Missing Middle Townhome Ownership Act.

Section 65852.30(a) cross-reference updated from 'Section 66499.5' to 'Chapter 9 (commencing with Section 66499.45) of Division 2 of Title 7,' reflecting that the subdivision map provisions are now organized as a multi-section chapter rather than a single section.

Enrollment formatting: removed amendment history dates, added 'Passed the Assembly August 26, 2026' and 'Passed the Senate August 26, 2026,' added Governor receipt line, removed line-number annotations, and reflowed page numbering.

The maximum local minimum residential density for a site to qualify for streamlined approval was lowered from 60 units per acre to 50 units per acre, meaning fewer high-density-zoned parcels will be eligible for the ministerial approval process.

The affordable housing requirement (at least 10 percent of units dedicated to lower income households with 45-year affordability) now only applies to townhome development projects that include 11 or more units. Projects with 10 or fewer units are exempt from this requirement.

The duplicate Section 65852.29 was eliminated and all references consolidated under Section 65852.30, cleaning up a drafting error where the same content appeared under two section numbers.

The phrase 'low-income or very low lower income households' in the regional housing need exclusion was simplified to 'lower income households,' broadening slightly which sites are excluded from eligibility based on their designation for regional housing need.

The main operative section is renumbered from Government Code Section 65852.29 to 65852.30, with a new Section 65852.29 added. The bill title now references both sections.

The term 'townhome housing development project' is replaced throughout with the shorter 'townhome development project.'

The definition of 'townhome' removes the 'air gap' language and simplifies to: shares a common wall or is separated from neighboring units by no more than the minimum fire separation distance.

A new 45-year affordability period is added for lower-income units in townhome development projects with 11 or more units. The local agency must ensure continued affordability for at least 45 years, and the units must have an affordable housing cost as defined in Health and Safety Code Section 50052.5.

A new provision allows a local inclusionary housing requirement that mandates a higher percentage of affordable units to supersede the bill's 10 percent minimum, meaning local policies can impose stricter affordability requirements.

The explicit reference to Housing Accountability Act (Section 65589.5) and Permit Streamlining Act timelines as applicable procedures is removed from the ministerial approval section, though the housing application procedures may still apply through other means.

A new requirement (paragraph 13) mandates that any parcels created under this section must be served by an existing community water system.

Two new catch-all compliance requirements are added: the proposed subdivision must conform to all applicable objective requirements of the Subdivision Map Act division, and must comply with all standards established pursuant to the main operative section.

Ministerial approval is narrowed from covering 'a parcel map or a tentative and final map' to only 'a tentative and final map,' removing standalone parcel maps from the streamlined process.

The infill site requirement is changed from using the state's metropolitan/nonmetropolitan county and suburban jurisdiction framework to using the United States Census Bureau's definition of an urban area. Lots not in a Census-defined urban area must be on an infill site.

The historic preservation restriction is broadened from prohibiting demolition of a registered historic structure to prohibiting the development from being located in a contributing structure within a historic district or on a parcel individually listed as a historical resource, regardless of whether demolition occurs.

Townhome development projects must now dedicate at least 10 percent of total units to lower income households as defined in Section 50079.5 of the Health and Safety Code. This is a new affordability requirement that did not exist in the prior version.

The infill site requirement for subdivision maps now applies to lots not located in a nonmetropolitan county or suburban jurisdiction, using the U.S. Census Bureau definition of urban area, rather than relying solely on the state's metropolitan/nonmetropolitan county classification.

A new exclusion prevents townhome subdivision maps on parcels that contained five or more units within the five years preceding the application date, protecting recently existing multi-unit housing from being replaced.

Local agencies may now require the construction or dedication of improvements, facilities, infrastructure, or rights-of-way necessary for the project to be consistent with the local agency's general plan. This gives local governments new authority to impose infrastructure conditions.

Objective general plan standards are now explicitly added alongside zoning, subdivision, and design standards as categories of standards local agencies may impose on townhome projects.

The demolition protection provision was broadened from prohibiting only demolition to also prohibiting alteration of protected housing types (affordable housing, rent-controlled units, recently vacated rent-controlled units, and owner-withdrawn units).

The requirement that all parcels created under the subdivision must be served by a public water system and municipal sewer system was removed from the subdivision map eligibility criteria.

The prohibition on imposing standards solely because a project uses this streamlined process now has an exception: if the site's current zoning does not allow the proposed density, the local agency may require compliance with objective standards that would have applied had the site been zoned to allow that density and unit type.

A new savings clause states that nothing in the section supersedes or alters the California Coastal Act of 1976, clarifying that coastal regulations remain fully applicable.

A new requirement mandates that local agencies follow tribal consultation procedures under Section 21080.66 of the Public Resources Code when processing these applications.

The definition of townhome air gap separation now specifies it must be no more than the minimum fire separation distance set forth in Chapter 3 of Part 2.5 of Title 24 of the California Building Standards Code, replacing the previously open-ended standard.

The definition of townhome development project now explicitly references the housing project definition in Section 65589.5 and adds a standalone requirement that the project achieve at least 75 percent of applicable density, previously embedded in other language.

Townhome development projects must now have an average total floorspace of no more than 1,750 net habitable square feet per unit. 'Net habitable square feet' is defined as finished and heated floor area enclosed by walls with at least 6.5 feet of headroom, including living, sleeping, stair, hall, service, and storage areas, but excluding garages, carports, parking spaces, cellars, half-stories, and unfinished attics and basements.

Townhome development projects are now capped at 150 total units. Projects exceeding this limit would not qualify for the ministerial approval process established by the bill.

The affordable housing site requirement was changed from a conditional obligation to an outright exclusion. Previously, if a lot was identified to accommodate regional low-income or very low-income housing need, the project could proceed but units would be subject to a recorded affordability restriction of at least 45 years. Now, a lot that is identified for such regional housing need simply cannot be used for a townhome development project under this section.

The infill site requirement for nonmetropolitan areas was broadened slightly by removing the word 'rural' before 'nonmetropolitan county.' Previously it applied to 'a rural nonmetropolitan county or suburban area, jurisdiction'; now it applies to 'a nonmetropolitan county or suburban jurisdiction.' This could expand the set of jurisdictions where the infill-site requirement (at least three sides adjoining developed parcels) must be met.

The definitions of 'townhome' and 'townhome development project' in Section 66499.45 (the new Chapter 9) were changed from full restatements to cross-references stating they 'have the same meaning as defined in Section 65852.29.' This is a technical simplification that ensures the two sections cannot diverge over time.

Duplicate paragraph numbering in subdivision (a) of Section 66499.46 was corrected. The old version had two paragraphs numbered (10), two numbered (11), and two numbered (12); the new version uses sequential numbering from (10) through (13).

A new eligibility criterion (paragraph 10) requires that the subdivision would not result in the demolition of a historic structure that was placed on a national, state, or local historic register before the date a preliminary application was submitted. This adds a cultural preservation safeguard to the streamlined approval process.

The infill site requirement for rural areas was narrowed from 'rural or suburban area' to 'rural nonmetropolitan county or suburban area, jurisdiction, as defined in subdivisions (d) to (f), inclusive, of Section 65583.2.' This ties the geographic scope to existing statutory definitions rather than using the generic term 'rural.'

Paragraph (6) regarding affordable housing restrictions appears to contain a drafting error where text reading 'The lot proposed to be subdivided is not' was inserted into the middle of the sentence about affordability restrictions, and the word 'households' was left dangling at the end. This likely needs correction before final passage.

Section 66499.46(j)(2) was changed from a passive statement that the chapter 'shall not affect' prevailing wage determinations to an active prohibition: the Director of Industrial Relations 'shall not consider wages for work on any townhome development project, constructed relying on the provisions of this chapter, in the determination of the prevailing wage.' This means the $28/hour minimum wage required by the bill will not be factored into California's prevailing wage calculations, potentially keeping state prevailing wage rates lower than they otherwise would be.

Redundant language was cleaned up in multiple places: '75 percent of the densities applicable density' became '75 percent of the applicable density' in Section 65852.29(b)(1), and 'will meet densities as at least 75 percent' became 'will meet at least 75 percent' in Section 66499.46(a)(1).

Section numbering was corrected to eliminate a duplicate 'SEC. 4' placeholder, resulting in proper sequential numbering (SEC. 4 for the San Francisco special statute finding, SEC. 5 for the statewide concern finding, SEC. 6 for the reimbursement provision).

San Francisco is now explicitly exempted from the bill. New legislative findings state the bill addresses a matter of statewide concern rather than a municipal affair, and a special statute is deemed necessary for San Francisco.

The density requirement is relaxed throughout the bill from full compliance with densities specified in Section 65583.2 to at least 75 percent of the applicable density. This applies to the definition of a qualifying townhome development project and to the subdivision map approval standard.

The zoning eligibility criterion for underutilized sites is tightened from 'zoned for single-family residential development' to 'zoned exclusively for single-family residential development,' narrowing which sites qualify.

New site exclusions are added: land identified for conservation in adopted natural community conservation plans or habitat conservation plans, habitat for protected species (candidate, sensitive, special status, fully protected, or federally/state endangered), and land under conservation easement.

The flood hazard area provision is expanded to specify when a project may be located on such a site (Letter of Map Revision or meeting FEMA minimum flood plain management criteria). A new regulatory floodway exclusion is added requiring no-rise certification.

A new anti-land-banking provision prohibits selling, leasing, or financing subdivided parcels separately unless each parcel contains a completed residential structure, an existing legally permitted structure, is reserved for internal circulation or common area, or is the only remaining undeveloped parcel. Violations are subject to penalties under Chapter 7 of the Subdivision Map Act.

New requirements added to the subdivision map approval section: parcels must be served by public water and municipal sewer systems; the project must comply with all applicable objective zoning, subdivision, and design standards; and approval/denial must follow Housing Accountability Act and Permit Streamlining Act timelines.

A new exemption is added stating that townhome development projects are not required to comply with minimum parcel size, width, depth, frontage, or dimension requirements beyond the 600 square foot minimum, nor are they required to form a homeowners' association (except as required by the Davis-Stirling Act), though local agencies may still require common space maintenance mechanisms.

New exclusion: the proposed subdivision cannot be located on a site governed by the Mobilehome Residency Law, Recreational Vehicle Park Occupancy Law, Mobilehome Parks Act, or Special Occupancy Parks Act. This removes mobilehome parks and RV parks from eligibility for streamlined townhome approval.

New infill requirement: if the lot is in a rural or suburban area, it must be on an infill site (at least three sides of the perimeter adjoin developed parcels). Parcels separated only by a street, pedestrian path, or bicycle path count as adjoined. This restriction does not apply to urban areas.

Expanded demolition protections: added two new categories of housing that cannot be demolished. First, housing occupied by tenants and subject to rent or price control within five years preceding the application date, including units already demolished or vacated before submission. Second, parcels where an owner exercised rights under Chapter 12.75 (Section 7060) to withdraw accommodations from rent or lease within 15 years before the application.

New anti-splitting rule: the proposed subdivision will not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot. This prevents developers from separating ownership of pre-existing units.

New inclusionary housing requirement: if the proposed townhome development project would result in 11 or more units, it must comply with any applicable local inclusionary housing requirements. This creates a threshold above which the streamlined process no longer exempts projects from inclusionary mandates.

Assembly Member Wicks was added as a co-author of the bill alongside Assembly Member Quirk-Silva.