SB 457: Housing element compliance: committed assistance: in-kind services: realistic capacity formula.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-09-29
Current Status:
Passed
(2026-09-29: Chaptered by Secretary of State. Chapter 802, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element.
Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, 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. Existing law requires a city or county, based on that inventory of land, to 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 provided.
Existing law requires the inventory of land to include, among other things, a description of the existing use of the property for nonvacant sites. For the nonvacant sites, existing law requires the city or county to specify the additional development potential for each site within the planning period. Existing law requires a city or county to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels.
This bill would require, on or before July 1, 2028, the Department of Housing and Community Development to promulgate or approve one or more formulas and associated user interfaces or other tools that allow for the determination of specified information, including, among other things, the realistic capacity of housing element inventory sites, as specified. The bill would authorize the above-described analysis and determinations by a city or county related to sites in the inventory of land suitable and available for residential development to rely on the formula promulgated or approved by the department. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
This bill would require the inventory of land suitable and available for residential development to specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, as specified, to accommodate the citys or countys share of regional housing need.
This bill would exempt the use by a city or county of any adopted formula, associated user interface, or tool promulgated or approved by the department for these purposes from judicial review, except as specified.
Existing law also requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element.
Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, 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. Existing law requires a city or county, based on that inventory of land, to 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 provided.
Existing law requires the inventory of land to include, among other things, a description of the existing use of the property for nonvacant sites. For the nonvacant sites, existing law requires the city or county to specify the additional development potential for each site within the planning period. Existing law requires a city or county to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels.
This bill would require, on or before July 1, 2028, the Department of Housing and Community Development to promulgate or approve one or more formulas and associated user interfaces or other tools that allow for the determination of specified information, including, among other things, the realistic capacity of housing element inventory sites, as specified. The bill would authorize the above-described analysis and determinations by a city or county related to sites in the inventory of land suitable and available for residential development to rely on the formula promulgated or approved by the department. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
This bill would require the inventory of land suitable and available for residential development to specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, as specified, to accommodate the citys or countys share of regional housing need.
This bill would exempt the use by a city or county of any adopted formula, associated user interface, or tool promulgated or approved by the department for these purposes from judicial review, except as specified.
Existing law also requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element.
Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, 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. Existing law requires a city or county, based on that inventory of land, to 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 provided.
Existing law requires the inventory of land to include, among other things, a description of the existing use of the property for nonvacant sites. For the nonvacant sites, existing law requires the city or county to specify the additional development potential for each site within the planning period. Existing law requires a city or county to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels.
This bill would require, on or before January July 1, 2028, the Department of Housing and Community Development to promulgate or approve one or more formulas and associated user interfaces or other tools that allow for the determination of specified information, including, among other things, the realistic capacity of housing element inventory sites, as specified. The bill would authorize the above-described analysis and determinations by a city or county related to sites in the inventory of land suitable and available for residential development to rely on the formula promulgated or approved by the department. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
This bill would require the inventory of land suitable and available for residential development to specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, as specified, to accommodate the citys or countys share of regional housing need.
This bill would exempt the use by a city or county of any adopted formula, associated user interface, or tool promulgated or approved by the department for these purposes from judicial review, except as specified.
Existing law also requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element.
Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, 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. Existing law requires a city or county, based on that inventory of land, to 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 provided.
Existing law requires the inventory of land to include, among other things, a description of the existing use of the property for nonvacant sites. For the nonvacant sites, existing law requires the city or county to specify the additional development potential for each site within the planning period. Existing law requires a city or county to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels. Existing law requires that program to accommodate 100% of the need for housing for specified lower income households on sites required to be zoned to permit owner-occupied and rental multifamily residential use, as provided, and requires these sites to be zoned with specified minimum density and development standards, as provided.
This bill would require, on or before January 1, 2028, the Department of Housing and Community Development to promulgate or approve formulas and associated user interfaces or other tools that allow for the determination of specified information, including, among other things, the realistic capacity of housing element inventory sites, as specified. The bill would authorize the above-described analysis and determinations by a city or county related to sites in the inventory of land suitable and available for residential development to rely on the formula promulgated or approved by the department. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
This bill would require the inventory of land suitable and available for residential development to specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, as specified, to accommodate the citys or countys share of regional housing need.
This bill would exempt the use by a city or county of any adopted formula, associated user interface, or tool promulgated or approved by the department for these purposes from judicial review, except as specified.
Existing law also requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element.
Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, 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. Existing law requires a city or county, based on that inventory of land, to 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 provided.
Existing law requires the inventory of land to include, among other things, a description of the existing use of the property for nonvacant sites. For the nonvacant sites, existing law requires the city or county to specify the additional development potential for each site within the planning period. Existing law requires a city or county to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels. Existing law requires that program to accommodate 100% of the need for housing for specified lower income households on sites required to be zoned to permit owner-occupied and rental multifamily residential use, as provided, and requires these sites to be zoned with specified minimum density and development standards, as provided.
This bill would require, on or before January 1, 2028, the Department of Housing and Community Development to promulgate or approve formulas and associated user interfaces or other tools that allow for the determination of specified information, including, among other things, the realistic capacity of housing element inventory sites, as specified. The bill would authorize the above-described analysis and determinations by a city or county related to sites in the inventory of land suitable and available for residential development to rely on the formula promulgated or approved by the department. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
This bill would require the inventory of land suitable and available for residential development to specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, as specified, to accommodate the citys or countys share of regional housing need.
This bill would exempt a the use by a city or county of any adopted formula, associated user interface, or tool promulgated or approved by the department for these purposes from judicial review, except as specified. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.This bill would exempt any rule, policy, or standard of general application issued by the department to implement the formula, associated user interface, or tool from the Administrative Procedure Act and, instead, would require the department to make a proposed formula, associated user interface or tool, and any supporting documentation available through a public website with a form or email address for submission of written comments by members of the public at least 60 days before promulgating, approving, or making a material change to the formula, associated user interface, or tool.Existing law also requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element. Existing
Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development, 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. Existing law requires a city or county, based on that inventory of land, to 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 provided.
Existing law requires the inventory of land to include, among other things, a description of the existing use of the property for nonvacant sites. For the nonvacant sites, existing law requires the city or county to specify the additional development potential for each site within the planning period. Existing law requires a city or county to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels. Existing law requires that program to accommodate 100% of the need for housing for specified lower income households on sites required to be zoned to permit owner-occupied and rental multifamily residential use, as provided, and requires these sites to be zoned with specified minimum density and development standards, as provided.
This bill would require, on or before January 1, 2028, the Department of Housing and Community Development to promulgate or approve formulas and associated user interfaces or other tools that allow for the determination of specified information, including, among other things, the realistic capacity of housing element inventory sites, as specified. The bill would authorize the above-described analysis and determinations by a city or county related to sites in the inventory of land suitable and available for residential development to rely on the formula promulgated or approved by the department.
This bill would require the inventory of land suitable and available for residential development to specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, as specified, to accommodate the citys or countys share of regional housing need.
This bill would exempt a formula, associated user interface, or tool promulgated or approved by the department for these purposes from judicial review, except as specified. The bill would authorize the department to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies.
This bill would exempt any rule, policy, or standard of general application issued by the department to implement the formula, associated user interface, or tool from the Administrative Procedure Act and, instead, would require the department to make a proposed formula, associated user interface or tool, and any supporting documentation available through a public website with a form or email address for submission of written comments by members of the public at least 60 days before promulgating, approving, or making a material change to the formula, associated user interface, or tool.
Existing law also requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element. Existing law requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during at a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that includes various mandatory elements, including a housing element. Existing law requires that the housing element, among other things, sets forth a schedule of actions during the planning period that the local government is undertaking or intends to undertake to implement the policies and achieve the goals of the housing element, as provided. Existing law authorizes the Department of Housing and Community Development to allow a city or county to substitute the provision of units pursuant to this schedule of actions if the community includes in its housing element a program committing the local government to provide specified units that will be made available through the provision of committed assistance to lower income households at affordable housing costs or rents, as defined. Existing law requires a unit to meet specified requirements to qualify for inclusion in the program. Existing law defines committed assistance for these purposes to mean that the city or county enters into a legally enforceable agreement during at a specified time 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 2 years of the execution of the agreement.
This bill would define in-kind services for these purposes.
The Planning and Zoning Law requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Existing law, commonly referred to as the housing element law, prescribes requirements for a citys or countys preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the housing element law, as specified.Existing law within the Planning and Zoning Law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes written findings, based on a preponderance of the evidence, that one of 6 specified conditions exist. Among these conditions, the act allows a local agency to disapprove a housing development project that is inconsistent with the jurisdictions zoning ordinances and general plan land use designation as it existed on the date the application was deemed complete, if the jurisdiction has adopted a revised housing element that is in substantial compliance with the housing element law, as specified. The act defines deemed complete for purposes of its provisions, until January 1, 2030, to mean that the applicant has submitted a preliminary application, as specified, or if the applicant has not submitted a preliminary application, the submission of a completed application, as specified.This bill, for the purpose of allowing a local agency to disapprove a housing development project that is inconsistent with the jurisdictions zoning ordinances and general plan land use designation, as described above, would revise the definition of deemed complete to mean that the applicant submitted a complete application, as specified. The bill would provide that this definition would apply to an application that as of January 1, 2026 has not (1) received approval from a local agency or (2) incurred substantial liability in good faith reliance upon the local agency approval.Existing law provides that a housing element or amendment is considered substantially compliant with the housing element law when the local agency adopts a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the departments compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the courts decision has not been overturned or superseded by a subsequent court decision or by statute, as applicable.This bill would, instead, provide that a housing element or amendment is considered substantially compliant with the housing element law on the date when the governing body of a local agency adopts the housing element or amendment, provided that after the date the housing element or amendment is adopted and without further action by the governing body, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the departments compliance findings are not superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the courts decision is not overturned or superseded by a subsequent court decision or by statute.The Planning and Zoning Law requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Existing law, commonly referred to as the housing element law, prescribes requirements for a citys or countys preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the housing element law, as specified.
Existing law within the Planning and Zoning Law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes written findings, based on a preponderance of the evidence, that one of 6 specified conditions exist. Among these conditions, the act allows a local agency to disapprove a housing development project that is inconsistent with the jurisdictions zoning ordinances and general plan land use designation as it existed on the date the application was deemed complete, if the jurisdiction has adopted a revised housing element that is in substantial compliance with the housing element law, as specified. The act defines deemed complete for purposes of its provisions, until January 1, 2030, to mean that the applicant has submitted a preliminary application, as specified, or if the applicant has not submitted a preliminary application, the submission of a completed application, as specified.
This bill, for the purpose of allowing a local agency to disapprove a housing development project that is inconsistent with the jurisdictions zoning ordinances and general plan land use designation, as described above, would revise the definition of deemed complete to mean that the applicant submitted a complete application, as specified. The bill would provide that this definition would apply to an application that as of January 1, 2026 has not (1) received approval from a local agency or (2) incurred substantial liability in good faith reliance upon the local agency approval.
Existing law provides that a housing element or amendment is considered substantially compliant with the housing element law when the local agency adopts a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the departments compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the courts decision has not been overturned or superseded by a subsequent court decision or by statute, as applicable.
This bill would, instead, provide that a housing element or amendment is considered substantially compliant with the housing element law on the date when the governing body of a local agency adopts the housing element or amendment, provided that after the date the housing element or amendment is adopted and without further action by the governing body, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the departments compliance findings are not superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the courts decision is not overturned or superseded by a subsequent court decision or by statute.
The Planning and Zoning Law requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Existing law, commonly referred to as the housing element law, prescribes requirements for a citys or countys preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the housing element law, as specified.
Existing law within the Planning and Zoning Law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes written findings, based on a preponderance of the evidence, that one of 6 specified conditions exist. Among these conditions, the act allows a local agency to disapprove a housing development project that is inconsistent with the jurisdictions zoning ordinances and general plan land use designation as it existed on the date the application was deemed complete, if the jurisdiction has adopted a revised housing element that is in substantial compliance with the housing element law, as specified. The act defines deemed complete for purposes of its provisions, until January 1, 2030, to mean that the applicant has submitted a preliminary application, as specified, or if the applicant has not submitted a preliminary application, the submission of a completed application, as specified.
This bill, for the purpose of allowing a local agency to disapprove a housing development project that is inconsistent with the jurisdictions zoning ordinances and general plan land use designation, as described above, would revise the definition of deemed complete to mean that the applicant submitted a complete application, as specified. The bill would provide that this definition would apply to an application that as of January 1, 2026 has not (1) received approval from a local agency or (2) incurred substantial liability in good faith reliance upon the local agency approval.
Existing law provides that a housing element or amendment is considered substantially compliant with the housing element law when the local agency adopts a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the departments compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the courts decision has not been overturned or superseded by a subsequent court decision or by statute, as applicable.
This bill would, instead, provide that a housing element or amendment is considered substantially compliant with the housing element law on the date when the governing body of a local agency adopts the housing element or amendment, provided that after the date the housing element or amendment is adopted and without further action by the governing body, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the departments compliance findings are not superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the courts decision is not overturned or superseded by a subsequent court decision or by statute.
The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the housing element to include, among other things, an identification and analysis of existing and projected housing needs. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development that includes, among other specified information, the number of units of housing demolished and new units of housing that have been issued a completed entitlement, a building permit, or a certificate of occupancy.This bill would, for the 7th and subsequent revisions of the housing element, require the city or county to additionally include in the annual report the number of suite-style student housing quarters, subject to specified requirements, within the number of housing units demolished and new units. By requiring a city or county to include additional information in the annual report, the bill would impose a state-mandated local program.The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that 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 within its boundaries that includes, among other things, a housing element. That law requires the housing element to include, among other things, an identification and analysis of existing and projected housing needs. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development that includes, among other specified information, the number of units of housing demolished and new units of housing that have been issued a completed entitlement, a building permit, or a certificate of occupancy.
This bill would, for the 7th and subsequent revisions of the housing element, require the city or county to additionally include in the annual report the number of suite-style student housing quarters, subject to specified requirements, within the number of housing units demolished and new units. By requiring a city or county to include additional information in the annual report, the bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Legislature finds and declares all of the following:
(a)Ensuring that each city and county accommodates its fair share of regionally needed housing is a matter of supreme statewide importance.
(b)The process for writing, reviewing, and implementing housing elements is time consuming and costly for local and state officials due to an accumulation of detailed statutory requirements and demanding judicial decisions.
(c)Current law presupposes that local and state officials can figure out which sites are likely to be developed during the planning period, yet local governments do not own most developable sites and public officials are often unable to acquire credible information about each site owners intentions. Moreover, site owners and their intentions may change over the eight-year planning period.
(d)Without knowing which sites will be developed during the planning period, it is possible to statistically estimate the average probability of development of sites of a defined class using historical data on site characteristics, regulations, and prices. Several cities, including the Cities of Los Angeles and San Francisco, commissioned statistical models as guides for their sixth cycle housing elements.
(e)It is the Legislatures intent to simplify the writing and review of seventh housing elements by authorizing the Department of Housing and Community Development to issue safe harbor formulas and associated user interfaces or other tools, for assessing the capacity of sites under the regulatory status quo and under local governments rezoning and constraint removal programs. These formulas and associated user interfaces or tools may be developed by the department or by third-party researchers with relevant economic and statistical expertise.
(f)It is the Legislatures intent that if a local government elects to use a formula approved by the Department of Housing and Community Development to estimate site capacity and properly applies it, the local government will be assured that it will be found compliant with the corresponding statutory requirements.
(g)It is the intent of the Legislature that nothing in this act be construed to authorize or impose a new requirement that sites be subject to a local ordinance requiring or providing bonuses for deed-restricted affordable housing in order for the site to count toward a citys or countys regional housing need allocation (RNHA) below the above moderate income level.
SEC. 2.Section 65583 of the Government Code is amended to read:65583.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 those 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)(A)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.
(B)(i)The analysis described in subparagraph (A) may rely on a formula promulgated or approved by the department pursuant to Section 65583.01 for purposes of estimating the realistic development capacity of sites in the inventory.
(ii)Use of the formula described in clause (i) shall not be a substitute for the analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing.
(C)The inventory shall specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, pursuant to paragraph (1) of subdivision (c), to accommodate the citys or countys share of regional housing need.
(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, and all services provided onsite, including the addition or expansion of services that are consistent with any written, objective standards pursuant to subparagraph (B).
(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.
(A)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).
(B)(i)For adoption of the seventh and all subsequent revisions of the housing element, the analysis shall also include a potential and actual governmental constraints disclosure statement containing both of the following:
(I)An identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department.
(II)An identification of any new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that the governing body of the local government can anticipate adopting during the first three years of the planning period commencing on the date that a local agencys housing element is considered to be in substantial compliance pursuant to Section 65585.03.
(ii)For the purposes of this subparagraph, anticipate adopting means a legislative body of the local government had, after the due date of the previous housing element and before submittal of the current draft housing element, identified in an agenda published by a legislative body of the local government pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) an action to consider the adoption, amendment, or increase in the stringency of a potential or actual governmental constraint.
(iii)This subparagraph shall not be construed to prohibit a local government from adopting, amending, or increasing the stringency of a potential or actual governmental constraint regardless of whether it was included in a potential and actual governmental constraints disclosure statement pursuant to this subparagraph.
(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, 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 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 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. 3.Section 65583.01 is added to the Government Code, to read:65583.01.(a)On or before July 1, 2028, the department shall take one of the following actions:
(1)Promulgate one or more formulas and associated user interfaces or other tools for the information described in subdivision (b).
(2)Approve one or more formulas and associated user interfaces or other tools developed by third parties for the information described in subdivision (b).
(b)Except as provided in subdivision (d), the formula and associated user interfaces or other tools promulgated or approved by the department pursuant to subdivision (a) shall allow for a determination to be made for all of the following:
(1)The realistic capacity of housing element inventory sites under the regulatory status quo, as required by subdivisions (c) and (g) of Section 65583.2. The formulas shall provide a presumptive probability of development and a total number of new units if the site is developed, with realistic capacity defined as the product of these terms.
(2)The additional realistic capacity that will be provided by a program of rezoning or constraint removal, under paragraph (1) or (3) of subdivision (c) of Section 65583 or subdivision (h) of Section 65583.2. The formulas shall provide a presumptive probability of development and a total number of units if the site is developed, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under paragraph (1).
(3)The realistic capacity for accessory dwelling units that will be developed and offered as housing during the planning period under subdivision (a) of Section 65583.1.
(c)A formula promulgated or approved by the department pursuant to subdivision (a) shall be based on historical data on the development and redevelopment of a site or area, statistically related site characteristics, and, if available, other information probative of a sites probability of development or the total number of units if the site is developed.
(d)(1)A formula promulgated or approved by the department pursuant to subdivision (a) may, for purposes of determining capacity for housing at a level of affordability at or below an above-moderate income, exclude sites where size or zoning is not conducive to project sizes or densities that the department deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
(2)The postrezoning capacity of any lower-income site which is subject to a program of rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall be counted only if that program will zone the site 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.
(3)The realistic capacity of an eligible site for housing at a level of affordability at or below an above-moderate income shall be based on the sites probability of development during the planning period multiplied by the expected total number of units if the site is developed.
(4)A formula promulgated or approved by the department pursuant to subdivision (a) may be limited to specified cities or counties if data availability or other reasonable considerations preclude making the formula universal.
(5)Nothing in this section shall excuse a city, county, or city and county from its obligation to identify specific sites adequate for the development of housing at various income levels pursuant to subdivision (c) of Section 65583.2.
(e)(1)The department may adopt emergency regulations pursuant to Section 11346.1 to implement this section.
(2)Notwithstanding Section 11346.1, emergency regulations adopted pursuant to this subdivision shall remain in effect until the date that permanent regulations to implement this section become effective.
(3)A formula, associated user interface, or tool promulgated or approved by the department shall not limit a local governments discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
(f)(1)A court may review whether a city or county that elected to use a formula promulgated or approved under subdivision (a) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(2)Except as provided in paragraph (1), the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
(g)A city or county shall not be required to use a formula, associated user interface, or tool promulgated or approved by the department under subdivision (a).
(h)The department may hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
(i)The formulas, user interfaces, and other tools developed pursuant to this section shall be used solely for the purposes of estimating realistic development capacity of sites, and use of such formulas, user interfaces, and other tools shall not excuse a city, county, or city and county from any other requirement of this article.
(j)For purposes of this section, total number of new units means the sum of new units across all levels of affordability.
SEC. 4.Section 65583.1 of the Government Code, as amended by Section 5 of Chapter 56 of the Statutes of 2026, 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 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. 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.
(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, all of the following have occurred:
(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.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below market value, as documented by a qualified, independent appraisal.
(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(6)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.
(7)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.
(8)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. 5.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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, 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)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)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)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)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)(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)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 6.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)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)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)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)This section shall become operative on December 31, 2028.
The Legislature finds and declares all of the following:
(a)Ensuring that each city and county accommodates its fair share of regionally needed housing is a matter of supreme statewide importance.
(b)The process for writing, reviewing, and implementing housing elements is time consuming and costly for local and state officials due to an accumulation of detailed statutory requirements and demanding judicial decisions.
(c)Current law presupposes that local and state officials can figure out which sites are likely to be developed during the planning period, yet local governments do not own most developable sites and public officials are often unable to acquire credible information about each site owners intentions. Moreover, site owners and their intentions may change over the eight-year planning period.
(d)Without knowing which sites will be developed during the planning period, it is possible to statistically estimate the average probability of development of sites of a defined class using historical data on site characteristics, regulations, and prices. Several cities, including the Cities of Los Angeles and San Francisco, commissioned statistical models as guides for their sixth cycle housing elements.
(e)It is the Legislatures intent to simplify the writing and review of seventh housing elements by authorizing the Department of Housing and Community Development to issue safe harbor formulas and associated user interfaces or other tools, for assessing the capacity of sites under the regulatory status quo and under local governments rezoning and constraint removal programs. These formulas and associated user interfaces or tools may be developed by the department or by third-party researchers with relevant economic and statistical expertise.
(f)It is the Legislatures intent that if a local government elects to use a formula approved by the Department of Housing and Community Development to estimate site capacity and properly applies it, the local government will be assured that it will be found compliant with the corresponding statutory requirements.
(g)It is the intent of the Legislature that nothing in this act be construed to authorize or impose a new requirement that sites be subject to a local ordinance requiring or providing bonuses for deed-restricted affordable housing in order for the site to count toward a citys or countys regional housing need allocation (RNHA) below the above moderate income level.
SEC. 2.Section 65583 of the Government Code is amended to read:65583.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 those 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)(A)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.
(B)(i)The analysis described in subparagraph (A) may rely on a formula promulgated or approved by the department pursuant to Section 65583.01 for purposes of estimating the realistic development capacity of sites in the inventory.
(ii)Use of the formula described in clause (i) shall not be a substitute for the analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing.
(C)The inventory shall specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, pursuant to paragraph (1) of subdivision (c), to accommodate the citys or countys share of regional housing need.
(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, and all services provided onsite, including the addition or expansion of services that are consistent with any written, objective standards pursuant to subparagraph (B).
(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.
(A)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).
(B)(i)For adoption of the seventh and all subsequent revisions of the housing element, the analysis shall also include a potential and actual governmental constraints disclosure statement containing both of the following:
(I)An identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department.
(II)An identification of any new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that the governing body of the local government can anticipate adopting during the first three years of the planning period commencing on the date that a local agencys housing element is considered to be in substantial compliance pursuant to Section 65585.03.
(ii)For the purposes of this subparagraph, anticipate adopting means a legislative body of the local government had, after the due date of the previous housing element and before submittal of the current draft housing element, identified in an agenda published by a legislative body of the local government pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) an action to consider the adoption, amendment, or increase in the stringency of a potential or actual governmental constraint.
(iii)This subparagraph shall not be construed to prohibit a local government from adopting, amending, or increasing the stringency of a potential or actual governmental constraint regardless of whether it was included in a potential and actual governmental constraints disclosure statement pursuant to this subparagraph.
(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, 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 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 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. 3.Section 65583.01 is added to the Government Code, to read:65583.01.(a)On or before July 1, 2028, the department shall take one of the following actions:
(1)Promulgate one or more formulas and associated user interfaces or other tools for the information described in subdivision (b).
(2)Approve one or more formulas and associated user interfaces or other tools developed by third parties for the information described in subdivision (b).
(b)Except as provided in subdivision (d), the formula and associated user interfaces or other tools promulgated or approved by the department pursuant to subdivision (a) shall allow for a determination to be made for all of the following:
(1)The realistic capacity of housing element inventory sites under the regulatory status quo, as required by subdivisions (c) and (g) of Section 65583.2. The formulas shall provide a presumptive probability of development and a total number of new units if the site is developed, with realistic capacity defined as the product of these terms.
(2)The additional realistic capacity that will be provided by a program of rezoning or constraint removal, under paragraph (1) or (3) of subdivision (c) of Section 65583 or subdivision (h) of Section 65583.2. The formulas shall provide a presumptive probability of development and a total number of units if the site is developed, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under paragraph (1).
(3)The realistic capacity for accessory dwelling units that will be developed and offered as housing during the planning period under subdivision (a) of Section 65583.1.
(c)A formula promulgated or approved by the department pursuant to subdivision (a) shall be based on historical data on the development and redevelopment of a site or area, statistically related site characteristics, and, if available, other information probative of a sites probability of development or the total number of units if the site is developed.
(d)(1)A formula promulgated or approved by the department pursuant to subdivision (a) may, for purposes of determining capacity for housing at a level of affordability at or below an above-moderate income, exclude sites where size or zoning is not conducive to project sizes or densities that the department deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
(2)The postrezoning capacity of any lower-income site which is subject to a program of rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall be counted only if that program will zone the site 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.
(3)The realistic capacity of an eligible site for housing at a level of affordability at or below an above-moderate income shall be based on the sites probability of development during the planning period multiplied by the expected total number of units if the site is developed.
(4)A formula promulgated or approved by the department pursuant to subdivision (a) may be limited to specified cities or counties if data availability or other reasonable considerations preclude making the formula universal.
(5)Nothing in this section shall excuse a city, county, or city and county from its obligation to identify specific sites adequate for the development of housing at various income levels pursuant to subdivision (c) of Section 65583.2.
(e)(1)The department may adopt emergency regulations pursuant to Section 11346.1 to implement this section.
(2)Notwithstanding Section 11346.1, emergency regulations adopted pursuant to this subdivision shall remain in effect until the date that permanent regulations to implement this section become effective.
(3)A formula, associated user interface, or tool promulgated or approved by the department shall not limit a local governments discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
(f)(1)A court may review whether a city or county that elected to use a formula promulgated or approved under subdivision (a) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(2)Except as provided in paragraph (1), the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
(g)A city or county shall not be required to use a formula, associated user interface, or tool promulgated or approved by the department under subdivision (a).
(h)The department may hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
(i)The formulas, user interfaces, and other tools developed pursuant to this section shall be used solely for the purposes of estimating realistic development capacity of sites, and use of such formulas, user interfaces, and other tools shall not excuse a city, county, or city and county from any other requirement of this article.
(j)For purposes of this section, total number of new units means the sum of new units across all levels of affordability.
SEC. 4.Section 65583.1 of the Government Code, as amended by Section 5 of Chapter 56 of the Statutes of 2026, 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 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. 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.
(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, all of the following have occurred:
(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.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below market value, as documented by a qualified, independent appraisal.
(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(6)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.
(7)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.
(8)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. 5.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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, 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)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)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)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)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)(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)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 6.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)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)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)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)This section shall become operative on December 31, 2028.
The Legislature finds and declares all of the following:
(a)Ensuring that each city and county accommodates its fair share of regionally needed housing is a matter of supreme statewide importance.
(b)The process for writing, reviewing, and implementing housing elements has become very burdensome is time consuming and costly for local and state officials due to an accumulation of detailed statutory requirements and demanding judicial decisions.
(c)Current law presupposes that local and state officials can figure out which sites are likely to be developed during the planning period, yet local governments do not own most developable sites and public officials are often unable to acquire credible information about each site owners intentions. Moreover, site owners and their intentions may change over the eight-year planning period.
(d)Without knowing which sites will be developed during the planning period, it is possible to statistically estimate the average probability of development of sites of a defined class using historical data on site characteristics, regulations, and prices. Several cities, including the Cities of Los Angeles and San Francisco, commissioned statistical models as guides for their sixth cycle housing elements.
(e)It is the Legislatures intent to simplify the writing and review of seventh housing elements by authorizing the Department of Housing and Community Development to issue safe harbor formulas and associated user interfaces or other tools, for assessing the capacity of sites under the regulatory status quo and under local governments rezoning and constraint removal programs. These formulas and associated user interfaces or tools may be developed by the department or by third-party researchers with relevant economic and statistical expertise.
(f)It is the Legislatures intent that if a local government elects to use a formula approved by the Department of Housing and Community Development to estimate site capacity and properly applies it, the local government will be assured that it will be found compliant with the corresponding statutory requirements.
(g)It is the intent of the Legislature that nothing in this act be construed to authorize or impose a new requirement that sites be subject to a local ordinance requiring or providing bonuses for deed-restricted affordable housing in order for the site to count toward a citys or countys regional housing need allocation (RNHA) below the above moderate income level.
SEC. 2.Section 65583 of the Government Code is amended to read:65583.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 those 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)(A)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.
(B)(i)The analysis described in subparagraph (A) may rely on a formula promulgated or approved by the department pursuant to Section 65583.01 for purposes of estimating the realistic development capacity of sites in the inventory.
(ii)Use of the formula described in clause (i) shall not be a substitute for the analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing.
(C)The inventory shall specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, pursuant to paragraph (1) of subdivision (c), to accommodate the citys or countys share of regional housing need.
(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, and all services provided onsite, including the addition or expansion of services that are consistent with any written, objective standards pursuant to subparagraph (B).
(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.
(A)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).
(B)(i)For adoption of the seventh and all subsequent revisions of the housing element, the analysis shall also include a potential and actual governmental constraints disclosure statement containing both of the following:
(I)An identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department.
(II)An identification of any new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that the governing body of the local government can anticipate adopting during the first three years of the planning period commencing on the date that a local agencys housing element is considered to be in substantial compliance pursuant to Section 65585.03.
(ii)For the purposes of this subparagraph, anticipate adopting means a legislative body of the local government had, after the due date of the previous housing element and before submittal of the current draft housing element, identified in an agenda published by a legislative body of the local government pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) an action to consider the adoption, amendment, or increase in the stringency of a potential or actual governmental constraint.
(iii)This subparagraph shall not be construed to prohibit a local government from adopting, amending, or increasing the stringency of a potential or actual governmental constraint regardless of whether it was included in a potential and actual governmental constraints disclosure statement pursuant to this subparagraph.
(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, 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 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 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. 3.Section 65583.01 is added to the Government Code, to read:65583.01.(a)On or before January July 1, 2028, the department shall take one of the following actions:
(1)Promulgate one or more formulas and associated user interfaces or other tools for the information described in subdivision (b).
(2)Approve one or more formulas and associated user interfaces or other tools developed by third parties for the information described in subdivision (b).
(b)Except as provided in subdivision (d), the formula and associated user interfaces or other tools promulgated or approved by the department pursuant to subdivision (a) shall allow for a determination to be made for all of the following:
(1)The realistic capacity of housing element inventory sites under the regulatory status quo, as required by subdivisions (c) and (g) of Section 65583.2. The formulas shall provide a presumptive probability of development and a total number of new units if the site is developed, with realistic capacity defined as the product of these terms.
(2)The additional realistic capacity that will be provided by a program of rezoning or constraint removal, under paragraph (1) or (3) of subdivision (c) of Section 65583 or subdivision (h) of Section 65583.2. The formulas shall provide a presumptive probability of development and a total number of units if the site is developed, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under paragraph (1).
(3)The realistic capacity for accessory dwelling units that will be developed and offered as housing during the planning period under subdivision (a) of Section 65583.1.
(c)A formula promulgated or approved by the department pursuant to subdivision (a) shall be based on historical data on the development and redevelopment of a site, site or area, statistically related site characteristics, and, if available, other information probative of a sites probability of development or the total number of units if the site is developed.
(d)(1)A formula promulgated or approved by the department pursuant to subdivision (a) may, for purposes of determining capacity for housing at a level of affordability at or below an above-moderate income, exclude sites where size or zoning is not conducive to project sizes or densities that the department deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development. The
(2)The postrezoning capacity of any lower-income site which is subject to a program of rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall be counted only if that program will zone the site 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.
(2)(3)The realistic capacity of an eligible site for housing at a level of affordability at or below an above-moderate income shall be based on the sites probability of development during the planning period multiplied by the expected total number of units if the site is developed.
(3)(4)A formula promulgated or approved by the department pursuant to subdivision (a) may be limited to specified cities or counties if data availability or other reasonable considerations preclude making the formula universal.
(5)Nothing in this section shall excuse a city, county, or city and county from its obligation to identify specific sites adequate for the development of housing at various income levels pursuant to subdivision (c) of Section 65583.2.
(e)(1)The department may adopt emergency regulations pursuant to Section 11346.1 to implement this section.
(2)The department shall adopt nonemergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 to implement this section no later than January 30, 2029.(2)Notwithstanding Section 11346.1, emergency regulations adopted pursuant to this subdivision shall remain in effect until the date that permanent regulations to implement this section become effective.
(3)A formula, associated user interface, or tool promulgated or approved by the department shall not limit a local governments discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
(f)(1)A court may review whether a city or county that elected to use a formula promulgated or approved under subdivision (a) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(2)Except as provided in paragraph (1), the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
(g)A city or county shall not be required to use a formula, associated user interface, or tool promulgated or approved by the department under subdivision (a).
(h)The department may hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
(i)The formulas, user interfaces, and other tools developed pursuant to this section shall be used solely for the purposes of estimating realistic development capacity of sites, and use of such formulas, user interfaces, and other tools shall not excuse a city, county, or city and county from any other requirement of this article.
(j)For purposes of this section, total number of new units means the sum of new units across all levels of affordability.
SEC. 4.Section 65583.1 of the Government Code, as amended by Section 5 of Chapter 56 of the Statutes of 2026, 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 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. 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.
(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, all of the following have occurred:
(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.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below market value, as documented by a qualified, independent appraisal.
(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(6)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.
(7)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.
(8)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. 5.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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, 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)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)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)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)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)(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)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 6.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)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)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)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)This section shall become operative on December 31, 2028.
The Legislature finds and declares all of the following:
(a)Ensuring that each city and county accommodates its fair share of regionally needed housing is a matter of supreme statewide importance.
(b)The process for writing, reviewing, and implementing housing elements has become very burdensome for local and state officials due to an accumulation of detailed statutory requirements and demanding judicial decisions.
(c)Current law presupposes that local and state officials can figure out which sites are likely to be developed during the planning period, yet local governments do not own most developable sites and public officials are often unable to acquire credible information about each site owners intentions. Moreover, site owners and their intentions may change over the eight-year planning period.
(d)Without knowing which sites will be developed during the planning period, it is possible to statistically estimate the average probability of development of sites of a defined class using historical data on site characteristics, regulations, and prices. Several cities, including the Cities of Los Angeles and San Francisco, commissioned statistical models as guides for their sixth cycle housing elements.
(e)It is the Legislatures intent to simplify the writing and review of seventh housing elements by authorizing the Department of Housing and Community Development to issue safe harbor formulas and associated user interfaces or other tools, for assessing the capacity of sites under the regulatory status quo and under local governments rezoning and constraint removal programs. These formulas and associated user interfaces or tools may be developed by the department or by third-party researchers with relevant economic and statistical expertise.
(f)It is the Legislatures intent that if a local government elects to use a formula approved by the Department of Housing and Community Development to estimate site capacity and properly applies it, the local government will be assured that it will be found compliant with the corresponding statutory requirements.
(g)It is the intent of the Legislature that nothing in this act be construed to authorize or impose a new requirement that sites be subject to a local ordinance requiring or providing bonuses for deed-restricted affordable housing in order for the site to count toward a citys or countys regional housing need allocation (RNHA) below the above moderate income level.
SEC. 2.Section 65583 of the Government Code is amended to read:65583.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 those 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)(A)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.
(B)(i)The analysis described in subparagraph (A) may rely on a formula promulgated or approved by the department pursuant to Section 65583.01. 65583.01 for purposes of estimating the realistic development capacity of sites in the inventory.
(ii)The city or county has satisfied the requirements of this paragraph, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.(ii)Use of the formula described in clause (i) shall not be a substitute for the analysis of the relationship of the sites identified in the land inventory to the jurisdictions duty to affirmatively further fair housing.
(C)The inventory shall specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, pursuant to paragraph (1) of subdivision (c), to accommodate the citys or countys share of regional housing need.
(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, and all services provided onsite, including the addition or expansion of services that are consistent with any written, objective standards pursuant to subparagraph (B).
(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.
(A)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).
(B)(i)For adoption of the seventh and all subsequent revisions of the housing element, the analysis shall also include a potential and actual governmental constraints disclosure statement containing both of the following:
(I)An identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department.
(II)An identification of any new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that the governing body of the local government can anticipate adopting during the first three years of the planning period commencing on the date that a local agencys housing element is considered to be in substantial compliance pursuant to Section 65585.03.
(ii)For the purposes of this subparagraph, anticipate adopting means a legislative body of the local government had, after the due date of the previous housing element and before submittal of the current draft housing element, identified in an agenda published by a legislative body of the local government pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) an action to consider the adoption, amendment, or increase in the stringency of a potential or actual governmental constraint.
(iii)This subparagraph shall not be construed to prohibit a local government from adopting, amending, or increasing the stringency of a potential or actual governmental constraint regardless of whether it was included in a potential and actual governmental constraints disclosure statement pursuant to this subparagraph.
(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, 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 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 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. 3.Section 65583.01 is added to the Government Code, to read:65583.01.(a)On or before January 1, 2028, the department shall take one of the following actions:
(1)Promulgate formulas and associated user interfaces or other tools for the information described in subdivision (b).
(2)Approve formulas and associated user interfaces or other tools developed by third parties for the information described in subdivision (b).
(b)Except as provided in subdivision (d), the formula and associated user interfaces or other tools promulgated or approved by the department pursuant to subdivision (a) shall allow for a determination to be made for all of the following:
(1)The realistic capacity of housing element inventory sites under the regulatory status quo, as required by subdivisions (c) and (g) of Section 65583.2. The formulas shall provide a presumptive probability of development at any level of affordability and a total number of new units conditional on development at any level of affordability for each site, if the site is developed, with realistic capacity defined as the product of these terms.
(2)The additional realistic capacity that will be provided by a program of rezoning or constraint removal, under paragraph (1) or (3) of subdivision (c) of Section 65583 or subdivision (h) of Section 65583.2. The formulas shall provide a presumptive probability of development at any level of affordability and a total number of units conditional on development at any level of affordability for each site, if the site is developed, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under paragraph (1).
(3)The realistic capacity for accessory dwelling units that will be developed and offered as housing during the planning period under subdivision (a) of Section 65583.1.
(c)A formula promulgated or approved by the department pursuant to subdivision (a) shall be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and, if available, other information probative of a sites probability of development or the total number of units conditional on development. if the site is developed.
(d)(1)A formula promulgated or approved by the department pursuant to subdivision (a) may, for purposes of determining capacity for housing at a level of affordability at or below above-moderate an above-moderate income, exclude sites where size or zoning is not conducive to project sizes or densities that the department deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development. The postrezoning capacity of any lower-income site which is subject to a program of rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 shall be counted only if that program will zone the site 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.
(2)The realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate an above-moderate income shall be based on the sites probability of development during the planning period for housing at any level of affordability multiplied by the total expected units conditional on development at any level of affordability. expected total number of units if the site is developed.
(3)A formula promulgated or approved by the department pursuant to subdivision (a) may be limited to specified cities or counties if data availability or other reasonable considerations preclude making the formula universal.
(e)(1)The department shall comply with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 when promulgating, approving, or making a material change to a formula, associated user interface, or tool under subdivision (a). may adopt emergency regulations pursuant to Section 11346.1 to implement this section.
(2)A nonmaterial change to an approved formula, associated user interface, or tool may be implemented without the prior public notice of paragraph (1).(2)The department shall adopt nonemergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 to implement this section no later than January 30, 2029.
(3)A formula, associated user interface, or tool promulgated or approved by the department shall not limit a local governments discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
(f)(1)A court may review whether a city or county that elected to use a formula promulgated or approved under subdivision (a) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(2)Except as provided in paragraph (1), the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
(g)A city or county shall not be required to use a formula, associated user interface, or tool promulgated or approved by the department under subdivision (a).
(h)The department may hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
(i)The formulas, user interfaces, and other tools developed pursuant to this section shall be used solely for the purposes of estimating realistic development capacity of sites, and use of such formulas, user interfaces, and other tools shall not excuse a city, county, or city and county from any other requirement of this article.
(j)For purposes of this section, total number of new units means the sum of new units across all levels of affordability.
SEC. 4.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 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. 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)(1)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.(2)Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to 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, all of the following have occurred:(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.(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.(6)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.(7)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.(8)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 65583.1 of the Government Code, as amended by Section 5 of Chapter 56 of the Statutes of 2026, 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 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. 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.
(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, all of the following have occurred:
(I)The local government has determined that the unit is at imminent risk of loss to the housing stock.
(i)At the time the unit is identified for substantial rehabilitation, (I) the(II)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; 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. 7260.
(III)The local government requires that any displaced occupants will have the right to reoccupy the rehabilitated units.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below market value, as documented by a qualified, independent appraisal.
(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(5)(6)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)(7)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)(8)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. 5.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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, 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)Except as provided in paragraph (3), the 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)Except as provided in paragraph (3), the sites described in paragraph (1) 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.
(3)A city or county has satisfied the requirements of paragraphs (1) and (2), if the citys or countys rezoning plan provides sufficient realistic capacity to accommodate its share of regionally needed housing at all income levels according to the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.(i)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)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)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)(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)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 6.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)Except as provided in paragraph (3), the 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)Except as provided in paragraph (3), the sites described in paragraph (1) 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.
(3)A city or county has satisfied the requirements of paragraphs (1) and (2), if the citys or countys rezoning plan provides sufficient realistic capacity to accommodate its share of regionally needed housing at all income levels according to the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.(i)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)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)This section shall become operative on December 31, 2028.
The Legislature finds and declares all of the following:
(a)Ensuring that each city and county accommodates its fair share of regionally needed housing is a matter of supreme statewide importance.
(b)The process for writing, reviewing, and implementing housing elements has become very burdensome for local and state officials due to an accumulation of detailed statutory requirements and demanding judicial decisions.
(c)Current law presupposes that local and state officials can figure out which sites are likely to be developed during the planning period, yet local governments do not own most developable sites and public officials are often unable to acquire credible information about each site owners intentions. Moreover, site owners and their intentions may change over the eight-year planning period.
(d)Without knowing which sites will be developed during the planning period, it is possible to statistically estimate the average probability of development of sites of a defined class using historical data on site characteristics, regulations, and prices. Several cities, including the Cities of Los Angeles and San Francisco, commissioned statistical models as guides for their sixth cycle housing elements.
(e)It is the Legislatures intent to simplify the writing and review of seventh housing elements by authorizing the Department of Housing and Community Development to issue safe harbor formulas and associated user interfaces or other tools, for assessing the capacity of sites under the regulatory status quo and under local governments rezoning and constraint removal programs. These formulas and associated user interfaces or tools may be developed by the department or by third-party researchers with relevant economic and statistical expertise.
(f)It is the Legislatures intent that if a local government elects to use a formula approved by the Department of Housing and Community Development and properly applies it, the local government will be assured that it will be found compliant with the corresponding statutory requirements.
SEC. 2.Section 65583 of the Government Code is amended to read:65583.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 those 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)(A)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.
(B)(i)The analysis described in subparagraph (A) may rely on a formula promulgated or approved by the department pursuant to Section 65583.01.
(ii)The city or county has satisfied the requirements of this paragraph, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(C)The inventory shall specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, pursuant to paragraph (1) of subdivision (c), to accommodate the citys or countys share of regional housing need.
(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, and all services provided onsite, including the addition or expansion of services that are consistent with any written, objective standards pursuant to subparagraph (B).
(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.
(A)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).
(B)(i)For adoption of the seventh and all subsequent revisions of the housing element, the analysis shall also include a potential and actual governmental constraints disclosure statement containing both of the following:
(I)An identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department.
(II)An identification of any new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that the governing body of the local government can anticipate adopting during the first three years of the planning period commencing on the date that a local agencys housing element is considered to be in substantial compliance pursuant to Section 65585.03.
(ii)For the purposes of this subparagraph, anticipate adopting means a legislative body of the local government had, after the due date of the previous housing element and before submittal of the current draft housing element, identified in an agenda published by a legislative body of the local government pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) an action to consider the adoption, amendment, or increase in the stringency of a potential or actual governmental constraint.
(iii)This subparagraph shall not be construed to prohibit a local government from adopting, amending, or increasing the stringency of a potential or actual governmental constraint regardless of whether it was included in a potential and actual governmental constraints disclosure statement pursuant to this subparagraph.
(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, 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 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 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. 3.Section 65583.01 is added to the Government Code, to read:65583.01.(a)On or before January 1, 2028, the department shall take one of the following actions:
(1)Promulgate formulas and associated user interfaces or other tools for the information described in subdivision (b).
(2)Approve formulas and associated user interfaces or other tools developed by third parties for the information described in subdivision (b).
(b)Except as provided in subdivision (d), the formula and associated user interfaces or other tools promulgated or approved by the department pursuant to subdivision (a) shall allow for a determination to be made for all of the following:
(1)The realistic capacity of housing element inventory sites under the regulatory status quo, as required by subdivisions (c) and (g) of Section 65583.2. The formulas shall provide a presumptive probability of development at any level of affordability and a number of new units conditional on development at any level of affordability for each site, with realistic capacity defined as the product of these terms.
(2)The additional realistic capacity that will be provided by a program of rezoning or constraint removal, under paragraph (1) or (3) of subdivision (c) of Section 65583 or subdivision (h) of Section 65583.2. The formulas shall provide a presumptive probability of development at any level of affordability and a number of units conditional on development at any level of affordability for each site, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under paragraph (1).
(3)The realistic capacity for accessory dwelling units under subdivision (a) of Section 65583.1.
(c)A formula promulgated or approved by the department pursuant to subdivision (a) shall be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and, if available, other information probative of a sites probability of development or the total number of units conditional on development.
(d)(1)A formula promulgated or approved by the department pursuant to subdivision (a) may, for purposes of determining capacity for housing at a level of affordability at or below above-moderate income, exclude sites where size or zoning is not conducive to project sizes or densities that the department deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
(2)The realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate income shall be based on the sites probability of development during the planning period for housing at any level of affordability multiplied by the total expected units conditional on development at any level of affordability.
(3)A formula promulgated or approved by the department pursuant to subdivision (a) may be limited to specified cities or counties if data availability or other reasonable considerations preclude making the formula universal.
(e)(1)At least 60 days before The department shall comply with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 when promulgating, approving, or making a material change to a formula, associated user interface, or tool under subdivision (a), the department shall make the proposed formula, associated user interface or tool, and any supporting documentation available through a public website with a form or email address for submission of written comments by members of the public. (a).
(2)Notwithstanding any other law, any rule, policy, or standard of general application issued by the department to implement this section, including a formula, associated user interface, or tool promulgated or approved under subdivision (a), shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. (3)(2)A nonmaterial change to an approved formula, associated user interface, or tool may be implemented without the prior public notice of paragraph (1).
(f)(1)Except as provided in paragraph (2), any formula, associated user interface, or tool promulgated or approved under subdivision (a) shall not be subject to judicial review.(2)(f)(1)A court may review whether a city or county that elected to use a formula promulgated or approved under subdivision (a) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(2)Except as provided in paragraph (1), the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
(g)A city or county shall not be required to use a formula, associated user interface, or tool promulgated or approved by the department under subdivision (a).
(h)The department may hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
SEC. 4.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 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. 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)(1)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.
(2)Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to 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, all of the following have occurred:
(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.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.
(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(6)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.
(7)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.
(8)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. 5.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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, 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)Except as provided in paragraph (3), 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)Except as provided in paragraph (3), the sites described in paragraph (1) 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.
(3)A city or county has satisfied the requirements of paragraphs (1) and (2), if the citys or countys rezoning plan provides sufficient realistic capacity to accommodate its share of regionally needed housing at all income levels according to the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(i)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)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)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)(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)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 6.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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 provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)Except as provided in paragraph (3), 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)Except as provided in paragraph (3), the sites described in paragraph (1) 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.
(3)A city or county has satisfied the requirements of paragraphs (1) and (2), if the citys or countys rezoning plan provides sufficient realistic capacity to accommodate its share of regionally needed housing at all income levels according to the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(i)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)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)This section shall become operative on December 31, 2028.
The Legislature finds and declares all of the following:
(a)Ensuring that each city and county accommodates its fair share of regionally needed housing is a matter of supreme statewide importance.
(b)The process for writing, reviewing, and implementing housing elements has become very burdensome for local and state officials due to an accumulation of detailed statutory requirements and demanding judicial decisions.
(c)Current law presupposes that local and state officials can figure out which sites are likely to be developed during the planning period, yet local governments do not own most developable sites and public officials are often unable to acquire credible information about each site owners intentions. Moreover, site owners and their intentions may change over the eight-year planning period.
(d)Without knowing which sites will be developed during the planning period, it is possible to statistically estimate the average probability of development of sites of a defined class using historical data on site characteristics, regulations, and prices. Several cities, including the Cities of Los Angeles and San Francisco, commissioned statistical models as guides for their sixth cycle housing elements.
(e)It is the Legislatures intent to simplify the writing and review of seventh housing elements by authorizing the Department of Housing and Community Development to issue safe harbor formulas and associated user interfaces or other tools, for assessing the capacity of sites under the regulatory status quo and under local governments rezoning and constraint removal programs. These formulas and associated user interfaces or tools may be developed by the department or by third-party researchers with relevant economic and statistical expertise.
(f)It is the Legislatures intent that if a local government elects to use a formula approved by the Department of Housing and Community Development and properly applies it, the local government will be assured that it will be found compliant with the corresponding statutory requirements.
SEC. 2.Section 65583 of the Government Code is amended to read:65583.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 those 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)(A)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.
(B)(i)The analysis described in subparagraph (A) may rely on a formula promulgated or approved by the department pursuant to Section 65583.01.
(ii)The city or county has satisfied the requirements of this paragraph, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(C)The inventory shall specify the number of units allowed to be built on each site at the time of the housing elements adoption, and the number that will be allowed after rezoning, pursuant to paragraph (1) of subdivision (c), to accommodate the citys or countys share of regional housing need.
(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, and all services provided onsite, including the addition or expansion of services that are consistent with any written, objective standards pursuant to subparagraph (B).
(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.
(A)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).
(B)(i)For adoption of the seventh and all subsequent revisions of the housing element, the analysis shall also include a potential and actual governmental constraints disclosure statement containing both of the following:
(I)An identification of each new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, adopted after the due date of the previous housing element and before submittal of the current draft housing element to the department.
(II)An identification of any new or amended potential or actual governmental constraint, or revision increasing the stringency of a governmental constraint, that the governing body of the local government can anticipate adopting during the first three years of the planning period commencing on the date that a local agencys housing element is considered to be in substantial compliance pursuant to Section 65585.03.
(ii)For the purposes of this subparagraph, anticipate adopting means a legislative body of the local government had, after the due date of the previous housing element and before submittal of the current draft housing element, identified in an agenda published by a legislative body of the local government pursuant to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5) an action to consider the adoption, amendment, or increase in the stringency of a potential or actual governmental constraint.
(iii)This subparagraph shall not be construed to prohibit a local government from adopting, amending, or increasing the stringency of a potential or actual governmental constraint regardless of whether it was included in a potential and actual governmental constraints disclosure statement pursuant to this subparagraph.
(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, 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 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 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. 3.Section 65583.01 is added to the Government Code, to read:65583.01.(a)On or before January 1, 2028, the department shall take one of the following actions:
(1)Promulgate formulas and associated user interfaces or other tools for the information described in subdivision (b).
(2)Approve formulas and associated user interfaces or other tools developed by third parties for the information described in subdivision (b).
(b)Except as provided in subdivision (d), the formula and associated user interfaces or other tools promulgated or approved by the department pursuant to subdivision (a) shall allow for a determination to be made for all of the following:
(1)The realistic capacity of housing element inventory sites under the regulatory status quo, as required by subdivisions (c) and (g) of Section 65583.2. The formulas shall provide a presumptive probability of development at any level of affordability and a number of new units conditional on development at any level of affordability for each site, with realistic capacity defined as the product of these terms.
(2)The additional realistic capacity that will be provided by a program of rezoning or constraint removal, under paragraph (1) or (3) of subdivision (c) of Section 65583 or subdivision (h) of Section 65583.2. The formulas shall provide a presumptive probability of development at any level of affordability and a number of units conditional on development at any level of affordability for each site, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under paragraph (1).
(3)The realistic capacity for accessory dwelling units under subdivision (a) of Section 65583.1.
(c)A formula promulgated or approved by the department pursuant to subdivision (a) shall be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and, if available, other information probative of a sites probability of development or the total number of units conditional on development.
(d)(1)A formula promulgated or approved by the department pursuant to subdivision (a) may, for purposes of determining capacity for housing at a level of affordability at or below above-moderate income, exclude sites where size or zoning is not conducive to project sizes or densities that the department deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
(2)The realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate income shall be based on the sites probability of development during the planning period for housing at any level of affordability multiplied by the total expected units conditional on development at any level of affordability.
(3)A formula promulgated or approved by the department pursuant to subdivision (a) may be limited to specified cities or counties if data availability or other reasonable considerations preclude making the formula universal.
(e)(1)At least 60 days before promulgating, approving, or making a material change to a formula, associated user interface, or tool under subdivision (a), the department shall make the proposed formula, associated user interface or tool, and any supporting documentation available through a public website with a form or email address for submission of written comments by members of the public.
(2)Notwithstanding any other law, any rule, policy, or standard of general application issued by the department to implement this section, including a formula, associated user interface, or tool promulgated or approved under subdivision (a), shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(3)A nonmaterial change to an approved formula, associated user interface, or tool may be implemented without the prior public notice of paragraph (1).
(f)(1)Except as provided in paragraph (2), any formula, associated user interface, or tool promulgated or approved under subdivision (a) shall not be subject to judicial review.
(2)A court may review whether a city or county that elected to use a formula promulgated or approved under subdivision (a) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(g)A city or county shall not be required to use a formula, associated user interface, or tool promulgated or approved by the department under subdivision (a).
(h)The department may hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
SECTION 1.SEC. 4.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 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. 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)(1)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.
(2)Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to 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, all of the following have occurred:
(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 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.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.
(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(6)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.
(7)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.
(8)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. 5.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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: as provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)The Except as provided in paragraph (3), 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 Except as provided in paragraph (3), the sites described in paragraph (1) 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.
(3)A city or county has satisfied the requirements of paragraphs (1) and (2), if the citys or countys rezoning plan provides sufficient realistic capacity to accommodate its share of regionally needed housing at all income levels according to the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(i)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)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)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)(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)This section shall remain in effect only until December 31, 2028, and as of that date is repealed.
SEC. 6.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 that are sufficient to provide for the jurisdictions share of the regional housing need for all income levels pursuant to Section 65584. 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: provided in paragraphs (1) to (4), inclusive, or by applying the applicable formula promulgated or approved by the department pursuant to Section 65583.01. The city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(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 using one of the following:
(A)(i)The applicable formula promulgated or approved by the department under Section 65583.01.
(ii)A city or county has satisfied the requirements of this subdivision, if the city or county uses the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(B)An alternative method. The alternative method 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 using an alternative method, as described in paragraph (1), and 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)The Except as provided in paragraph (3), 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 Except as provided in paragraph (3), the sites described in paragraph (1) 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.
(3)A city or county has satisfied the requirements of paragraphs (1) and (2), if the citys or countys rezoning plan provides sufficient realistic capacity to accommodate its share of regionally needed housing at all income levels according to the applicable formula promulgated or approved by the department under Section 65583.01, except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
(i)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)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)This section shall become operative on December 31, 2028.
(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 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. 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)(1)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.
(2)Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to 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, all of the following have occurred:
(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.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Reducing, waiving, or subsidizing development and impact fees.(B)(A)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(C)(B)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.
(D)(C)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(6)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.
(7)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.
(8)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.
(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 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. 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)(1)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(2)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 all of the following have occurred:
(I)The local government has determined that the unit is at imminent risk of loss to the housing stock, (II) the 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 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 7260.
(III)The local government requires that any displaced occupants will have the right to reoccupy the rehabilitated units, and (IV) the units.
(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, in-kind services means nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this subdivision. In-kind services include, but are not limited to, all of the following:
(A)Reducing, waiving, or subsidizing development and impact fees.
(B)Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
(C)The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.
(D)Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
(5)(6)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)(7)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)(8)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.
All matter omitted in this version of the bill appears in the bill as amended in the Senate, April 21, 2025. (JR11)A housing element or amendment shall be considered to be in substantial compliance with this article on the date when the governing body of a local agency adopts the housing element or amendment for the current planning period in accordance with Section 65585, provided that either of the following occurs after the date the housing element or amendment is adopted and without further action by the governing body:
(a)The department finds that the adopted housing element or amendment is in substantial compliance with this article and the departments compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction.
(b)A court of competent jurisdiction determines that the adopted housing element or amendment substantially complies with this article and the courts decision has not been overturned or superseded by a subsequent court decision or by statute.
SEC. 2.Section 65589.5 of the Government Code is amended to read:65589.5.(a)(1)The Legislature finds and declares all of the following:
(A)The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California.
(B)California housing has become the most expensive in the nation. The excessive cost of the states housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing.
(C)Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.
(D)Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.
(2)In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following:
(A)California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the states environmental and climate objectives.
(B)While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor.
(C)The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability.
(D)According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025.
(E)Californias overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of Californias households are able to afford the cost of housing in their local regions.
(F)Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians.
(G)The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent.
(H)When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees.
(I)An additional consequence of the states cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. Californias cumulative housing shortfall therefore has not only national but international environmental consequences.
(J)Californias housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section.
(K)The Legislatures intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of Californias communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled.
(L)It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.
(3)It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently.
(4)It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments.
(b)It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d).
(c)The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas.
(d)For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
(1)The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards.
(2)The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety:
(A)Inconsistency with the zoning ordinance or general plan land use designation.
(B)The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
(3)The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.
(4)The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project.
(5)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation as specified in any element of the general plan.
(A)This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete.
(B)If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583.
(C)(i)Notwithstanding subdivision (h), for purposes of this paragraph, deemed complete means the applicant has submitted a complete application pursuant to Section 65943.
(ii)This Notwithstanding paragraph (7) of subdivision (f), this subparagraph applies to an application that, as of January 1, 2026, has not met both of the following criteria:
(I)Received a local agency approval.
(II)Incurred substantial liability in good faith reliance upon the local agency approval.
(6)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builders remedy project.
(e)Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)(1)Except as provided in paragraphs (6) and (8) of this subdivision, and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdictions share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a projects eligibility for a density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915.
(2)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdictions need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project.
(3)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter.
(4)For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity.
(5)For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter.
(6)Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builders remedy project:
(A)A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. If the local agency has no general plan designation or zoning classification that would have allowed the density and unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the projects density and unit type, and those shall apply.
(B)(i)Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following:
(I)Render the project infeasible.
(II)Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant.
(ii)The local agency shall bear the burden of proof of complying with clause (i).
(C)(i)A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915.
(ii)For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builders remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iii)A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iv)A project that dedicates units to extremely low-income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915.
(v)All units dedicated to extremely low-income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915.
(D)(i)The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval.
(ii)The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant.
(iii)Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose.
(E)A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builders remedy project.
(F)(i)A builders remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123.
(ii)A builders remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4.
(G)(i)(I)If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement.
(II)Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind.
(III)Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement.
(ii)Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units.
(iii)Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law.
(7)(A)For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builders remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025.
(B)Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builders remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more.
(8)A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9).
(9)For purposes of this subdivision, objective, quantifiable, written development standards, conditions, and policies means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project.
(g)This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem.
(h)The following definitions apply for the purposes of this section:
(1)Feasible means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors.
(2)Housing development project means a use consisting of any of the following:
(A)Residential units only.
(B)Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions:
(i)At least two-thirds of the new or converted square footage is designated for residential use.
(ii)At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following:
(I)The project includes at least 500 net new residential units.
(II)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(iii)At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following:
(I)The project includes at least 500 net new residential units.
(II)The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use.
(III)The project demolishes at least 50 percent of the existing nonresidential uses on the site.
(IV)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(C)Transitional housing or supportive housing.
(D)Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(3)(A)Housing for very low, low-, or moderate-income households means housing for lower income households, mixed-income households, or moderate-income households.
(B)Housing for lower income households means a housing development project in which 100 percent of the units, excluding managers units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(C)(i)Housing for mixed-income households means any of the following:
(I)A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code.
(II)A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to very low income households, as defined in Section 50105 of the Health and Safety Code.
(III)A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre.
(ii)All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following:
(I)The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(II)The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years.
(D)Housing for moderate-income households means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4)Area median income means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.
(5)Notwithstanding any other law, until January 1, 2030, deemed complete means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete.
(6)Disapprove the housing development project includes any instance in which a local agency does any of the following:
(A)Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit.
(B)Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph.
(C)Fails to meet the time limits specified in Section 65913.3.
(D)Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met:
(i)The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100.
(ii)Within five working days of receiving the applicants written notice described in clause (i), the local agency shall post the notice on the local agencys internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code.
(iii)The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicants written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i).
(iv)Within 90 days of receipt of the applicants written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements:
(I)The findings articulate an objective basis for why the challenged course of conduct is necessary.
(II)The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing.
(v)(I)If a local agency continues the challenged course of conduct described in the applicants written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant.
(II)If an applicant challenges a local agencys course of conduct as a disapproval under this subparagraph, the local agencys written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agencys course of conduct constitutes a disapproval of the housing development project under this subparagraph.
(vi)A local agencys action in furtherance of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph.
(E)Fails to comply with Section 65905.5. For purposes of this subparagraph, a builders remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete.
(F)(i)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agencys submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist.
(ii)In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination.
(iii)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agencys submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943.
(iv)If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section.
(G)Violates subparagraph (D) or (E) of paragraph (6) of subdivision (f).
(H)Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions (c) and (d) of Section 65941.1.
(I)(i)Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(J)(i)Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(7)(A)For purposes of this section and Sections 65589.5.1 and 65589.5.2, lawful determination means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2.
(B)This paragraph shall become inoperative on January 1, 2031.
(8)Lower density includes any conditions that have the same effect or impact on the ability of the project to provide housing.
(9)Until January 1, 2030, objective means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.
(10)Notwithstanding any other law, until January 1, 2030, determined to be complete means that the applicant has submitted a complete application pursuant to Section 65943.
(11)Builders remedy project means a project that meets all of the following criteria:
(A)The project is a housing development project that provides housing for very low, low-, or moderate-income households.
(B)On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article.
(C)The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions:
(i)The density does not exceed the greatest of the following densities:
(I)Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(II)Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater.
(III)The density that is consistent with the density specified in the housing element.
(ii)Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following:
(I)One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(II)A very low vehicle travel area, as defined in subdivision (h).
(III)A high or highest resource census tract, as identified by the latest edition of the CTCAC/HCD Opportunity Map published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development.
(D)(i)On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site.
(I)For purposes of this subparagraph, commuter rail means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares.
(II)For purposes of this subparagraph, heavy rail means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading.
(ii)On all other sites with a minimum density requirement, the density of the project shall not be less than the local agencys minimum density or one-half of the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower.
(E)The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16.
(12)Condition approval includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies.
(13)Unit type means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel.
(14)Proposed by the applicant means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses.
(i)If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development projects application is complete, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o).
(j)(1)When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(2)(A)If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows:
(i)Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units.
(ii)Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units.
(B)If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(3)For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision.
(4)For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project.
(k)(1)(A)(i)The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii):
(I)The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section.
(II)The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section.
(III)(ia)Subject to sub-subclause (ib), the local agency, in violation of subdivision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted.
(ib)This subclause shall become inoperative on January 1, 2030.
(IV)The local agency violated a provision of this section applicable to a builders remedy project.
(ii)If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorneys fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorneys fees in either of the following instances:
(I)The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section.
(II)(ia)In a case concerning a disapproval within the meaning of subparagraph (I) or (J) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a substantial ground for difference of opinion at the time of the disapproval.
(ib)This subclause shall become inoperative on January 1, 2031.
(B)Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agencys progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households.
(C)If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency.
(D)Nothing in this section shall limit the courts inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure.
(2)For purposes of this subdivision, housing organization means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorneys fees and costs if it is the prevailing party in an action to enforce this section.
(l)If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the courts order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, bad faith includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit.
(m)(1)Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial courts order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant.
(2)(A)A disapproval within the meaning of subparagraph (I) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(3)(A)A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(n)In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioners points and authorities, (2) by the respondent with respondents points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs.
(o)(1)Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted.
(2)Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances:
(A)In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction.
(B)A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
(C)Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(D)The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph:
(i)Affordable housing project means a housing development that satisfies both of the following requirements:
(I)Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915.
(II)All of the units within the development, excluding managers units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code.
(ii)Final approval means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met:
(I)The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed.
(II)If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project.
(E)The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided. For purposes of this subdivision, square footage of construction means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations).
(3)This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted.
(4)For purposes of this subdivision, ordinances, policies, and standards includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions.
(5)This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section.
(6)This subdivision shall not restrict the authority of a public agency or local agency to require mitigation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(7)With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing.
(8)(A)This subdivision shall apply to a housing development project that submits a preliminary application pursuant to Section 65941.1 before January 1, 2030.
(B)This subdivision shall become inoperative on January 1, 2034.
(p)(1)Upon any motion for an award of attorneys fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agencys approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agencys approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorneys fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2.
(2)This subdivision shall become inoperative on January 1, 2031.
(q)This section shall be known, and may be cited, as the Housing Accountability Act.
(r)The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
A housing element or amendment shall be considered to be in substantial compliance with this article on the date when the governing body of a local agency adopts the housing element or amendment for the current planning period in accordance with Section 65585 and 65585, provided that either of the following apply: occurs after the date the housing element or amendment is adopted and without further action by the governing body:
(a)The department finds that the adopted housing element or amendment is in substantial compliance with this article and the departments compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction.
(b)A court of competent jurisdiction determines that the adopted housing element or amendment substantially complies with this article and the courts decision has not been overturned or superseded by a subsequent court decision or by statute.
SEC. 2.Section 65589.5 of the Government Code is amended to read:65589.5.(a)(1)The Legislature finds and declares all of the following:
(A)The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California.
(B)California housing has become the most expensive in the nation. The excessive cost of the states housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing.
(C)Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.
(D)Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.
(2)In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following:
(A)California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the states environmental and climate objectives.
(B)While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor.
(C)The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability.
(D)According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025.
(E)Californias overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in home ownership rates as well as in the supply of housing per capita. Only one-half of Californias households are able to afford the cost of housing in their local regions.
(F)Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians.
(G)The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent.
(H)When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees.
(I)An additional consequence of the states cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. Californias cumulative housing shortfall therefore has not only national but international environmental consequences.
(J)Californias housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section.
(K)The Legislatures intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of Californias communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled.
(L)It is the policy of the state that this section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.
(3)It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently.
(4)It is the intent of the Legislature that the amendments removing provisions from subparagraphs (D) and (E) of paragraph (6) of subdivision (h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments.
(b)It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d).
(c)The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas.
(d)For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:
(1)The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards.
(2)The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety:
(A)Inconsistency with the zoning ordinance or general plan land use designation.
(B)The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.
(3)The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.
(4)The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project.
(5)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation as specified in any element of the general plan.
(A)This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete.
(B)If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583.
(C)(i)Notwithstanding subdivision (h), for purposes of this paragraph, deemed complete means the applicant has submitted a complete application pursuant to Section 65943.
(ii)This subparagraph applies to an application that, as of January 1, 2026, has not met both of the following criteria:
(I)Received a local agency approval.
(II)Incurred substantial liability in good faith reliance upon the local agency approval.
(6)On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this article and the housing development project is not a builders remedy project.
(e)Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(f)(1)Except as provided in paragraphs (6) and (8) of this subdivision, and subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdictions share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. Nothing in this section shall limit a projects eligibility for a density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915.
(2)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdictions need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project.
(3)Except as provided in subdivision (o), nothing in this section shall be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter.
(4)For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity.
(5)For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or emergency shelter.
(6)Notwithstanding paragraphs (1) to (5), inclusive, all of the following apply to a housing development project that is a builders remedy project:
(A)A local agency may only require the project to comply with the objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. If the local agency has no general plan designation or zoning classification that would have allowed the density and unit type proposed by the applicant, the development proponent may identify any objective, quantifiable, written development standards, conditions, and policies associated with a different general plan designation or zoning classification within that jurisdiction, that facilitate the projects density and unit type, and those shall apply.
(B)(i)Except as authorized by paragraphs (1) to (4), inclusive, of subdivision (d), a local agency shall not apply any individual or combination of objective, quantifiable, written development standards, conditions, and policies to the project that do any of the following:
(I)Render the project infeasible.
(II)Preclude a project that meets the requirements allowed to be imposed by subparagraph (A), as modified by any density bonus, incentive, or concession, or waiver or reduction of development standards and parking ratios, pursuant to Section 65915, from being constructed as proposed by the applicant.
(ii)The local agency shall bear the burden of proof of complying with clause (i).
(C)(i)A project applicant that qualifies for a density bonus pursuant to Section 65915 shall receive two incentives or concessions in addition to those granted pursuant to paragraph (2) of subdivision (d) of Section 65915.
(ii)For a project seeking density bonuses, incentives, concessions, or any other benefits pursuant to Section 65915, and notwithstanding paragraph (6) of subdivision (o) of Section 65915, for purposes of this paragraph, maximum allowable residential density or base density means the density permitted for a builders remedy project pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iii)A local agency shall grant any density bonus pursuant to Section 65915 based on the number of units proposed and allowable pursuant to subparagraph (C) of paragraph (11) of subdivision (h).
(iv)A project that dedicates units to extremely low-income households pursuant to subclause (I) of clause (i) of subparagraph (C) of paragraph (3) of subdivision (h) shall be eligible for the same density bonus, incentives or concessions, and waivers or reductions of development standards as provided to a housing development project that dedicates three percentage points more units to very low income households pursuant to paragraph (2) of subdivision (f) of Section 65915.
(v)All units dedicated to extremely low-income, very low income, low-income, and moderate-income households pursuant to paragraph (11) of subdivision (h) shall be counted as affordable units in determining whether the applicant qualifies for a density bonus pursuant to Section 65915.
(D)(i)The project shall not be required to apply for, or receive approval of, a general plan amendment, specific plan amendment, rezoning, or other legislative approval.
(ii)The project shall not be required to apply for, or receive, any approval or permit not generally required of a project of the same type and density proposed by the applicant.
(iii)Any project that complies with this paragraph shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes, and shall not be considered or treated as a nonconforming lot, use, or structure for any purpose.
(E)A local agency shall not adopt or impose any requirement, process, practice, or procedure or undertake any course of conduct, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is a builders remedy project.
(F)(i)A builders remedy project shall be deemed to be in compliance with the residential density standards for the purposes of complying with subdivision (b) of Section 65912.123.
(ii)A builders remedy project shall be deemed to be in compliance with the objective zoning standards, objective subdivision standards, and objective design review standards for the purposes of complying with paragraph (5) of subdivision (a) of Section 65913.4.
(G)(i)(I)If the local agency had a local affordable housing requirement, as defined in Section 65912.101, that on January 1, 2024, required a greater percentage of affordable units than required under subparagraph (A) of paragraph (11) of subdivision (h), or required an affordability level deeper than what is required under subparagraph (A) of paragraph (11) of subdivision (h), then, except as provided in subclauses (II) and (III), the local agency may require a housing development for mixed-income households to comply with an otherwise lawfully applicable local affordability percentage or affordability level. The local agency shall not require housing for mixed-income households to comply with any other aspect of the local affordable housing requirement.
(II)Notwithstanding subclause (I), the local affordable housing requirements shall not be applied to require housing for mixed-income households to dedicate more than 20 percent of the units to affordable units of any kind.
(III)Housing for mixed-income households that is required to dedicate 20 percent of the units to affordable units shall not be required to dedicate any of the affordable units at an income level deeper than lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A local agency may only require housing for mixed-income households to comply with the local percentage requirement or affordability level described in subclause (I) if it first makes written findings, supported by a preponderance of evidence, that compliance with the local percentage requirement or the affordability level, or both, would not render the housing development project infeasible. If a reasonable person could find compliance with either requirement, either alone or in combination, would render the project infeasible, the project shall not be required to comply with that requirement.
(ii)Affordable units in the development project shall have a comparable bedroom and bathroom count as the market rate units.
(iii)Each affordable unit dedicated pursuant to this subparagraph shall count toward satisfying a local affordable housing requirement. Each affordable unit dedicated pursuant to a local affordable housing requirement that meets the criteria established in this subparagraph shall count towards satisfying the requirements of this subparagraph. This is declaratory of existing law.
(7)(A)For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project meets the definition of a builders remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025.
(B)Notwithstanding subdivision (c) of Section 65941.1, for a housing development project deemed complete before January 1, 2025, the development proponent may choose to revise their application so that the project is a builders remedy project, without being required to resubmit a preliminary application, even if the revision results in the number of residential units or square footage of construction changing by 20 percent or more.
(8)A housing development project proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdictions housing element, that is consistent with the density specified in the most recently updated and adopted housing element, and that is inconsistent with both the jurisdictions zoning ordinance and general plan land use designation on the date the application was deemed complete, shall be subject to the provisions of subparagraphs (A), (B), and (D) of paragraph (6) and paragraph (9).
(9)For purposes of this subdivision, objective, quantifiable, written development standards, conditions, and policies means criteria that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal, including, but not limited to, any standard, ordinance, or policy described in paragraph (4) of subdivision (o). Nothing herein shall affect the obligation of the housing development project to comply with the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code. In the event that applicable objective, quantifiable, written development standards, conditions, and policies are mutually inconsistent, a development shall be deemed consistent with the criteria that permits the density and unit type closest to that of the proposed project.
(g)This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem.
(h)The following definitions apply for the purposes of this section:
(1)Feasible means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors.
(2)Housing development project means a use consisting of any of the following:
(A)Residential units only.
(B)Mixed-use developments consisting of residential and nonresidential uses that meet any of the following conditions:
(i)At least two-thirds of the new or converted square footage is designated for residential use.
(ii)At least 50 percent of the new or converted square footage is designated for residential use and the project meets both of the following:
(I)The project includes at least 500 net new residential units.
(II)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(iii)At least 50 percent of the net new or converted square footage is designated for residential use and the project meets all of the following:
(I)The project includes at least 500 net new residential units.
(II)The project involves the demolition or conversion of at least 100,000 square feet of nonresidential use.
(III)The project demolishes at least 50 percent of the existing nonresidential uses on the site.
(IV)No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except a portion of the project may be designated for use as a residential hotel, as defined in Section 50519 of the Health and Safety Code.
(C)Transitional housing or supportive housing.
(D)Farmworker housing, as defined in subdivision (h) of Section 50199.7 of the Health and Safety Code.
(3)(A)Housing for very low, low-, or moderate-income households means housing for lower income households, mixed-income households, or moderate-income households.
(B)Housing for lower income households means a housing development project in which 100 percent of the units, excluding managers units, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code, at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(C)(i)Housing for mixed-income households means any of the following:
(I)A housing development project in which at least 7 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to extremely low income households, as defined in Section 50106 of the Health and Safety Code.
(II)A housing development project in which at least 10 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to very low income households, as defined in Section 50105 of the Health and Safety Code.
(III)A housing development project in which at least 13 percent of the total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, are dedicated to lower income households, as defined in Section 50079.5 of the Health and Safety Code.
(IV)A housing development project in which there are 10 or fewer total units, as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915, that is on a site that is smaller than one acre, and that is proposed for development at a minimum density of 10 units per acre.
(ii)All units dedicated to extremely low income, very low income, and low-income households pursuant to clause (i) shall meet both of the following:
(I)The units shall have an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(II)The development proponent shall agree to, and the local agency shall ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years and all affordable ownership units included pursuant to this section for a period of 45 years.
(D)Housing for moderate-income households means a housing development project in which 100 percent of the units are sold or rented to moderate-income households, as defined in Section 50093 of the Health and Safety Code, at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or an affordable rent, as defined in Section 50053 of the Health and Safety Code. The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.
(4)Area median income means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code.
(5)Notwithstanding any other law, until January 1, 2030, deemed complete means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943. The local agency shall bear the burden of proof in establishing that the application is not complete.
(6)Disapprove the housing development project includes any instance in which a local agency does any of the following:
(A)Votes or takes final administrative action on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit.
(B)Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph.
(C)Fails to meet the time limits specified in Section 65913.3.
(D)Fails to cease a course of conduct undertaken for an improper purpose, such as to harass or to cause unnecessary delay or needless increases in the cost of the proposed housing development project, that effectively disapproves the proposed housing development without taking final administrative action if all of the following conditions are met:
(i)The project applicant provides written notice detailing the challenged conduct and why it constitutes disapproval to the local agency established under Section 65100.
(ii)Within five working days of receiving the applicants written notice described in clause (i), the local agency shall post the notice on the local agencys internet website, provide a copy of the notice to any person who has made a written request for notices pursuant to subdivision (f) of Section 21167 of the Public Resources Code, and file the notice with the county clerk of each county in which the project will be located. The county clerk shall post the notice and make it available for public inspection in the manner set forth in subdivision (c) of Section 21152 of the Public Resources Code.
(iii)The local agency shall consider all objections, comments, evidence, and concerns about the project or the applicants written notice and shall not make a determination until at least 60 days after the applicant has given written notice to the local agency pursuant to clause (i).
(iv)Within 90 days of receipt of the applicants written notice described in clause (i), the local agency shall issue a written statement that it will immediately cease the challenged conduct or issue written findings that comply with both of the following requirements:
(I)The findings articulate an objective basis for why the challenged course of conduct is necessary.
(II)The findings provide clear instructions on what the applicant must submit or supplement so that the local agency can make a final determination regarding the next necessary approval or set the date and time of the next hearing.
(v)(I)If a local agency continues the challenged course of conduct described in the applicants written notice and fails to issue the written findings described in clause (iv), the local agency shall bear the burden of establishing that its course of conduct does not constitute a disapproval of the housing development project under this subparagraph in an action taken by the applicant.
(II)If an applicant challenges a local agencys course of conduct as a disapproval under this subparagraph, the local agencys written findings described in clause (iv) shall be incorporated into the administrative record and be deemed to be the final administrative action for purposes of adjudicating whether the local agencys course of conduct constitutes a disapproval of the housing development project under this subparagraph.
(vi)A local agencys action in furtherance of complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, imposing mitigating measures, shall not constitute project disapproval under this subparagraph.
(E)Fails to comply with Section 65905.5. For purposes of this subparagraph, a builders remedy project shall be deemed to comply with the applicable, objective general plan and zoning standards in effect at the time an application is deemed complete.
(F)(i)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943 and includes in the determination an item that is not required on the local agencys submittal requirement checklist. The local agency shall bear the burden of proof that the required item is listed on the submittal requirement checklist.
(ii)In a subsequent review of an application pursuant to Section 65943, requests the applicant provide new information that was not identified in the initial determination and upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943. The local agency shall bear the burden of proof that the required item was identified in the initial determination.
(iii)Determines that an application for a housing development project is incomplete pursuant to subdivision (a) or (b) of Section 65943, a reasonable person would conclude that the applicant has submitted all of the items required on the local agencys submittal requirement checklist, and the local agency upholds this determination in the final written determination on an appeal filed pursuant to subdivision (c) of Section 65943.
(iv)If a local agency determines that an application is incomplete under Section 65943 after two resubmittals of the application by the applicant, the local agency shall bear the burden of establishing that the determination is not an effective disapproval of a housing development project under this section.
(G)Violates subparagraph (D) or (E) of paragraph (6) of subdivision (f).
(H)Makes a written determination that a preliminary application described in subdivision (a) of Section 65941.1 has expired or that the applicant has otherwise lost its vested rights under the preliminary application for any reason other than those described in subdivisions (c) and (d) of Section 65941.1.
(I)(i)Fails to make a determination of whether the project is exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or commits an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 if all of the conditions in Section 65589.5.1 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(J)(i)Fails to adopt a negative declaration or addendum for the project, to certify an environmental impact report for the project, or to approve another comparable environmental document, such as a sustainable communities environmental assessment pursuant to Section 21155.2 of the Public Resources Code, as required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), if all of the conditions in Section 65589.5.2 are satisfied.
(ii)This subparagraph shall become inoperative on January 1, 2031.
(7)(A)For purposes of this section and Sections 65589.5.1 and 65589.5.2, lawful determination means any final decision about whether to approve or disapprove a statutory or categorical exemption or a negative declaration, addendum, environmental impact report, or comparable environmental review document under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that is not an abuse of discretion, as defined in subdivision (b) of Section 65589.5.1 or subdivision (b) of Section 65589.5.2.
(B)This paragraph shall become inoperative on January 1, 2031.
(8)Lower density includes any conditions that have the same effect or impact on the ability of the project to provide housing.
(9)Until January 1, 2030, objective means involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.
(10)Notwithstanding any other law, until January 1, 2030, determined to be complete means that the applicant has submitted a complete application pursuant to Section 65943.
(11)Builders remedy project means a project that meets all of the following criteria:
(A)The project is a housing development project that provides housing for very low, low-, or moderate-income households.
(B)On or after the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have a housing element that was in substantial compliance with this article.
(C)The project has a density such that the number of units, as calculated before the application of a density bonus pursuant to Section 65915, complies with all of the following conditions:
(i)The density does not exceed the greatest of the following densities:
(I)Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2.
(II)Three times the density allowed by the general plan, zoning ordinance, or state law, whichever is greater.
(III)The density that is consistent with the density specified in the housing element.
(ii)Notwithstanding clause (i), the greatest allowable density shall be 35 units per acre more than the amount allowable pursuant to clause (i), if any portion of the site is located within any of the following:
(I)One-half mile of a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(II)A very low vehicle travel area, as defined in subdivision (h).
(III)A high or highest resource census tract, as identified by the latest edition of the CTCAC/HCD Opportunity Map published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development.
(D)(i)On sites that have a minimum density requirement and are located within one-half mile of a commuter rail station or a heavy rail station, the density of the project shall not be less than the minimum density required on the site.
(I)For purposes of this subparagraph, commuter rail means a railway that is not a light rail, streetcar, trolley, or tramway and that is for urban passenger train service consisting of local short distance travel operating between a central city and adjacent suburb with service operated on a regular basis by or under contract with a transit operator for the purpose of transporting passengers within urbanized areas, or between urbanized areas and outlying areas, using either locomotive-hauled or self-propelled railroad passenger cars, with multitrip tickets and specific station-to-station fares.
(II)For purposes of this subparagraph, heavy rail means an electric railway with the capacity for a heavy volume of traffic using high speed and rapid acceleration passenger rail cars operating singly or in multicar trains on fixed rails, separate rights-of-way from which all other vehicular and foot traffic are excluded, and high platform loading.
(ii)On all other sites with a minimum density requirement, the density of the project shall not be less than the local agencys minimum density or one-half of the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is lower.
(E)The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16.
(12)Condition approval includes imposing on the housing development project, or attempting to subject it to, development standards, conditions, or policies.
(13)Unit type means the form of ownership and the kind of residential unit, including, but not limited to, single-family detached, single-family attached, for-sale, rental, multifamily, townhouse, condominium, apartment, manufactured homes and mobilehomes, factory-built housing, and residential hotel.
(14)Proposed by the applicant means the plans and designs as submitted by the applicant, including, but not limited to, density, unit size, unit type, site plan, building massing, floor area ratio, amenity areas, open space, parking, and ancillary commercial uses.
(i)If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the housing development projects application is complete, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d), and that the findings are supported by a preponderance of the evidence in the record, and with the requirements of subdivision (o).
(j)(1)When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application was deemed complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist:
(A)The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a specific, adverse impact means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.
(B)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density.
(2)(A)If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows:
(i)Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units.
(ii)Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units.
(B)If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision.
(3)For purposes of this section, the receipt of a density bonus, incentive, concession, waiver, or reduction of development standards pursuant to Section 65915 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not in conformity, with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision.
(4)For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project.
(k)(1)(A)(i)The applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that any of the following are met, the court shall issue an order pursuant to clause (ii):
(I)The local agency, in violation of subdivision (d), disapproved a housing development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section.
(II)The local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section.
(III)(ia)Subject to sub-subclause (ib), the local agency, in violation of subdivision (o), required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted.
(ib)This subclause shall become inoperative on January 1, 2030.
(IV)The local agency violated a provision of this section applicable to a builders remedy project.
(ii)If the court finds that one of the conditions in clause (i) is met, the court shall issue an order or judgment compelling compliance with this section within a time period not to exceed 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorneys fees and costs of suit to the plaintiff or petitioner, provided, however, that the court shall not award attorneys fees in either of the following instances:
(I)The court finds, under extraordinary circumstances, that awarding fees would not further the purposes of this section.
(II)(ia)In a case concerning a disapproval within the meaning of subparagraph (I) or (J) of paragraph (6) of subdivision (h), the court finds that the local agency acted in good faith and had reasonable cause to disapprove the housing development project due to the existence of a controlling question of law about the application of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or implementing guidelines as to which there was a substantial ground for difference of opinion at the time of the disapproval.
(ib)This subclause shall become inoperative on January 1, 2031.
(B)Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within the time period prescribed by the court, the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Trust Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of the fine to impose, the court shall consider the local agencys progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households.
(C)If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency.
(D)Nothing in this section shall limit the courts inherent authority to make any other orders to compel the immediate enforcement of any writ brought under this section, including the imposition of fees and other sanctions set forth under Section 1097 of the Code of Civil Procedure.
(2)For purposes of this subdivision, housing organization means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorneys fees and costs if it is the prevailing party in an action to enforce this section.
(l)If the court finds that the local agency (1) acted in bad faith when it violated this section and (2) failed to carry out the courts order or judgment within the time period prescribed by the court, the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. If a court has previously found that the local agency violated this section within the same planning period, the court shall multiply the fines by an additional factor for each previous violation. For purposes of this section, bad faith includes, but is not limited to, an action or inaction that is frivolous, pretextual, intended to cause unnecessary delay, or entirely without merit.
(m)(1)Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial courts order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant.
(2)(A)A disapproval within the meaning of subparagraph (I) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within the time period set forth in paragraph (5) of subdivision (a) of Section 65589.5.1 after the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(3)(A)A disapproval within the meaning of subparagraph (J) of paragraph (6) of subdivision (h) shall be final for purposes of this subdivision, if the local agency did not make a lawful determination within 90 days of the applicants timely written notice.
(B)This paragraph shall become inoperative on January 1, 2031.
(n)In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioners points and authorities, (2) by the respondent with respondents points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs.
(o)(1)Subject to paragraphs (2), (6), and (7), and subdivision (d) of Section 65941.1, a housing development project shall be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application including all of the information required by subdivision (a) of Section 65941.1 was submitted.
(2)Paragraph (1) shall not prohibit a housing development project from being subject to ordinances, policies, and standards adopted after the preliminary application was submitted pursuant to Section 65941.1 in the following circumstances:
(A)In the case of a fee, charge, or other monetary exaction, to an increase resulting from an automatic annual adjustment based on an independently published cost index that is referenced in the ordinance or resolution establishing the fee or other monetary exaction.
(B)A preponderance of the evidence in the record establishes that subjecting the housing development project to an ordinance, policy, or standard beyond those in effect when a preliminary application was submitted is necessary to mitigate or avoid a specific, adverse impact upon the public health or safety, as defined in subparagraph (A) of paragraph (1) of subdivision (j), and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact.
(C)Subjecting the housing development project to an ordinance, policy, standard, or any other measure, beyond those in effect when a preliminary application was submitted is necessary to avoid or substantially lessen an impact of the project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(D)The housing development project has not commenced construction within two and one-half years, or three and one-half years for an affordable housing project, following the date that the project received final approval. For purposes of this subparagraph:
(i)Affordable housing project means a housing development that satisfies both of the following requirements:
(I)Units within the development are subject to a recorded affordability restriction for at least 55 years for rental housing and 45 years for owner-occupied housing, or the first purchaser of each unit participates in an equity sharing agreement as described in subparagraph (C) of paragraph (2) of subdivision (c) of Section 65915.
(II)All of the units within the development, excluding managers units, are dedicated to lower income households, as defined by Section 50079.5 of the Health and Safety Code.
(ii)Final approval means that the housing development project has received all necessary approvals to be eligible to apply for, and obtain, a building permit or permits and either of the following is met:
(I)The expiration of all applicable appeal periods, petition periods, reconsideration periods, or statute of limitations for challenging that final approval without an appeal, petition, request for reconsideration, or legal challenge having been filed.
(II)If a challenge is filed, that challenge is fully resolved or settled in favor of the housing development project.
(E)The housing development project is revised following submittal of a preliminary application pursuant to Section 65941.1 such that the number of residential units or square footage of construction changes by 20 percent or more, exclusive of any increase resulting from the receipt of a density bonus, incentive, concession, waiver, or similar provision, including any other locally authorized program that offers additional density or other development bonuses when affordable housing is provided. For purposes of this subdivision, square footage of construction means the building area, as defined by the California Building Standards Code (Title 24 of the California Code of Regulations).
(3)This subdivision does not prevent a local agency from subjecting the additional units or square footage of construction that result from project revisions occurring after a preliminary application is submitted pursuant to Section 65941.1 to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted.
(4)For purposes of this subdivision, ordinances, policies, and standards includes general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined in Section 66000, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions.
(5)This subdivision shall not be construed in a manner that would lessen the restrictions imposed on a local agency, or lessen the protections afforded to a housing development project, that are established by any other law, including any other part of this section.
(6)This subdivision shall not restrict the authority of a public agency or local agency to require mitigation measures to lessen the impacts of a housing development project under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(7)With respect to completed residential units for which the project approval process is complete and a certificate of occupancy has been issued, nothing in this subdivision shall limit the application of later enacted ordinances, policies, and standards that regulate the use and occupancy of those residential units, such as ordinances relating to rental housing inspection, rent stabilization, restrictions on short-term renting, and business licensing requirements for owners of rental housing.
(8)(A)This subdivision shall apply to a housing development project that submits a preliminary application pursuant to Section 65941.1 before January 1, 2030.
(B)This subdivision shall become inoperative on January 1, 2034.
(p)(1)Upon any motion for an award of attorneys fees pursuant to Section 1021.5 of the Code of Civil Procedure, in a case challenging a local agencys approval of a housing development project, a court, in weighing whether a significant benefit has been conferred on the general public or a large class of persons and whether the necessity of private enforcement makes the award appropriate, shall give due weight to the degree to which the local agencys approval furthers policies of this section, including, but not limited to, subdivisions (a), (b), and (c), the suitability of the site for a housing development, and the reasonableness of the decision of the local agency. It is the intent of the Legislature that attorneys fees and costs shall rarely, if ever, be awarded if a local agency, acting in good faith, approved a housing development project that satisfies conditions established in paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.1 or paragraph (1), (2), or (3) of subdivision (a) of Section 65589.5.2.
(2)This subdivision shall become inoperative on January 1, 2031.
(q)This section shall be known, and may be cited, as the Housing Accountability Act.
(r)The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February 19, 2025.(a)After the legislative body has adopted all or part of a general plan, the planning agency shall do both of the following:
(1)Investigate and make recommendations to the legislative body regarding reasonable and practical means for implementing the general plan or element of the general plan so that it will serve as an effective guide for orderly growth and development, preservation and conservation of open-space land and natural resources, and the efficient expenditure of public funds relating to the subjects addressed in the general plan.
(2)Provide by April 1 of each year an annual report to the legislative body, the Office of Planning and Research, and the Department of Housing and Community Development that includes all of the following:
(A)The status of the plan and progress in its implementation.
(B)(i)(I)The progress in meeting its share of regional housing needs determined pursuant to Section 65584, including the need for extremely low income households, as determined pursuant to Section 65583, and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing pursuant to paragraph (3) of subdivision (c) of Section 65583.
(II)The annual report shall include the progress in meeting the citys or countys progress in meeting its share of regional housing need, as described in subclause (I), for the sixth and previous revisions of the housing element.
(ii)The housing element portion of the annual report, as required by this paragraph, shall be prepared through the use of standards, forms, and definitions adopted by the Department of Housing and Community Development. The department may review, adopt, amend, and repeal the standards, forms, or definitions to implement this article. Any standards, forms, or definitions adopted to implement this article shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. Before and after adoption of the forms, the housing element portion of the annual report shall include a section that describes the actions taken by the local government towards completion of the programs and status of the local governments compliance with the deadlines in its housing element. The report shall be considered at an annual public meeting before the legislative body where members of the public shall be allowed to provide oral testimony and written comments.
(iii)The report may include the number of units that have been completed pursuant to subdivision (c) of Section 65583.1. For purposes of this paragraph, committed assistance may be executed throughout the planning period, and the program under paragraph (1) of subdivision (c) of Section 65583.1 shall not be required. The report shall document how the units meet the standards set forth in that subdivision.
(iv)The planning agency shall include the number of units in a student housing development for lower income students for which the developer of the student housing development was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915.
(C)The number of housing development applications received in the prior year, including whether each housing development application is subject to a ministerial or discretionary approval process.
(D)The number of units included in all development applications in the prior year.
(E)(i)The number of units approved and disapproved in the prior year, which shall include all of the following subcategories:
(I)The number of units located within an opportunity area.
(II)For the seventh and each subsequent revision of the housing element, the number of units approved and disapproved for acutely low income households within each opportunity area.
(III)For the seventh and each subsequent revision of the housing element, the number of units approved and disapproved for extremely low income households within each opportunity area.
(IV)The number of units approved and disapproved for very low income households within each opportunity area.
(V)The number of units approved and disapproved for lower income households within each opportunity area.
(VI)The number of units approved and disapproved for moderate-income households within each opportunity area.
(VII)The number of units approved and disapproved for above moderate-income households within each opportunity area.
(ii)For purposes of this subparagraph, opportunity area means a highest, high, moderate, or low resource area pursuant to the most recent CTCAC/HCD Opportunity Map published by the California Tax Credit Allocation Committee and the Department of Housing and Community Development.
(F)The degree to which its approved general plan complies with the guidelines developed and adopted pursuant to Section 65040.2 and the date of the last revision to the general plan.
(G)A listing of sites rezoned to accommodate that portion of the citys or countys share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory required by paragraph (1) of subdivision (c) of Section 65583 and Section 65584.09. The listing of sites shall also include any additional sites that may have been required to be identified by Section 65863.
(H)(i)The number of units of housing demolished and new units of housing, including both rental housing and for-sale housing and any units that the County of Napa or the City of Napa may report pursuant to an agreement entered into pursuant to Section 65584.08, that have been issued a completed entitlement, a building permit, or a certificate of occupancy, thus far in the housing element cycle, and the income category, by area median income category, that each unit of housing satisfies. That production report shall do the following:
(I)For each income category described in this subparagraph, distinguish between the number of rental housing units and the number of for-sale units that satisfy each income category.
(II)For each entitlement, building permit, or certificate of occupancy, include a unique site identifier that must include the assessors parcel number, but may also include street address, or other identifiers.
(III)For the seventh and subsequent revisions of the housing element, suite-style student housing quarters. The Department of Housing and Community Development shall evaluate the jurisdictions progress in meeting its share of the regional housing needs determined pursuant to Section 65584, with particular attention to the housing needs of lower income households. Suite-style student housing quarters shall not satisfy more than 25 percent of any income category in determining a jurisdictions progress in meeting its share of the regional housing needs. A suite-style student housing quarters that meets all of the following requirements may be counted toward a jurisdictions progress toward meeting the regional housing needs:
(ia)The unit includes a fully functioning kitchen with a refrigerator, stove, sink with hot and cold water, vent, and an area to prepare food.
(ib)The unit has a ratio of beds to toilets, lavatories, and showers not exceeding five to one.
(ic)The unit meets the requirements described in Section 17920.3 of the Health and Safety Code. Any unit or structure that does not meet the requirements of that section shall not be counted toward the local jurisdictions progress.
(ii)For the County of Napa and the City of Napa, the production report may report units identified in the agreement entered into pursuant to Section 65584.08.
(I)The number of applications submitted pursuant to subdivision (a) of Section 65913.4, the location and the total number of developments approved pursuant to subdivision (c) of Section 65913.4, the total number of building permits issued pursuant to subdivision (c) of Section 65913.4, the total number of units including both rental housing and for-sale housing by area median income category constructed using the process provided for in subdivision (c) of Section 65913.4.
(J)If the city or county has received funding pursuant to the Local Government Planning Support Grants Program (Chapter 3.1 (commencing with Section 50515) of Part 2 of Division 31 of the Health and Safety Code), the information required pursuant to subdivision (a) of Section 50515.04 of the Health and Safety Code.
(K)The progress of the city or county in adopting or amending its general plan or local open-space element in compliance with its obligations to consult with California Native American tribes, and to identify and protect, preserve, and mitigate impacts to places, features, and objects described in Sections 5097.9 and 5097.993 of the Public Resources Code, pursuant to Chapter 905 of the Statutes of 2004.
(L)The following information with respect to density bonuses granted in accordance with Section 65915:
(i)The number of density bonus applications received by the city or county.
(ii)The number of density bonus applications approved by the city or county.
(iii)Data from all projects approved to receive a density bonus from the city or county, including, but not limited to, the percentage of density bonus received, the percentage of affordable units in the project, the number of other incentives or concessions granted to the project, and any waiver or reduction of parking standards for the project.
(M)The following information with respect to each application submitted pursuant to Chapter 4.1 (commencing with Section 65912.100):
(i)The location of the project.
(ii)The status of the project, including whether it has been entitled, whether a building permit has been issued, and whether or not it has been completed.
(iii)The number of units in the project.
(iv)The number of units in the project that are rental housing.
(v)The number of units in the project that are for-sale housing.
(vi)The household income category of the units, as determined pursuant to subdivision (f) of Section 65584.
(N)A list of all historic designations listed on the National Register of Historic Places, the California Register of Historic Resources, or a local register of historic places by the city or county in the past year, and the status of any housing development projects proposed for the new historic designations, including all of the following:
(i)Whether the housing development project has been entitled.
(ii)Whether a building permit has been issued for the housing development project.
(iii)The number of units in the housing development project.
(b)(1)(A)The department may request corrections to the housing element portion of an annual report submitted pursuant to paragraph (2) of subdivision (a) within 90 days of receipt. A planning agency shall make the requested corrections within 30 days after which the department may reject the report if the report is not in substantial compliance with the requirements of that paragraph.
(B)If the department rejects the housing element portion of an annual report as authorized by subparagraph (A), the department shall provide the reasons the report is inconsistent with paragraph (2) of subdivision (a) to the planning agency in writing.
(2)If a court finds, upon a motion to that effect, that a city, county, or city and county failed to submit, within 60 days of the deadline established in this section, the housing element portion of the report required pursuant to subparagraph (B) of paragraph (2) of subdivision (a) that substantially complies with the requirements of this section, the court shall issue an order or judgment compelling compliance with this section within 60 days. If the city, county, or city and county fails to comply with the courts order within 60 days, the plaintiff or petitioner may move for sanctions, and the court may, upon that motion, grant appropriate sanctions. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment is not carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled. This subdivision applies to proceedings initiated on or after the first day of October following the adoption of forms and definitions by the Department of Housing and Community Development pursuant to paragraph (2) of subdivision (a), but no sooner than six months following that adoption.
(c)The Department of Housing and Community Development shall post a report submitted pursuant to this section on its internet website within a reasonable time of receiving the report.
SEC. 2.The Legislature finds and declares that Section 1 of this act amending Section 65400 of 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, 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
|
|---|---|
| Sep 29, 2026 | Chaptered by Secretary of State. Chapter 802, Statutes of 2026. |
| Sep 29, 2026 | Approved by the Governor. |
| Sep 8, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 30, 2026 | Assembly amendments concurred in. (Ayes 30. Noes 9.) Ordered to engrossing and enrolling. |
| Aug 27, 2026 | From committee: That the Assembly amendments be concurred in. (Ayes 8. Noes 2.) |
| Aug 27, 2026 | From committee: That the Assembly amendments be concurred in. (Ayes 8. Noes 2. Page 6046.) |
| Aug 25, 2026 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(d). |
| Aug 25, 2026 | From committee: Be re-referred to Com. on HOUSING pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0.) Re-referred to Com. on HOUSING. |
| Aug 25, 2026 | From committee: Be re-referred to Com. on HOUSING pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0. Page 5725.) Re-referred to Com. on HOUSING. |
| Aug 24, 2026 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 24, 2026 | Read third time. Passed. (Ayes 59. Noes 13. Page 6413.) Ordered to the Senate. |
| Aug 24, 2026 | Read third time. Passed. Ordered to the Senate. |
| Aug 20, 2026 | Read third time and amended. |
| Aug 20, 2026 | Ordered to third reading. |
| Aug 17, 2026 | Read second time. Ordered to third reading. |
| Aug 13, 2026 | Read second time and amended. Ordered to second reading. |
| Aug 13, 2026 | From committee: Do pass as amended. (Ayes 11. Noes 2.) (August 13). |
| Aug 13, 2026 | Assembly Rule 63 suspended. |
| Aug 5, 2026 | August 5 set for first hearing. Placed on suspense file. |
| Jul 2, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 1.) (July 1). Re-referred to Com. on APPR. |
| Jun 11, 2026 | Read second time and amended. Re-referred to Com. on L. GOV. |
| Jun 10, 2026 | From committee: Do pass as amended and re-refer to Com. on L. GOV. (Ayes 10. Noes 1.) (June 10). |
| May 20, 2026 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on H. & C.D. |
| May 18, 2026 | Referred to Com. on H. & C.D. |
| Jan 26, 2026 | In Assembly. Read first time. Held at Desk. |
| Jan 26, 2026 | Read third time. Passed. (Ayes 39. Noes 0. Page 3281.) Ordered to the Assembly. |
| Jan 21, 2026 | Read second time. Ordered to third reading. |
| Jan 20, 2026 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jan 13, 2026 | Set for hearing January 20. |
| Jan 8, 2026 | Read second time and amended. Re-referred to Com. on APPR. |
| Jan 7, 2026 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0. Page 3184.) (January 6). |
| Jan 5, 2026 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HOUSING. |
| Dec 18, 2025 | Set for hearing January 6. |
| Apr 30, 2025 | April 29 set for first hearing. Failed passage in committee. (Ayes 1. Noes 2. Page 936.) Reconsideration granted. |
| Apr 24, 2025 | Set for hearing April 29. |
| Apr 21, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HOUSING. |
| Mar 24, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HOUSING. |
| Feb 26, 2025 | Referred to Com. on HOUSING. |
| Feb 20, 2025 | From printer. May be acted upon on or after March 22. |
| Feb 19, 2025 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2026 | Unfinished Business SB457 Becker Concurrence | Senate Floor |
Passed |
|
| Aug 27, 2026 | That the Assembly amendments be concurred in | Senate Standing Committee on Housing |
Passed |
|
| Aug 24, 2026 | SB 457 Becker Senate Third Reading By Kalra | Assembly Floor |
Passed |
|
| Aug 13, 2026 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2026 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Local Government |
Passed |
|
| Jun 10, 2026 | Do pass as amended and be re-referred to the Committee on [Local Government] | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| Jan 26, 2026 | Senate 3rd Reading SB457 Becker | Senate Floor |
Passed |
|
| Jan 6, 2026 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Housing |
Passed |
|
| Apr 29, 2025 | [First] hearing set for [04-30-2025]: Failed passage in Committee. Reconsideration granted | Senate Standing Committee on Housing |
Passed |
|
| Apr 29, 2025 | Do pass | Senate Standing Committee on Housing |
Failed |
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
|
|---|---|---|
| Abundant Housing LA | ** Against | |
| Bay Area Council | ** Support | |
| California Apartment Association | ** Against | |
| California Building Industry Association | ** Against | |
| California Community Land Trust Network | ** Support | |
| California Council For Affordable Housing | ** Against | |
| California YIMBY | ** Against | |
| Circulate Planning & Policy | ** Support | |
| City of Belmont | ** Support | |
| City of Buena Park | ** Support | |
| City of Chino Hills | ** Support | |
| City Of Fullerton | ** Support | |
| City of La Habra | ** Support | |
| City Of Palo Alto | ** Support | |
| City Of Placentia | ** Support | |
| City of San Jose | ** Support | |
| City of Sunnyvale | ** Support | |
| City Of Tustin | ** Support | |
| East Bay YIMBY | ** Against | |
| Equitable Land Use Alliance (ELUA) | ** Support | |
| Green Foothills | ** Support | |
| Greenbelt Alliance | ** Support | |
| Grow the Richmond | ** Against | |
| Housing Action Coalition | ** Support | |
| Housing Leadership Council | ** Support | |
| Mayor Matt Mahan, City of San Jose | ** Support | |
| Mountain View Community Land Trust | ** Support | |
| Mountain View YIMBY | ** Against | |
| Napa-Solano for Everyone | ** Against | |
| Neighbors for a Better San Diego | ** Against | |
| Northern Neighbors | ** Against | |
| Peninsula for Everyone | ** Against | |
| San Francisco Bay Area Planning and Urban Research Association | ** Support | |
| Santa Cruz Yimby | ** Against | |
| Santa Rosa Yimby | ** Against | |
| Sf Yimby | ** Against | |
| South Bay Yimby | ** Against | |
| South Pasadena Residents for Responsible Growth | ** Against | |
| The Two Hundred | ** Against | |
| Town of Hillsborough | ** Support | |
| Ventura County YIMBY | ** Against | |
| Yimby Action | ** Against | |
| YIMBY LA | ** Against | |
| Yimby SLO | ** Against |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | SB 457 |
UNFINISHED BUSINESS
Bill No: SB 457
Author: Becker (D)
Amended: 8/20/26
Vote: 21
PRIOR SENATE VOTES NOT RELEVANT
SENATE HOUSING COMMITTEE: 8-2, 8/27/26
AYES: Arreguín, Cabaldon, Caballero, Cortese, Durazo, Gonzalez, Grayson, Padilla
NOES: Seyarto, Ochoa Bogh
ASSEMBLY FLOOR: 59-13, 8/24/26 - See last page for vote
SUBJECT: Housing element compliance: committed assistance: in-kind services: realistic capacity formula
SOURCE: Author
DIGEST:
This bill requires the Department of Housing and Community Development (HCD), by July 1, 2028, to develop one or more formulas or other tools that a jurisdiction may use when developing its housing element sites inventory and completing any rezoning required under Housing Element Law, and specifies the types of “in-kind services” that qualify as “committed assistance” for the purposes of determining the number of housing units a jurisdiction may count towards its adequate sites obligation under Housing Element Law
Assembly Amendments
add the substantive portions of the bill requiring HCD to adopt formulas or tools that a jurisdiction may use when developing its housing element sites inventory.
ANALYSIS:
Existing law:
- Provides that the fair share of housing for each city and county is determined through the Regional Housing Needs Determination (RHND) and the subsequent Regional Housing Needs Allocation (RHNA) plan for the region. The law establishes the RHND/RHNA process as follows: (a) Department of Finance (DOF) and HCD develop regional housing needs estimates; (b) COGs allocate housing 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 prepare and adopt a General Plan, including a housing element, to guide the future growth of a community. The housing element must include an inventory of land suitable and available for residential development. Where a jurisdiction’s inventory of land suitable for development does not accommodate the jurisdiction’s share of RHNA, the jurisdiction must identify actions that will be taken to make adequate sites available during the planning period to accommodate the jurisdiction’s share of RHNA that is not accommodated on sites in the inventory.
- Authorizes HCD to allow jurisdictions to meet up to 25% of their requirement to identify adequate sites to accommodate their share of RHNA in their housing element by implementing a “committed assistance program” that rehabilitates or preserves affordable units or converts existing property into affordable housing. Specifically, a committed assistance program must:
- Identify the specific sources of funding for committed assistance.
- Indicate the number of affordable units that will be provided and the amount of dedicated funds necessary to develop affordable housing units.
- Demonstrate that the units meet one of the following:
- The units will be substantially rehabilitated with committed assistance from the jurisdiction to prevent imminent loss of housing stock. Jurisdictions must apply long-term affordability covenants to rehabilitated units and meet other conditions.
- The units are located on foreclosed property or in a multifamily housing complex of three or more units that is acquired with committed assistance from the jurisdiction and converted from nonaffordable housing to affordable housing subject to a long-term affordability covenant.
- The units will be preserved at affordable housing costs for lower income households through committed assistance from the jurisdiction by acquisition of the unit, or the purchase of affordability covenants for the unit.
- The unit is part of a long-term COVID-19 recovery response through which units in a motel, hotel, or hostel are converted with committed assistance from the city or county from nonresidential to residential for people experiencing homelessness by the acquisition of the unit or purchase of affordability covenants and restrictions for the unit.
- The units are spaces in a mobile home park that are acquired with committed assistance from the jurisdiction that are subject to an agreement to maintain affordability.
- Specifies that “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.
This bill:
- Provides that the inventory of land suitable and available for residential development, as required by Housing Element Law, may rely on a formula promulgated or approved by HCD.
- Requires the sites inventory under Housing Element Law to specify the number of units allowed to be built on each site at the time of the housing element's adoption, and the number of units that will be allowed after any required rezoning, to accommodate a jurisdiction's RHNA.
- Mandates that HCD, by July 1, 2028, either promulgate one or more of its own formulas and associated user interfaces or other tools, or approve one or more third-party formulas or tools, for the purposes of determining housing capacity as part of the housing element process.
- Requires the formulas and associated user interfaces or other tools in 3) to allow a local government to determine all of the following:
- The realistic capacity of the housing element sites inventory under the regulatory status quo, including a presumptive probability of housing development for each site;
- The additional realistic capacity that will be provided through rezoning or removing a governmental constraint, including the presumptive probability of housing development and a total number of new units if the site is developed, with realistic capacity defined as a product of these terms; and,
- The realistic capacity for Accessory Dwelling Units (ADUs) that will be developed and offered as housing during the planning period.
- Establishes the following parameters for the formula promulgated or approved by HCD pursuant to 3):
- It must be based on historical data on the development and redevelopment of a site or area, statistically related site characteristics, and, if available, other information regarding a site's probability of development or the total number of units if the site is developed;
- It may exclude sites where the site's size or underlying zoning is not conducive to project sizes or densities that HCD deems appropriate for lower-income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
- The post-rezoning capacity of any lower-income site that is subject to a rezoning program shall be counted only if the program will zone the site to permit owner-occupied and rental multifamily uses by right for developments where at least 20 of the units are affordable to lower-income households;
- It requires the realistic capacity of an eligible site for housing at a level of affordability at or below an above-moderate income to be based on the site's probability of development during the planning period for housing multiplied by the total number of new units if the site is developed; and,
- It may be limited to specific cities or counties if data availability or other reasonable considerations preclude making the formula universal.
- Provides that nothing shall excuse a jurisdiction from its obligation to identify specific sites adequate for the development of housing at various income levels.
- Allows HCD to adopt emergency regulations pursuant to the Administrative Procedures Act (APA) to implement this bill, and which shall remain in effect until the permanent regulations become effective.
- Provides that any formula, associated user interface, or tool promulgated or approved under 3) shall not limit a local government's discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
- Provides that a court may review whether a city or county that elected to use a formula promulgated or approved under 3) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data, but otherwise, the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
- Provides that a jurisdiction is not required to use the tools developed by HCD in 3) for its housing element sites inventory.
- Allows HCD to hire economists and data scientists to promulgate the tools in 3).
- Provides that the formulas, user interfaces, and other tools developed in 3) shall be used solely for the purposes of estimating realistic development capacity of sites, and not for other provisions of Housing Element Law.
- Specifies the types of “in-kind services” that qualify as “committed assistance” for the purposes of determining the number of preserved or rehabilitated housing units a jurisdiction may count toward its adequate sites obligation under Housing Element Law to include, but not be limited to, the following:
- Providing low interest predevelopment loans;
- Donating, dedicating, or providing a long-term lease of land, or an existing structure at below-market value; and,
- Any additional in-kind services identified in written guidance issued by HCD.
Background
Housing elements. Every city and county in California is required to develop a general plan that outlines the community’s vision of future development through a series of policy statements and goals. A community’s general plan lays the foundation for all future land use decisions, as these decisions must be consistent with the plan. General plans are comprised of several elements that address various land use topics. State law mandates seven elements: land use, circulation (e.g., traffic), housing, conservation, open-space, noise, and safety.
Each community’s general plan must include a housing element, which outlines a long-term plan for meeting the community’s existing and projected housing needs. The housing element demonstrates how the community plans to accommodate its “fair share” of its region’s housing needs. Following a staggered schedule, cities and counties located within the territory of a metropolitan planning organization (MPO) must revise their housing elements every eight years, and cities and counties in rural non-MPO regions must revise their housing elements every five years. These five- and eight-year periods are known as the housing element planning period.
In general, a jurisdiction’s housing element must identify and analyze existing and projected housing needs, identify adequate sites with appropriate zoning to meet its share of the RHNA, and ensure that regulatory systems provide opportunities for, and do not unduly constrain, housing development.
RHND & RHNA process. Before each housing element revision, each community is assigned its fair share of the region’s housing need for defined household income levels. Currently local agencies must plan for four separate income categories (very low-, low-, moderate-, and above-moderate income households). Beginning in the seventh housing element cycle, household income levels will include planning requirements for acutely low- and extremely low-income households. This planning occurs through a two-step process. First, HCD determines the aggregate housing need for the region during the planning period the housing element will cover (RHND); then the COG allocates the regional housing need to each city and county within the region (RHNA).
Sites Identification. In adopting a housing element, jurisdictions are required to prepare an inventory of land suitable and available for residential development. Where the inventory of sites does not include adequate sites to accommodate the housing needs for all household income levels, the jurisdiction’s housing element must include a program to make sites available during the planning period with appropriate zoning and development standards to accommodate the jurisdiction’s share of regional housing need that could not be accommodated on the land identified in the inventory. This includes a program to rezone sites within specific timeframes during the housing element period (typically three years for jurisdictions with a timely and compliant housing element).
Comments
- Author’s statement. “The current parcel-by-parcel review process for the site inventory analysis has grown cumbersome for local governments and HCD, generating conflict and litigation without improving the quality of site assessments. During the 6th RHNA, California cities and counties were subject to much more stringent standards for demonstrating the true development potential of housing sites, which in turn required extensive and expensive technical work. HCD review can involve multiple rounds of comments, clarifications, and revisions which require considerable staff resources. The requirements were particularly onerous for jurisdictions that planned to meet over half of their lower-income RHNA through redevelopment of occupied parcels because they had to show that current uses on those sites were reasonably expected to end within the planning horizon. SB 457 directs HCD to develop or approve economic formulas which may be used for assessing the realistic capacity of housing element inventory sites. This will resolve ambiguity as to what constitutes “realistic” capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. The use of the formulas proposed in this bill is voluntary, and jurisdictions may still elect to continue to use existing site inventory methodologies.”
- Adoption and Implementation of Housing Elements. All 540 cities and counties in California are required to plan for housing needs through the housing element of their general plans, which outlines a long-term strategy for meeting existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in higher population regions of the state and every five years in lower population regions. Local jurisdictions must adopt a legally compliant housing element, and receive approval of the housing element from HCD, by their statutory deadline. Failure to do so can result in escalating consequences, including accelerated rezoning deadlines, exposure to the “builder's remedy,” litigation, financial penalties, potential loss of permitting authority, or court receivership.
Among other things, a housing element must demonstrate how a jurisdiction plans to accommodate its share of the region's housing needs, or RHNA. To do so, a jurisdiction must identify an inventory of sites with sufficient capacity to accommodate its RHNA. If the jurisdiction does not already have adequate sites zoned to accommodate its RHNA, it must adopt a rezoning program to make additional sites available for housing development. Pursuant to Housing Element Law, jurisdictions that fail to adopt a substantially compliant housing element by the statutory deadline must complete their rezoning program within one year of the deadline, while jurisdictions that adopt a substantially compliant housing element by the deadline generally have three years from the beginning of the planning period to complete the rezonings.
- Formulas and tools. This bill authorizes HCD, by July 1, 2028, to promulgate or approve one or more formulas, user interfaces, or other tools that jurisdictions may use to determine the “realistic capacity” of sites identified in a housing element sites inventory and authorizes HCD to hire economists and data scientists to develop them. If a jurisdiction elects to use an HCD-approved formula and properly applies it, then the use of any adopted formula, associated user interface, or tool by a local government shall not be subject to judicial review, unless the jurisdiction relied on substantially inaccurate or faulty data in using the tools. This bill requires each housing element sites inventory to specify both the number of units currently allowed on each site and the number that would be allowed following any required rezoning, regardless of whether or not the jurisdiction is using HCD's tools to fulfill its sites inventory obligations.
The HCD-approved formulas would be required to estimate site capacity using historical development data, site characteristics, and other statistically relevant information, including a presumptive probability of development and the total number of new units if the site is developed. This bill authorizes formulas developed or approved by HCD to estimate realistic capacity under existing zoning, the additional realistic capacity created through rezoning or removal of governmental constraints, and the realistic capacity of ADUs that will be developed and offered as housing during the planning period. Additionally, this bill authorizes formulas to exclude sites where the site size or zoning is not conducive to development at densities appropriate for lower- or moderate-income housing, including sites that do not allow for ministerial development. HCD may tailor the tools to particular cities or counties (which are not specified) where data limitations prevent statewide application. While this bill creates the option for jurisdictions to use these tools in their sites inventories and associated rezonings, it does not require them to do so, as some may prefer a more tailored local approach. HCD would be required to comply with the APA when developing these tools, formulas, and related guidance, but may release emergency regulations, which will remain in effect until permanent regulations are adopted.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Appropriations Committee:
HCD estimates General Fund costs of $1.58 million in fiscal years 2027-28 and 2028-29 for six additional positions, including two data scientists, one economist, two housing element specialists and one application/user interface developer, necessary to meet the requirements of this bill. These positions include staff resources not currently available at HCD, as well as additional support for housing element review tasks, promulgating regulations, providing technical assistance to jurisdictions, and reviewing sites inventories prepared with the new formulas.
In addition, HCD estimates one-time contract costs of $2 million for additional technical support and access to proprietary formulas and tools.
SUPPORT: (Verified 8/27/26)
San Francisco Bay Area Planning and Urban Research Association (SPUR)
California Community Land Trust Network
City of Sunnyvale
Greenbelt Alliance
Housing Action Coalition
Housing Leadership Council
Mayor Matt Mahan, City of San Jose
Mountain View Community Land Trust
OPPOSITION: (Verified 8/27/26)
Neighbors for a Better San Diego
ASSEMBLY FLOOR: 59-13, 8/24/26
AYES: Addis, Aguiar-Curry, Ahrens, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas
NOES: Alanis, Castillo, Chen, Davies, DeMaio, Dixon, Ellis, Flora, Jeff Gonzalez, Hadwick, Johnson, Macedo, Tangipa
NO VOTE RECORDED: Hoover, Lackey, McKinnor, Ransom, Sanchez, Ta, Wallis
Prepared by: Hank Brady / HOUSING / (916) 651-4124
8/27/26 11:01:56
**** END ****
SENATE COMMITTEE ON HOUSING
Senator Jesse Arreguín, Chair
2025 - 2026 Regular
Bill No: SB 457 Hearing Date: 8/27/2026
Author: | Becker | ||
Version: | 8/20/2026 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Hank Brady | ||
SUBJECT: Housing element compliance: committed assistance: in-kind services
DIGEST: This bill requires the Department of Housing and Community Development (HCD), by July 1, 2028, to develop one or more formulas or other tools that a jurisdiction may use when developing its housing element sites inventory and completing any rezoning required under Housing Element Law, and specifies the types of “in-kind services” that qualify as “committed assistance” for the purposes of determining the number of housing units a jurisdiction may count towards its adequate sites obligation under Housing Element Law.
ANALYSIS:
Existing law:
- Provides that the fair share of housing for each city and county is determined through the Regional Housing Needs Determination (RHND) and the subsequent Regional Housing Needs Allocation (RHNA) plan for the region. The law establishes the RHND/RHNA process as follows: (a) Department of Finance (DOF) and HCD develop regional housing needs estimates; (b) COGs allocate housing 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 prepare and adopt a General Plan, including a housing element, to guide the future growth of a community. The housing element must include an inventory of land suitable and available for residential development. Where a jurisdiction’s inventory of land suitable for development does not accommodate the jurisdiction’s share of RHNA, the jurisdiction must identify actions that will be taken to make adequate sites available during the planning period to accommodate the jurisdiction’s share of RHNA that is not accommodated on sites in the inventory.
- Authorizes HCD to allow jurisdictions to meet up to 25% of their requirement to identify adequate sites to accommodate their share of RHNA in their housing element by implementing a “committed assistance program” that rehabilitates or preserves affordable units or converts existing property into affordable housing. Specifically, a committed assistance program must:
- Identify the specific sources of funding for committed assistance.
- Indicate the number of affordable units that will be provided and the amount of dedicated funds necessary to develop affordable housing units.
- Demonstrate that the units meet one of the following:
- The units will be substantially rehabilitated with committed assistance from the jurisdiction to prevent imminent loss of housing stock. Jurisdictions must apply long-term affordability covenants to rehabilitated units and meet other conditions.
- The units are located on foreclosed property or in a multifamily housing complex of three or more units that is acquired with committed assistance from the jurisdiction and converted from nonaffordable housing to affordable housing subject to a long-term affordability covenant.
- The units will be preserved at affordable housing costs for lower income households through committed assistance from the jurisdiction by acquisition of the unit, or the purchase of affordability covenants for the unit.
- The unit is part of a long-term COVID-19 recovery response through which units in a motel, hotel, or hostel are converted with committed assistance from the city or county from nonresidential to residential for people experiencing homelessness by the acquisition of the unit or purchase of affordability covenants and restrictions for the unit.
- The units are spaces in a mobile home park that are acquired with committed assistance from the jurisdiction that are subject to an agreement to maintain affordability.
- Specifies that “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.
This bill:
- Provides that the inventory of land suitable and available for residential development, as required by Housing Element Law, may rely on a formula promulgated or approved by HCD.
- Requires the sites inventory under Housing Element Law to specify the number of units allowed to be built on each site at the time of the housing element's adoption, and the number of units that will be allowed after any required rezoning, to accommodate a jurisdiction's RHNA.
- Mandates that HCD, by July 1, 2028, either promulgate one or more of its own formulas and associated user interfaces or other tools, or approve one or more third-party formulas or tools, for the purposes of determining housing capacity as part of the housing element process.
- Requires the formulas and associated user interfaces or other tools in 3) to allow a local government to determine all of the following:
- The realistic capacity of the housing element sites inventory under the regulatory status quo, including a presumptive probability of housing development for each site;
- The additional realistic capacity that will be provided through rezoning or removing a governmental constraint, including the presumptive probability of housing development and a total number of new units if the site is developed, with realistic capacity defined as a product of these terms; and,
- The realistic capacity for Accessory Dwelling Units (ADUs) that will be developed and offered as housing during the planning period.
- Establishes the following parameters for the formula promulgated or approved by HCD pursuant to 3):
- It must be based on historical data on the development and redevelopment of a site or area, statistically related site characteristics, and, if available, other information regarding a site's probability of development or the total number of units if the site is developed;
- It may exclude sites where the site's size or underlying zoning is not conducive to project sizes or densities that HCD deems appropriate for lower-income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
- The post-rezoning capacity of any lower-income site that is subject to a rezoning program shall be counted only if the program will zone the site to permit owner-occupied and rental multifamily uses by right for developments where at least 20 of the units are affordable to lower-income households;
- It requires the realistic capacity of an eligible site for housing at a level of affordability at or below an above-moderate income to be based on the site's probability of development during the planning period for housing multiplied by the total number of new units if the site is developed; and,
- It may be limited to specific cities or counties if data availability or other reasonable considerations preclude making the formula universal.
- Provides that nothing shall excuse a jurisdiction from its obligation to identify specific sites adequate for the development of housing at various income levels.
- Allows HCD to adopt emergency regulations pursuant to the Administrative Procedures Act (APA) to implement this bill, and which shall remain in effect until the permanent regulations become effective.
- Provides that any formula, associated user interface, or tool promulgated or approved under 3) shall not limit a local government's discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
- Provides that a court may review whether a city or county that elected to use a formula promulgated or approved under 3) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data, but otherwise, the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
- Provides that a jurisdiction is not required to use the tools developed by HCD in 3) for its housing element sites inventory.
- Allows HCD to hire economists and data scientists to promulgate the tools in 3).
- Provides that the formulas, user interfaces, and other tools developed in 3) shall be used solely for the purposes of estimating realistic development capacity of sites, and not for other provisions of Housing Element Law.
- Specifies the types of “in-kind services” that qualify as “committed assistance” for the purposes of determining the number of preserved or rehabilitated housing units a jurisdiction may count toward its adequate sites obligation under Housing Element Law to include, but not be limited to, the following:
- Providing low interest predevelopment loans;
- Donating, dedicating, or providing a long-term lease of land, or an existing structure at below-market value; and,
- Any additional in-kind services identified in written guidance issued by HCD.
Background
Housing elements. Every city and county in California is required to develop a general plan that outlines the community’s vision of future development through a series of policy statements and goals. A community’s general plan lays the foundation for all future land use decisions, as these decisions must be consistent with the plan. General plans are comprised of several elements that address various land use topics. State law mandates seven elements: land use, circulation (e.g., traffic), housing, conservation, open-space, noise, and safety.
Each community’s general plan must include a housing element, which outlines a long-term plan for meeting the community’s existing and projected housing needs. The housing element demonstrates how the community plans to accommodate its “fair share” of its region’s housing needs. Following a staggered schedule, cities and counties located within the territory of a metropolitan planning organization (MPO) must revise their housing elements every eight years, and cities and counties in rural non-MPO regions must revise their housing elements every five years. These five- and eight-year periods are known as the housing element planning period.
In general, a jurisdiction’s housing element must identify and analyze existing and projected housing needs, identify adequate sites with appropriate zoning to meet its share of the RHNA, and ensure that regulatory systems provide opportunities for, and do not unduly constrain, housing development.
RHND & RHNA process. Before each housing element revision, each community is assigned its fair share of the region’s housing need for defined household income levels. Currently local agencies must plan for four separate income categories (very low-, low-, moderate-, and above-moderate income households). Beginning in the seventh housing element cycle, household income levels will include planning requirements for acutely low- and extremely low-income households. This planning occurs through a two-step process. First, HCD determines the aggregate housing need for the region during the planning period the housing element will cover (RHND); then the COG allocates the regional housing need to each city and county within the region (RHNA).
Sites Identification. In adopting a housing element, jurisdictions are required to prepare an inventory of land suitable and available for residential development. Where the inventory of sites does not include adequate sites to accommodate the housing needs for all household income levels, the jurisdiction’s housing element must include a program to make sites available during the planning period with appropriate zoning and development standards to accommodate the jurisdiction’s share of regional housing need that could not be accommodated on the land identified in the inventory. This includes a program to rezone sites within specific timeframes during the housing element period (typically three years for jurisdictions with a timely and compliant housing element).
Adequate Sites Program Alternative. Jurisdictions may satisfy up to 25% of their obligation to identify land for development in the housing element by implementing a program to make affordable housing units available through preservation or rehabilitation of existing affordable housing units, as well as conversion of existing property into affordable housing through committed assistance. A jurisdiction may reduce its obligation to identify adequate sites on a one-for-one basis for each unit that is maintained or created through this program of committed assistance.
Comments
- Author’s statement. “The current parcel-by-parcel review process for the site inventory analysis has grown cumbersome for local governments and HCD, generating conflict and litigation without improving the quality of site assessments. During the 6th RHNA, California cities and counties were subject to much more stringent standards for demonstrating the true development potential of housing sites, which in turn required extensive and expensive technical work. HCD review can involve multiple rounds of comments, clarifications, and revisions which require considerable staff resources. The requirements were particularly onerous for jurisdictions that planned to meet over half of their lower-income RHNA through redevelopment of occupied parcels because they had to show that current uses on those sites were reasonably expected to end within the planning horizon. SB 457 directs HCD to develop or approve economic formulas which may be used for assessing the realistic capacity of housing element inventory sites. This will resolve ambiguity as to what constitutes “realistic” capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. The use of the formulas proposed in this bill is voluntary, and jurisdictions may still elect to continue to use existing site inventory methodologies.”
- Adoption and Implementation of Housing Elements. All 540 cities and counties in California are required to plan for housing needs through the housing element of their general plans, which outlines a long-term strategy for meeting existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in higher population regions of the state and every five years in lower population regions. Local jurisdictions must adopt a legally compliant housing element, and receive approval of the housing element from HCD, by their statutory deadline. Failure to do so can result in escalating consequences, including accelerated rezoning deadlines, exposure to the “builder's remedy,” litigation, financial penalties, potential loss of permitting authority, or court receivership.
Among other things, a housing element must demonstrate how a jurisdiction plans to accommodate its share of the region's housing needs, or RHNA. To do so, a jurisdiction must identify an inventory of sites with sufficient capacity to accommodate its RHNA. If the jurisdiction does not already have adequate sites zoned to accommodate its RHNA, it must adopt a rezoning program to make additional sites available for housing development. Pursuant to Housing Element Law, jurisdictions that fail to adopt a substantially compliant housing element by the statutory deadline must complete their rezoning program within one year of the deadline, while jurisdictions that adopt a substantially compliant housing element by the deadline generally have three years from the beginning of the planning period to complete the rezonings.
- Probability of Development. In 2020, a group of University of California (UC) researchers published a brief titled A New Approach to the Housing Element Update.[1] In this brief, the authors argued that jurisdictions should move away from relying on theoretical housing capacity assumptions and instead evaluate the likelihood (or probability) that housing will actually be developed during the planning period. The authors contend that traditional housing element sites inventories often overstate likely housing production because they assume vacant and underutilized sites will be developed with housing in the housing element cycle, regardless of market conditions, existing uses, or redevelopment feasibility, even though many jurisdictions historically have not seen those sites develop as anticipated. Instead, the brief proposes that local governments use data and recent development trends to estimate the "probability of development" for sites with housing potential and calibrate site inventories accordingly, particularly in higher-opportunity and higher-demand neighborhoods where redevelopment is more likely to occur.
- In-Kind Services and Committed Assistance. Under current law, a local jurisdiction may provide up to 25% of its lower-income RHNA through the preservation of affordable housing. To qualify for that credit, it must demonstrate that it entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within two years of the agreement taking effect. However, HCD does not have any published specific guidance on what constitutes valid “in-kind services,” resulting in additional administrative ambiguity.
- Formulas and tools. This bill authorizes HCD, by July 1, 2028, to promulgate or approve one or more formulas, user interfaces, or other tools that jurisdictions may use to determine the “realistic capacity” of sites identified in a housing element sites inventory and authorizes HCD to hire economists and data scientists to develop them. If a jurisdiction elects to use an HCD-approved formula and properly applies it, then the use of any adopted formula, associated user interface, or tool by a local government shall not be subject to judicial review, unless the jurisdiction relied on substantially inaccurate or faulty data in using the tools. This bill requires each housing element sites inventory to specify both the number of units currently allowed on each site and the number that would be allowed following any required rezoning, regardless of whether or not the jurisdiction is using HCD's tools to fulfill its sites inventory obligations.
The HCD-approved formulas would be required to estimate site capacity using historical development data, site characteristics, and other statistically relevant information, including a presumptive probability of development and the total number of new units if the site is developed. This bill authorizes formulas developed or approved by HCD to estimate realistic capacity under existing zoning, the additional realistic capacity created through rezoning or removal of governmental constraints, and the realistic capacity of ADUs that will be developed and offered as housing during the planning period. Additionally, this bill authorizes formulas to exclude sites where the site size or zoning is not conducive to development at densities appropriate for lower- or moderate-income housing, including sites that do not allow for ministerial development. HCD may tailor the tools to particular cities or counties (which are not specified) where data limitations prevent statewide application. While this bill creates the option for jurisdictions to use these tools in their sites inventories and associated rezonings, it does not require them to do so, as some may prefer a more tailored local approach. HCD would be required to comply with the APA when developing these tools, formulas, and related guidance, but may release emergency regulations, which will remain in effect until permanent regulations are adopted.
Related/Prior Legislation:
AB 1886 (Alvarez, Chapter 267, Statutes of 2024)— clarified that a housing element or amendment is not considered substantially compliant with Housing Element Law until the local agency has adopted a housing element that HCD has determined is in substantial compliance with Housing Element Law, as specified.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Assembly Appropriations Committee:
HCD estimates General Fund costs of $1.58 million in fiscal years 2027-28 and 2028-29 for six additional positions, including two data scientists, one economist, two housing element specialists and one application/user interface developer, necessary to meet the requirements of this bill. These positions include staff resources not currently available at HCD, as well as additional support for housing element review tasks, promulgating regulations, providing technical assistance to jurisdictions, and reviewing sites inventories prepared with the new formulas.
In addition, HCD estimates one-time contract costs of $2 million for additional technical support and access to proprietary formulas and tools.
POSITIONS: (Communicated to the committee before noon on Tuesday, August 25, 2026.)
SUPPORT:
San Francisco Bay Area Planning and Urban Research Association (SPUR)
California Community Land Trust Network
City of Sunnyvale
Greenbelt Alliance
Housing Action Coalition
Housing Leadership Council
Mayor Matt Mahan, City of San Jose
Mountain View Community Land Trust
OPPOSITION:
Neighbors for a Better San Diego
ARGUMENTS IN SUPPORT: SPUR, the bill sponsor, writes in support: "SB 457 would authorize HCD to identify and approve specific economic models that assess whether jurisdictions have an adequate number of sites and zoned capacity to reasonably meet their RHNA goals. HCD would accept such an analysis as part of the housing element certification process subject to approval of the methods utilized. This approach will save HCD considerable time on review and give jurisdictions predictability and certainty in the review process. It is important to note that use of the formula is voluntary and that jurisdictions may elect to use existing site inventory methodologies."
ARGUMENTS IN OPPOSITION: Neighbors for a Better San Diego opposes the bill. They argue that while they are supportive of standardized formulas as a concept, they do not believe such a formula should be developed by HCD. They note their belief that housing goals are unfair as justification for their argument.
-- END --
https://lewis.ucla.edu/research/new-approach-housing-element-update/ ↑
SENATE THIRD READING
STR Bill Id:SB 457
Author:(Becker)
As Amended Ver:August 20, 2026
Majority vote
SUMMARY
Requires the Department of Housing and Community Development (HCD), by July 1, 2028, to develop one or more formulas or other tools that a jurisdiction may use when developing its housing element sites inventory and completing any rezoning required under Housing Element Law, and specifies the types of "in-kind services' that qualify as "committed assistance" for the purposes of determining the number of housing units a jurisdiction may count towards their adequate sites obligation under Housing Element Law.
Major Provisions
- Provides that the inventory of land suitable and available for residential development, as required by Housing Element Law, may rely on a formula promulgated or approved by HCD.
- Requires the sites inventory under Housing Element Law to specify the number of units allowed to be built on each site at the time of the housing element's adoption, and the number of units that will be allowed after any required rezoning, to accommodate a jurisdiction's regional housing needs allocation (RHNA).
- Mandates that HCD, by July 1, 2028, either promulgate one or more of its own formulas and associated user interfaces or other tools, or approve one or more third-party formulas or tools, for the purposes of determining housing capacity as part of the housing element process.
- Requires the formulas and associated user interfaces or other tools in 3) to allow a local government to determine all of the following:
- The realistic capacity of the housing element sites inventory under the regulatory status quo, including a presumptive probability of housing development for each site;
- The additional realistic capacity that will be provided through rezoning or removing a governmental constraint, including the presumptive probability of housing development and a total number of new units if the site is developed, with realistic capacity defined as a product of these terms; and
- The realistic capacity for Accessory Dwelling Units (ADUs) that will be developed and offered as housing during the planning period.
- Establishes the following parameters for the formula promulgated or approved by HCD pursuant to 3):
- It must be based on historical data on the development and redevelopment of a site or area, statistically related site characteristics, and, if available, other information probative of a site's probability of development or the total number of units if the site is developed;
- It may exclude sites where the site's size or underlying zoning are not conducive to project sizes or densities that HCD deems appropriate for lower income or moderate income housing, as applicable, including a site zoned to not allow ministerial development.
- The post-rezoning capacity of any lower-income site which is subject to a rezoning program shall be counted only if the program will zone the site to permit owner-occupied and rental multifamily uses by right for developments where at least 20 of the units are affordable to lower-income households;
- It requires the realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate income to be based on the site's probability of development during the planning period for housing multiplied by the total number of new units if the site is developed; and
- It may be limited to specific cities or counties if data availability or other reasonable considerations preclude making the formula universal.
- Provides that nothing shall excuse a jurisdiction from its obligation to identify specific sites adequate for the development of housing at various income levels.
- Allows HCD to adopt emergency regulations pursuant to the Administrative Procedures Act (APA) to implement this bill, and which shall remain in effect until the permanent regulations become effective.
- Provides that any formula, associated user interface, or tool promulgated or approved under 3) shall not limit a local government's discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
- Provides that a court may review whether a city or county that elected to use a formula promulgated or approved under 3) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data, but otherwise, the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
- Provides that a jurisdiction is not required to use the tools developed by HCD in 3) for its housing element sites inventory.
- Allows HCD to hire economists and data scientists to promulgate the tools in 3).
- Provides that the formulas, user interfaces, and other tools developed in 3) shall be used solely for the purposes of estimating realistic development capacity of sites, and not for other provisions of Housing Element Law.
- Specifies the types of "in kind services" that qualify as "committed assistance" for the purposes of determining the number of preserved or rehabilitated housing units a jurisdiction may count toward their adequate sites obligation under Housing Element Law to include, but not be limited to, the following:
- Providing low interest predevelopment loans;
- Donating, dedicating, or providing a long-term lease of land, or an existing structure at below-market value; and
- Any additional in-kind services identified in written guidance issued by HCD.
- Makes a number of findings and declarations.
- Makes other nonsubstantive and conforming changes.
COMMENTS
Adoption and Implementation of Housing Elements: All 540 cities and counties in California are required to plan for housing needs through the housing element of their general plans, which outlines a long-term strategy for meeting existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in higher population regions of the state and every five years in lower population regions. Local jurisdictions must adopt a legally compliant housing element, and receive approval of the housing element from HCD, by their statutory deadline. Failure to do so can result in escalating consequences, including accelerated rezoning deadlines, exposure to the "builder's remedy," litigation, financial penalties, potential loss of permitting authority, or court receivership.
Among other things, a housing element must demonstrate how a jurisdiction plans to accommodate its share of the region's housing needs, or RHNA. To do so, a jurisdiction must identify an inventory of sites with sufficient capacity to accommodate its RHNA. If the jurisdiction does not already have adequate sites zoned to accommodate its RHNA, it must adopt a rezoning program to make additional sites available for housing development. Pursuant to Housing Element Law, jurisdictions that fail to adopt a substantially compliant housing element by the statutory deadline must complete their rezoning program within one year of the deadline, while jurisdictions that adopt a substantially compliant housing element by the deadline generally have three years from the beginning of the planning period to complete the rezonings.
Probability of Development: In 2020, a group of University of California (UC) researchers published a brief titled A New Approach to the Housing Element Update.[1] In this brief, the authors argued that jurisdictions should move away from relying on theoretical housing capacity assumptions and instead evaluate the likelihood (or probability) that housing will actually be developed during the planning period. The authors contend that traditional housing element sites inventories often overstate likely housing production because they assume vacant and underutilized sites will be developed with housing in the housing element cycle, regardless of market conditions, existing uses, or redevelopment feasibility, even though many jurisdictions historically have not seen those sites develop as anticipated. Instead, the brief proposes that local governments use data and recent development trends to estimate the "probability of development" for sites with housing potential and calibrate site inventories accordingly, particularly in higher-opportunity and higher-demand neighborhoods where redevelopment is more likely to occur.
In-Kind Services and Committed Assistance: Under current law, a local jurisdiction may provide up to 25% of its lower-income RHNA through the preservation of affordable housing. In order to qualify for receiving that credit, they must demonstrate that they have entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within two years of the agreement taking effect. However, HCD does not have any published specific guidance on what constitutes valid "in-kind services," resulting in additional administrative ambiguity.
This Bill: This bill authorizes HCD, by July 1, 2028, to promulgate or approve one or more formulas, user interfaces, or other tools that jurisdictions may use to determine the "realistic capacity" of sites identified in a housing element sites inventory and authorizes HCD to hire economists and data scientists to develop them. If a jurisdiction elects to use an HCD-approved formula and properly applies it, then the use of any adopted formula, associated user interface, or tool by a local government shall not be subject to judicial review, unless the jurisdiction relied on substantially inaccurate or faulty data in using the tools. This bill requires each housing element sites inventory to specify both the number of units currently allowed on each site and the number that would be allowed following any required rezoning, regardless of whether or not the jurisdiction is using HCD's tools to fulfil its sites inventory obligations.
The HCD-approved formulas would be required to estimate site capacity using historical development data, site characteristics, and other statistically relevant information, including a presumptive probability of development and the total number of new units if the site is developed. This bill authorizes formulas developed or approved by HCD to estimate realistic capacity under existing zoning, the additional realistic capacity created through rezoning or removal of governmental constraints, and the realistic capacity of ADUs that will be developed and offered as housing during the planning period. Additionally, this bill authorizes formulas to exclude sites where the site size or zoning are not conducive to development at densities appropriate for lower- or moderate-income housing, including sites that do not allow for ministerial development. HCD may tailor the tools to particular cities or counties (which are not specified) where data limitations prevent statewide application. While this bill creates the option for jurisdictions to use these tools in their sites inventories and associated rezonings, it does not require them to do so, as some may prefer a more tailored local approach. HCD would be required to comply with the Administrative Procedure Act (APA) when developing these tools, formulas, and related guidance, but may release emergency regulations which will remain in effect until permanent regulations become effective.
Finally, this bill expands the definition of "in-kind services" that may qualify as "committed assistance" for purposes of allowing jurisdictions to count preserved or rehabilitated affordable housing units toward a portion of their adequate sites obligation under Housing Element Law. Specifically, it provides that qualifying "in-kind services" include: providing low-interest predevelopment loans, donating or leasing land or structures below market value, and other in-kind services identified in HCD's guidance.
According to the Author
"The current parcel-by-parcel review process for the site inventory analysis has grown burdensome for both local governments and the Department of Housing and Community Development (HCD), generating conflict and litigation without improving the quality of site assessments. During the 6th RHNA, California cities and counties were subject to much more stringent standards for demonstrating the true development potential of housing sites, which in turn required extensive and expensive technical work. HCD review can involve multiple rounds of comments, clarifications, and revisions which injects uncertainty into the process while HCD expends considerable staff resources evaluating housing element compliance. The requirements were particularly onerous for jurisdictions that planned to meet over half of their lower-income RHNA through redevelopment of occupied parcels because they had to show that current uses on those sites were reasonably expected to end within the planning horizon.
SB 457 directs HCD to develop or approve statistical formulas which may be used for assessing the realistic capacity of housing element inventory sites by January 1, 2028, in time for 7th Cycle Housing Element development process. This will resolve ambiguity as to what constitutes "realistic" capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. It is important to note that use of the formulas proposed in this bill are voluntary and jurisdictions may still elect to continue to use existing site inventory methodologies. It is time to move towards including data-driven statistical estimates of the likelihood and extent of future residential development in the housing element process and make it more effective and efficient."
Arguments in Support
SPUR, the bill sponsor, writes in support: "SB 457 would authorize HCD to identify and approve specific economic models that assess whether jurisdictions have an adequate number of sites and zoned capacity to reasonably meet their RHNA goals. HCD would accept such an analysis as part of the housing element certification process subject to approval of the methods utilized. This approach will save HCD considerable time on review and give jurisdictions predictability and certainty in the review process. It is important to note that use of the formula is voluntary and that jurisdictions may elect to use existing site inventory methodologies."
Arguments in Opposition
None on file for current bill version.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
HCD estimates General Fund costs of $1.58 million in fiscal years 2027-28 and 2028-29 for six additional positions, including two data scientists, one economist, two housing element specialists and one application/user interface developer, necessary to meet the requirements of this bill. These positions include staff resources not currently available at HCD, as well as additional support for housing element review tasks, promulgating regulations, providing technical assistance to jurisdictions, and reviewing sites inventories prepared with the new formulas.
In addition, HCD estimates one-time contract costs of $2 million for additional technical support and access to proprietary formulas and tools.
VOTES
SENATE FLOOR: 39-0-1
YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
ABS, ABST OR NV: Gonzalez
ASM HOUSING AND COMMUNITY DEVELOPMENT: 10-1-1
YES: Haney, Patterson, Ávila Farías, Caloza, Ward, Kalra, Lee, Quirk-Silva, Wicks, Wilson
NO: Tangipa
ABS, ABST OR NV: Ta
ASM LOCAL GOVERNMENT: 8-1-1
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
NO: Johnson
ABS, ABST OR NV: Ta
ASM APPROPRIATIONS: 11-2-2
YES: Wicks, Arambula, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Dixon, Tangipa
ABS, ABST OR NV: Hoover, Ta
UPDATED
VERSION: August 20, 2026
CONSULTANT: Dori Ganetsos / H. & C.D. / (916) 319-2085 FN: 0003951
https://lewis.ucla.edu/research/new-approach-housing-element-update/ ↑
SENATE THIRD READING
STR Bill Id:SB 457
Author:(Becker)
As Amended Ver:August 13, 2026
Majority vote
SUMMARY
Requires the Department of Housing and Community Development (HCD), by January 1, 2028, to develop formulas or other tools that a jurisdiction may use when developing its housing element sites inventory and completing any rezoning required under Housing Element Law, and specifies the types of "in-kind services' that qualify as "committed assistance" for the purposes of determining the number of housing units a jurisdiction may count towards their adequate sites obligation under Housing Element Law.
Major Provisions
- Provides that the inventory of land suitable and available for residential development, as required by Housing Element Law, may rely on a formula promulgated or approved by HCD for purposes of estimating the realistic development capacity of the sites inventory.
- Requires the sites inventory under Housing Element Law to specify the number of units allowed to be built on each site at the time of the housing element's adoption, and the number of units that will be allowed after any required rezoning, to accommodate a jurisdiction's regional housing needs allocation (RHNA).
- Mandates that HCD, by January 1, 2028, either promulgate its own formulas and associated user interfaces or other tools, or approve third-party formulas or tools, for the purposes of determining housing capacity as part of the housing element process.
- Requires the formulas and associated user interfaces or other tools in 3) to allow a local government to determine all of the following:
- The realistic capacity of the housing element sites inventory under the regulatory status quo, including a presumptive probability of housing development for each site;
- The additional realistic capacity that will be provided through rezoning or removing a governmental constraint, including the presumptive probability of housing development and a total number of new units if the site is developed, with realistic capacity defined as a product of these terms; and
- The realistic capacity for Accessory Dwelling Units (ADUs) that will be developed and offered as housing during the planning period.
- Establishes the following parameters for the formula promulgated or approved by HCD pursuant to 3):
- It must be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and, if available, other information probative of a site's probability of development or the total number of units if the site is developed;
- It may exclude sites where the site's size or underlying zoning are not conducive to project sizes or densities that HCD deems appropriate for lower income or moderate income housing, as applicable, including a site zoned to not allow ministerial development. The post rezoning capacity of any lower-income site which is subject to a rezoning program shall be counted only if the program will zone the site to permit owner-occupied and rental multifamily uses by right for developments where at least 20$ of the units are affordable to lower-income households;
- It requires the realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate income to be based on the site's probability of development during the planning period for housing multiplied by the total number of new units if the site is developed; and
- It may be limited to specific cities or counties if data availability or other reasonable considerations preclude making the formula universal.
- Allows HCD to adopt emergency regulations pursuant to the Administrative Procedures Act (APA) to implement this bill, and requires HCD to adopt nonemergency regulations pursuant to the APA no later than January 30, 2029.
- Provides that any formula, associated user interface, or tool promulgated or approved under 3) shall not limit a local government's discretion to establish the housing element inventory of sites to which the formula, associated user interface, or tool will be applied to assess the realistic capacity of the inventory sites.
- Provides that a court may review whether a city or county that elected to use a formula promulgated or approved under 3) misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data, but otherwise, the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review.
- Provides that a jurisdiction is not required to use the tools developed by HCD in 3) for its housing element sites inventory.
- Allows HCD to hire economists and data scientists to promulgate the tools in 3).
- Provides that the formulas, user interfaces, and other tools developed in 3) shall be used solely for the purposes of estimating realistic development capacity of sites, and not for other provisions of Housing Element Law.
- Specifies the types of "in kind services" that qualify as "committed assistance" for the purposes of determining the number of preserved or rehabilitated housing units a jurisdiction may count toward their adequate sites obligation under Housing Element Law to include, but not be limited to, the following:
- Providing low interest predevelopment loans;
- Donating, dedicating, or providing a long-term lease of land, or an existing structure at below-market value; and
- Any additional in-kind services identified in written guidance issued by HCD.
- Makes other nonsubstantive and conforming changes.
COMMENTS
Adoption and Implementation of Housing Elements: All 540 cities and counties in California are required to plan for housing needs through the housing element of their general plans, which outlines a long-term strategy for meeting existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in higher population regions of the state and every five years in lower population regions. Local jurisdictions must adopt a legally compliant housing element, and receive approval of the housing element from HCD, by their statutory deadline. Failure to do so can result in escalating consequences, including accelerated rezoning deadlines, exposure to the "builder's remedy," litigation, financial penalties, potential loss of permitting authority, or court receivership.
Among other things, a housing element must demonstrate how a jurisdiction plans to accommodate its share of the region's housing needs, or RHNA. To do so, a jurisdiction must identify an inventory of sites with sufficient capacity to accommodate its RHNA. If the jurisdiction does not already have adequate sites zoned to accommodate its RHNA, it must adopt a rezoning program to make additional sites available for housing development. Pursuant to Housing Element Law, jurisdictions that fail to adopt a substantially compliant housing element by the statutory deadline must complete their rezoning program within one year of the deadline, while jurisdictions that adopt a substantially compliant housing element by the deadline generally have three years from the beginning of the planning period to complete the rezonings.
Probability of Development: In 2020, a group of University of California (UC) researchers published a brief titled A New Approach to the Housing Element Update.[1] In this brief, the authors argued that jurisdictions should move away from relying on theoretical housing capacity assumptions and instead evaluate the likelihood (or probability) that housing will actually be developed during the planning period. The authors contend that traditional housing element sites inventories often overstate likely housing production because they assume vacant and underutilized sites will be developed with housing in the housing element cycle, regardless of market conditions, existing uses, or redevelopment feasibility, even though many jurisdictions historically have not seen those sites develop as anticipated. Instead, the brief proposes that local governments use data and recent development trends to estimate the "probability of development" for sites with housing potential and calibrate site inventories accordingly, particularly in higher-opportunity and higher-demand neighborhoods where redevelopment is more likely to occur.
In-Kind Services and Committed Assistance: Under current law, a local jurisdiction may provide up to 25% of its lower-income RHNA through the preservation of affordable housing. In order to qualify for receiving that credit, they must demonstrate that they have entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within two years of the agreement taking effect. However, HCD does not have any published specific guidance on what constitutes valid "in-kind services," resulting in additional administrative ambiguity.
This Bill: This bill authorizes HCD, by January 1, 2028, to promulgate or approve formulas, user interfaces, or other tools that jurisdictions may use to determine the "realistic capacity" of sites identified in a housing element sites inventory and authorizes HCD to hire economists and data scientists to develop them. If a jurisdiction elects to use an HCD-approved formula and properly applies it, then the use of any adopted formula, associated user interface, or tool by a local government shall not be subject to judicial review, unless the jurisdiction relied on substantially inaccurate or faulty data in using the tools. This bill requires each housing element sites inventory to specify both the number of units currently allowed on each site and the number that would be allowed following any required rezoning, regardless of whether or not the jurisdiction is using HCD's tools to fulfil its sites inventory obligations.
The HCD-approved formulas would be required to estimate site capacity using historical development data, site characteristics, and other statistically relevant information, including a presumptive probability of development and the total number of new units if the site is developed. This bill authorizes formulas developed or approved by HCD to estimate realistic capacity under existing zoning, the additional realistic capacity created through rezoning or removal of governmental constraints, and the realistic capacity of ADUs that will be developed and offered as housing during the planning period. Additionally, this bill authorizes formulas to exclude sites where the site size or zoning are not conducive to development at densities appropriate for lower- or moderate-income housing, including sites that do not allow for ministerial development. HCD may tailor the tools to particular cities or counties (which are not specified) where data limitations prevent statewide application. While this bill creates the option for jurisdictions to use these tools in their sites inventories and associated rezonings, it does not require them to do so, as some may prefer a more tailored local approach. HCD would be required to comply with the Administrative Procedure Act (APA) when developing these tools, formulas, and related guidance, but may release emergency regulations before January 30, 2029, at which point they must adopt nonemergency regulations.
Finally, this bill expands the definition of "in-kind services" that may qualify as "committed assistance" for purposes of allowing jurisdictions to count preserved or rehabilitated affordable housing units toward a portion of their adequate sites obligation under Housing Element Law. Specifically, it provides that qualifying "in-kind services" include: providing low-interest predevelopment loans, donating or leasing land or structures below market value, and other in-kind services identified in HCD's guidance.
According to the Author
"The current parcel-by-parcel review process for the site inventory analysis has grown burdensome for both local governments and the Department of Housing and Community Development (HCD), generating conflict and litigation without improving the quality of site assessments. During the 6th RHNA, California cities and counties were subject to much more stringent standards for demonstrating the true development potential of housing sites, which in turn required extensive and expensive technical work. HCD review can involve multiple rounds of comments, clarifications, and revisions which injects uncertainty into the process while HCD expends considerable staff resources evaluating housing element compliance. The requirements were particularly onerous for jurisdictions that planned to meet over half of their lower-income RHNA through redevelopment of occupied parcels because they had to show that current uses on those sites were reasonably expected to end within the planning horizon.
SB 457 directs HCD to develop or approve statistical formulas which may be used for assessing the realistic capacity of housing element inventory sites by January 1, 2028, in time for 7th Cycle Housing Element development process. This will resolve ambiguity as to what constitutes "realistic" capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. It is important to note that use of the formulas proposed in this bill are voluntary and jurisdictions may still elect to continue to use existing site inventory methodologies. It is time to move towards including data-driven statistical estimates of the likelihood and extent of future residential development in the housing element process and make it more effective and efficient."
Arguments in Support
SPUR, the bill sponsor, writes in support: "SB 457 would authorize HCD to identify and approve specific economic models that assess whether jurisdictions have an adequate number of sites and zoned capacity to reasonably meet their RHNA goals. HCD would accept such an analysis as part of the housing element certification process subject to approval of the methods utilized. This approach will save HCD considerable time on review and give jurisdictions predictability and certainty in the review process. It is important to note that use of the formula is voluntary and that jurisdictions may elect to use existing site inventory methodologies."
Arguments in Opposition
None on file for current bill version.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
HCD estimates General Fund costs of $1.58 million in fiscal years 2027-28 and 2028-29 for six additional positions, including two data scientists, one economist, two housing element specialists and one application/user interface developer, necessary to meet the requirements of this bill. These positions include staff resources not currently available at HCD, as well as additional support for housing element review tasks, promulgating regulations, providing technical assistance to jurisdictions, and reviewing sites inventories prepared with the new formulas.
In addition, HCD estimates one-time contract costs of $2 million for additional technical support and access to proprietary formulas and tools.
VOTES
SENATE FLOOR: 39-0-1
YES: Allen, Alvarado-Gil, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Choi, Cortese, Dahle, Durazo, Grayson, Grove, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Padilla, Pérez, Reyes, Richardson, Rubio, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
ABS, ABST OR NV: Gonzalez
ASM HOUSING AND COMMUNITY DEVELOPMENT: 10-1-1
YES: Haney, Patterson, Ávila Farías, Caloza, Ward, Kalra, Lee, Quirk-Silva, Wicks, Wilson
NO: Tangipa
ABS, ABST OR NV: Ta
ASM LOCAL GOVERNMENT: 8-1-1
YES: Carrillo, Pacheco, Ramos, Ransom, Blanca Rubio, Stefani, Ward, Wilson
NO: Johnson
ABS, ABST OR NV: Ta
ASM APPROPRIATIONS: 11-2-2
YES: Wicks, Arambula, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
NO: Dixon, Tangipa
ABS, ABST OR NV: Hoover, Ta
UPDATED
VERSION: August 13, 2026
CONSULTANT: Dori Ganetsos / H. & C.D. / (916) 319-2085 FN: 0003552
https://lewis.ucla.edu/research/new-approach-housing-element-update/ ↑
Date of Hearing: August 5, 2026
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
SBPCA Bill Id:SB 457
Author:(Becker) – As Amended Ver:June 11, 2026
Policy Committee: | Housing and Community Development | Vote: | 10 - 1 |
Local Government | 8 - 1 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the Department of Housing and Community Development (HCD) to develop or approve statistical formulas a city or county may use to determine the realistic capacity of housing element inventory sites based on the probability of development.
Specifically, among its major provisions, this bill:
- Allows specified required housing element analyses to rely on a formula promulgated or approved by HCD (HCD formula).
- Specifies, if a jurisdiction uses an HCD formula, the jurisdiction has satisfied the related requirements under Housing Element Law, unless it misapplies the formula or relies on faulty data to use the formula.
- Requires HCD, by January 1, 2028, to either promulgate its own formulas and associated user interfaces or other tools, or approve third-party formulas or tools, for the purposes of determining housing capacity as part of the housing element process.
- Requires the HCD formulas, associated user interfaces, and tools in item 3, above, to allow a city or county to determine the following:
- The realistic capacity of the housing element sites inventory under the regulatory status quo, including a presumptive probability of housing development for each site.
- The additional realistic capacity provided through rezoning or removing a governmental constraint, including the presumptive probability of housing development for each site.
- The realistic capacity for accessory dwelling units (ADUs).
- Requires an HCD formula to be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and other specified data, if available, and allows the formula to be limited to specific cities or counties if data availability or other reasonable considerations preclude making the formula universal.
- Specifies a local agency is not required to use an HCD formula, associated user interface, or tool developed pursuant to this bill.
- Authorizes HCD to hire economists and data scientists to promulgate the formulas and associated user interfaces or other tools.
- Excludes the use of an HCD formula, associated user interface, or tool by a city or county from judicial review, except a court may review whether a city or county misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
- Defines “in kind services” that qualify as committed assistance for the purposes of determining the number of preserved or rehabilitated housing units a jurisdiction may count toward its adequate sites obligation under Housing Element Law to include, but not be limited to, (a) providing low interest predevelopment loans, (b) donating, dedicating, or providing a long-term lease of land, or an existing structure at below-market value, and (c) any additional in-kind services identified in written guidance issued by HCD.
FISCAL EFFECT:
HCD estimates General Fund costs of $1.58 million in fiscal years 2027-28 and 2028-29 for six additional positions, including two data scientists, one economist, two housing element specialists and one application/user interface developer, necessary to meet the requirements of this bill. These positions include staff resources not currently available at HCD, as well as additional support for housing element review tasks, promulgating regulations, providing technical assistance to jurisdictions, and reviewing sites inventories prepared with the new formulas.
In addition, HCD estimates one-time contract costs of $2 million for additional technical support and access to proprietary formulas and tools.
COMMENTS:
- Purpose. According to the author:
Producing the housing we need in California requires a partnership among the State, local governments and the private, non-profit and for-profit housing developers. [This bill] directs [HCD] to develop or approve statistical formulas which may be used for assessing the realistic capacity of housing element inventory sites by January 1, 2028, in time for the 7th Cycle Housing Element development process. This will resolve ambiguity as to what constitutes “realistic” capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. The current parcel-by-parcel review process has grown burdensome for both local governments and HCD, generating conflict and litigation without improving the quality of site assessments.
This bill is sponsored by the San Francisco Bay Area Planning and Urban Research Association (SPUR) and is supported by the Bay Area Council and others.
- Background. Housing Elements. Existing law requires every city and county to plan for housing needs through the housing element of their general plans, which outlines a long-term strategy for meeting existing and projected housing needs. Each local jurisdiction must adopt a legally compliant housing element, and receive approval of the housing element from HCD, by the jurisdiction’s statutory deadline.
Among other things, a housing element must demonstrate how a jurisdiction plans to accommodate its share of the region’s housing needs by identifying an inventory of sites with sufficient capacity to accommodate its share of regional housing needs. If the jurisdiction does not have adequate sites zoned, it must adopt a rezoning program to make additional sites available for housing development.
Probability of Development. In 2020, a group of University of California (UC) researchers published a brief in which the authors asserted that traditional housing element site inventories often overstate likely housing production because they assume vacant and underutilized sites will be developed with housing in the housing element cycle, regardless of market conditions, existing uses, or redevelopment feasibility, even though many jurisdictions historically have not seen those sites develop as anticipated.
The UC authors suggested an alternative approach in which local governments use data and recent development trends to estimate the “probability of development” for sites with housing potential and calibrate site inventories accordingly, particularly in higher-opportunity and higher-demand neighborhoods where redevelopment is more likely to occur.
The UC authors acknowledged that implementing such an approach would create technical and administrative challenges, including the need for more sophisticated local land use data and analytical capacity. They further suggested that HCD would likely need to provide technical assistance, standardized methodologies, or redevelopment probability estimates to support local governments in carrying out the analysis.
This bill requires HCD to develop this alternative approach by January 1, 2028, and allows HCD to contract with outside experts for assistance. The bill does not require a city or county to use HCD’s approved formula, but jurisdictions that properly apply the formula will be deemed compliant with the corresponding site inventory requirements.
In-kind Services. Under existing law, a local jurisdiction may provide up to 25% of its share of lower-income regional housing needs through the preservation of affordable housing. To qualify for this credit, the local jurisdiction must demonstrate it has a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within two years of the agreement taking effect. Neither existing law nor HCD guidance defines “in-kind services.” This bill provides a definition.
- Opposition. The bill is opposed by the California Council for Affordable Housing, California Building Industry Association, and California Apartment Association. The author’s staff and sponsor indicate they have reached an agreement with the opposition on amendments that address remaining concerns.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: July 1, 2026
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Juan Carrillo, Chair
SBPCA Bill Id:SB 457
Author:(Becker) – As Amended Ver:June 11, 2026
SENATE VOTE: 39-0
SUBJECT: Housing element compliance: committed assistance: in-kind services: realistic capacity formula
SUMMARY: Requires the Department of Housing and Community Development (HCD), by January 1, 2028, to develop formulas or other tools that a jurisdiction may use when developing its housing element sites inventory and completing any rezoning required under Housing Element Law, and specifies the types of “in-kind services’ that qualify as “committed assistance” for the purposes of determining the number of housing units a jurisdiction may count towards their adequate sites obligation under Housing Element Law. Specifically, this bill:
- Makes various findings and declarations relating to the burdensome process for writing, reviewing, and implementing housing elements for local and state officials and the need to simplify the writing and review of the seventh housing element by authorizing HCD to issue formulas, associated use interfaces, or other tools for assessing the capacity of sites for residential uses.
- Provides that the inventory of land suitable and available for residential development, the analysis of the relationship of zoning and public facilities and services to the sites, and the analysis of the relationship of the sites identified in the land inventory to the jurisdiction’s duty to affirmatively further fair housing (AFFH) may rely on a formula promulgated or approved by HCD.
- Specifies that if a jurisdiction uses the formula developed by HCD, it is determined to have satisfied the related requirements under Housing Element Law, unless it misapplies the formula or relies on faulty data to use the formula.
- Requires the sites inventory in Housing Element Law (sites inventory) to specify the number of units allowed to be built on each site at the time of the housing element’s adoption, and the number that will be allowed after rezoning, as specified, to accommodate the city’s or county’s share of its regional housing need allocation (RHNA).
- Requires, on or before January 1, 2028, HCD to take one of the following actions:
- Promulgate formulas and associated user interfaces or other tools for the information, as specified.
- Approve formulas and associated user interfaces or other tools developed by third parties, as specified.
- Provides, except as provided by 6) d) below, that the formula and associated user interfaces or other tools promulgated or approved by HCD shall allow for a determination to be made for all of the following:
- The realistic capacity of the sites inventory under the regulatory status quo, including a presumptive probability of housing development at any level of affordability for each site, with realistic capacity defined as the product of these terms.
- The additional realistic capacity that will be provided by a rezoning program or removal of a government constraint, including a presumptive probability of development at any level of affordability and a number of units conditional on development at any level of affordability for each site, with additional realistic capacity defined as the product of these terms per the applicable formula promulgated under a).
- The realistic capacity for accessory dwelling units (ADUs).
- Establishes the following parameters for the formula promulgated or approved by HCD:
- Requires the formula promulgated or approved by HCD to be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and, if available, other information probative of a site’s probability of development or the total number of units conditional on development.
- Authorizes, for the purposes of determining capacity for housing at a level of affordability at or below above-moderate income, the formula promulgated or approved by HCD to exclude sites where size or zoning is not conducive to project sizes or densities that HCD deems appropriate for lower income or moderate-income housing, as applicable, including a site zoned to not allow ministerial development.
- Requires the realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate income to be based on the site’s probability of development during the planning period for housing at any level of affordability multiplied by the total expected units conditional on development at any level of affordability.
- Allows the formula promulgated or approved by HCD to be limited to specified cities or counties if data availability or other reasonable consideration preclude making the formula universal.
- Requires HCD to comply with requirements of the Administrative Procedures Act (APA) when promulgating, approving, or making a material change to a formula, associated user interface, or tool. Provides that a nonmaterial change to an approved formula, associated user interface, or tool may be implemented without prior notice, pursuant to the APA.
- Provides that the use of any adopted formula, associated user interface, or tool by a city or county shall not be subject to judicial review. However, a court is authorized to review whether a city or county that elected to use a formula promulgated or approved, pursuant to this bill, misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
- Provides that a city or county is not required to use a formula, associated user interface, or tool promulgated or approved by HCD.
- Authorizes HCD to hire economists and data scientists for the purpose of promulgating the formulas and associated user interfaces or other tools.
- Defines “in-kind services” to mean nonmonetary assistance provided by a city or county that materially reduces development costs or materially facilitates the acquisition, rehabilitation, or preservation of units eligible under this bill. “In kind services” include, but are not limited to, all of the following:
- Provision of predevelopment loans that bear interest at or below the rates authorized by existing law governing predevelopment loans [Health and Safety Code (HSC) § 50532] with repayment terms that do not exceed those authorized under existing law, as specified.
- The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.
- Any additional in-kind services identified in written guidance issued by HCD.
- Makes technical and conforming changes.
EXISTING LAW:
- Provides that each community’s fair share of housing be determined through the RHNA process. Sets out the process as follows:
- Department of Finance and HCD develop regional housing needs determinations.
- Councils of Governments (COGs) allocate housing via RHNA within each region based on these determinations, and where a COG does not exist, HCD conducts the allocations.
- Cities and counties incorporate these allocations into their housing elements. [Government Code (GOV) §65584 and 65584.01]
- Requires HCD, in consultation with each COG, to determine each region’s share of housing need at least two years prior to the scheduled revision of the housing element, as provided, and requires the COG or HCD to adopt a final RHNA that allocates a share of the regional housing need to each city or county at least one year prior to the housing element due date for the region. [GOV §65584(b)]
- 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 the regional housing need, among other things.
- A statement of the community’s goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing.
- A program that sets forth a schedule of actions during the planning period, and timelines for implementation, that the local government is undertaking to implement the policies and achieve the goals and objectives of the housing element, including actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the local government’s share of the regional housing need for each income level that could not be accommodated on sites identified in the sites inventory without rezoning, among other things. [GOV 65583 §(a)-(c)]
- Defines “committed assistance” to mean 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. (GOV § 65583.1)
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
- Bill Summary. This bill requires HCD, by January 1, 2028, to promulgate or approve formulas, user interfaces, or other tools that jurisdictions may use to determine the “realistic capacity” of sites identified in a housing element sites inventory and authorizes HCD to hire economists and data scientists to develop them. If a jurisdiction elects to use an HCD-approved formula and properly applies it, this bill provides that the jurisdiction is deemed to have satisfied specified Housing Element Law requirements related to the sites inventory, analysis of zoning and public facilities, and the relationship of identified sites to fulfill the jurisdiction’s AFFH duties, unless the jurisdiction relied on substantially inaccurate or faulty data in using the tools. This bill requires each housing element sites inventory to specify both the number of units currently allowed on each site and the number that would be allowed following any required rezoning, regardless of whether the jurisdiction is using HCD’s tools to fulfil its sites inventory obligations.
The HCD-approved formulas would be required to estimate site capacity using historical development data, site characteristics, and other statistically relevant information, including a presumptive probability of development and the expected number of units conditional on development. This bill authorizes formulas developed or approved by HCD to estimate realistic capacity under existing zoning, the additional realistic capacity created through rezoning or removal of governmental constraints, and the realistic capacity of ADUs. Additionally, this bill authorizes formulas to exclude sites where the site size or zoning are not conducive to development at densities appropriate for lower- or moderate-income housing, including sites that do not allow for ministerial development. HCD may tailor the tools to particular cities or counties (which are not specified) where data limitations prevent statewide application. Under this bill, local agencies have the discretion to use the formulas or tools promulgated by HCD.
This bill also provides that any formula or tool promulgated or approved by HCD to undergo the requirements of the APA when developing and making material changes to the formula or tools. For cities and counties that have used a formula or tool approved or promulgated by HCD, this bill allows a court to review whether a jurisdiction misapplied the formula or if the jurisdiction relied on substantially inaccurate, misclassified, or faulty data. However, the bill also provides that the use of any adopted formula or tool by a city or county shall not be subject to juridical review.
Lastly, this bill defines “in-kind services” that may qualify as “committed assistance” under for purposes of allowing jurisdictions to count preserved or rehabilitated affordable housing units toward a portion of their adequate sites obligation under Housing Element Law. Specifically, it provides that qualifying “in-kind services” include but is not limited to: providing low-interest predevelopment loans, donating or leasing land or structures below market value, and other in-kind services identified in HCD’s guidance
This bill is sponsored by the San Francisco Planning and Urban Research Association (SPUR).
- Author’s Statement. According to the author, “Producing the housing we need in California requires a partnership among the State, local governments and the private, non-profit and for-profit housing developers. SB 457 directs the [HCD] develop or approve statistical formulas which may be used for assessing the realistic capacity of housing element inventory sites by January 1, 2028, in time for the 7th Cycle Housing Element development process. This will resolve ambiguity as to what constitutes “realistic” capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. Despite guidance from HCD many local jurisdictions still don’t view the process as being tied to a binding standard. The current parcel-by-parcel review process has grown burdensome for both local governments and HCD, generating conflict and litigation without improving the quality of site assessments.”
- Planning for Housing. The California Constitution allows cities and counties to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public—including land use authority.
Cities and counties use their police power to enact zoning ordinances that shape development, such as setting maximum heights and densities for housing units, minimum numbers of required parking spaces, setbacks to preserve privacy, lot coverage ratios to increase open space, and others. These ordinances can also include conditions on development to address aesthetics, community impacts, or other particular site-specific consideration. Zoning ordinances and other development decisions must be consistent with the city or county’s general plan. - 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, also known as the regional housing need determination (RHND). 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.
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.
- In-Kind Services and Committed Assistance. Under current law, a local jurisdiction may provide up to 25% of its lower-income RHNA through the preservation of affordable housing. In order to qualify for receiving that credit, they must demonstrate that they have entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within 2 years of the agreement taking effect. However, existing law does not specify and HCD has not provided guidance on what constitutes valid “in-kind services.”
- Probability of Development. In 2020, a group of University of California (UC) researchers published a brief titled A New Approach to the Housing Element Update. In this brief, the authors argued that jurisdictions should move away from relying on theoretical housing capacity assumptions and instead evaluate the likelihood (or probability) that housing will be developed during the planning period. The authors of the brief contend that traditional housing element sites inventories often overstate likely housing production because they assume vacant and underutilized sites will be developed with housing in the housing element cycle, regardless of market conditions, existing uses, or redevelopment feasibility, even though many jurisdictions historically have not seen those sites develop as anticipated.
Instead, the brief proposes that local governments use data and recent development trends to estimate the “probability of development” for sites with housing potential and calibrate site inventories accordingly, particularly in higher-opportunity and higher-demand neighborhoods where redevelopment is more likely to occur. The authors of the brief also acknowledged that implementing such an approach would create technical and administrative challenges, including the need for more sophisticated local land use data and analytical capacity, and suggested that HCD would likely need to provide technical assistance, standardized methodologies, or redevelopment probability estimates to support local governments in carrying out the analysis consistently. - Administrative Procedures. The Administrative Procedure Act (APA) establishes standard provisions that apply to rulemaking proceedings as well as the adjudicative procedures related to administrative hearings. Similar to other laws with broad application, such as the Fair Political Practices Act or the Ralph M. Brown Act (Brown Act), the APA is structured in a way that it can be applied to a wide universe of public entities, officials, or actions. The APA applies broadly to state agencies unless a statute specifically exempts an agency or action from the APA.
- Rulemaking Actions Under the APA. The Office of Administrative Law (OAL) administers the rulemaking provisions of the APA and reviews rulemaking proceedings prepared by state agencies. The APA establishes procedures that all agencies must follow when developing regulations that implement or make clear statutory provisions. While the specific scope of an agency’s authority to implement a particular statute is typically embedded in that statute, the APA establishes uniform procedures that agencies must comply with when adopting regulations. This includes, but is not limited to, the following requirements for rulemaking agencies proposing to add, amend or repeal regulations:
- Requirements for rulemaking agencies to prepare an initial statement of reasons (ISOR) explaining the specific purpose and necessity of each section of the regulation.
- Requirements for rulemaking agencies to prepare an estimate of the economic impact of the proposed regulations.
- Requirements for rulemaking agencies to hold an initial 45-day comment period on the initial draft of the regulations and subsequent 15-day comment periods on any proposed changes to the initial regulations that occur during the rulemaking period.
- Requirements for rulemaking agencies to hold a public hearing if requested by interested parties.
- Requirements for rulemaking agencies to prepare written responses to written comments received during the 45-day or any subsequent 15-day comment period as well as any oral comments received at a public hearing.
- Requirements to prepare a final statement of reasons (FSOR) recognizing changes made throughout the rulemaking process and deviations from the ISOR.
- Requirements to complete the rulemaking and submit the rulemaking record to OAL for review and approval within one year.
OAL reviews rulemaking proceedings to ensure compliance with the APA, such as whether the agency has sufficiently demonstrated that specific provisions of the regulations are necessary to implement the statute, whether the agency has complied with the timelines and disclosure requirements of the APA, and whether the agency responded to all germane comments submitted to the agency regarding the rulemaking proceeding.
- Hearings Under the APA. The APA additionally establishes standards for informal and formal hearings conducted either directly by state agencies and commissions or by the OAH on their behalf. The statute provides a standard process and code of procedures that govern hearings and ensure the rights of parties to the hearing are protected. The statute governs hearing procedures for more than 1,500 state and local agencies. The statute is written broadly enough to be applicable to and govern the array of state administrative hearings on a variety of subjects. For example, APA hearing requirements apply to hearings related to appeals of penalties issued for violations of environmental regulations, actions to suspend or revoke a medical license, actions related to financial audits of local education agencies, administrative fines assessed by the Department of Corrections, and many more.
The adjudicative procedures embedded in the APA include requirements for the conduct of informal and formal administrative hearings.
- Previous Legislation. AB 1886 (Alvarez), Chapter 267, Statutes of 2024, clarified that a housing element or amendment is not considered substantially compliant with housing element law until the local agency has adopted a housing element that HCD has determined is in substantial compliance with housing element law, as specified.
- Arguments in Support. SPUR writes in support, “Jurisdictions struggle with the existing HCD review process which can involve multiple rounds of comments and clarifications as well as multiple rounds of revisions, injecting uncertainty and unpredictability into the process while HCD expends considerable staff resources evaluating housing element compliance.
“In the 6th cycle, some local governments — such as San Francisco and Los Angeles — experimented with economic modeling in lieu of (or in complement to) parcel-by-parcel documentation of existing activities, lease terms, and property owner plans, etc. While HCD has signaled its interest in encouraging more of that approach through administrative processes, a recent Court of Appeal decision interpreting the new housing-element requirements—New Commune DTLA LLC v. City of Redondo Beach (2025)—called into question the ability of jurisdictions to adopt or HCD to approve housing elements that do not include extremely detailed site-by-site analyses of every housing element sites inventory residential parcel in a given jurisdiction.
“To address these challenges, SB 457 would authorize HCD to identify and approve specific economic models that assess whether jurisdictions have an adequate number of sites and zoned capacity to reasonably meet their RHNA goals. HCD would accept such an analysis as part of the housing element certification process subject to approval of the methods utilized. This approach will save HCD considerable time on review and give jurisdictions predictability and certainty in the review process.
“Jurisdictions that properly apply the formula will be deemed compliant with the corresponding site inventory requirements. It is important to note that use of the formula is voluntary and that jurisdictions may elect to use existing site inventory methodologies.”
- Arguments in Opposition. The California Council for Affordable Housing, California Building Industry Association, and California Apartment Association write in opposition to a previous version, “It is premature to replace existing adequate-sites requirements with a probability-of development computer model. We support exploring probability-of-development analysis as a potential tool within the housing element process. In fact, CBIA sponsored SB 405 (Cortese, 2023), which proposed introducing such analysis through pilot programs that could be tested, evaluated, and refined before broader implementation. SB 457 takes the opposite approach by authorizing the Department of Housing and Community Development and unspecified third-party researchers to establish a binding statewide methodology without complying with the California Administrative Procedure Act’s notice-and-comment requirements. The bill further shields the resulting model from judicial review, meaning even an arbitrary or irrational methodology could not be challenged in court.”
- Double-Referral. This bill is double-referred to the Assembly Housing and Community Development, where it passed on a 10-1 vote on June 10, 2026.
REGISTERED SUPPORT / OPPOSITION:
Support
San Francisco Bay Area Planning and Urban Research Association (SPUR)- Sponsor
Bay Area Council
Circulate Planning & Policy
City of San Jose;
Equitable Land Use Alliance (ELUA)
Housing Action Coalition
Mayor Matt Mahan, City of San Jose
Opposition
California Apartment Association
California Building Industry Association
California Council for Affordable Housing
Analysis Prepared by: Linda Rios / L. GOV. / (916) 319-3958
Date of Hearing: June 10, 2026
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Matt Haney, Chair
SBPCA Bill Id:SB 457
Author:(Becker) – As Amended Ver:May 20, 2026
SENATE VOTE: 39-0
SUBJECT: Housing element compliance: committed assistance: in-kind services: realistic capacity formula
SUMMARY: Requires the Department of Housing and Community Development (HCD), by January 1, 2028, to develop formulas or other tools that a jurisdiction may use when developing its housing element sites inventory and completing any rezoning required under Housing Element Law, and specifies the types of “in-kind services’ that qualify as “committed assistance” for the purposes of determining the number of housing units a jurisdiction may count towards their adequate sites obligation under Housing Element Law. Specifically, this bill:
- Provides that the inventory of land suitable and available for residential development, the analysis of the relationship of zoning and public facilities and services to the sites, and the analysis of the relationship of the sites identified in the land inventory to the jurisdiction’s duty to affirmatively further fair housing (AFFH), as required by Housing Element Law, may rely on a formula promulgated or approved by HCD.
- Specifies that if a jurisdiction uses the formula developed by HCD, it is determined to have satisfied the related requirements under Housing Element Law, unless it misapplies the formula or relies on faulty data to use the formula.
- Requires the sites inventory under Housing Element Law to specify the number of units allowed to be built on each site at the time of the housing element’s adoption, and the number of units that will be allowed after any required rezoning, to accommodate a jurisdiction’s regional housing needs allocation (RHNA).
- Mandates that HCD, by January 1, 2028, either promulgate its own formulas and associated user interfaces or other tools, or approve third-party formulas or tools, for the purposes of determining housing capacity as part of the housing element process.
- Requires the formulas and associated user interfaces or other tools in 3) to allow a local government to determine all of the following:
- The realistic capacity of the housing element sites inventory under the regulatory status quo, including a presumptive probability of housing development for each site;
- The additional realistic capacity that will be provided through rezoning or removing a governmental constraint, including the presumptive probability of housing development for each site; and
- The realistic capacity for Accessory Dwelling Units (ADUs).
- Establishes the following parameters for the formula promulgated or approved by HCD pursuant to 3):
- It must be based on historical data on the development and redevelopment of a site, statistically related site characteristics, and, if available, other information probative of a site’s probability of development or the total number of units conditional on development;
- It may exclude sites where the site’s size or underlying zoning are not conducive to project sizes or densities that HCD deems appropriate for lower income or moderate income housing, as applicable, including a site zoned to not allow ministerial development;
- It requires the realistic capacity of an eligible site for housing at a level of affordability at or below above-moderate income to be based on the site’s probability of development during the planning period for housing at any level of affordability multiplied by the total expected units conditional on development at any level of affordability; and
- It may be limited to specific cities or counties if data availability or other reasonable considerations preclude making the formula universal.
- Requires HCD to make the proposed formula, associated user interface, or tool developed pursuant to 3), as well as any supporting documentation, available through a public website with a form or email address for submission of written comments by members of the public, available at least 60 days before promulgating, approving, or making a material change to it.
- Allows HCD to make a nonmaterial change to an approved formula, associated user interface, or tool without following the public notice procedures in 6).
- Exempts any rule, policy, or standard issued by HCD to implement this bill from the Administrative Procedure Act (APA), notwithstanding any other law.
- Provides that any formula, associated user interface, or tool promulgated or approved under 3) is not subject to judicial review, except a court may review whether a jurisdiction that used the HCD-developed formula misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
- Provides that a jurisdiction is not required to use the tools developed by HCD in 3) for its housing element sites inventory.
- Allows HCD to hire economists and data scientists to promulgate the tools in 3).
- Provides that for the purposes of a jurisdiction’s sites inventory of land suitable for residential development for its share of RHNA, nonvacant sites analysis, and any required housing element rezoning program, a jurisdiction has satisfied those specific requirements of Housing Element Law if it uses the applicable formula promulgated and approved by HCD in 3), except insofar as it misapplied the formula or relied on substantially inaccurate, misclassified, or otherwise faulty data.
- Specifies the types of “in kind services” that qualify as “committed assistance” for the purposes of determining the number of preserved or rehabilitated housing units a jurisdiction may count toward their adequate sites obligation under Housing Element Law to include, but not be limited to, the following:
- Providing low interest predevelopment loans;
- Donating, dedicating, or providing a long-term lease of land, or an existing structure at below-market value; and
- Any additional in-kind services identified in written guidance issued by HCD.
EXISTING LAW:
- 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, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing needs for a designated income level
- An analysis of potential and actual governmental and nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels;
- A demonstration of local efforts to remove constraints that hinder the locality from meeting its share of the regional housing need (RHNA), among other things;
- A statement of the community’s goals, quantified objectives, and policies relative to affirmatively furthering fair housing 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 the regional housing need for each income level that could not be accommodated on sites identified in the sites inventory without rezoning, among other things. (Government Code (GOV) Section 65583)
- Authorizes HCD to allow jurisdictions to satisfy portions of their housing element site inventory obligations through alternative methods, including increased zoning capacity, ADU projections, and, for up to 25% of the RHNA obligation in an income category, committed assistance programs for rehabilitation, preservation, conversion, or acquisition of affordable housing units, subject to specified affordability, replacement, and reporting requirements. (GOV 65583.1)
- Requires a local government’s inventory of land suitable for residential development to be used to identify sites throughout the community that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction’s share of the RHNA for all income levels. Defines “land suitable for residential development” to include:
- Vacant sites zoned for residential use;
- Vacant sites zoned for nonresidential use that allows residential development;
- Residentially zoned sites that are capable of being developed at a higher density, including sites owned or leased by a jurisdiction; and
- 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 and as specified. (GOV 65583.2)
- Establishes standards for determining whether sites are adequate and realistic for housing development, including density thresholds deemed appropriate for lower income housing, limitations on relying on small, large, or nonvacant sites, and requirements related to infrastructure availability and replacement housing obligations. (GOV 65583.2)
- Requires jurisdictions that lack sufficient sites to accommodate lower income housing needs to adopt programs to rezone sites to allow multifamily housing “by right,” subject to specified density, affordability, and mixed-use requirements. (GOV 65583.2)
- Requires a planning agency to provide an Annual Progress Report (APR) to the legislative body, the Office of Planning and Research, and HCD by April 1 of each year that includes certain information, including the progress in meeting its share of RHNA, and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing included in the housing element (GOV 65400)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “The current parcel-by-parcel review process for the site inventory analysis has grown burdensome for both local governments and the Department of Housing and Community Development (HCD), generating conflict and litigation without improving the quality of site assessments. During the 6th RHNA, California cities and counties were subject to much more stringent standards for demonstrating the true development potential of housing sites, which in turn required extensive and expensive technical work. HCD review can involve multiple rounds of comments, clarifications, and revisions which injects uncertainty into the process while HCD expends considerable staff resources evaluating housing element compliance. The requirements were particularly onerous for jurisdictions that planned to meet over half of their lower-income RHNA through redevelopment of occupied parcels because they had to show that current uses on those sites were reasonably expected to end within the planning horizon.
SB 457 directs HCD to develop or approve statistical formulas which may be used for assessing the realistic capacity of housing element inventory sites by January 1, 2028, in time for 7th Cycle Housing Element development process. This will resolve ambiguity as to what constitutes “realistic” capacity for both HCD and local jurisdictions when determining whether an analysis is compliant. It is important to note that use of the formulas proposed in this bill are voluntary and jurisdictions may still elect to continue to use existing site inventory methodologies. It is time to move towards including data-driven statistical estimates of the likelihood and extent of future residential development in the housing element process and make it more effective and efficient.”
Adoption and Implementation of Housing Elements: All 540 cities and counties in California are required to plan for housing needs through the housing element of their general plans, which outlines a long-term strategy for meeting existing and projected housing needs. Cities and counties are required to update their housing elements every eight years in higher population regions of the state and every five years in lower population regions. Local jurisdictions must adopt a legally compliant housing element, and receive approval of the housing element from HCD, by their statutory deadline. Failure to do so can result in escalating consequences, including accelerated rezoning deadlines, exposure to the “builder’s remedy,” litigation, financial penalties, potential loss of permitting authority, or court receivership.
Among other things, a housing element must demonstrate how a jurisdiction plans to accommodate its share of the region’s housing needs, or RHNA. To do so, a jurisdiction must identify an inventory of sites with sufficient capacity to accommodate its RHNA. If the jurisdiction does not already have adequate sites zoned to accommodate its RHNA, it must adopt a rezoning program to make additional sites available for housing development. Pursuant to Housing Element Law, jurisdictions that fail to adopt a substantially compliant housing element by the statutory deadline must complete their rezoning program within one year of the deadline, while jurisdictions that adopt a substantially compliant housing element by the deadline generally have three years from the beginning of the planning period to complete the rezonings.
Local governments are required to adopt housing elements on a statutory schedule that varies by region. At least 90 days before the housing element adoption deadline, a local government must submit a draft housing element to HCD for review. HCD is required to review the draft within 90 days and provide written findings as to whether the draft substantially complies with Housing Element Law. Following adoption, the local government must submit the adopted housing element to HCD, and HCD is required to complete its review within 60 days. HCD then issues written findings determining whether the adopted housing element substantially complies with state law. A jurisdiction is not considered to have a compliant housing element unless and until HCD finds the adopted element to be in substantial compliance with Housing Element Law.
While Housing Element Law does not require a jurisdiction to actually build housing or achieve housing construction numbers that meet its RHNA within a given planning period, it does require cities and counties to plan for and facilitate housing production through zoning, identification of adequate sites, removal of regulatory barriers, and implementation of housing programs. The housing element process is intended to ensure that local governments create the conditions necessary to accommodate housing development at all income levels.
Probability of Development: In 2020, a group of University of California (UC) researchers published a brief titled A New Approach to the Housing Element Update.[1] In this brief, the authors argued that jurisdictions should move away from relying on theoretical housing capacity assumptions and instead evaluate the likelihood (or probability) that housing will actually be developed during the planning period. The authors contend that traditional housing element sites inventories often overstate likely housing production because they assume vacant and underutilized sites will be developed with housing in the housing element cycle, regardless of market conditions, existing uses, or redevelopment feasibility, even though many jurisdictions historically have not seen those sites develop as anticipated.
Instead, the brief proposes that local governments use data and recent development trends to estimate the “probability of development” for sites with housing potential and calibrate site inventories accordingly, particularly in higher-opportunity and higher-demand neighborhoods where redevelopment is more likely to occur. The authors also acknowledged that implementing such an approach would create technical and administrative challenges, including the need for more sophisticated local land use data and analytical capacity, and suggested that HCD would likely need to provide technical assistance, standardized methodologies, or redevelopment probability estimates to support local governments in carrying out the analysis consistently.
6th Housing Element Cycle Probability of Development Optimism and Controversy: In the 6th (current) RHNA cycle, the City of Los Angeles and the City and County of San Francisco relied on a probability of development approach to their housing element sites inventories, resulting in housing elements that identified many more sites for rezoning than what would otherwise be required under the traditional interpretation of Housing Element Law. At the time of housing element adoption, both jurisdictions were lauded by housing advocates for this probability of development approach. Both jurisdictions have planning staff capacity that far exceeds the average planning department in the state, allowing them to conduct the technical analysis required for probability of development modeling.
Notably, when both San Francisco and Los Angeles were required to implement their housing element rezoning programs, both opted to deviate from the probability of development plans contained in their adopted housing elements, and to instead conduct rezonings that would allow for less zoned capacity, more aligned with a traditional housing element rezoning program. In both jurisdictions, HCD reviewed the changes to the rezone programs and signed off on them, finding them compliant with the requirements of Housing Element Law, and noting that “HCD recognizes the challenges and opportunities to implement the housing element and applauds the efforts of the Cit[ies] in addressing the housing needs of all segments of the community.”[2][3] Subsequently, both Los Angeles and San Francisco were sued by housing advocates, on claims that their adopted housing element rezoning programs “did not follow through on the [housing element] rezoning process required to implement it” and “contradicts the city’s own adopted Housing Element, and fails to deliver the housing capacity the city promised to allow,” respectively.[4]
In-Kind Services and Committed Assistance: Under current law, a local jurisdiction may provide up to 25% of its lower-income RHNA through the preservation of affordable housing. In order to qualify for receiving that credit, they must demonstrate that they have entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within 2 years of the agreement taking effect. However, HCD does not have any published specific guidance on what constitutes valid “in-kind services,” resulting in additional administrative ambiguity.
This Bill: This bill authorizes HCD, by January 1, 2028, to promulgate or approve formulas, user interfaces, or other tools that jurisdictions may use to determine the “realistic capacity” of sites identified in a housing element sites inventory and authorizes HCD to hire economists and data scientists to develop them. If a jurisdiction elects to use an HCD-approved formula and properly applies it, this bill provides that the jurisdiction is deemed to have satisfied specified Housing Element Law requirements related to the sites inventory, analysis of zoning and public facilities, and the relationship of identified sites to affirmatively furthering fair housing (AFFH), unless the jurisdiction relied on substantially inaccurate or faulty data in using the tools. This bill requires each housing element sites inventory to specify both the number of units currently allowed on each site and the number that would be allowed following any required rezoning, regardless of whether or not the jurisdiction is using HCD’s tools to fulfil its sites inventory obligations.
The HCD-approved formulas would be required to estimate site capacity using historical development data, site characteristics, and other statistically relevant information, including a presumptive probability of development and the expected number of units conditional on development. This bill authorizes formulas developed or approved by HCD to estimate realistic capacity under existing zoning, the additional realistic capacity created through rezoning or removal of governmental constraints, and the realistic capacity of ADUs. Additionally, this bill authorizes formulas to exclude sites where the site size or zoning are not conducive to development at densities appropriate for lower- or moderate-income housing, including sites that do not allow for ministerial development. HCD may tailor the tools to particular cities or counties (which are not specified) where data limitations prevent statewide application. While this bill creates the option for jurisdictions to use these tools in their sites inventories and associated rezonings, it does not require them to do so, as some may prefer a more tailored local approach.
HCD would be required to publicly post any proposed formula, tool, or supporting documentation for at least 60 days before approval or promulgation, but is otherwise exempt from the requirements of the Administrative Procedure Act (APA) when developing these tools, formulas, and related guidance. This bill further provides that HCD-approved formulas and tools, and the jurisdictions that use them to complete their housing element sites inventories and any required rezoning programs, are not subject to judicial review, except that a court may review whether a jurisdiction misapplied the formula or relied on faulty data when using those tools.
Finally, this bill expands the definition of “in-kind services” that may qualify as “committed assistance” for purposes of allowing jurisdictions to count preserved or rehabilitated affordable housing units toward a portion of their adequate sites obligation under Housing Element Law. Specifically, it provides that qualifying “in-kind services” include: providing low-interest predevelopment loans, donating or leasing land or structures below market value, and other in-kind services identified in HCD’s guidance.
Policy Considerations: The Committee may wish to consider the following:
- Timing. The majority of the state is currently in its 6th housing element cycle, with 7th cycle housing elements due as early as January 31, 2027 in certain regions.[5] RHNA methodology development, approval of regional housing allocations, and housing element reviews are labor-intensive for HCD. This bill would require HCD to promulgate or approve formulas or other tools, presumably for use in the 7th housing element cycle, by January 1, 2028. This formula development will be inherently technical in nature, regarding economic and statistical expertise as well as familiarity with Housing Element Law and local planning practices and regulations. The Committee may wish to consider whether the timeline proposed in this bill is feasible, and whether the tool would be developed in time for local governments to make use of it (housing elements for the larger regions in the state are due between 2029 and 2031).
- Public Input. This bill provides HCD with an exemption from the Administrative Procedure Act in the development of this tool, formula, or user interface, and provides a safe harbor from lawsuits for any jurisdiction that uses the resulting tool, so long as they do not input faulty or inadequate data into the tool. HCD is only required to complete a 60 day public comment period before promulgating, approving, or changing a tool under this bill. Any local government that uses this tool both for its housing element sites inventory and for any resulting housing element rezoning programs would not be subject to third party lawsuits related to those provisions of Housing Element Law. The Committee may wish to consider whether HCD should be required to comply with the provisions of the APA during tool development in order to ensure robust public participation and whether the tool development itself should still be subject to judicial review, in order to ensure that the requirements of Housing Element Law are met, especially since the bill provides a safe harbor for the cities that may choose to use it. Some critics maintain that the legal safe harbor for local governments is too high of a standard, and that the formula should instead be afforded a rebuttable presumption of validity.
- Local Uptake? This bill creates the option for local governments to use the tool developed by HCD for their housing element sites inventories and any required rezoning, but does not require them to use it. Proponents of this bill maintain that this would help reduce ambiguity and back and forth between local governments and HCD during the housing element review and approval process, a common complaint associated with housing elements as a whole. While it is true that the use of this tool would help streamline and standardize a portion of the housing element reviews, jurisdictions would still be subject to the iterative HCD review process to verify compliance with other aspects of Housing Element Law, and cities could still face legal scrutiny over other aspects of their housing elements. Furthermore, cities that currently express interest in such a tool may find that using it would require them to identify far more sites suitable for housing in their sites inventories, and rezone for much more residential capacity than would otherwise be required if cities relied on the current sites inventory system. While good for housing outcomes and furthering the objectives of Housing Element Law, this may ultimately reduce local uptake. For example, both Los Angeles and San Francisco relied on a probability of development approach for their 6th cycle housing element sites inventories, but ultimately approved rezonings that deviated from those approved plans due to the amount of rezoning that would have been required (among other factors), and as such, are currently facing lawsuits over their housing element rezoning programs.
- Effort versus Outcomes. Some may argue that the overall cost and effort for HCD to approve or promulgate such a detailed tool (for an unspecified number of jurisdictions) may not achieve better outcomes than if a simpler probability of development model were adopted for the whole state to use, such as a 50% probability of development for newly identified rezone sites, and a 10% probability of development for sites recycled from prior housing element cycles.
Arguments in Support: SPUR, the bill sponsor, writes in support: “SB 457 would authorize HCD to identify and approve specific economic models that assess whether jurisdictions have an adequate number of sites and zoned capacity to reasonably meet their RHNA goals. HCD would accept such an analysis as part of the housing element certification process subject to approval of the methods utilized. This approach will save HCD considerable time on review and give jurisdictions predictability and certainty in the review process.
Jurisdictions that properly apply the formula will be deemed compliant with the corresponding site inventory requirements. It is important to note that use of the formula is voluntary and that jurisdictions may elect to use existing site inventory methodologies.
Arguments in Opposition: The California Council for Affordable Housing, California Building Industry Association, and California Apartment Association write in opposition: “It is premature to replace existing adequate-sites requirements with a probability-of development computer model. We support exploring probability-of-development analysis as a potential tool within the housing element process. In fact, CBIA sponsored SB 405 (Cortese, 2023), which proposed introducing such analysis through pilot programs that could be tested, evaluated, and refined before broader implementation. SB 457 takes the opposite approach by authorizing the Department of Housing and Community Development and unspecified third-party researchers to establish a binding statewide methodology without complying with the California Administrative Procedure Act’s notice-and-comment requirements. The bill further shields the resulting model from judicial review, meaning even an arbitrary or irrational methodology could not be challenged in court.”
Committee Amendments: The Committee may wish to consider the following amendments:
- Requiring HCD to comply with the APA while promulgating, approving, or making material changes to the tool proposed by this bill.
- Removing the exemption from judicial review for HCD’s tool development, while maintaining it for any local use of the tool unless the local government misapplied the formula or relied on faulty data.
Related Legislation:
SB 405 (Cortese) of 2023 would have required the HCD to establish a pilot program to develop a methodology to analyze whether a local agency’s inventory of land suitable for development had identified adequate sites to accommodate its share of the regional housing need for all income levels. SB 405 was held in the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
San Francisco Bay Area Planning and Urban Research Association (Sponsor)
Bay Area Council
Circulate Planning & Policy
City of San José
Equitable Land Use Alliance
Housing Action Coalition
Mayor Matt Mahan, City of San José
Opposition
California Apartment Association
California Building Industry Association
California Council for Affordable Housing
Analysis Prepared by: Dori Ganetsos / H. & C.D. / (916) 319-2085
https://lewis.ucla.edu/research/new-approach-housing-element-update/ ↑
HCD Letter: RE: City of Los Angeles 6th Cycle (2021-2029) Adopted Housing Element, dated November 18, 2024 ↑
HCD Letter: RE: San Francisco’s 6th Cycle (2023-2031) Adopted Housing Element and Draft Rezoning Package, dated September 9, 2025. ↑
Los Angeles is being sued by YIMBY Law and Californians for Homeownership (https://www.yimbylaw.org/press/la-rezoning-lawsuit) while San Francisco is being sued by YIMBY Law, the California Housing Defense Fund, and Californians for Homeownership (https://www.yimbylaw.org/sf-family-zoning-plan) ↑
https://www.hcd.ca.gov/housing-open-data-tools/housing-element-regional-housing-needs-determination-schedule ↑
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | SB 457 |
THIRD READING
Bill No: SB 457
Author: Becker (D)
Amended: 1/8/26
Vote: 21
SENATE HOUSING COMMITTEE: 1-2, 4/29/25
AYES: Seyarto
NOES: Wahab, Ochoa Bogh
NO VOTE RECORDED: Arreguín, Cabaldon, Caballero, Cortese, Durazo, Gonzalez, Grayson, Padilla
SENATE HOUSING COMMITTEE: 10-0, 1/6/26
AYES: Wahab, Seyarto, Arreguín, Cabaldon, Caballero, Cortese, Durazo, Grayson, Ochoa Bogh, Padilla
NO VOTE RECORDED: Reyes
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Housing element compliance: committed assistance: in-kind services
SOURCE: Author
DIGEST:
This bill specifies types of “in-kind services” that qualify as “committed assistance” for the purposes of determining the number of housing units a jurisdiction may count toward their adequate sites obligation under Housing Element Law.
ANALYSIS:
Existing law:
- Provides that the fair share of housing for each city and county is determined through the Regional Housing Needs Determination (RHND) and the subsequent Regional Housing Needs Allocation (RHNA) plan for the region. The law establishes the RHND/RHNA process as follows:
- Department of Finance (DOF) and the Department of Housing and Community Development (HCD) develop regional housing needs estimates;
- COGs allocate housing within each region based on these determinations, and where a COG does not exist, HCD conducts the allocations; and
- cities and counties incorporate these allocations into their housing elements.
- Requires each city and county to prepare and adopt a General Plan, including a housing element, to guide the future growth of a community. The housing element must include an inventory of land suitable and available for residential development. Where a jurisdiction’s inventory of land suitable for development accommodate the jurisdiction’s share of RHNA, the jurisdiction must identify actions that will be taken to make adequate sites available during the planning period to accommodate the jurisdictions share of RHNA that is not accommodated on sites in the inventory.
- Authorized HCD to allow jurisdictions to meet up to 25 percent of their requirement to identify adequate sites to accommodate their share of RHNA in their housing element by implementing a “committed assistance program” that rehabilitates or preserves affordable units or converts existing property into affordable housing.
- Specifies that “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.
This bill defines “in-kind services” as a nonmonetary form of committed assistance provided by a city or county that materially reduces the development costs, or materially facilitates the acquisition, rehabilitation or preservation of units.
Background
RHND & RHNA process. Before each housing element revision, each community is assigned its fair share of the region’s housing need for defined household income levels. Currently local agencies must plan for four separate income categories (very low-, low-, moderate-, and above-moderate income households), beginning in the seventh housing element cycle household income levels will include planning requirements for acutely low- and extremely low- income households. This planning occurs through a two-step process. First, HCD determines the aggregate housing need for the region during the planning period the housing element will cover (RHND); then the COG allocates the regional housing need to each city and county within the region (RHNA).
Sites Identification. In adopting a housing element, jurisdictions are required to prepare an inventory of land suitable and available for residential development. Where the inventory of sites does not include adequate sites to accommodate the housing needs for all household income levels, the jurisdictions housing element must include a program to make sites available during the planning period with appropriate zoning and development standards to accommodate the jurisdictions share of regional housing need that could not be accommodated on the land identified in the inventory. This includes a program to rezone sites within specific timeframes during the housing element period (typically three years for jurisdictions with a timely and compliant housing element).
Adequate Sites Program Alternative. Jurisdictions may satisfy up to 25 percent of their obligation to identify land for development in the housing element by implementing a program to make affordable housing units available through preservation or rehabilitation of existing affordable housing units, as well as conversion of existing property into affordable housing through committed assistance. A jurisdiction may reduce its obligation to identify adequate sites on a one-for-one basis for each unit that is maintained or created through this program of committed assistance.
Comments
- Author’s statement. “SB 457 Current law allows for a city to provide up to 25% of their low-income RHNA through the preservation of affordable housing. In order to qualify for receiving credit they must demonstrate that they have entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within 2 years of the agreement taking effect. Smaller city governments have sought to pursue in-kind services - such as staff time, fee deferral, waivers or other similar mechanisms where the jurisdiction participates in the conversion, or preservation of the property - to qualify units for meeting HCD requirements. However, HCD does not have any published specific guidance on what constitutes valid “in-kind services” resulting in additional administrative ambiguity. Additionally, community land trusts desire certainty that the assistance they’re offered will facilitate long-term affordability for their communities. This bill will provide statutory clarity around what kinds of activities qualify as “in-kind services” while preserving the ability of HCD to publish guidance as they see fit so that smaller jurisdictions and mission-driven nonprofits can pursue diverse avenues of preserving affordable housing.”
- Committed Assistance. The adequate sites program alternative requires that local agencies implement verifiable measures of committed assistance for each identified unit. The law strictly defines committed assistance to mean 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.” (Emphasis added).
- In-kind services. This bill seeks to further refine the definition “committed assistance” by defining a list of activities that constitute “in-kind services.” The term “in-kind services” is not currently defined for the purposes of the adequate sites program alternative. The proposed definition in the bill identifies two categories of activities that constitute in-kind services and authorizes HCD to identify other activities that constitute in-kind services. In-kind services are nonmonetary contributions.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 1/21/26)
California Community Land Trust Network
Mountainview Community Land Trust
OPPOSITION: (Verified 1/21/26)
Prepared by: Hank Brady / HOUSING / (916) 651-4124
1/21/26 16:05:23
**** END ****
SENATE COMMITTEE ON HOUSING
Senator Aisha Wahab, Chair
2025 - 2026 Regular
Bill No: SB 457 Hearing Date: 1/6/2026
Author: | Becker | ||
Version: | 1/5/2026 Amended | ||
Urgency: | No | Fiscal: | No |
Consultant: | Hank Brady | ||
SUBJECT: Housing element compliance: committed assistance: in-kind services.
DIGEST: This bill specifies types of “in-kind services” that qualify as “committed assistance” for the purposes of determining the number of housing units a jurisdiction may count toward their adequate sites obligation under Housing Element Law.
ANALYSIS:
Existing law:
- Provides that the fair share of housing for each city and county is determined through the Regional Housing Needs Determination (RHND) and the subsequent Regional Housing Needs Allocation (RHNA) plan for the region. The law establishes the RHND/RHNA process as follows: (a) Department of Finance (DOF) and the Department of Housing and Community Development (HCD) develop regional housing needs estimates; (b) COGs allocate housing 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 prepare and adopt a General Plan, including a housing element, to guide the future growth of a community. The housing element must include an inventory of land suitable and available for residential development. Where a jurisdiction’s inventory of land suitable for development accommodate the jurisdiction’s share of RHNA, the jurisdiction must identify actions that will be taken to make adequate sites available during the planning period to accommodate the jurisdictions share of RHNA that is not accommodated on sites in the inventory.
- Authorized HCD to allow jurisdictions to meet up to 25 percent of their requirement to identify adequate sites to accommodate their share of RHNA in their housing element by implementing a “committed assistance program” that rehabilitates or preserves affordable units or converts existing property into affordable housing. Specifically, a committed assistance program must
- Identify the specific sources of funding for committed assistance.
- Indicate the number of affordable units that will be provided and the amount of dedicated funds necessary to develop affordable housing units.
- Demonstrate that the units meet one of the following:
- The units will be substantially rehabilitated with committed assistance from the jurisdiction to prevent imminent loss of housing stock. Jurisdictions must apply long-term affordability covenants to rehabilitated units and meet other conditions.
- The units are located on foreclosed property or in a multifamily housing complex of three or more units that is acquired with committed assistance from the jurisdiction and converted from nonaffordable housing to affordable housing subject to a long-term affordability covenant.
- The units will be preserved at affordable housing costs for lower income households through committed assistance form the jurisdiction by acquisition of the unit, or the purchase of affordability covenants for the unit.
- The unit is as a part of a long-term COVID-19 recovery response through which units in a motel, hotel, or hostel are converted with committed assistance from the city or county from nonresidential to residential for people experiencing homelessness by the acquisition of the unit or purchase of affordability covenants and restrictions for the unit.
- The units are spaces in a mobile home park that are acquired with committed assistance from the jurisdiction that are subject to an agreement to maintain affordability.
- Specifies that “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.
This bill:
- Defines “in-kind services” as a nonmonetary committed assistance provided by a city or county that materially reduces the development costs, or materially facilitates the acquisition, rehabilitation or preservation of units. Specifies that the following activities are a form of in-kind services:
- Reducing, waiving, or subsidizing development and impact fees.
- Provision of predevelopment loans that bear interest at or below the rates authorized in Section 50532 of the Health and Safety Code, with repayment terms that do not exceed those authorized under that section.
- The donation, dedication, or long-term lease of a specific parcel of land, or an existing structure, below-market value, as documented by a qualified, independent appraisal.
- Any additional in-kind services identified in written guidance issued by the Department of Housing and Community Development.
- Makes other technical and nonsubstantive changes to housing element law.
Background
Housing elements. Every city and county in California is required to develop a general plan that outlines the community’s vision of future development through a series of policy statements and goals. A community’s general plan lays the foundation for all future land use decisions, as these decisions must be consistent with the plan. General plans are comprised of several elements that address various land use topics. State law mandates seven elements: land use, circulation (e.g., traffic), housing conservation, open-space, noise, and safety.
Each community’s general plan must include a housing element, which outlines a long-term plan for meeting the community’s existing and projected housing needs. The housing element demonstrates how the community plans to accommodate its “fair share” of its region’s housing needs. Following a staggered schedule, cities and counties located within the territory of a metropolitan planning organization (MPO) must revise their housing elements every eight years, and cities and counties in rural non-MPO regions must revise their housing elements every five years. These five- and eight-year periods are known as the housing element planning period.
In general, a jurisdiction’s housing element must identify and analyze existing and projected housing needs, identify adequate sites with appropriate zoning to meet its share of the RHNA, and ensure that regulatory systems provide opportunities for, and do not unduly constrain, housing development.
RHND & RHNA process. Before each housing element revision, each community is assigned its fair share of the region’s housing need for defined household income levels. Currently local agencies must plan for four separate income categories (very low-, low-, moderate-, and above-moderate income households), beginning in the seventh housing element cycle household income levels will include planning requirements for acutely low- and extremely low- income households. This planning occurs through a two-step process. First, HCD determines the aggregate housing need for the region during the planning period the housing element will cover (RHND); then the COG allocates the regional housing need to each city and county within the region (RHNA).
Sites Identification. In adopting a housing element, jurisdictions are required to prepare an inventory of land suitable and available for residential development. Where the inventory of sites does not include adequate sites to accommodate the housing needs for all household income levels, the jurisdictions housing element must include a program to make sites available during the planning period with appropriate zoning and development standards to accommodate the jurisdictions share of regional housing need that could not be accommodated on the land identified in the inventory. This includes a program to rezone sites within specific timeframes during the housing element period (typically three years for jurisdictions with a timely and compliant housing element).
Adequate Sites Program Alternative. Jurisdictions may satisfy up to 25 percent of their obligation to identify land for development in the housing element by implementing a program to make affordable housing units available through preservation or rehabilitation of existing affordable housing units, as well as conversion of existing property into affordable housing through committed assistance. A jurisdiction may reduce its obligation to identify adequate sites on a one-for-one basis for each unit that is maintained or created through this program of committed assistance.
Comments
- Author’s statement. “SB 457 Current law allows for a city to provide up to 25% of their low-income RHNA through the preservation of affordable housing. In order to qualify for receiving credit they must demonstrate that they have entered into a legally enforceable agreement with committed financial assistance or in-kind services substantial enough to make the units available for occupancy within 2 years of the agreement taking effect. Smaller city governments have sought to pursue in-kind services - such as staff time, fee deferral, waivers or other similar mechanisms where the jurisdiction participates in the conversion, or preservation of the property - to qualify units for meeting HCD requirements. However, HCD does not have any published specific guidance on what constitutes valid “in-kind services” resulting in additional administrative ambiguity. Additionally, community land trusts desire certainty that the assistance they’re offered will facilitate long-term affordability for their communities. This bill will provide statutory clarity around what kinds of activities qualify as “in-kind services” while preserving the ability of HCD to publish guidance as they see fit so that smaller jurisdictions and mission-driven nonprofits can pursue diverse avenues of preserving affordable housing.”
- RHNA & the Adequate Sites Program Alternative. The housing element cycle is designed to advance the state’s housing priorities and ensure that sufficient land is zoned for housing development in every jurisdiction. After each jurisdiction receives its fair share allocation through the RHNA process, it must revise its housing elements to accommodate the assigned housing needs. Historically, HCD emphasized new housing construction and did not RHNA credit for rehabilitated units. Jurisdictions argued that the exclusive focus on new construction discouraged development and preservation of affordable housing. In 1997 the Assembly Housing and Community Development Committee led a working group on housing element reform and developed a consensus agreement to allow jurisdictions to count efforts to preserve and rehabilitate affordable housing to count toward a portion of their RHNA obligation, provided that jurisdictions using this alternative demonstrate a level of committed assistance to each unit, and that the preserved and rehabilitated units meet specified criteria. This agreement was codified with the adoption of AB 438 (Torlakson, Chapter 796, Statutes of 1998). The adequate sites program alternative was recently expanded by AB 83 (Committee on Budget, chapter 15, Statutes of 2020) to allow jurisdictions to count affordable units created through project home-key, as well as through HCD grants designed preserve naturally affordable units in mobile home parks.
The adequate sites program alternative allows jurisdictions to reduce their obligation to zone for new residential construction by making verifiable commitments to maintain existing affordable housing units or convert existing property into affordable housing. HCD maintains an Adequate Sites Program Alternative Checklist that jurisdictions can use in preparing their housing element.[1] Jurisdictions that use the adequate sites program alternative must report on the status of their program implementation to HCD.
- Committed Assistance. The adequate sites program alternative requires that local agencies implement verifiable measures of committed assistance for each identified unit. The law strictly defines committed assistance to mean 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.” (Emphasis added).
- In-kind services. This bill seeks to further refine the definition “committed assistance” by defining a list of activities that constitute “in-kind services.” The term “in-kind services” is not currently defined for the purposes of the adequate sites program alternative. The proposed definition in the bill identifies three categories of activities that constitute in-kind services and authorizes HCD to identify other activities that constitute in-kind services. In-kind services are nonmonetary contributions. This bill would define actions to reduce, or waive, or subsidize, development and impact fees as a type of in-kind service. Development and impact fees are typically only assessed on new construction and are thus unlikely to be applicable to efforts to maintain existing affordable housing units or to convert existing property into affordable housing. Additionally, while waiving fees may constitute a form of committed assistance, it is decidedly a type of monetary contribution, and it should not be incorrectly categorized as an “in-kind service.”
- Committee amendments. To address the item raised in comment 4), the author has agreed to amend the bill to remove “reducing, waiving, or subsidizing development and impact fees” from the definition of “in-kind services.”
- Opposition. Several housing equity advocates and housing development groups opposed a previous version of this bill.
Related/Prior Legislation:
AB 83 (Committee on Budget, Chapter 15, Statutes of 2020) — among other provisions, revised the requirements for a unit to qualify for inclusion in a committed assistance program, including extending the long-term affordability covenants from 40 to 55 years. Additionally, this bill authorized units in a motel, hotel or hostel that are converted from nonresidential to residential units, and spaces in a mobilehome park that are acquired with committed assistance by a jurisdiction, to count toward the adequate sites alternative if specified conditions are met.
AB 438 (Torlakson, Chapter 796, Statutes of 1998) — Allowed jurisdictions to fulfill up to 25% of their affordable housing needs by providing either substantially rehabilitated units, market-rate units that have been converted to affordable units, or federally assisted multi-family units whose affordability has been extended by at least 40 years.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
POSITIONS: (Communicated to the committee before noon on Tuesday December 30th)
SUPPORT:
California Community Land Trust Network
Mountain View Community Land Trust Network
OPPOSITION:
None received (on current version).
-- END --
California Department of Housing and Community Development, Adequate Sites Program Alternative Checklist: Government Code Section 65583.1(c), revised August 7, 2020, State of California Business, Consumer Services and Housing Agency, accessed December 15, 2025, https://www.hcd.ca.gov/community-development/building-blocks/site-inventory-analysis/adequate-sites-alternatives/docs/adequate_site_alt_checklist.pdf. ↑
SENATE COMMITTEE ON HOUSING
Senator Aisha Wahab, Chair
2025 - 2026 Regular
Bill No: SB 457 Hearing Date: 4/29/2025
Author: | Becker | ||
Version: | 4/21/2025 Amended | ||
Urgency: | No | Fiscal: | No |
Consultant: | Hank Brady | ||
SUBJECT: Housing element compliance: Housing Accountability Act: housing disapprovals.
DIGEST: This bill revises Housing Element Law to specify that a local agency’s housing element is in compliance the date it is adopted if the element is subsequently certified by the Department of Housing and Community Development (HCD) or a court of competent jurisdiction, and changes the vesting period for builder’s remedy projects.
ANALYSIS:
Existing law:
Adoption of 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;
- A statement of the community’s goals, quantified objectives, and policies relative to affirmatively furthering fair housing 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.
- Requires a planning agency to submit a draft housing element revision to HCD at least 90 days prior to adoption of a revision of its housing element pursuant to statutory deadlines, or at least 60 days prior for a draft amendment. Requires the local government to make the first draft revision of the housing element available for public comment for at least 30 days and, if any comments are received, requires the local government to take at least 10 business days after the 30 day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to HCD.
- Requires HCD to review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision, or within 60 days of receipt of a subsequent draft amendment, or an adopted revision or adopted amendment to a housing element. Prohibits HCD from reviewing the first draft submitted for each housing element revision until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments.
- Requires HCD, in its written findings, to determine whether the draft element or draft amendment substantially complies with Housing Element Law.
Housing Accountability Act (HAA) and Builder’s remedy
- Provides, pursuant to the HAA, that a local government may only disapprove a housing development project under specified circumstances. Specifically, among other provisions, the HAA:
- Prohibits a local agency, from disapproving a housing development project containing units affordable to very low-, low- or moderate-income households or conditioning the approval in a manner that renders the housing development project infeasible, unless it makes one of the following findings, based upon substantial evidence in the record:
- The jurisdiction has adopted a housing element in substantial compliance with the law, and the jurisdiction has met its share of the regional housing need for that income category;
- The project will have a specific, adverse impact on public health or safety and there is no feasible method to mitigate or avoid the impact without rendering the housing development unaffordable to very low-, low- or moderate-income households;
- The denial or imposition of conditions is required to comply with state or federal law;
- The project is located on agricultural or resource preservation land that does not have adequate water or wastewater facilities;
- The jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter is inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan, as specified; or,
- The jurisdiction does not have an adopted revised housing element that was in substantial compliance with the law and the housing development project is not a “builder’s remedy project.”
- Defines a “builder’s remedy project” as a housing development project that meets all of the following criteria:
- The project will provide housing for very low-, low- or moderate-income households, as specified;
- The project application was submitted in a jurisdiction that did not have a housing element in substantial compliance with the law;
- The project meets specified density thresholds; and,
- The project does not abut a site where more than one-third of the square footage on the site has been used within the past three years for heavy industrial uses, as specified.
- Prohibits a local agency, from disapproving a housing development project containing units affordable to very low-, low- or moderate-income households or conditioning the approval in a manner that renders the housing development project infeasible, unless it makes one of the following findings, based upon substantial evidence in the record:
This bill:
- Amends Housing Element Law to specify that a local agency’s housing element shall be considered in substantial compliance with Housing Element Law the date it is adopted by the local agency if the housing element is subsequently found by HCD or a court of competent jurisdiction to be in substantial compliance with Housing Element Law.
- Revises provisions of the HAA that authorize a local agency that has a compliant housing element to disapprove a housing development project that is inconsistent with the local zoning and general plan. Specifically, for these agencies the bill delays the date a housing development project application must be “deemed complete” from the date a preliminary application is submitted, to the date the local agency determines that an applicant has submitted a completed application. Additionally, this bill specifies that for the purposes of applications submitted prior to January 1, 2026, the delay in when an application is “deemed complete” applies to an application that has not met both of the following:
- Received local agency approval; and,
- Incurred substantial liability in good faith reliance upon the local agency approval.
Background
Housing Elements. Cities and counties are required to develop a housing element as part of the general plan every eight years (every five years for some rural areas). Cities must submit their housing element to HCD for approval by a specified date and currently most local governments should have adopted, or be in the process of finalizing, their sixth housing element. Each local agency receives a total number of housing units to plan for broken down by income category. The housing element must identify programs to increase the supply of housing, address inequities in the housing market, reduce barriers to producing housing and must identify an inventory of sites that are zoned for housing at the density necessary to result in housing sufficient to meet the locality’s regional housing needs for the housing element cycle.
Local governments have a statutory deadline to submit a housing element based on their region. Ninety days before the deadline to adopt a housing element, cities 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. A local government that adopts its housing element without making the changes HCD identifies must include written findings that explain why it believes the element substantially complies. Despite the fact that the process allows a local agency to adopt a housing element without making the changes required by HCD to be in substantial compliance, a local agency is not considered compliant until receiving certification from HCD or the courts.
HAA. In 1982, in response to the housing crisis, which was viewed as threatening the economic, environmental, and social quality of life in California. The Legislature enacted the HAA, commonly referred to as the Anti-NIMBY Law. The purpose of the HAA is to help ensure that a city does not reject or make infeasible housing development projects that contribute to meeting the housing need determined pursuant to the Housing Element Law without a thorough analysis of the economic, social, and environmental effects of the action and without complying with the HAA. The HAA restricts a city’s ability to disapprove, or require density reductions in, certain types of residential projects. One provision of the HAA, known as the builder’s remedy, specifically prevents local agencies that do not have a compliant housing element from denying projects that include specified levels of affordable housing, even if the project is inconsistent with local standards.
Comments
- Author’s Statement. “SB 457 prevents misuse of the builder’s remedy while continuing to provide strong incentives for cities to develop and adopt compliant housing elements on a timely basis. We must ensure we are preventing bad-faith actors from submitting incomplete applications as placeholders to claim builder’s remedy protections. This bill continues to support the builder’s remedy as a tool for real housing solutions while preventing misapplication.”
- Consequences of not complying with Housing Element Law. Over the last several years, the Legislature has strengthened the consequences for local agencies who are out of compliance or who amend their zoning after their housing element is found compliant. Local agencies cannot qualify for state funding for affordable housing, or infrastructure for affordable housing, without a compliant housing element. AB 72 (Santiago, Chapter 72, Statutes of 2017) gave HCD explicit authority to find a local agency’s housing element out of substantial compliance if it determines that the local agency acts or fails to act in compliance with its housing element, and allows HCD to refer violations of law to the Attorney General (AG). Both the AG and HCD have units with dedicated staff to enforce Housing Element Law and other land use laws passed by the legislature. The AG can also sue a city for non-compliance and the court can issue fines up to $10,000 a day after the local agency fails to comply for an additional 12 months. After an additional six months of non-compliance, the court may increase the fines by six times. In addition, if a local government fails to adopt a substantially compliant housing element, it can be subject to the “builder’s remedy” in the HAA.
- The builder’s remedy. One constraint within the HAA on local governments’ authority to disapprove housing is the “builder’s remedy.” The builder’s remedy generally prohibits a local agency that lacks a compliant housing element from denying a housing development project that includes specified levels of affordable housing, even if the development does not conform to the underlying zoning adopted by the agency.
The builder’s remedy is intended to push local governments to adopt timely compliant housing elements to avoid the threat of a developer putting forward a project that is untethered to local standards. Short of that, the builder’s remedy is intended as a mechanism to facilitate the development of much needed housing in California by allowing developers to secure approval for housing developments with limited input from local agencies that have not adopted a compliant housing element.
- Time machines. This bill retroactively changes two trigger dates that will affect whether local agencies are required to approve certain builder’s remedy housing developments projects. Specifically, this bill will move up the date that several jurisdictions’ local housing elements were considered compliant by several months, and it will delay when housing development project applications are considered complete, effectively stripping certain developments of their vesting for the builder’s remedy. Specifically, the bill does the following:
- Moving up compliance. This bill will state that a local housing element that is certified by HCD or a court of competent jurisdiction is considered to be in compliance the date it was adopted by the local agency, rather than the date it was certified as compliant.
- Delaying “completion.” This bill will provide that for the purposes of the builder’s remedy, a housing development project application is only considered to be complete (thus locking in qualification for the builder’s remedy) the date a complete application is submitted, rather than the date a preliminary application is submitted.
These two changes appear designed to allow jurisdictions to deny access to builder’s remedy status for to project applicants that submitted preliminary applications when the jurisdiction’s housing element was out of compliance.
- Rewarding noncompliance. Local agencies that fail to adopt a housing element that is certified as compliant by the deadline for their region are out of compliance with Housing Element Law until they adopt a housing element that HCD certifies as compliant. This subjects these agencies to several penalties, including the application of the builder’s remedy. In order to avoid this outcome, Housing Element Law requires local agencies to submit a publicly vetted draft element to HCD at least 90 days prior to adoption, and requires HCD to report its written findings within 90 days.
In the sixth housing element cycle, many local agencies failed to submit draft housing elements to HCD, or to adopt housing elements prior to the deadline to adopt a revised housing element. Many of these jurisdictions subsequently prepared and adopted housing elements, following consultation with HCD, long after the original deadline to comply. To illustrate the potential impacts this bill could have, several cities and projects examples that are noted below.
- City of Pasadena (Southern California Association of Governments (SCAG)). The housing element revision deadline for SCAG jurisdictions in the sixth cycle was October 15, 2021. The City of Pasadena submitted an initial draft to HCD prior to the deadline and adopted a housing element that HCD did not certify as compliant with Housing Element Law. Following consultation with HCD, Pasadena submitted a revised housing element to HCD January 11, 2023. HCD certified Pasadena’s housing element as compliant with state law March 10, 2023.
- 615 S. Catalina Avenue Project is a 49-unit multifamily project where 20% (10 units) of the project would be affordable to lower-income households. The applicant submitted a preliminary application February 15, 2023, after the city adopted a housing element but prior to HCD certification. Under existing law this project is eligible for the builder’s remedy. This bill would retroactively change the date the city was compliant with Housing Element Law, stripping the project of its status as a builder’s remedy project and allowing the city to deny this project.[1]
- City of Palo Alto (Association of Bay Area Governments (ABAG)). The housing element revision deadline for the ABAG jurisdictions in the sixth cycle was January 31, 2023. Palo Alto submitted an initial draft to HCD prior to the deadline and adopted a housing element that HCD did not certify as compliant with Housing Element Law. Following consultation with HCD, Palo Alto submitted a revised housing element to HCD May 10, 2024. After a final request for minor revisions, HCD certified Palo Alto’s housing element August 20, 2024.
- 2300 Geng Road is a housing development project that includes 159 residential units, of which 20% (32 units) would be affordable to lower income households. The applicant submitted a preliminary application July 3, 2023, after the city adopted a housing element, but prior to HCD certification. Under existing law this project is eligible for the builder’s remedy. This bill would retroactively change the date the city was compliant with Housing Element Law, stripping the project of its status as a builder’s remedy project, allowing the city t to deny this project.[2]
- City of Menlo Park (ABAG). The housing element revision deadline for the ABAG jurisdictions in the sixth cycle was January 31, 2023. Menlo Park submitted an initial draft to HCD prior to the deadline, and adopted a housing element that HCD did not certify as compliant with Housing Element Law. Following consultation with HCD, Menlo Park submitted a revised Housing Element November 6, 2023, which it subsequently re-adopted on January 23, 2024. HCD certified Menlo Park’s housing element as compliant with state law March 20, 2024.
- 80 Willow Road (Willow Park) is a housing development project that includes 665 units, of which 20% (133 units) would be affordable to lower income households. The applicant submitted a preliminary application December 7, 2023, after the city submitted its housing element, but prior to HCD certification. According to the city, the applicant submitted a complete application October 16, 2024. Under existing law this project is eligible for the builder’s remedy. This bill would retroactively change the date the city was compliant with Housing Element Law. Additionally, as it pertains to this project, this bill would specify that the project application was not complete until after the housing element was certified as compliant. Both provisions would strip the project of its status as a builder’s remedy project, allowing the city to deny this project.[3]
- City of Pasadena (Southern California Association of Governments (SCAG)). The housing element revision deadline for SCAG jurisdictions in the sixth cycle was October 15, 2021. The City of Pasadena submitted an initial draft to HCD prior to the deadline and adopted a housing element that HCD did not certify as compliant with Housing Element Law. Following consultation with HCD, Pasadena submitted a revised housing element to HCD January 11, 2023. HCD certified Pasadena’s housing element as compliant with state law March 10, 2023.
Given the state’s ongoing housing and affordability crisis, the committee may wish to consider whether local agencies that did not adopt a timely and compliant housing element should be authorized to retroactively deny projects that include substantial amounts of affordable housing.
- Willow Park. The language in the bill appears designed to address one particularly disfavored affordable housing project on the border of Menlo Park and Palo Alto. Willow Park, as noted above, is a builder’s remedy project that appears squarely targeted by the shifting timelines in the bill. As noted above, this bill changes the definition of “housing element compliance” to put Menlo Park in compliance with Housing Element Law prior to the date the project application was complete. Additionally, this bill also changes the definition of “complete application” to specify that the project application was not complete until after Menlo Park’s housing element was certified as compliant (either under existing law, or as proposed in the bill). The chart below demonstrates how this bill would move the date the Willow Park project is “complete” to after the Menlo Park housing element was adopted and certified, effectively disqualifying the project from the builder’s remedy.
- Now its history! Builder’s remedy projects, such as Willow Park and the other projects noted above are still subject to the California Environmental Quality Act (CEQA). CEQA requires lead agencies approving a project to determine if the project may have a significant effect on the environment, and specifies that substantial adverse changes to historical resources constitute a significant effect on the environment. If a project has a significant impact on a historical resource, the lead agency must prepare an Environmental Impact Report (EIR) and impose feasible mitigation measures on project to avoid impacts.
The Willow Park project is located on the former campus of Sunset Magazine. Sunset Magazine occupied the campus beginning in 1951. The campus was sold in 2014 and staff for the magazine moved to an office in Oakland in 2015, the property is currently vacant. In September 2024, approximately 10 months after the preliminary application for Willow Park was submitted, and nearly 10 years after Sunset Magazine departed from the campus, the Menlo Park Historical Association nominated the property for the National Register of Historic Places (National Register) with the California State Historical Resources Commission (SHRC). The SHRC is scheduled to hear the nomination on May 9, 2025.[4]
Under CEQA, a project that is listed, or “eligible” to be listed on the National Register, must be considered a historic resource, thus triggering a full EIR under CEQA, and requiring the lead agency (Menlo Park) to require feasible mitigation. Mitigation could include requiring the project proponent to preserve the existing building, or to adopt design modifications to avoid impacts. Menlo Park recently initiated the CEQA review for the Willow Park project, it is unclear what mitigation measures the city will be able to require to mitigate impacts to a site that is newly identified as historic.
The Sunset Campus may be historic in nature; however, in the intervening years between the closure in 2015 and the nomination in 2024, it is unclear what has created urgency for a new historic designation. At this time, however, it appears the sole source of urgency is a housing development proposal that will create 133 units of low-income housing on the border of two cities that from 2015-2023 only issued permits for a total of 165 (Menlo Park) and 99 (Palo Alto) units of low-income housing.[5]
Given evidence of efforts to shift timelines to stymie projects that include affordable housing, the committee may wish to consider if the Housing Crisis Act (HCA) should be amended to clarify that project vesting associated with a preliminary application locks in the historic status of a project.
- It’s déjà vu all over again! In March of 2023, HCD issued a memo detailing the obligation of local agencies to submit draft housing elements and adopted housing elements to HCD.[6] The memo additionally clarified that a local agency’s housing element is considered to be in substantial compliance as of the date of HCD’s letter finding the adopted element is in substantial compliance. This interpretation of Housing Element Law was reinforced with the enactment of AB 1886 (Alvarez, Chapter 267, Statutes of 2024) which specified that a housing element is considered to be in compliance with Housing Element Law when HCD, or a court of competent jurisdiction, determines that the adopted housing element substantially complies with Housing Element Law. This bill will undo provisions of AB 1886 (Alvarez) that took effect in this year. This bill will specify that a housing element that eventually certified is considered to be in compliance the date it was adopted, rather than it is certified.
The committee may wish to consider the impacts of retroactively reverting statute and precedent for determining housing element compliance.
- Adding unnecessary confusion. Specifying that a local agency’s housing element that is subsequently certified by HCD is in compliance the date the local agency adopts the housing element introduces significant uncertainty into Housing Element Law. In the case of Menlo Park the city submitted an adopted housing element February 3, 2023, a revised housing element June 30, 2023, and November 6, 2023 (subsequently readopted January 23, 2024). Under this bill, each submission by the city would have created a temporary period of uncertainty until HCD opined on the housing element. If the city’s housing element was certified, then housing development applications would have needed to abide by the standards in the certified housing element. If the housing element was not certified by HCD (which the first two adoptions were not), then housing developments could have been submitted under the builder’s remedy. This uncertainty regarding what standards are applicable to a housing development project application will undoubtedly chill the ability of housing developers to put forward applications during the pendency of HCD review, even if HCD does not certify the element.
- Committee Amendments. To address the issues noted above; the committee may wish to consider amending the bill to limit its applicability to local agencies that submit their adopted housing element to HCD at least 90 days before the revision deadline.
Related/Prior Legislation
AB 1886 (Alvarez, Chapter 267, Statutes of 2024) — clarified that a housing element is substantially compliant with Housing Element Law, when both a local agency adopts the housing element and HCD or a court finds it in compliance.
AB 1893 (Wick, Chapter 268, Statutes of 2024) — amended the HAA to revise the standards a housing development project must meet in order to qualify for the “builder’s remedy,” which authorizes projects to bypass local development standards in jurisdictions that fail to adopt a substantially compliant housing element. This bill also expanded the scope of actions that constitute disapproval of a housing development project by a local government.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday, April 23, 2025)
SUPPORT:
City of Chino Hills
City of Belmont,
City of Buena Park
City of Fullerton
City of La Habra
City of Palo Alto
City of Placentia
City of Tustin
Green Foothills
Town of Hillsborough
OPPOSITION:
Abundant Housing LA
California Building Industry Association (CBIA)
California YIMBY
Circulate San Diego
East Bay YIMBY
Greenbelt Alliance
Grow the Richmond
Housing Action Coalition
Mountain View YIMBY
Napa-Solano for Everyone
Northern Neighbors
Peninsula for Everyone
Santa Cruz YIMBY
Santa Rosa YIMBY
SF YIMBY
South Bay YIMBY
South Pasadena Residents for Responsible Growth
SPUR
The Two Hundred
Ventura County YIMBY
YIMBY Action
YIMBY LA
YIMBY SLO
-- END --
California Department of Housing and Community Development, Technical Assistance Letter to City of Pasadena (Sacramento, CA: HCD, September 18, 2024). ↑
City of Palo Alto, "2300 Geng Road," accessed April 18, 2025, https://www.paloalto.gov/Departments/Planning-Development-Services/Current-Planning/Projects/2300-Geng-Road. ↑
City of Menlo Park, "80 Willow Road," accessed April 18, 2025, https://menlopark.gov/Government/Departments/Community-Development/Projects/Under-review/80-Willow-Rd. ↑
California Office of Historic Preservation, National Register of Historic Places Registration Form: Sunset Headquarters (Draft), prepared by Chattel, Inc., September 2024, https://ohp.parks.ca.gov/pages/1067/files/CA_San%20Mateo%20County_Sunset%20Headquarters_DRAFT.pdf. ↑
California Department of Housing and Community Development, Housing Element Implementation and APR Dashboard, accessed April 18, 2025, https://www.hcd.ca.gov/planning-and-community-development/housing-element-implementation-and-apr-dashboard. ↑
California Department of Housing and Community Development, Housing Element Compliance: Frequently Asked Questions (Sacramento, CA: HCD, March 16, 2023). ↑
Discussed in Hearing
Senate Floor
Senate Standing Committee on Housing
Assembly Floor
Assembly Standing Committee on Local Government
Assembly Standing Committee on Housing and Community Development
Senate Floor
Senate Standing Committee on Housing
Senate Standing Committee on Housing
Bill Author
Bill Co-Author(s):