3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 1/32 OCTOBER 31, 2023
California's 2024 Housing
Laws: What You Need to
Know
Expansion of Affordable Housing Streamlining and First Steps Toward Addressing CEQA Abuse Are Highlights of a Big Year in Housing Law
Holland & Knight Alert
Chelsea Maclean | Daniel R. Golub | Kevin J. Ashe | William E. Sterling | Deborah Brundy
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In 2023, the California Legislature enacted and extended significant housing streamlining laws – most, but not all, are limited to projects that pay prevailing wage for construction labor and contain significant amounts of Below Market Rate (BMR) housing.
The session also saw important signs of legislative frustration at California Environmental Quality Act (CEQA) abuse. A new law will limit localities' ability to refuse to certify an Environmental Impact Report (EIR) or confirm a CEQA
exemption for qualifying housing developments, and a new CEQA exemption applies to qualifying 100 percent affordable housing projects. The Legislature also reacted to the University of California, Berkeley "students are pollution" case by 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 2/32
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providing that noise generated by occupants and their guests is not a significant effect on the environment.
The Legislature further expanded the State Density Bonus Law, but limited the scope of the Surplus Lands Act – in ways that may increase the complexity of both statutes.
New laws will allow localities to permit Accessory Dwelling Units (ADUs) to be sold separately as condos and prohibit localities from imposing "owner occupancy" requirements on ADUs.
The 2023 California Legislative session, like the last
several, saw the enactment of a large number of
significant new housing production laws. (See Holland & Knight's previous annual recaps of California Housing
Laws in the final section below.) This Holland & Knight alert takes a closer look at some of the most significant housing laws that the Legislature passed and that Gov.
Gavin Newsom has signed into law, grouped into
following categories:
Streamlining:
SB 423 (extension and expansion of streamlined
ministerial approval law for affordable projects
consistent with objective zoning rules)
SB 4 (by-right approval for affordable housing on
land owned by religious organizations and higher
education institutions)
SB 684 (ministerial approval of up to 10-unit
housing projects on small sites)
AB 1490 (adaptive reuse for affordable housing)
AB 1114 and AB 281 (reforms to post-entitlement
permitting)
California Environmental Quality Act (CEQA):
AB 1633 (CEQA reform for infill housing)
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 3/32 AB 1307 (residential noise impacts)
AB 1449 (affordable housing exemption)
SB 406 (financial assistance exemption)
SB 91 (motel conversion exemption)
AB 356 (Dilapidated Building Refurbishment Act)
SB 149 (CEQA administrative record reform)
Density, Land Use and Planning:
AB 1287 (additional density bonuses for very low or
moderate income units)
SB 747 and AB 480 (amendments to scale back the
Surplus Land Act)
AB 821 (local agency obligation to resolve general
plan and zoning conflicts)
SB 272 (sea level rise planning in coastal
commission and bay conservation and
development commission jurisdiction)
AB 529 (building code updates for adaptive reuse
projects)
Accessory Dwelling Units (ADUs):
AB 1033 (ADUs sold separately as condos)
AB 976 (owner-occupancy requirements prohibited
beyond 2025)
AB 1332 (streamlined 30-day approval for
preapproved ADU plans)
Enforcement:
AB 434 (expanded Department of Housing and
Community Development (HCD) enforcement
authority)
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 4/32 AB 1485 (attorney general right to intervene in
housing enforcement suits)
Anti-Displacement and Affordable Housing:
SB 439 (motion to strike lawsuit challenging
affordable housing)
AB 1218 (replacement housing and relocation
benefit expansion)
AB 911 (notification and ownership requirements for
modifications to recorded covenants restricting
development of affordable housing)
SB 469 (exemptions from Article 34 of the California
Constitution for affordable housing projects
receiving specified funding)
ACA 1 (constitutional amendment to lower
threshold for bond measures)
SB 789 (constitutional amendments scheduled for
voter consideration at November election)
AB 812 (authorization of conditions of approval for
affordable artist housing)
Financing and Costs:
SB 253 (carbon emission disclosure)
AB 1319 (Bay Area Housing Finance Authority
authorizations to facilitate production and
preservation of affordable housing)
AB 835 (fire marshal to study safety of requirement
for apartments to have more than one staircase)
Parking:
AB 1308 (no increased minimum parking
requirements on single-family home renovations)
AB 1317 (unbundled parking for qualifying
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 5/32 residential properties)
AB 894 (shared parking)
Except where noted, the new laws take effect on Jan. 1, 2024.
Streamlining
SB 423 (Sen. Scott Wiener) – Extension and Expansion of Streamlined Ministerial Approval Law for Affordable
Projects Consistent with Objective Zoning Rules. SB 423 significantly expands, and extends the "sunset date" of, the streamlined ministerial approval law originally
created by SB 35 of 2017 (SB 35). Holland & Knight has
substantial experience advising both 100 percent
affordable developers and mixed-income developers
entitling projects on the basis of this law and litigating cases under SB 35. Holland & Knight was the first in
California to secure housing approval through litigation under SB 35, and the California Court of Appeal sided
with Holland & Knight clients in a landmark housing
case.
SB 35 provides a CEQA-exempt, time-limited ministerial
approval process (90-180 days, depending upon
whether the project has more or less than 150 units), for residential and mixed-use projects in the majority of
California jurisdictions that are not making sufficient progress toward the regional need for housing. To
qualify for this ministerial process, projects must comply with a locality's "objective" standards, meet a long list of qualifying criteria designed to capture "infill" sites, commit to paying "prevailing wage" (typically union)
rates for construction labor, and meet significant
affordable requirements (either 10 percent, 20 percent
or 50 percent of units at Below Market Rate (BMR) rents, depending upon a project's location and the local
jurisdiction's progress toward meeting its Regional
Housing Needs Allocation (RHNA)).
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 6/32 In addition to extending the sunset date of this law
from to 2026 to 2036, SB 423 expands the statute in
several ways, including:
Reduction in Labor Requirements. The law previously
applied a very costly "skilled and trained workforce"
labor requirement to many projects. Now, the "skilled
and trained workforce" has been removed except for
projects that are more than 85 feet in height – and
even then, only if a prime contractor receives at least three bids for construction work that can meet the
"skilled and trained workforce" requirement.
Prevailing wage remains required except for projects
of 10 or fewer units, and projects of more than 50
units are newly required to ensure contractors
provide specified apprenticeship training and
healthcare expenditures to workers.
Coastal Zone. SB 35 previously did not apply in the
coastal zone. As amended, the law will apply to areas
of the coastal zone that are zoned for multifamily
housing, unless the area is not subject to a certified
local coastal program or a certified land use plan, is
vulnerable to 5 feet of sea level rise, or is within 100 feet of a wetland or on prime agricultural land.
Applicability in the coastal zone does not go into
effect until Jan. 1, 2025.
Housing Element Noncompliance. Previously, the
only criteria that determined whether a jurisdiction
was subject to streamlining is the number of housing
permits the jurisdiction had issued relative to its
RHNA. After SB 423, a jurisdiction's failure to achieve an HCD-certified housing element will also make the
jurisdiction subject to SB 35 streamlining – creating
yet another negative consequence for failure to adopt
a legally compliant housing plan.
Flexibility for 100 Percent BMR Projects. Affordable
housing projects have often found that the specific
income targets required by state laws such as SB 35
do not match up well with the income levels required
by various federal, state or local funding programs. To meet this concern, 100 percent BMR projects can
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 7/32 qualify for streamlining as long as they charge a rent
that is consistent with the maximum rent levels
stipulated by the public program providing financing
for the development.
Hearing Required in Certain Areas. A public hearing
must be provided if the development is proposed in a
census tract designated as either a moderate
resource area, low resource area or an area of high
segregation and poverty by the California Tax Credit
Allocation Committee (CTCAC) and HCD.
Even as amended, SB 35 remains costly. But project
applicants should at least give streamlined processing a second look to see if the costs imposed are outweighed
by the benefits of a ministerial, CEQA-exempt approval
process.
SB 4 (Sen. Wiener) – By-Right Approval for Affordable
Housing on Land Owned by Religious Organizations
and Higher Education Institutions. SB 4 creates a "by
right," CEQA-exempt, time-limited (90-180 day) approval process closely modeled on SB 35 of 2017 and AB 2011 of 2022 for affordable housing projects (including
qualifying ground-floor commercial, childcare center
and community center uses) on land owned by religious
organizations and higher education institutions. Such a project can be entitled to approval even if the project is inconsistent with applicable local general plan and
zoning requirements. Instead, a project is entitled to a height of one story above applicable local requirements and to specified minimum residential densities of
between 10-40 dwelling units per acre, depending upon
the project's location.
To qualify for this process:
the development must be on land owned on or
before Jan. 1, 2024, by an institution of higher
education or a religious institution
the developer must be a local entity; a nonprofit
corporation, as specified; a developer that contracts
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developer that the religious or educational institution has contracted with before to construct housing or
other improvements
the housing must be deed-restricted housing
affordable to lower-income households, except that
up to 20 percent of the units may be for moderateincome households and 5 percent may be for staff of the educational or religious institution
projects of more than 10 units that are not a public
work must ensure construction workers are paid
"prevailing wage," unless otherwise provided in a
bona fide collective bargaining agreement; projects
of more than 50 units are required to ensure
contractors provide specified apprenticeship training
and healthcare expenditures to workers
the project site must meet a long list of qualifying
criteria – similar to those in SB 35 and AB 2011 –
designed to capture "infill" project locations that
avoid environmentally sensitive areas and avoid
demolition of existing housing
The law sunsets on Jan. 1, 2036. Affordable housing
developers should consider whether development
opportunities on sites owned by houses of worship or
educational organizations might make SB 4 a
potentially appealing avenue relative to SB 35 or AB 2011.
SB 684 (Sen. Anna Caballero) – Ministerial Approval of
Up to 10-Unit Housing Projects on Small Sites. In an
effort to meet the need for "missing-middle" housing
types that are not inherently expensive to build, SB 684 requires CEQA-exempt ministerial approval for up to 10
units of housing on qualifying multifamily infill sites of no more than 5 acres. Under the law:
Local governments must ministerially approve,
without discretionary review or a hearing, a parcel
map or a tentative and final map for a housing
development project that will result in 10 or fewer
parcels and 10 or fewer units, if the lot is no larger
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criteria, most designed to capture "infill" sites with
water and sewer supply that are not environmentally
sensitive and avoid demolishing existing housing.
Housing development projects on qualifying sites are
exempt from needing to comply with any minimum
requirement on the size, width, depth or dimensions
of an individual parcel other than a 600-foot
minimum parcel size. Qualifying projects are also
exempt from the requirement to form a homeowners'
association, except as required by the Davis-Sterling
Common Interest Development Act.
A local government must also approve, on a
ministerial basis, an application for a housing
development project on a lot subdivided by this law
and then issue a building permit also on a ministerial
basis. A locality may not apply any standards that
would preclude development at densities deemed
naturally suitable to lower-income household (10-30
units per acre, depending upon the jurisdiction), and
the locality is further limited from applying certain
setback, parking, floor area and other limitations as
specified in the statute.
SB 684 was originally written to be applicable in singlefamily residential zoning districts but was amended very late in the process to only apply to sites zoned for multifamily housing – to the disappointment of its
supporters. Despite this limitation in its scope, the law is notable for being one of few that provide a streamlined, CEQA-exempt approval process for housing without
requiring developers to commit to specified labor
standards or BMR housing requirements. Developers of
small subdivisions should determine whether a
potential site may be able to make use of the statute's ministerial approval process.
The primary operative provisions of the law do not take effect until July 1, 2024.
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 10/32 AB 1490 (Assembly Member Alex Lee) – Adaptive Reuse
for Affordable Housing. AB 1490 makes "adaptive reuse"
– retrofitting and repurposing of an existing building to create new residential units – an "allowable use" for
qualifying 100 percent affordable housing projects, even if such a use conflicts with local plans, zoning
ordinances or regulations. To qualify, an adaptive reuse project must meet criteria, including:
the development must be entirely within the existing
envelope of a residential building or a commercial
building that currently allows temporary dwelling or
occupancy (i.e., a hotel or motel)
all units (other than managers' units) must be
dedicated to lower-income households, with at least
50 percent dedicated to very-lower-income
households; home prices can be set at an "affordable
cost" pursuant to existing California Health and Safety Code definitions or at an affordable rent consistent
with rent limits established by the CTCAC
the site must be 75 percent surrounded by urban
uses or within one-half mile of a rail, bus rapid transit or ferry station, or the intersection of two bus routes with a frequency of service interval of 15 minutes or
less during peak periods; further, the development
cannot be on a site or adjoining a site where more
than one-third of square footage is devoted to
industrial uses
The law allows jurisdictions to impose objective design standards to the extent consistent with the law, as long as those restrictions do not limit maximum density or
require additional parking or open space or require
curing any preexisting deficit or conflict with existing standards. Local governments are must determine
whether a project meets its design guidelines and the
requirements of the law within 60 or 90 days,
depending upon whether the project has more or less
than 150 units. Failure to meet these deadlines results in the project being "deemed" to comply. The law also
requires jurisdictions to include affordable adaptive
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funding.
This law and AB 529 (discussed further below) only
make limited steps toward addressing the clear need to
facilitate residential conversions of nonresidential
properties. But the law may provide pathways for
affordable housing developers to make effective use of
hotel and motel properties without needing to seek
rezoning of the property.
AB 1114 (Assembly Member Matt Haney) and AB 281
(Assembly Member Tim Grayson) – Reforms to PostEntitlement Permitting. In 2022, the Legislature established enforceable timelines and procedures for
cities and counties when issuing ministerial postentitlement permits such as building in grading permits. (See Holland & Knight's previous alert,
"California's 2023 Housing Laws: What You Need to
Know," Oct. 10, 2022.) AB 1114 amends the law to provide that this process also applies to discretionary postentitlement permits and further provides that once a local agency determines that a post-entitlement permit
is compliant with applicable standards, the local agency shall not subject the permit to any appeals or additional hearing requirements. AB 281 requires special districts to comply with specified timeframes, similar to those
for cities and counties, when reviewing and approving
post-entitlement phase permit applications from
housing developers for service from the special district.
CEQA
AB 1633 (Assembly Member Phil Ting) – CEQA Reform
for Infill Housing. AB 1633 was inspired by the San
Francisco Board of Supervisors' vote to uphold a CEQA
appeal of a proposed 495-unit infill development
project. The legislation is the most direct reform in
recent years aiming to crack down on excessive CEQA
review practices that are weaponized against residential development.
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 12/32 Rather than amending CEQA directly, AB 1633 operates
by defining two new violations of the Housing
Accountability Act (HAA), which can expose jurisdictions to litigation and vulnerability to pay attorneys' fees and penalties. First, under AB 1633, it is now an HAA violation to refuse to make a CEQA exemption determination
when dealing with an AB 1633-protected project that is
entitled to a CEQA exemption. This addition is designed to prevent local governments from insisting on full
CEQA analysis when a project is entitled to bypass
CEQA. AB 1633 also creates a 90-day notice procedure,
whereby applicants who believe they are entitled to
CEQA exemptions may protest when local governments
proceed with CEQA review. If there is substantial
evidence that the project is entitled to a CEQA
exemption, then the agency has 90 days to make an
exemption determination. Failure to do so constitutes
an HAA violation.
Second, it is now an HAA violation for a local
government to hold a meeting at which an
Environmental Impact Report (EIR) or similar CEQA
document is considered, but decline to approve that
document, if there is substantial evidence to support
EIR certification and the project is protected by AB 1633.
This addition directly addresses the San Francisco
development project situation, wherein the Board of
Supervisors indicated they were seeking to disapprove
the project but avoided liability by technically only
rejecting certification of the project's EIR.
AB 1633 does not apply statewide. Instead, it applies to project sites that are within an urbanized area and that meet one of four requirements:
1. It is within one-half mile of a high-quality transit corridor or a major transit stop.
2. It is located in a very low vehicle travel area.
3. It is "proximal" to six or more amenities (bus stations or ferry terminals, grocery stores, parks, community
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4. It is adjoined on three sides by parcels with urban
uses (or 75 percent if not a four-sided site).
Further, the project must be at least 15 units per acre.
High and very high fire hazard severity zones are
excluded, and sites must also meet SB 35 criteria
designed to capture "infill" project locations. Beyond
this, however, there are no requirements to "use" AB
1633 (e.g., no labor or BMR housing requirements). The
law also provides cities with some protection against
having to pay CEQA petitioners' attorneys' fees if the
petitioner sues the city for approving project subject to AB 1633.
Although it remains to be seen how often the law can
be effectively invoked, the law makes important steps
toward making a CEQA exemptions something an
applicant can insist on – rather than something lead
agencies can simply decline to adopt at their
preference.
AB 1307 (Assembly Member Buffy Wicks) – Residential
Noise Impacts. AB 1307 is a direct reaction to the
University of California, Berkeley "students are pollution" case, holding that an EIR for UC-Berkeley's 2036-37
long-range development plan – and specifically the
university's immediate plan to build student housing on the site of "People's Park" – failed to assess potential noise impacts from loud student parties in residential
neighborhoods near the campus. The case has been
appealed to the California Supreme Court, which
granted review. In the meantime, AB 1307 specifies that, for residential projects, noise generated by occupants
and their guests is not a significant effect on the
environment. The law's author notes that the law will
reestablish existing precedent that minor noise
nuisances such as from human voices will be addressed
through local nuisance ordinances and not via CEQA. As
such, CEQA cannot be used to consider "people as
pollution."
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 14/32 Less broadly applicable, AB 1307 also provides that an
EIR prepared for a project proposed by a higher
education institution shall not be required to study offsite alternatives if 1) the residential or mixed-use housing project is located on a site that is no more than 5 acres and is substantially surrounded by urban uses
and 2) the residential mixed-use project has already
been evaluated in the EIR for the most recent longrange development plan for the applicable campus.
As an "urgency statute," the law took effect when signed into law on Sept. 7, 2023.
AB 1449 (Assembly Member David Alvarez) – Affordable
Housing Exemption. AB 1449 adds a new exemption not
only for the entitlement of qualifying affordable housing but also for the actions leading up to and following
project approval, including general plan amendments
and rezonings, the lease or sale of property and
financing decisions. The fact that the exemption also
applies to the actions leading up to a project helps
address the line of cases addressing when an action
becomes a “project” under CEQA, holding that a lead
agency's actions that commit an agency to a project
require CEQA review.
Such projects must be 100 percent low-income housing
projects (except for managers' units), meet prevailing
wage and other labor standards identified in AB 2011, be located in an infill location and meet a range of criteria intended to ensure the site has access to transit or other amenities. The qualifying criteria include a slightly more permissible definition of "infill" than other statutes
(requiring a site to be surrounded by urban uses on
three sides rather than 75 percent). It is also notable that the site location criteria can be met either by onehalf mile proximity to a high-quality transit corridor or a major transit stop or location in very low vehicle travel area (which is intended to capture areas that do not
have access to transit but otherwise have lower vehicle miles traveled averages than surrounding areas).
Another new option for meeting the location criteria
has been added for projects that are within one mile (or 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 15/32 two miles for a parcel in a rural area) of six or more
designated amenities (e.g., a grocery store, public park, community center, pharmacy, library or school).
This CEQA exemption sunsets on Jan. 1, 2033.
SB 406 (Sen. Dave Cortese) – Financial Assistance
Exemption. An existing CEQA exemption exempts HCD
and the California Housing Finance Agency (CalHFA)
actions providing financial assistance or insurance for affordable housing projects. SB 406 expands the
exemption to a local agency not acting as the lead
agency as long as the project receiving funding will be reviewed pursuant to CEQA by another public agency.
Similar to AB 1449, this exemption avoids any need for a public agency providing funding to conduct CEQA
review as such CEQA review will separately be
conducted by the lead agency.
SB 91 (Sen. Tom Umberg) – Motel Conversion
Exemption. SB 91 extends indefinitely the CEQA
exemption for projects that convert motels, hotels,
residential hotels or hostels to supportive or transitional housing that was otherwise set to expire in January
2025. In addition, SB 91 extends CEQA streamlining
provisions for "environmental leadership transit
projects" located within the County of Los Angeles that meet certain specified requirements.
AB 356 (Assembly Member Devon Mathis) – Dilapidated
Building Refurbishment Act. This law extends the
sunset date from 2024 until 2029 on an existing
provision that waives consideration of aesthetic impacts under CEQA for projects that refurbish, convert,
repurpose or replace an existing building and meet
certain criteria. The author stated that the purpose is to encourage beautification projects in disadvantaged
communities.
SB 149 (Sen. Caballero) – CEQA Administrative Record
Reform. Holland & Knight previously reported on the
package of laws intended to streamline infrastructure
processing and implement CEQA reform. Most relevant
to housing projects, the new law provides that a
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 16/32 petitioner bringing a CEQA lawsuit has 60 days to
prepare the administrative record of proceedings before the lead agency, and if they fail to do so, the agency can prepare the record at taxpayer expense (for public
agency projects) or at an applicant's expense (for
affordable housing projects, for example). Existing law requires parties who file CEQA lawsuits challenging
agency approvals of housing or other projects to either prepare the administrative record themselves (at their
expense) or pay to have the agency they have sued
prepare the record. Accordingly, this "reform" actually makes it much cheaper and easier for project
opponents to file CEQA lawsuits challenging projects.
The amendments also authorize a lead agency (at its
own cost or the real party in interest's cost) to opt to prepare the record without waiting for the petitioner to so do. This may lead to a faster administrative record
preparation process.
As budget laws, these laws took effect when signed this summer.
Density, Land Use and
Planning
AB 1287 (Assembly Member Alvarez) – Additional
Density Bonuses for Very-Low or Moderate Income
Units. This year's State Density Bonus Law amendments
provide benefits to projects that provide additional verylow or moderate income units. AB 1287 requires that a project maximize the production of very-low, low or
moderate units, as allowed by the current State Density Bonus Law (i.e., 15 percent very-low, 24 percent low or 44 percent moderate, which must be for-sale units) before
utilizing the bonuses in AB 1287. Where these
maximums are met, additional bonuses can be stacked
on top of the prior maximum bonus. As an example, if a
project includes 25 percent very-low income units, it can now achieve an 88.75 percent bonus by coupling the
prior maximum bonus of 50 percent with an additional
38.75 percent bonus awarded by AB 1287. Additionally, a project that includes 59 percent moderate for-sale units can achieve a 100 percent bonus by coupling the prior
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 17/32 maximum bonus of 50 percent with an additional 50
percent bonus granted by AB 1287.
Other amendments include:
Concessions and Incentives: The above-described
projects that exceed the prior maximum bonus tiers
are now eligible for four incentives or concessions.
The number of incentives or concessions for 100
percent affordable projects located within one-half
mile of a major transit stop or within a low vehicle
travel area in a designated area has also been
increased from four to five.
Documentation: The obligation for an applicant to
provide reasonable documentation in connection
with a request for incentives or concessions or
development standard waivers has been eliminated.
Maximum Density: AB 1287 removes language stating
that for purposes of determining a project's base
density, the greater density prevails if the density
allowed under the zoning ordinance is "inconsistent"
with a general or specific plan or specific plan. After this removal, the law now provides that the base
density for the State Density Bonus Law is the
greatest number of units allowed under the zoning
ordinance, specific plan or land use element of the
general plan – with no specific requirement that the
zoning must necessarily be "inconsistent" for this to
apply.
Nonprofit Corporation Eligibility: AB 1287 provides
additional specification of criteria for nonprofit
corporations that may purchase affordable for-sale
units.
SB 747 (Sen. Caballero) and AB 480 (Assembly Member
Ting) – Amendments to Scale Back the Surplus Land
Act (SLA). The SLA significantly limits the ability of local governments to dispose of surplus property for the
purpose of affordable housing development without
first proceeding with a noticing process. SB 747 and AB 480 are intended to significantly roll back amendments
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 18/32 to the SLA that were adopted in 2019 via AB 1486 (Ting) and were broadly reported to result in bureaucratic
delays. The full universe of this year's SLA amendments is beyond the scope of this alert, but the primary focus of the amendments is to add new exemptions and
clarifications to the exemptions from the SLA. Some of
the notable amendments include:
Leases: Clarifies that a lease less than 15 years or a
lease for property on which no development or
demolition will occur is exempt
Small Size: Increases the "small size" exemption for
sites up to one-half acre that are not contiguous to
land owned by a state or local agency used for open
space or affordable housing purposes
Affordable Housing: Eliminates the obligation to
conduct competitive bidding for qualifying affordable
housing projects
Third-Party Intermediary: Allows an agency to transfer
property to a third-party intermediary for a receiving
agency's use
Valid Legal Restrictions: Provides additional
clarifications on the types of valid legal restrictions that may qualify for an exemption
Transportation System: Allows agencies whose
mission is to supply the public with a transportation
system to transfer property for the sole purpose of
investment or generation of revenue
There are still other exemptions that apply to other
unique scenarios such as California public-use airports and community land trusts.
The new amendments also identify activities that may
be conducted prior to the obligation to issue a notice of availability under the SLA such as issuing a request for proposals in certain instances. Most scenarios are tied to specific exemptions and again require careful review.
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 19/32 Finally, a penalty for noncompliance with the SLA will
now be based on the final sales price of the land or the fair market value of the land at the time of the sale,
whichever is greater. Since land may be sold at less than fair market value, this provision tying the penalty to fair market value could increase the penalty amount in the
event of a violation.
While the intent of these amendments is to reduce
bureaucratic delays, a learning curve is anticipated to digest and implement the new provisions.
AB 821 (Assembly Member Grayson) – Local Agency
Obligation to Resolve General Plan and Zoning
Conflicts. AB 821 provides that if a local agency receives a development application for a project that is
consistent with the general plan but not the zoning, the agency must either: 1) amend the zoning ordinance
within 180 days from the receipt of the development
application or 2) process the application based on the
general plan standards and ignore inconsistent zoning
standards. AB 821 further provides a legal remedy for
challenging an agency that does not comply. This
provision does not apply to housing projects subject to the HAA, since the HAA already provides a mechanism
requiring approval of a project that is consistent with the general plan that is inconsistent with the zoning.
This law is intended to address the numerous instances
in which agencies adopt general plan updates but
corresponding zoning amendments never materialize.
SB 272 (Sen. John Laird) – Sea Level Rise Planning in
Coastal Commission and Bay Conservation and
Development Commission (BCDC). SB 272 requires sealevel rise planning as part of local coastal programs in the coastal zone and areas covered by the BCDC. By
2024, the California Coastal Commission (CCC) and
BCDC are required to establish guidelines for the
preparation of sea level rise plans under their respective jurisdictions, and all local governments must then
prepare plans by 2034. Implementation of SB 272
remains expressly contingent on an appropriation by
the Legislature in the annual budget or another statute. 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 20/32 AB 529 (Assembly Member Jesse Gabriel) – Building
Code Updates for Adaptive Reuse Projects. AB 529 was
one of the few laws to address the obvious need in the
post-COVID-19 era to facilitate conversion of office (or other use) buildings to residential. Rather than address entitlement processing of such projects, AB 529 made
minor changes to existing law. First, AB 529 adds
facilitation of the conversion projects (including the
adoption of reuse ordinances) to the list of examples of pro-housing policies that HCD may consider in
awarding grants to local governments. AB 529 also
requires HCD to convene a working group with various
state agencies to identify challenges and opportunities that may help support conversion projects. HCD must
issue a report by Dec. 31, 2025, of its findings and
thereafter research and consider proposing
amendments for adoption by the California Building
Standards Commission adaptive reuse building
standards in within each agency's respective authority
for the next code adoption cycles in 2025 and 2026.
Given the astronomical statistics regarding
underutilized office buildings, hopes and tensions
continue to run high that more significant conversion
laws will be adopted next year.
ADUs
AB 1033 (Assembly Member Ting) – ADUs Sold
Separately as Condos. State ADU law has historically
allowed local agencies to prohibit the separate sale or conveyances of ADUs from the primary dwelling. The
sole exception to that rule has been that qualified
nonprofits can sell or convey an ADU separately from
the primary residence to a qualified low-income buyer,
through the establishment of a tenancy in common.
The original intent behind this regime was to support
ADUs' role in adding rental unit stock throughout the
state as opposed to being a viable source of
homeownership. AB 1033 now authorizes (but does not
require) local agencies to adopt local ordinances
allowing ADUs to be conveyed as condominiums
separately from the primary dwelling. Condominium
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 21/32 projects approved under this legislation will remain
subject to the Subdivision Map Act and Davis-Stirling
Common Interest Development Act.
AB 976 (Assembly Member Ting) – Owner-Occupancy
Requirements Prohibited Beyond 2025. Current state
ADU law prohibits local agencies from imposing
"owner-occupancy" conditions on ADUs permitted
between Jan. 1, 2020, and Jan. 1, 2025. AB 976 extends
the prohibition indefinitely, meaning local agencies
cannot impose owner-occupancy conditions on ADU
projects permitted after Jan. 1, 2025. Local agencies are still required to impose owner-occupancy requirements
on Junior ADUs (JADU), which are defined as units that
are no more than 500 square feet, contained entirely
within a single-family residence and equipped with
separate or shared sanitation facilities.
AB 1332 (Assembly Member Juan Carrillo) – Streamlined
(30-Day) Review of Preapproved ADU Plans. Even prior
to the enactment of AB 1332, local agencies were
required to approve or deny a complete ADU
application within 60 days (including approvals and
sign-offs from all interagency departments, special
districts and utilities). AB 1332 creates an even more
streamlined approval process for locally "preapproved"
ADU designs. By Jan. 1, 2025, local agencies must
develop a program for the preapproval of ADU plans
whereby the local agency accepts ADU plan
submissions for preapproval. Once an ADU plan is
approved, local agencies are required to either approve or deny an ADU application utilizing a preapproved ADU
plan within 30 days. The bill also specifies that local agencies must maintain a website page with
preapproved ADU plans and the contact information of
companies offering preapproved ADU plans. Lastly, AB
1332 specifies that ADU plans approved by the local
agency or "other agencies within the state" (i.e., HCD) can be admitted into the local preapproval program.
While some cities such as San Jose have already
enjoyed success with preapproved ADU design
programs, such programs will now become mandatory
across the state.
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 22/32 Enforcement
AB 434 (Assembly Member Grayson) – Expanded HCD
Enforcement Authority. AB 434 significantly expands
the scope of HCD's enforcement authority over state
housing laws. AB 72 of 2017 granted HCD express
enforcement authority with respect to four statutes: the HAA, State Density Bonus Law, fair housing law and the
"no net loss" requirements for replacing housing
element sites that are not developed as projected.
Subsequent legislation broadened HCD's enforcement
authority to cover nine additional statutes, including
2017's SB 35, 2019's SB 330 and 2022's AB 2011.
AB 434 brings 13 more areas of law into HCD's
enforcement authority, including five statutes adopted
this year. Now, the following state housing laws are
enforceable by HCD: several provisions streamlining
approvals for ADUs, along with a provision allowing
certain ADUs to be sold separately from the primary
residence; several requirements of 2021's SB 9,
concerning ministerial processing of lot splits in singlefamily residential zones; 2022's SB 6, which allows residential development in certain commercial zones;
the so-called "five hearing rule" applicable to codecompliant residential projects; this year's SB 684, requiring ministerial approval of certain small
multifamily infill projects (discussed herein); this year's SB 4, concerning ministerial approval of affordable
housing on religious sites (discussed herein); and this year's AB 1218, addressing replacement of demolished
housing units (discussed herein).
Separately, AB 434 shortens the timeline for HCD to
review housing elements that have already been
adopted from 90 to 60 days.
AB 1485 (Assembly Member Haney) – Attorney General
Right to Intervene in Housing Enforcement Suits. Prior
to AB 1485, in order to intervene in housing-related
litigation brought by third parties, the California
Department of Justice was required to petition the
court for permission to participate in the litigation. This 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 23/32 process was both time-consuming and uncertain. AB
1485 now gives both the attorney general and HCD an
unconditional statutory right to intervene in cases
concerning the enforcement of housing laws.
Anti-Displacement and
Affordable Housing
SB 439 (Sen. Nancy Skinner) – Motion to Strike Lawsuit
Challenging Affordable Housing. SB 439 creates a new
procedural option for defending against litigation
challenging 100 percent affordable housing projects,
modeled on California's "anti-SLAPP" law that protects
defendants from lawsuits designed to chill political
participation and free speech. SB 439 creates a new
"special motion to strike" any portions of a pleading that challenge the approval or permitting of a 100 percent
affordable project. If the plaintiff challenging the project does not establish a probability of prevailing in the
litigation, the party filing the special motion to strike is entitled to recover their attorney's fees and costs.
AB 1218 (Assembly Member Josh Lowenthal) – Revisions
to Requirements for Replacement Units and Relocation
Benefits Applicable to Demolition of Protected Housing.
This law creates a new article within the Government
Code for replacement housing and relocation benefit
requirements that were previously contained within the
Housing Crisis Act of 2019. The revised provisions
expand replacement requirements to nonresidential
developments. Development projects that demolish
vacant or occupied protected units or that are located
on sites where protected units were demolished in the
last five years will be required to replace all protected units that currently exist or were demolished after
January 2020. Only industrial projects in zones that
prohibit residential uses, which demolish residential
units that are nonconforming uses, are exempt from
the law's replacement requirement. Nonresidential
projects may satisfy the replacement requirement by
contracting with a third party to develop the units,
which may be located offsite within the jurisdiction of the project.
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 24/32 The law's amendments include a number of
clarifications that aim to address confusion arising from implementation of the Housing Crisis Act of 2019's
replacement unit and relocation benefit requirements.
In particular, the law clarifies that notice of construction must be given six months in advance and that
relocation benefits provided by private developers must be equivalent to those provided by public entities. Other amendments define the terms "housing development
project" and "very low income households" through
cross-references to existing definitions in the
Government Code and Health and Safety Code.
Although the clarifications resolve some ongoing issues, the clarifications do not confirm when occupants
qualify as "existing" for purposes of relocation benefits, nor do the amendments address how an occupant's
income level should be documented. Early coordination
with the jurisdiction and use of a relocation consultant may help to resolve these open questions, but the law
does not yet provide clarity on these important aspects of implementing the law's demolition protections.
AB 911 (Assembly Member Pilar Schiavo) – Notification
and Ownership Requirements for Modifications to
Recorded Covenants Restricting Development of
Affordable Housing. Two years ago, AB 721 authorized
owners of qualifying affordable housing developments
to remove restrictive covenants that limit residential
development. AB 911 amends AB 721 to clarify notice
requirements and ownership qualifications for
modifications and to specify timelines for lawsuits
challenging modifications.
As amended by AB 911, the law requires a county to
notify a property owner who has submitted a restrictive covenant modification request of the county counsel's
determination regarding the modification request. This
notification then allows (but does not require) the
owner to inform interested parties – such as a party with an interest in the covenant that is being redacted – that the county has approved the removal of the covenant. If such notice is provided, it triggers a 35-day statute of 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 25/32 limitations for any party receiving such notice to file a suit to challenge the removal of the covenant.
AB 911 confirms that any record title owner of the
property, any beneficial owner of a property or any
person with site control (such a right to acquire the
property under an option agreement, purchase and sale
agreement, or similar agreement) may request that the
county redact a covenant. However, an owner may not
actually record a modification documents until they
close escrow and receive title.
SB 469 (Sen. Ben Allen) – Exemptions from Article 34 of the California Constitution for Affordable Housing
Projects Receiving Specified Funding. Article 34 of the California Constitution requires voter approval prior to a jurisdiction's development of a state- or locally financed or funded "low-rent housing project." In advance of
ballot measures seeking to repeal Article 34, SB 469
adds projects that receive federal and state grants or tax credits to the list of projects exempt from Article 34. The law specifies that the definition of "low-rent housing
project" does not apply to rural and urban residential
projects receiving funding in the following forms: 1)
funding from HCD, CalHFA and Business, Consumer
Services and Housing (BCSH) pursuant to the ZenovichMoscone-Chacon Housing and Home Financing Act, 2) grants from the Affordable Housing and Sustainable
Communities program and 3) allocations of federal or
state low-income housing tax credits from the CTCAC.
Exempting affordable housing projects receiving
funding from these sources from Article 34's
requirements removes a layer of uncertainty and delay
resulting from voter approval from the development of
these housing projects without risking state funding for local jurisdictions that is tied to compliance with Article
34. Assembly Constitutional Amendment (ACA) 1 (Assembly Member Cecilia Aguiar-Curry) – Constitutional
Amendment to Lower Voter Threshold for Affordable
Housing General Obligation Bonds. If passed, ACA 1
would lower the voter threshold required for approval of 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 26/32 certain special taxes and General Obligation (GO) bonds for improvements to and acquisition or construction of
affordable housing, permanent supportive housing and
public infrastructure projects. The current (two-thirds) supermajority required to pass such measures would be
lowered to 55 percent. Proceeds from the bonds may
only be spent on the authorized improvements, subject
to an annual performance audit and oversight by a
citizens' committee. Funded projects must service the
approving jurisdiction, and local officials are prohibited from bidding on contracts for the project if the official voted to place a measure to fund the project on the
ballot.
SB 789 (Sen. Allen) – Two Constitutional Amendments
Facilitating Affordable Housing Set for the General
Election Ballot. SB 789 consolidates two constitutional amendments set for special election on March 5, 2024,
with the general election on Nov. 5, 2024: 1) Senate
Constitutional Amendment No. 2 would repeal Article
34 of the California Constitution (see above), and 2) ACA 1 would lower the voter threshold for bonds to fund
affordable housing, public infrastructure and
permanent supportive housing (see above).
AB 812 (Assembly Member Tasha Boerner) –
Authorization of Conditions of Approval for Affordable
Artist Housing. AB 218 authorizes local governments to
impose as a condition of approval a reservation of up to 10 percent of a development's affordable housing units
for "artist housing," as defined, within one-half mile of a designated state or local cultural district. When signing the law, Gov. Newsom explained that he would be
"disinclined" to sign bills providing "statutory carve outs for specific professions" in the future.
Financing and Costs
SB 253 (Sen. Wiener) – Carbon Emission Disclosure. The
law will require the California Air Resources Board
(CARB), on or before Jan. 1, 2025, to develop and adopt regulations requiring companies that do business in
California to disclose to the state's emissions registry 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 27/32 information. It remains unclear how this requirement
will be clarified and enforced, but given the large
number of different products used to build a home and
the complexity of determining how each such product
impacts greenhouse gas (GHG) emissions throughout
the product's entire life cycle, the process of tracking and ensuring compliance with this law may impose
significant new costs on homebuilding.
AB 1319 (Assembly Member Wicks) – Bay Area Regional
Housing Finance Authority Authorizations to Facilitate
Production and Preservation of Affordable Housing. AB
1319 amends the San Francisco Bay Area Regional
Housing Finance Act (Act), expanding the Act's scope
and the governing powers of the Bay Area Housing
Finance Authority and Governing Board (Board). The
amendments expand the Act's definition of "affordable
housing" to include rental housing and revise the
definition of "authority revenues" to include special
taxes, other charges, investment income, income from
operation and ownership of property and loan
repayments. Other key provisions increase the
membership total of the Act's advisory committee,
specifying that members should have construction
workforce and finance experience. Significantly, Board
actions funding affordable housing and technical
assistance are exempt from CEQA.
AB 835 (Assembly Member Lee) – Fire Marshal to Study
Safety of Requirement for Apartments to Have More
than One Staircase. AB 835 requires the state fire
marshal to analyze and report to the Legislature on
standards for "single-exit, single stairway apartment
houses." The report will assess "fire and life safety" issues with respect to the requirement to have more than one
exit in apartment buildings with three or more stories
and at least two dwelling units. Proponents of the bill contend that California's current requirement of two
exits in certain apartment buildings limits the location and design of potential housing and contributes to
California's ongoing housing crisis.
Parking
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 28/32 AB 1308 (Assembly Member Sharon Quirk-Silva) – No
Increased Minimum Parking Requirements on SingleFamily Home Renovations. AB 1308 prohibits public agencies from increasing minimum parking
requirements applicable to single-family residences as a condition of approval for projects remodeling,
renovating or adding to a single-family residence, as
long as the project does not cause the residence to
exceed applicable zoning regulations (e.g., floor area
ratio, lot coverage and height). The Legislature declared the prohibition necessary because the imposition of
minimum parking standards "can increase the cost of
housing, limit the number of available units" and "lead to an oversupply of parking spaces."
AB 1317 (Assembly Member Carrillo) – Unbundled
Parking for Qualifying Residential Properties. Requires owners of "qualifying residential properties" in certain counties to unbundle the cost of parking from the total rent for the housing unit. The law defines "unbundled
parking" as the practice of selling or leasing parking
spaces separate from the lease of the residential
property. To be subject to this law, the property must:
have received a certificate of occupancy on or after
Jan. 1, 2025
include 16 or more residential units
be located in Alameda, Fresno, Los Angeles, Riverside,
Sacramento, San Bernardino, San Joaquin, Santa
Clara, Shasta or Ventura counties
Tenants of a qualifying residential property have a right of first refusal to parking spaces built for their property, which if not exercised may be leased by the property
owner to other residential users onsite or offsite "on a month-to-month basis."
Affordable housing that is 100 percent deed-restricted
or financed through tax credits for low-income housing
or tax-exempt bonds, as well as properties designed
with a garage that is "functionally a part of the property 3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 29/32 or unit" (e.g., townhomes and row houses), are exempt
from the unbundling requirements.
AB 894 (Assembly Member Laura Friedman) – Shared
Parking. Local agencies generally establish parking
standards for various land uses or properties in their
zoning ordinances. AB 894 mandates local agencies
allow shared parking plans if applicable parking is
"underutilized" and the entities proposing shared
parking provide an agreement meeting certain criteria
and an explanation of the benefits of the proposal.
Parking is "underutilized" if at least 20 percent of
parking spaces in a development are vacant during the
time that the parking will be shared. For projects
receiving public funding after June 30, 2024, local
agencies and developers must analyze the possibility of shared parking, but local agencies may not "compel
private parties to enter into a shared parking
agreement." Local agencies must count shared parking
spaces identified in a shared parking agreement toward
local parking requirements for existing or proposed
uses and development if the parking meets certain
locational requirements. Shared parking agreements
that include a parking analysis based on specified
"peer-reviewed methodologies" and that ensure longterm parking or include provisions for periodic review by the local agency must be approved. Approval of shared
parking agreements that do not include this analysis is discretionary. Local agencies may not condition
approval on the remedying of existing parking deficits
nor "withhold approval" because the shared plan will
reduce the parking included in the originally proposed
use. Provisions of AB 894 may not reduce parking
spaces needed to meet accessibility or electric vehicle requirements.
Conclusion
For more information about how to maximize these and
other state housing laws to advance the approval of
your project, contact the authors or your Holland &
Knight West Coast Land Use & Environmental Practice
Group attorney.
3/4/24, 2:54 PM California's 2024 Housing Laws: What You Need to Know | Insights | Holland & Knight https://www.hklaw.com/en/insights/publications/2023/10/californias-2024-housing-laws-what-you-need-to-know 30/32 Previous California Housing
Law Alerts
A Closer Look at California's New Housing
Production Laws, Dec. 6, 2017
California's 2019 Housing Laws: What You Need to
Know, Oct. 8, 2018
California's 2020 Housing Laws: What You Need to
Know, Oct. 18, 2019
California's 2021 Housing Laws: What You Need to
Know, Nov. 4, 2020
California's 2022 Housing Laws: What You Need to
Know, Oct. 13, 2021
California's 2023 Housing Laws: What You Need to
Know, Oct. 10, 2022
Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.
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