California is home to some of the priciest housing markets in the country, with many residents teetering on the edge of housing instability. The state’s escalating housing crisis demands immediate and long-term strategies that focus on affordability and accessibility. A new set of housing laws, recently signed by Governor Gavin Newsom, aims to provide solutions by fostering more affordable housing and encouraging denser, transit-oriented developments. Below, we explore the most significant pieces of legislation enacted or vetoed that could shape the future of California’s housing landscape.
1. Assembly Bill 1893: Revamping the Builder’s Remedy
One of the most talked-about new laws, Assembly Bill 1893, addresses the controversial ‘Builder’s Remedy,’ which previously allowed developers to bypass local zoning regulations in cities without an approved housing plan. While the Builder’s Remedy was meant to encourage cities to comply with state housing mandates, it had become a loophole that allowed developers to bypass restrictions on lot size, setbacks, and building heights. This bill tightens the scope of the Builder’s Remedy by imposing new site restrictions, limiting density, and setting clearer standards for development projects. Though the law reduces affordability requirements in some cases, it also offers explicit protection to developers from legal blockages, making it a pivotal reform to help ease development delays.
2. AB 2243: Accelerating Approvals for Housing Projects Near Major Infrastructure
AB 2243 makes it easier for developers to transform spaces like malls and land near highways into housing. Expanding a 2022 law, it introduces streamlined approval processes for properties located within 500 feet of freeways or on regional mall sites up to 100 acres. To address environmental concerns, the bill requires that projects include centralized ventilation systems. Moreover, it prevents local governments from imposing density caps on adaptive reuse projects, opening the door for the construction of new residential units in spaces that were previously underutilized or abandoned.
3. AB 3093: Prioritizing Affordable Housing for Low-Income Households
AB 3093 expands the requirements for local housing plans, mandating that cities and counties must include housing for households making up to 15% and 30% of the area median income (AMI). This bill ensures that housing projects accommodate the lowest-income families, a group highly vulnerable to homelessness. As noted by the Los Angeles Times, the previous threshold allowed for housing developments targeting individuals making up to 49% of local income. This update shifts the focus toward supporting the most at-risk communities.
4. Senate Bill 1037: Strengthening Enforcement of Housing Regulations
To improve accountability, Senate Bill 1037 introduces hefty penalties for jurisdictions that fail to comply with state housing regulations. Cities that continue to flout the state’s housing mandates can face fines of up to $50,000 per month. These fines will be redirected to fund income-restricted housing in the affected communities, providing both a financial disincentive for non-compliance and additional resources for affordable housing development.
5. AB 2347: Extending Time for Tenants to Respond to Eviction Notices
In an effort to protect tenants facing eviction, AB 2347 doubles the time allowed for tenants to respond to eviction notices—from five to ten business days. This extension is crucial for tenants who often lack the resources or time to mount an effective legal defense. Research indicates that nearly 40% of tenants lose their eviction cases by default due to insufficient response time. While this bill extends tenants’ protection, it also shortens the timeframe for attorneys to file certain legal motions, balancing tenant protections with procedural efficiency.
6. AB 2580: Limiting Historic Preservation as a Housing Barrier
AB 2580 addresses the misuse of historic designations to halt housing projects. While historic preservation is vital for maintaining California’s architectural heritage, some cities have used it to block housing developments, creating barriers to the state’s housing goals. This bill requires cities to submit reports demonstrating how new historic designations will affect local housing supply. By increasing transparency and accountability, it prevents the overuse of preservation tools to hinder growth.
7. Vetoed Bills: What Didn’t Make the Cut
Governor Newsom vetoed several housing-related bills, including AB 3068, which would have mandated by-right approval for office-to-residential conversions in urban areas, and AB 2903, aimed at tightening state oversight of homelessness funding. Newsom’s vetoes were based on concerns about labor enforcement mechanisms in AB 3068 and the redundancy of AB 2903, stating that local governments, not state programs, should take responsibility for more rigorous oversight of their homelessness initiatives.
8. A Comprehensive Approach to Housing Reform
In total, the California Legislature passed 32 new laws this session related to housing and land use. These laws represent a multifaceted approach to tackling the state’s housing crisis, from promoting higher-density, mixed-use neighborhoods to expanding tenant protections. By clarifying existing laws, addressing long-standing barriers to housing development, and promoting responsible growth, these reforms have the potential to significantly alleviate housing pressure across the state.
California’s housing crisis is complex, but with these new laws, the state is making meaningful strides toward a more affordable and sustainable future for all its residents.
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