Housing

Existing law, the Planning and Zoning Law, among other things, provides for the creation by ordinance, or by ministerial approval if the local agency has not adopted an ordinance, of an accessory dwelling unit (ADU) in accordance with specified standards and conditions. Existing law requires fees charged for the construction of ADUs to be determined in accordance with specified provisions of the Mitigation Fee Act. Existing law prohibits a local agency, special district, or water corporation from imposing any impact fee upon the development of an ADU that has 750 square feet of interior livable space or less, and requires any impact fees charged for an ADU that has more than 750 square feet of interior livable space to be charged proportionately in relation to the square footage of the primary dwelling unit. This bill would require the charge for certain accessory dwelling units to be based only on the area in excess of 750 square feet of interior livable space. By changing the duties of local agencies with regard to calculating fees for ADUs, the bill would impose a state-mandated local program. 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. 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.

The Permit Streamlining Act, among other things, requires public agencies to approve or disapprove of a development project within certain timeframes, as specified. The act requires public agencies to compile one or more lists that specify in detail the information that will be required from any applicant for a development project. The act requires a public agency, upon its determination that an application for a development project is incomplete, to include a list and a thorough description of the specific information needed to complete the application. This bill would provide that for the purposes of the Permit Streamlining Act, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision adopted or implemented by a public agency, as defined, if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity, except as specified. By imposing additional duties on local agencies, this bill would impose a state-mandated local program. 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. 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.

The Planning and Zoning Law requires cities and counties to prepare, adopt, and amend general plans and elements of those general plans, as specified. After the legislative body has adopted all or part of a general plan, the law requires the planning agency to provide by April 1 of each year an annual report to specified entities that includes certain information, including the status of the plan and progress of its implementation. This bill would require the planning agency to include in that report, beginning with the report due by April 1, 2028, the number of temporary emergency shelter beds and the number of permanent housing units serving those experiencing or exiting homelessness in the jurisdiction in each of specified categories. By requiring planning agencies to include additional information in these annual reports, 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, 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 establishes the Department of Housing and Community Development (department) and, pursuant to the Governor's Reorganization Plan No. 1 of 2025, which became effective on July 5, 2025, transfers the department to the California Housing and Homelessness Agency, effective July 1, 2026, for purposes of carrying out state housing policies and programs. Existing law, commonly referred to as the Surplus Land Act, prescribes requirements for the disposal of surplus land by a local agency, as defined, and requires, except as provided, a local agency disposing of surplus land to comply with certain notice requirements before disposing of the land or participating in negotiations to dispose of the land with a prospective transferee. As part of these procedures, existing law requires that the local agency send a notice of availability to housing sponsors, as defined, that have notified the department of their interest in surplus land, as specified. This bill would require the department to establish a dedicated social housing coordinator to lead social housing strategy and implementation. In leading social housing strategy and implementation, the bill would require the dedicated social housing coordinator to, among other things, inventory and prioritize surplus public land suitable for social housing development. The bill would define "social housing development" as housing developed pursuant to the bill's provisions that is owned by a public entity, provides housing affordable to a mix of household income levels, and preserves long-term affordability. The bill would require the dedicated social housing coordinator to compile findings for social housing strategy and implementation, as specified, and post the findings on the department's internet website. The bill would require the department, by January 1, 2028, to submit a report to the Legislature with actionable recommendations based on the social housing strategy and implementation program findings, as described above.

Existing law provides that in a civil action brought by a plaintiff to challenge a housing development project that meets or exceeds the requirements for low- or moderate-income housing, a defendant may seek an order requiring the plaintiff to furnish an undertaking as security for costs and damages that may be incurred by the defendant if the bringing of the action would result in preventing or delaying the project, as specified. Existing law limits the liability of the plaintiff who must furnish the undertaking to $500,000. Existing law also permits a defendant in a civil action challenging the approval or permitting of a priority housing development project, as defined, to bring a special motion to strike the pleading. Existing law requires the court to deny the motion to strike if the court determines, based on the pleadings, affidavits, and administrative record if applicable, that the plaintiff has established a probability of prevailing on the claim. This bill would increase the above-referenced liability limit to $1,000,000. The bill would also generally apply the above provisions to priority care developments, as defined, that provide supportive housing or other housing assistance in connection with behavioral health services and other specified purposes. This bill would incorporate additional changes to Section 529.2 of the Code of Civil Procedure proposed by SB 916 to be operative only if this bill and SB 916 are enacted and this bill is enacted last.

Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, including the Multifamily Housing Program, pursuant to which the department provides assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects, as provided. This bill would establish the Affordable Housing Risk Reduction Program, administered by the department, to provide technical assistance and supportive resources to affordable housing providers to help them mitigate risk in their portfolio and secure more affordable insurance options. The bill would require the department to develop technical assistance to support affordable housing providers, and would authorize the department and third-party consultants to provide both individual technical assistance to affordable housing providers and develop technical assistance tools that can be made broadly accessible to those providers.

Existing law establishes the Department of Housing and Community Development and requires it to administer various programs intended to promote the development of housing, as specified, pursuant to which the department provides financial assistance in the form of deferred payment loans to pay for the eligible costs of development of specified types of housing projects. Existing law sets forth various general powers of the department in implementing these programs, including authorizing the department to enter into long-term contracts or agreements of up to 30 years for the purpose of servicing loans or grants or enforcing regulatory agreements or other security documents. This bill would permit the department to, subject to prescribed requirements, authorize the transfer of the department residual receipts share or excess reserves, as defined, from one rental housing development to another rental housing development with the same owner, as specified.

Existing law establishes the Department of Housing and Community Development in the Business, Consumer Services, and Housing Agency. Existing law, the Governor's Reorganization Plan No. 1 of 2025 (GRP) , which became effective on July 5, 2025, transfers the Department of Housing and Community Development to the California Housing and Homelessness Agency, which the GRP also establishes, as of July 1, 2026. Existing law makes the department responsible for administering various housing programs throughout the state, including, among others, the Multifamily Housing Program and the California Emergency Solutions Grants Program. Existing law, upon appropriation, authorizes the department to make either or both loans and grants to rehabilitate, capitalize operating subsidy reserves for, and extend the long-term affordability of department-funded housing projects that have an affordability restriction that has expired, that have an affordability restriction with a remaining term of less than 10 years, or are otherwise at risk for conversion, as provided. This bill would establish the Community Anti-Displacement and Preservation Program for purposes of funding the acquisition and rehabilitation of unrestricted housing and attaching long-term affordability restrictions on the housing, while safeguarding against the displacement of current residents. The bill would require the department to issue a request for qualification to select a private sector entity or consortium to manage the program for a period of 5 years. The bill would require the department to grant prescribed funds to the program manager to implement the program and the program manager to make loans or grants to eligible borrowers, as defined, based on underwriting guidelines approved by the department. The bill would authorize the department to issue program funds to regional housing entities, as defined, upon request through a solicitation or other process determined by the department, for purposes of allowing the regional housing entity to use the moneys to issue loans or grants to eligible borrowers within its jurisdiction in accordance with the bill's provisions and department regulations. The bill would require the department to adopt regulations for the operation of the program on or before July 1, 2028, and would exempt the adoption of regulations by the department for these purposes from the Administrative Procedure Act. This bill would apply specified tenant protections to projects funded by the program and would require the department to develop technical assistance and capacity building for the development and ongoing operation of projects funded pursuant to the program, as specified. This bill would establish the Community Anti-Displacement and Preservation Fund in the State Treasury. The bill would make moneys available to the department for purposes of the program, upon appropriation by the Legislature. The bill would set forth requirements for the use of moneys in the fund.

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, until January 1, 2033, exempts from its requirements certain actions for affordable housing projects that meet specified requirements, including confirmation by a public agency that, among other things, the project site satisfies specified requirements and a vacant project site does not contain tribal cultural resources that could be affected by the development that were found pursuant to a consultation and the effects of which cannot be mitigated, as provided. This bill would extend the operation of the above-described exemption to January 1, 2037, and would expand the exemption to also include a public university or public college housing project, as defined, that meets specified requirements. Because the bill would extend the operation of the exemption and would increase duties on a lead agency related to the expansion of this exemption, 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.

Existing law, subject to an appropriation in the annual Budget Act, requires the Department of Housing and Community Development to provide, under the Transitional Housing Program, funding to counties for allocation to child welfare services agencies to help young adults who are 18 to 24 years of age, inclusive, secure and maintain housing, with priority given to young adults formerly in the state's foster care or probation systems. Existing law, subject to an appropriation in the annual Budget Act, also requires the department to allocate funding to counties under the Housing Navigation and Maintenance Program to help young adults who are 18 to 24 years of age, inclusive, secure and maintain housing, with priority given to young adults currently or formerly in the foster care system. This bill would extend the age of eligibility for the Housing Navigation and Maintenance Program to young adults who are 18 to 28 years of age, inclusive, and would, instead, give priority to nonminor dependents and young adults formerly in the state's foster care or probation system, as defined. The bill would specify the eligible uses of the funding allocated to a county child welfare agency under the Housing Navigation and Maintenance Program. Existing law requires a child welfare agency that accepts any distribution of money under either program to report certain data to the department on an annual basis, including specified information relating to the number of homeless youth served and the number of former or current foster youth served, as defined. This bill would revise those reporting requirements to instead require information about the number of young adults served, including the number of young adults formerly in the state's foster care or probation system, as defined, and would require additional information to be reported under the Housing Navigation and Maintenance Program related to housing vouchers, as specified.