Planning and zoning: housing element: regional housing needs allocation.

Former Section 1, which stated the Legislature's intent to enact future legislation assigning housing element revision deadlines based on smaller regional groupings and local jurisdiction size (as recommended by the California State Auditor in Report 2024-109), was removed entirely from the enrolled bill.

The exemption for the 7th housing element cycle was expanded: councils of governments with a housing element revision due date during calendar year 2029 are now also exempt from the new extended timelines (34 months for subregional entity formation and 31 months for COG allocation), in addition to those with due dates in 2027 or 2028.

Minor typo correction in Section 65584.04(e)(9)(B)(iii): 'housing element cycles' changed to 'housing element cycle' (singular).

The bill now amends Section 65588 of the Government Code in addition to Sections 65584.03, 65584.04, and 65584.05, expanding its reach to housing element revision schedules.

A new finding states that the bill's changes address a matter of statewide concern rather than a municipal affair, meaning they apply to all cities including charter cities. This is significant because it asserts state preemption over charter city home rule authority on housing element timing.

The exemption for the 7th housing element cycle is extended from councils of governments with revision due dates in calendar year 2027 or 2028 to those with due dates in 2027, 2028, or 2029, giving an additional year of transition time.

The 8th revision of housing elements for local governments previously on 5-year intervals is set with a specific deadline of June 30, 2032. The 9th and subsequent revisions are due 18 months after adoption of every 2nd regional transportation plan update.

For local governments within the Southern California Association of Governments, the 8th and subsequent housing element revisions must be adopted no later than 8 years after the deadline for the previous 8-year housing element.

Local governments within MPOs or RTPAs must now update their housing elements 18 months after the estimated adoption date (rather than actual adoption) of every 2nd regional transportation plan update, providing more planning certainty.

MPOs or RTPAs with an 8-year revision interval must now notify HCD and Caltrans of the estimated adoption date for their next regional transportation plan update at least 24 months before (previously 12 months), doubling the advance notice period.

The exception for the extended timelines (28 to 34 months for subregional entity formation, 25 to 31 months for COG allocation determination) now applies to councils of governments with housing element revision due dates in calendar year 2027 OR 2028, rather than only 2027. This means more regions will be excluded from the longer planning windows.

The bill's stated purpose was narrowed from amending Sections 65584.03, 65584.04, 65584.05, and 65585 to amending only Sections 65584.03, 65584.04, and 65584.05 of the Government Code.

All amendments to Government Code Section 65585 were removed. These would have required the department to provide written communications identifying specific deficiencies and providing specific analysis or text expected in non-compliant draft housing elements, required a 30-day review period for resubmitted changes, required legislative bodies to either incorporate the department's specific analysis or explain why they believe the draft substantially complies despite department findings, and required the department to identify specific laws not complied with and provide remedial text for adopted elements.

The entire amendment to Section 65588 was deleted. This section contained: (1) requirements for periodic review of housing elements, (2) the detailed revision schedule with specific deadlines for different regions (e.g., 18 months after regional transportation plan updates for most areas, 24 months for certain Southern California counties), (3) a freeze provision in subdivision (f) that prohibited any amendment to the Housing Element Law from applying during the 34 months before a scheduled update, and (4) definitions of 'planning period,' 'projection period,' and 'regional transportation plan update.'

The 'An act' clause was corrected to remove Section 65588 from the list of sections being amended, now listing only Sections 65584.03, 65584.04, 65584.05, and 65585.

The digest paragraph (former paragraph 4) that described the freeze provision - prohibiting amendments to Housing Element Law from applying during the 34 months before a scheduled update - was removed entirely.

The state-mandated local program justification was changed from 'imposing additional duties on local governments' to 'requiring local officials to provide a higher level of service,' which is a different legal standard under the California Constitution's reimbursement requirements.

A grammatical error in the university enrollment forecast provision was fixed: 'based on factors including, that include' was corrected to 'based on factors that include.'

Section renumbering occurred: former Section 7 (reimbursement) became Section 5 after the removal of Section 6 (the 65588 amendment).

All amendments to Section 65922 (Permit Streamlining Act) were removed. The earlier version made nonsubstantive changes to an exclusion for the State Energy Resources Development and Conservation Commission, but this is no longer part of the bill.

The deadline for cities and counties to form a subregional entity to allocate housing need was extended from 28 months to 34 months prior to the scheduled housing element update.

The deadline for councils of governments to determine the share of regional housing need assigned to each delegate subregion was extended from 25 months to 31 months prior to the scheduled revision.

The fiscal committee designation changed from 'no' to 'yes,' meaning the bill now requires a fiscal analysis by the Legislative Analyst's Office.

The state-mandated local program designation changed from 'no' to 'yes,' acknowledging that the bill imposes additional duties on local governments that trigger reimbursement obligations under the California Constitution.

Extends the deadline for cities and counties to form a subregional entity to allocate housing need from 28 months to 34 months before the scheduled housing element update, and extends the council of governments deadline to determine each subregion's share from 25 months to 31 months.

Extends the deadline for councils of governments to develop a proposed allocation methodology from at least 2 years before a scheduled revision to at least 2.5 years before, and extends the deadline to distribute a draft allocation plan from at least 1.5 years before to at least 2 years before.

Requires the Department of Housing and Community Development, when it finds a draft housing element does not substantially comply with law, to identify specific deficiencies and provide the exact analysis or text it expects the planning agency to include to remedy them. The legislative body must either include that specific text or adopt without changes and explain in written findings why it believes the draft complies despite the department's findings.

After adoption, if the department finds the housing element is not in substantial compliance, it must identify each specific subdivision of Section 65583 that is not met and provide the specific analysis or text that would bring the element into compliance.

Requires the Regents of the University of California (requested) and Trustees of the California State University (required) to provide enrollment change forecasts to councils of governments no more than 6 months before methodology development, based on cohort progression, admission standard improvements, and degree completion rates. Exempts Humboldt County Association of Governments, Lake Area Planning Council, and Mendocino Council of Governments from this requirement until the eighth housing element cycle.

Adds extensive new factors that councils of governments must consider in developing allocation methodology, including: low-wage jobs and housing affordability, land availability for development (considering alternative zoning beyond current ordinances), flood risk exclusions, agricultural preservation ballot measures, emergency evacuation capacity and wildfire risk, sea level rise, university enrollment forecasts from UC and CSU, loss of assisted housing units through mortgage prepayment or subsidy expiration, overcrowding rates, farmworker housing needs, homelessness, housing lost during declared states of emergency, greenhouse gas emissions targets, and sustainable communities strategy development patterns.

Prohibits any amendment to the Housing Element Law or any other law that changes its provisions from applying during the 34 months prior to a scheduled housing element update, effectively freezing the rules local governments must follow during their planning window.

The bill's scope expanded from a single nonsubstantive change to Section 65922 (Permit Streamlining Act exclusion) to amendments across Sections 65584.03, 65584.04, 65584.05, 65585, and 65588 of the Government Code, covering the entire housing element allocation and review process.

Imposes a state-mandated local program but provides that no reimbursement is required by the state for the costs imposed on local agencies.

Fiscal committee determination changed from 'no' to 'yes' and state-mandated local program determination changed from 'no' to 'yes,' reflecting the new obligations imposed on local governments.