RECENT KEY DEVELOPMENTS IN PLANNING, HOUSING AND CEQA LEGISLATION FOR 2025

by on December 31, 2024

Co-author: Jillian Martins,

posted in Administrative Regulations, CEQA, Code Enforcement, Employment Law, Legislative Updates, Uncategorised, Zoning,

Unless otherwise stated, all bills are effective January 1, 2025, and do not require an implementing ordinance to take effect. Please note, that the California Department of Housing and Community Development (“HCD”) is expected to release guidelines for some of the new housing laws. Our office will continue to update you as information is provided.

ZONING AND PLANNING

Zoning Ordinance Notice (Assembly Bill 2904) –  Increases the notice period to 20 calendar days – Mandatory [Passed Sept. 27, 2024]

Assembly Bill 2904 (“AB 2904”) extends the notice period for public hearings on zoning ordinance changes affecting permitted property uses from 10 days to 20 days.

The standard 10-day notice remains for changes that do not alter property use.

Electric Vehicle Charging Stations (Assembly Bill 2427) – Mandatory – Effective January 1, 2029 [Passed Sept. 25, 2024]

  1. The law requires the Governor’s Office of Business and Economic Development (GO-Biz) to develop model permitting checklists, model zoning ordinances, and best practices for local governments to facilitate curbside charging.
    1. The law requires local governments to develop comprehensive installation checklists and identify all applicable fees and location-selection criteria for potential developers of curbside charging. Checklists must provide:
  2. Information required for complete application;
  3. All of the fees and charges associated with such an application; and
  4. Criteria to determine appropriate locations within public right of way for installation of electric vehicle charging stations.

The checklist must be published on the website, even if the local government determines NO appropriate locations exist in public right of way for installation of curbside charging stations.

In addition, AB 2427 requires local agencies to consider GO-Biz’s Electric Vehicle Charging Station Permitting Guidebook when creating their process for approval. GO-Biz must also develop a model permitting checklist, model zoning ordinances, and best practices for permit costs and permit review timelines to help local governments create or refine their process to permit curbside charging stations.

These requirements must be implemented by January 1, 2029.

Hydrogen Fueling Stations; SB 347

Thrift Retail Stores (Assembly Bill 2632) – Mandatory [Passed Sept. 27, 2024]

Assembly Bill 2632’s (“AB 2632”) prohibits local governments from treating thrift retail establishments differently than non-thrift retail establishments for zoning, land use, approval, and development purposes and from receiving used or donated items for sale in that or another store.

“Thrift retail store” is defined as a retail store and related donation facilities engaged primarily in the sale of secondhand clothing, shoes, apparel, toys, and standard household goods, including furniture, fixtures, and small household appliances, and the collection of those goods for resale but does not include the sale of large household appliances such as refrigerators or stoves or the sale of cars or anything automotive-related.

However, a city may require: 

  1. That thrift retail stores meet certain aesthetic or design standards.
  2. That the delivery of goods or donations is conducted within a specified area of the store’s premises.
  3. That donations be accepted only during business hours.
  4. That the donation process is operated by employees of the store and that the donations of goods from the public are collected and received by employees of the thrift retail store.
  5. Limits on the size of the area within which collecting and receiving activities are conducted.
  6. Limits on operation of equipment associated with the collection, receipt, processing, or disposal of used and donated goods.
  7. Enforce health and safety standards including, but not limited to, those relating to shopping center ingress and egress or the enforcement of illegal dumping.

Reproductive Health Services (Assembly Bill 2085) – Voluntary [Passed Sept 28, 2024]

Assembly Bill 2085 (“AB 2085”) aims to address the lack of reproductive health services in certain areas by establishing a streamlined, ministerial approval process for community clinics offering reproductive health services.

Local governments shall grant administrative nondiscretionary approval if it meets specified standards, including but not limited to the following:

  1. The development is within a zone where office, retail, health care, or parking are the principal permitted use.
  2. The development is for a community clinic licensed (Health & Safety Code § 1204) that provides reproductive health services (Penal Code § 423.1(f)).
  3. The development meets all of the city’s objective design review standards.
  4. The development would not require demolishing a historic structure placed on a national, state, or local historic register.
  5. It is not likely to have adverse impacts on tribal cultural resources.
  6. The development would not require the demolition of housing.

Local agencies have 60 days to approve or deny development applications with written explanations for any conflicts with planning standards. Developers may address these conflicts, and the agency has another 60 days to reassess after resubmission. Local agencies may agree to grant an extension of any time as specified.

HOUSING ELEMENTS

Regional Housing Needs Allocation (“RHNA”) Allocation Process (Senate Bill 7) – Mandatory [Passed Sept. 19, 2024]

Senate Bill 7 (“SB 7”) seeks to streamline the regional housing needs allocation process by removing objections from local governments and simplifying the methodology for housing needs determination. The bill mandates expanded public input and a reduction in review times from 90 days to 45 days to expedite the implementation of housing strategies.

SB 7 pertains to the Planning and Zoning Law, which mandates that each city and county in California adopt a comprehensive general plan, including a housing element. The housing element addresses the regional housing needs determined by the Department of Housing and Community Development (HCD) in consultation with local councils of governments (COGs). The current law outlines a process where local agencies may file objections to the regional housing need determinations made by HCD.

Key Provisions of SB 7:

  1. SB 7 prohibits cities or counties from filing objections to the regional housing need determination made by the HCD (Gov. Code § 65584.01).
  2. Repeal of Alternative Process: The bill removes the alternative process for determining regional housing needs for the 4th and subsequent revisions of the housing element. This streamlines the methodology for determining housing needs in each region.
  3. Expansion of Public Participation:SB 7 expands the requirement for public participation in the development of the regional housing needs allocation methodology. Specifically, it mandates that participation be solicited from households with special housing needs, in addition to the current requirement for input from local jurisdictions and other stakeholders (Gov. Code § 65584.04).
  4. SB 7 reduces the time the HCD has to review the allocation methodology and report its findings to 45 days, down from 90 days under the current law. This change aims to expedite the process (Gov. Code § 65584.04).
  5. Changes to Draft Allocation Procedure: Councils of Governments (COGs) must distribute the draft allocation to local governments and the HCD at least 1.5 years before housing element revisions. Additionally, COGs are authorized to distribute the draft allocation once the final methodology is accepted by the department instead of waiting for the draft to be completed after the methodology is finalized (Gov. Code § 65584.05).
  6. Adoption of Allocation Plan: If no appeals are filed against the draft allocation, the COG will adopt the final allocation through a public hearing process, providing greater transparency.

Extreme Heat Safety Element (Assembly Bill 2684) – Mandatory [Passed Sept. 30, 2024]

Assembly Bill 2684 (“AB 2684”) mandates that cities address extreme heat as a hazard in their general plan’s safety elements. It specifically requires cities to incorporate flood, fire, extreme heat hazards, and climate adaptation in the general plan’s safety element during housing element or hazard mitigation plan updates and revisions at least once every 8 years, beginning January 1, 2028 (Gov. Code § 65302.01).

Cities which already have an extreme heat action plan may include that in the safety element. Cities also may reference the  Extreme Heat Action Plan (Public Resources Code § 71361) and the State Hazard Mitigation Plan (under the federal Disaster Mitigation Act of 2000).

One purpose of the bill is to unlock federal disaster mitigation funding by ensuring extreme heat is included in local hazard planning.

AB 1889 requires that a city include a wildlife connectivity element within its conservation element in its next general plan update after January 1, 2028. The purpose of the requirement is to consider how development would impact wildlife movement.

Homelessness and Historic Preservation In Housing Elements (Assembly Bill 3093) – Mandatory [Passed Sept. 19, 2024]

Under the existing Planning and Zoning Law, California cities and counties must adopt a general plan for land use that includes a housing element. This element mandates annual progress reporting to the Department of Housing and Community Development (HCD), documenting each jurisdiction’s steps toward meeting regional housing needs.

Assembly Bill 3093 (“AB 3093”) introduces the following key amendments:

  1. Cities and counties submit annual reports to HCD, showing progress on regional housing needs. AB 3093requires these reports to include progress on meeting targets from the 6th and previous revisions of housing needs, ensuring accountability on cumulative goals (Gov. Code § 65400).
  2. Income Level Definitions: Clarifies income level categories (acutely low, extremely low, very low, lower, low, moderate, and above moderate) and specifies acutely low and extremely low income households as a focus for special housing needs, especially for the 7th revision of housing elements (Gov. Code § 65582). HCD must publish advisory guidelines by December 31, 2026, including analyses and sample programs for acutely low and extremely low-income housing needs, assisting local governments with planning and resource allocation (Gov. Code § 65583.05).
  3. Historic Preservation Analysis: Requires housing elements to analyze how historical preservation practices may impact the availability of housing to meet regional needs, thus ensuring preservation efforts do not hinder housing goals. (Gov. Code § 65583).
  4. For the 7th revision and beyond, local programs must facilitate housing development for acutely low income households, while inventories must accommodate 100% of lower-income needs (Gov. Code § 65583.2).
  5. Requires local governments to include data on homelessness in their housing needs assessments. For the 7th revision, councils must distribute housing units for acutely and extremely low-income households proportionally, based on the overall regional housing need for very low-income households (Gov. Code §§ 65583 and 65584.01).
  6. Adjusts proportional reductions for housing requirements, adding acutely low and extremely low-income categories in situations where a county’s share of regional needs for moderate- and above-moderate-income housing is reduced (Gov. Code § 65584).

AB 3093 provides comprehensive updates in support of acutely low and extremely low-income households. By expanding requirements for housing planning, accountability, and guidance, it aims to address critical housing needs in a structured and inclusive manner, supporting a more responsive and equitable housing system across all jurisdictions in the state.

Housing Element Compliance Confirmation by HCD or the Courts (Assembly Bill 1886) [Passed Sept. 19, 2024]

Assembly Bill 1886 (“AB 1886”) amends regulations surrounding housing elements focusing on substantial compliance and aligning provisions with the Housing Accountability Act.

  1. Substantial Compliance Clarification which reflects existing law:
    • The bill clarifies that a housing element or amendment is considered in substantial compliance when it has been adopted by the city and determined to comply by the Department of Housing and Community Development (HCD) or a court of competent jurisdiction. (Gov. Code § 65585.03).
    • A housing element or amendment is considered in compliance for local approval of a housing project only if it was deemed compliant by HCD or a court at the time a preliminary or complete application was submitted. (Gov. Code § 65589.55).
  1. Impact on the Housing Accountability Act:
    • The bill ensures that a housing element or amendment is only deemed in substantial compliance at the time a preliminary or complete project application is submitted, reinforcing current practices.
    • It aligns the consideration of housing element compliance with timelines tied to project applications to protect housing development approvals under existing standards.

Rebuttal Presumption of Invalidity (Assembly Bill 2023) – Mandatory [Passed Sept. 19, 2024]

Assembly Bill 2023 (“AB 2023”) amends several sections of the Government Code related to housing elements, focusing on compliance and legal standards for local governments.

  1. Rezoning Deadlines: The bill requires that, starting from the 7th revision of the housing element, local governments must complete rezoning within 1 year of the statutory deadline for adopting the housing element. An extended deadline of 3 years and 90 days applies for the 7th and subsequent housing element revisions if the local government meets all of the following conditions (Gov. Code § 65583):
    • Submits a draft element or amendment to the department for review at least 90 days before the statutory deadline. See Gov. Code § 65588.
  2. Receives confirmation from the department by the statutory deadline that the draft element or amendment substantially complies with housing regulations.
  3. Adopts the draft element or amendment, as found compliant by the department, within 120 days after the statutory deadline.
  4. Planning agencies must submit findings to HCD when they believe their draft element or amendment complies with the Housing Element Law, even if HCD initially disagrees. This bill clarifies that submitting these findings does not exempt legislative bodies from making necessary changes to achieve compliance.
  5. Rebuttable Presumptions of Invalidity (Gov. Code § 65585):The bill establishes a rebuttable presumption of invalidity against local governments in legal actions challenging their failure to act or actions inconsistent with an adopted housing element if HCD finds non-compliance.
    • It also creates a presumption of invalidity for any housing element or amendment found by HCD not to meet Housing Element Law requirements.

Housing Element Non-compliance Penalties (Senate Bill 1037) [Passed Sept. 19, 2024]

SB 1037 expands the remedies available in suits brought by the Attorney General or the State Office of Housing and Community Development against local agencies to include any or all of the following penalties:

  1. A civil penalty of $10,000 to $50,000 per month for each violation accrued from the date of the violation until the violation is cured
  2. All costs of investigating and prosecuting the action, including expert fees, reasonable attorney’s fees, and expenses
  3. Other relief as the court deems appropriate (i.e., equitable and injunctive relief)

The penalties in this bill apply only if the agency’s actions are arbitrary, unsupported by evidence, violate public policy, unlawful, or procedurally unfair.

Housing Element Accountability Act Reforms and New Safeguards for Builder’s Remedy Projects (Assembly Bill 1893) [Passed Sept. 19, 2024]

The “Builder’s Remedy” applies when a city does not have a certified housing element. It is a provision within the Housing Accountability Act (HAA) that requires a city to approve  a developer’s proposal  for an affordable housing development even when that project is inconsistent with the city’s general plan or zoning.   (See Govt. Code Section 65589.5).

The Builder’s Remedy prohibits the city from denying or conditioning approval in a way that makes the project infeasible without making certain findings. Assembly Bill 1893 (“AB 1893”) “modernizes” the Builder’s Remedy in the following ways:

  1. Specifies that a city may not disapprove a “Builder’s Remedy project” if its housing element is not in substantial compliance with the HAA on the date the Builder’s Remedy project application was deemed complete.
  2. Expands the affordability categories and makes it easier for more mixed-use developments to be eligible for approval.
  3. Clarifies that a city only may require the proposed project to comply with written objective standards and policies that would have applied to the project if it was proposed on a site that allowed the density and unit type proposed by the applicant. If the city does not have applicable standards for the project, the developer may apply written objective standards and policies associated with a general plan designation and zoning that facilitates the project’s density and unit type.
  4. Confirms that a city may not require a rezoning or general plan amendment in order to process a Builder’s Remedy application.
  5. Confirms that a city’s actions may amount to disapproval if they exceed the number of hearings/meetings allowed under the HAA or if the city takes a course of action that essentially disapproves of the project.

Development Permit Extension During Litigation (Assembly Bill 2117) – Mandatory [Passed Sept. 19, 2024]

Assembly Bill 2117 (“AB 2117”) excludes time spent in litigation from the timeframe in which a permit or project that is pending can expire. It makes the extension automatic for development permits like variances and conditional use permits.

Under AB 2117, the definition of a “permit” does not include:

  1. A building permit or other permit issued under the California Building Standards Code or any applicable local building code for construction, demolition, or alteration of building, whether discretionary or non-discretionary.
  2. A permit for demolition.
  3. A permit for minor or standard excavation and grading.
  4. Any non-discretionary permit or review required or issued by the city after the entitlement process has been completed to begin construction.

Reporting Requirements in Housing Elements for Fair Housing (Assembly Bill 2667) – Mandatory [Passed Sept. 19, 2024]

Assembly Bill 2667 (“AB 2667”) introduces new requirements for local agencies regarding fair housing practices, housing element transparency, and adaptive reuse projects.

AB 2667 introduces the following key amendments:

  1. Enhanced Fair Housing Reporting: The Department of Housing and Community Development (HCD) will develop a standardized reporting format for fair housing programs and actions. Local governments must use this format for the 7th housing element revision and all future revisions, promoting consistency in fair housing data reporting statewide (Gov. Code § 65400).
  2. Public Access to Housing Element Plans: For the 7th housing element revision and subsequent updates, planning agencies must publicly post a draft inventory of sites (under Housing Element Law) on their websites. Agencies must notify interested parties by email at least 90 days before the adoption of the housing element and 7 days before any subsequent submission if site inventories change (Gov. Code § 65585).
  3. Adaptive Reuse Provisions: If AB 3068 is enacted by January 1, 2025, AB 2667 will include adaptive reuse project provisions. These provisions would streamline the ministerial review process for adaptive reuse projects meeting specified requirements, furthering HCD’s oversight of housing compliance.
  4. Annual Reporting and New Subcategories: Annual reports to HCD must include new subcategories under the housing unit approvals/disapprovals section, specifying the number of units located in “opportunity areas” to provide a clearer picture of equitable housing distribution.

The Next Steps:

  1. City Compliance: Local governments should prepare to adopt the standardized, fair housing reporting format and implement the new requirements for public access to housing inventories.
  2. Transparency in Housing Elements: Local governments must maintain publicly accessible records to facilitate public involvement in fair housing and land use planning.
  3. Coordination with Adaptive Reuse Legislation: AB 2667’s provisions related to adaptive reuse hinge on the enactment of AB 3068, potentially accelerating adaptive reuse projects as a viable option for housing needs.

PLANNING AND DEVELOPMENT

Housing Projects on Commercial Sites (Assembly Bill 2243) – Mandatory [Passed Sept. 19, 2024]

Assembly Bill 2243 (“AB 2243”) builds on previous legislation (AB 2011 and SB 6) to facilitate housing developments on commercial sites. AB 2011 (Affordable Housing and High Road Jobs Act of 2022) and SB 6 (Middle Class Housing Act of 2022) allowed housing developments in commercial areas, specifically those zoned for parking, retail, or office buildings. Eligible projects may use a streamlined, ministerial review process provided they meet certain requirements.

To qualify as a project under AB 2011, a development must make all units affordable for low-income households to rent or own. AB 2011 does not apply to:

  1. Sites that contain tribal cultural resources.
  2. Sites located within 500 feet of a freeway or 3,200 feet of an oil or gas refinery.
  3. Sites located within state-designated high fire hazard zones.

Now, AB 2243 expands housing developments to:

  1. Existing high-rise districts even if the site is not along a commercial corridor.
  2. Sites within 500 feet of freeways, as long as (Gov. Code § 65912.113):
    • The building must have a centralized heating, ventilation, and air-conditioning system and the outdoor intakes for that system cannot face the freeway.
    • The building must provide air filtration media for outside and return air as specified.
    • The building must not have any balconies facing the freeway.
  3. Regional mall sites up to 100 acres large instead of 20 acres or less. (Gov. Code § 65852.24).
  4. Prohibit an affordable housing development from demolishing a historic structure that was placed on a national, state, or local historic register. (Gov. Code § 65912.111).

AB 2243 has other proposed changes including:

  1. The number of on-site affordable housing units under AB 2011 is based on the number of housing units in the project prior to any density bonus (i.e., the “base” units).
  2. Clarifies that all aspects of AB 2011 projects are under ministerial review and not subject to CEQA.
  3. The local government must respond within 30 days of an application resubmittal.
  4. Specifies that any site remediation needs to occur after project approval but before the site can be occupied.

AB 2243 also requires that local agencies provide a written determination of whether or not the submitted development is consistent or inconsistent with planning standards within the following (Gov. Code §65912.114):

  1. Within 60 days of submittal (150 or less housing units).
  2. Within 90 days of submittal (more than 150 housing units).
  3. Within 30 days of resubmittal to address written feedback by the city.

SB 35 and Subdivision Processing for Residential Sites (Assembly Bill 3122) [Passed Sept 27, 2024]

Assembly Bill 3122 (“AB 3122”) allows modifications to SB 35 projects without triggering new standards if it is an increase to the number of residential units, so long as the square footage of the development doesn’t increase by more than 15%, among other changes.

In 2023, SB 423 (Wiener) amended SB 35 (Wiener) to create a streamlined ministerial approvals process for housing development proposals in jurisdictions that did not meet their regional housing needs assessment cycle. The project must include, among other requirements:

  1. A percentage of affordable housing units
  2. Specified labor standards
  3. The project is not on an environmentally sensitive site
  4. The project would not result in the demolition of existing housing

Municipal agencies can provide design reviews, apply their objective development standards, and approve the development project in specified timeframes.

AB 3122 would expedite the approval of the ministerial review process and allow for project adjustments to support subdivision developments by:

  1. Allowing developers to modify a project and retain ministerial processing if the modifications contain more than 15% increase in residential units as long as the total project square footage does not increase by 15% or more.
  2. Establishing a lower affordability threshold (20% of the total units, before calculating any density bonus, with at least 9% affordable to households earning up to 50% of the area median income (AMI) and the rest affordable to households earning up to 80% AMI) for SB 423 projects submitted prior to January 1, 2019, that include at least 500 units of housing.
  3. Establishing a 30-day planning review timeframe when the developer re-submits project revisions to address the city’s comments and concerns.
  4. Clarifying that a project that satisfies all SB 423 provisions and local objective standards in infill areas or receives low-income housing tax credits under the Subdivision Map Act is exempt from CEQA.
  5. Clarifying that all references to units affordable to very low-income households (earning 0-50% AMI) includes acutely low-income (0-15% AMI) and extremely low-income (15-30% AMI) households.

Amendments to SB 628 for Housing Projects and Subdivisions (Senate Bill 1123) – Mandatory – Effective July 1, 2025 [Passed Sept. 19, 2024]

Senate Bill 1123 (“SB 1123”) modifies SB 684 (the Starter Home Revitalization Act of 2021), which allows for the construction of up to 10 units on vacant lots in multi-family zones and requires a city to ministerially approve, without discretionary review or a hearing, a parcel map or tentative and final map on parcels of 5 acres and less.

SB 1123’s key provisions include:

  1. This bill prohibits local agencies from counting accessory dwelling units (ADUs) or junior ADUs as residential units for purposes of SB 684’s requirements.
  2. SB 1123 revises the requirement that the lot be zoned for multifamily residential development and now requires the lot either be zoned for multifamily residential dwelling use or be vacant and zoned for single-family residential development (so long as the vacant lot is no larger than 112 acres).
  3. The newly created parcels can be no smaller than 1,200 square feet in the single-family residential zone.
  4. SB 1123 permits a city to impose a specified height limit on a lot that is vacant and zoned for single-family residential development.

Elderly Residential Care Facilities (Assembly Bill 2694) – Mandatory [Passed Sept. 19, 2024]

Assembly Bill 2694 (“AB 2694”) amends the Density Bonus Law to expand incentives for residential care facilities for the elderly.

Key Provisions of AB 2694:

  1. Expansion of Eligible Developments: AB 2694 broadens the definition of “development” under the Density Bonus Law to include residential care facilities for the elderly, enabling these facilities to qualify for density bonuses and related benefits. This adjustment reflects California’s prioritization of senior housing within its housing affordability and accessibility initiatives.
  2. Shared Housing Units for Senior Care Facilities: The bill defines shared housing units in residential care facilities as units without individual kitchens where unrelated persons may share rooms. These shared units must meet specified minimum room area requirements to qualify under the Density Bonus Law.
  3. City Implementation and State Mandate:AB 2694 imposes a state-mandated local program, requiring local governments to administer the expanded Density Bonus Law provisions. It mandates that all California cities, including charter cities, comply, as the bill

Density Bonus Law Benefits for Student Housing (Senate Bill 3116) – Mandatory [Passed Sept. 22, 2024]

Senate Bill 3116 (“SB 3116”) seeks to improve the availability of affordable housing for low-income students by enhancing incentives, providing flexible affordability restrictions, and reducing parking mandates in student housing developments.

SB 3116’s key amendments include:

  1. “Student housing development” is defined as housing with shared or private bedrooms, bathrooms, kitchens, living spaces, and laundry facilities designed to house two or more students per unit. Units may serve undergraduate, graduate, or professional students currently or recently (within 6 months) enrolled in at least six units at an accredited institution.
  2. Affordability and Accessibility: Developers must reserve a percentage of units for low-income students, with additional incentives for setting aside 23% or more units for low-income students. Affordability restrictions no longer tie low-income student beds to specific rooms, allowing flexibility in allocating these beds within the housing complex.
  3. Incentives and Density Bonuses: Projects reserving 20% of units for low-income students are eligible for a density bonus, with varying bonus levels based on the percentage of affordable units. Developers receive increased incentives when meeting higher percentages of affordable housing allocations.
  4. Parking Reductions: The bill limits parking requirements, allowing one bedspace in student housing to require zero parking spaces. This aims to reduce parking needs and support more efficient land use in student-focused developments.
  5. Implementation and Reimbursement: Local governments are responsible for implementing these updated provisions, with state reimbursement available if additional costs arise.

Logistics and Warehouse Development (Assembly Bill 98) – Mandatory [Passed Sept. 29, 2024]

Assembly Bill 98 (“AB 98”) is aimed at setting statewide standards for logistics and warehouse development to mitigate environmental and community impacts associated with these facilities. It introduces comprehensive design, operational, and environmental standards that local governments must enforce for any new or expanded logistics facilities from January 1, 2026 (Gov. Code § 65098.2.7).

Key components include:

  1. Warehouse Design and Construction Standards: The bill establishes minimum design standards for logistics facilities, covering building layout, parking, truck loading bays, landscaping, entry gates, and signage. However, some existing facilities and projects already undergoing local approvals are exempt from these standards. Additionally, logistics operators must submit a truck routing plan for approval to manage traffic flow effectively and avoid residential areas (Gov. Code § 65098.4).
  2. General Plan Circulation Element Update: By January 1, 2028, local governments must update their transportation plans to accommodate increased truck traffic linked to logistics operations. This includes designating specific truck routes that avoid sensitive areas like residential neighborhoods and ensuring public awareness through signage. Failure to update these plans could result in fines of up to $50,000 every six months (Gov. Code § 65302.02).
  3. Air Quality Monitoring and Community Impact Assessment: The South Coast Air Quality Management District (SCAQMD) must establish a process for gathering community input on fines collected from warehouses violating air quality standards. Between 2026 and 2032, the district is required to deploy mobile air monitoring systems in Riverside and San Bernardino counties to assess pollution levels around logistics facilities. Findings will be reported to the Legislature to help evaluate and address air pollution impacts on nearby communities. See Health & Safety Code § 40458.5.

CALIFORNIA ENVIRONMENTAL QUALITY ACT

AB 1361 provides that a city’s actions to provide homeless services are exemption from CEQA.

Junior Accessory Dwelling Unit (JADU) Exemption (Assembly Bill 3057) – Mandatory [Passed August 27, 2024]

Assembly Bill 3057 (“AB 3057”) expands an existing California Environmental Quality Act (CEQA) exemption for adopting a city ordinance to facilitate accessory dwelling units to include junior ADUs (JADUs). A JADU is a unit of no more than 500 square feet and contained within a single-family residence, which may include separate or shared sanitation facilities with the existing structure.

Additional CEQA Requirements for Affordable Housing Projects: (Assembly Bill 1413) – Mandatory [Passed Sept. 19, 2024]

Assembly Bill 1413 (“AB 1413”) amends procedures related to housing project disapprovals for affordable housing or emergency shelters under the Housing Accountability Act (HAA) and establishes additional notification requirements under the California Environmental Quality Act (CEQA). The bill aims to streamline the approval process for housing projects by mandating more transparent communication between applicants and local agencies, thus reducing potential delays associated with environmental assessments.  

AB 1413 introduces the following key amendments:

  1. The HAA prohibits local agencies from disapproving housing projects without substantial evidence and clear findings. The bill clarifies that failure to adopt, certify, or approve CEQA-related documents (such as an environmental impact report, negative declaration, or exemption determination) also constitutes a “disapproval” of the project if certain conditions are met. See Gov. Code § 65589.5. This clarification applies until January 1, 2031.

When a housing project applicant gives written notice to a city regarding the CEQA process, the city must, within 5 working days:

  • File the notice with the county clerk
  • Post the notice on the agency’s website for public visibility
  • Distribute a copy to specified individuals, increasing transparency and allowing relevant stakeholders to remain informed

The bill mandates that the city cannot issue a final decision on CEQA matters until 60 days after the applicant’s notice has been submitted to allow sufficient time for public and internal review to incorporate public concerns into the decision-making process.

  • Public Review and Objection: AB 1413 requires agencies to consider all comments, objections, and concerns submitted during the CEQA review period.
  • AB 1413 incorporates technical changes to refine HAA’s definition of “disapprove the housing development” and references amendments proposed by AB 1893 (which will apply if both AB 1413 and AB 1893 are enacted).

Homeless Shelter and Navigation Center CEQA Exemption Extensions (Senate Bill 1395) – [Passed Sept 19, 2024]

Senate Bill 1395’s (“SB 1395”) key provisions include:

  1. Extends the sunset date of the Shelter Crisis Act (SCA) from January 1, 2026 to January 1, 2036. The SCA (sunset on January 1, 2026) permits a local jurisdiction to declare a shelter crisis to provide emergency housing and allow local governments to provide temporary shelter solutions for the homelessness crisis. Local agencies may allow homeless persons to occupy designated public facilities for the duration of the crisis.
  2. Expands the CEQA exemption for the construction of shelters under SCA for the actions taken by a government agency to approve a contract to provide services for people experiencing homelessness.
  3. Low Barrier Navigation Centers (LBNCs) or Shelter: Current law allows LBNCs to be approved by-right in mixed-use and nonresidential zones that permit multifamily use. The bill deletes the sunset date on existing law providing streamlined, ministerial approval for LBNCs extending the law indefinitely. The bill revises the definition of LBNC to clarify that a LBNC may be non-congregate (non-sharing) and relocatable.
  4. Provides that CEQA does not apply to any of the following activities by a city (Pub. Res. Code § 21080.27.5):
  5. An action to lease or facilitate the lease of land owned by the city for a LBNC;
  6. An action associated with a lease for a LBNC;
  7. An action to provide financial assistance to a LBNC;
  8. An action to construct or operate a LBNC; or
  9. An action to enter into a contract to provide services to a LBNC.
  10. Expands the definition of “state programs” to include emergency shelter and interim housing in existing law for the purpose of providing emergency shelter to people experiencing homelessness or at risk of homelessness (WIC § 8255).

HOUSING PRODUCTION RESTRAINTS

18-month Entitlement Extension for Residential Developments (Assembly Bill 2729) – Mandatory [Passed Sept. 27, 2024]

Assembly Bill 2729 (“AB 2729”) extends the expiration date of housing entitlements for residential development projects issued before 2024 and set to expire before December 31, 2025, by an additional 18 months. The 18-month extension period will toll or pause if the entitlement is involved in a legal challenge.

Provided that if a state or city extends a housing entitlement between January 1, 2024, and the effective date of this bill, the housing entitlement shall not be extended for an additional 18 months.

This bill does not prevent a local government from granting an extension beyond the 18 months outlined.

A “housing entitlement” includes approvals, permits, or entitlements required for housing development projects, such as:

  1. Approvals of housing development projects subject to the Permit Streamlining Act.
  2. Ministerial permits or entitlements needed for building permits.
  3. Requirements to apply for a building permit within a specified period after the effective date of a housing entitlement.
  4. A tentative, vesting, or parcel map for which a tentative map or vesting tentative map, as the case may be, has been approved.

The bill excludes development agreements, subdivision map acts already extended, and preliminary applications under the Housing Crisis Act of 2019.

Reporting on Historic Designations (Assembly Bill 2580) – Mandatory – [Passed Sept. 27, 2024]

Assembly Bill (“AB 2580”) enhances transparency regarding historic site designations in local planning and zoning reports, especially concerning housing projects, while introducing additional reporting responsibilities for local government entities. This bill proposes amendments to the Planning and Zoning Law, which mandates cities and counties to adopt a comprehensive general plan that includes a housing element.

Key Provisions of AB 2580:

  1. Historic Designations Reporting: The bill requires that the annual report include a list of all properties designated as historic in the past year. This includes listings on the National Register of Historic Places, the California Register of Historical Resources, or a local historic register. The report must also detail the status of any housing projects proposed for these newly designated historic sites.
  2. By expanding the scope of information local agencies must report, AB 2580 imposes additional duties on local officials, effectively creating a state-mandated local program.
  3. AB 2580 specifies that no state reimbursement is required for costs incurred by local agencies, citing a specific reason for this exemption under the California Constitution.

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