Housing issues again dominated the Legislature’s action on planning and development issues this year. About 30 bills were sent to Gov. Gavin Newsom after the end of the legislative session on August 31. Newsome has already signed two bills and has until the end of September to decide whether to sign the rest. CP&DR will update its legislative coverage once Newsom acts on all the bills, but he’s unlikely to veto many.

The bills deal with a wide variety of issues, including builder’s remedy, accessory dwelling units, housing elements, impact fees, and the California Environmental Quality Act. Some clean up, clarify, or extend major housing bills from past years such as SB 35. But unlike in past years, there do not appear to be any bills that make huge changes.

Here’s a rundown of some of the important bills the Legislature has sent to Newsom:

Housing Elements and Builders Remedy

Housing elements are among the most contentious planning issues in California – especially the question of whether local governments or the Department of Housing & Community Development have the final say as to whether they are compliant with state law. That issue is currently pending in several court cases, most notably a high-profile case from La Cañada Flintridge that is currently pending in the appellate courts.

Two bills before Newsom now would essentially take the bat out of local government’s hands. The first is AB 1886, which says that a housing element is compliant with state law only if HCD or a court says so. The second is a companion bill, AB 2023, which would create the “rebuttal presumption” in court that local government approval of a housing element does not automatically mean the housing element is compliant.

Another bill, AB 3093, would codify the recommendations of an HCD report to add two new categories of low-income housing to the mix in housing elements in order to account for homelessness. (CP&DR’s previous coverage of the HCD recommendations can be found here.)

SB 1037 would create civil fines ranging from $10,000 to $50,000 per month to be imposed on cities and counties in housing element enforcement actions when those local governments are engaged in egregious behavior. That bill is clearly aimed at cities like Huntington Beach, which is engaged in a long-running battle with Attorney General Rob Bonta over its housing element.

In addition, AB 1893 boxes in the definition of a project that qualifies for the builders remedy, boxing in the amount of increased density permitted among other things. (CP&DR’s prvious coverage of AB 1893 can be found here.)

And on the whole question of the Regional Housing Needs Assessment, SB 7 takes away the power of local governments to object to regional housing needs determinations.

Accessory Dwelling Units

At least three bills dealing with ADUs are sitting on the governor’s desk. These include:

  • SB 1211, which increases the number of ADUs permitted on a property from two to eight.
  • AB 2533, which expands amnesty for unpermitted ADUs
  • SB 1077, which requires the Coastal Commission to issue guidance that would make ADUs in the coastal zone easier to permit and build.

CEQA

Newsom has already signed SB 174, a trailer bill that exempts the Capitol Annex project in Sacramento. The state has been criticized for exempting its own construction project but not anybody else’s. (CP&DR’s previous coverage of SB 174 can be found here.)

Other CEQA bills of significance include

  • AB 3057, which provides a CEQA exemption for junior ADUs in single-family neighborhoods. (A junior ADU is typically no more than 500 square feet and attached to the host single-family home.)
  • SB 347 exempts electric vehicle charging stations from CEQA.
  • AB 2199 extends the deadline for the infill exemption in unincorporated areas from 2025 to 2043.

Impact Fees

The YIMBY movement has targeted impact fees as an impediment to more housing, while cities and counties regard impact fees as critical to financing infrastructure for new development. Bills passed by the Legislature this year include:

  • AB 1820, which requires local governments to provide fee estimates prior to construction.
  • A related bill, AB 3012, which requires local governments to post a fee calculator on their web sites.
  • SB 937, which permits delay of impact fee payments until construction. Newsom has already signed this bill.
  • AB 3177, which makes it more difficult to use the Mitigation Fee Act to obtain land for road widenings.

Ministerial Approval

The Legislature has made a major effort in recent years to expand the use of ministerial approvals in order to speed the entitlement process and end-run CEQA. This year, the Legislature passed at least two bills that would build on these past efforts:

  • AB 2085 requires ministerial approval of reproductive health clinics in certain zones.
  • AB 3068 requires ministerial approval of adaptive reuse projects that meet certain standards for historic resources.