8/19/2026
1 RiversideCA.gov1
Housing and Homelessness CommitteeAugust 31, 2026CALIFORNIA 2026 HOUSING LEGISLATION COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT RiversideCA.gov2
1. The twin crises of housing affordability and homelessness persista) High land and development costsb) Rapid sales and rental price increasesc) Neighborhood oppositiond) Regulatory constraintse) Environmental regulationsf) Intra-state migration2. This remains a priority for both the Governor and the Legislature.a) 39 housing-related bills – signed into law September 2025BACKGROUND 8/19/2026
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BACKGROUNDNUMBER OF BILLSCATEGORY – IMPACT TO CITY15Low17Moderate 7High39TOTALHOUSING LEGISLATION PASSED INTO LAW IN 2026 RiversideCA.gov4
Impact to CityDescriptionBillNo.LowExpedites judicial review of housing development project denials.SB 8081 LowReforms housing element law litigation.SB 7862 LowMakes state density bonus law benefits inapplicable to hotel portions of mixed-use projects.AB 873 LowImposes state density bonus law limits on commercial floor area increases for commercial portions of mixed-use projects.SB 924 LowExpands streamlining for educational agency projects.AB 10215 LowExpands streamlining for farmworker housing.AB 4576 LowMakes Housing Accountability Act (HAA) protections inapplicable to hotel portions of mixed-use projects.SB 8387 LowExtends AB 2011 (of 2022) to student campus development zones.AB 8938LOW IMPACT 8/19/2026
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Impact to CityDescriptionBillNo.LowCreates California Coastal Commission streamlining for student housing.AB 3579 LowImposes additional processing protections for onsite emergency shelterservices.SB 34010LowCreates Regional Housing Needs Allocation (RHNA) credit for Tribalhousing development.SB 50711LowAmends the process for selling low-income housing tax credits (LIHTCs).AB 48012LowStreamlines coastal development permit approvals for ADUs located inthe coastal zone.AB 46213LowMakes new liquidity available for California FAIR Plan Association.AB 22614LowOverrides local zoning limitations to allow greater heights and densitiesfor residential development near transit stops. Currently, this bill is notapplicable to the City, as there are not enough rail stations to qualify.However, this bill could become high-impact in the future if subsequentlegislation extends its applicability.SB 7915LOW IMPACT RiversideCA.gov6
Impact to CityDescriptionBillNo.ModerateEnhances fines and penalties against local governments for violating housing reform laws.AB 7121 ModerateRequires that cities or counties with a population of 150,000 or more persons to make a centralized online application portal available on its internet website to applicants for housing development projects for housing projects by January 1, 2030.AB 9202 ModerateRequires agencies and local agency formation commissions (LAFCOs) to publish lists of information required of housing projects online.SB 4893 ModerateShortens responsible agency shot-clock for housing approvals.AB 10074 ModerateEstablishes a post-entitlement permit approval shot-clock and authorizes applicants to retain private plan checkers for small residential projects.AB 2535 ModerateImposes shot-clock for state agency post-entitlement permits.AB 3016 ModerateImposes residential permit inspection timelines.AB 13087MODERATE IMPACT 8/19/2026
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Impact to CityDescriptionBillNo.ModerateExpands streamlining for adaptive reuse projects.AB 5078 ModerateEnhances requirements for housing element constraints analysis.AB 6109 ModerateImproves alignment between RHNA and regional transportation plan/sustainable communities strategy (RTP/SCS) planning.AB 127510ModerateExpands "prohousing" designation for "policies that keep people housed."SB 26211ModerateEnhances reporting requirements for demolished units.AB 67012ModerateExpands the ability of developers to eliminate restrictive covenants that prohibit converting commercial property to residential use.AB 105013ModerateExpands limits on vehicular traffic impact fees for housing projects that limit parking and are near transit and amenities.SB 35814MODERATE IMPACT RiversideCA.gov8
Impact to CityDescriptionBillNo.ModerateRedefines "affordable rent" in affordable housing programs.AB 152915ModerateRequires 10-day approvals for temporary structures.AB 81816ModerateStreamlined redevelopment of structures destroyed in a disaster.SB 62517MODERATE IMPACT 8/19/2026
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HIGH IMPACT – ADUs, DUPLEXES, AND LOT SPLITS
•SB 9, SB 542, AB 1154:AccessoryDwelling Units and JuniorAccessory Dwelling Units•AB 1061:Urban Lot Splits –Historical Resources RiversideCA.gov10
POLICY DIRECTION: SB 9, SB 543, AB 1154Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADUs)WHEN THEY APPLY•January 1, 2026WHAT THEY DO•Add penalties for not submitting local ADU ordinance to HCD within 60 days•Clarifies development standards and definitions•Allows additional combinations of detached and converted ADUs and JADUs•Establishes a 15-day shot-clock for ADU approvals •Limits owner occupancy requirements on JADUsWHAT IT MEANS FOR RIVERSIDE•State legislation on ADUs changes significantly year-to-year, resulting in the City’s ADU ordinance conflicting with State Law and HCD regulatory guidance•Staff recommends repealing the existing ADU ordinance and replacing it with a simple reference to State Law and the HCD Handbook 8/19/2026
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HIGH IMPACT: AB 1061Urban Lot Splits – Historical ResourcesWHEN IT APPLIES•January 1, 2026WHAT IT DOES•Streamlines lot splits and duplexes in historic districts, as long as development does not alter or demolish an existing historic structure WHAT IT MEANS FOR RIVERSIDE•Existing law restricts duplexes and small-scale lot splits, permissible under SB 9, within historic districts•This bill allows SB-9 to be used within historic districts, allowing additional homes to be built in historic neighborhoods RiversideCA.gov12
HIGH IMPACT – CEQA
•AB 130:Housing – Infillexemptions•SB 158:Public Resources – Shot-clock approvals•SB 131:Land Use – ConstrainedCEQA review 8/19/2026
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HIGH IMPACT: AB 130, SB 158, AND SB 131Infill Housing and Shot-Clock Approvals WHEN THEY APPLY•July 1, 2025WHAT THEY DO•AB 130 Exempts qualifying “infill” housing-rich projects from CEQA, with no wage standard requirements up to 85 feet in height. •AB 130 imposes a 30-day deadline for agencies to act to approve or disapprove qualifying projects, and SB 158 clarifies the shot-clock approval. •SB 131 constrains CEQA review for projects that narrowly fail to qualify for the above exemptions. WHAT IT MEANS FOR RIVERSIDE•Many developable properties within the City would qualify as “infill” sites under the provisions of these laws. The City could see an increase in housing applications on such properties.
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POLICY DIRECTION: SB 684 AND SB 1123Urban Lot SplitsWHEN THEY APPLY•July 1, 2025WHAT THEY DO•SB 684 (2023) streamlined approvals for the construction of up to 10 homes on existing parcels in multi-family zones. •It also amended the Subdivision Map Act to make it easier to split such parcels into 10 individual lots.•SB 1123 (2024) extended the same provisions to existing vacant parcels in single-family. WHAT IT MEANS FOR RIVERSIDE•Current legislation explicitly gives Cities the authority to decide on combining ADUs and JADUs with SB 1123 projects. Staff seek policy direction regarding whether ADUs and/or JADUs should be allowed in combination with these projects.•In certain circumstances, the approval of an SB 1123 project results in leftover “remainder parcels.” These remainder parcels are often smaller than what Zoning requires in terms of lot depth, area, coverage, or similar standards and present development difficulties. Staff seek policy direction regarding whether to adopt special development standards and/or exceptions for such remainder lots. 8/19/2026
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POLICY DIRECTION: AB 1033Separate Sale or Conveyance of Accessory Dwelling UnitsWHEN IT APPLIES•January 1, 2024WHAT IT DOES•Authorizes local agencies to adopt an ordinance allowing the separate sale of the primary dwelling unit and accessory dwelling unit(s) as condominiums WHAT IT MEANS FOR RIVERSIDE•Existing law indicates that ADUs may not be sold separately from the primary residence. •AB 1033 would allow the City to adopt an ordinance allowing the separate sale of ADUs as separate properties (condominiums)•Adopting such an ordinance could help the City meet regional housing goals RiversideCA.gov16
POLICY DIRECTION SUMMARYPOLICY DIRECTION: ADU ORDINANCE, SEPARATE SALE OR CONVEYANCE OF ADUsADU Direction:•Staff recommends repealing the existing ADU ordinance and replacing it with a simple reference to State Law and the HCD Handbook •Staff seek policy direction regarding whether to adopt a local ordinance allowing the separate sale of primary and accessory dwelling units as condominiums, per AB 1033.Urban Lot Splits Direction: •Staff seek policy direction regarding whether ADUs and/or JADUs should be allowed in combination with SB 1123 projects.•Staff seek policy direction regarding whether to adopt special development standards and/or exceptions for remainder lots resulting from SB 1123 projects. 8/19/2026
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That the Housing and Homelessness Committee:1. Provide direction on the aforementioned policy considerations; 2. Receive and file the staff report on the California Legislature’s 2026 Housing Bills; and3. Direct Staff to present an update to City Council.RECOMMENDATIONS