CALIFORNIA LEGISLATURE—2025-26 REGULAR SESSION
ASSEMBLY BILL No. 507
Introduced by Assembly Member Haney
February 10, 2025
An act to add Chapter 9 (commencing with Section 51299) to Part 1 of Division 1 of Title 5 of, and to add Article 11.5 (commencing with Section 65658) to Chapter 3 of Division 1 of Title 7 of, the Government Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
AB 507, as introduced, Haney. Adaptive reuse: streamlining:
incentives.
(1) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ninisterial approval process not subiect to a conditional use permit, il he development satisfies certain obiective planning standards, includins that the development is a multifamily housing development that contains two or more residential units.
This bill would deem an adaptive reuse project a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process if the project meets specified requirements, subject to specified exceptions. In this regard, an adaptive reuse project, in order to qualify for the streamlined, ministerial review process, would be required to be proposed for an existing building that is less than 50 years old or meets certain requirements regarding the preservation of 99 AB 507 — 2 —
historic resources, including the signing of an affidavit declaring that the project will comply with the United States Secretary of the Interior's Standards for Rehabilitation for, among other things, the preservation ot exterior tacades of a building that face a street, or receive federal or state historic rehabilitation tax credits, as specified. The bill would require an adaptive reuse project to meet specified affordability criteria.
In this regard, the bill would require an adaptive reuse project for rental housing to include either 8% of the unit for very low income households and 5% of the units for extremely low income households or 15% of the units for lower income households. For an adaptive reuse project for owner-occupied housing, the bill would require the development to offer either 30% of the units at an affordable housing cost to moderate-income households or 15% of the units at an affordable housing cost to lower income households. For an adaptive reuse project including mixed uses, the bill would require at least one-half of the square footage of the adaptive reuse project to be dedicated to residential The bill would provide, among other things relating to projects involving adaptive reuse, that parking is not required for the portion of a project consisting of a building subject to adaptive reuse that does not have existing onsite parking. The bill would authorize an adaptive reuse project subject to these provisions to include the development of new residential or mixed-use structures on undeveloped areas and parking areas located on the same parcel as the proposed repurposed building, or on the parcels adjacent to the proposed adaptive reuse project site if certain conditions are met.
The bill would authorize a local government to adopt an ordinance, as specified, to, among other things, specify the process and requirements applicable to adaptive reuse projects, as specified, and would require an adaptive reuse project to comply with all objective planning standards found in the ordinance. The bill would specify that nothing in its provisions relating to adaptive reuse projects is intended to preempt the adoption and implementation of a local ordinance that provides alternative procedures and substantive requirements for adaptive reuse projects, provided that the local ordinance does not rohibit an applicant from electing to pursue an adaptive reuse proiec specifier
The bill would require a local agency that has not adopted an above-described ordinance to ministerially without discretionary review approve or disapprove applications for a permit to create or serve an 99 -3- AB 507
adaptive reuse project, as specified. The bill would, if a local government's planning director or equivalent position determines that the adaptive reuse project submitted pursuant to these provisions is consistent with the objective planning standards, require the local government to approve the adaptive reuse project within specified timeframes. The bill would require the local government staff or relevant local planning and permitting department, upon determining that the adaptive reuse project is in conflict with any of the objective planning standards, to provide the proponent written documentation of, among other things, which standard or standards the development conflicts with within specific timeframes. The bill would prohibit a local government from imposing any local development standard on any project that is an adaptive reuse that would require alteration of the existing building envelope, except as specified, whether or not the local government has adopted an ordinance. By requiring local governments to implement the streamlined, ministerial review process for adaptive reuse projects, the bill would impose a state-mandated local program.
This bill would, except as specified, exempt an adaptive reuse project rom all impact tees that are not reasonably related to the impact esulting from the change of use of the site from nonresidential t residential or mixed use and would require any fees charged to be roughly proportional to the difference in impacts caused by the change his bill would authorize a city or county, or city and count ammencing in the 2026-27 fiscal vear. to establish an adantive reus investment incentive program to pay adaptive reuse investment incentive funds to the proponent of an adaptive reuse project approved pursuant to the streamlined, ministerial process described above for up to 30 consecutive fiscal years, as specified. The bill would define "adaptive reuse investment incentive funds" to mean an amount up to or equal to the amount of ad valorem property tax revenue allocated to the participating local agency from the taxation of that portion of the total assessed value of the real and personal property of an adaptive reuse property's valuation at the time of the proponent's initial request fo requires a lead agency, as defined, to prepare, or cause to be prepared, 99 AB 507 - 4 -
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. CEQA does not apply to the approval of ministerial projects.
This bill, by establishing the streamlined, ministerial review process described above, would exempt the approval of adaptive reuse projects subject to those processes from CEQA. The bill would also exempt specified findings regarding industrial uses and ordinances adopted to implement specified provisions from CEQA.
(3) 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. (4) 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 specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. The Legislature finds and declares all of the following:
3 (a) Converting vacant commercial space into residential housing, 4 through adaptive reuse, could reduce underutilized and vacant buildings that have been decreasing in value, thereby helping to stabilize the commercial real estate market and filling those spaces with more valuable tax-generating uses.
8 (b) Adaptive reuse projects can increase activity and foot traffic 9 in neighborhoods across the state, which helps support local 10 businesses and enhance the cultural life of cities and towns. 11 (c) Adaptive reuse projects create new construction jobs and 12 preserve historic structures.
13 (d) Adaptive reuse projects are more environmentally friendly 14 than new construction by repurposing existing materials, reducing 15 transportation emissions, and preserving embodied carbon. 16 (e) New housing construction, at all affordability levels, can 17 help to mitigate, and eventually reverse, the statewide housing 18 shortage.
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1 SEC. 2. Chapter 9 (commencing with Section 51299) is added 2 to Part 1 of Division 1 of Title 5 of the Government Code, to read:
3 4 CHAPTER 9. ADAPTIVE REUSE INVESTMENT INCENTIVE
5 PROGRAM
6 7 51299. It is the intent of the Legislature in enacting this chapter 8 to provide cities and counties with opportunities to adaptively 9 reuse existing buildings, such as office buildings, in order to 10 facilitate their conversion to housing and mixed uses. 11 51299.1. For purposes of this chapter:
12 (a) "Adaptive reuse investment incentive funds" means, with 13 respect to a qualified adaptive reuse project property for a relevant 14 fiscal year, an amount up to or equal to the amount of ad valorem 15 property tax revenue allocated to the partıcıpatıng local agency, 16 excluding the revenue transfers required by Sections 97.2 and 97.3 17 ofthe Revenue and Taxation Code. from the taxation of that portior 18 of the total assessed value of the real and personal property of ar 19 adaptive reuse project property that is in excess of the qualified 20 adaptive reuse project property's valuation at the time of the proponent's initial request for funding.
22 (b) "Program" means an adaptive reuse investment incentive 23 program established pursuant to Section 51299.2.
24 (c) (1) "Proponent" means a party or parties that meet all of 25 the following criteria:
26 (A) The party is named in the application for a permit to 27 construct a qualified adaptive reuse project submitted to the city 28 or county.
29 (B) The party will be the fee owner of the qualified adaptive 30 reuse project property upon the completion of that development. 31 (2) If a proponent that is receiving adaptive reuse investment 32 incentive amounts subsequently leases the qualified adaptive reuse 33 project property to another party, the lease may provide for the 34 payment to that lessee of any portion of adaptive reuse investment 35 incentive funds. A lessee that receives any portion of adaptive 36 reuse investment incentive funds shall also be considered 37 roponent for the purposes of this chapter.
38 (d) "Qualified adaptive reuse project property" means an 39 adaptive reuse project proposed pursuant to • Article 11.5 99 AB 507 -6-
1 (commencing with Section 65658) of Chapter 3 of Division 1 of 2 Title 7 that is located within the city or county.
3 51299.2. (a) Commencing in the 2026-27 fiscal year, the governing body of a city or county, or city and county, may, by 5 ordinance or resolution, establish an adaptive reuse investment 6 incentive program pursuant to this chapter.
(b) (1) A city or county, or city and county, that establishes a program shall, upon the approval by a majority of the entire 9 membership of its governing body of a written request therefor, 10 pay adaptive reuse investment incentive funds to the proponent of 11| a qualified adaptive reuse project property to subsidize the 12 affordable housing units, as required pursuant to Article 11.5 13 (commencing with Section 65658) of Chapter 3 of Division 1 of 14 Title 7, for up to 30 consecutive fiscal years. Nothing in this 15 paragraph shall prohibit a city or county, or city and county, from 16 paying adaptive reuse investment incentive funds to a proponent 17 pursuant to this paragraph for a period of fewer than 30 years. 18 (2) A request for the payment of adaptive reuse investment incentive funds shall be filed by a proponent in writing with the 20 governing body of the city or county in the time and manner 21 established by that governing body.
22 (c) After a city or county, or city and county, approves a request 23 for the payment of adaptive reuse investment incentive funds, 24 ayment ot adaptive reuse investment incentive funds shall begi 25 vith the first fiscal vear that commences after the qualified adaptiv 26 reuse property is issued a certificate of occupancy. 27 1299.3. A city or special district may pay to the city or county 28 r city and county, an amount equal to the amount of ad valorer 29 property tax revenue allocated to that city or special district, but 30 not the actual allocation, derived from the taxation of that portior 31 of the total assessed value of that real property that is in excess of 32 the property's valuation at the time of the proponent's initial 33 request for funding, for the purpose of subsidizing the affordable 34 housing units required pursuant to Article 11.5 (commencing with 35 Section 65658) of Chapter 3 of Division 1 of Title 7. 36 SEC. 3. Article 11.5 (commencing with Section 65658) 1S 37 added to Chapter 3 of Division 1 of Title 7 of the Government 38 Code, to read:
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Article 11.5. Office to Housing Conversion Act
65658. This article may be cited as the Office to Housing Conversion Act.
5 65658.1. For purposes of this article:
6 (a) (1) "Adaptive reuse project" means the retrofitting and 7 repurposing of an existing building to create new residential or 8 mixed uses including office conversion projects.
9 (2) "Adaptive reuse project" shall not include any of the 10 following:
11 (A) The retrofitting and repurposing of any industrial use, unless 12 the planning director or equivalent position finds. based on 13 substantial evidence in the record, that the building is no longer 14 economically viable for industrial use or uses. A finding described 15 in this subparagraph that a building for industrial use is no longer 16 economically viable shall not be considered a "project" under the 17 California Environmental Quality Act (Division 13 (commencing 18 with Section 21000) of the Public Resources Code.
19 (B) The retrofitting and repurposing of any hotels, or any 20 mixed-use buildings that contain hotel use, except if they have 21 been discontinued for a minimum of five years from the date on 22 which this article becomes operative.
23 (b) "Adjacent portion of the project" means the portion of the 24 project located on a site adjacent to and attached to the proposed 25 repurposed existing building, including on the same parcel as the 26 proposed repurposed existing building.
27 (c) "Broadly applicable housing affordability requirement" 28 means a local ordinance or other regulation that requires a 29 minimum percentage of affordable units and that applies to a 30 variety of housing development types or entitlement pathways. 31 (d) "Impact fee" means any fee imposed pursuant to Chapter 5 32 (commencing with Section 66000).
33 (e) "Industrial use" means utilities, manufacturing, transportation 34 storage and maintenance facilities.
35 other use that is a source that issues to perming uses, andric. 36 as defined in Section 39025 of the Health and Satety Code 37 pursuant to Division 26 (commencing with Section 39000) of th 38 Health and Safety Code or the federal Clean Air Act (42 U.S.C. 39 Sec. 7401 et seq.). "Industrial use" does not include any of the 40 following:
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1 (1) Power substations or utility conveyances such as power 2 lines, broadband wires, and pipes.
3 (2) A use where the only source permitted by a district is an emergency backup generator.
5 (3) Self-storage for the residents of a building.
6 (f) "Historical resource" means the same as defined in 7 subdivision (i) of Section 5020.1 of the Public Resources Code, 8 or a resource listed in the California Register of Historical 9 Resources as described in Section 5024.1 of the Public Resources 10 Code.
11 (g) "Local affordable housing requirement" means either of the 12 following:
13 (1) A local government requirement that a housing development 14 project include a certain percentage of units affordable to, and 15 occupied by, extremely low, very low, lower, or moderate-income 16 households as a condition of development of residential units. 17 (2) A local government requirement allowing a housing 18 development project to be a use by right if the project includes a 19 certain percentage of units affordable to, and occupied by, 20 extremely low, very low, lower, or moderate-income households 21 as a condition of development of residential units.
22 (h) "Local government" means a city, including a charter city, 23 a county, including a charter county, or a city and county, including 24 a charter city and county.
25 (i) "Mixed use" means residential uses combined with at least 26 one other land use, but not including any industrial use. 27 (i) "Office conversion project" means the conversion of a 28 building used for office purposes or a vacant office building into 29 residential dwelling units.
30 (k) "Persons and families of low or moderate income" means 31 the same as defined in Section 50093 of the Health and Safety 32 Code.
33 (D) "Phase I environmental assessment" means the same as 34 defined in Section 78090 of the Health and Safety Code. (m) "Phase II environmental assessment" means the same as 36 defined in Section 25403 of the Health and Safety Code. 37 (n) "Preliminary endangerment assessment" means the same as 38 defined in Section 78095 of the Health and Safety Code. 39 (o) "Residential uses" includes, but is not limited to, housing 40 units, dormitories, boarding houses, group housing, , and other 99 - 9 - AB 507
1 congregate residential uses. "Residential uses" does not include 2 prisons or jails.
3 (p) "Urban uses" has the same meaning as defined in Section 4 65912.101.
5 (9) "Use by right" means that the city's or county's review of 6 the adaptive reuse project may not require a conditional use permit, lanned unit development permit, or other discretionary city or 8 county review or approval that would constitute a "proiect" fol 9 purposes of Division 13 (commencing with Section 21000) of the 10 Public Resources Code. Any subdivision of the sites shall be 11 subject to all laws, including, but not limited to, a city or county 12 ordınance implementing the Subdivision Map Act (Division 2 13 (commencing with Section 66410)).
14 65658.3. (a) A local government may adopt an ordinance to 15 implement this article and specify the process and requirements 16 applicable to adaptive reuse projects, provided that the ordinance 19 be considered a "project" under the California Environmental 20 Quality Act (Division 13 (commencing with Section 21000) of 21 the Public Resources Code).
22 c) A local agency that has not adopted an ordinance governing 23 daptive reuse pursuant to subdivision (a) shall ministeriall 24 without discretionary review approve or disapprove applications 25 the local agency receives for a permit to create or serve an adaptive 26 reuse project pursuant to this article.
27 (d) Notwithstanding Section 65455, any zoning ordinance 28 authorizing adaptive reuse projects may be adopted or amended 29 even if it is inconsistent with the adopted specific plan, and any 30 conflicting provisions authorizing adaptive reuse projects in the 31 zoning ordinance shall supersede the conflicted provisions in the 32 specific plan.
33 (e) Nothing in this article is intended to preempt the adoption 34 and implementation of a local ordinance that provides alternative 35 procedures and substantive requirements for adaptive reuse 36 projects, provided that the local ordinance does not prohibit al 37 applicant from electing to pursue an adaptive reuse project unde 38 this article or under any ordinance adopted to implement this 39 article.
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1 65658.4. The Legislature finds and declares that this article 2 addresses a matter of statewide concern rather than a municipal 3 affair as that term is used in Section 5 of Article XI of the 4 California Constitution. Therefore, this article applies to all cities, 5 including charter cities.
6 65658.5. (a) An adaptive reuse project that meets the requirements of subdivision (b) shall be deemed a use by right in 8 all zones, regardless of the zoning of the site, and subject to the streamlined, ministerial review process described in Section 10 65658.8, except that both of the following conditions apply:
11 (1) Any nonresidential uses of a proposed mixed-use adaptive 12 reuse project shall be consistent with the land uses allowed by the 13 zoning or a continuation of an existing zoning nonconforming use. 14 (2) Any tourist hotel uses of a proposed adaptive reuse project 15 shall be subject to the existing approval processes required by that 16 local jurisdiction.
17 (b) An adaptive reuse project shall comply with all of the 18 following requirements:
19 (1) The adaptive reuse project and the site on which it is located 20 shall satisfy both of the following:
21 (A) It is a legal parcel or parcels located in a city if, and only 22 if, the city boundaries include some portion of an urbanized area, 23 as designated by the United States Census Bureau, or, for 24 unincorporated areas, a legal parcel or parcels wholly within the 25 boundaries of an urbanized area, as designated by the United States 26 Census Bureau.
27 (B) At least 75 percent of the perimeter of the site adjoins parcels 28 that are developed with urban uses. For the purposes of this section, 29 parcels that are separated by a street, highway, or any other 30 right-of-way shall be considered to be adjoined
31 (2) The adaptive reuse project is proposed for any of the 32 following, as applicable:
33 (A) The project is proposed for an existing building that is less 34 than 50 years old
35 (B) The project is proposed for an existing building that is listed 36 on a local, state, or federal register of historic resources and the 37 adaptive reuse project proponent complies with Section 65658.7. 38 (C) The project is proposed for an existing building that is more 39 than 50 years old and the local government has evaluated the site 99 - 11 - AB 507
through a preliminary application submitted pursuant to subdivision 2 (a) of Section 65658.7 and either of the following are satisfied:
3 (i) The local government determines that the building or site is 4 a historic resource and the adaptive reuse project proponent 5 complies with Section 65658.7.
6 (ii) The local government determines that the building or site is not a historic resource.
8 (3) The adaptive reuse project meets the following affordability criteria, as applicable:
10 (A) (i) An adaptive reuse project for rental housing shall include 11 either of the following:
12 (I) Eight percent of the units for very low income households 13 and 5 percent of the units for extremely low income households. 14 (Il) Fifteen percent of the units for lower income households. 15 (i The development proponent shall agree to, and the local 16 government shall require, the continued affordability of all 17 affordable rental units included pursuant to this subdivision through 18 a recorded affordability restriction for a period of 55 years. Rents 19 shall be set at an affordable rent, as defined in Section 50053 of 20 the Health and Safety Code.
21 (B) (i) An adaptive reuse project for owner-occupied housing 22 shall comply with either of the following:
23 (1) Thirty percent of the units shall be offered at an affordable 24 housing cost, as defined in Section 50052.5 of the Health and 25 Safety Code, to moderate-income households.
26 (II) Fifteen percent of the units shall be offered at an affordable 27 housing cost, as defined in Section 50052.5 of the Health and 28 Safety Code, to lower income households.
29 (ii) The development proponent shall agree to, and the local 30 government shall require, the continued affordability of all 31 affordable ownership units through a recorded affordability 32 restriction for a period of 45 years.
33 (C) If the local government has a local affordable housing 34 requirement, the housing development project shall comply with 35 all of the following:
36 (i) The development project shall include the percentage of 37 affordable units required by this section or the local requirement, 38 whichever is higher.
39 (ii) The development project shall meet the lowest income 40 targeting required by either this section or the local requirement. 99 AB 507 - 12 —
1 (iii) If the local affordable housing requirement requires greater 2 than 15 percent of the units to be dedicated for lower income 3 households and does not require the inclusion of units affordable to very low and extremely low income households, then the rental 5 housing development shall do both of the following:
6 (I) Include 8 percent of the units for very low income households 7 and 5 percent of the units for extremely low income households. 8 (Il) Fifteen percent of units affordable to lower income 9 households shall be subtracted from the percentage of units required by the local policy at the highest required affordability 11 12 (D) Affordable units in the development project shall have the 13 same bedroom and bathroom count ratio as the market rate units, 14 be equitably distributed within the project, and have the same type 15 or quality of appliances, fixtures, and finishes.
16 (4) If the adaptive reuse project includes mixed uses, at least 17 one-half of the square footage of the adaptive reuse project shall 18 be dedicated to residential uses. For purposes of this subparagraph, 19 square footage of the project does not include underground space, 20 including basements or underground parking garages.
21 (5) (A) The local government shall, as a condition of approval 22 of the development, require the development proponent to complete 23 a Phase I environmental assessment.
24 (B) If a recognized environmental condition is found, the 25 development proponent undertake preliminary
26 endangerment assessment, as defined in Section 78095 of the 27 Health and Safety Code, prepared by an environmental assessor 28 to determine the existence of any release of a hazardous substance 29 on the site and to determine the potential for exposure of future 30 occupants to significant health hazards from any nearby property 31 or activity.
32 (i) If a release of a hazardous substance is found to exist on the 33 site, before the local government issues a certificate of occupancy, 34 the release shall be removed, or any significant effects of the 35 release shall be mitigated to a level of insignificance in compliance 36 with current state and federal requirements.
37 (ii) If a potential for exposure to significant hazards from 38 surrounding properties or activities is found to exist, before the 39 local government issues a certificate of occupancy, the effects of 99 - 13 — AB 507
1 the potential exposure shall be mitigated to a level of insignificance 2 in compliance with current state and federal requirements. 3 (6) (A) The adaptive reuse project complies with all objective planning standards found in an ordinance adopted pursuant to Section 65658.3.
6 (B) A local government shall not impose any local development standard on any project that is an adaptive reuse project pursuant 8 to this article that would require alteration of the existing building envelope, except if required by any applicable local building code. 10 regardless of whether the local government has adopted ar 11 ordinance pursuant to Section 65658.3.
12 (7) The acreage of the project site is 20 acres or less. 13 (c) An adaptive reuse project that meets all the requirements of 14 subdivision (b) may include rooftop structures that exceed any 15 applicable height limitation imposed by the local government. 16 provided that the rooftop structure does not exceed one story and 17 is used for shared amenities or equipment, including, but not 18 limited to, shared cooking facilities, exercise facilities, common 19 area lounges, or mechanical and stair penthouse facilities. 20 (d) (1) Parking shall not be required for the portion of a project 21 consisting of a building subject to adaptive reuse that does not 22 have existing onsite parking.
23 (2) This article shall not reduce, eliminate, or preclude the 24 enforcement of any requirement imposed on a new multifamily 25 residential or nonresidential development to provide bicycle 26 parking, if feasible.
27 (3) This article shall not reduce, eliminate, or preclude the 28 enforcement of any requirement imposed on a project that includes 29 existing onsite parking to provide electric vehicle supply equipment 30 installed parking spaces or parking spaces that are accessible to 31 persons with disabilities that would have otherwise applied to the 32 development if this section did not apply.
33 (e) An adaptive reuse project shall not violate the terms of any 34 conservation easement applicable to the site.
35 (f) (1) A housing development proposed pursuant to this article 36 shall be eligible for a density bonus, incentives or concessions, shall 37 waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(2) For the purpose of calculating a density bonus for a project proposed pursuant to this article, the base density of an adaptive 99 AB 507 - 14-
1 reuse project shall be the density proposed by the developer, 2 including the portion of a project consisting of a building with a 3 proposed change in use and any adjacent portion of the project, 4 notwithstanding any general plan density limit as described in 5 paragraph (6) of subdivision (o) of Section 65915.
6 (3) The affordability criteria described in paragraph (3) of subdivision (b) shall apply to the base density of the project, and 8 shall not apply to any bonus units proposed pursuant to Section 9 65915.
10 (g) A housing development proposed to adaptively reuse a 11 building shall not be eligible for a density bonus waiver or 12 incentive that has the effect of increasing the height of the 13 adaptively reused building above what is allowed under subdivision 14 (c).
15 65658.6. (a) An adaptive reuse project that satisfies the 16 requirements of Section 65658.5 may include the development of 17 new residential or mixed-use structures on undeveloped areas and 18 parking areas located on the same parcel as the proposed 19 repurposed building, or on the parcels adjacent to the proposed 20 adaptive reuse project site if all of the following requirements are 21 22 (1) The adjacent portion of the project complies with the 23 requirements of any of the following:
24 (A) The requirements of paragraphs (5) and (8) of subdivision 25 (a) of Section 65913.4.
26 (B) The requirements of the Affordable Housing and High Road 27 Jobs Act of 2022 (Chapter 4.1 (commencing with Section 28 65912.100)), including the labor standards for construction workers 29 in the act.
30 (C) The requirements of the Middle Class Housing Act of 2022 31 (Section 65852.24), including the labor standards for construction 32 workers in the act.
33 (2) The adjacent portion of the project is located on a parcel 34 that satisfies the requirements specified in subparagraphs (A) and 35 (B) of paragraph (2) of subdivision (a) of Section 65913.4. 36 (3) The adjacent portion of the project is located on a parcel 37 that satisfies the requirements specified in paragraph (6) of 38 subdivision (a) of Section 65913.4, exclusive of clause (iv) of 39 subparagraph (A), and subparagraph (K), of that paragraph. 99 - 15- AB 507
1 (4) The adjacent portion of the project is located on a parcel 2 that satisfies the requirements specified in paragraph (7) of 3 subdivision (a) of Section 65913.4.
4 (5) The applicant and local agency comply with the requirements 5 of subdivision (b) of Section 65913.4.
6 (6) Any existing open space on the proposed project site is not 8 (b) The adjacent portion of the project shall be eligible for a ) density bonus, incentives or concessions, waivers or reductions of 10 development standards, and parking ratios pursuant to Section 11 12 65658.7. (a) (1) Before submitting an application for an 13 adaptive reuse project pursuant to Section 65658.5 for a structure 14 that is more than 50 years old and not listed on a local, state, or 15 sederal register of local rio resourns the ice of sien prosubmit 16 17 an application. The notice of intent shall be in the form of a 18 preliminary application that includes all of the information 19 described in Section 65941.1.
20 (2) Upon receipt of a notice of intent to submit an application 21 described in subdivision (a), the local government shall evaluate 22 the project site for historical resources. The local government shall 23 make a historic resource significance determination within 90 days 24 of submission of the notice of intent for purposes of paragraph (1) 25 of subdivision (b) of Section 65658.5.
26 (3) Submission of a notice of intent pursuant to this section does 27 not constitute owner consent for determination of eligibility for the California or national registers of historic places. Any 29 determination of historic resource significance made pursuant to 30 this subdivision shall apply only for the purposes of this article 31 and shall not affect or be applicable to any other law. 32 b) If the adaptive reuse project is proposed for an existin 33 uilding that is listed on a local. state. or federal register of histori 34 resources or if the local government has determined that the project 35 site is a significant historic resource pursuant to subdivision (a), 36 the adaptive reuse project proponent shall sign an affidavit 37 declaring that the project will only move forward if it complies 38 39 (1) The United States Secretary of the Interior's Standards for 40 Rehabilitation, as found in Part 67 of Title 36 of the Code of 99 AB 507 - 16-
1 Federal Regulations, for the preservation of exterior facades of a 2 building that face a street, interior facades of a building that face 3 a courtyard, and interior spaces of a building that are publicly accessible and character defining, including ground floor lobbies. 5 Exterior facades that do not face a street, interior facades that do 6 not tace a courtyard, and interior spaces that are not publicly accessible and character defining may be modified without regard 8 to the United States Secretary of the Interior's Standards for 9 Rehabilitation.
10 (2) The project is awarded federal historic rehabilitation tax 11 credits pursuant to Section 47 of the Internal Revenue Code, or 12 state historic rehabilitation tax credits pursuant to Section 17053.91 13 or 23691 of the Revenue and Taxation Code.
14 (c) (1) (A) Notwithstanding subdivision (b), if the adaptive 15 reuse project is proposed for a site that is listed on a local, state, 16 or federal historic register and the adaptive reuse project proponent 17 does not sign an affidavit pursuant to subdivision (b), the local 18 government shall process the adaptive reuse project pursuant to 19 Section 65658.8, but the local government may deny or 20 conditionally approve the project if the local government makes 21 a finding, based upon a preponderance of evidence in the record, 22 that the project will cause a significant adverse impact to historic 23 resources.
24 (B) A local agency may impose conditions of approval to 25 mitigate impacts to historic resources and to comply with the 26 United States Secretary of the Interior's Standards for 27 Rehabilitation, as found in Part 67 of Title 36 of the Code of 28 Federal Regulations, for the preservation of exterior facades of a 29 building that face a street and interior spaces of a building that are 30 bublicly accessible and character defining, including ground floot 31 lobbies, but shall not impose other conditions of approval. Exterior 32 facades that do not face a street and interior spaces that are not 33 publicly accessible and character defining shall not be required to 34 be preserved according to the United States Secretary of the 35 Interior's Standards for Rehabilitation.
36 (2) An adaptive reuse project pursuant to this section shall not 37 constitute a "project" for purposes of Division 13 (commencing 38 with Section 21000) of the Public Resources Code.
39 (d) For the purposes of this article, a local government's 40 evaluation of a site for historical resources and review of an 99 — 17— AB 507
1 adaptive reuse project for consistency with the United States 2 Secretary of the Interior's Standards for Rehabilitation shall be 3 conducted by a person who meets the United States Secretary of the Interior's Professional Qualifications Standards, as published 5 in Part 67 (commencing with Section 67.1) of Title 36 of the Code 6 of Federal Regulations. Any revised professional qualifications standards adopted by the Secretary of the Interior that supersede 8 the standards described in this paragraph shall apply. 65658.8. (a) (1) Notwithstanding any local law, if a local 10 government's planning director or equivalent position determines 11 that an adaptive reuse project submitted pursuant to this article is 12 consistent with the objective planning standards specified in 13 Section 65658.5 and Section 65658.6, if applicable, the local 14 government shall approve the adaptive reuse project within the 15 following timeframes:
16 (A) Within 60 days of the date that the project has been deemed 17 consistent pursuant to this paragraph and paragraph (2), if the 18 project contains 150 or fewer housing units.
19 (B) Within 90 days of the date that the project has been deemed 20 consistent pursuant to this paragraph and paragraph (2), if the 21 project contains more than 150 housing units.
22 (2) Upon a determination that an adaptive reuse project 23 submitted pursuant to this section is in conflict with any of the 24 objective planning standards specified in Section 65658.5 or 25 Section 65658.6, if applicable, the local government staff or 26 relevant local planning and permitting department that made the 27 determination shall provide the development proponent written 28 documentation of which standard or standards the development 29 conflicts with, and an explanation for the reason or reasons the 30 development confliets with that standard or standards within the 31 following timeframes:
32 (A) Within 60 days of submittal of the adaptive reuse project 33 to the local government pursuant to this section if the project 34 contains 150 or fewer housing units.
35 (B) Within 90 days of submittal of the adaptive reuse project 36 to the local government pursuant to this section if the project 37 contains more than 150 housing units.
38 (C) Within 30 days of submittal of any adaptive reuse project 39 that was resubmitted to the local government following a 99 AB 507 - 18-
1 determination of a conflict with one or more objective planning 2 standards pursuant to this paragraph.
3 (3) If the local government's planning director or equivalent position fails to provide the required documentation pursuant to 5 paragraph (2), the adaptive reuse project shall be deemed to satisfy 6 the objective planning standards specified in Section 65658.5 and Section 65658.6, if applicable.
8 (4) For purposes of this section, an adaptive reuse project is 10 Section 65658.5 and Section 65658.6, if applicable, if there is 11 12 conclude that the project is consistent with the objective planning 13 standards. The local government shall not determine that ar 14 adaptive reuse project, including an application for a modification 15 sider subdi thieba is tha rapidit with the directive plamin, 16 17 if the application contains substantial evidence that would allow 18 a reasonable person to conclude that the project is consistent with 19 the objective planning standards.
20 (5) Upon submittal of an application for streamlined, ministerial 21 approval pursuant to this section to the local government, all 22 departments of the local government that are required to issue an 23 approval of the adaptive reuse project before the granting of an 24 entitlement shall comply with the requirements of this section 25 within the time periods specified in paragraphs (1) and (2). 26 (b) (1) (A) Any design review of the project may be conducted 27 by the local government's planning commission or any equivalent 28 board or commission responsible for design review. That design 29 review shall be objective and be strictly tocused on assessing 30 compliance with the criteria required for streamlined projects. That 31 design review shall not in any way inhibit, chill, or preclude the 32 ministerial approval provided by this article.
33 (B) Any design review for the adjacent portion of the project 34 shall be objective and be strictly focused on assessing compliance 35 with the objective criteria required for streamlined projects, 36 ncluding, as applicable, those for new exterior additions to histor 37 uildings described in Preservation Brief 14: New Exterio 38 Additions to Historic Buildings: Preservation Concerns released 39 by the National Park Service within the United States Department 40 of the Interior.
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(2) If the adaptive reuse project is consistent with the 2 requirements of Section 65658.5 and Section 65658.6, if applicable, 3 and is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision 5 ursuant to the Subdivision Map Act (Division 2 (commencin 6 vith Section 66410) shall be exempt from the requirements o the California Environmental Quality Act (Division 13
8 (commencing with Section 21000) of the Public Resources Code and shall be subject to the public oversight timelines set forth in 10 paragraph (1).
11 (c) (1) Notwithstanding any law, a local government, whether 12 13
14 automobile parking standards for an adjacent portion of the project 15 that was approved pursuant to this article in any of the following 16 instances:
17 (A) The adjacent portion of the project is located within one-half 18 mile of public transit.
19 (B) The adjacent portion of the project is located within an 20 architecturally and historically significant historic district. 21 (C) When on-street parking permits are required but not offered 22 to the occupants of the adjacent portion of the project. 23 (D) When there is a car share vehicle located within one block 24 of the adjacent portion of the project.
25 (2) If the adjacent portion of the project does not fall within any 26 of the categories described in paragraph (1), the local government 27 shall not impose automobile parking requirements for the adjacent 28 portion of the project approved pursuant to this article that exceed 29 one parking space per unit.
30 (d) Notwithstanding any other law, a local government shall 31 not require any of the following prior to approving an adaptive 32 reuse project that meets the requirements of this article:
33 (1) Studies, information, or other materials that do not pertain 34 directly to determining whether the adaptive reuse project is 35 consistent with the objective planning standards applicable to the 36 development.
37 (2) (A) Compliance with any standards necessary to receive a 38 ostentitlement permi
39 B) This paragraph does not prohibit a local agency fror 40 requiring compliance with any standards necessary to receive a 99 AB 507 - 20-
1 postentitlement permit after a permit has been issued pursuant to 2 this section.
3 (C) For purposes of this paragraph, "postentitlement permit" 4 has the same meaning as provided in subparagraph (A) of 5 paragraph (3) of subdivision (j) of Section 65913.3.
6 (e) (1) If a local government approves an adaptive reuse project pursuant to this article, then, notwithstanding any other law, that 8 approval Shall not expire if the project satisfies both of the 9 following requirements:
10 (A) The project includes public investment in housing 11 affordability, beyond tax credits.
12 (B) At least 20 percent of the units are affordable to households 13 making at or below 80 percent of the area median income. 14 (2) (A) If a local government approves an adaptive reuse project 15 pursuant to this article, and the project does not satisfy the 16 requirements of subparagraphs (A) and (B) of paragraph (1), that 17 approval shall remain valid for three years from the date of the 18 final action establishing that approval, or if litigation is filed 19 challenging that approval, from the date of the final judgment upholding that approval. Approval shall remain valid for a proiec 21 rovided construction activity.
ctivity, on the development site has begun pursuant to gracin 22 23 issued by the local jurisdiction and is in progress. For purposes of 24 this subdivision, "in progress" means one of the following:
25 (1) Construction has begun and has not ceased for more than 26 365 days.
27 (ii) If the project requires multiple building permits, an initial 28 phase has been completed, and the project proponent has applied 29 for and is diligently pursuing a building permit for a subsequent 30 phase, provided that once it has been issued, the building permit 31 32 (B) Notwithstanding subparagraph (A), a local government may 33 grant a project a one-time, one-year extension if the project 34 proponent can provide documentation that there has been 35 significant progress toward getting the adaptive reuse project 36 construction ready, such as filing a building permit application. 37 (3) If the qualified adaptive reuse project proponent requests a 38 modification pursuant to subdivision (f), then the time during which 39 the approval shall remain valid shall be extended for the number 40 of days between the submittal of a modification request and the 99 - 21 - AB 507
1 date of its final approval, plus an additional 180 days to allow time 2 to obtain a building permit. If litigation is filed relating to the 3 modification request, the time shall be further extended during the pendency of the litigation. The extension required by this paragraph shall only apply to the first request for a modification submitted by the development proponent.
(f) (1) (A) A development proponent
8 modification to a qualified adaptive reuse project that has been approved under the streamlined approval process provided in this 10 article if that request is submitted to the local government before 11 the issuance of the final building permit required for construction 12 of the adaptive reuse project.
13 (B) Except as provided in paragraph (3), the local government 14 Shall approve a modification if it determines that the modification 15 is consistent with the objective planning standards specified in 16 subdivision (a) that were in effect when the original adaptive reuse 17 project application was first submitted.
18 (C) The local government shall evaluate any modifications 19 requested pursuant to this subdivision for consistency with the 20 objective planning standards using the same assumptions and 21 analytical methodology that the local government originally used 22 to assess consistency for the adaptive reuse proiect that was 23 approved for streamlined, ministerial approval pursuant to 24 subdivision (a).
25 (2) Upon receipt of the adaptive reuse project proponent's 26 application requesting a modification, the local government shall 27 determine if the requested modification is consistent with the 28 objective planning standard and either approve or deny the 29 modification request within 60 days after submission of the 30 modification, or within 90 days if design review is required. 31 (3) Notwithstanding paragraph (1), the local government may 32 apply objective planning standards to an adjacent portion of the 33 project adopted after the project application was first submitted to 34 the requested modification in any of the following instances:
35 (A) The adjacent portion of the project is revised such that the 36 total number of residential units or total square footage of construction changes by 15 percent or more. The calculation of 38 the square footage of construction changes shall not include 39 underground space.
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1 (B) The adjacent portion of the project is revised such that the 2 total number of residential units or total square footage of 3 construction changes by 5 percent or more and it is necessary to subject the project to an objective standard beyond those in effect when the project application was submitted in order to mitigate or 6 avoid a specific, adverse impact, as that term is defined in subparagraph (A) of paragraph (1) of subdivision (j) of Section 65589.5, upon the public health or safety and there is no feasible alternative method to satisfactorily mitigate or avoid the adverse impact. The calculation of the square footage of construction changes shall not include underground space.
(C) Objective building standards contained in the California 13 Building Standards Code (Title 24 of the California Code of Regulations) or the California Historical Building Code (Part 8 of 15 Title 24 of the California Code of Regulations), including, but not 16 limited to, building plumbing, electrical, fire, and grading codes, 17 may be applied to all modification applications that are submitted 18 prior to the first building permit application. Those standards may be applied to modification applications submitted after the first 20 building permit application if agreed to by the development proponent.
22 (4) The local government's review of a modification request 23 pursuant to this subdivision shall be strictly limited to determining 24 whether the modification, including any modification to previously 25 approved density bonus concessions or waivers, renders the project 26 inconsistent with the applicable objective planning standards and 27 shall not reconsider prior determinations that are not affected by 28 the modification.
29 65658.9. (a) A local government shall issue a subsequent 30 permit required for an adaptive reuse project approved under this 31 article if the application substantially complies with the project as 32 it was approved pursuant to Section 65658.8. Upon receipt of an 33 application for a subsequent permit, the local government shall 34 process the permit without unreasonable delay and shall not impose 35 any procedure or requirement that is not imposed on projects that 36 37
38 39
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1 in objective standards. Issuance of subsequent permits shall 2 implement the approved project, and review of the permit 3 application shall not inhibit, chill, or preclude the adaptive reuse project. For purposes of this paragraph, a "subsequent permit" means a permit required subsequent to receiving approval under subdivision (a) of Section 65658.8, and includes, but is not limited to, demolition, grading, encroachment, and building permits and final maps.
9 (b) (1) If a public improvement is necessary to implement a 10 project subject to this article, including, but not limited to, a bicycle 11 lane, sidewalk or walkway, public transit stop, driveway, street 12 paving or overlay, a curb or gutter, a modified intersection, a street 13 sign or street light, landscape or hardscape, an aboveground or 14 underground utility connection, a water line, fire hydrant, storm 15 or sanitary sewer connection, retaining wall, and any related work. 16 and that public improvement is located on land owned by the local 17 government, to the extent that the public improvement requires 18 approval from the local government, the local government shall 19 not exercise its discretion over any approval relating to the public 20 improvement in a manner that would inhibit, chill, or preclude the project.
22 (2) If an application for a public improvement described in 23 paragraph (1) is submitted to a local government, the local 24 government shall do all of the following:
25 (A) Consider the application based upon any objective standards 26 specified in any state or local laws that were in effect when the 27 original adaptive reuse project application was submitted. 28 (B) Conduct its review and approval in the same manner as it 29 would evaluate the public improvement if required by a project 30 that is not eligible to receive ministerial or streamlined approval 31 pursuant to this section.
32 (3) If an application for a public improvement described in 33 paragraph (1) is submitted to a local government, the local 34 government shall not do either of the following:
35 (A) Adopt or impose any requirement that applies to a project 6 solely or partially on the basis that the project is eligible to receiv 37 ministerial or streamlined approval pursuant to this articl 38 (B) Unreasonably delay in its consideration, review, or approval 39 of the application.
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1 (c) Nothing in this article shall be interpreted to limit the 2 applicability of Section 65913.3
65658.10. (a) A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or 5 inclusionary housing requirements, that applies to a project solely 6 or partially on the basis that the project is eligible to receive ministerial or streamlined approval pursuant to this article. 8 (b) This article shall not affect a project proponent's ability to 9 use any alternative streamlined by right permit processing adopted 10 by a local government.
11 (c) Any project that qualifies as an adaptive reuse project 12 pursuant to this article shall also qualify as a housing development 13 project entitled to the protections of Section 65589.5. 14 (d) Alterations to an existing building necessary to comply with 15 local code, the California Building Standards Code (litle 24 of 16 the California Code of Regulations), or the California Historical 17 Building Code (Part 8 of Title 24 of the California Code of I Regulations) shall not disqualify a qualified adaptive reuse project 19 from the streamlined, ministerial review process established under 20 this article.
21 65658.11. (a) Notwithstanding any other law, an adaptive 22 reuse project shall be exempt from all impact fees that are not 23 reasonably related to the impacts resulting from the change of use 24 of the site from nonresidential to residential or mixed use. Any 25 tees charged shall be roughly proportional to the difference in 26 impacts caused by the change of use.
27 (b) This section shall not apply to any adjacent portion of the 28 project.
29 SEC. 4. No reimbursement is required by this act pursuant to 30 Section 6 of Article XIII B of the California Constitution because 31 a local agency or school district has the authority to levy service 32 charges, fees, or assessments sufficient to pay for the program or 33 evel ot service mandated by this act or because costs that may b 34 ncurred by a local agency or school district will be incurre 35 because this act creates a new crime or infraction, eliminates a 36 crime or infraction, or changes the penalty for a crime or infraction, 37 within the meaning of Section 17556 of the Government Code, or 99 - 25— AB 507
1 changes the definition of a crime within the meaning of Section 6 2 of Article XIII B of the California Constitution.
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