Housing financing: joint powers agreements: bond approvals: subdivisions: tentative and final maps: appeals.

The entire amendment to Section 65589.5 of the Government Code (Housing Accountability Act) was deleted. This removed provisions on local agency disapproval findings, builder's remedy project protections, emergency shelter approval standards, density bonus enhancements, and related definitions that had been a central part of the bill.

New Section 6505.7 added to the Government Code, designating the Treasurer as an applicable elected representative for federal tax purposes for joint powers authorities, defining geographic jurisdiction of JPAs, and authorizing the Treasurer to execute JPA agreements without DGS approval but limiting this authority to financings for qualified residential rental projects or affordable multifamily rental housing.

The bill now also amends Section 52011.5 of the Health and Safety Code (multifamily housing revenue bonds), which was not in the prior version. The bill description shifted from 'Land use: housing development approvals' to 'Housing financing: joint powers agreements: bond approvals.'

New Section 6505.9 added to the Government Code, creating a mechanism where the state (through the Treasurer) can step in to approve bond issuances when a local agency member of a joint powers authority fails to provide required federal tax law approval within 30 days (or up to 90 days if a qualifying document sets a longer period). Defines 'eligible residential rental project' as one that has received or requires a California Debt Limit Allocation Committee allocation and where the local agency has failed to act after written request.

New definitions added in Section 6505.9 including 'eligible residential rental project,' 'failure to provide the approval required by federal tax law,' 'local agency member,' 'qualified residential rental project' (referencing IRC Section 142(d)), 'qualifying document' (a published online document establishing hearing process and timing not exceeding 90 days), and 'written request' (specifying content and delivery requirements).

State-mandated local program designation changed from 'yes' to 'no,' indicating the amended bill no longer imposes new duties on local agencies that would trigger state reimbursement obligations under the California Constitution.

A severability provision was added, making the provisions of the act severable so that invalidation of one section does not affect the others.

All amendments to Section 65912.156 (transit-oriented development) were dropped from the bill, including the revised definition of 'high-frequency commuter rail' that would have changed it to mean a station with at least 48 passenger trains on average per weekday across all directions.

In the builder's remedy density bonus provision, the list of income categories whose dedicated units count toward density bonus eligibility was expanded to explicitly include 'low income' as a separate category alongside 'extremely low-income,' 'very low income,' 'low-income,' and 'moderate-income' households.

The bill's title and legislative digest were updated to remove references to transit-oriented development, reflecting the dropped provisions. Page numbering shifted from 94 to 93 throughout due to the removed content.

The bill now amends Section 6519 of the Government Code, adds new Section 6505.7, and repeals Section 6547.9, expanding beyond the original land-use-only focus to include housing financing provisions.

Provides that the state becoming a member of an existing joint powers authority shall not, in and of itself, constitute a 'change in composition' under the Joint Exercise of Powers Act, which would otherwise require majority vote approval by applicable legislative bodies.

Designates the Treasurer as the applicable elected representative of a joint powers authority for federal tax purposes, with discretion to approve bond issuance on behalf of the joint powers agency.

Authorizes the Treasurer to execute agreements including the state as a member of a joint powers authority without obtaining approval from the Department of General Services, and to provide any approval or consent related to bond issuance.

Specifies that 'city,' 'county,' and 'city and county' are deemed to include the state when the state is a member of a joint powers authority, for purposes of revenue bond provisions financing multifamily rental housing.

Assembly Member Caloza added as co-author; bill subject matter expanded from 'land use' to 'land use. housing.'

All provisions amending Civil Code Section 4751 and Government Code Sections 65852.21, 65913.4, and 66411.7 were removed. This eliminates the bill's provisions on ministerial approval for housing of 2 or fewer units in single-family zones, streamlined approval for multifamily housing, urban lot split reforms under the Subdivision Map Act, ADU protections in common interest developments, and coastal zone development intent.

The co-author designation (Assembly Member Wicks) was removed from the bill header.

The definition of 'high-frequency commuter rail' was changed from a 'public commuter or intercity rail service operating a total of at least 48 trains per day across both directions' to a 'public commuter or intercity rail station with a total of at least 48 passenger trains on average per weekday across all directions.' A parallel change was made to 'very high frequency commuter rail' (72 trains). This narrows eligibility by requiring the higher threshold be met on an average weekday basis rather than any day, and shifts the unit of measurement from the service to the station.

The definition of 'transit-oriented development stop' was narrowed. The prior version included stops on routes where a preferred alternative has been selected or that are identified in a regional transportation improvement program. The revised definition removes this broader inclusion, limiting eligibility to major transit stops as defined by statute that are actually served by qualifying transit services.

Two new definitions were added: 'rail transit' (same meaning as Section 99602 of the Public Utilities Code) and 'rail transit station' (any passenger rail station except those served exclusively by long-distance routes as defined in federal law).

Section 65912.157(a) was changed from requiring compliance with 'the applicable' requirements to 'all of the following requirements,' making every listed standard (minimum units, density, unit size, height limits, floor area ratio, affordability, demolition restrictions, labor standards, etc.) mandatory rather than potentially conditional.

Section 65912.158(b)(1) was changed so that agency TOD zoning standards must establish minimum requirements for 'floor area ratio' generally rather than 'residential floor area ratio' only, requiring transit agencies to set FAR standards for all uses on district-owned property within the TOD zone.

The bill's scope expanded from amending only Section 65912.156 (TOD housing definitions) to amending Sections 65589.5, 66452.5, 66458, 66462, and 66474.7, and adding new Section 66452.8 of the Government Code.

Expands the definition of 'disapprove the housing development project' under the Housing Accountability Act to include a local agency's failure to take actions required by federal tax regulations in connection with the issuance of tax-exempt private activity bonds for a housing development project.

The Senate version's provision removing the specification that transit agency TOD zoning standards for floor area ratio apply only to residential use (thereby requiring general floor area ratio standards) appears to have been removed from the Assembly version.

Specifies that the new bond-related provisions do not require a local agency to incur any financial liability, debt, or obligation, protecting agencies from being forced into financial commitments.

Creates an exception to Subdivision Map Act appeal authority: interested persons can no longer appeal tentative or final parcel maps that meet specified criteria, while preserving the right of applicants, subdividers, tenants, advisory agencies, and public agencies or officials to file appeals.

The Senate version's detailed amendments to TOD definitions (revising 'high-frequency commuter rail' to mean a station with at least 48 trains per weekday, adding high-frequency ferry service to Tier 2 stops, replacing 'rail transit' with 'rail transit station,' and prohibiting developments on mobilehome park sites) appear to have been removed or substantially restructured in the Assembly version.

Entirely new statutory framework (Sections 65912.156-65912.158) requiring local agencies to allow transit-oriented housing developments as an allowed use on sites zoned for residential, mixed, or commercial development within one-half mile of a TOD stop (or one-quarter mile for Tier 1 stops).

Prohibits a transit-oriented housing development from being located on an existing parcel governed under the Mobilehome Residency Law, Recreational Vehicle Park Occupancy Law, Mobilehome Parks Act, or Special Occupancy Parks Act.

Coastal zone provisions are simplified: the previous detailed language about coastal development permits and public hearing exemptions is replaced with a general statement of legislative intent to increase housing supply in the coastal zone while protecting coastal resources and public access.

New definitions added including: 'high-frequency ferry service' (15 departures per weekday), 'very high frequency commuter rail' (72+ trains per weekday), 'high-frequency commuter rail' (48+ trains per weekday), 'urban transit county' (more than 15 passenger rail stations), 'rail transit station,' 'transit-oriented development zone,' 'Tier 1' and 'Tier 2' TOD stops, 'residential floor area ratio,' and 'housing development project' (excludes hotels/motels but includes residential hotels).

The definition of 'transit-oriented development stop' is revised to exclude any newly planned transit route or extension not identified in the applicable regional transportation plan on or before January 1, 2026, unless it would qualify as a Tier 1 stop. If a county becomes an urban transit county after July 1, 2026, bus service there remains ineligible for TOD designation.

The term 'rail transit' is deleted and replaced with 'rail transit station,' defined as any passenger rail station except one served exclusively by a long-distance route under federal law.

Transit-oriented housing developments must include at least 5 dwelling units, meet a minimum density of 30 du/acre (or local zoning minimum if higher), and have an average unit size not exceeding 1,750 net habitable square feet. Near Tier 1 stops within one-quarter mile: minimum height 75 feet, minimum density 120 du/acre, and residential floor area ratio up to 3.5.

TOD zoning standards for agency-owned real property in a TOD zone must now establish floor area ratio standards generally, not limited to residential floor area ratio only.

High-frequency ferry service is now added as a qualifying transit type for TOD stop designation, expanding which areas qualify for the streamlined housing process.

The minimum net habitable floor area for each of the two residential units was increased from 800 to 1,750 square feet. This means each unit must now be at least 1,750 square feet to qualify for ministerial approval, a more than doubling of the prior minimum.

The phrase 'within a single-family residential zone' was removed from the eligibility criteria in Section 65852.21(a). The provision now applies to any lot hosting a single-family home or zoned for four or fewer residential units, without requiring the lot to be within a single-family residential zone specifically.

Section 65852.21(f) was changed from stating that a local agency 'shall not be required to' permit an ADU or junior ADU on a parcel created via lot split under Section 66411.7, to stating that a local agency 'may permit' such an ADU or junior ADU. This shifts from explicitly relieving local agencies of any obligation to granting them permissive discretion.

Section 65852.21(c) was reworded to remove the phrase 'In addition to any conditions established in accordance with subdivision (b),' now simply stating that a local agency may require the listed conditions when considering an application for two residential units.

Several minor terminology and formatting corrections were made throughout, including changing 'objective design review standards' to 'objective design standards' in some instances, removing a duplicated word ('setback setback'), and renumbering subdivisions (l) through (o) to accommodate the reorganized structure.

The bill no longer amends Section 30500.1 of the Public Resources Code. The prior version required any local government in the coastal zone to submit an amendment to its local coastal program by July 1, 2026 that harmonized the Coastal Act with the bill's ministerial approval provisions for housing developments and urban lot splits, including de minimis processing criteria.

New subdivision (m)(2) in Section 65852.21 expresses legislative intent that housing developments on lots meeting specified criteria (clauses (i) through (iii) and clause (v) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 65913.4) enjoy streamlined permitting consistent with Section 65913.4 in the coastal zone, balancing increased housing supply with protection of coastal resources and public coastal access.

The bill's stated scope narrowed from amending four code sections (Civil Code 4751, Government Code 65852.21, 65913.4, and 66411.7, plus Public Resources Code 30500.1) to amending only three (Civil Code 4751, Government Code 65852.21, 65913.4, and 66411.7).

New subdivision (m)(1) in Section 65852.21 clarifies that nothing in the section supersedes or alters the California Coastal Act, except that local agencies are not required to hold public hearings for coastal development permit applications for housing developments under this section.