Agenda packet — Santa Cruz City Council, February 13, 2024 (part 5 of 5)

CALIFORNIA LEGISLATURE
Senate Housing Committee
Senator Scott Wiener, Chair
For the City of Santa Cruz
As curated by The Gualco Group, Inc.

November 8, 2023
2023 Legislative Bill Summary

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INTRODUCTION
This publication is a comprehensive collection of summaries for bills that the Senate Housing Committee considered during the 2023 legislative year. This report also contains summaries for legislation that the consultants for the Senate Housing Committee deem worthy of the committee’s attention, yet were never assigned. This includes bills that never made it out of the Assembly as well as bills that were assigned to other policy committees.

Each summary includes the final status of the bill. Bills that list a committee but no further action are considered two year bills and can be taken up in 2024.

For your convenience, chapter numbers of bills that the Legislature passed and the Governor signed into law are listed. Messages from the governor, either vetoing or signing a measure, are also included.

In general, chaptered legislation will go into effect on January 1, 2024. Bills that contain an urgency clause took effect immediately upon the governor’s signature.

Committee Staff
Chief Consultant: Alison Hughes
Consultant: Mehgie Tabar
Science Fellow: Aiyana Cortez
Committee Assistant: Cicely Chisholm

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ABBREVIATIONS
The Committee uses the following abbreviations throughout this summary:

ADU Accessory Dwelling Unit
BCSH Business, Consumer Services and Housing Agency
CalHFA California Housing Finance Agency
Cal-ICH Interagency Council on Homelessness
CBSC California Building Standards Commission
CDLAC California Debt Limit Allocation Committee
CEQA California Environmental Quality Act
DGS California Department of General Services
HCD California Department of Housing and Community Development HHAPP Homeless Housing, Assistance, and Prevention Grant Program HOA Homeowners Association
JADU Junior Accessory Dwelling Unit
LIHTC Low Income Housing Tax Credit
RHNA Regional Housing Needs Allocation
SLA Surplus Land Act
TCAC California Tax Credit Allocation Committee

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Accessory Dwelling Units ................................................................................................5 Building Standards ..........................................................................................................5 California Environmental Quality Act - Statutory Exemptions and Expedited Approvals…6 Constitutional Amendments .............................................................................................7 Homelessness.................................................................................................................8 Housing Elements ...........................................................................................................9 Land Use and Zoning ....................................................................................................10 Landlord - Tenant and Fair Housing ..............................................................................15 Local Housing and Infrastructure Finance......................................................................15 Manufactured Housing and Mobilehomes ......................................................................16 Miscellaneous ...............................................................................................................16 State Housing Programs and Finance ...........................................................................17 Surplus Properties......................................................................................................... 19

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Accessory Dwelling Units
AB-671 (Ward) - CalHome Program: accessory dwelling units.

Revises the CalHome program to allow for greater flexibility in grant funding and to update resale requirements of units developed under the program.

Status: Chapter 746, Statutes of 2023
AB-932 (Ting) - Accessory dwelling units: Accessory Dwelling Unit Program: reports.

Requires CalHFA to conduct an analysis of its ADU program and report its findings to the Legislature by January 1, 2025.

Status: Chapter 169, Statutes of 2023
AB-976 (Ting) - Accessory dwelling units: owner-occupancy requirements.

Makes permanent the existing prohibition on local government's ability to require owneroccupancy on a parcel containing an ADU.

Status: Chapter 751, Statutes of 2023
AB-1033 (Ting) - Accessory dwelling units: local ordinances: separate sale or conveyance.

Allows cities and counties that have a local ADU ordinance to allow ADUs to be sold separately or conveyed from the primary residence.

Status: Chapter 752, Statutes of 2023
AB-1332 (Juan Carrillo) - Accessory dwelling units: preapproved plans.

Requires local governments to create a program for the pre-approval of ADUs.

Status: Chapter 759, Statutes of 2023
Building Standard
SB-597 (Glazer) - Building standards: rainwater catchment systems.

Requires HCD to research and develop, and authorizes HCD to propose to the CBSC, recommendations for building standards related to the installation of rainwater catchment systems for newly constructed residential dwellings.

Status: Assembly – Appropriations Committee
SB-745 (Cortese) - The Drought-Resistant Buildings Act.

Requires CBSC and HCD to develop and propose new mandatory building standards related to water efficiency.

Status: Chapter 884, Statutes of 2023

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AB-42 (Ramos) - Tiny homes: fire sprinkler requirements.

Prohibits, until January 1, 2027, a local agency from imposing or enforcing a requirement to provide fire sprinklers in temporary sleeping cabins, as defined, for people experiencing or at-risk of homelessness if certain conditions are met.

Status: Chapter 725, Statutes of 2023
AB-548 (Boerner) - State Housing Law: inspection.

Requires local enforcement agencies to develop policies and procedures for inspecting multiple units in a building if an inspector or code enforcement officer has determined that a unit in that building is substandard or is in violation of state habitability standards.

Status: Chapter 744, Statutes of 2023
AB-1490 (Lee) - Affordable housing development projects: adaptive reuse.

Makes an affordable housing project that adaptively reuses an existing building an allowable use under specified conditions, and limits the local government from imposing specified requirements, notwithstanding any inconsistencies between the project and any local plans, zoning, or regulations.

Status: Chapter 764, Statutes of 2023
California Environmental Quality Act - Statutory Exemptions and Expedited Approvals
SB-270 (Wiener) - California Environmental Quality Act: university housing development projects: exemption.

Replaces the requirement that, for a higher education institution to utilize a particular CEQA exemption, a building be certified as Leadership in Energy and Environmental Design (LEED) Platinum with a requirement that it achieve a LEED Gold score of 79 or better.

Status: Senate – Appropriations Committee
SB-406 (Cortese) - California Environmental Quality Act: exemption:
financial assistance: housing.

Establishes an exemption from CEQA for actions taken by a local agency to provide financial assistance or insurance for low- and moderate-income residential housing.

Status: Chapter 150, Statutes of 2023
AB-1307 (Wicks) - California Environmental Quality Act: noise impact:
residential projects.

For purposes of residential projects reviewed under CEQA, provides that the effects of noise generated by occupants and guests on human beings is not a significant effect on the environment. Further provides that public universities are not required, in an environmental impact report prepared for a residential or mixed-use housing project, to consider alternatives to the location of the project if specified requirements are met.

Status: Chapter 160, Statutes of 2023

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AB-1449 (Alvarez) - Affordable housing: California Environmental Quality Act: exemption.

Exempts certain housing affordable housing projects from CEQA, as specified.

Status: Chapter 761, Statutes of 2023
AB-1633 (Ting) - Housing Accountability Act: disapprovals: California Environmental Quality Act.

Provides that a disapproval under the Housing Accountability Act includes a local agency's failure to make a determination of whether a project is exempt from CEQA, abuse of discretion, or failure to adopt certain environmental documents under specified circumstances, and makes several other changes, until January 1, 2031.

Status: Chapter 768, Statutes of 2023
Common Interest Developments
AB-572 (Haney) - Common interest developments: imposition of assessments.

Caps annual increases in regular assessments on deed-restricted affordable housing units in HOAs, as specified, at 5% (plus the percentage change in the cost of living, not to exceed 10%) greater than the preceding regular assessment, for HOAs that record their original declaration on or after January 1, 2025.

Status: Chapter 745, Statutes of 2023
AB-648 (Valencia) - Common interest developments: procedures: meetings by teleconference.

Authorizes an HOA to conduct a board or member meeting entirely by teleconference without any physical location, if certain conditions are met.

Status: Chapter 203, Statutes of 2023
AB-1458 (Ta) - Common interest developments: association governance:
member election.

Authorizes a lower quorum requirement for common interest development association elections of directors under specified circumstances.

Status: Chapter 303, Statutes of 2023
Constitutional Amendments
ACA-1 (Aguiar-Curry) - Local government financing: affordable housing and public infrastructure: voter approval.

Allows a city, county, or special district, with 55% voter approval, to incur bonded indebtedness or impose specified special taxes to fund projects for affordable housing, permanent supportive housing, or public infrastructure, as specified.

Status: Chapter 173, Statutes of 2023

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ACA-13 (Ward) - Voting thresholds.

Requires an initiative constitutional amendment to comply with any increased voter approval threshold that it seeks to impose on future ballot measures. Guarantees in the state constitution the ability of local governments to submit advisory questions to voters.

Status: Assembly – Desk
Homelessness
SB-482 (Blakespear) - Multifamily Housing Program: supportive housing:
capitalized operating reserves.

Requires HCD to offer capitalized operating reserves to supportive housing units developed under the Multifamily Housing Program.

Status: Chapter 780, Statutes of 2023
AB-42 (Ramos) - Tiny homes: fire sprinkler requirements.

Status: Chapter 725, Statutes of 2023
AB-129 (Committee on Budget) - Housing.

Contains the statutory changes necessary to implement the various housingrelated provisions of the Budget Act of 2023, including:
(1) Provides, until January 1, 2034, that land that is subject to a sectional planning area is not subject to specified requirements for the disposal of “exempt surplus land” if specified conditions are met and requires DGS to include in its annual report the status of development on that land;
(2) Requires an exempted parcel or parcels in the Middle Class housing Act of 2022 (SB 6, Caballero, Chapter 659, Statutes of 2022) to be subject to an ordinance that allows for development by-right for a local agency to reallocate the residential density from an exempt parcel; Authorizes a local government to exempt a parcel from the Affordable Housing and High Road Jobs Act (Act) of 2022 (AB 2011, Wicks, Chapter 647, Statutes of 2022) by an ordinance adopted to implement its provisions before a development proponent submits a development application and if specified requirements are met; (3) Authorizes Cal-ICH to administer round 5 of HHAPP, which requires applicants to apply as part of a region and to be signatory to a Cal-ICH approved regionally coordinated homelessness action plan; requires HHAPP grantees, on or before January 31, 2026, to submit an updated regionally coordinated homelessness action plan that includes updates on the metrics and corresponding key actions carried out, as applicable;
(4) Requires DGS to update a digitized inventory of all excess state land suitable for affordable housing after the conclusion of its review of all state-owned property.
(5) Makes other technical changes to housing programs.

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Status: Chapter 40, Statutes of 2023
AB-257 (Hoover) - Encampments: penalties.

Makes it a crime to camp on any street, sidewalk, or other public property within 500 feet of a school, daycare, playground or youth center.

Status: Assembly – Public Safety Committee
AB-1285 (Wicks) - Homeless Housing, Assistance, and Prevention program and Encampment Resolution Funding program.

Requires continuums of care that share geographic boundaries with a city or county using state funding allocated pursuant to round five of HHAPP or the Encampment Resolution Program funding to additionally include in their regionally coordinated homelessness action plans evidence and an explanation of their collaboration with the city or county that specifies how people served through encampment resolution have or will be included in prioritization for permanent housing within coordinated entry systems.

Status: Chapter 727, Statutes of 2023
AB-1377 (Friedman) - Homeless Housing, Assistance, and Prevention Program: Round 3.

Requires applications or planning materials for state funding through HHAPP appropriated on or after July 1, 2024, to include data and a narrative summary quantifiable steps that the applicant has taken to improve the delivery of housing and services to people experiencing homelessness or at-risk of homelessness on transit facilities owned and operated by a transit agency.

Status: Chapter 728, Statutes of 2023
AB-1734 (Jones-Sawyer) - Local Government: Surplus Land Act:
exemptions.

Exempts certain housing and homelessness projects from SLA in local agencies that have declared a local homelessness emergency and meet other requirements.

Status: Chapter 769, Statutes of 2023
Housing Elements
SB-7 (Blakespear) - The Homeless Housing Obligation Act.

Requires RHNA to include homeless as an income category for local housing element planning purposes, and enact the Homeless Housing Obligation Act, which requires each city and county to develop a housing obligation plan to provide housing opportunities for each homeless person within its jurisdiction by January 1, 2030, as specified. The bill also requires HCD to develop and administer a new program, upon appropriation of funding by the Legislature, to provide grants to cities, counties, and nonprofit housing entities to fulfill the obligations to provide housing opportunities for homeless persons.

Status: Senate – Appropriations Committee

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Land Use and Zoning
SB-4 (Wiener) - Planning and zoning: housing development: higher education institutions and religious institutions.

Establishes the Affordable Housing on Faith and Higher Education Lands Act of 2023, which, until January 1, 2036, enables 100% affordable housing to be a use by-right on land owned by religious institutions and independent institution of higher education.

Status: Chapter 771, Statutes of 2023
SB-7 (Blakespear) - The Homeless Housing Obligation Act.

Status: Senate – Appropriations Committee
SB-423 (Wiener) - Land use: streamlined housing approvals: multifamily housing developments.

Extends the sunset for SB 35 (Wiener, Chapter 366, Statutes of 2017) by 11 years to January 1, 2036. This bill also enables SB 35 to apply in cities without a compliant housing element, as determined by HCD, and on specified sites in the coastal zone.

Status: Chapter 778, Statutes of 2023
SB-439 (Skinner) - Special motions to strike: priority housing development projects.

Creates a special motion to strike a challenge to the approval or permitting of an affordable housing project modeled after California’s anti-Strategic Lawsuit against Public Participation (SLAAP) statute.

Status: Chapter 779, Statutes of 2023
SB-450 (Atkins) - Housing development: approvals.

Amends the process established by SB 9 (Atkins, Chapter 162, Statutes of 2021), for the ministerial approval by a local agency of a duplex in a single-family zone and the lot split of a parcel zoned for residential use into two parcels.

Status: Assembly – Inactive File

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SB-684 (Caballero) - Land use: streamlined approval processes:
development projects of 10 or fewer single-family residential units on urban lots under 5 acres.

Requires local agencies to ministerially approve subdivision maps for specified projects in urban areas that include 10 or fewer housing units.

Status: Chapter 783, Statutes of 2023
SB-713 (Padilla) - Planning and zoning: density bonuses: development standard.

Clarifies that for purposes of state density bonus law “development standards” means those adopted by the local government or enacted by the local government’s electorate exercising its local initiative or referendum power, whether that power is derived from the California Constitution, statute, or the charter or ordinances of the local government.

Status: Chapter 784, Statutes of 2023
AB-68 (Ward) - Land use: streamlined housing approvals: density, subdivision, and utility approvals.

Requires a local government to approve a proposed housing development pursuant to a streamlined, ministerial approval process if the development meets certain objective planning standards, including, but not limited to, a requirement that the proposed parcel for the development be a climate-smart parcel, or be included in the applicable region’s sustainable communities strategy as a priority development area. This bill also prohibits a local government from increasing the planned density on climate resilient lands, as defined, from approving any tentative, final, or parcel maps for the subdivision of property within climate risk lands, as defined, and from approving an extension of water or sewer services on climate resilient lands unless specified planning requirements or conditions are met.

Status: Assembly – Housing and Community Development Committee AB-129 (Committee on Budget) - Housing.

Contains the statutory changes necessary to implement the various housing-related provisions of the Budget Act of 2023, including:
(1) Provides, until January 1, 2034, that land that is subject to a sectional planning area is not subject to specified requirements for the disposal of “exempt surplus land” if specified conditions are met and requires DGS to include in its annual report the status of development on that land;
(2) Requires an exempted parcel or parcels in the Middle Class housing Act of 2022 (SB 6, Caballero, Chapter 659, Statutes of 2022) to be subject to an ordinance that allows for development by-right for a local agency to reallocate the residential density from an exempt parcel;
(3) Authorizes a local government to exempt a parcel from the Affordable Housing and High Road Jobs Act (Act) of 2022 (AB 2011, Wicks, Chapter 647, Statutes of 2022) by an ordinance adopted to implement its provisions before a

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development proponent submits a development application and if specified requirements are met;
(4) Authorizes Cal-ICH to administer round 5 of HHAPP, which requires applicants to apply as part of a region and to be signatory to a Cal-ICH approved regionally coordinated homelessness action plan; requires HHAPP grantees, on or before January 31, 2026, to submit an updated regionally coordinated homelessness action plan that includes updates on the metrics and corresponding key actions carried out, as applicable;
(5) Requires DGS to update a digitized inventory of all excess state land suitable for affordable housing after the conclusion of its review of all state-owned property; and
Status: Chapter 40, Statutes of 2023
AB-281 (Grayson) - Planning and zoning: housing: postentitlement phase permits.

Requires special districts to comply with specified timeframes, similar to those for cities and counties, when reviewing and approving postentitlement phase permit applications from housing developers.

Status: Chapter 735, Statutes of 2023
AB-323 (Holden) - Density Bonus Law: purchase of density bonus units by nonprofit housing organizations: civil actions.

Limits the ability of developers to sell deed-restricted units intended for owneroccupancy to purchasers that would rent the unit unless there are no qualified owneroccupant buyers.

Status: Chapter 738, Statutes of 2023
AB-531 (Irwin) - The Behavioral Health Infrastructure Bond Act of 2023.

Creates the Behavioral Health Infrastructure Bond Act of 2024, and authorizes, subject to voter approval, the issuance of $6.38 billion in general obligation bonds to be issued to the Department of Health Care Services and HCD for funding community-based treatment and residential care settings, as well as permanent supportive housing, as specified.

Status: Chapter 789, Statutes of 2023 on March 2024 ballot bonds.

AB-812 (Boerner) - Housing development approvals: reserving affordable units in or near a cultural district for artists.

Authorizes local governments to set aside 10% of any locally-required affordable housing units for artists within one-half mile of a state designated cultural district or within a locally designated cultural district.

Status: Chapter 747, Statutes of 2023

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Governor's Signing Message:

I am signing Assembly Bill 812 which will allow a city or county with an inclusionary zoning policy to reserve up to ten percent of affordable units created pursuant to local inclusionary zoning ordinances for artists. Units reserved for artists will need to be located either in or within one-half mile of a state or locally designated cultural district.

Federal law recognizes the need for artist housing in affordable housing communities. I appreciate this bill requires consistency with the state's Local Tenant Preferences to Prevent Displacement Act, legislation I signed last year, which also requires compliance with fair housing laws.

While I am signing this bill, a sufficient framework exists under both state and federal law for jurisdictions to adopt local tenant preference policies tailored to their communities. In the future, I will be disinclined to sign bills that provide statutory carve outs for specific professions that can already be addressed through existing law.

AB-894 (Friedman) - Parking requirements: shared parking.

Requires local agencies to allow developments to count underutilized and shared parking spaces toward a parking requirement imposed by the agency, under specified conditions.

Status: Chapter 749, Statutes of 2023
AB-911 (Schiavo) - Unlawfully restrictive covenants: affordable housing.

Establishes a process for a prospective purchaser of a property to receive notification if a county counsel has authorized the county recorder to record a modification document removing covenants that restrict the number, size, or location of affordable housing units that may be built on the property.

Status: Chapter 750, Statutes of 2023
AB-1114 (Haney) - Planning and zoning: housing development projects:
postentitlement phase permits.

Expands the postentitlement permits subject to timelines for review and approval to include all building permits as specified, whether discretionary or nondiscretionary.

Status: Chapter 753, Statutes of 2023
AB-1218 (Lowenthal) - Development projects: demolition of residential dwelling units.

Amends the demolition protections for existing housing applicable to development projects.

Status: Chapter 754, Statutes of 2023

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AB-1287 (Alvarez) - Density Bonus Law: additional density bonus and incentives or concessions: California Coastal Act of 1976.

Requires a city, county, or city and county to grant additional density and concessions and incentives if an applicant agrees to include additional low- or moderate-income units on top of the maximum amount of units for lower, very low-, or moderate-income units.

Status: Chapter 755, Statutes of 2023
AB-1308 (Quirk-Silva) - Planning and Zoning Law: single-family residences:
parking requirements.

Prohibits a public agency from increasing the minimum parking requirement that applies to a single-family residence as a condition of approval of a project to remodel, renovate, or add to a single-family residence.

Status: Chapter 756, Statutes of 2023
AB-1335 (Zbur) - Local government: transportation planning and land use:
sustainable communities strategy.

Makes changes to the housing projections included in sustainable communities strategies and adds additional reporting requirements.

Status: Senate – Appropriations Committee
AB-1485 (Haney) - Housing element: enforcement: Attorney General.

Grants HCD and the Office of the Attorney General the unconditional right to intervene in any suit brought to enforce specified housing laws.

Status: Chapter 763, Statutes of 2023
AB-1490 (Lee) - Affordable housing development projects: adaptive reuse.

Status: Chapter 764, Statutes of 2023
AB-1532 (Haney) - Office conversion projects.

Makes an office conversion project, as defined, that meets certain requirements a use by-right in all areas regardless of zoning. This bill also exempts an office conversion project from impact fees, as defined, that are not directly related to the conversion of an office building into residential dwelling units.

Status: Assembly – Housing and Community Development Committee

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AB-1633 (Ting) - Housing Accountability Act: disapprovals: California Environmental Quality Act.

Status: Chapter 768, Statutes of 2023
Landlord - Tenant and Fair Housing
SB-395 (Wahab) - Leases: notice of termination or rent increase: statewide database.

Creates the Transparency in Rental Reporting Act which requires landlords to file copies of notices of termination and notices of rent increases with the Secretary of State within 10 days of serving the notices on tenants. The bill also requires the Secretary of State to create and maintain a publicly available, searchable database called the Statewide Rental Reporting Database to, among other things, compile all those notices received from landlords and to adopt regulations for those purposes.

Status: Senate – Appropriations Committee
SB-466 (Wahab) - Costa-Hawkins Rental Housing Act: rental rates.

Gives local jurisdictions the option to limit the amount that residential landlords can raise the rent each year for housing that is more than 28 years old.

Status: Senate – Inactive File
SB-567 (Durazo) - Termination of tenancy: no-fault just causes: gross rental rate increases.

Makes a series of revisions to existing statewide protections against eviction without just cause and provides enforcement mechanisms for the violation of statewide restrictions on residential rent increases and statewide protections against no fault evictions.

Status: Chapter 290, Statutes of 2023
Local Housing and Infrastructure Finance
SB-20 (Rubio) - Joint powers agreements: regional housing trusts.

Authorizes two or more local agencies to enter into a joint powers agreement to create a regional housing trust to fund housing for people experiencing homelessness and persons and families of extremely low-, very low-, and low-income within their jurisdictions.

Status: Chapter 147, Statutes of 2023

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SB-143 (Committee on Budget and Fiscal Review) - State government. (1) Requires CalHFA, in consultation with the Treasurer, the Legislature, and other relevant stakeholders, to evaluate options, including the issuance of revenue bonds, general obligation bonds, or other debt instruments, to finance the California Dream for All Program, and to submit a report to the Legislature on or before March 1, 2024, about these options, as well as a review of the program terms and parameters and adjustments designed to achieve specified program improvements, including targeting funds to aid first-generation homebuyers.

SB-440 (Skinner) - Regional Housing Finance Authorities.

Authorizes two or more local governments to establish a regional housing finance authority to raise, administer, and allocate funding for affordable housing and provide technical assistance at a regional level for affordable housing development.

Status: Assembly – Appropriations Committee
AB-1528 (Gipson) - Housing authorities: property taxation.

Makes clear that property held by a nonprofit public benefit corporation that is controlled by a public housing authority is included in the existing exemption from taxation.

Status: Chapter 766, Statutes of 2023
Manufactured Housing and Mobilehomes
AB-318 (Addis) - Mobilehome Residency Law Protection Act.

Extends the sunset on the Mobilehome Residency Law Protection Program, which provides for the administrative review and referral of complaints alleging violations of the Mobilehome Residency Law, from January 1, 2024 to January 1, 2027, and makes several changes to the program, as specified.

Status: Chapter 736, Statutes of 2023
AB-319 (Connolly) - Mobilehome Parks Act: inspectors: conflict of interest:
enforcement actions: sunset.

Extends the sunset date on the Mobilehome Parks Maintenance inspection program by one year, and requires HCD to establish policies related to conflict of interest reporting for mobilehome park inspectors.

Status: Chapter 737, Statutes of 2023
Miscellaneous
SB-555 (Wahab) - Stable Affordable Housing Act of 2023.

Creates the Stable Affordable Housing Act of 2023 for the purposes of studying the development of social housing through a mix of acquisition and new production.

Status: Chapter 402, Statutes of 2023

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SB-620 (McGuire) - Low-impact camping areas.

Exempts “low-impact camping areas,” as defined, from the Special Occupancy Parks Act and establishes minimum health and safety requirements for low-impact camping areas.

Status: Assembly – Appropriations Committee
AB-911 (Schiavo) - Unlawfully restrictive covenants: affordable housing.

Status: Chapter 750, Statutes of 2023
AB-1474 (Reyes) - California Statewide Housing Plan.

Adds veterans to the list of population groups that HCD must consider in the Statewide Housing Plan, and adds the Department of Veterans Affairs to the list of state departments HCD must consult with in the development of the state’s housing strategy.

Status: Chapter 762, Statutes of 2023
AB-1508 (Ramos) - Department of Housing and Community Development:

California Statewide Housing Plan.

Requires HCD to incorporate analyses of first-time homebuyer assistance programs, recommendations to increase homeownership opportunities for first-time homebuyers, and a demographic disparities in homeownership attainment in future updates to the Statewide Housing Plan.

Status: Chapter 765, Statutes of 2023
State Housing Programs and Finance
SB-37 (Caballero) - Older Adults and Adults with Disabilities Housing Stability Act.

Establishes the Older Adults and Adults with Disabilities Housing Stability Program, administered by HCD, to provide housing subsidies to older adults and adults with disabilities who either are experiencing or at-risk of experiencing homelessness.

Status: Senate – Appropriations Committee
SB-341 (Becker) - Housing development.

Specifies that additional points or preference resulting from a prohousing designation shall be awarded only for the qualifying infill area portion of the Infill Incentive Grant Program (IIG) of 2007 and adds the qualifying infill area and catalytic qualifying infill area portions of the IIG of 2019 as one of the specified state programs for which additional points or preference is awarded due to a prohousing designation.

Status: Chapter 777, Statutes of 2023

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SB-469 (Allen) - Housing: publicly funded low-rent housing projects.

Provides that requirements in Article 34 of the California Constitution do not apply to housing developments that receive funding from specified state housing programs.

Status: Chapter 179, Statutes of 2023
SB-482 (Blakespear) - Multifamily Housing Program: supportive housing:
capitalized operating reserves.

Requires HCD to offer capitalized operating reserves to supportive housing units developed under the Multifamily Housing Program.

Status: Chapter 780, Statutes of 2023
SB-834 (Portantino) - Housing: California Family Home Construction and Homeownership Bond Act of 2023.

Authorizes $25 billion in general obligations bonds through the California Family Home Construction and Homeownership Bond Act of 2022 to fund second mortgages and construction of for-sale housing.

Status: Assembly – Housing and Community Development Committee AB-671 (Ward) - CalHome Program: accessory dwelling units.

Revises the CalHome program to allow for greater flexibility in grant funding and to update resale requirements of units developed under the program.

Status: Chapter 746, Statutes of 2023
AB-1053 (Gabriel) - Housing programs: multifamily housing programs:
expenditure of loan proceeds.

Allows a borrower to request funding from HCD as a construction loan, the traditional permanent financing option, or a combination of both.

Status: Senate – Appropriations Committee
AB-1285 (Wicks) - Homeless Housing, Assistance, and Prevention program and Encampment Resolution Funding program.

Status: Chapter 727, Statutes of 2023

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AB-1386 (Gabriel) - Veterans housing: tenant referrals.

Authorizes entities referring veterans to deeply affordable housing units funded by the Veterans Housing and Homelessness Prevention Program or tax credits and private activity bonds to refer veterans at higher income levels if units are unable to be filled at a lower income threshold for specified time periods.

Status: Chapter 760, Statutes of 2023
AB-1474 (Reyes) - California Statewide Housing Plan.

Status: Chapter 762, Statutes of 2023
AB-1508 (Ramos) - Department of Housing and Community Development:

California Statewide Housing Plan.

Status: Chapter 765, Statutes of 2023
AB-1657 (Wicks) - The Affordable Housing Bond Act of 2024.

Enacts the Affordable Housing Bond Act of 2024, which authorizes the sale of $10 billion in general obligation bonds, upon approval by voters at the March 5, 2024 statewide election for purposes of funding specified affordable housing programs.

Status: Senate – Appropriations Committee
Surplus Properties
SB-229 (Umberg) - Surplus land: disposal of property: violations: public meeting.

Requires a local agency to hold an open and public meeting if it has been notified by HCD that its planned disposal of a parcel is in violation of SLA.

Status: Chapter 774, Statutes of 2023
SB-240 (Ochoa Bogh) - Surplus state real property: affordable and transition housing.

Adds transitional housing projects intended for formerly incarcerated individuals as a priority in the disposal of state surplus land and provides that these projects are a use by-right.

Status: Chapter 775, Statutes of 2023

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AB-457 (Joe Patterson) - Surplus Land Act: exempt surplus land: leases.

Creates an exemption from SLA for parcels abutting a state highway right-of-way that a local agency identified in its circulation element or capital improvement plan for future roadway development.

Status: Senate – Floor
AB-480 (Ting) - Surplus land.

Amends SLA, including changing the penalty provisions for violations, the authority for HCD, and the disposal process.

Status: Chapter 788, Statutes of 2023
AB-1734 (Jones-Sawyer) - Local Government: Surplus Land Act:
exemptions.

Exempts certain housing and homelessness projects from SLA in local agencies that have declared a local homelessness emergency and meet other requirements.

Status: Chapter 769, Statutes of 2023

21.40 March 5, 2024 Statewide Ballot Measures
Proposition 1 (which is a combination of AB 531 and SB 326 from 2023 legislative session) Specifically, Proposition 1 does the following:

Revises and recasts the Mental Health Services Act (MHSA) as the Behavioral Health Services Act (BHSA). The proposal would clarify that county behavioral health programs are permitted to use BHSA funds to treat primary substance use disorder conditions and makes conforming changes throughout the BHSA. SB 326 which is a component of Proposition 1 restructures current MHSA funding buckets. It enhances the current process for local planning of various services funded by the BHSA, and for oversight, accountability, and reporting of BHSA funds.

Proposition 1 also creates the Behavioral Health Infrastructure Bond Act of 2024 (Bond) and would authorize $6.380 billion in general obligation (GO) bonds to finance permanent supportive housing for veterans and others, as well as, unlocked and locked behavioral health treatment and residential settings for individuals experiencing homelessness or at risk of homelessness with severe behavioral health challenges. Allows for by right streamlined, ministerial review for capital projects funded by the bond. The funding categories and policy changes within the bond are as follows:

1. Authorizes $6.380 billion, subject to voter approval, in bond funds to be expended as follows:
a) $1.05 billion for loans or grants to develop supportive housing for veterans experiencing or at risk of homelessness with behavioral health challenges, administered by the Department of Housing and Community Development (HCD) and the Department of Veterans Affairs (CalVet);
b) $922 million for loans or grants to develop supportive housing for people experiencing or at risk of homelessness with behavioral health challenges, administered by HCD;
c) $1.5 billion to be awarded to counties, cities and tribal entities for grants for behavioral health treatment and residential settings eligible under the Behavioral Health Continuum Infrastructure Program (BHCIP), of which $30 million is designated to tribal entities; and
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21.41 d) $2.893 billion for grants for behavioral health treatment and residential settings authorized under BHCIP, to be administered by the Department of Health Care Services (DHCS).

2. Provides that a housing project funded by bond funds for permanent supportive housing for veterans and other individuals experiencing homelessness with behavioral health challenges shall be a use by right and subject to a streamlined, ministerial review process if it meets, among other things, the following criteria:
a) It is located in a zone where multifamily residential use, office, retail, or parking are a principally permitted use;
b) It is not on a specified environmentally sensitive site; c) Is not on a site or adjoined to any site where more than a third of the square footage on the site is dedicated to industrial use;
d) The development meets specified objective standards; e) The project meets specified labor standards; and
f) No housing units were obtained by eminent domain.

3. Creates a by right, streamlined approval process, not subject to a conditional use permit, discretionary permit, or any other discretionary review for the following behavioral health treatment and residential settings funded by the Bond, as follows:
a) Children’s residential crisis programs, peer respite, children’s and adult substance use disorder residential programs, recovery housing, short-term residential therapeutic programs, and social rehabilitation programs on sites zoned where residential, office, retail, or parking are a principally permitted use; and b) Projects that are real estate assets, as defined under BHCIP, on zones where office, retail, or parking are a permitted use.

4. Requires projects as applicable to comply with the core components of Housing First, including recovery housing, which must comply with U.S. Department of Housing and Urban Development (HUD) guidance.

21.42 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
October 31, 2023
Holland & Knight Alert
Chelsea Maclean | Daniel R. Golub | Kevin J. Ashe | William E. Sterling | Deborah Brundy Highlights
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 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)
AB 1307 (residential noise impacts) Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.43 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) 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)
Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.44 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 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)).

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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.45 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 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 with a nonprofit corporation, as specified; or a 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 moderate-income 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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.46 is no larger than 5 acres, and meets numerous other qualifying 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 single-family 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.

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 reuse as an eligible project for affordable housing 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. Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.47 AB 1114 (Assembly Member Matt Haney) and AB 281 (Assembly Member Tim Grayson) – Reforms to Post-Entitlement Permitting. In 2022, the Legislature established enforceable timelines and procedures for cities and counties when issuing ministerial post-entitlement 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 post-entitlement 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.

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.

It is "proximal" to six or more amenities (bus stations or ferry terminals, grocery stores, parks, community centers, pharmacies, clinics or hospitals, libraries or schools).

3. 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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.48 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."
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 off-site 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 long-range 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 one-half 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 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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.49 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 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 very-low 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 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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.50 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 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.

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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.51 Development Commission (BCDC). SB 272 requires sea-level 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.

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 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 owneroccupancy conditions on ADU projects permitted after Jan. 1, 2025. Local agencies are still required to impose owneroccupancy 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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.52 state.

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 single-family residential zones; 2022's SB 6, which allows residential development in certain commercial zones; the so-called "five hearing rule" applicable to code-compliant 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 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.

The law's amendments include a number of clarifications that aim to address confusion arising from implementation of Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.53 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 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 Zenovich-Moscone-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 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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.54 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 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
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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.55 "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 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 long-term 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.

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 Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.56 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.

Chelsea Maclean is a California attorney in Holland & Knight's West Coast Land Use and Environment Practice Group who counsels clients on all aspects of land use development. 415.743.6979 | [email protected]
Daniel R. Golub is an attorney in the West Coast Land Use and Environment Group in Holland & Knight's San Francisco office. Mr. Golub brings nearly a decade of policy, planning and political organizing experience to his practice, as well as litigation experience gained during an 18-month clerkship for the Honorable Jon S. Tigar of the U.S. District Court for the Northern District of California. 415.743.6976 | [email protected]
Kevin J. Ashe is an attorney in Holland & Knight's Newport Beach office and a member of the firm's West Coast Land Use and Environmental Group. Mr. Ashe's practice focuses on energy regulatory, environmental and land use law, with a particular emphasis on the permitting, development and disposition of traditional and renewable energy projects. 415.743.6972 | [email protected]
William Sterling is a litigation attorney in Holland & Knight's San Francisco office with experience in land use and environmental law and intellectual property matters. In his work with the West Coast Land Use and Environmental Group, Mr. Sterling's practice focuses particularly on enforcement of and compliance with California's recently-strengthened housing laws, including the Housing Accountability Act (HAA), the Housing Crisis Act of 2019 (SB 330) and California State Density Bonus Law. Mr. Sterling's practice is supported by his extensive experience litigating cases in state and federal court, and before various administrative bodies. Mr. Sterling has particular experience with motion practice, fact and expert discovery, claim construction proceedings, summary judgment briefing and all aspects of trial. 617.305.2024 | [email protected]
Deborah Brundy is an attorney in Holland & Knight's San Francisco office and a member of the firm's West Coast Land Use and Environmental Group. Ms. Brundy focuses on land use, housing and environmental law, including climate change and wildfire regulation. Her experience includes California Environmental Quality Act (CEQA) compliance and litigation, development project due diligence, entitlement applications, project appeals and other land use matters. 415.743.6983 | [email protected]
Attorney Advertising. Copyright © 1996–2023 Holland & Knight LLP. All rights reserved. 21.57 State of California
Legislation Update
City Council
February 13, 2024

21.58 Legislation Background
“California has a housing supply and affordability crisis of historic proportions.” – Housing Accountability Act
Unmet housing backlog in California of nearly 2,000,000 homes in 2017
129 Housing-related bills passed since 2017

21.59 Housing Accountability Act - 2017 Amendment (SB 167) The Legislature’s intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled.

21.60 Housing Accountability Act - 2017 Amendment (SB 167) • Significantly strengthened the HAA
• Reduced the power of jurisdictions to deny or place
conditions on a project that renders it infeasible
• Review standards are set at time application deemed
complete

21.61 Additional HAA Amendments
AB 3194 (2018)
• Required consistency between Zoning Ordinance and General Plan development standards
• Where inconsistent, the standard that allows for greater housing is to be used’ SB 330 (2019) – Housing Crisis Act of 2019
• Objective standards for development review
• Prohibits reducing intensity of land use (no net loss) • Prohibits housing moratoriums, housing caps, or delay of approvals • Tenant protections such as replacement units, relocation benefits, and first right of refusal for displacement caused by Housing Development Projects

21.62 Affordable Housing Streamlining (2017’s SB 35)
• Streamlined review process for qualifying housing projects that meet affordability percentage
• Set review times, limited public meetings, no California Environmental Quality Act (CEQA)
• Based on Regional Housing Needs Allocation (RHNA)

21.63 Accessory Dwelling Units Legislation
AB 68, AB 881, SB 13 (2019)
• Streamlined approval, removed parking requirements,
increased square footage allowed, removed lot coverage
requirements, decreased setback requirements
AB 2221 (2022)
• Reducing minimum setbacks, allowing front yard
development, increasing height limits

21.64 Other Important Recent Legislation
AB 2345 (2020)
• Increased market-rate project Density Bonus maximum to 50%’ SB 9 (2021)
• Two homes and lot splits in single-family zones
AB 2097 (2022)
• No minimum parking requirement near transit

21.65 2023 Legislation

21.66 Housing Production
AB 1287
• Additional Density Bonus for market-rate development up to 100% • Additional 50% only through Moderate and Very-Low Income Affordability
SB 4
• By-right approval of affordable housing on church and school sites SB 423
• Extension and expansion of SB 35 to 2036 and into Coastal Zone SB 684
• Ministerial approval of up to 10-unit projects in multi-family zoning

21.67 California Environmental Quality Act
AB 1307
• Residential noise not an impact under CEQA
AB 1449
• CEQA Exemption for 100% affordable housing
AB 1633
• Projects that qualify for a CEQA exemption are entitled to an exemption • Local government must certify EIR if there is substantial evidence to support the certification
SB 439
• Heightens standard for CEQA challenge of 100% affordable project

21.68 Accessory Dwelling Units
AB 1332
• Streamlined 30-day review of preapproved ADU plans
AB 976
• ADU Owner-occupancy requirement prohibition extended
beyond 2025
AB 1033
• ADUs can be sold separately as condos at City discretion

21.69 Additional Legislation
AB 821
• Resolving of General Plan and Zoning Conflicts if
necessary
AB 1218
• Extending SB 330’s tenant protection provisions to
commercial development proposals as well

21.70 State of California
Legislation Update
City Council
February 13, 2024

21.71

Santa Cruz City CouncilFebruary 13, 2024

Santa Cruz City Council
February 13, 2024