SB 838: Housing Accountability Act: housing development projects. - California

10/13/25 - Chaptered → SB838 · 4 edits

MODERATE

This diff shows the removal of the full chaptered text of SB 838 (Chapter 789, approved October 13, 2025) and its replacement with a version labeled simply 'SB838.' The chaptered version contained comprehensive amendments to the Housing Accountability Act (Government Code Section 65589.5), including new restrictions on transient lodging in mixed-use developments, expanded builder's remedy provisions, and additional enforcement mechanisms. Because the diff is truncated (showing only 932 of 2936 lines) and all visible lines are deletions, the full content of the replacement version cannot be assessed.

Scope change

Cannot be determined from the visible portion of the diff. The chaptered version applied statewide to all local agencies (including charter cities) under the Housing Accountability Act. The replacement version's scope is not visible due to truncation.

SCOPE

The entire chaptered text of SB 838 was removed, including its legislative findings on California's housing crisis, the definition of 'housing development project' with new transient lodging restrictions for mixed-use developments, builder's remedy provisions, and enforcement mechanisms with fines of at least $10,000 per unit.

DEFINITION

The removed text contained a key definitional change: mixed-use developments with at least two-thirds residential square footage could no longer include any portion designated as a hotel, motel, bed and breakfast inn, or other transient lodging to qualify as a housing development project. An exception allowed the non-transient-lodging portion to still be treated as a housing development project while the transient lodging portion was approved separately without HAA benefits.

REQUIREMENT

The removed text included detailed builder's remedy project criteria, including density calculations (up to 35 units per acre bonus near transit stops or high-resource areas), restrictions on local agencies imposing additional requirements solely because a project is a builder's remedy, and deemed compliance with various state housing statutes.

ENFORCEMENT

The removed text included enforcement provisions allowing courts to compel compliance within 60 days, award attorney's fees, and impose fines of at least $10,000 per housing unit deposited into a local housing trust fund or the Building Homes and Jobs Trust Fund.

09/05/25 - Amended Assembly → 09/18/25 - Enrolled · 2 edits · Sep 18, 2025

MINOR

The diff between the Amended Assembly version and the Enrolled version of SB 838 shows the entire document as removed with no corresponding additions visible in the truncated portion (858 of 5152 lines shown). This pattern is consistent with a full reformatting of the bill as it moved to enrolled status, which typically changes page numbering, headers, and layout. One potentially substantive change is visible in the mixed-use development definition where language appears to shift from 'may' to 'shall' regarding whether the non-transient-lodging portion of a mixed-use project qualifies as a housing development project.

DEFINITION

In the definition of 'housing development project' for mixed-use developments with at least two-thirds residential square footage, the language appears to change from 'may be considered' to 'shall be considered' a housing development project when the non-hotel portion is separated from the transient lodging portion. This makes it mandatory rather than permissive that the residential portion qualifies for Housing Accountability Act protections.

TECHNICAL

The entire document was reformatted as part of the transition from Amended Assembly to Enrolled status, which typically involves changes to page numbers, line numbering, and header formatting without substantive policy change.

09/18/25 - Enrolled → 10/13/25 - Chaptered · 3 edits · Oct 13, 2025

MINOR

This is a standard transition from the enrolled bill version to the chaptered (signed into law) version of SB 838. The substantive policy text appears unchanged; the differences are limited to formatting, authentication headers, page numbering, and the addition of the governor's approval date and chapter number (Chapter 789).

TECHNICAL

Header changed from Senate Bill enrolled format with clerk signatures to 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' with Chapter 789 designation and governor approval date of October 13, 2025.

Page headers changed from 'SB 838' format to 'Ch. 789' format throughout the document.

Line wrapping and paragraph formatting adjusted to match the official chaptered law layout, with no apparent changes to substantive statutory language in the visible portion of the diff.

09/03/25 - Amended Assembly → 09/05/25 - Amended Assembly · 2 edits · Sep 5, 2025

MINOR

SB 838 was amended to add a coordination provision with AB 1308, stating that additional changes to Section 65589.5 of the Government Code proposed by AB 1308 would be incorporated into this bill, operative only if both bills are enacted and SB 838 is enacted last. The amendment also slightly reorganized the bill summary language regarding the hotel and transient lodging restriction in mixed-use developments. The remaining changes are pagination and line-numbering adjustments resulting from the inserted text.

SCOPE

Added a provision stating that the bill would incorporate additional changes to Section 65589.5 of the Government Code proposed by AB 1308, operative only if both bills are enacted and SB 838 is enacted last. This creates a conditional cross-bill dependency that could expand the bill's effect on housing development project rules.

TECHNICAL

The sentence about prohibiting hotel, motel, bed and breakfast inn, or other transient lodging use in mixed-use developments was moved within the bill summary from an earlier position to a later position, likely for clarity of presentation. No substantive change to the restriction itself.

05/01/25 - Amended Senate → 07/17/25 - Amended Assembly · 2 edits · Jul 17, 2025

MINOR

The Assembly amended SB 838 by removing an exception that had allowed a portion of a mixed-use project to be designated for use as 'a lodging' under the transient lodging prohibition. This closes a gap in the rule requiring that no part of qualifying mixed-use projects (with at least two-thirds residential) be used as hotels, motels, bed and breakfast inns, or other transient lodging. The remaining changes are primarily text reflow and procedural header updates reflecting the bill's passage through the Assembly.

REQUIREMENT

Removed the exception 'except a portion of the project may be designated for use as a lodging' from the transient lodging prohibition in subclause (II)(ia) of the mixed-use development eligibility criteria. Previously, even though no portion could be a hotel, motel, bed and breakfast inn, or other transient lodging, a vague carve-out allowed some portion to be 'a lodging.' The Assembly version eliminates this exception entirely, making the prohibition absolute for projects meeting the two-thirds residential threshold.

TECHNICAL

The bill summary section was reorganized: the retroactivity language (applying the rule to applications not deemed complete as of January 1, 2025) was moved from one position in the summary to another. The page count decreased from 97 to 96 pages due to the net removal of text.

07/17/25 - Amended Assembly → 09/03/25 - Amended Assembly · 3 edits · Sep 3, 2025

MINOR

SB 838 was amended to remove the blanket prohibition on transient lodging (hotels, motels, bed and breakfast inns) in mixed-use projects seeking housing development project status. Instead of disqualifying the entire project, the new language allows the non-transient-lodging portion to qualify as a housing development project while the transient lodging portion is separately approved without access to housing-related state law benefits. The retroactivity provision applying to applications not deemed complete as of January 1, 2025 was also removed.

ELIGIBILITY

Mixed-use projects with at least two-thirds residential square footage can now include a hotel, motel, bed and breakfast inn, or other transient lodging component. The non-transient-lodging portion may still be considered a housing development project, while the transient lodging portion is separately approved but ineligible for benefits conferred on housing development projects by state law (including Section 65913.4).

SCOPE

The retroactivity provision that applied the transient lodging restriction to applications or revised applications not deemed complete as of January 1, 2025 (including projects with preliminary applications submitted before that date) was removed.

TECHNICAL

The legislative counsel's digest was updated from describing a retroactive application requirement to stating the bill would correct cross-references in the Housing Accountability Act.

02/21/25 - Introduced → 03/26/25 - Amended Senate · 4 edits · Mar 26, 2025

MODERATE

SB 838 was completely repurposed from a groundwater bill into a housing accountability bill. The amended version adds a new restriction to the Housing Accountability Act (Government Code Section 65589.5) that prohibits mixed-use housing development projects with at least two-thirds residential square footage from including any hotel, motel, bed and breakfast inn, or other transient lodging component (with an exception for residential hotels). The change is retroactive to applications not yet deemed complete as of January 1, 2025. This closes a loophole where developers could embed transient lodging in large residential projects to gain the Act's protections against local denial.

Scope change

The bill shifted from addressing only groundwater plan review requirements in general plan amendments to also restricting what types of mixed-use projects qualify for Housing Accountability Act protections, specifically by excluding projects containing transient lodging components.

ELIGIBILITY

Mixed-use developments with at least two-thirds of new or converted square footage designated for residential use can no longer include any portion designated as a hotel, motel, bed and breakfast inn, or other transient lodging. An exception allows residential hotels as defined in Section 50519 of the Health and Safety Code.

TIMELINE

The transient lodging prohibition is retroactive and applies to any application or revised application that the local agency has not deemed complete as of January 1, 2025, including projects where a preliminary application was submitted before that date.

SCOPE

The bill's scope expanded from a single groundwater provision (Section 65350.5) to also include the Housing Accountability Act (Section 65589.5), making it a combined groundwater and land use bill.

FISCAL

Fiscal notes changed from 'Fiscal committee: yes' and 'State-mandated local program: yes' to 'Fiscal committee: no' and 'State-mandated local program: no,' reflecting that the housing accountability provisions do not create new state-mandated local programs requiring reimbursement.

03/26/25 - Amended Senate → 05/01/25 - Amended Senate · 4 edits · May 1, 2025

MODERATE

SB 838 was narrowed in scope by removing its amendment to Section 65350.5 of the Government Code, which had required planning agencies to review and consider groundwater sustainability plans before adopting or substantially amending general plans. The bill now focuses exclusively on housing policy under the Housing Accountability Act (Section 65589.5). As a consequence, the state-mandated local program designation was changed from yes to no, and the fiscal committee review requirement was eliminated.

Scope change

The bill's scope was narrowed from covering both groundwater planning requirements and housing accountability to covering only housing accountability under Section 65589.5 of the Government Code. The groundwater sustainability plan review requirement for general plan amendments was entirely removed.

SCOPE

The entire amendment to Section 65350.5 of the Government Code was removed. This provision had required city or county planning agencies to review and consider groundwater sustainability plans, groundwater management plans, or alternative plans adopted under specified groundwater management laws before adopting or substantially amending a general plan.

The bill title was changed from 'relating to groundwater. land use.' to 'relating to land use.' and the legislative counsel's digest removed all references to city or county general plans and groundwater sustainability/management plans.

FISCAL

The state-mandated local program designation changed from 'yes' to 'no,' eliminating the requirement for the Commission on State Mandates to determine whether reimbursement is owed to local agencies for costs mandated by the state.

TECHNICAL

A minor grammatical clarification in the digest: 'require that no portion of the project designated for use as a hotel' was changed to 'require that no portion of the project be designated for use as a hotel,' adding the verb 'be' for grammatical correctness without changing the substantive requirement.

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