Housing

Existing 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 unless the local agency makes written findings as to one of certain sets of conditions, as specified. Existing law defines, for its purposes, a housing development project as a use consisting of, among other things, mixed-use developments consisting of residential and nonresidential uses meeting one of several conditions, including that at least 23 of the new or converted square footage is designated for residential use. This bill would revise the definition of "housing development project" to, in the case of mixed-use developments with at least 23 of the new or converted square footage designated for residential use, require that no portion of the project be designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging, except as specified. This bill would correct cross-references in the Housing Accountability Act. This bill would incorporate additional changes to Section 65589.5 of the Government Code proposed by AB 1308 to be operative only if this bill and AB 1308 are enacted and this bill is enacted last.

Existing law requires each city and county within the Sacramento-San Joaquin Valley to amend its general plan relative to the data and analysis contained in the Central Valley Flood Protection Plan, as specified and to amend its zoning ordinance consistent with the general plan. Existing law prohibits the legislative body of a city or county within the Sacramento-San Joaquin Valley from entering into a development agreement for property that is located within a flood hazard zone after the amendments described above are complete unless the city or county makes a specified finding. Among the possible findings, is that the local flood agency has made adequate progress on construction of a flood protection system that will result in flood protection equal to or greater than the urban level of flood protection in urban or urbanizing areas intended to be protected by the system, which, except as provided, shall be achieved by 2025 for urban and urbanizing areas protected by project levees. Existing law similarly prohibits each city and county within the Sacramento-San Joaquin Valley from approving a discretionary permit or other discretionary entitlement that would result in the construction of a new building or construction that would result in an increase in allowed occupancy for an existing building, or a ministerial permit that would result in the construction of a new residence, for a project that is located within a flood hazard zone after the amendments described above are complete unless the city or county makes a specified finding. Among the possible findings, is that the local flood agency has made adequate progress toward the urban level of flood protection as described above. Existing law similarly requires the legislative body of each city and county within the Sacramento-San Joaquin Valley to deny approval of a tentative map or a parcel map for a subdivision that is located within a flood hazard zone after the amendments described above are complete unless the city or county makes a specified finding. Among the possible findings, is that the local flood agency has made adequate progress toward the urban level of flood protection as described above. This bill would include in the exceptions to the requirement that the urban level of flood protection be achieved for urban and urbanizing areas protected by project levees by 2025, specified areas located in the City of Marysville, the City of Sacramento, the County of Sacramento, the County of Sutter, and the County of Yuba that shall, instead, be required to achieve the urban level of flood protection by 2030. The bill would authorize the Department of Water Resources to require a city or county listed above to contribute its fair and reasonable share of any property damage caused by a flood in its respective jurisdiction, as specified, until the city or county finds the area has met the urban level of flood protection. The bill would make a related technical change. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Sacramento, County of Sutter, County of Yuba, City of Marysville, and City of Sacramento.

(1) Existing law, the Governor's Reorganization Plan No. 1 of 2025 (GRP) , which became effective on July 5, 2025, reorganized specified state agencies and departments, including establishing the Housing Development and Finance Executive Committee (executive committee) within the Business, Consumer Services, and Housing Agency for the purpose of centralizing affordable housing finance policymaking across state government. The GRP requires the executive committee to, among other things, work to align state housing funding sources for the creation of a consolidated application for multifamily affordable housing developers and a coordinated review process for the application of funds. The GRP, beginning July 1, 2026, establishes the Housing Development and Finance Committee within the California Housing and Homelessness Agency, which the GRP also establishes, and transfers the executive committee to the Housing Development Finance Committee effective July 1, 2026. This bill would state the intent of the Legislature that, in addition to the other duties required of the executive committee created by the GRP to align state housing funding sources, as described above, the executive committee be required to make recommendations to the Legislature regarding improvements the Department of Housing and Community Development may make to optimize loan administration, as specified. (2) Existing law, 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. 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 Governor's Office of Land Use and Climate Innovation, formerly known as the Office of Planning and Research, and the Department of Housing and Community Development. This bill would require an annual report required by its provisions to be prepared using standards, forms, and definitions adopted by the Governor's Office of Land Use and Climate Innovation, except as specified. The bill would also make a nonsubstantive change to update a reference to the Governor's Office of Land Use and Climate Innovation in these provisions. (3) The Permit Streamlining Act establishes requirements for the review and approval of applications for development projects by public agencies. Existing law defines "development project" for purposes of those provisions to include a housing development project that requires an entitlement from a local agency. This bill would define "housing development project" for purposes of those provisions. (4) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA, for various purposes, including for the purpose of limiting certain exemptions from CEQA, defines "natural and protected lands" to mean sites located within specified locations, including, among other locations, lands protected as preserve areas or reserve lands, as provided. This bill would instead include in the definition of "natural and protected lands" for CEQA purposes lands that are identified for conservation in an adopted natural community conservation plan, as provided, or other adopted natural resource protection plan. (5) Existing law exempts from CEQA specified new agricultural employee housing projects and projects consisting exclusively of the repair or maintenance of an existing farmworker housing project. This bill would make a technical, nonsubstantive change by amending and renumbering the above-described section of law. (6) CEQA exempts from its requirements housing projects that meet certain conditions. Under the exemption for housing projects, CEQA requires a local government to notify and consult, as specified, with each California Native American tribe that is traditionally and culturally affiliated with the project site on the proposed project, as specified. For a development project exempt from CEQA pursuant to this exemption, existing law, the Permit Streamlining Act, requires that a public agency that is the lead agency for the development project approve or disapprove the project within 30 days from the conclusion of the consultation process. Existing law, the Housing Accountability Act (HAA) , among other things, prohibits a local agency from disapproving a housing development project that complies with applicable objective general plan, zoning, and subdivision standards and criteria, or from imposing a condition that it be developed at a lower density, unless the local agency bases its decision on written findings supported by a preponderance of the evidence on the record that specified conditions exist, as provided. When a local agency makes a decision as described above, existing law requires the local agency to provide the applicant documentation describing the reason for the decision within a specified time period. For a development project exempt from CEQA pursuant to the exemption for housing projects, this bill would instead require the public agency to approve or disapprove the project within 30 days from the later of the conclusion of the above-specified consultation process or the above-specified time period under the HAA. (7) Existing law, for a proposed housing development project that would otherwise be exempt from CEQA pursuant to a statutory exemption or specified categorical exemptions, but for a single condition, limits the application of CEQA to the effects upon the environment that are caused by that single condition, except as provided. This bill would exempt from that limited application of CEQA a housing development project that has a project site or parcel size that exceeds 4 acres, if the project is a builder's remedy project, as defined, and the project applicant applied, as specified. (8) Existing law exempts from CEQA any aspect of a housing development project, as defined, including any permits, approvals, or public improvements required for the housing development project, if the housing development project meets specified conditions, as provided. Existing law requires, as one of those conditions, that the project site or parcel size for a builder's remedy project, as defined, not be more than 5 acres. This bill would instead require, as part of those conditions, that the project site or parcel size for a builder's remedy project not be more than 4 acres. The bill would require, if a lead agency determines that CEQA does not apply to an activity pursuant to the above-described exemption and determines to approve or carry out the activity, the lead agency to file a notice of exemption with the Governor's Office of Land Use and Climate Innovation and the county clerk of the county in which the activity will occur, as specified. (9) This bill, notwithstanding exemptions from CEQA or the limited application of CEQA to housing development projects, would apply CEQA to a housing development project that meets specified criteria, including, among other things, that the project is located in a city with a population of more than 85,000 but less than 95,000, as determined by the 2020 Census, and a portion of the parcel where the project is located is within a regulatory floodway, as provided. (10) Existing law establishes the Homeless Housing, Assistance, and Prevention (HHAP) program for the purpose of providing jurisdictions with grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Existing law provides for the allocation of funding under the program among continuums of care, cities, counties, and tribes in 6 rounds, with rounds 1 to 5, inclusive, administered by the Interagency Council on Homelessness and round 6 administered by the Department of Housing and Community Development, as provided. Existing law establishes a round 7 of the program and states the intent of the Legislature to enact future legislation that specifies the parameters, as specified. Existing law, effective July 1, 2026, appropriates $500,000,000, as specified, provided that these funds be disbursed in accordance with specified requirements. Existing law authorizes the Department of Finance to augment Item 2240-001-001 of the Budget Act of 2025 by $8,000,000 to prepare to administer round 7 of the program. This bill would instead require the department, during fiscal year 2025–26, to prepare to administer round 7 of the program with the goal that initial round 7 disbursements will be available to grantees meeting the statutory provisions for disbursement beginning September 1, 2026, as specified. (11) This bill would appropriate the sum of $2,106,000 from the General Fund to the Governor's Office of Land Use and Climate Innovation to support implementation of SB 131 (Chapter 24 of the Statutes of 2025) . (12) By increasing the duties of local agencies, this bill would impose a state-mandated local program. 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. (13) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

(1) Existing law, the Planning and Zoning Law, requires each county and 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 contains certain mandatory elements, including a housing element. Existing law requires that the housing element 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, as specified. Existing law requires that the housing element include, among other things, an assessment of housing needs and an inventory of resources and constraints that are relevant to the meeting of these needs, including an inventory of land suitable for residential development, as provided. Existing law, for the 4th and subsequent revisions of the housing element, requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region, as specified, and requires the appropriate council of local governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each locality in the region. Existing law requires the inventory of land 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 regional housing need. Existing law requires each local government to revise its housing element in accordance with a specified schedule. Existing law, the Housing Accountability Act, among other things, requires a local agency that proposes to disapprove a housing development project, as defined, or to impose a condition that the project be developed at a lower density to base its decision on written findings supported by a preponderance of the evidence that specified conditions exist if that project complies with applicable, objective general plan, zoning, and subdivision standards and criteria in effect at the time that the application was deemed complete. The act authorizes the applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization to bring an action to enforce the act's provisions, as provided, and provides for penalties if the court finds that the local agency is in violation of specified provisions of the act. This bill would require that a housing development project, as defined, within a specified distance of a transit-oriented development (TOD) stop, as defined, be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with applicable requirements, as specified. Among these requirements, the bill would require a project to include at least 5 dwelling units and establish requirements concerning height limits, density, and residential floor area ratio in accordance with a development's proximity to specified tiers of TOD stops, as provided. The bill would require that, for the purposes of the Housing Accountability Act, a proposed development consistent with the applicable standards of these provisions as well as applicable local objective general plan and zoning standards be deemed consistent, compliant, and in conformity with prescribed requirements, as specified. The bill would provide that a local government that denies a project meeting the requirements of these provisions located in a high-resource area, as defined, would be presumed in violation of the Housing Accountability Act, as specified, and immediately liable for penalties, beginning on January 1, 2027, as provided. These provisions would not apply to a local agency until July 1, 2026, except as specified, or within unincorporated areas of counties until the 7th regional housing needs allocation cycle. The bill would specify that a development proposed pursuant to these provisions is eligible for streamlined, ministerial approval pursuant to specified law, except that the bill would exempt a project under these provisions from specified requirements, and would specify that the project is required to comply with certain affordability requirements, under that law. This bill would require a proposed development to comply with specified demolition and antidisplacement standards; to not be located on sites where the development would require demolition of housing, or that was previously used for housing, that is subject to rent or price controls; to include housing for lower income households, as specified; be consistent with specified height, noise, safety, and fire standards; and meet specified labor standards, as provided. The bill would also authorize a transit agency's board of directors to adopt agency TOD zoning standards for district-owned real property located in a TOD zone, which establish minimum zoning requirements for an agency TOD project, as specified. Prior to one year following the adoption of the 7th revision of the housing element, this bill would not apply the provisions relating to a housing development project to specified sites for which a local government has adopted an ordinance indicating the site's exclusion, as specified, including a site that is covered by a local TOD alternative plan, as defined, adopted by a local government. For the 7th and subsequent revisions of the housing element, the bill would authorize a local government to include a local TOD alternative plan in its housing element or adopt an alternative plan by ordinance, as specified. The bill would exempt a jurisdiction that has adopted a compliant local TOD alternative plan from the provisions relating to a housing development, as specified. This bill would require the Department of Housing and Community Development to oversee compliance with the bill's provisions and would require the department to promulgate standards on how to allow for capacity pursuant to these provisions to be counted in the inventory of land included within a county's or city's housing element, as specified. The bill would authorize each metropolitan planning organization to create a map of designated TOD stops and zones within its region by tier in accordance with these standards, which would have a rebuttable presumption of validity. The bill would authorize a local government to enact an ordinance to make its zoning code consistent with these provisions, as provided. The bill would require the local government to submit a draft of this ordinance to the department for review, at least 14 days prior to adoption of the ordinance. The bill would require the local government to submit a copy of this ordinance to the department within 60 days of enactment and would require the department to review the ordinance for compliance, as specified. If at any time the department finds an ordinance is out of compliance, and the local government does not take specified steps to address compliance, the bill would require the department to notify the local government in writing and authorize the department to notify the Attorney General, as provided. This bill would define various terms for its purposes and make related findings and declarations. This 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. By increasing the duties of local officials, and by expanding the crime of perjury by requiring the certification of certain information related to labor standards, this bill would impose a state-mandated local program. (2) This bill would provide that its provisions are severable. (3) 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 specified reasons.

Under the Planning and Zoning Law, the legislative body of a county or city may adopt ordinances that, among other things, regulate the use of buildings, structures, and land, as provided. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency's processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps. Existing law requires a local agency to consider ministerially a specified proposed housing development or to ministerially approve a parcel map for an urban lot split if the development or parcel meets specified requirements, including, that the development or parcel is not located within a historic district or property included on the State Historic Resources Inventory or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to city or county ordinance, as specified. Existing law authorizes a local agency to impose specified objective standards on the development or parcel created by an urban lot split, except as specified. With respect to ministerial review of a proposed housing development under the above-described provisions, this bill would, if the other specified requirements are met, instead require a local agency to consider ministerially the development that is not located in either a contributing structure within a historic district included on the State Historical Resources Inventory or within a historic property or district pursuant to city or county ordinance or in a parcel individually listed as a historical resource included in the State Historical Resources Inventory or within a property individually designated or listed as a city or county landmark under a city or county ordinance. The bill would also authorize a local agency to adopt objective standards for the purposes of maintaining the historical value of a historic district listed in the California Register of Historical Resources, as specified. With respect to an urban lot split under the above-described provisions, this bill would, if the other specified requirements are met, instead require a local agency to ministerially approve the urban lot split if the parcel is not located within a historic landmark property included on the State Historical Resources Inventory or within a site that is designated or listed as a city or county landmark pursuant to a city or county ordinance. The bill would additionally require that the proposed urban lot split not require demolition or alteration of specified structures. By imposing additional duties on local agencies, this bill would impose a state-mandated local program. 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.

Existing law, the Affordable Housing and High Road Jobs Act of 2022 (act) , until January 1, 2033, authorizes a development proponent to submit an application for an affordable housing development or a mixed-income housing development that meets specified objective standards and affordability and site criteria, including being located within a zone where office, retail, or parking are a principally permitted use. The act makes a development that meets those objective standards and affordability and site criteria a use by right and subject to one of 2 streamlined, ministerial review processes depending on, among other things, the affordability requirements applicable to the project. The act requires the Department of Housing and Community Development to undertake at least 2 studies, one completed on or before January 1, 2027, and one completed on or before January 1, 2031, on the outcomes of the act. This bill would provide that, for purposes of determining whether a property or site satisfies the criteria, objective development standards, or other requirements for receiving streamlined, ministerial review under the act, a local government's review of the property or site is limited to the area described as being physically disturbed by construction in the application for streamlined, ministerial review and does not include, unless expressly stated otherwise, other contiguous or noncontiguous areas even if under the ownership or control of the project proponent. The bill would provide that easements for public right-of-way, public or private utilities, or other public improvements in, under, or over the property shall not make the property ineligible to receive streamlined, ministerial review for either affordable or mixed-income housing developments. This bill would also expand the eligibility for the above-described streamlined, ministerial review for mixed-income housing developments to include developments located in a campus development zone, as defined, as long as the development meets certain affordability requirements and objective standards, as provided. The bill would require the outcomes of projects built under campus development zones to be reported in the January 1, 2031, outcomes report. The bill would also make related findings and declarations. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. By expanding the scope of projects eligible for streamlined, ministerial approval as described above, this bill would expand the scope of the exemption from CEQA for ministerial projects. Existing law includes certain setback requirements in the objective standards that a mixed-income development project must meet to be subject to the above-referenced streamlined, ministerial review process. In this regard, existing law requires all parking to be set back at least 25 feet. This bill would instead impose that setback requirement only on parking that is aboveground. By changing the criteria local agencies must follow for the approval of certain development projects, this bill would impose a state-mandated local program. 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.

Existing law, the Planning and Zoning Law, requires each county and 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 requires the Department of Housing and Community Development to determine whether the housing element is in substantial compliance with those provisions. Existing law requires the department to designate jurisdictions as prohousing pursuant to emergency regulations adopted by the department, as prescribed. Existing law requires that jurisdictions that are prohousing and that are in substantial compliance with specified provisions be awarded additional points or preference in the scoring of applications for specified state programs. Existing law defines "prohousing local policies" for these purposes and specifies a nonexhaustive list of examples of those policies, including local financial incentives for housing and adoption of zoning allowing for use by right for residential and mixed-use development. This bill would include in the definition of "prohousing local policies" policies that keep people housed, and would include additional examples of prohousing local policies under the above-described provisions, as specified. This bill would incorporate additional changes to Section 65589.9 of the Government Code proposed by AB 36 to be operative only if this bill and AB 36 are enacted and this bill is enacted last.

(1) Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. Existing law, the Planning and Zoning Law, requires a person or entity proposing a change in use of a mobilehome park to file a report on the impact of the conversion, closure, or cessation of use of the mobilehome park that includes a replacement and relocation plan, as specified. Existing law requires the legislative body or advisory agency to review the report before any change of use, as provided. Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing. This bill would require, if a closure, cessation, or change of use is the result of damage or destruction of the mobilehome park by a disaster, as defined, the person or entity proposing that closure, cessation, or change of use to file an impact report, as described in the paragraph above, which also includes a technical service inspection report from the Department of Housing and Community Development that identifies the observed conditions within the park. By placing new requirements on local legislative bodies when approving permits for a change of use for mobilehome parks, this bill would impose a state-mandated local program. Existing law requires the person or entity proposing the change of use of a mobilehome park to pay to the displaced resident the in-place market value of the displaced resident's mobilehome, as provided. This bill would provide that if the proposed closure, cessation, or change of use is related to damage or destruction by a disaster, the person or entity proposing the change of use of a mobilehome park is not required to pay to the displaced resident the in-place market value of the displaced resident's mobilehome. (2) Existing law regulates the terms and conditions of residential tenancies. Existing law requires the lessor of a building intended for human occupation to repair dilapidations, as specified, rendering it untenantable. Existing law requires a dwelling to be deemed untenantable if it substantially lacks certain affirmative standard characteristics. This bill would impose a duty upon the landlord to undertake certain actions, within a reasonable time and according to specified cleaning protocols, as may be necessary to remediate any dilapidations that arise as a result of a disaster. The bill would establish a presumption that the presence at the rental unit of debris from the disaster renders the unit untenantable, until a determination has been made by a local public health agency or official that the debris does not contain toxic substances. This bill would require the landlord to notify the tenant in writing that the landlord has fulfilled its duty to remediate dilapidations and that the tenant may view various reports, if requested. The bill would specify that these provisions do not require a landlord to rebuild a residential real property or any portion thereof that has sustained damage as a result of a disaster, and that, unless lawfully terminated by either party, the tenancy remains in effect and the tenant has the right to return to the rental unit, at the same rental rate in effect immediately prior to the disaster, as soon as it is safe and practicable. (3) Existing law terminates the hiring of a thing by the destruction of the thing hired, or when the greater part of the thing hired perishes from any other cause than the want of ordinary care of the hirer. This bill would require the landlord to return to the tenant any advance rental payments made by the tenant when the hiring of residential real property is terminated due to damage or destruction of the property. The bill would also require management of a mobilehome park to return to the homeowner any advance rental payments made by the homeowner when the mobilehome tenancy is terminated due to damage or the destruction of the mobilehome park or any space as a result of a disaster. The bill would discharge the tenant's or homeowner's obligation to pay rent during any period during which a tenant or homeowner is unable to occupy their rental unit due to a mandatory evacuation order pursuant to a disaster, as provided. (4) Existing law makes the Commissioner of Financial Protection and Innovation the head of the Department of Financial Protection and Innovation, which executes the laws of this state relating to, among other things, residential mortgage lenders and servicers and mortgage loan originators employed or supervised by finance lenders or residential mortgage lenders. This bill would require the commissioner to, upon the declaration of a state of emergency due to wildfire, as specified, coordinate with mortgage lenders and servicers subject to the commissioner's jurisdiction operating in this state to facilitate and monitor the implementation and promotion of mortgage forbearance, foreclosure prevention, and loss mitigation programs available to borrowers who experience a material decrease in household income or a material increase in household expenses due, directly or indirectly, to the wildfire emergency. (5) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law provides that recorded covenants, conditions, restrictions, or private limits on the use of land contained in instruments affecting the transfer or sale of any interest in real property that, among other things, restrict the number, size, or location of the residences that may be built on the property, are not enforceable against the owner of an affordable housing development, as defined, if an approved restrictive covenant affordable housing modification document has been recorded in the public record, as provided. As part of this process, existing law requires the owner to submit to the county recorder a copy of the original restrictive covenant and any documents the owner believes necessary to establish that the property qualifies as an affordable housing development and requires the county counsel to determine, among other things, if the property qualifies as an affordable housing development and if a modification document may be recorded. Existing law provides that these provisions do not authorize any development that is not otherwise consistent with local general plans, zoning ordinances, and any applicable specific plan. This bill would extend those provisions to a housing development that is owned or controlled by an entity or individual that has submitted a development project application to redevelop an existing commercial property, and the development project includes residential uses permitted by state housing laws or local land use and zoning regulations and would make various conforming changes. The bill would additionally make these provisions applicable to covenants, conditions, restrictions, or private limits contained in a reciprocal easement agreement, as provided, and include instruments affecting the transfer or sale of any interest in real property that prohibits the number, size, or location of residences that may be built on the property or restricts or prohibits the residential uses of the property. The bill would further provide that these provisions do not authorize any development that is not otherwise consistent with state housing laws. By imposing additional duties on county officials, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

(1) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards, including that the development is a multifamily housing development that contains two or more residential units. This bill would deem an adaptive reuse project a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process if the project meets specified requirements, subject to specified exceptions. In this regard, an adaptive reuse project, in order to qualify for the streamlined, ministerial review process, would be required to be proposed for an existing building or structure that is less than 50 years old or meets certain requirements regarding the preservation of historic resources, including the signing of an affidavit declaring that the project will comply with the United States Secretary of the Interior's Standards for Rehabilitation for, among other things, the preservation of exterior facades of a building or structure that face a street, or receive federal or state historic rehabilitation tax credits, as specified. The bill would require an adaptive reuse project to meet specified affordability criteria. In this regard, the bill would require an adaptive reuse project for rental housing to include either 8% of the unit for very low income households and 5% of the units for extremely low income households or 15% of the units for lower income households. For an adaptive reuse project for owner-occupied housing, the bill would require the development to offer either 30% of the units at an affordable housing cost to moderate-income households or 15% of the units at an affordable housing cost to lower income households. For an adaptive reuse project including mixed uses, the bill would require at least one-half of the square footage of the adaptive reuse project to be dedicated to residential uses. The bill would prohibit an adaptive reuse project from being permitted in industrial zones that do not permit residential uses. The bill would provide, among other things relating to projects involving adaptive reuse, that parking is not required for the portion of a project consisting of a building subject to adaptive reuse that does not have existing onsite parking. The bill would authorize an adaptive reuse project subject to these provisions to include the development of new residential or mixed-use structures on undeveloped areas and parking areas located on the same parcel as the proposed repurposed building, or on the parcels adjacent to the proposed adaptive reuse project site if certain conditions are met. The bill would subject an adaptive reuse project approved by a local government pursuant to these provisions to specified labor standards, including certain labor prevailing wage, apprenticeship, skilled and training workforce, and health care expenditure requirements, and would require development proponents to certify compliance with certain labor standards under penalty of perjury. By requiring certain development proponents of an adaptive reuse project to sign an affidavit regarding the preservation of historic resources and requiring development proponents to certify compliance with certain labor standards under penalty of perjury, the bill would expand the crime of perjury and therefore impose a state-mandated local program. The bill would authorize a local government to adopt an ordinance, as specified, to, among other things, specify the process and requirements applicable to adaptive reuse projects, as specified, and would require an adaptive reuse project to comply with all objective planning standards found in the ordinance. The bill would specify that nothing in its provisions relating to adaptive reuse projects is intended to preempt the adoption and implementation of a local ordinance that provides alternative procedures and substantive requirements for adaptive reuse projects, provided that the local ordinance does not prohibit an applicant from electing to pursue an adaptive reuse project, as specified. The bill would require a local agency that has not adopted an above-described ordinance to ministerially without discretionary review approve or disapprove applications for a permit to create or serve an adaptive reuse project, as specified. The bill would, if a local government's planning director or equivalent position determines that the adaptive reuse project submitted pursuant to these provisions is consistent with the objective planning standards, require the local government to approve the adaptive reuse project within specified timeframes. The bill would require the local government staff or relevant local planning and permitting department, upon determining that the adaptive reuse project is in conflict with any of the objective planning standards, to provide the proponent written documentation of, among other things, which standard or standards the development conflicts with within specific timeframes. The bill would prohibit a local government from imposing any local development standard on any project that is an adaptive reuse that would require alteration of the existing building envelope, except as specified, whether or not the local government has adopted an ordinance. By requiring local governments to implement the streamlined, ministerial review process for adaptive reuse projects, the bill would impose a state-mandated local program. This bill would, except as specified, exempt an adaptive reuse project from all impact fees that are not reasonably related to the impacts resulting from the change of use of the site from nonresidential to residential or mixed use and would require any fees charged to be roughly proportional to the difference in impacts caused by the change of use. This bill would authorize a city or county, or city and county, commencing in the 2026–27 fiscal year, to establish an adaptive reuse investment incentive program to pay adaptive reuse investment incentive funds to the proponent of an adaptive reuse project approved pursuant to the streamlined, ministerial process described above for up to 30 consecutive fiscal years, as specified. The bill would define "adaptive reuse investment incentive funds" to mean an amount up to or equal to the amount of ad valorem property tax revenue allocated to the participating local agency from the taxation of that portion of the total assessed value of the real and personal property of an adaptive reuse project property that is in excess of the qualified adaptive reuse project property's valuation at the time of the proponent's initial request for funding. The bill would define various other terms for these purposes, and would make findings and declarations related to its provisions. The bill would make its provisions operative on July 1, 2026. (2) Existing law, the California Environmental Quality Act (CEQA) , requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the streamlined, ministerial review process described above, would exempt the approval of adaptive reuse projects subject to those processes from CEQA. The bill would also exempt specified findings regarding industrial uses and ordinances adopted to implement specified provisions from CEQA. (3) Existing law requires each county and 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 mandatory elements, a housing element. Existing law requires the Department of Housing and Community Development to notify a city, county, or city and county, and authorizes the department to notify the Attorney General, that a city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to that element, or any specified action or failure to act, does not substantially comply with the law as it pertains to housing elements or that any local government has taken an action in violation of certain housing laws. This bill would make corrections to a housing law cross-reference relating to the adaptive reuse project process established by the bill, thereby making a violation of that adaptive reuse project process by a city, county, or city and county subject to the above-described notification requirements. (4) 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. (5) This bill would incorporate additional changes to Section 65585 of the Government Code proposed by AB 650 to be operative only if this bill and AB 650 are enacted and this bill is enacted last. (6) 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 specified reasons.