Housing

(1) Existing law establishes the Homeless Housing, Assistance, and Prevention program, administered by the Interagency Council on Homelessness, with respect to rounds 1 to 5, inclusive, of the program, and the Department of Housing and Community Development, with respect to round 6 of the program, for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. This bill would establish round 7 of the program. The bill would authorize the Department of Finance to augment Item 2240-001-0001 of the Budget Act of 2025 by $8,000,000 from the General Fund to prepare to administer round 7 of the program, as specified. The bill would require the Department of Finance to provide notification of any augmentation within 10 days to the Joint Legislative Budget Committee. The bill would, effective July 1, 2026, appropriate $500,000,000, as specified, provided that these funds be disbursed in accordance with specified requirements, including that funds from this appropriation be disbursed to a city, county, tribe, or continuum of care for round 7 of the program after a declaration by the director of the department, in consultation with the Director of Finance, that the department has substantially completed its initial disbursement of round 6 funds to the city, county, tribe, or continuum of care, and that the city, county, tribe, or continuum of care has obligated at least 50% of its total round 6 award. The bill would state the intent of the Legislature to enact future legislation that specifies the parameters for round 7 of the program, as specified. (2) 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 (EIR) 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 requires the Office of Land Use and Climate Innovation to prepare and develop proposed guidelines for the implementation of CEQA by public agencies and requires the Secretary of the Natural Resources Agency to certify and adopt those proposed guidelines. CEQA requires those adopted guidelines to include a list of classes of projects that have been determined not to have a significant effect on the environment and exempts those classes of projects from CEQA, commonly known as categorical exemptions. CEQA requires the guidelines to include criteria for public agencies to follow in determining whether or not a proposed project may have a significant effect on the environment, and requires the criteria to require a finding that a project may have a significant effect on the environment if one or more of specified conditions exist. This bill would exempt from CEQA, except as provided, a rezoning that implements the schedule of actions contained in an approved housing element, as specified. The bill would require the lead agency to be responsible for determining whether a project is exempt from CEQA. By requiring a lead agency to determine the applicability of the exemption and by increasing the duties of a lead agency, the bill would impose a state-mandated local program. This bill would, for the approval of a proposed project that would otherwise be exempt from CEQA pursuant to a statutory exemption, or specified categorical exemptions adopted before January 1, 2026, but for a single condition, as specified, limit the application of CEQA to the effects upon the environment that are caused solely by that single condition. For these projects, the bill would only require the initial study or EIR to examine those effects that the lead agency determines, based upon substantial evidence in the record, are caused solely by the single condition that makes the proposed project ineligible for a statutory or categorical exemption. The bill would provide that these provisions do not apply to, among other things, a project that includes a distribution center, as defined, oil and gas infrastructure, as defined, or a project located on specified natural and protected lands, as defined. This bill would exempt from CEQA specified new agricultural employee housing projects and projects consisting exclusively of the repair or maintenance of an existing farmworker housing project. Existing law exempts from CEQA, until January 1, 2028, specified projects that, among other things, do not affect wetlands or sensitive habitats, undertaken by a public agency or private entity that primarily benefit a small disadvantaged community water system or a state small water system, as provided. Existing law defines various terms for these purposes. This bill would extend the applicability of that exemption until January 1, 2032, and would expand the definition of a project for purposes of the exemption to include a project to provide sewer service to a disadvantaged community served by one or more inadequate sewage treatment systems, as defined. This bill would, until January 1, 2030, exempt from CEQA specified projects for a community water system that receives funding from specified sources that does not otherwise include any construction activities if the project results in long-term net benefits to climate resiliency, biodiversity, and sensitive species recovery and includes procedures and ongoing management for the protection of the environment. This bill would exempt from CEQA wildfire risk reduction projects, including, among other things, projects for prescribed fire, defensible space clearance, and fuel breaks. Existing law exempts from CEQA specified projects that consist of linear broadband deployment in a right-of-way if the project meets specified conditions. This bill would expand that exemption to include a right-of-way of a local street or road. This bill would exempt from CEQA updates to the state's climate adaptation strategy, as provided. This bill would exempt from CEQA any activity or approval necessary for or incidental to planning, design, site acquisition, construction, operation, or maintenance of public park or nonmotorized recreational trail facilities funded by a specified source. This bill would exempt from CEQA, except when located on natural and protected lands, as defined, a project that consists exclusively of a day care center, as specified, a project that consists exclusively of a federally qualified health center or a rural health clinic, as specified, a project that consists exclusively of a nonprofit food bank or food pantry, as specified, and a project that consists exclusively of a facility for advanced manufacturing, as specified. This bill would exempt from CEQA a project that consists of the development, construction, or operation of a heavy maintenance facility or other maintenance facility for electrically powered high-speed rail, as defined, if specified conditions are met. The bill would exempt from CEQA a project that consists of the development, construction, or modification of a proposed passenger rail station, or design changes to a passenger rail station, for the purpose of serving electrically powered high-speed rail, if specified conditions are met. Because a lead agency would be required to determine the applicability of some of the above-described exemptions, the bill would impose a state-mandated local program. (3) Existing law, the Administrative Procedure Act, sets forth the requirements for the adoption, publication, review, and implementation of regulations by state agencies. This bill would require the office, on or before July 1, 2027, to map the eligible urban infill sites within every urbanized area or urban cluster in the state, as provided. The bill would require the office to develop a definition of and metrics for identifying an eligible urban infill site, as provided. The bill would require the office, at least 120 days before initial adoption of a map of eligible urban infill sites, to transmit a copy of the draft map or revision to the board of supervisors of each county and to the city council of each city in which any portion of the mapped area is located. The bill would authorize a city, county, or city and county to submit comments and proposed corrections and would require the office to consider those comments or proposed corrections and revise the draft map as appropriate. The bill would require the office to publish the draft map on its internet website for at least 45 days, conduct at least one public meeting to present the draft map, and receive public comments, as provided. The bill would authorize the office to amend any portion of the map, as provided. This bill would exempt the adoption or amendment of a map of eligible urban infill sites and the development of the definition of and metrics for identifying an eligible urban infill site from the Administrative Procedure Act. Existing law limits the application of CEQA to the approval of an infill project, as defined, to the effects on the environment that are specific to the project or to the project site and were not addressed as significant effects in the prior EIR or where substantial new information shows the effects will be more significant than described in the prior EIR, as provided. Existing law requires the office to prepare, develop, and transmit to the Natural Resources Agency for certification and adoption guidelines to implement this provision. This bill would, on or before January 1, 2026, and at least once every 2 years thereafter, require the guidelines to be updated to address any rigid requirements, lack of clarity in vague terminology, and the potential for excessive exposure to frivolous litigation over lead agency determinations, as specified. (4) CEQA requires an action or proceeding to attack, review, set aside, void, or annul certain acts or decisions of a public agency to be commenced according to specified processes, including that at the time that the action or proceeding is filed, the plaintiff or petitioner is required to file a request that the respondent public agency prepare the record of proceedings relating to the subject of the action or proceeding, and requires the record of proceedings to include specified items and materials, including, among other things, all internal agency communications, including staff notes and memoranda related to the project or to compliance with CEQA, but excluding communications that are of a logistical nature, as specified. This bill would, except for a project that includes a distribution center or oil and gas infrastructure, exclude staff notes and internal agency communications from the record of proceedings, as provided. (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 no reimbursement is required by this act for a specified reason. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Existing law creates a housing authority in each county or city, which functions upon the adoption of a specified resolution by the relevant governing body. Existing law authorizes these housing authorities, within their jurisdictions, to construct, reconstruct, improve, alter, or repair all or part of any housing project. Existing law establishes various programs that provide housing assistance. This bill would enact the Social Housing Act and would create the California Housing Authority as an independent state body, the mission of which would be to ensure that social housing developments that are produced and acquired align with the goals of eliminating the gap between housing production and regional housing needs assessment targets and preserving affordable housing. The bill would prescribe a definition of social housing that would describe, in addition to housing owned by the authority, housing owned by other entities, as specified, provided that all social housing developed or authorized by the authority would be owned by the authority. This bill would prescribe the composition of the California Housing Authority Board, which would govern the authority, and which would be composed of appointed members and members who would be elected by residents of social housing developments, as specified. The bill would set forth the powers and duties of the authority and the board, including the requirement that the authority and the board annually prepare and submit a business plan and related information to the Governor and Legislature, as specified. The bill would also require the board to provide for regular audits of the authority's accounts and records, as specified. The bill would require the authority to seek to achieve revenue neutrality, as defined, and would require the authority to seek to recuperate the cost of development and operations over the life of its properties through mechanisms that maximize the number of Californians who can be housed without experiencing rent burden. This bill would require the authority to prioritize the development of specified property, including vacant parcels and parcels near transit, and would establish a process for the annual determination of required social housing units. Under the bill, social housing would accommodate a mix of household income ranges and would provide specified protections for residents, who would have the right to participate in the operation and management of the units in which they reside. This bill would require the California Housing Authority to employ 2 leasing models in creating social housing, referred to as the rental model and the ownership model, and would specify the characteristics of both models. Under the rental model, the authority would extend a one-year lease to individuals who commit to a minimum of one year of residence and would require the authority to set rents, as specified. Under the ownership model, the authority would extend a 99-year lease, in the form of a limited equity arrangement, as defined, to individuals who commit to a minimum 5-year term of residence, and would authorize the authority to act as a lender for residents. The bill would specify how the units may be sold and transferred. The bill would establish eligibility requirements for social housing residents and would provide for the selection of residents by lottery, as specified, provided that people who may have been displaced from a property as part of its development would be granted a preference for occupancy. The bill, among other things, would require the authority to accept a local jurisdiction's preference for a project parcel if specified conditions are met. This bill would establish the Social Housing Revolving Loan Fund within the State Treasury to provide, upon appropriation by the Legislature, zero-interest loans for the purposes of constructing housing to accommodate a mix of household incomes. The bill would declare the intent of the Legislature to enact subsequent legislation to provide financing for the activities of the authority through the issuance of general obligation bonds. The bill would authorize the authority to issue revenue bonds, as specified.