2023 Housing Law Update
November 13, 2023
Disclaimer
This PowerPoint presentation is provided for informational purposes only and is not intended to be, and should not be construed as, legal advice. The information presented herein is general in nature and may not apply to your specific circumstances. Legal principles and regulations vary by jurisdiction and may change over time.
Housing Laws 2023
Overview: The 2023 California Legislative session witnessed the passage of numerous impactful housing production laws.
Presentation: This presentation delves into some of the most noteworthy housing laws enacted by the Legislature and signed into law by Gov. Gavin Newsom.
Major Categories Include:
Streamlining
Environmental (CEQA)
Density, Land Use, and Planning
Accessory Dwelling Units
Affordable Housing
Enforcement
Part I –Project Streamlining
SB 423
Extension and Expansion of Streamlined Ministerial Approval Law for Affordable Projects Consistent with Objective Zoning Rules under SB 35 (2017).
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 most California jurisdictions that have not met their regional housing goals.
To qualify for the ministerial process, a project must meet a long list of requirements related to being an “infill” site, pay prevailing wage, and meet affordability requirements.
SB 423 (Continued)
SB 423 Expands SB 35 is several ways
Extends the “Sunset” from 2026 to 2036 (10 more years)
Reduction in Labor Requirements:
- No more “skilled and trained workforce” labor requirements, except for projects greater than 85 feet in height - Projects less than 10 units, no prevailing wage
- Projects less than 50 units, no apprenticeship training
SB 423 (Continued)
SB 4
By-Right Approval for Affordable Housing on Land Owned by Religious Organizations and Higher Education Institutions Closely follows the general requirements for SB 35 (CEQA-exempt, time limited, etc.) for affordable housing projects
APPROVAL EVEN IF INCONSISTENT WITH GENERAL PLAN / ZONING
SB 4 (Continued)
To Qualify:
Development must be on land owned by religious institution / higher education Developer must be a local entity, nonprofit, developer contracted with a nonprofit or developer of housing that has previous work with the religious / education institution Housing must be deed restricted to lower-income households, 20% may be for moderate and 5% for staff of the religious / educational institution
SB 4 (Continued)
To Qualify:
More than 10 Units – Prevailing Wage (exceptions for CBAs) More than 50 Units – Apprenticeship Program
Projects must comply with requirements to ensure project is “infill” and avoid demolition of existing housing Law sunsets in 2036
SB 684
Ministerial Approval of Up to 10-Unit Housing Projects on Small Sites CEQA-exempt ministerial approval for up to 10 units on less than 5 acres (no discretionary review or public hearing). Includes parcel maps, tentative/final maps, certain restrictions apply to ensure true infill, water/sewer supply and no demolition of existing housing.
Exempt from minimum property size, width, depth, or dimensions (600 sf min lot size).
Housing projects and building permits must also be approved ministerially. Cannot apply density standards that would preclude lower income housing, and applying certain setback, parking, FAR, and other development standards.
SB 684 (Continued)
AB 1490
Adaptive Reuse for Affordable Housing is a permitted use for affordable housing projects even if in conflict with local zoning, general plan, or other land use controls.
Must be entirely within an existing residential/commercial building that currently allows for transient occupancies (aka, motels/hotels).
All units must be dedicated to lower income, with at least 50% to very low income.
Must be 75% surrounded by urban uses and within ½ mile of rail, bus rapid transit, or the intersection of two bus routes with 15-minute service or better.
AB 1490 (Continued)
AB 1114
Part II – Environmental (CEQA Reform)
AB 1633
CEQA Reform for Infill Housing to crack down on excessive CEQA review practices that are weaponized against residential development.
Does not amend CEQA.
AB 1633 adds two violations to the Housing Accountability Act (adds City liability).
Violation #1 – To fail to determine a project is exempt under AB 1633. Protest procedure against City’s decision to require environmental review.
Violation #2 – To holding a meeting to consider an EIR or similar documental but decline to approve if protected by AB 1633.
AB 1633 (Continued)
Applies to projects that are within an urbanized area and meet one of the following:
Is within ½ mile of a high-quality transit corridor or major transit stop Located in a very low vehicle travel area
Is proximal to 6+ amenities (bus stations, grocery stores, community centers, pharmacies, clinics, libraries, schools) Adjoined on 3 of 4 sides by parcels with urban uses
AB 1633 (Continued)
Other Laws
AB 1449 Affordable Housing CEQA Exemption for legislative acts, such as general plan amendments and rezonings, leases, and financing SB 406 Expands Financial Assistance CEQA Exemption from HCD / CalHFA finances to when local agency not acting as lead agency is providing funding’ SB 91 Extends indefinitely the Motel Conversion CEQA Exemption AB 356 Extends to 2029 the Dilapidated Building Refurbishment CEQA exemption SB 149 Modifies the process for preparing the administrative record on CEQA cases. Will lead to faster record preparation on housing projects but potentially at higher costs to the public agency
Part III – Density, Land Use & Planning
AB 1287
AB 821
Creates Local Agency Obligation to Resolve General Plan and Zoning Conflicts Requires City to amend Zoning Code within 180 days when receives development application that is consistent with the general plan but not the zoning code or process without regard for the zoning standards
AB 529
Adopts Building Code Updates for Adaptive Reuse Projects Facilitates conversion of office (or other use) buildings to residential by encouraging grants to cities that allow for adaptive reuse Requires Building Standards Commission to consider standards in next code cycle
Part IV – ADUs
AB 1033
Local agencies are not authorized (but not required) to adopt local ordinances allowing ADUs to be conveyed as condominiums separate from the primary dwelling
AB 976
AB 1332
Part V – Affordable Housing
Affordable Housing Bills
SB 439 – Provides a new special “Motion to Strike” in lawsuits challenging affordable housing. This new procedural motion is similar to the motion to strike in “Anti-SLAPP” cases. Allows developers/cities to use “motion to strike” on any challenge to an approval or permitting for an affordable project.
AB 812 - Authorizes governments to impose, as a condition of approval, a reservation of up to 10% of affordable housing for “artist housing” when within ½ mile of a “cultural district.”
Affordable Housing Bills (Continued)
Constitutional Amendments (November 2024 Ballot) – Senate Constitutional Amendment No 2 – Repeals Art. 34 of the California Constitution and Assembly Constitutional Amendment No 1 – Lowers Voter Threshold for Affordable Housing Bonds AB 1218 - Revisions to Requirements for Replacement Units and Relocation Benefits Applicable to Demolition of Protected Housing
Part VI – Enforcement
AB 434
AB 434 (Continued)
The following state housing laws are now also enforceable by HCD:
Laws related to streamlining approvals for ADUs / Condo sales 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 2023’s SB 684, requiring ministerial approval of certain small multifamily infill projects 2023’s SB 4, concerning ministerial approval of affordable housing on religious sites 2023’s AB 1218, addressing replacement of demolished housing units
End of Presentation