What’s New in California Housing Law? An Overview of the Latest Signed Bills
Monday, Oct. 13 marked the final day for Gov. Gavin Newsom to sign bills passed during this legislative session by California’s Senate and Assembly. Below is a round-up of key housing-related bills signed by the governor, organized by impact area: enforcement, small-scale development, streamlining permit processing and specialty housing bills. The wide-ranging nature of these bills underscores the state’s continued multi-pronged strategy to address California’s housing crisis.
In addition to these recently passed housing bills, on June 30, 2025, Gov. Gavin Newsom signed into law budget trailer bills AB 130 and SB 131 to, among other things, streamline the approval of housing development projects. For more information on these bills, please see the series about AB 130 and SB 131 our office published earlier this year.
Enforcement
Requires local agencies in eight “urban transit counties” to adopt minimum zoning standards allowing for taller, denser housing projects that meet certain affordability and labor requirements near qualified rail and bus rapid transit stops.
Entitles housing development applicants to reasonable attorney’s fees and costs, in addition to other penalties and remedies, if a public agency violates housing reform laws. Prevents public agencies from requiring developers to indemnify, defend or hold harmless the agency if the developer sues the agency for violating housing reform laws.
Requires building departments to inspect applicable residential construction projects within 10 business days of receiving notice of completion of the permitted work. Categorizes any failure to complete such an inspection a violation of the Housing Accountability Act.
Clarifies ambiguities in state housing element law, such as mandating that the most recently adopted element controls when there are conflicting development standards included in different general plan elements.
Establishes additional consequences for local governments when they commit, but fail, to meet the deadline for removing constraints on housing development, including authorizing the California Department of Housing and Community Development (HCD) to review housing elements adopted by those agencies for decertification. Amends judicial procedures for housing element cases, including expediting temporary relief in certain scenarios and specifying that a court order to adopt a housing element is not stayed pending appeal.
Expedites enforcement actions brought by project applicants or the attorney general challenging improper denial of a housing project application under state housing laws, including the Housing Accountability Act, ministerial approval laws, and accessory dwelling unit (ADU) laws.
Small-scale Development
Changes the requirements for junior accessory dwelling unit (JADU) ordinances, such that owner-occupancy is not required if there are separate sanitation facilities, and clarifies that any rental of a JADU must be for more than 30 days.
Facilitates construction of ADUs in areas affected by a proclaimed state of emergency (intended to help recovery efforts after the Eaton and Pacific Palisades Fires). Requires the California Coastal Commission to approve or deny ADUs within areas not subject to a certified local coastal program within 60 days of receiving a complete application.
Invalidates a local agency’s ADU ordinance if the agency fails to submit a copy of the ordinance to HCD within 60 days of adoption or fails to respond within 30 days to a finding that the ordinance is not in compliance.
Clarifies and codifies existing HCD guidance regarding ADUs and JADUs.
Expands the application of SB 9 (2021) by allowing lot splits and/or the development of duplexes on single-family-zoned parcels to be approved ministerially in historic districts, as long as the development does not alter or demolish existing historic structures.
Streamlining Permit Processing
Specifies that certain provisions of the Density Bonus Law (e.g., incentives, concessions, waivers or reductions of development standards) do not apply to transient lodging that is part of a housing development, unless it is a residential hotel.
Allows licensed and certified third-party reviewers to review housing permit applications for 10 units or fewer if a public agency fails to complete permit review within 30 days.
Accelerates housing development by requiring state agencies to follow the same streamlined procedures as local agencies concerning post-entitlement permit application examples and timelines.
Builds upon the Permit Streamlining Act processes by requiring California cities and counties with over 150,000 residents to enable development permit tracking through centralized portals displaying application status information.
Reduces the amount of time from 90 to 45 days that public agencies serving as responsible agencies pursuant to CEQA may take to approve an approved development project.
Prevents private restrictive covenants limiting density, size and location from blocking housing projects when an entity is redeveloping commercial land for residential use.
Mandates local governments reduce traffic impact fees to adhere to new criteria, replacing proximity to “convenience retail” with more specific locations like grocery stores and pharmacies. Requires local agencies make certain findings supported by substantial evidence to adjust vehicle mitigation fees.
Requires local agency formation commissions (LAFCOs) to publish information regarding changes in local agency organization and permitting criteria for housing development projects in transparent and accessible formats online.
Specialty Housing Bills
Streamlines the approval process for local educational agencies to develop affordable housing on school district property and exempts qualifying developments from certain CEQA requirements.
Expands the eligibility for streamlined, ministerial review of mixed-income housing developments under AB 2011 (2022) to include projects in “campus development zones” (i.e., within a half mile of a University of California, California State University or California Community College campus).
Requires regional transportation plans to consider changes in enrollment levels at institutions of public higher education. Streamlines CEQA compliance for related development projects by not requiring a “no project” alternative analysis under certain conditions when the University of California or the California State University are the lead agency.
Requires local agencies to permit by-right adaptive reuse projects, allowing the conversion of existing commercial/industrial buildings to residential or mixed use, where qualifying projects meet certain affordability requirements and labor standards.
This document is intended to provide you with general information regarding California housing bills. The contents of this document are not intended to provide specific legal advice. If you have any questions about the contents of this document or if you need legal advice as to an issue, please contact the attorneys listed or your regular Brownstein Hyatt Farber Schreck, LLP attorney. This communication may be considered advertising in some jurisdictions. The information in this article is accurate as of the publication date. Because the law in this area is changing rapidly, and insights are not automatically updated, continued accuracy cannot be guaranteed.
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