does not meet the requirements for suburban area above and is located in an MSA of 2,000,000 or greater in population, unless that jurisdictions population is less than 25,000 in which case it shall be considered suburban.
(g)(1)For sites described in paragraph (3) of subdivision (b), the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the citys or countys past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.
(2)In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.
(3)Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entitys valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site. Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915.
(h)(1)A city or county shall ensure that the sites Sites identified pursuant to subdivision (c) are shall be distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing allowing for a reduction in residential segregation. This determination shall be based on whether the sites identified to accommodate the lower income share of the regional housing need and the sites identified to accommodate the total regional housing need, taking into account the number of units specified to be accommodated on each site pursuant to subdivision (c), are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
(2)(A)By no later than April 1, 2027, the department shall develop and publish an online tool that shall serve as the method for determining whether each city citys or countys identification of sites adequate to accommodate its share of the regional housing need at all income levels that meets the requirement in paragraph (1).
(B)The department may grant an adjustment to the requirement in paragraph (1) if underlying data for the jurisdiction renders the tool unreliable. The department shall include in its materials explaining the online tool a procedure for applying for an adjustment and the factors that the department will consider in determining whether or not to grant an adjustment.
(i)(1)The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for lower income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period.
(2)These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c), and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the lower income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the lower income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.
(j)For purposes of this section and Section 65583, the phrase use by right shall mean that the local governments review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that use by right does not exempt the use from design review. However, that design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.
(k)For purposes of subdivisions (a) and (b), the department shall provide guidance to local governments to properly survey, detail, and account for sites listed pursuant to Section 65585.
(l)This section shall become operative on December 31, 2028.
SEC. 6.The Legislature finds and declares that Sections 1 to 5, inclusive, of this act amending Sections 65583, 65583.1, and 65583.2 of, and adding Section 65583.01 to, the Government Code address a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 to 5, inclusive, of this act apply to all cities, including charter cities.
SEC. 7.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The housing element shall contain all of the following:
(a)An assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs. The assessment and inventory shall include all of the following:
(1)An analysis of population and employment trends and documentation of projections and a quantification of the localitys existing and projected housing needs for all income levels. These existing and projected needs shall include the localitys share of the regional housing need in accordance with Section 65584.
(2)An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
(3)An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the localitys housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites, and an analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing, which shall demonstrate that the jurisdiction has accommodated a meaningful portion of its share of the regional housing need for lower income households on sites located in higher income, racially exclusive areas to the extent that those areas exist within the jurisdiction. sites.
(4)(A)The identification of one or more zoning designations that allow residential uses, including mixed uses, where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit and that are suitable for residential uses. The identified zoning designations shall include sufficient sites meeting the requirements of subparagraph (H) with sufficient capacity, as described in subparagraph (I), to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zoning designation or designations that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zoning designation or designations with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zoning designations where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards that apply to emergency shelters are objective and encourage and facilitate the development of, or conversion to, emergency shelters.
(B)Emergency shelters shall only be subject to the following written, objective standards:
(i)The maximum number of beds or persons permitted to be served nightly by the facility.
(ii)Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.
(iii)The size and location of exterior and interior onsite waiting and client intake areas.
(iv)The provision of onsite management.
(v)The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
(vi)The length of stay.
(vii)Lighting.
(viii)Security during hours that the emergency shelter is in operation.
(C)For purposes of this paragraph, emergency shelter shall include other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.
(D)The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(E)If a local government has adopted written, objective standards pursuant to subparagraph (B), the local government shall include an analysis of the standards in the analysis of constraints pursuant to paragraph (5).
(F)A local government that can demonstrate, to the satisfaction of the department, the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdictions need and the needs of the other jurisdictions that are a part of the agreement for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zoning designation where new emergency shelters are allowed with a conditional use permit.
(G)A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zoning designations for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph.
(H)The zoning designation or designations where emergency shelters are allowed, as described in subparagraph (A), shall include sites that meet at least one of the following standards:
(i)Vacant sites zoned for residential use.
(ii)Vacant sites zoned for nonresidential use that allow residential development, if the local government can demonstrate how the sites with this zoning designation that are being used to satisfy the requirements of paragraph (1) are located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite.
(iii)Nonvacant sites zoned for residential use or for nonresidential use that allow residential development that are suitable for use as a shelter in the current planning period, or which can be redeveloped for use as a shelter in the current planning period. A nonvacant site with an existing use shall be presumed to impede emergency shelter development absent an analysis based on substantial evidence that the use is likely to be discontinued during the planning period. The analysis shall consider current market demand for the current uses, market conditions, and incentives or standards to encourage shelter development.
(I)The zoning designation or designations shall have sufficient sites meeting the requirements of subparagraph (H) to accommodate the need for shelters identified pursuant to paragraph (7). The number of people experiencing homelessness that can be accommodated on any site shall be demonstrated by dividing the square footage of the site by a minimum of 200 square feet per person, unless the locality can demonstrate that one or more shelters were developed on sites that have fewer square feet per person during the prior planning period or the locality provides similar evidence to the department demonstrating that the site can accommodate more people experiencing homelessness. Any standard applied pursuant to this subparagraph is intended only for calculating site capacity pursuant to this section, and shall not be construed as establishing a development standard applicable to the siting, development, or approval of a shelter.
(J)Notwithstanding subparagraph (H), a local government may accommodate the need for emergency shelters identified pursuant to paragraph (7) on sites owned by the local government if it demonstrates with substantial evidence that the sites will be made available for emergency shelter during the planning period, they are suitable for residential use, and the sites are located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite.
(5)An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees, and other exactions required of developers, local processing and permit procedures, historic preservation practices and policies and an assessment of how existing and proposed historic designations affect the localitys ability to meet its share of the housing need pursuant to paragraph (1), and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).
(6)An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a localitys share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the localitys planning for the development of housing for all income levels and the construction of that housing.
(7)(A)An analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; extremely low income households; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on the capacity necessary to accommodate the most recent homeless point-in-time count conducted before the start of the planning period, the need for emergency shelter based on number of beds available on a year-round and seasonal basis, the number of shelter beds that go unused on an average monthly basis within a one-year period, and the percentage of those in emergency shelters that move to permanent housing solutions. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services.
(B)For the seventh and subsequent revisions of the housing element, the analysis required in subparagraph (A) shall also include an analysis of the housing needs of acutely and extremely low income households.
(8)An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system.
(9)An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. Assisted housing developments, for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. Assisted housing developments shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916.
(A)The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the localitys low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis.
(B)The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate.
(C)The analysis shall identify public and private nonprofit corporations known to the local government that have legal and managerial capacity to acquire and manage these housing developments.
(D)The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs that can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program that have not been legally obligated for other purposes and that could be available for use in preserving assisted housing developments.
(b)(1)A statement of the communitys goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing.
(2)It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the communitys ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category that can be constructed, rehabilitated, and conserved over a five-year time period.
(c)A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:
(1)Identify 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 citys or countys share of the regional housing need for all income levels that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, or to ensure that the distribution of sites across the jurisdiction affirmatively furthers fair housing as determined pursuant to subdivision (h) of Section 65583.2, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to ensure that the sites designated to accommodate the citys or countys share of the regional housing need at all income levels after any required rezoning affirmatively further furthers fair housing housing, as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2, and to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing.
(A)Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify include adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, or does where the sites identified pursuant to subdivision (c) of Section 65583.2 do not affirmatively further fair housing, housing as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2, a program for rezoning of those sites, subject to the following deadlines:
(i)For the adoption of the sixth revision of the housing element, jurisdictions with an eight-year housing element planning period pursuant to Section 65588, including adoption of minimum density and development standards or, for a jurisdiction in the coastal zone, any necessary local coastal program amendments related to land use designations, changes in intensity of land use, zoning ordinances, or zoning district maps, consistent with Sections 30512, 30512.2, 30513, and 30514 of the Public Resources Code, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f). Notwithstanding the foregoing, for a local government that fails to adopt a housing element that the department has found to be in substantial compliance with this article within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards or, for a jurisdiction in the coastal zone, any necessary local coastal program amendments related to land use designations, changes in intensity of land use, zoning ordinances, or zoning district maps, consistent with Sections 30512, 30512.2, 30513, and 30514 of the Public Resources Code, shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
(ii)For adoption of the seventh and all subsequent revisions of the housing element, rezonings shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
(iii)Notwithstanding clause (ii), for the adoption of the seventh and all subsequent revisions of the housing element, rezonings shall be completed no later than three years and 90 days after the statutory deadline in Section 65588 for adoption of the housing element, unless the deadline is extended pursuant to subdivision (f). This clause shall apply only if the local government complies with all of the following:
(I)The local government submits a draft element or draft amendment to the department for review pursuant to paragraph (1) of subdivision (b) of Section 65585 at least 90 days before the statutory deadline established in Section 65588 for adoption of the housing element.
(II)The local government receives from the department findings that the draft element or draft amendment substantially complies with this article pursuant to paragraph (3) of subdivision (b) of Section 65585 on or before the statutory deadline set forth in Section 65588 for adoption of the housing element.
(III)The local government adopts the draft element or draft amendment that the department found to substantially comply with this article no later than 120 days after the statutory deadline set forth in Section 65588.
(B)Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify include adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, or where the sites identified pursuant to subdivision (c) of Section 65583.2 do not affirmatively further fair housing as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) (i) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2. The jurisdiction shall demonstrate that sites identified to accommodate the citys or countys share of the regional housing need at all income levels after any rezoning required by this subdivision will affirmatively further fair housing as determined pursuant to paragraph (2) of subdivision (h) of Section 65583.2.
(C)Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify include adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households.
(2)(A)Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.
(B)For the seventh and subsequent revisions of the housing element, the program shall also assist in the development of adequate housing to meet the needs of acutely low income households.
(3)Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650).
(4)Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.
(5)Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.
(6)Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance.
(7)Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, accessory dwelling units has the same meaning as accessory dwelling unit as defined in subdivision (a) of Section 66313.
(8)Include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.
(9)Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.
(10)(A)Affirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include all of the following components: meet the requirements of Section 65583.01.
(i)A summary of fair housing issues in the jurisdiction and an assessment of the jurisdictions fair housing enforcement and fair housing outreach capacity.(ii)An analysis, which shall be completed at least one year prior to the adoption deadline for the revision of the housing element, of available federal, state, and local data and knowledge, including meaningful consultation with members of protected classes and organizations representing their interests, to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2) and Section 65008.(iii)An assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified under clauses (i) and (ii).(iv)An identification of the jurisdictions fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved.(v)Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement.(B)A jurisdiction that completes or revises an assessment of fair housing pursuant to Subpart A (commencing with Section 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal Regulations, as published in Volume 80 of the Federal Register, Number 136, page 42272, dated July 16, 2015, or an analysis of impediments to fair housing choice in accordance with the requirements of Section 91.225 of Title 24 of the Code of Federal Regulations in effect before August 17, 2015, may incorporate relevant portions of that assessment or revised assessment of fair housing or analysis or revised analysis of impediments to fair housing into its housing element.(C)(i)The requirements of this paragraph shall apply to housing elements due to be revised pursuant to Section 65588 on or after January 1, 2021.(ii)The assessment required pursuant to this paragraph shall be completed before the planning agency makes its first draft revision of a housing element available for public comment pursuant to subdivision (b) of Section 65585.(D)(i)The department shall develop a standardized reporting format for programs and actions taken pursuant to this paragraph. The standardized reporting format shall enable the reporting of all of the assessment components listed in subparagraph (A) and, at a minimum, include all of the following fields:(I)Timelines for implementation.(II)Responsible party or parties.(III)Resources committed from the local budget to affirmatively further fair housing.(IV)Action areas.(V)Potential impacts of the program.(ii)A local government shall utilize the standardized report format developed pursuant to this subparagraph for the seventh and each subsequent revision of the housing element.(d)(1)A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period.
(2)The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit toward its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element.
(3)Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following:
(A)How the joint facility will meet the jurisdictions emergency shelter need.
(B)The jurisdictions contribution to the facility for both the development and ongoing operation and management of the facility.
(C)The amount and source of the funding that the jurisdiction contributes to the facility.
(4)The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter.
(e)Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following:
(1)A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section.
(2)Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02.
(f)The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the units for lower income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exists:
(1)The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency.
(2)The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints.
(3)The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.
The resolution and the findings shall be transmitted to the department together with a detailed budget and schedule for preparation and adoption of the required rezonings, including plans for citizen participation and expected interim action. The schedule shall provide for adoption of the required rezoning within one year of the adoption of the resolution.
(g)(1)If a local government fails to complete the rezoning by the deadline provided in subparagraph (A) of paragraph (1) of subdivision (c), as it may be extended pursuant to subdivision (f), except as provided in paragraph (2), a local government may not disapprove a housing development project, nor require a conditional use permit, planned unit development permit, or other locally imposed discretionary permit, or impose a condition that would render the project infeasible, if the housing development project, (A) is proposed to be located on a site required to be rezoned pursuant to the program action required by that subparagraph and, (B) complies with applicable, objective general plan and zoning standards and criteria, including design review standards, described in the program action required by that subparagraph. Any subdivision of sites shall be subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)). Design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)A local government may disapprove a housing development described in paragraph (1) if it makes written findings supported by substantial evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(3)The applicant or any interested person may bring an action to enforce this subdivision. If a court finds that the local agency disapproved a project or conditioned its approval in violation of this subdivision, the court shall issue an order or judgment compelling compliance within 60 days. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders to ensure that the purposes and policies of this subdivision are fulfilled. In any such action, the city, county, or city and county shall bear the burden of proof.
(4)For purposes of this subdivision, housing development project means a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49 percent of the housing units for very low, low-, and moderate-income households with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, respectively, for the period required by the applicable financing.
(h)An action to enforce the program actions of the housing element shall be brought pursuant to Section 1085 of the Code of Civil Procedure.
(i)Notwithstanding any other law, the otherwise applicable timeframe set forth in paragraph (2) of subdivision (b) and subdivision (d) of Section 21080.3.1 of the Public Resources Code, and paragraph (3) of subdivision (d) of Section 21082.3 of the Public Resources Code, for a Native American tribe to respond to a lead agency and request consultation in writing is extended by 30 days for any housing development project application determined or deemed to be complete on or after March 4, 2020, and prior to December 31, 2021.
(j)On or after January 1, 2024, at the discretion of the department, the analysis of government constraints pursuant to paragraph (5) of subdivision (a) may include an analysis of constraints upon the maintenance, improvement, or development of housing for persons with a characteristic identified in subdivision (b) of Section 51 of the Civil Code. The implementation of this subdivision is contingent upon an appropriation by the Legislature in the annual Budget Act or another statute for this purpose.
SEC. 2.Section 65583.01 is added to the Government Code, to read:65583.01.The program to affirmatively further fair housing required pursuant to paragraph (10) of subdivision (c) of Section 65583 shall meet the requirements of Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2 and all of the following requirements:
(a)At least one year prior to the adoption deadline for the next revision of the housing element, the city or county shall complete and make publicly available an assessment that includes both of the following:
(1)(A)An analysis of available federal, state, and local data and knowledge to identify and examine all of the following:
(i)Integration and segregation patterns and trends.
(ii)Racially or ethnically concentrated areas of poverty and affluence.
(iii)Disparities in access to opportunity for members of protected classes, including, but not limited to, access to educational, employment, and transportation opportunities, and access to a healthy environment.
(iv)Disparities in availability and quality of amenities and services for members of protected classes, including infrastructure, parks, maintenance and sanitation services, health services, grocery stores, and financial institutions.
(v)Disproportionate housing needs of members of protected classes, including, but not limited to, displacement risk, evictions, cost burden, overcrowding, substandard housing, homelessness, risk related to climate disasters, and expiring covenants resulting in loss of affordable housing.
(vi)Investment and disinvestment patterns and trends.
(B)(i)The analysis shall be prepared after meaningful consultation with members of protected classes and organizations representing their interests and shall identify and examine those patterns, trends, areas, disparities, and needs both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2) and Section 65008.
(ii)A jurisdiction shall conduct the outreach and engagement required under meaningful consultation through a variety of methods, in languages commonly spoken by community members, and in an accessible format for people with disabilities as needed. The jurisdiction shall include in any drafts of the housing element and the final adopted housing element a description of its outreach, a summary of comments received, and an explanation of how the comments were considered and incorporated or why they were rejected.
(2)Based on the analysis completed pursuant to paragraph (1), a summary of fair housing issues in the jurisdiction and an assessment of the contributing factors, including the local and regional historical origins and current policies and practices, that created and maintain the fair housing issues identified.
(b)After completing the assessment pursuant to subdivision (a), and before the first draft revision of the housing element, the city or county shall solicit public comments on the assessment and seek input on, including through meaningful consultation with members of protected classes and organizations that represent their interests, the information required pursuant to paragraphs (1) and (2) of subdivision (c).
(c)The city or county shall include in the first draft revision of the housing element available for public comment pursuant to subdivision (b) of Section 65585 both of the following:
(1)The assessment completed pursuant to subdivision (a), including any revisions made in response to comments received pursuant to subdivision (b).
(2)Based on the assessment and any input received pursuant to the meaningful consultation required pursuant to subdivision (b), all of the following:
(A)An identification of the jurisdictions fair housing priorities and goals, giving highest priority to addressing those issues and factors identified in paragraph (2) of subdivision (a) that have been identified as priorities by members of protected classes and organizations representing their interests, limit access for members of protected classes to higher income areas, limit access to opportunity, contribute to lack of investment in historically disadvantaged neighborhoods, or cause displacement of protected classes.
(B)An identification of the neighborhoods most in need of investment and the types of investment required to meet the needs of members of protected classes without causing displacement of protected classes.
(C)Strategies and actions to implement the priorities and goals identified in subparagraph (A), including those that would make necessary investments in the areas identified in subparagraph (B) and those that would expand housing choice for members of protected classes. Jurisdictions shall consider strategies that include, but are not limited to, all of the following:
(i)Strategies to enable members of protected classes to live in the neighborhood of their choice.
(ii)Strategies to encourage development of new affordable housing in both higher income neighborhoods and historically disinvested neighborhoods.
(iii)Strategies to encourage community revitalization in historically disinvested neighborhoods, including preservation of existing affordable housing, infrastructure, and other investments that enhance opportunity, remediation of environmental justice issues, and policies that protect existing residents and community-serving small businesses from displacement.
(D)An assessment of the jurisdictions fair housing enforcement and fair housing outreach capacity.
(d)(1)The department shall develop a standardized format for describing strategies and actions to be taken pursuant to subparagraph (C) of paragraph (2) of subdivision (c). The standardized format shall address all of the assessment components listed in subparagraph (A) of paragraph (1) of subdivision (a), and, at a minimum, include all of the following fields:
(A)Timelines for implementation.
(B)Responsible party or parties.
(C)Resources committed from the local budget to affirmatively further fair housing.
(D)Action areas.
(E)Which fair housing priority the program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
(2)A local government shall utilize the standardized format developed pursuant to this subdivision for the seventh and each subsequent revision of the housing element.
(e)For purposes of this section, the following definitions shall apply:
(1)Meaningful consultation means taking proactive steps to outreach to and engage with members of protected classes, especially those harmed by the impact of historical discrimination in the jurisdiction and surrounding region, and organizations representing their interests, to solicit their participation and input throughout the development of the assessment described in subdivision (a).
(2)Members of protected classes means persons as described in paragraph (5) of subdivision (c) of Section 65583.
SEC. 3.Section 65583.1 of the Government Code is amended to read:65583.1.(a)The Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance with this article, may allow a city or county to identify adequate sites, as required pursuant to Section 65583, by a variety of methods, including, but not limited to, redesignation of property to a more intense land use category and increasing the density allowed within one or more categories. The department may also allow a city or county to identify sites for accessory dwelling units in each income category based on the number of accessory dwelling units developed in the prior housing element planning period in that income category whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. For accessory dwelling units developed in the prior housing element period to count toward determining the number of sites for accessory dwelling units a jurisdiction can include in the lower income category, the jurisdiction shall provide proof of a recorded deed restriction requiring the continued affordability of the unit for at least 55 years for rental housing and 30 years for ownership housing for lower income households. Nothing in this section reduces the responsibility of a city or county to identify, by income category, the total number of sites for residential development as required by this article.
(b)Sites that contain permanent housing units located on a military base undergoing closure or conversion as a result of action pursuant to the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526), the Defense Base Closure and Realignment Act of 1990 (Public Law 101-510), or any subsequent act requiring the closure or conversion of a military base may be identified as an adequate site if the housing element demonstrates that the housing units will be available for occupancy by households within the planning period of the element. No sites containing housing units scheduled or planned for demolition or conversion to nonresidential uses shall qualify as an adequate site.
Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to paragraph (1) of subdivision (b) of Section 65400.
(c)(1)The Department of Housing and Community Development may allow a city or county to substitute the provision of units for up to 25 percent of the communitys obligation to identify adequate sites for any income category in its housing element pursuant to paragraph (1) of subdivision (c) of Section 65583 where the community includes in its housing element a program committing the local government to provide units in that income category within the city or county that will be made available through the provision of committed assistance during the planning period covered by the element to lower income households at affordable housing costs or affordable rents, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, and which meet the requirements of paragraph (2). Except as otherwise provided in this subdivision, the community may substitute one dwelling unit for one dwelling unit site in the applicable income category. The program shall do all of the following:
(A)Identify the specific, existing sources of committed assistance and dedicate a specific portion of the funds from those sources to the provision of housing pursuant to this subdivision.
(B)Indicate the number of units that will be provided to low-, very low, extremely low, and acutely low income households and demonstrate that the amount of dedicated funds is sufficient to develop the units at affordable housing costs or affordable rents.
(C)Demonstrate that the units meet the requirements of paragraph (2).
(2)Only units that comply with subparagraph (A), (B), (C), (D), or (E) qualify for inclusion in the housing element program described in paragraph (1), as follows:
(A)Units that are to be substantially rehabilitated with committed assistance from the city or county and constitute a net increase in the communitys stock of housing affordable to lower income households. For purposes of this subparagraph, a unit is not eligible to be substantially rehabilitated unless all of the following requirements are met:
(i)At the time the unit is identified for substantial rehabilitation, (I) the local government has determined that the unit is at imminent risk of loss to the housing stock, (II) the local government has committed to provide relocation assistance pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 to any occupants temporarily or permanently displaced by the rehabilitation or code enforcement activity, or the relocation is otherwise provided prior to displacement either as a condition of receivership, or provided by the property owner or the local government pursuant to Article 2.5 (commencing with Section 17975) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code, or as otherwise provided by local ordinance; provided the assistance includes not less than the equivalent of four months rent and moving expenses and comparable replacement housing consistent with the moving expenses and comparable replacement housing required pursuant to Section 7260, (III) the local government requires that any displaced occupants will have the right to reoccupy the rehabilitated units, and (IV) the unit has been found by the local government or a court to be unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code.
(ii)The rehabilitated unit will have long-term affordability covenants and restrictions that require the unit to be available to, and occupied by, persons or families of lower income at affordable housing costs for at least 55 years or the time period required by any applicable federal or state law or regulation.
(iii)Prior to initial occupancy after rehabilitation, the local code enforcement agency shall issue a certificate of occupancy indicating compliance with all applicable state and local building code and health and safety code requirements.
(B)Units that are located either on foreclosed property or in a multifamily rental or ownership housing complex of three or more units, are converted with committed assistance from the city or county from nonaffordable to affordable by acquisition of the unit or the purchase of affordability covenants and restrictions for the unit, are not acquired by eminent domain, and constitute a net increase in the communitys stock of housing affordable to lower income households. For purposes of this subparagraph, a unit is not converted by acquisition or the purchase of affordability covenants unless all of the following occur:
(i)The unit is made available for rent at a cost affordable to lower income households.
(ii)At the time the unit is identified for acquisition, the unit is not available at an affordable housing cost to either of the following:
(I)Low-income households, if the unit will be made affordable to low-income households.
(II)Very low, extremely low, or acutely low income households, if the unit will be made affordable to very low income households.
(iii)At the time the unit is identified for acquisition the unit is not occupied by lower income households or if the acquired unit is occupied, the local government has committed to provide relocation assistance prior to displacement, if any, pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 to any occupants displaced by the conversion, or the relocation is otherwise provided prior to displacement; provided the assistance includes not less than the equivalent of four months rent and moving expenses and comparable replacement housing consistent with the moving expenses and comparable replacement housing required pursuant to Section 7260.
(iv)The unit is in decent, safe, and sanitary condition at the time of occupancy.
(v)The unit has long-term affordability covenants and restrictions that require the unit to be affordable to persons of lower income for not less than 55 years.
(vi)For units located in multifamily ownership housing complexes with three or more units, or on or after January 1, 2015, on foreclosed properties, at least an equal number of new-construction multifamily rental units affordable to lower income households have been constructed in the city or county within the same planning period as the number of ownership units to be converted.
(C)Units that will be preserved at affordable housing costs to persons or families of lower incomes with committed assistance from the city or county by acquisition of the unit or the purchase of affordability covenants for the unit. For purposes of this subparagraph, a unit shall not be deemed preserved unless all of the following occur:
(i)The unit has long-term affordability covenants and restrictions that require the unit to be affordable to, and reserved for occupancy by, persons of the same or a lower income group as the current occupants for a period of at least 55 years.
(ii)The unit is within an assisted housing development, as defined in paragraph (3) of subdivision (a) of Section 65863.10.
(iii)The city or county finds, after a public hearing, that the unit is eligible, and is reasonably expected, to change from housing affordable to lower income households to any other use during the next eight years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use.
(iv)The unit is in decent, safe, and sanitary condition at the time of occupancy.
(v)At the time the unit is identified for preservation it is available at affordable cost to persons or families of low or very low income.
(D)Units in a motel, hotel, or hostel that are converted with committed assistance from the city or county from nonresidential to residential by the acquisition of the unit or the purchase of affordability covenants and restrictions for the unit, are not acquired by eminent domain, and constitute a net increase in the communitys stock of housing affordable to low- and very low income households. For purposes of this subparagraph, a unit is not converted by acquisition or the purchase of affordability covenants unless all of the following occur:
(i)The unit is part of a long-term recovery response to COVID-19.
(ii)The unit is made available for people experiencing homelessness as defined in Section 578.3 of Title 24 of the Code of Federal Regulations.
(iii)The unit is made available for rent at a cost affordable to low- or very low income households.
(iv)The unit is in decent, safe, and sanitary condition at the time of occupancy.
(v)The unit has long-term affordability covenants and restrictions that require the unit to be affordable to persons of low or very low income for not less than 55 years.
(vi)This subparagraph shall remain in effect only for the sixth revision of the housing element pursuant to Section 65588.
(E)All spaces in a mobilehome park, as defined in subdivision (a) of Section 18214 of the Health and Safety Code, that is acquired with committed assistance from the city or county where any of the following apply:
(i)The mobilehome park will be acquired with financing that includes a loan from the department pursuant to Section 50783 or 50784.5 of the Health and Safety Code.
(ii)At least 50 percent of the current residents in the mobilehome park to be acquired are lower income households and the entity acquiring the park agrees to enter into a regulatory agreement for a minimum of 55 years that requires both of the following:
(I)All vacant spaces shall be rented at a space rent that does not exceed 50 percent of maximum rent limits established by the California Tax Credit Allocation Committee at 60 percent of the area median income.
(II)The space rent for existing residents at the time of the acquisition of the property, both during the 12 months preceding the acquisition and during the term of the regulatory agreement, shall not increase more than 5 percent in any 12-month period.
(3)This subdivision does not apply to any city or county that, during the current or immediately prior planning period, as defined by Section 65588, has not met any of its share of the regional need for affordable housing, as defined in Section 65584, for low- and very low income households. A city or county shall document for any housing unit that a building permit has been issued and all development and permit fees have been paid or the unit is eligible to be lawfully occupied.
(4)For purposes of this subdivision, committed assistance means that the city or county enters into a legally enforceable agreement during the period from the beginning of the projection period until the end of the third year of the planning period that obligates sufficient available funds or other in-kind services to provide the assistance necessary to make the identified units affordable and that requires that the units be made available for occupancy within two years of the execution of the agreement. Committed assistance does not include tenant-based rental assistance.
(5)For purposes of this subdivision, net increase includes only housing units provided committed assistance pursuant to subparagraph (A) or (B) of paragraph (2) in the current planning period, as defined in Section 65588, that were not provided committed assistance in the immediately prior planning period.
(6)For purposes of this subdivision, the time the unit is identified means the earliest time when any city or county agent, acting on behalf of a public entity, has proposed in writing or has proposed orally or in writing to the property owner, that the unit be considered for substantial rehabilitation, acquisition, or preservation.
(7)In the fourth year of the planning period, as defined by Section 65588, in the report required pursuant to Section 65400, each city or county that has included in its housing element a program to provide units pursuant to subparagraph (A), (B), (C), (D), or (E) of paragraph (2) shall report in writing to the legislative body, and to the department within 30 days of making its report to the legislative body, on its progress in providing units pursuant to this subdivision. The report shall identify the specific units for which committed assistance has been provided or which have been made available to lower income households, and it shall adequately document how each unit complies with this subdivision. If, by the end of the third year of the planning period, the city or county has not entered into an enforceable agreement of committed assistance for all units specified in the programs adopted pursuant to subparagraph (A), (B), (C), (D), or (E) of paragraph (2), the city or county shall, not later than the end of the fourth year of the planning period, adopt an amended housing element in accordance with Section 65585, identifying additional adequate sites pursuant to paragraph (1) of subdivision (c) of Section 65583 sufficient to accommodate the number of units for which committed assistance was not provided. If a city or county does not amend its housing element to identify adequate sites to address any shortfall, or fails to complete the rehabilitation, acquisition, purchase of affordability covenants, or the preservation of any housing unit within two years after committed assistance was provided to that unit, it shall be prohibited from identifying units pursuant to subparagraph (A), (B), (C), (D), or (E) of paragraph (2) in the housing element that it adopts for the next planning period, as defined in Section 65588, above the number of units actually provided or preserved due to committed assistance.
(d)A city or county may reduce its share of the regional housing need by the number of units built between the start of the projection period and the deadline for adoption of the housing element. If the city or county reduces its share pursuant to this subdivision, the city or county shall include in the housing element a description of the methodology for assigning those housing units to an income category based on actual or projected sales price, rent levels, or other mechanisms establishing affordability.
SEC. 4.Section 65583.2 of the Government Code, as amended by Section 6.5 of Chapter 282 of the Statutes of 2024, is amended to read:65583.2.(a)A citys or countys inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites throughout the community, consistent with paragraph (10) of subdivision (c) of Section 65583, that can be developed for housing within the planning period and period, that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 65584, and that are distributed throughout the community in a manner that affirmatively furthers fair housing. As used in this section, land suitable for residential development includes all of the following sites that meet the standards set forth in subdivisions (c) and (g):
(1)Vacant sites zoned for residential use.
(2)Vacant sites zoned for nonresidential use that allows residential development.
(3)Residentially zoned sites that are capable of being developed at a higher density, including sites owned or leased by a city, county, or city and county.
(4)Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, rezoned for, to permit residential use, including sites owned or leased by a city, county, or city and county.
(b)The inventory of land shall include all of the following:
(1)A listing of properties by assessor parcel number.
(2)The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.
(3)For nonvacant sites, a description of the existing use of each property. If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(4)A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation for which has been made available to the jurisdiction. This information need not be identified on a site-specific basis.
(5)(A)A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities.
(B)Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory.
(6)Sites identified as available for housing for above moderate-income households in areas not served by public sewer systems. This information need not be identified on a site-specific basis.
(7)A map that shows the location of the sites included in the inventory, such as the land use map from the jurisdictions general plan, for reference purposes only.
(c)Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the localitys housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning by the applicable deadline for rezoning set forth in subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households. An unincorporated area in a nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall not be subject to the requirements of this subdivision to allow residential use by right. The analysis shall determine whether the inventory can provide for a variety of types of housing, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing, and whether the inventory affirmatively furthers fair housing. The city or county shall determine the number of housing units that can be accommodated on each site as follows:
(1)If local law or regulations require the development of a site at a minimum density, the department shall accept the planning agencys calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.
(2)The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvements requirement identified in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.
(A)A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing.
(B)A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, site means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.
(C)A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
(3)For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or county shall do either of the following:
(A)Provide an analysis demonstrating how the adopted densities accommodate this need. The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.
(B)The following densities shall be deemed appropriate to accommodate housing for lower income households:
(i)For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre.
(ii)For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre.
(iii)For a suburban jurisdiction: sites allowing at least 20 units per acre.
(iv)For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.
(4)(A)For a metropolitan jurisdiction:
(i)At least 25 percent of the jurisdictions share of the regional housing need for moderate-income housing shall be allocated to sites with zoning that allows at least four units of housing, but not more than 100 units per acre of housing.
(ii)At least 25 percent of the jurisdictions share of the regional housing need for above moderate-income housing shall be allocated to sites with zoning that allows at least 4 units of housing.
(B)The allocation of moderate-income and above moderate-income housing to sites pursuant to this paragraph shall not be a basis for the jurisdiction to do either of the following:
(i)Deny a project that does not comply with the allocation.
(ii)Impose a price minimum, price maximum, price control, or any other exaction or condition of approval in lieu thereof. This clause does not prohibit a jurisdiction from imposing any price minimum, price maximum, price control, exaction, or condition in lieu thereof, pursuant to any other law.
(iii)The provisions of this subparagraph do not constitute a change in, but are declaratory of, existing law with regard to the allocation of sites pursuant to this section.
(C)This paragraph does not apply to an unincorporated area.
(D)For purposes of this paragraph:
(i)Housing development project has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.
(ii)Unit of housing does not include an accessory dwelling unit or junior accessory dwelling unit that could be approved pursuant to Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 or through a local ordinance or other provision implementing either of those articles. This paragraph shall not limit the ability of a local government to count the actual production of accessory dwelling units or junior accessory dwelling units in an annual progress report submitted pursuant to Section 65400 or other progress report as determined by the department.
(E)Nothing in this subdivision shall preclude the subdivision of a parcel, provided that the subdivision is subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)) or any other applicable law authorizing the subdivision of land.
(d)For purposes of this section, a metropolitan county, nonmetropolitan county, and nonmetropolitan county with a micropolitan area shall be as determined by the United States Census Bureau. A nonmetropolitan county with a micropolitan area includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada, Tehama, and Tuolumne and other counties as may be determined by the United States Census Bureau to be nonmetropolitan counties with micropolitan areas in the future.
(e)(1)Except as provided in paragraph (2), a jurisdiction shall be considered suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdictions population is greater than 100,000, in which case it shall be considered metropolitan. A county, not including the City and County of San Francisco, shall be considered suburban unless the county is in an MSA of 2,000,000 or greater in population, in which case the county shall be considered metropolitan.
(2)(A)(i)Notwithstanding paragraph (1), if a county that is in the San Francisco-Oakland-Fremont California MSA has a population of less than 400,000, that county shall be considered suburban. If this county includes an incorporated city that has a population of less than 100,000, this city shall also be considered suburban. This paragraph shall apply to a housing element revision cycle, as described in subparagraph (A) of paragraph (3) of subdivision (e) of Section 65588, that is in effect from July 1, 2014, to December 31, 2028, inclusive.
(ii)A county subject to this subparagraph shall utilize the sum existing in the countys housing trust fund as of June 30, 2013, for the development and preservation of housing affordable to low- and very low income households.
(B)A jurisdiction that is classified as suburban pursuant to this paragraph shall report to the Assembly Committee on Housing and Community Development, the Senate Committee on Housing, and the Department of Housing and Community Development regarding its progress in developing low- and very low income housing consistent with the requirements of Section 65400. The report shall be provided three times: once, on or before December 31, 2019, which report shall address the initial four years of the housing element cycle, a second time, on or before December 31, 2023, which report shall address the subsequent four years of the housing element cycle, and a third time, on or before December 31, 2027, which report shall address the subsequent four years of the housing element cycle and the cycle as a whole. The reports shall be provided consistent with the requirements of Section 9795.
(f)A jurisdiction shall be considered metropolitan if the jurisdiction does not meet the requirements for suburban area above and is located in an MSA of 2,000,000 or greater in population, unless that jurisdictions population is less than 25,000 in which case it shall be considered suburban.
(g)(1)For sites described in paragraph (3) of subdivision (b), the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the citys or countys past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.
(2)In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.
(3)Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entitys valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site. Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915.
(h)(1)A city or county shall ensure that the sites identified pursuant to subdivision (c) are distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing residential segregation. This determination shall be based on whether the sites identified to accommodate the lower income share of the regional housing need and the sites identified to accommodate the total regional housing need, taking into account the number of units specified to be accommodated on each site pursuant to subdivision (c), are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
(2)(A)By no later than April 1, 2027, the department shall develop and publish an online tool that shall serve as the method for determining whether each citys or countys identification of sites adequate to accommodate its share of the regional housing need at all income levels that meets the requirement in paragraph (1).
(B)The department may grant an adjustment to the requirement in paragraph (1) if underlying data for the jurisdiction renders the tool unreliable.
(h)(i)(1)The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for lower income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period.
(2)These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c), and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the lower income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the lower income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.
(i)(j)For purposes of this section and Section 65583, the phrase use by right shall mean that the local governments review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that use by right does not exempt the use from design review. However, that design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.
(j)(k)Notwithstanding any other provision of this section, within one-half mile of a Sonoma-Marin Area Rail Transit station, housing density requirements in place on June 30, 2014, shall apply.
(k)(l)For purposes of subdivisions (a) and (b), the department shall provide guidance to local governments to properly survey, detail, and account for sites listed pursuant to Section 65585.
(l)(m)(1)The changes to this section made by Chapter 193 of the Statutes of 2020 shall become operative on January 1, 2022.
(2)The changes to this section made by Chapter 193 of the Statutes of 2020 shall not apply to a housing element revision that is originally due on or before January 1, 2022, regardless of the date of adoption by the local agency.
(m)(n)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 5.Section 65583.2 of the Government Code, as amended by Section 7.5 of Chapter 282 of the Statutes of 2024, is amended to read:65583.2.(a)A citys or countys inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be used to identify sites throughout the community, consistent with paragraph (10) of subdivision (c) of Section 65583, that can be developed for housing within the planning period and period, that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 65584, and that are distributed throughout the community in a manner that affirmatively furthers fair housing. As used in this section, land suitable for residential development includes all of the following sites that meet the standards set forth in subdivisions (c) and (g):
(1)Vacant sites zoned for residential use.
(2)Vacant sites zoned for nonresidential use that allows residential development.
(3)Residentially zoned sites that are capable of being developed at a higher density, and sites owned or leased by a city, county, or city and county.
(4)Sites zoned for nonresidential use that can be redeveloped for residential use, and for which the housing element includes a program to rezone the site, as necessary, to permit residential use, including sites owned or leased by a city, county, or city and county.
(b)The inventory of land shall include all of the following:
(1)A listing of properties by assessor parcel number.
(2)The size of each property listed pursuant to paragraph (1), and the general plan designation and zoning of each property.
(3)For nonvacant sites, a description of the existing use of each property. If a site subject to this paragraph is owned by the city or county, the description shall also include whether there are any plans to dispose of the property during the planning period and how the city or county will comply with Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(4)A general description of any environmental constraints to the development of housing within the jurisdiction, the documentation for which has been made available to the jurisdiction. This information need not be identified on a site-specific basis.
(5)(A)A description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities.
(B)Parcels included in the inventory must have sufficient water, sewer, and dry utilities supply available and accessible to support housing development or be included in an existing general plan program or other mandatory program or plan, including a program or plan of a public or private entity providing water or sewer service, to secure sufficient water, sewer, and dry utilities supply to support housing development. This paragraph does not impose any additional duty on the city or county to construct, finance, or otherwise provide water, sewer, or dry utilities to parcels included in the inventory.
(6)Sites identified as available for housing for above moderate-income households in areas not served by public sewer systems. This information need not be identified on a site-specific basis.
(7)A map that shows the location of the sites included in the inventory, such as the land use map from the jurisdictions general plan for reference purposes only.
(c)Based on the information provided in subdivision (b), a city or county shall determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as determined pursuant to Section 65584. The inventory shall specify for each site the number of units that can realistically be accommodated on that site and whether the site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing. A nonvacant site identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a vacant site that has been included in two or more consecutive planning periods that was not approved to develop a portion of the localitys housing need shall not be deemed adequate to accommodate a portion of the housing need for lower income households that must be accommodated in the current housing element planning period unless the site is zoned at residential densities consistent with paragraph (3) of this subdivision and the site is subject to a program in the housing element requiring rezoning by the applicable deadline for rezoning set forth in subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 to allow residential use by right for housing developments in which at least 20 percent of the units are affordable to lower income households. An unincorporated area in a nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3) shall not be subject to the requirements of this subdivision to allow residential use by right. The analysis shall determine whether the inventory can provide for a variety of types of housing, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing, and whether the inventory affirmatively furthers fair housing. The city or county shall determine the number of housing units that can be accommodated on each site as follows:
(1)If local law or regulations require the development of a site at a minimum density, the department shall accept the planning agencys calculation of the total housing unit capacity on that site based on the established minimum density. If the city or county does not adopt a law or regulation requiring the development of a site at a minimum density, then it shall demonstrate how the number of units determined for that site pursuant to this subdivision will be accommodated.
(2)The number of units calculated pursuant to paragraph (1) shall be adjusted as necessary, based on the land use controls and site improvements requirement identified in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity for the site, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.
(A)A site smaller than half an acre shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site is adequate to accommodate lower income housing.
(B)A site larger than 10 acres shall not be deemed adequate to accommodate lower income housing need unless the locality can demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower income housing units as projected for the site or unless the locality provides other evidence to the department that the site can be developed as lower income housing. For purposes of this subparagraph, site means that portion of a parcel or parcels designated to accommodate lower income housing needs pursuant to this subdivision.
(C)A site may be presumed to be realistic for development to accommodate lower income housing need if, at the time of the adoption of the housing element, a development affordable to lower income households has been proposed and approved for development on the site.
(3)For the number of units calculated to accommodate its share of the regional housing need for lower income households pursuant to paragraph (2), a city or county shall do either of the following:
(A)Provide an analysis demonstrating how the adopted densities accommodate this need. The analysis shall include, but is not limited to, factors such as market demand, financial feasibility, or information based on development project experience within a zone or zones that provide housing for lower income households.
(B)The following densities shall be deemed appropriate to accommodate housing for lower income households:
(i)For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre.
(ii)For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre.
(iii)For a suburban jurisdiction: sites allowing at least 20 units per acre.
(iv)For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.
(4)(A)For a metropolitan jurisdiction:
(i)At least 25 percent of the jurisdictions share of the regional housing need for moderate-income housing shall be allocated to sites with zoning that allows at least four units of housing, but not more than 100 units per acre of housing.
(ii)At least 25 percent of the jurisdictions share of the regional housing need for above moderate-income housing shall be allocated to sites with zoning that allows at least 4 units of housing.
(B)The allocation of moderate-income and above moderate-income housing to sites pursuant to this paragraph shall not be a basis for the jurisdiction to do either of the following:
(i)Deny a project that does not comply with the allocation.
(ii)Impose a price minimum, price maximum, price control, or any other exaction or condition of approval in lieu thereof. This clause does not prohibit a jurisdiction from imposing any price minimum, price maximum, price control, exaction, or condition in lieu thereof, pursuant to any other law.
(iii)The provisions of this subparagraph do not constitute a change in, but are declaratory of, existing law with regard to the allocation of sites pursuant to this section.
(C)This paragraph does not apply to an unincorporated area.
(D)For purposes of this paragraph:
(i)Housing development project has the same meaning as defined in paragraph (2) of subdivision (h) of Section 65589.5.
(ii)Unit of housing does not include an accessory dwelling unit or junior accessory dwelling unit that could be approved pursuant to Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13 or through a local ordinance or other provision implementing either of those articles. This paragraph shall not limit the ability of a local government to count the actual production of accessory dwelling units or junior accessory dwelling units in an annual progress report submitted pursuant to Section 65400 or other progress report as determined by the department.
(E)Nothing in this subdivision shall preclude the subdivision of a parcel, provided that the subdivision is subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)) or any other applicable law authorizing the subdivision of land.
(d)For purposes of this section, a metropolitan county, nonmetropolitan county, and nonmetropolitan county with a micropolitan area shall be as determined by the United States Census Bureau. A nonmetropolitan county with a micropolitan area includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada, Tehama, and Tuolumne and other counties as may be determined by the United States Census Bureau to be nonmetropolitan counties with micropolitan areas in the future.
(e)A jurisdiction shall be considered suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdictions population is greater than 100,000, in which case it shall be considered metropolitan. A county, not including the City and County of San Francisco, shall be considered suburban unless the county is in an MSA of 2,000,000 or greater in population in which case the county shall be considered metropolitan.
(f)A jurisdiction shall be considered metropolitan if the jurisdiction does not meet the requirements for suburban area above and is located in an MSA of 2,000,000 or greater in population, unless that jurisdictions population is less than 25,000 in which case it shall be considered suburban.
(g)(1)For sites described in paragraph (3) of subdivision (b), the city or county shall specify the additional development potential for each site within the planning period and shall provide an explanation of the methodology used to determine the development potential. The methodology shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the citys or countys past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites.
(2)In addition to the analysis required in paragraph (1), when a city or county is relying on nonvacant sites described in paragraph (3) of subdivision (b) to accommodate 50 percent or more of its housing need for lower income households, the methodology used to determine additional development potential shall demonstrate that the existing use identified pursuant to paragraph (3) of subdivision (b) does not constitute an impediment to additional residential development during the period covered by the housing element. An existing use shall be presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period.
(3)Notwithstanding any other law, and in addition to the requirements in paragraphs (1) and (2), sites that currently have residential uses, or within the past five years have had residential uses that have been vacated or demolished, that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of low or very low income, subject to any other form of rent or price control through a public entitys valid exercise of its police power, or occupied by low- or very low income households, shall be subject to a policy requiring the replacement of all those units affordable to the same or lower income level as a condition of any development on the site. Replacement requirements shall be consistent with those set forth in paragraph (3) of subdivision (c) of Section 65915.
(h)(1)A city or county shall ensure that the sites identified pursuant to subdivision (c) are distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing residential segregation. This determination shall be based on whether the sites identified to accommodate the lower income share of the regional housing need and the sites identified to accommodate the total regional housing need, taking into account the number of units specified to be accommodated on each site pursuant to subdivision (c), are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
(2)(A)By no later than April 1, 2027, the department shall develop and publish an online tool that shall serve as the method for determining whether each city or countys identification of sites adequate to accommodate its share of the regional housing need at all income levels that meets the requirement in paragraph (1).
(B)The department may grant an adjustment to the requirement in paragraph (1) if underlying data for the jurisdiction renders the tool unreliable.
(h)(i)(1)The program required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall accommodate 100 percent of the need for housing for lower income households allocated pursuant to Section 65584 for which site capacity has not been identified in the inventory of sites pursuant to paragraph (3) of subdivision (a) on sites that shall be zoned to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lower income households during the planning period.
(2)These sites shall be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 16 units per acre in jurisdictions described in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least 20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph (B) of paragraph (3) of subdivision (c), and shall meet the standards set forth in subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the lower income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed uses are not permitted, except that a city or county may accommodate all of the lower income housing need on sites designated for mixed use if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project.
(i)(j)For purposes of this section and Section 65583, the phrase use by right shall mean that the local governments review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that use by right does not exempt the use from design review. However, that design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5.
(j)(k)For purposes of subdivisions (a) and (b), the department shall provide guidance to local governments to properly survey, detail, and account for sites listed pursuant to Section 65585.
(k)(l)This section shall become operative on December 31, 2028.
SEC. 2.SEC. 6.The Legislature finds and declares that Section 1 Sections 1 to 5, inclusive, of this act amending Section 65583 of Sections 65583, 65583.1, and 65583.2 of, and adding Section 65583.01 to, the Government Code addresses address a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 Sections 1 to 5, inclusive, of this act applies apply to all cities, including charter cities.
SEC. 3.SEC. 7.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The housing element shall contain all of the following:
(a)An assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs. The assessment and inventory shall include all of the following:
(1)An analysis of population and employment trends and documentation of projections and a quantification of the localitys existing and projected housing needs for all income levels. These existing and projected needs shall include the localitys share of the regional housing need in accordance with Section 65584.
(2)An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition.
(3)An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the localitys housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites, and an analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing. housing, which shall demonstrate that the jurisdiction has accommodated a meaningful portion of its share of the regional housing need for lower income households on sites located in higher income, racially exclusive areas to the extent that those areas exist within the jurisdiction.
(4)(A)The identification of one or more zoning designations that allow residential uses, including mixed uses, where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit and that are suitable for residential uses. The identified zoning designations shall include sufficient sites meeting the requirements of subparagraph (H) with sufficient capacity, as described in subparagraph (I), to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zoning designation or designations that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zoning designation or designations with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zoning designations where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards that apply to emergency shelters are objective and encourage and facilitate the development of, or conversion to, emergency shelters.
(B)Emergency shelters shall only be subject to the following written, objective standards:
(i)The maximum number of beds or persons permitted to be served nightly by the facility.
(ii)Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.
(iii)The size and location of exterior and interior onsite waiting and client intake areas.
(iv)The provision of onsite management.
(v)The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
(vi)The length of stay.
(vii)Lighting.
(viii)Security during hours that the emergency shelter is in operation.
(C)For purposes of this paragraph, emergency shelter shall include other interim interventions, including, but not limited to, a navigation center, bridge housing, and respite or recuperative care.
(D)The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(E)If a local government has adopted written, objective standards pursuant to subparagraph (B), the local government shall include an analysis of the standards in the analysis of constraints pursuant to paragraph (5).
(F)A local government that can demonstrate, to the satisfaction of the department, the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdictions need and the needs of the other jurisdictions that are a part of the agreement for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zoning designation where new emergency shelters are allowed with a conditional use permit.
(G)A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zoning designations for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph.
(H)The zoning designation or designations where emergency shelters are allowed, as described in subparagraph (A), shall include sites that meet at least one of the following standards:
(i)Vacant sites zoned for residential use.
(ii)Vacant sites zoned for nonresidential use that allow residential development, if the local government can demonstrate how the sites with this zoning designation that are being used to satisfy the requirements of paragraph (1) are located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite.
(iii)Nonvacant sites zoned for residential use or for nonresidential use that allow residential development that are suitable for use as a shelter in the current planning period, or which can be redeveloped for use as a shelter in the current planning period. A nonvacant site with an existing use shall be presumed to impede emergency shelter development absent an analysis based on substantial evidence that the use is likely to be discontinued during the planning period. The analysis shall consider current market demand for the current uses, market conditions, and incentives or standards to encourage shelter development.
(I)The zoning designation or designations shall have sufficient sites meeting the requirements of subparagraph (H) to accommodate the need for shelters identified pursuant to paragraph (7). The number of people experiencing homelessness that can be accommodated on any site shall be demonstrated by dividing the square footage of the site by a minimum of 200 square feet per person, unless the locality can demonstrate that one or more shelters were developed on sites that have fewer square feet per person during the prior planning period or the locality provides similar evidence to the department demonstrating that the site can accommodate more people experiencing homelessness. Any standard applied pursuant to this subparagraph is intended only for calculating site capacity pursuant to this section, and shall not be construed as establishing a development standard applicable to the siting, development, or approval of a shelter.
(J)Notwithstanding subparagraph (H), a local government may accommodate the need for emergency shelters identified pursuant to paragraph (7) on sites owned by the local government if it demonstrates with substantial evidence that the sites will be made available for emergency shelter during the planning period, they are suitable for residential use, and the sites are located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite.
(5)An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees, and other exactions required of developers, local processing and permit procedures, historic preservation practices and policies and an assessment of how existing and proposed historic designations affect the localitys ability to meet its share of the housing need pursuant to paragraph (1), and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).
(6)An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a localitys share of the regional housing need in accordance with Section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the localitys planning for the development of housing for all income levels and the construction of that housing.
(7)(A)An analysis of any special housing needs, such as those of the elderly; persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; extremely low income households; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on the capacity necessary to accommodate the most recent homeless point-in-time count conducted before the start of the planning period, the need for emergency shelter based on number of beds available on a year-round and seasonal basis, the number of shelter beds that go unused on an average monthly basis within a one-year period, and the percentage of those in emergency shelters that move to permanent housing solutions. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. An analysis of special housing needs by a city or county may include an analysis of the need for frequent user coordinated care housing services.
(B)For the seventh and subsequent revisions of the housing element, the analysis required in subparagraph (A) shall also include an analysis of the housing needs of acutely and extremely low income households.
(8)An analysis of opportunities for energy conservation with respect to residential development. Cities and counties are encouraged to include weatherization and energy efficiency improvements as part of publicly subsidized housing rehabilitation projects. This may include energy efficiency measures that encompass the building envelope, its heating and cooling systems, and its electrical system.
(9)An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. Assisted housing developments, for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. Assisted housing developments shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916.
(A)The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use, and the total number of elderly and nonelderly units that could be lost from the localitys low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis.
(B)The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate.
(C)The analysis shall identify public and private nonprofit corporations known to the local government that have legal and managerial capacity to acquire and manage these housing developments.
(D)The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs that can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program that have not been legally obligated for other purposes and that could be available for use in preserving assisted housing developments.
(b)(1)A statement of the communitys goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing.
(2)It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the communitys ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category that can be constructed, rehabilitated, and conserved over a five-year time period.
(c)A program that sets forth a schedule of actions during the planning period, each with a timeline for implementation, that may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, the utilization of appropriate federal and state financing and subsidy programs when available, and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following:
(1)Identify 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 citys or countys share of the regional housing need for all income levels that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to affirmatively further fair housing and to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing.
(A)Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, or does not affirmatively further fair housing, a program for rezoning of those sites, subject to the following deadlines:
(i)For the adoption of the sixth revision of the housing element, jurisdictions with an eight-year housing element planning period pursuant to Section 65588, including adoption of minimum density and development standards or, for a jurisdiction in the coastal zone, any necessary local coastal program amendments related to land use designations, changes in intensity of land use, zoning ordinances, or zoning district maps, consistent with Sections 30512, 30512.2, 30513, and 30514 of the Public Resources Code, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (f). Notwithstanding the foregoing, for a local government that fails to adopt a housing element that the department has found to be in substantial compliance with this article within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards or, for a jurisdiction in the coastal zone, any necessary local coastal program amendments related to land use designations, changes in intensity of land use, zoning ordinances, or zoning district maps, consistent with Sections 30512, 30512.2, 30513, and 30514 of the Public Resources Code, shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
(ii)For adoption of the seventh and all subsequent revisions of the housing element, rezonings shall be completed no later than one year from the statutory deadline in Section 65588 for adoption of the housing element.
(iii)Notwithstanding clause (ii), for the adoption of the seventh and all subsequent revisions of the housing element, rezonings shall be completed no later than three years and 90 days after the statutory deadline in Section 65588 for adoption of the housing element, unless the deadline is extended pursuant to subdivision (f). This clause shall apply only if the local government complies with all of the following:
(I)The local government submits a draft element or draft amendment to the department for review pursuant to paragraph (1) of subdivision (b) of Section 65585 at least 90 days before the statutory deadline established in Section 65588 for adoption of the housing element.
(II)The local government receives from the department findings that the draft element or draft amendment substantially complies with this article pursuant to paragraph (3) of subdivision (b) of Section 65585 on or before the statutory deadline set forth in Section 65588 for adoption of the housing element.
(III)The local government adopts the draft element or draft amendment that the department found to substantially comply with this article no later than 120 days after the statutory deadline set forth in Section 65588.
(B)Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in Section 65583.2.
(C)Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households.
(2)(A)Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.
(B)For the seventh and subsequent revisions of the housing element, the program shall also assist in the development of adequate housing to meet the needs of acutely low income households.
(3)Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650).
(4)Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action.
(5)Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law.
(6)Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance.
(7)Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, accessory dwelling units has the same meaning as accessory dwelling unit as defined in subdivision (a) of Section 66313.
(8)Include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals.
(9)Include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.
(10)(A)Affirmatively further fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2. The program shall include an assessment of fair housing in the jurisdiction that shall include all of the following components:
(i)A summary of fair housing issues in the jurisdiction and an assessment of the jurisdictions fair housing enforcement and fair housing outreach capacity.
(ii)An analysis analysis, which shall be completed at least one year prior to the adoption deadline for the revision of the housing element, of available federal, state, and local data and knowledge knowledge, including meaningful consultation with members of protected classes and organizations representing their interests, to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis shall identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2) and Section 65008.
(iii)An assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified under clauses (i) and (ii).
(iv)An identification of the jurisdictions fair housing priorities and goals, giving highest priority to those factors identified in clause (iii) that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved.
(v)Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing, and protecting existing residents from displacement.
(B)A jurisdiction that completes or revises an assessment of fair housing pursuant to Subpart A (commencing with Section 5.150) of Part 5 of Subtitle A of Title 24 of the Code of Federal Regulations, as published in Volume 80 of the Federal Register, Number 136, page 42272, dated July 16, 2015, or an analysis of impediments to fair housing choice in accordance with the requirements of Section 91.225 of Title 24 of the Code of Federal Regulations in effect before August 17, 2015, may incorporate relevant portions of that assessment or revised assessment of fair housing or analysis or revised analysis of impediments to fair housing into its housing element.
(C)(i)The requirements of this paragraph shall apply to housing elements due to be revised pursuant to Section 65588 on or after January 1, 2021.
(ii)The assessment required pursuant to this paragraph shall be completed before the planning agency makes its first draft revision of a housing element available for public comment pursuant to subdivision (b) of Section 65585.
(D)(i)The department shall develop a standardized reporting format for programs and actions taken pursuant to this paragraph. The standardized reporting format shall enable the reporting of all of the assessment components listed in subparagraph (A) and, at a minimum, include all of the following fields:
(I)Timelines for implementation.
(II)Responsible party or parties.
(III)Resources committed from the local budget to affirmatively further fair housing.
(IV)Action areas.
(V)Potential impacts of the program.
(ii)A local government shall utilize the standardized report format developed pursuant to this subparagraph for the seventh and each subsequent revision of the housing element.
(d)(1)A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period.
(2)The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit toward its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element.
(3)Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following:
(A)How the joint facility will meet the jurisdictions emergency shelter need.
(B)The jurisdictions contribution to the facility for both the development and ongoing operation and management of the facility.
(C)The amount and source of the funding that the jurisdiction contributes to the facility.
(4)The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter.
(e)Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following:
(1)A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section.
(2)Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02.
(f)The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the units for lower income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exists:
(1)The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state, federal, or local agency.
(2)The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints.
(3)The local government must undertake a major revision to its general plan in order to accommodate the housing-related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080.
The resolution and the findings shall be transmitted to the department together with a detailed budget and schedule for preparation and adoption of the required rezonings, including plans for citizen participation and expected interim action. The schedule shall provide for adoption of the required rezoning within one year of the adoption of the resolution.
(g)(1)If a local government fails to complete the rezoning by the deadline provided in subparagraph (A) of paragraph (1) of subdivision (c), as it may be extended pursuant to subdivision (f), except as provided in paragraph (2), a local government may not disapprove a housing development project, nor require a conditional use permit, planned unit development permit, or other locally imposed discretionary permit, or impose a condition that would render the project infeasible, if the housing development project, (A) is proposed to be located on a site required to be rezoned pursuant to the program action required by that subparagraph and, (B) complies with applicable, objective general plan and zoning standards and criteria, including design review standards, described in the program action required by that subparagraph. Any subdivision of sites shall be subject to the Subdivision Map Act (Division 2 (commencing with Section 66410)). Design review shall not constitute a project for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(2)A local government may disapprove a housing development described in paragraph (1) if it makes written findings supported by substantial evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(3)The applicant or any interested person may bring an action to enforce this subdivision. If a court finds that the local agency disapproved a project or conditioned its approval in violation of this subdivision, the court shall issue an order or judgment compelling compliance within 60 days. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders to ensure that the purposes and policies of this subdivision are fulfilled. In any such action, the city, county, or city and county shall bear the burden of proof.
(4)For purposes of this subdivision, housing development project means a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49 percent of the housing units for very low, low-, and moderate-income households with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, respectively, for the period required by the applicable financing.
(h)An action to enforce the program actions of the housing element shall be brought pursuant to Section 1085 of the Code of Civil Procedure.
(i)Notwithstanding any other law, the otherwise applicable timeframe set forth in paragraph (2) of subdivision (b) and subdivision (d) of Section 21080.3.1 of the Public Resources Code, and paragraph (3) of subdivision (d) of Section 21082.3 of the Public Resources Code, for a Native American tribe to respond to a lead agency and request consultation in writing is extended by 30 days for any housing development project application determined or deemed to be complete on or after March 4, 2020, and prior to December 31, 2021.
(j)On or after January 1, 2024, at the discretion of the department, the analysis of government constraints pursuant to paragraph (5) of subdivision (a) may include an analysis of constraints upon the maintenance, improvement, or development of housing for persons with a characteristic identified in subdivision (b) of Section 51 of the Civil Code. The implementation of this subdivision is contingent upon an appropriation by the Legislature in the annual Budget Act or another statute for this purpose.
SEC. 2.The Legislature finds and declares that Section 1 of this act amending Section 65583 of the Government Code addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act applies to all cities, including charter cities.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
|
Date
|
Status
|
|---|---|
| Aug 13, 2026 | In committee: Held under submission. |
| Aug 10, 2026 | In committee: Referred to APPR. suspense file. |
| Jul 14, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jul 2, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 2.) (July 1). Re-referred to Com. on APPR. |
| Jun 23, 2025 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HOUSING. |
| Jun 18, 2025 | Referred to Com. on HOUSING. |
| Jun 4, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 3, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 13. Page 1984.) |
| May 27, 2025 | Read second time. Ordered to third reading. |
| May 23, 2025 | From committee: Do pass. (Ayes 11. Noes 2.) (May 23). |
| May 21, 2025 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 21, 2025 | Joint Rule 62(a), file notice suspended. (Page 1627.) |
| May 14, 2025 | In committee: Hearing postponed by committee. |
| May 1, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 30). Re-referred to Com. on APPR. |
| Apr 30, 2025 | From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 9. Noes 1.) (April 30). Re-referred to Com. on L. GOV. |
| Apr 24, 2025 | Assembly Rule 56 suspended. (Page 1265.) |
| Apr 24, 2025 | (Pending re-refer to Com. on L. GOV.) |
| Apr 22, 2025 | Re-referred to Com. on H. & C.D. |
| Apr 21, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. |
| Apr 16, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Mar 10, 2025 | Referred to Coms. on H. & C.D. and L. GOV. |
| Feb 20, 2025 | From printer. May be heard in committee March 22. |
| Feb 19, 2025 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 10, 2026 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2025 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Housing |
Passed |
|
| Jun 3, 2025 | AB 906 Mark González Assembly Third Reading | Assembly Floor |
Passed |
|
| May 23, 2025 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 30, 2025 | Do pass and be re-referred to the Committee on [Local Government] | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Apr 30, 2025 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| ACCE Action | ** Support | |
| Act-La | ** Support | |
| All Home | ** Support | |
| Alliance For Community Transit-Los Angeles | ** Support | |
| Association Of Regional Center Agencies | ** Support | |
| California Housing Partnership | ** Support | |
| California Rural Legal Assistance Foundation | ** Support | |
| Communities for a Better Environment | ** Support | |
| Courage California | ** Support | |
| East Bay Housing Organizations | ** Support | |
| East Bay YIMBY | ** Support | |
| East Yard Communities for Environmental Justice | ** Support | |
| Grow the Richmond | ** Support | |
| Housing Action Coalition | ** Support | |
| Housing California | ** Support | |
| Inner City Law Center | ** Support | |
| Leadership Council for Justice and Accountability | ** Support | |
| LeadingAge California | ** Support | |
| League Of California Cities | ** Against | |
| Legal Aid of Sonoma County | ** Support | |
| Long Beach Forward | ** Support | |
| Los Angeles Alliance for a New Economy | ** Support | |
| Los Angeles Neighborhood Land Trust | ** Support | |
| Mountain View YIMBY | ** Support | |
| Napa-Solano for Everyone | ** Support | |
| National Housing Law Project | ** Support | |
| Northern Neighbors | ** Support | |
| Our Future Los Angeles | ** Support | |
| Peninsula for Everyone | ** Support | |
| PolicyLink | ** Support | |
| Public Advocates | ** Support | |
| Public Counsel | ** Support | |
| Rise Economy | ** Support | |
| Santa Cruz Yimby | ** Support | |
| Santa Rosa Yimby | ** Support | |
| Sf Yimby | ** Support | |
| South Bay Yimby | ** Support | |
| South Pasadena Residents for Responsible Growth | ** Support | |
| Strategic Actions for a Just Economy | ** Support | |
| United Way of Greater Los Angeles | ** Support | |
| Ventura County YIMBY | ** Support | |
| Yimby Action | ** Support | |
| YIMBY LA | ** Support | |
| Yimby SLO | ** Support |
SENATE COMMITTEE ON
Senator Sabrina Cervantes, Chair
2025 - 2026 Regular Session
AB 906 (Mark González) - Planning and zoning: housing elements: affirmatively furthering fair housing
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 906 would make numerous changes to the requirements for cities and counties to ensure components of the housing element planning activities “affirmatively further fair housing” (AFFH), as specified.
Fiscal Impact:
- The Department of Housing and Community Development estimates first year costs of approximately $2.28 million in the first year, and $1.53 million annually ongoing thereafter for 7.0 PY of staff to develop a standard AFFH template, update guidance, create a public-facing AFFH compliance database, conduct a projected 500 to 1,000 additional reviews each year, and provide additional technical assistance to local agencies. First year costs noted above include approximately $750,000 in one-time contracting costs to develop the online compliance tool. (General Fund)
- The bill could also result in unknown, but potentially significant costs to local agencies to identify additional housing sites after the housing element has been certified, and for other workload related to the preparation of the housing element. These costs are not state-reimbursable because local agencies can adjust planning and development fees to cover the administrative costs associated with new planning mandates. (local funds)
Background:
:
Existing law requires cities and counties to prepare a general plan comprised of seven mandatory elements, including a housing element that includes an identification of existing and projected housing needs. The housing element must include an inventory of land suitable for residential development, which is used to identify sites that can be developed for housing within the planning period that is sufficient to meet the regional housing needs for all income levels and to AFFH. Housing elements must be updated every eight years in urban areas, and every five years in more rural areas.
The regional housing needs assessment (RHNA) process is composed of three main stages: (1) development of regional housing need estimates by HCD and the Department of Finance (DOF), in consultation with regional councils of governments (COGs); (2) allocation of housing within each region by the COGs, or by HCD in an area not within a COG; and (3) incorporation of RHNA allocations into city and county housing elements. If the city or county does not have enough sites within its existing inventory of residentially zoned land to accommodate its share of the regional housing needs, it must adopt a program to rezone land within the first three years of the planning period. Every city and county must submit an annual progress report by April 1 of each year to HCD and the Governor’s Office of Planning and Research on its implementation and progress towards meeting its RHNA amount and removing governmental obstacles to housing development, among other things.
The housing element must include a program of actions the local agency will take during the planning period to make adequate provision for the housing needs of all economic segments of a community. Each jurisdiction must establish an inventory of sites designated for new housing that is sufficient to accommodate its fair share, after performing an AFFH analysis of those sites. Where a community does not already contain the existing capacity to accommodate its fair share of housing, it must undertake a rezoning program to accommodate the housing planned for in the housing element. including an assessment of fair housing in the jurisdictions. The requirement to AFFH requires each jurisdiction to perform an assessment that includes specified components, including an identification of the jurisdiction’s fair housing priorities and goals, metrics and milestones for determining what fair housing results will be achieved via the housing element, and strategies and actions to implement those priorities and goals. The goals may include enhancing mobility strategies, encouraging development of new affordable housing in opportunity areas, preserving existing affordable housing, protecting residents from displacement, and place-based strategies to encourage community revitalization.
Proposed Law:
AB 906 would make a number of changes to the AFFH requirements related to the housing element planning process. Among other things, this bill would:
- Require a local government’s housing element to ensure that the sites designated to accommodate the jurisdiction’s share of the RHNA at all income levels, after any required rezoning for meeting the needs of 100% of the housing for lower income households, are distributed throughout the jurisdiction in a manner that AFFH.
- Require a local government, if its identified sites to accommodate its share of RHNA do not AFFH, to include a program in their housing element for rezoning of those sites, subject to specified deadlines, as specified.
- Require a local government to demonstrate that sites identified to accommodate its RHNA after any rezoning program will AFFH.
- Recast existing provisions requiring a local government’s housing element program to include an assessment of fair housing in the jurisdiction, and add new requirements to the program to AFFH, as specified.
- Require a jurisdiction, after completing a draft fair housing assessment and before making the first draft revision of the housing element available for public comment, to make the draft assessment available to solicit public comments and seek input on specified information, for at least 90 days.
- Require a jurisdiction to include both the fair housing assessment and specified additional information based on any input received pursuant to meaningful consultation in the first draft revision of the housing element available for public comment.
- Modify the existing requirement for HCD to develop a standardized format for AFFH programs and actions by requiring the reporting format to describe specified strategies and actions, to address specified fair housing assessment components, and including a field for which fair housing priority a program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
- Limit the ability of a jurisdiction to include accessory dwelling units (ADUs) to count toward the requirement to identify adequate sites to accommodate the RHNA and to AFFH by requiring proof that ADUs developed in the previous planning period toward the lower income category have recorded deed restrictions, as specified.
- Require a jurisdiction’s inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction’s share of RHNA for all income levels and that are distributed throughout the community in compliance with the requirement that the distribution will AFFH.
- Require sites identified in that inventory to be distributed throughout the jurisdiction in a manner that AFFH by allowing for a reduction in residential segregation, based on a specified determination procedure.
- Require HCD, by April 1, 2027, to develop and publish an online tool that must serve as the method for determining whether each jurisdiction’s identification of sites adequate to accommodate its share of RHNA at all income levels that meets the distribution requirement specified above.
- Authorize HCD to grand an adjustment to the distribution requirement described above if underlying data for the jurisdictions renders the tool unreliable. HCD must include in its materials explaining the online tool, a procedure for applying for an adjustment the factors that HCD will consider in determining whether or not to grant the adjustment.
Related Legislation:
AB 2667 (Santiago), Chap. 277/2024, required HCD to develop a standardized reporting format for AFFH programs and actions and required local governments to make a draft inventory of sites available to HCD and the public at least 90 days prior to the initial adoption of ifs housing element update.
AB 1304 (Santiago), Chap. 357/2021, clarified that public agencies have a mandatory duty to comply with requirements to affirmatively further fair housing, and required cities and counties to include additional information in their housing elements relative to their AFFH duties, as specified.
AB 686 (Santiago), Chap. 958/2018, required a public agency to administer its programs and activities relating to housing and community development in a manner to affirmatively further fair housing, as specified. As part of this effort, the bill also required a city or county to include in its housing element an assessment of fair housing within its jurisdiction and to identify housing sites to affirmatively further fair housing.
Staff Comments:
The bill’s state-mandated local costs associated with the housing element requirements would not be subject to state reimbursement because local agencies have the authority to charge and adjust planning and permitting fees as necessary to cover administrative costs. Existing law authorizes planning and zoning fees to “include the costs reasonably necessary to prepare and revise the plans and policies that a local agency is required to adopt before it can make any necessary findings and determinations.” Case law and previous decisions by the Commission on State Mandates support the position that local governments’ planning costs are not reimbursable when the state imposes new planning mandates.
This bill requires HCD to develop and publish an online tool by April 1, 2027 to serve as the method for determining whether each jurisdiction’s identification of sites adequate to accommodate its share of RHNA at all income levels meets AFFH obligations. Staff notes that this date was included in the bill last year with the expectation that it would have been enacted and operative on January 1, 2026. The bill’s hearing was delayed at the author’s request last year, so it should be amended to push the deadline back to 2028 to provide adequate time for HCD to meet this requirement.
-- END --
SENATE COMMITTEE ON HOUSING
Senator Aisha Wahab, Chair
2025 - 2026 Regular
Bill No: AB 906 Hearing Date: 7/1/2025
Author: | Mark González | ||
Version: | 4/21/2025 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Alison Hughes/Erin Riches | ||
SUBJECT: Planning and zoning: housing elements: affirmatively furthering fair housing
DIGEST: This bill revises a number of components relating to the obligation for local governments to affirmatively further fair housing (AFFH) in their housing elements.
ANALYSIS:
Existing law:
- Provides that each community’s fair share of housing be determined through the Regional Housing Needs Determination (RHND)/Regional Housing Allocation (RHNA) process. The process is set out as follows: (a) Department of Finance and the Department of Housing and Community Development (HCD) develop RHNDs; (b) councils of government (COGs) allocate housing via RHNA within each region based on these determinations, and where a COG does not exist, HCD conducts the allocations; and (c) cities and counties incorporate these allocations into their housing elements.
- Requires each city and county to adopt a housing element, which must contain specified information, programs, and objectives, including:
- 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; 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 RHNA, among other things;
- 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
- 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 RHNA for each income level that could not be accommodated on sites identified in the sites inventory without rezoning, among other things.
- Requires the housing element to AFFH in accordance with specified law, and to include an assessment of fair housing in the jurisdiction that must include all of the following components:
- A summary of fair housing issues in the jurisdiction and an assessment of the jurisdiction’s fair housing enforcement and fair housing capacity;
- An analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The analysis must identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region, based on race and other characteristics protected by the California Fair Employment and Housing Act;
- An assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified, as specified;
- An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved;
- Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing and protecting existing residents from displacement.
- Requires HCD to develop a standardized reporting format for programs and actions taken under 2) above, which must be utilized for the seventh and each subsequent revision of the housing element, must enable the reporting of specified fair housing assessment components, and, at a minimum, include all of the following fields:
- Timelines for implementation;
- Responsible party or parties;
- Resources committed from the local budget to AFFH;
- Action areas; and
- Potential impacts of the program.
- Permits HCD to allow a jurisdiction to identify adequate sites for purposes of meeting RHNA by identifying sites for accessory dwelling units (ADUs) based on the number of ADUs developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors determined by HCD.
- Requires a jurisdiction’s inventory of land suitable for residential development, as specified, to be used to identify sites throughout the community, consistent with AFFH, that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction’s share of RHNA for all income levels.
- Requires a local government to submit a draft housing element revision or amendment to HCD at least 90 days prior to adoption of a revision of its housing element, as specified, or at least 60 days prior to the adoption of a subsequent amendment to the housing element.
This bill:
- Requires a local government’s housing element to ensure that the sites made available to accommodate the jurisdiction’s share of the regional housing need (RHNA) at all income levels after any required rezoning for meeting the needs of 100% of the housing for lower income households, are distributed throughout the jurisdiction in a manner that AFFH.
- Requires a local government, in instances where the sites identified under 1) above do not AFFH, as specified, to include a program in their housing element for rezoning of those sites, subject to specified deadlines.
- Requires a local government to demonstrate that sites identified to accommodate its RHNA after any rezoning program will AFFH.
- Recasts existing provisions requiring a local government’s housing element program to include an assessment of fair housing in the jurisdiction with specified provisions. Adds the following requirements to the AFFH program:
- Requires the assessment to include an analysis of disparities in access to opportunity for members of protected classes, as defined, including but not limited to access to educational, employment, and transportation opportunities, and access to a healthy environment;
- Requires the assessment to include an analysis of disparities in availability and quality of amenities and services for members of protected classes, including infrastructure, parks, maintenance and sanitation services, health services, grocery stores, and financial institutions;
- Requires the assessment to include an examination of the disproportionate housing needs of members of protected classes, including but not limited to displacement risk, evictions, cost burden, overcrowding, substandard housing, homelessness, risk related to climate disasters, and expiring covenants resulting in the loss of affordable housing;
- Requires the analysis to be prepared after meaningful consultation with members of protected classes and organizations representing their interests and defines “meaningful consultation” to mean taking proactive steps to outreach to and engage with members of protected classes, especially those harmed by the impact of historical discrimination in the jurisdiction and surrounding region, and organizations representing their interests, to solicit their participation and input throughout the development of the assessment;
- Requires a jurisdiction to conduct outreach and engagement under 4) e) above through a variety of methods, in languages commonly spoken by community members, and in an accessible format for people with disabilities as needed;
- Requires the jurisdiction to include in any drafts of the housing element and the final adopted housing element a description of its outreach under 4) f) above, a summary of comments received, and an explanation of how the comments were considered and incorporated or why they were rejected; and
- Requires the summary of fair housing issues in the jurisdiction to be based on specified analysis.
- An assessment of the jurisdiction’s fair housing enforcement and fair housing outreach capacity.
- Requires a jurisdiction, after completing a draft fair housing assessment and before making the first draft revision of the housing element available for public comment, to make the draft assessment available to solicit public comments and seek input on specified information, for at least 90 days.
- Requires a jurisdiction to include both of the following in the first draft revision of the housing element available for public comment as specified:
- The fair housing assessment under 4) above, including any revisions made in response to comments received under 5) above;
- Based on the assessment and any input received pursuant to the meaningful consultation required, as specified, all of the following:
- An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to addressing those issues and factors identified under 4) h) above that have been identified as priorities by members of protected classes and organizations representing their interest, limit access for members of protected classes to live in higher-income areas, limit access to opportunity, contribute to lack of investment in historically disadvantaged neighborhoods, or cause displacement of protected classes;
- An identification of the neighborhoods most in need of investment and the types of public and private investment required to meet the needs of members of protected classes without causing displacement of protected classes;
- Strategies and actions to implement the priorities and goals under i) above, including those that would make necessary investments in the areas identified under ii) above and those that would expand housing choice for members of protected classes. Requires jurisdictions to consider strategies that include but are not limited to, all of the following:
- Strategies to enable members of protected classes to live in the neighborhood of their choice;
- Strategies to encourage development of new affordable housing in both higher income neighborhoods and historically disinvested neighborhoods; and
- Strategies to encourage community revitalization in historically disinvested neighborhoods, including preservation of existing affordable housing, infrastructure, and other investments that enhance opportunity, remediation of environmental justice issues, and policies that protect existing residents and community-serving small businesses from displacement.
- The strategies and actions shall include both direct public actions and public actions that can attract private investment in disinvested neighborhoods.
- Modifies the existing requirement for HCD to develop a standardized reporting format for AFFH programs and actions by requiring the format to instead describe strategies and actions to be taken under 6) b) iii) above, requiring the format to address specified fair housing assessment components, and requiring the format to include a field for which fair housing priority a program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
- Limits the ability of a jurisdiction to include ADUs to count toward the requirement to identify adequate sites to accommodate the RHNA and to AFFH, by specifying that in order to count ADUs developed in the prior housing element period toward the lower income category, the jurisdiction must provide proof of a recorded deed restriction requiring the continued affordability of the unit for at least 55 years for rental housing and 30 years for ownership housing for lower income households.
- Requires a jurisdiction’s inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction’s share of RHNA for all income levels and that are distributed throughout the community in a manner that will AFFH.
- Requires sites identified in the inventory under 9) above to be distributed throughout the jurisdiction in a manner that AFFH by allowing for a reduction in residential segregation, and requires this determination to be based on whether the sites identified to accommodate the lower income RHNA and sites identified to accommodate the total RHNA, taking into account the number of units specified to be accommodated on each site, are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
- Requires HCD, no later than April 1, 2027, to develop and publish an online tool that must serve as the method for determining whether each jurisdiction’s identification of sites adequate to accommodate its share of RHNA at all income levels that meets the requirement in 10) above.
- Allows HCD to grant an adjustment to the requirement in 10) above if underlying data for the jurisdiction renders the tool unreliable. Requires HCD to include in its materials explaining the online tool, a procedure for applying for an adjustment the factors that HCD will consider in determining whether or not to grant the adjustment.
- Applies the provisions of this bill to all cities, including charter cities.
Background
Federal AFFH Rule. Since its enactment in 1968, the federal Fair Housing Act has directed the Department of Housing and Urban Development (HUD), other federal agencies, and program participants to affirmatively further the Act’s goals of promoting fair housing and equal opportunity. In 2015, the Obama Administration issued the AFFH Rule to clarify what it means to “affirmatively further fair housing.” The Rule incorporated an "Assessment of Fair Housing” process into broader existing planning processes to help HUD grantees identify issues such as fair housing issues pertaining to patterns of integration and segregation; racially and ethnically concentrated areas of poverty; disparities in access to opportunity; and disproportionate housing needs. HUD grantees were required to submit their Assessments to HUD or potentially lose HUD funding.
On January 5, 2018, under President Trump, HUD largely suspended the obligation to submit an Assessment, effectively postponing implementation of the AFFH Rule until 2025. In July 2020, the 2015 AFFH Rule was repealed.
On January 26, 2021, President Biden issued a memorandum directing HUD to examine the effect of the previous Administration’s actions against the AFFH Rule and the effect that it has had on HUD’s statutory duty to both ensure compliance with the Fair Housing Act and to affirmatively further fair housing. The memo also ordered HUD to take the necessary steps to implement the Fair Housing Act’s AFFH requirements and to prevent practices that have a disparate impact. On June 10, 2021, HUD published an interim final rule, which went into effect on July 31, 2021, to restore implementation of the AFFH Rule.
Under the second Trump Administration, HUD recently moved to repeal the 2021 provisions once again.
AFFH in California. California’s Fair Employment and Housing Act (FEHA) prohibits employment and housing discrimination based on the protected classes. FEHA further provides that it is a civil right to be able to pursue and maintain housing or employment without facing discrimination. If a dispute is not resolved, the Civil Rights Department may take legal action if evidence supports a finding of discrimination. In housing discrimination cases, an individual also has the right to file a lawsuit on their own behalf. While FEHA does not explicitly include an AFFH obligation, it does prohibit discrimination through public or private land use practices, decisions, and authorizations due to membership in a protected class. Discrimination includes restrictive covenants, zoning laws, details of use permits, and other actions authorized under the Planning and Zoning Law that make housing opportunities unavailable.
After the 2015 AFFH Rule was enacted, concerns arose about whether it would be preserved going forward. To address these concerns, in 2018 the Legislature passed and the Governor signed AB 686 (Santiago, Chapter 958), which established an AFFH framework at the state level. This framework remained in place when the Trump Administration repealed the AFFH Rule in 2020 and remains in place today pending re-repeal.
Comments
- Author’s statement. “California’s obligation to affirmatively further fair housing (AFFH) is a landmark law requiring public agencies to take proactive steps to combat segregation, expand housing choice for protected classes, and reduce disparities. AFFH is primarily implemented through the housing element process, which requires local jurisdictions to analyze fair housing issues, identify goals, commit to actions, and plan housing sites in a way that promotes equity. This bill strengthens AFFH requirements based on lessons from the sixth housing element cycle—the first to fully implement these provisions. Many jurisdictions concentrated lower-income housing sites in already disadvantaged areas, reinforcing segregation. To address this, the bill requires jurisdictions to distribute a meaningful share of lower-income housing in higher-income neighborhoods. It also responds to inconsistent or inadequate analysis of fair housing issues, especially around disinvestment and displacement, by requiring jurisdictions to address a defined set of fair housing concerns.”
- Adoption of housing elements. All of the state’s 539 cities and counties are required to appropriately plan for new housing 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 of the high population parts of the state, and five years in areas with smaller populations. Localities must adopt a legally valid housing element by their statutory deadline for adoption. Failure to do so can result in certain escalating penalties, including an accelerated deadline for completing rezoning, exposure to the “builder’s remedy,” public or private lawsuits, financial penalties, potential loss of permitting authority, or even court receivership.
Local governments have a statutory deadline to submit a housing element based on region. Ninety days before the deadline to adopt a housing element, localities must submit a draft to HCD. HCD is required to review the draft element within 90 days of receipt and provide written findings as to whether the draft amendment substantially complies with housing element law. If HCD finds that the draft element does not substantially comply with the law, the local agency may either make changes to the draft element to substantially comply with the law or adopt the element and make findings as to why it complies with the law despite the findings of the department. Following adoption of a housing element, a local agency submits it to HCD.
- Implementation of housing elements. Among other things, the housing element must demonstrate how the community plans to accommodate its share of its region’s RHNA. To do so, each community establishes an inventory of sites designated for new housing that is sufficient to accommodate its fair share. Where a community does not already contain the existing capacity to accommodate its fair share of housing, it must undertake a rezoning program to accommodate the housing planned for in the housing element. Depending on whether the jurisdiction met its statutory deadline for housing element adoption, it will have either one year (if it failed to meet the deadline) or three years (if it met the deadline) from its adoption deadline to complete that rezoning program.
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 it does not require 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 and harmful practices.
- Housing element AFFH obligations. Among other things, the housing element must demonstrate how the community plans to accommodate its share of its region’s housing needs and to AFFH. To do so, each community establishes an inventory of sites designated for new housing that is sufficient to accommodate its fair share, after performing an AFFH analysis of those sites. Where a community does not already contain the existing capacity to accommodate its fair share of housing, it must undertake a rezoning program to accommodate the housing planned for in the housing element. The requirement to AFFH also contains a mandate to perform an assessment of fair housing in the jurisdiction that has to include several components, including an identification of the jurisdiction’s fair housing priorities and goals, metrics and milestones for determining what fair housing results will be achieved via the housing element, and strategies and actions to implement those priorities and goals. The goals may include items like enhancing mobility strategies, encouraging development of new affordable housing in opportunity areas, preserving existing affordable housing, protecting residents from displacement, and place-based strategies to encourage community revitalization.
- Time for an update. According to the bill’s author and sponsors, improvements to AFFH requirements in housing elements are timely and needed because the seventh housing element cycle already has begun in some rural areas and adoption deadlines for the first seventh cycle housing elements in more populous areas start in 2028, with development of those elements likely to begin in 2026. Passing legislation in 2025 would allow time for HCD to update its AFFH guidance and provide clarity to jurisdictions about AFFH requirements before they begin the housing element update process. Further, just as when AB 686 (Santiago) was introduced, fair housing laws generally and AFFH specifically are under attack at the federal level.
This bill proposes a number of changes to AFFH requirements, as follows:
- Requires the housing element adequate sites inventory, after any rezoning to meet the needs of 100% of the housing needs for lower income households, to be distributed throughout the jurisdiction in a manner that AFFH;
- Provides that a rezoning program is required if the jurisdiction’s adequate sites are not distributed in a way that will AFFH, even if the jurisdiction identifies enough total sites to accommodate its RHNA share at all income levels;
- Clarifies that jurisdictions must complete the fair housing analysis and assessment, with community input, early in the housing element process so that it meaningfully serves as the basis for developing goals, strategies, actions, and the adequate sites inventory;
- Requires jurisdictions to analyze a more specific minimum list of common fair housing issues, including disinvestment, access to a healthy environment, and renter issues, and recasts those assessment provisions by moving them into a new code section;
- Requires HCD to develop and publish an online tool for determining whether the sites inventory meets AFFH requirements, authorizes HCD to grant an adjustment if underlying data for the jurisdiction renders the tool unreliable, and requires HCD to include in its materials a procedure for applying for an adjustment; and
- Limits jurisdictions’ ability to over-rely on ADUs as an AFFH strategy and to meet lower income RHNA obligations, in a way that does not disincentivize ADU production, by limiting the use of ADUs to count towards meeting lower income RHNA site requirements unless they are able to demonstrate ADUs in the prior planning period were deed-restricted at affordable levels for specified lengths of time.
- Opposition concerns. The League of California Cities objects to this bill’s requirement to identify new sites after the housing element is certified, if the sites inventory fails to meet AFFH requirements.
Related/Prior Legislation
AB 1304 (Santiago, Chapter 357, Statutes of 2021) — reaffirmed that the state, local jurisdictions, and public agencies involved in housing-related matters have a mandatory duty to take meaningful affirmative steps to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. The bill also provided additional details regarding what these entities must take into account when carrying out that duty to AFFH.
AB 686 (Santiago, Chapter 958, Statutes of 2018) — Required state departments and agencies, cities, counties, public housing authorities, and other public entities to AFFH in all of their housing and community development-related activities. In addition, the bill required cities and counties to undertake an AFFH analysis and meet other related requirements as part of the development of their housing elements.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
POSITIONS: (Communicated to the committee before noon on Wednesday, June 25, 2025.)
SUPPORT:
California Rural Legal Assistance Foundation (Co-Sponsor)
Housing California (Co-Sponsor)
Public Advocates (Co-Sponsor)
Strategic Actions for a Just Economy (Co-Sponsor)
Acce Action
Act-la
All Home
Association of Regional Center Agencies
California Housing Partnership
Communities for a Better Environment
Courage California
East Bay Housing Organizations
East Yard Communities for Environmental Justice
Housing Action Coalition
Inner City Law Center
Leadership Council for Justice and Accountability
Legal Aid of Sonoma County
Long Beach Forward
Los Angeles Alliance for a New Economy
Los Angeles Neighborhood Land Trust
National Housing Law Project
Our Future Los Angeles
Policylink
Public Counsel
Rise Economy
United Way of Greater Los Angeles
OPPOSITION:
League of California Cities
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 906
Author:(Mark González)
As Amended Ver:April 21, 2025
Majority vote
SUMMARY
Revises a number of components relating to the obligation for local governments to affirmatively further fair housing (AFFH) in housing elements.
Major Provisions
- Requires a local government's housing element to ensure that the sites designated to accommodate the jurisdiction's share of the regional housing need (RHNA) at all income levels after any required rezoning will AFFH, and that the distribution of sites across the jurisdiction will AFFH, as specified. In instances where the sites identified do not AFFH, requires a local government to include a program in their housing element for rezoning of additional sites, subject to specified deadlines, and requires a local government to demonstrate that sites after any rezoning program will AFFH.
- Recasts existing provisions requiring a local government's housing element program to include an assessment of fair housing in the jurisdiction with specified provisions. Adds the following requirements to the AFFH program:
- Requires the assessment to be completed and made publicly available at least one year prior to the adoption deadline of the next revision of the housing element;
- Requires the assessment to include an analysis of disparities in access to opportunity for members of protected classes, an analysis of disparities in availability and quality of amenities and services for protected classes, and an examination of the disproportionate housing needs of members of protected classes;
- Requires the analysis to be prepared after meaningful consultation with members of protected classes and organizations representing their interests, and defines "meaningful consultation," as specified;
- Requires a jurisdiction to conduct outreach and engagement through a variety of methods, in languages commonly spoken by community members, and in an accessible format for people with disabilities as needed; and
- Requires the jurisdiction to include in any drafts of the housing element and the final adopted housing element a description of its outreach, a summary of comments received, and an explanation of how the comments were considered and incorporated or why they were rejected.
- Requires a jurisdiction, after completing the fair housing assessment and before the first draft revision of the housing element, to solicit public comments on the assessment and seek input on specified information.
- Requires a jurisdiction to include both of the following in the first draft revision of the housing element available for public comment:
- The fair housing assessment, including any revisions made in response to comments;
- Based on the assessment and any input received pursuant to the meaningful consultation required, all of the following:
- An identification of the jurisdiction's fair housing priorities and goals, giving highest priority to addressing issues and factors identified as priorities by members of protected classes and organizations representing their interest, factors that limit access for members of protected classes to live in higher-income areas, limit access to opportunity, contribute to lack of investment in historically disadvantaged neighborhoods, or cause displacement of protected classes;
- An identification of the neighborhoods most in need of investment and the type of investment required to meet the needs of members of protected classes without causing displacement of protected classes;
- Strategies and actions to implement fair housing priorities and goals, including those that would make necessary investments in the areas identified under ii) above and those that would expand housing choice for members of protected classes; and
- An assessment of the jurisdiction's fair housing enforcement and fair housing outreach capacity.
- Modifies the existing requirement for the Department of Housing and Community Development (HCD) to develop a standardized reporting format for AFFH programs and actions by requiring the format to instead describe strategies and actions to be taken, requiring the format to address specified fair housing assessment components, and requiring the format to include a field for which fair housing priority a program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
- Limits the ability of a jurisdiction to include accessory dwelling units (ADUs) to count toward the requirement to identify adequate sites to accommodate the RHNA and to AFFH, by specifying that, in order to count ADUs developed in the prior housing element period toward the lower income sites category, the jurisdiction must provide proof of a recorded deed restriction requiring the continued affordability of an ADU for at least 55 years for rental housing and 30 years for ownership housing for lower income households.
- Requires a jurisdiction's inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction's share of RHNA for all income levels and that are distributed throughout the community in a manner that will AFFH.
- Requires a jurisdiction to ensure that sites identified in the inventory under 8) above are distributed throughout the jurisdiction in a manner that AFFH by reducing residential segregation, and requires this determination to be based on whether the sites identified to accommodate the lower income RHNA and sites identified to accommodate the total RHNA, taking into account the number of units specified to be accommodated on each site, are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
- Requires HCD, no later than April 1, 2027, to develop and publish an online tool that must serve as the method for determining whether each jurisdiction's identification of sites adequate to accommodate its share of RHNA at all income levels meets the requirement in 9) above. Allows HCD to grant an adjustment to the requirement if underlying data for the jurisdiction renders the tool unreliable.
- Applies the provisions of this bill to all cities, including charter cities.
COMMENTS
Federal AFFH Rule: Since its enactment in 1968, the federal Fair Housing Act has directed the Department of Housing and Urban Development (HUD), other federal agencies, and program participants to affirmatively further the Act's goals of promoting fair housing and equal opportunity. In 2015, the Obama Administration issued the AFFH Rule to clarify what it means to "affirmatively further fair housing." The Rule incorporated an "Assessment of Fair Housing" process into broader existing planning processes to help HUD grantees identify fair housing issues pertaining to patterns of integration and segregation; racially and ethnically concentrated areas of poverty; disparities in access to opportunity; and disproportionate housing needs. HUD grantees were required to submit their Assessments to HUD or potentially lose HUD funding. Subsequent presidential administrations repealed and then restored implementation of the AFFH Rule. The Trump Administration's HUD recently moved to repeal the rule once again.
AFFH in California: California's Fair Employment and Housing Act (FEHA) prohibits employment and housing discrimination based on the protected classes. FEHA further provides that it is a civil right to be able to pursue and maintain housing or employment without facing discrimination. While FEHA does not explicitly include an AFFH obligation, it does prohibit discrimination through public or private land use practices, decisions, and authorizations due to membership in a protected class. Discrimination includes restrictive covenants, zoning laws, details of use permits, and other actions authorized under the Planning and Zoning Law that make housing opportunities unavailable. After the 2015 AFFH Rule was enacted, concerns arose about whether it would be preserved going forward. To address these concerns, in 2018 the Legislature passed and the Governor signed AB 686 (Santiago), Chapter 958, Statutes of 2018 which established an AFFH framework at the state level. This framework remained in place when the Trump Administration repealed the AFFH Rule in 2020 and remains in place today pending re-repeal.
Adoption and Implementation of Housing Elements: All of the state's 539 cities and counties are required to appropriately plan for new housing 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 of the high population parts of the state, and five years in areas with smaller populations. Localities must adopt a legally valid housing element by their statutory deadline for adoption. Failure to do so can result in escalating penalties, including an accelerated deadline for completing rezoning, exposure to the "builder's remedy," 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 and preservation of desperately needed housing at all income levels. 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 and harmful practices.
Housing Element AFFH Obligations: Among other things, the housing element must demonstrate how the community plans to accommodate its share of its region's housing needs and to AFFH. To do so, each community establishes an inventory of sites designated for new housing that is sufficient to accommodate its fair share, after performing an AFFH analysis of those sites. Where a community does not already contain the existing capacity to accommodate its fair share of housing, it must undertake a rezoning program to accommodate the housing planned for in the housing element. The requirement to AFFH also contains a mandate to perform an assessment of fair housing in the jurisdiction that has to include several components, including an identification of the jurisdiction's fair housing priorities and goals, metrics and milestones for determining what fair housing results will be achieved via the housing element, and strategies and actions to implement those priorities and goals. The goals may include items like enhancing mobility strategies, encouraging development of new affordable housing in opportunity areas, preserving existing affordable housing, protecting residents from displacement, and place-based strategies to encourage community revitalization.
According to the bill's author and sponsors, improvements to AFFH requirements in housing elements are timely and needed because the seventh housing element cycle already has begun in some rural areas and adoption deadlines for the first seventh cycle housing elements in more populous areas start in 2028, with development of those elements likely to begin in 2026. Passing legislation in 2025 would allow time for HCD to update its AFFH guidance and provide clarity to jurisdictions about AFFH requirements before they begin the housing element update process. Further, just as when AB 686 (Santiago) was introduced, fair housing laws generally and AFFH specifically are under attack at the federal level.
This bill proposes a number of changes to AFFH requirements, as follows:
- Requires that to meet the AFFH obligation, the housing element adequate sites inventory must distribute a meaningful share of lower-income and multifamily sites across the relatively higher-income parts of a jurisdiction, and requires HCD to create or identify a research-backed metric to assess whether this requirement is met;
- Provides that a rezoning program is required if the jurisdiction's adequate sites are not distributed in a way that will AFFH, even if the jurisdiction identifies enough total sites to accommodate its RHNA share at all income levels;
- Clarifies that jurisdictions must complete the fair housing analysis and assessment, with community input, early in the housing element process so that it meaningfully serves as the basis for developing goals, strategies, actions, and the adequate sites inventory;
- Requires jurisdictions to analyze a more specific minimum list of common fair housing issues, including disinvestment, access to a healthy environment, and renter issues, and recasts those assessment provisions by moving them into a new code section; and
- Limits jurisdictions' ability to over-rely on ADUs as an AFFH strategy and to meet lower income RHNA obligations in a way that does not disincentivize ADU production by limiting the use of ADUs to count towards meeting lower income RHNA site requirements unless they are able to demonstrate ADUs in the prior planning period were deed-restricted at affordable levels for specified lengths of time.
Policy Considerations: Housing elements have become complex time- and resource-intensive planning documents and increasing the requirements for what must be included in these documents should be considered carefully in light of the strict timelines and requirements that govern their adoption. Other bills propose to change certain deadlines for developing the RHNA and housing elements and give various actors more time to prepare components of these documents. If bills relating to components of housing element law are to pass, it would be prudent to ensure that all bills operate on the same extended timelines to ensure successful implementation of the proposed policies.
According to the Author
"The obligation to affirmatively further fair housing (AFFH) is California's landmark law to expand fair housing choice for members of protected classes. AFFH requires all public agencies to take actions that reverse patterns of segregation, increase access to opportunity, and reduce housing disparities. AFFH requirements have been largely implemented through the housing element process, in which local jurisdictions must do a thorough analysis of fair housing issues, identify policy goals and commit to actions to achieve those goals, and identify potential housing sites to meet their share of the regional housing need in a way that reduces patterns of segregation and exclusion. This bill seeks to strengthen AFFH requirements in the housing element process based on lessons learned from the sixth housing element cycle, which was the first time jurisdictions implemented these provisions. Many jurisdictions concentrated the sites they identified for affordable housing in lower-income neighborhoods - thereby perpetuating patterns of segregation - so this bill requires that jurisdictions distribute a meaningful portion of their lower-income RHNA in higher-income neighborhoods. Additionally, analysis of fair housing issues and identification of policies to address them was not comprehensive or consistent across jurisdictions in the sixth cycle, particularly as it related to disinvestment and displacement, so this bill provides jurisdictions with a clear set of fair housing issues that they must analyze and set goals to address. Finally, some jurisdictions relied excessively on accessory dwelling units (ADUs) as an AFFH strategy in higher-income, exclusionary neighborhoods, so this bill ensures that jurisdictions can only count ADUs toward their lower-income RHNA goals if they can demonstrate past evidence of producing deed-restricted, affordable ADUs."
Arguments in Support
According to the California Rural Legal Assistance Foundation, Housing California, Public Advocates, and Strategic Actions for a Just Economy, the bill's cosponsors, "Although there have been successes with AFFH planning in the sixth housing element cycle, which was the first time that jurisdictions implemented these provisions, there are also areas where the law needs further refinement to ensure that California can fulfill the promise of AFFH. For example, some jurisdictions have not created meaningful opportunities for affordable housing development in higher-income single-family neighborhoods. Additionally, analysis of fair housing issues was not comprehensive or consistent across jurisdictions, particularly as it related to displacement and disinvestment, leading to a lack of meaningful policies to address these issues despite a clear legal obligation to do so. Finally, some jurisdictions relied excessively on accessory dwelling units (ADUs) as an AFFH strategy or to meet their lower-income regional housing needs allocation (RHNA) goals. AB 906 will improve, strengthen, and clarify housing element requirements to better ensure that jurisdictions are developing housing plans that will increase fair housing choice and opportunity for members of protected classes."
Arguments in Opposition
According to the League of California Cities, "[AB 906] adds language to housing element law that allows the Department of Housing and Community Development to certify a housing element when the inventory of sites accommodates a local jurisdiction's RHNA even though those sites are not distributed throughout the community in a manner that affirmatively furthers fair housing. Your measure requires a local jurisdiction to identify sites in the housing element that accommodate its RHNA and additional sites (after the housing element is certified) that affirmatively further fair housing. With respect, Cal Cities suggests that this is neither fair nor efficient. Cal Cities supports the efforts to affirmatively further fair housing as required by law but is concerned that this measure requires sites beyond a local agency's RHNA. Instead of requiring more sites, Cal Cities would prefer that HCD determine whether the chosen sites affirmatively further fair housing as part of its inventory review, instead of requiring new sites beyond the RHNA."
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- One-time General Fund costs to HCD, of an unknown amount, potentially in the hundreds of thousands of dollars, to develop a standardized reporting format and publish an online tool for local jurisdictions. At the time this analysis was prepared HCD had not provided its cost estimate to the committee.
- Costs of an unknown amount, but potentially significant, to local agencies to identify additional housing sites after the housing element has been certified and make other adjustments to the housing element process. These costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to offset increased costs associated with the provisions of this bill.
VOTES
ASM HOUSING AND COMMUNITY DEVELOPMENT: 9-1-2
YES: Haney, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Wicks, Wilson
NO: Patterson
ABS, ABST OR NV: Ta, Tangipa
ASM LOCAL GOVERNMENT: 8-0-2
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
ABS, ABST OR NV: Ta, Hoover
ASM APPROPRIATIONS: 11-2-2
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache
NO: Dixon, Tangipa
ABS, ABST OR NV: Sanchez, Ta
UPDATED
VERSION: April 21, 2025
CONSULTANT: Nicole Restmeyer / H. & C.D. / (916) 319-2085 FN: 0000621
Date of Hearing: May 21, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 906
Author:(Mark González) – As Amended Ver:April 21, 2025
Policy Committee: | Housing and Community Development | Vote: | 9 - 1 |
Local Government | 8 - 0 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill revises a number of housing element components relating to the obligation for local governments to “affirmatively further fair housing.”
Among its provisions, this bill:
- Requires a local government’s housing element to ensure that the sites designated to accommodate the jurisdiction’s share of the regional housing need (RHNA) at all income levels after any required rezoning will affirmatively further fair housing, and that the distribution of sites across the jurisdiction will affirmatively further fair housing, as specified.
- In instances where the sites identified under item 1, above, do not affirmatively further fair housing, as specified, requires the local government to include a program in its housing element to rezone those sites, subject to specified deadlines.
- Requires a local government to demonstrate that sites identified to accommodate its RHNA after any rezoning program will affirmatively further fair housing.
- Recasts existing provisions requiring a local government’s housing element program to include an assessment of fair housing in the jurisdiction, and adds new requirements to the program to affirmatively further fair housing.
- Requires a jurisdiction, before it issues the first draft revision of the housing element, to solicit public comments on the assessment and seek input on specified information.
- Limits the ability of a jurisdiction to count accessory dwelling units (ADUs) toward the requirement to identify adequate sites to accommodate the RHNA and to affirmatively further fair housing, as specified.
- Requires a jurisdiction’s inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction’s share of RHNA for all income levels and that are distributed throughout the community in a manner that will affirmatively further fair housing.
- Requires a jurisdiction to ensure that sites identified in the inventory under item 7, above, are distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing residential segregation, and requires this determination be based on whether the sites identified to accommodate the lower-income RHNA are located in relatively higher income areas of the jurisdiction, as specified.
- Requires HCD, by April 1, 2027, to develop and publish an online tool to serve as the method for determining whether each jurisdiction’s identification of sites adequate to accommodate its share of RHNA at all income levels meets the requirement in item 8, above.
FISCAL EFFECT:
- One-time General Fund costs to HCD, of an unknown amount, potentially in the hundreds of thousands of dollars, to develop a standardized reporting format and publish an online tool for local jurisdictions. At the time this analysis was prepared HCD had not provided its cost estimate to the committee.
- Costs of an unknown amount, but potentially significant, to local agencies to identify additional housing sites after the housing element has been certified and make other adjustments to the housing element process. These costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning and permitting fees to offset increased costs associated with the provisions of this bill.
COMMENTS:
- Purpose. According to the author:
Affirmatively furthering fair housing requires all public agencies to take actions that reverse patterns of segregation, increase access to opportunity, and reduce housing disparities. [These] requirements have been largely implemented through the housing element process, in which local jurisdictions must do a thorough analysis of fair housing issues, identify policy goals and commit to actions to achieve those goals, and identify potential housing sites to meet their share of the regional housing need in a way that reduces patterns of segregation and exclusion. This bill seeks to strengthen requirements to affirmatively further fair housing in the housing element process based on lessons learned from the sixth housing element cycle, which was the first time jurisdictions implemented these provisions.
- Background. Housing Element. Existing law requires each city and county to prepare a general plan that includes, among other things, a housing element detailing existing housing conditions within the jurisdiction, the need for new housing and the strategy the jurisdiction will use to address that need. Local governments must adopt a new housing element every eight years, although some rural jurisdictions must do so every five years. The state RHNA process establishes the amount of housing each local agency must plan for and includes allocations for all income levels.
Among other things, the housing element must demonstrate how the community plans to accommodate its share of its region’s housing needs and meet its duty to affirmatively further fair housing. To do so, each community establishes an inventory of sites designated for new housing that is sufficient to accommodate its fair share, after performing an affirmatively-furthering-fair-housing analysis of those sites. The requirement to affirmatively further fair housing also contains a mandate to perform an assessment of fair housing in the jurisdiction. The assessment must include several components, including an identification of the jurisdiction’s fair housing priorities and goals, metrics and milestones for determining what fair housing results will be achieved via the housing element, and strategies and actions to implement those priorities and goals.
This bill requires jurisdictions distribute a meaningful portion of lower-income and multifamily sites across the relatively higher-income parts of a jurisdiction, and requires HCD to create or identify a research-backed metric to assess whether this requirement is met. The bill also requires a rezoning program if the jurisdiction’s adequate sites are not distributed in a way that will affirmatively further fair housing, even if the jurisdiction identifies enough total sites to accommodate its RHNA share at all income levels.
- Arguments in Support. According to the California Rural Legal Assistance Foundation, Housing California, Public Advocates, and Strategic Actions for a Just Economy, cosponsors of the bill:
Although there have been successes with affirmatively furthering fair housing planning in the sixth housing element cycle, which was the first time that jurisdictions implemented these provisions, there are also areas where the law needs further refinement to ensure that California can fulfill this promise. [This bill] will improve, strengthen, and clarify housing element requirements to better ensure that jurisdictions are developing housing plans that will increase fair housing choice and opportunity for members of protected classes.
- Arguments in Opposition. According to the League of California Cities:
Cal Cities supports the efforts to affirmatively further fair housing as required by law but is concerned that this measure requires sites beyond a local agency’s RHNA. Instead of requiring more sites, Cal Cities would prefer that HCD determine whether the chosen sites affirmatively further fair housing as part of its inventory review, instead of requiring new sites beyond the RHNA.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 30, 2025
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
ABPCA Bill Id:AB 906 (
Author:Mark González) – As Amended Ver:April 21, 2025
SUBJECT: Planning and zoning: housing elements: affirmatively furthering fair housing
SUMMARY: Revises a number of components relating to the obligation for local governments to affirmatively further fair housing (AFFH) in housing elements. Specifically, this bill:
- Strikes provisions in existing Housing Element Law requiring an analysis of the relationship of the sites identified in the land inventory to the jurisdiction’s duty to affirmatively further fair housing.
- Requires the program that sets forth a schedule of action during the planning periods, each with a timeline for implementation, that a local government undertakes to implement the policies and achieves the goals of the housing element to do all of the following:
- Ensures that the distribution of sites across the jurisdiction affirmatively furthers fair housing, as specified. Requires sites to be designated to accommodate the city’s or county’s share of the regional housing need at all income levels after any required rezoning affirmatively furthers fair housing, as specified.
- Applies deadlines in existing law when the inventory of sites, as specified, does not include, instead of “identify” in existing law, adequate sites to accommodate the need for groups of all household income level, as specified, or where sites identified do not affirmatively further fair housing, as specified.
- Requires the program to identify sites that can be developed for housing within the planning period, as specified, when the inventory of sites does not include, instead of “identify”, adequate sites to accommodate the need for all household income levels or where the sites identified do not affirmatively further fair housing. Requires the jurisdiction to demonstrate that sites identified to accommodate the city’s or county’s share of the regional housing need at all income levels after required rezoning, as specified, will affirmatively further fair housing.
- Requires the program to provide for sufficient sites to meet the need for farmworker housing when the inventory of sites do not include, instead of identify, adequate sites to accommodate the need for farmworker housing.
- Strikes existing law that provides how an assessment of fair housing in the jurisdiction will be conducted and reported to HCD. Moves revises existing law to a new section of law created by this bill and is described in 4) below.
- Requires that, in addition to existing law defining affirmatively furthering fair housing and the responsibilities of public agencies in administering programs and activities relating to housing development, the program shall meet all of the following requirements:
- At least one year prior to the adoption deadline for the next revision of the housing element, the city or county shall complete and make publicly available an assessment that includes both of the following:
- An analysis of available federal, state, and local data and knowledge to identify and examine all of the following:
- Integration and segregation patterns and trends.
- Racially or ethnically concentrated areas of poverty and affluence.
- Disparities in access to opportunity for members of protected classes, including, but not limited to, access to educational, employment, and transportation opportunities, and access to a healthy environment.
- Disparities in availability and quality of amenities and services for members of protected classes, including infrastructure, parks, maintenance and sanitation services, health services, grocery stores, and financial institutions.
- Disproportionate housing needs of members of protected classes, including, but not limited to, displacement risk, evictions, cost burden, overcrowding, substandard housing, homelessness, risk related to climate disasters, and expiring covenants resulting in loss of affordable housing.
- Investment and disinvestment patterns and trends.
- The analysis shall be prepared after the jurisdiction conducts meaningful consultation, as specified, with members of protected classes and organizations representing their interests and shall identify and examine those patterns, trends, areas, disparities, and needs both within the jurisdiction and comparing the jurisdiction to the region in which it is located, based on race and other characteristics protected by existing fair housing law, as specified. The jurisdiction shall include in any drafts of the housing element and the final adopted housing element a description of its outreach, a summary of comments received, and an explanation of how the comments were considered and incorporated or why they were rejected.
- A summary of fair housing issues in the jurisdiction and an assessment of the contributing factors, including the local and regional historical origins and current policies and practices, that created and maintain the fair housing issues identified.
- An analysis of available federal, state, and local data and knowledge to identify and examine all of the following:
- Requires a city or county to solicit public comments on the assessment and seek input on, including through meaningful consultation with members of protected classes and organizations that represent their interests, the information required pursuant to i) and ii)of c) after completing the assessment described in a) above.
- Requires a city or county to include in the first draft revision of the housing element available for public comment, as specified, in both of the following:
- The assessment described in a) above, including any revisions made in response to comments pursuant to b) above.
- Based on the assessment and any input received pursuant to the meaningful consultation required pursuant to subdivision (b), all of the following:
- An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to addressing those issues and factors identified in a) i) of 4) that have been identified as priorities by members of protected classes and organizations representing their interests or are identified as issues that limit access for members of protected classes to higher income areas, limit access to opportunity, contribute to lack of investment in historically disadvantaged neighborhoods, or cause displacement of protected classes.
- An identification of the neighborhoods most in need of investment and the types of investment required to meet the needs of members of protected classes without causing displacement of protected classes.
- Strategies and actions to implement the priorities and goals identified in I), including those that would make necessary investments in the areas identified in II) and those that would expand housing choice for members of protected classes. Jurisdictions shall consider strategies that include, but are not limited to, all of the following:
- At least one year prior to the adoption deadline for the next revision of the housing element, the city or county shall complete and make publicly available an assessment that includes both of the following:
Strategies to enable members of protected classes to live in the neighborhood of their choice.
Strategies to encourage development of new affordable housing in both higher income neighborhoods and historically disinvested neighborhoods.
Strategies to encourage community revitalization in historically disinvested neighborhoods, including preservation of existing affordable housing, infrastructure, and other investments that enhance opportunity, remediation of environmental justice issues, and policies that protect existing residents and community-serving small businesses from displacement.
- An assessment of the jurisdiction’s fair housing enforcement and fair housing outreach capacity.
- Requires HCD to develop a standardized format for describing strategies and actions to be taken pursuant to III) of ii) of c) and requires local governments to use this format for the 7th cycle and every subsequent revision of the housing element. Requires the standardized format to address all of the assessment requirements in a) i) above and, at a minimum include all of the following:
- Timelines for implementation.
- Responsible party or parties.
- Resources committed from the local budget to affirmatively further fair housing.
- Action areas.
- Which fair housing priority the program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
- Defines the following terms:
- “Meaningful consultation” means taking proactive steps to outreach to and engage with members of protected classes, especially those harmed by the impact of historical discrimination in the jurisdiction and surrounding region, and organizations representing their interests, to solicit their participation and input throughout the development of the assessment described in a).
- “Members of protected classes” means persons with characteristics protected by the California Fair Employment and Housing Act and other state and federal fair housing and planning law, as specified.
- Requires a jurisdiction to provide proof of a recorded deed restriction requiring the continued affordability of the unit for at least 55 years for rental housing and 30 years for ownership housing for lower income households in order for those accessory dwelling units to count toward determining the number of sites for accessory dwelling units a jurisdiction can include in the lower income category.
- Requires a city’s or county’s inventory of land suitable for residential development to be used to identify sites that are distributed throughout the community in a manner that affirmatively furthers fair housing.
- Requires a city or county to ensure that the sites are distributed throughout the jurisdiction in a manner that affirmatively furthers fair housing by reducing residential segregation. This determination shall be based on whether the sites identified to accommodate the lower income share of the regional housing need and the sites identified to accommodate the total regional housing need, taking into account the number of units specified to be accommodated on each site, as specified, are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
- Requires HCD to develop and publish, no later than April 1, 2027, an online tool that shall serve as the method for determining whether each city’s or county’s identification of sites is adequate to accommodate its share of the regional housing need at all income levels that meets the requirement in 7). Allows HCD to grant an adjustment to 7) if underlying data for the jurisdiction renders the tool unreliable.
- Finds and declares that the bill addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this bill applies to all cities, including charter cities.
- Provides that no reimbursement is necessary by the bill pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this bill, as specified.
FISCAL EFFECT: This bill is keyed fiscal and contains a state mandated local program.
COMMENTS:
- Bill Summary. This bill requires local agencies to identify actions in their program to implement the policies and achieve the goals of the housing element that ensures that the distribution of sites across the jurisdiction affirmatively furthers fair housing. The bill additionally requires the local government to rezone the sites within specified time periods and identify sites that can be developed for housing within the planning period, if the inventory of sites does not affirmatively further fair housing.
The bill requires each city or county, at least one year prior to the adoption deadline for the next revision of the housing element, to complete and make publicly available an assessment that includes, among other things, an analysis of available federal, state, and local data and knowledge to identify and examine certain patterns, trends, areas, disparities, and needs of the community, as specified. The city and county is required to solicit public comments on the assessment. The bill requires the city or county to include, among other things, in its first draft revision of the housing element, the assessment, including any revisions made in response to the public comments, and specified strategies and actions to implement the jurisdiction’s fair housing priorities and goals.
This bill requires HCD to develop a standardized format for cities and counties to use to describe strategies and actions to be taken that would affirmatively further fair housing. The bill also requires HCD to develop a new online tool by April 1, 2027 that will serve as the method for determining whether a city or county’s identification of sites accommodate its share of the regional housing need at all income levels.
This bill is sponsored by California Rural Legal Assistance Foundation, Housing California, Public Advocates, and Strategic for a Just Economy.
- Author’s Statement. According to the author, “The obligation to affirmatively further fair housing (AFFH) is California’s landmark law to expand fair housing choice for members of protected classes. AFFH requires all public agencies to take actions that reverse patterns of segregation, increase access to opportunity, and reduce housing disparities. AFFH requirements have been largely implemented through the housing element process, in which local jurisdictions must do a thorough analysis of fair housing issues, identify policy goals and commit to actions to achieve those goals, and identify potential housing sites to meet their Regional Housing Needs Allocation (RHNA) in a way that is responsive to local analysis.
“This bill seeks to strengthen AFFH requirements in the housing element process based on lessons learned from the sixth housing element cycle, which was the first time jurisdictions implemented these provisions. Many jurisdictions concentrated the sites they identified for affordable housing in lower-income neighborhoods - thereby perpetuating patterns of segregation - so this bill requires that jurisdictions distribute a meaningful share of their RHNA in higher-income neighborhoods. Additionally, analysis of fair housing issues and identification of policies to address them was not comprehensive or consistent across jurisdictions in the sixth cycle, particularly as it related to disinvestment and displacement, so this bill provides jurisdictions with a clear set of fair housing issues that they must analyze and set goals to address. Finally, some jurisdictions relied excessively on accessory dwelling units (ADUs) as an AFFH strategy in higher-income, exclusionary neighborhoods, so this bill ensures that jurisdictions can only count ADUs toward their lower-income RHNA goals if they can demonstrate past evidence of producing deed-restricted, affordable ADUs.” - General Plan. A general plan serves as a local government’s blueprint for long-term growth and development, outlining policies and goals to shape the community’s future. Required by state law, every city and county in California must adopt a general plan that addresses key planning topics, known as elements. At a minimum, these include land use, circulation, housing, conservation, open space, noise, and safety. The general plan provides a foundation for zoning regulations, infrastructure investments, and public services, ensuring that development aligns with both local priorities and state requirements.
According to state law, “The general plan shall consist of a statement of development policies and shall include a diagram or diagrams and text setting forth objectives, principles, standards, and plan proposals”. As communities evolve, general plans are periodically updated to reflect changing demographics, economic conditions, and environmental factors, making them a critical tool for sustainable and equitable development.
While state law mandates that general plans cover specific topics, cities and counties have broad discretion in their structure, content, and level of detail. General plans range from 200 to over 2,000 pages and vary significantly based on local conditions and priorities. This flexibility reflects the Legislature’s recognition that “the diversity of the state’s communities and their residents requires planning agencies and legislative bodies to implement general plan law in ways that accommodate local conditions and circumstances, while meeting its minimum requirements”. - 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 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 of the high population parts of the state, and five years in areas with smaller populations. Localities 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 even court receivership. Localities that do not adopt a compliant housing element within 120 days from their statutory deadline also must complete any rezones within one year of their deadline, rather than the three years afforded to on-time adopters.
Among other things, the housing element must demonstrate how the community plans to accommodate its share of its RHNA which is a figure determined by HCD through a demographic analysis of housing needs and population projections. HCD establishes its determination of each COG’s regional housing targets across the state for the next five- or eight-year planning cycle. Each COG (or in some areas, HCD acting directly as COG) then sub-allocates the RHNA to each local government within the COG’s jurisdiction, and in turn each jurisdiction uses its housing element to show how it will accommodate that number of new housing units, split out by income level and with a focus on certain special needs housing types and on affirmatively furthering fair housing.
It is critical that local jurisdictions adopt legally compliant housing elements on time in order to meet statewide housing goals and create the environment 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 or extremely difficult 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 not engage in exclusionary zoning practices. - Federal AFFH Rule. Since its enactment in 1968, the federal Fair Housing Act has directed U.S. Department of Housing and Urban Development (HUD), other federal agencies, and program participants to affirmatively further the Act’s goals of promoting fair housing and equal opportunity. In 2015, the Obama Administration issued the AFFH Rule to clarify what it means to “affirmatively further fair housing.” The Rule incorporated an "Assessment of Fair Housing” process into broader existing planning processes to help HUD grantees identify issues such as fair housing issues pertaining to patterns of integration and segregation; racially and ethnically concentrated areas of poverty; disparities in access to opportunity; and disproportionate housing needs. HUD grantees were required to submit their Assessments to HUD or potentially lose HUD funding.
On January 5, 2018, under President Trump, HUD largely suspended the obligation to submit an Assessment, effectively postponing implementation of the AFFH Rule until 2025. In July 2020, the 2015 AFFH Rule was repealed, with Secretary Carson noting that “Washington has no business dictating what is best to meet your local community’s unique needs.”
On January 26, 2021, President Biden issued a memorandum directing HUD to examine the effect of the previous Administration’s actions against the AFFH Rule and the effect that it has had on HUD’s statutory duty to both ensure compliance with the Fair Housing Act and to affirmatively further fair housing. The memo also ordered HUD to take the necessary steps to implement the Fair Housing Act’s AFFH requirements and to prevent practices that have a disparate impact. On June 10, 2021, HUD published an interim final rule, which will go into effect on July 31, to restore implementation of the AFFH Rule. - AFFH in California. California’s Fair Employment and Housing Act (FEHA) prohibits employment and housing discrimination based on protected classes. FEHA further provides that it is a civil right to be able to pursue and maintain housing or employment without facing discrimination. If a dispute is not resolved, the Department of Civil Rights may take legal action if evidence supports a finding of discrimination. In housing discrimination cases, an individual also has the right to file a lawsuit on their own behalf. While FEHA does not explicitly include an AFFH obligation, it does prohibit discrimination through public or private land use practices, decisions, and authorizations due to membership in a protected class. Discrimination includes restrictive covenants, zoning laws, details of use permits, and other actions authorized under the Planning and Zoning Law that make housing opportunities unavailable.
After the 2015 federal AFFH Rule was enacted, concerns arose about whether it would be preserved going forward. To address these concerns, the Legislature passed and the Governor signed AB 686 (Santiago), Chapter 958, Statutes of 2018, which established an AFFH framework at the state level. AB 686 was subsequently amended in 2021 to clarify and strengthen its provisions through the passing of AB 1304 (Santiago), Chapter 357, Statutes of 2021. This framework remained in place when the Trump Administration repealed the AFFH Rule in 2020. - California AFFH Guidelines. In April 2021, HCD published AFFH guidance to help public agencies and local governments meet AB 686 requirements. The guidance clarifies, and provides examples to illustrate, components of the housing element assessment of fair housing, including a summary of fair housing enforcement and outreach capacity; integration and segregation patterns and trends related to people with protected characteristics and lower incomes; racially and ethnically concentrated areas of poverty; disparities in opportunity; and disproportionate housing needs, including displacement.
- Policy Consideration. This committee is hearing two other bills that propose to change timelines in Housing Element Law. If any or all bills relating to or components of the Housing Element were to pass, it would be prudent to ensure that all bills operate on the same timelines to ensure successful implementation of the proposed policies. The author may wish to consider aligning with timelines with other Housing Element bills as the bills move forward.
- Related Legislation. AB 650 (Papan) extends a number of timelines in the process of determining regional housing needs and RHNA and housing element revisions, and requires the HCD to provide specific analysis or text to local governments to remedy deficiencies in their draft housing element revisions. AB 650 is pending in this Committee.
AB 1275 (Elhawary) requires HCD to determine each region with a COG’s existing and projected housing need three years prior to each region’s scheduled housing element revision, rather than two years in existing law, and makes changes to how the transportation and job projections in a region’s sustainable communities strategy must be incorporated into each COG’s RHNA methodology and final RHNA plan. AB 1275 is pending in this Committee. - Arguments in Support. The California Legal Assistant Foundation, Housing California, Public Advocates, and Strategic Actions for a Just Economy, co-sponsors of the bill, write in support, “AB 906 will improve, strengthen, and clarify housing element requirements to better ensure that jurisdictions are developing housing plans that will increase fair housing choice and opportunity for members of protected classes. The bill will:
- Clarify that to meet the AFFH obligation, the housing element adequate sites inventory must distribute a meaningful share of multifamily sites across the relatively higher-income parts of the jurisdiction, and require HCD to create a metric to assess whether this requirement is met.
- Clarify that a rezoning program is required if the jurisdiction’s sites are not distributed in a way that affirmatively furthers fair housing, even if the jurisdiction identifies enough total sites to accommodate its RHNA share at all income levels.
- Require jurisdictions to complete the fair housing analysis, with community input, early in the process so that it meaningfully serves as the basis for developing goals, strategies, actions, and the adequate sites inventory.
- Require jurisdictions to analyze a minimum list of common fair housing issues, including disinvestment, access to a healthy environment, and renter issues.
- Address overreliance on ADUs as a strategy to AFFH or meet lower-income RHNA goals.
“Improvements to AFFH requirements in housing elements are timely because the seventh housing element cycle already has begun in some rural areas and adoption deadlines for the first seventh cycle housing elements in more populous areas start in 2028, with development of those elements likely to begin in 2026. Passing legislation in 2025 would allow time for HCD to update its AFFH guidance and provide clarity to jurisdictions about AFFH requirements before they begin the housing element update process. Further, just as when AB 686 was introduced, fair housing laws generally and AFFH specifically are under attack at the federal level. Now is the time for California to lead the way.”
- Arguments in Opposition. None on file.
- Double-Referral. This bill is double-referred to the Assembly Committee on Housing and Community Development, where it is scheduled to be hear on April 30, 2025.
REGISTERED SUPPORT / OPPOSITION:
Support
California Rural Legal Assistance Foundation (Co-Sponsor)
Housing California (Co-Sponsor)
Public Advocates (Co-Sponsor)
Strategic Actions for a Just Economy (Co-Sponsor)
Acce Action
Alliance for Community Transit-Los Angeles (ACT-LA)
Association of Regional Center Agencies
California Housing Partnership
Communities for a Better Environment
Courage California
East Bay Housing Organizations
East Bay Yimby
East Yard Communities for Environmental Justice
Grow the Richmond
Inner City Law Center
Leadership Council for Justice and Accountability
Leadingage California
Legal Aid of Sonoma County
Long Beach Forward
Los Angeles Alliance for a New Economy (LAANE)
Mountain View Yimby
Napa-Solano for Everyone
National Housing Law Project
Northern Neighbors
Peninsula for Everyone
Policylink
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Yimby Slo
Opposition
None of file
Analysis Prepared by: Linda Rios / L. GOV. / (916) 319-3958
Date of Hearing: April 30, 2025
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Matt Haney, Chair
ABPCA Bill Id:AB 906 (
Author:Mark González) – As Amended Ver:April 21, 2025
SUBJECT: Planning and zoning: housing elements: affirmatively furthering fair housing
SUMMARY: Revises a number of components relating to the obligation for local governments to affirmatively further fair housing (AFFH) in housing elements. Specifically, this bill:
- Requires a local government’s housing element to ensure that the sites designated to accommodate the jurisdiction’s share of the regional housing need (RHNA) at all income levels after any required rezoning will AFFH, and that the distribution of sites across the jurisdiction will AFFH, as specified.
- Requires a local government, in instances where the sites identified under 1) above do not AFFH, as specified, to include a program in their housing element for rezoning of those sites, subject to specified deadlines.
- Requires a local government to demonstrate that sites identified to accommodate its RHNA after any rezoning program will AFFH.
- Recasts existing provisions requiring a local government’s housing element program to include an assessment of fair housing in the jurisdiction with specified provisions. Adds the following requirements to the AFFH program:
- Requires the assessment to be completed and made publicly available at least one year prior to the adoption deadline of the next revision of the housing element;
- Requires the assessment to include an analysis of disparities in access to opportunity for members of protected classes, as defined, including but not limited to access to educational, employment, and transportation opportunities, and access to a healthy environment;
- Requires the assessment to include an analysis of disparities in availability and quality of amenities and services for members of protected classes, including infrastructure, parks, maintenance and sanitation services, health services, grocery stores, and financial institutions;
- Requires the assessment to include an examination of the disproportionate housing needs of members of protected classes, including but not limited to displacement risk, evictions, cost burden, overcrowding, substandard housing, homelessness, risk related to climate disasters, and expiring covenants resulting in the loss of affordable housing;
- Requires the analysis to be prepared after meaningful consultation with members of protected classes and organizations representing their interests, defines “meaningful consultation” to mean taking proactive steps to outreach to and engage with members of protected classes, especially those harmed by the impact of historical discrimination in the jurisdiction and surrounding region, and organizations representing their interests, to solicit their participation and input throughout the development of the assessment;
- Requires a jurisdiction to conduct outreach and engagement under 4) e) above through a variety of methods, in languages commonly spoken by community members, and in an accessible format for people with disabilities as needed;
- Requires the jurisdiction to include in any drafts of the housing element and the final adopted housing element a description of its outreach under 4) f) above, a summary of comments received, and an explanation of how the comments were considered and incorporated or why they were rejected; and
- Requires the summary of fair housing issues in the jurisdiction to be based on specified analysis.
- Requires a jurisdiction, after completing the fair housing assessment and before the first draft revision of the housing element, to solicit public comments on the assessment and seek input on specified information.
- Requires a jurisdiction to include both of the following in the first draft revision of the housing element available for public comment as specified:
- The fair housing assessment under 4) above, including any revisions made in response to comments received under 5) above;
- Based on the assessment and any input received pursuant to the meaningful consultation required, as specified, all of the following:
- An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to addressing those issues and factors identified under 4) h) above that have been identified as priorities by members of protected classes and organizations representing their interest, limit access for members of protected classes to live in higher-income areas, limit access to opportunity, contribute to lack of investment in historically disadvantaged neighborhoods, or cause displacement of protected classes;
- An identification of the neighborhoods most in need of investment and the type of investment required to meet the needs of members of protected classes without causing displacement of protected classes;
- Strategies and actions to implement the priorities and goals under i) above, including those that would make necessary investments in the areas identified under ii) above and those that would expand housing choice for members of protected classes. Requires jurisdictions to consider strategies that include but are not limited to, all of the following:
- Strategies to enable members of protected classes to live in the neighborhood of their choice;
- Strategies to encourage development of new affordable housing in both higher income neighborhoods and historically disinvested neighborhoods; and
- Strategies to encourage community revitalization in historically disinvested neighborhoods, including preservation of existing affordable housing, infrastructure, and other investments that enhance opportunity, remediation of environmental justice issues, and policies that protect existing residents and community-serving small businesses from displacement.
- An assessment of the jurisdiction’s fair housing enforcement and fair housing outreach capacity.
- Modifies the existing requirement for the Department of Housing and Community Development (HCD) to develop a standardized reporting format for AFFH programs and actions by requiring the format to instead describe strategies and actions to be taken under 6) iii) above, requiring the format to address specified fair housing assessment components, and requiring the format to include a field for which fair housing priority a program is intended to address, the intended impacts, and how the strategies and actions will result in those impacts.
- Limits the ability of a jurisdiction to include accessory dwelling units (ADUs) to count toward the requirement to identify adequate sites to accommodate the RHNA and to AFFH, by specifying that, in order to count ADUs developed in the prior housing element period toward the lower income category, the jurisdiction must provide proof of a recorded deed restriction requiring the continued affordability of the unit for at least 55 years for rental housing and 30 years for ownership housing for lower income households.
- Requires a jurisdiction’s inventory of land suitable for residential development to be used to identify sites that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction’s share of RHNA for all income levels and that are distributed throughout the community in a manner that will AFFH.
- Requires a jurisdiction to ensure that sites identified in the inventory under 9) above are distributed throughout the jurisdiction in a manner that AFFH by reducing residential segregation, and requires this determination to be based on whether the sites identified to accommodate the lower income RHNA and sites identified to accommodate the total RHNA, taking into account the number of units specified to be accommodated on each site, are located in relatively higher income areas of the jurisdiction in a higher proportion than the proportion of land located in relatively higher income areas in the jurisdiction.
- Requires HCD, no later than April 1, 2027, to develop and publish an online tool that must serve as the method for determining whether each jurisdiction’s identification of sites adequate to accommodate its share of RHNA at all income levels that meets the requirement in 10) above.
- Allows HCD to grant an adjustment to the requirement in 10) above if underlying data for the jurisdiction renders the tool unreliable.
- Applies the provisions of this bill to all cities, including charter cities.
EXISTING LAW:
- Provides that each community’s fair share of housing be determined through the Regional Housing Needs Determination (RHND)/RHNA process. Sets out the process as follows: (a) Department of Finance and HCD develop determination estimates or RHNDs; (b) COGs allocate housing via RHNA within each region based on these determinations, and where a COG does not exist, HCD conducts the allocations; and (c) cities and counties incorporate these allocations into their housing elements. (Government Code (GOV) 65584 and 65584.01)
- Requires each city and county to adopt a housing element, which must contain specified information, programs, and objectives, including:
- 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; 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 RHNA, among other things;
- 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
- 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 RHNA for each income level that could not be accommodated on sites identified in the sites inventory without rezoning, among other things. (GOV 65583(a)-(c))
- Requires the housing element to AFFH in accordance with specified law, and to include an assessment of fair housing in the jurisdiction that must include all of the following components:
- A summary of fair housing issues in the jurisdiction and an assessment of the jurisdiction’s fair housing enforcement and fair housing capacity;
- An analysis of available federal, state, and local data and knowledge to identify integration and segregation patterns and trends, racially or ethnically concentrated areas of poverty and affluence, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. Requires the analysis to identify and examine such patterns, trends, areas, disparities, and needs, both within the jurisdiction and comparing the jurisdiction to the region, based on race and other characteristics protected by the California Fair Employment and Housing Act;
- An assessment of the contributing factors, including the local and regional historical origins and current policies and practices, for the fair housing issues identified, as specified;
- An identification of the jurisdiction’s fair housing priorities and goals, giving highest priority to those factors that limit or deny fair housing choice or access to opportunity, or negatively impact fair housing or civil rights compliance, and identifying the metrics and milestones for determining what fair housing results will be achieved;
- Strategies and actions to implement those priorities and goals, which may include, but are not limited to, enhancing mobility strategies and encouraging development of new affordable housing in areas of opportunity, as well as place-based strategies to encourage community revitalization, including preservation of existing affordable housing and protecting existing residents from displacement. (GOV 65583(c)(10)(A))
- Requires HCD to develop a standardized reporting format for programs and actions taken under 2) above, which must be utilized for the seventh and each subsequent revision of the housing element, must enable the reporting of specified fair housing assessment components, and, at a minimum, include all of the following fields:
- Timelines for implementation;
- Responsible party or parties;
- Resources committed from the local budget to AFFH;
- Action areas; and
- Potential impacts of the program. (GOV 65583(c)(10)(D))
- Permits HCD to allow a jurisdiction to identify adequate sites for purposes of meeting RHNA by identifying sites for ADUs based on the number of ADUs developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors determined by HCD. (GOV 65583.1(a))
- Requires a jurisdiction’s inventory of land suitable for residential development, as specified, to be used to identify sites throughout the community, consistent with AFFH, that can be developed for housing within the planning period that are sufficient to provide for the jurisdiction’s share of RHNA for all income levels. (GOV 65583.2(a))
- Requires a local government to submit a draft housing element revision or amendment to HCD at least 90 days prior to adoption of a revision of its housing element, as specified, or at least 60 days prior to the adoption of a subsequent amendment to the housing element. (GOV 65585(b)(1)(A))
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “The obligation to affirmatively further fair housing (AFFH) is California’s landmark law to expand fair housing choice for members of protected classes. AFFH requires all public agencies to take actions that reverse patterns of segregation, increase access to opportunity, and reduce housing disparities. AFFH requirements have been largely implemented through the housing element process, in which local jurisdictions must do a thorough analysis of fair housing issues, identify policy goals and commit to actions to achieve those goals, and identify potential housing sites to meet their share of the regional housing need in a way that reduces patterns of segregation and exclusion. This bill seeks to strengthen AFFH requirements in the housing element process based on lessons learned from the sixth housing element cycle, which was the first time jurisdictions implemented these provisions. Many jurisdictions concentrated the sites they identified for affordable housing in lower-income neighborhoods - thereby perpetuating patterns of segregation - so this bill requires that jurisdictions distribute a meaningful portion of their lower-income RHNA in higher-income neighborhoods. Additionally, analysis of fair housing issues and identification of policies to address them was not comprehensive or consistent across jurisdictions in the sixth cycle, particularly as it related to disinvestment and displacement, so this bill provides jurisdictions with a clear set of fair housing issues that they must analyze and set goals to address. Finally, some jurisdictions relied excessively on accessory dwelling units (ADUs) as an AFFH strategy in higher-income, exclusionary neighborhoods, so this bill ensures that jurisdictions can only count ADUs toward their lower-income RHNA goals if they can demonstrate past evidence of producing deed-restricted, affordable ADUs.”
Federal AFFH Rule: Since its enactment in 1968, the federal Fair Housing Act has directed the Department of Housing and Urban Development (HUD), other federal agencies, and program participants to affirmatively further the Act’s goals of promoting fair housing and equal opportunity. In 2015, the Obama Administration issued the AFFH Rule to clarify what it means to “affirmatively further fair housing.” The Rule incorporated an "Assessment of Fair Housing” process into broader existing planning processes to help HUD grantees identify issues such as fair housing issues pertaining to patterns of integration and segregation; racially and ethnically concentrated areas of poverty; disparities in access to opportunity; and disproportionate housing needs. HUD grantees were required to submit their Assessments to HUD or potentially lose HUD funding.
On January 5, 2018, under President Trump, HUD largely suspended the obligation to submit an Assessment, effectively postponing implementation of the AFFH Rule until 2025. In July 2020, the 2015 AFFH Rule was repealed.
On January 26, 2021, President Biden issued a memorandum directing HUD to examine the effect of the previous Administration’s actions against the AFFH Rule and the effect that it has had on HUD’s statutory duty to both ensure compliance with the Fair Housing Act and to affirmatively further fair housing. The memo also ordered HUD to take the necessary steps to implement the Fair Housing Act’s AFFH requirements and to prevent practices that have a disparate impact. On June 10, 2021, HUD published an interim final rule, which went into effect on July 31, 2021, to restore implementation of the AFFH Rule. Under the second Trump Administration, HUD recently moved to repeal the 2021 provisions once again.
AFFH in California: California’s Fair Employment and Housing Act (FEHA) prohibits employment and housing discrimination based on the protected classes. FEHA further provides that it is a civil right to be able to pursue and maintain housing or employment without facing discrimination. If a dispute is not resolved, the Civil Rights Department may take legal action if evidence supports a finding of discrimination. In housing discrimination cases, an individual also has the right to file a lawsuit on their own behalf. While FEHA does not explicitly include an AFFH obligation, it does prohibit discrimination through public or private land use practices, decisions, and authorizations due to membership in a protected class. Discrimination includes restrictive covenants, zoning laws, details of use permits, and other actions authorized under the Planning and Zoning Law that make housing opportunities unavailable.
After the 2015 AFFH Rule was enacted, concerns arose about whether it would be preserved going forward. To address these concerns, in 2018 the Legislature passed and the Governor signed AB 686 (Santiago), Chapter 958, which established an AFFH framework at the state level. This framework remained in place when the Trump Administration repealed the AFFH Rule in 2020 and remains in place today pending re-repeal.
Adoption and Implementation of Housing Elements: All of the state’s 539 cities and counties are required to appropriately plan for new housing 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 of the high population parts of the state, and five years in areas with smaller populations. Localities must adopt a legally valid housing element by their statutory deadline for adoption. Failure to do so can result in certain escalating penalties, including an accelerated deadline for completing rezoning, exposure to the “builder’s remedy,” public or private lawsuits, financial penalties, potential loss of permitting authority, or even court receivership.
Among other things, the housing element must demonstrate how the community plans to accommodate its share of its region’s RHNA. To do so, each community establishes an inventory of sites designated for new housing that is sufficient to accommodate its fair share. Where a community does not already contain the existing capacity to accommodate its fair share of housing, it must undertake a rezoning program to accommodate the housing planned for in the housing element. Depending on whether the jurisdiction met its statutory deadline for housing element adoption, it will have either one year (if it failed to meet the deadline) or three years (if it met the deadline) from its adoption deadline to complete that rezoning program.
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 and harmful practices.
Local governments have a statutory deadline to submit a housing element based on region. Ninety days before the deadline to adopt a housing element, localities must submit a draft to HCD. HCD is required to review the draft element within 90 days of receipt and provide written findings as to whether the draft amendment substantially complies with housing element law. If HCD finds that the draft element does not substantially comply with the law, the local agency may either make changes to the draft element to substantially comply with the law or adopt the element and make findings as to why it complies with the law despite the findings of the department. Following adoption of a housing element, a local agency submits it to HCD.
Housing Element AFFH Obligations: Among other things, the housing element must demonstrate how the community plans to accommodate its share of its region’s housing needs and to AFFH. To do so, each community establishes an inventory of sites designated for new housing that is sufficient to accommodate its fair share, after performing an AFFH analysis of those sites. Where a community does not already contain the existing capacity to accommodate its fair share of housing, it must undertake a rezoning program to accommodate the housing planned for in the housing element. The requirement to AFFH also contains a mandate to perform an assessment of fair housing in the jurisdiction that has to include several components, including an identification of the jurisdiction’s fair housing priorities and goals, metrics and milestones for determining what fair housing results will be achieved via the housing element, and strategies and actions to implement those priorities and goals. The goals may include items like enhancing mobility strategies, encouraging development of new affordable housing in opportunity areas, preserving existing affordable housing, protecting residents from displacement, and place-based strategies to encourage community revitalization.
According to the bill’s author and sponsors, improvements to AFFH requirements in housing elements are timely and needed because the seventh housing element cycle already has begun in some rural areas and adoption deadlines for the first seventh cycle housing elements in more populous areas start in 2028, with development of those elements likely to begin in 2026. Passing legislation in 2025 would allow time for HCD to update its AFFH guidance and provide clarity to jurisdictions about AFFH requirements before they begin the housing element update process. Further, just as when AB 686 (Santiago) was introduced, fair housing laws generally and AFFH specifically are under attack at the federal level.
This bill proposes a number of changes to AFFH requirements, as follows:
- Requires that to meet the AFFH obligation, the housing element adequate sites inventory must distribute a meaningful share of lower-income and multifamily sites across the relatively higher-income parts of a jurisdiction, and requires HCD to create or identify a research-backed metric to assess whether this requirement is met;
- Provides that a rezoning program is required if the jurisdiction’s adequate sites are not distributed in a way that will AFFH, even if the jurisdiction identifies enough total sites to accommodate its RHNA share at all income levels;
- Clarifies that jurisdictions must complete the fair housing analysis and assessment, with community input, early in the housing element process so that it meaningfully serves as the basis for developing goals, strategies, actions, and the adequate sites inventory;
- Requires jurisdictions to analyze a more specific minimum list of common fair housing issues, including disinvestment, access to a healthy environment, and renter issues, and recasts those assessment provisions by moving them into a new code section; and
- Limits jurisdictions’ ability to over-rely on ADUs as an AFFH strategy and to meet lower income RHNA obligations in a way that does not disincentivize ADU production by limiting the use of ADUs to count towards meeting lower income RHNA site requirements unless they are able to demonstrate ADUs in the prior planning period were deed-restricted at affordable levels for specified lengths of time.
Policy Considerations: Housing elements have become complex time- and resource-intensive planning documents and increasing the requirements for what must be included in these documents should be considered carefully in light of the strict timelines and requirements that govern their adoption. To that effect, this committee recently heard and passed two other bills – AB 650 (Papan) and AB 1275 (Elhawary) – that propose to change certain deadlines for developing the RHNA and housing elements and give various actors more time to prepare components of these documents. Committee amendments made to those bills harmonized the proposed timeline extensions in both. If bills relating to components of housing element law are to pass, it would be prudent to ensure that all bills operate on the same extended timelines to ensure successful implementation of the proposed policies. The author may wish to consider aligning this effort with these other housing element bills as these bills move forward.
Arguments in Support: According to the California Rural Legal Assistance Foundation, Housing California, Public Advocates, and Strategic Actions for a Just Economy, the bill’s cosponsors, “Although there have been successes with AFFH planning in the sixth housing element cycle, which was the first time that jurisdictions implemented these provisions, there are also areas where the law needs further refinement to ensure that California can fulfill the promise of AFFH. For example, some jurisdictions have not created meaningful opportunities for affordable housing development in higher-income single-family neighborhoods. Additionally, analysis of fair housing issues was not comprehensive or consistent across jurisdictions, particularly as it related to displacement and disinvestment, leading to a lack of meaningful policies to address these issues despite a clear legal obligation to do so. Finally, some jurisdictions relied excessively on accessory dwelling units (ADUs) as an AFFH strategy or to meet their lower-income regional housing needs allocation (RHNA) goals. AB 906 will improve, strengthen, and clarify housing element requirements to better ensure that jurisdictions are developing housing plans that will increase fair housing choice and opportunity for members of protected classes.”
Arguments in Opposition: According to the League of California Cities, “[AB 906] adds language to housing element law that allows the Department of Housing and Community Development to certify a housing element when the inventory of sites accommodates a local jurisdiction’s RHNA even though those sites are not distributed throughout the community in a manner that affirmatively furthers fair housing. Your measure requires a local jurisdiction to identify sites in the housing element that accommodate its RHNA and additional sites (after the housing element is certified) that affirmatively further fair housing. With respect, Cal Cities suggests that this is neither fair nor efficient. Cal Cities supports the efforts to affirmatively further fair housing as required by law but is concerned that this measure requires sites beyond a local agency’s RHNA. Instead of requiring more sites, Cal Cities would prefer that HCD determine whether the chosen sites affirmatively further fair housing as part of its inventory review, instead of requiring new sites beyond the RHNA.”
Related Legislation:
AB 650 (Papan) of the current legislative session would extend various timelines in the RHND, RHNA, and housing element process, and require HCD to provide specific analysis or text to local governments to remedy deficiencies in their draft housing elements. This bill was recently heard in this committee and passed on a vote of 11-0.
AB 1275 (Elhawary) of the current legislative session would require HCD to determine each COG’s RHND three years prior to each region’s scheduled housing element revision and would make changes to how the transportation and job projections in a region’s sustainable communities strategy must be incorporated into each COG’s final RHNA plan. This bill was recently heard in this committee and passed on a vote of 11-0.
AB 1304 (Santiago), Chapter 357, Statutes of 2021: Reaffirmed that the state, local jurisdictions, and public agencies involved in housing-related matters have a mandatory duty to take meaningful affirmative steps to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. The bill also provided additional details regarding what these entities must take into account when carrying out that duty to AFFH.
AB 686 (Santiago), Chapter 958, Statutes of 2018: Required state departments and agencies, cities, counties, public housing authorities, and other public entities to AFFH in all of their housing and community development-related activities. In addition, the bill required cities and counties to undertake an AFFH analysis and meet other related requirements as part of the development of their housing elements.
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
California Rural Legal Assistance Foundation (Co-Sponsor)
Housing California (Co-Sponsor)
Public Advocates (Co-Sponsor)
Strategic Actions for a Just Economy (Co-Sponsor)
ACCE Action
Alliance for Community Transit-Los Angeles (ACT-LA)
Association of Regional Center Agencies
California Housing Partnership
Communities for a Better Environment
Courage California
East Bay Housing Organizations
East Bay YIMBY
East Yard Communities for Environmental Justice
Grow the Richmond
Inner City Law Center
Leadership Council for Justice and Accountability
LeadingAge California
Legal Aid of Sonoma County
Long Beach Forward
Los Angeles Alliance for a New Economy (LAANE)
Mountain View YIMBY
Napa-Solano for Everyone
National Housing Law Project
Northern Neighbors
Peninsula for Everyone
PolicyLink
Public Counsel
Rise Economy
Santa Cruz YIMBY
Santa Rosa YIMBY
SF YIMBY
South Bay YIMBY
Ventura County YIMBY
YIMBY Action
YIMBY LA
YIMBY SLO
Support If Amended
South Pasadena Residents for Responsible Growth
Opposition
League of California Cities (oppose unless amended)
Analysis Prepared by: Nicole Restmeyer / H. & C.D. / (916) 319-2085
Discussed in Hearing
9MIN
Senate Standing Committee on Housing
2MIN
Assembly Floor
12MIN
Assembly Standing Committee on Housing and Community Development
9MIN
Assembly Standing Committee on Local Government
Bill Author
Bill Co-Author(s):