1 Published April 7, 2025
No Net Loss and Right to Return to
Demolished Homes
No net loss and right to return policies prevent
development projects that require demolition of existing residential structures from reducing the overall housing stock and supply of affordable housing. These policies
require replacing all demolished units with units of
equivalent size and replacing demolished units meeting
certain criteria with units affordable to low-income
households. Additionally, previously displaced low-income tenants must be given relocation assistance and the right of first refusal to rent the new comparable units at the same rent as their prior unit(s).
Legal Context
What Does State Law Require?
The Housing Crisis Act of 2019, codified as California
Government Code Section 66300, prohibits a jurisdiction from approving a housing development that requires the demolition of housing units unless the new project creates at least as many units as will be demolished. Housing and non-residential developments must also replace all demolished occupied or vacant “protected units,” even if these units are unpermitted.
Generally, these must be replaced with deed-restricted
affordable housing. “Protected units” are defined as:
• Units deed-restricted for lower-income households within the past five years
• Units subject to rent control within the past five years • Units occupied by lower-income households within the
past five years or
• Units withdrawn from the rental market via Ellis Act
within the past 10 years.
The law also includes protections for existing tenants of units that will be demolished due to a housing or non-residential development:
• All existing tenants must be allowed to remain until six months before construction starts; and • Lower-income occupants (80% AMI or less adjusted for household size, as defined by HUD) are entitled to relocation benefits (paid before issuance of demolition, building, planning or other City permits for the project); and
At-A-Glance
RELEVANT STATE LAWS
Housing Crisis Act of 2019
POTENTIAL FUNDING
SOURCES
No cost. Relocation assistance
paid for by the landlord.
COST
Low
ADMINISTRATIVE BURDEN
Medium
Program design is generally
a low lift, but enforcement
is challenging and requires
significant staff time.
EXTRA CONSIDERATIONS
Challenge to enforce
Politically sensitive
WHICH P?
Protection
POTENTIAL PARTNERS
• Legal Aid Groups
• Tenant Advocacy
Organizations
OPTION FOR TOC POLICY
COMPLIANCE?
Yes!
NO NET LOSS AND RIGHT TO RETURN TO DEMOLISHED HOMES 2 • Lower-income occupants are entitled to the
option to rent or buy a comparable unit in
the new development at an affordable price.
Which Developments Does The Law
Apply To?
The Housing Crisis Act applies to housing
projects that will demolish existing residential
units. Additionally, certain requirements
apply to both housing and non-residential
development projects that would demolish
any “protected” units. Development projects
that would demolish any protected units must
provide replacement units with the same
number of bedrooms. These replacement units
must be at an affordable rent or sales price
to households of the same or lower income
category as that of the last household that
occupied the unit in the past five years. The
Housing Crisis Act of 2019 has a sunset date of
January 1, 2030.
How Can Jurisdictions Implement
Programs That Go Beyond State Law?
REMOVE THE SUNSET DATE: Jurisdictions
can provide no net loss and right of return
provisions currently outlined in the Housing
Crisis Act without the 2030 sunset date.
Jurisdictions must do this for TOC compliance
credit.
INCREASE RELOCATION ASSISTANCE: While
state law limits relocation assistance to lower-
income tenants, local policies can require
relocation assistance be provided to a broader
range of displaced tenants. Additionally,
local policies can require a larger amount of
financial assistance than is required under
state law. Some relocation assistance may not
be monetary; jurisdictions can also provide
displaced tenants with a Relocation Advisor to
support them with finding interim housing or
permanently relocating, with these services
paid for by the developer.
EXPAND PROTECTIONS: Jurisdictions can
require replacement of all unpermitted units,
even if the unpermitted unit was not occupied
by a lower-income tenant (and thus not a
“protected” unit).
ADVANCED NOTICE: Jurisdictions can require
that developers provide tenants with advanced
notice of impending demolition and their right
to return.
Program Design, Implementation and Evaluation Considerations Elements of the Program
• Definitions of program eligibility. This can
include which tenants are eligible.
• Notice requirements for developers. This
can include how many months of advance
notice must be given and what information
developers must include in the notice.
• Relocation benefits. This can include
access to a relocation advisor, assistance
with moving costs and tenant relocation
payments.
• Process for monitoring and enforcing
implementation. This can include requiring
the submission of a relocation plan
and outlining penalties for developer
noncompliance.
Program Design Considerations
Jurisdictions may want to consider the
following:
RENT STABILIZATION AND DEED RESTRICTIONS:
Existing rent-stabilized units occupied by
households who are not low-income can be
replaced by either deed-restricted affordable
units or rent-stabilized units without deed
restrictions, depending on what the jurisdiction
decides is more aligned with their needs.
RENT LEVELS: Establishing more precise income
requirements for replacement affordable units
to ensure deeper levels of affordability.
NO NET LOSS AND RIGHT TO RETURN TO DEMOLISHED HOMES 3 UNIT SIZE: Requiring replacement units be
increased in size in situations where existing
lower-income households were overcrowded.
REQUIRED NOTICE: Requiring that developers
provide tenants and the jurisdiction with
notice of proposed demolition at least 12
months in advance of the proposed vacate
date. The notice can include details on the
redevelopment and affordable replacement
units, the right to return and specific proposed
timelines. To ensure clarity and compliance,
the notice would be presented as a tenancy
termination notice and reviewed by the
jurisdiction before distribution, following
an established notification format and/or
coordinated by the city.
RELOCATION PLAN: Requiring that developers
submit a relocation plan that has been
developed in coordination with tenants and
knowledgeable community partners, prior to
project approval.
Program Implementation,
Administration and Enforcement
No net loss and right to return provisions are
generally implemented through ordinances, but
having a well developed system for education
and outreach, implementation assistance,
and monitoring/enforcement is critical.
Jurisdictions can establish a point of contact
for tenant assistance (e.g., city staff or a
relocation assistance consultant), resources for
legal services and information about relevant
community-based organizations.
In addition to noticing by landlords,
jurisdictions can work with partners to ensure
that tenants understand the law, their rights,
and the available resources. Jurisdictions can
also provide training so that planning, housing,
and building department staff understand
the law and its requirements. Additionally,
jurisdictions can put in place mechanisms for
proactive enforcement, rather than complaint-
based enforcement, and ensure developers who
don’t give notice, provide relocation assistance
and/or honor the tenants’ right of return face
repercussions.
TOC Policy Requirements: To be compliant
with TOC policy, jurisdictions must comply
with all the no net loss provisions in the
Housing Crisis Act with no sunset date, to
the extent permitted by state or federal
law. These provisions require replacing all
demolished units with units of equivalent
size and replacing demolished protected
units with units affordable to low-income
households.
Jurisdictions must also include all right of
return provisions in the Housing Crisis Act
with no sunset date, to the extent permitted
by state or federal law. These provisions
require providing displaced lower-income
tenants with relocation assistance and right
of first refusal to a comparable unit at an
affordable rent.
Program Evaluation
Jurisdictions can evaluate program
effectiveness and equity by analyzing data
on the number of units before and after unit
demolition, the percentage of tenants who
returned, and the affordability levels before
and after the unit demolition. Additionally,
program evaluations could include qualitative
data, such as documentation of the experience
of both tenants who were displaced and came
back and those who didn’t come back.
NO NET LOSS AND RIGHT TO RETURN TO DEMOLISHED HOMES 4 Complementary Policies
DEVELOPMENT CERTAINTY AND STREAMLINED APPROVAL
PROCESS: Make it easier for developers to replace
demolished units more quickly by limiting public hearings and ensuring priority review in the entitlement process.
TENANT RELOCATION ASSISTANCE: Require developers to
provide tenants whose units will be demolished or are being removed from the rental market with meaningful relocation assistance, for example, the cash equivalent of three months’ rent, based on the median monthly asking rent for a similar- sized unit.
TENANT ANTI-HARASSMENT PROTECTIONS: These
protections prohibit landlords from using threats or
intimidation to influence tenants to vacate prior to
demolition as a way to avoid providing relocation assistance and right to return.
Other Resources
EXAMPLES*
City of Mountain View -
Tenant Relocation
City of Berkeley -
Relocation Services Code
OTHER RESOURCES
HCD - Preserving Existing
Affordable Housing
City of Los Angeles -
Resident Protections
Ordinance
Metropolitan Transportation
Commission - Protection
Policy 2: No Net Loss
and Right to Return to
Demolished Homes
*Note that examples have
not been vetted for full
TOC Compliance.
This document is intended to provide general information and does not constitute legal advice. Additional facts, facts specific to a particular situation, or future developments may affect the subjects discussed in this document. Seek the advice of your jurisdiction’s legal counsel before acting or relying upon this information. For specific questions regarding TOC compliance, please reach out to [email protected].