THINKING: housing projects

2022 California Housing Legislation Highlights – Redefining Housing Development throughout the State

With the close of the State of California’s Legislative Session, there are numerous changes to housing policy that impact future developments. In this blog post, we take a deeper dive into the bills that were passed and how that impacts potential housing opportunities in the state of California.

Assembly Bill 2011 – Infill Housing in Commercial Zones

Assembly Bill 2011 (AB 2011) focuses on infill housing in commercial-zoned lands. This legislation allows housing to be built by right in infill areas currently zoned for office, retail and parking uses. Take a look at our blog post for a deeper dive into the specifics and benefits of AB 2011.

Assembly Bill 2221 – ADU Law Improvements

Assembly Bill 2221 (AB 2221) expounds upon the state’s recent efforts to incentivize ADU construction by clarifying the policy language. AB 2221 further explains California’s ADU law in order to make ADUs easier to build.

While the 2020 ADU policies adopted allowed developers to add ADUs to existing multifamily buildings, these regulations did not apply to new and proposed developments. In order for developers to utilize these policies, they had to first finalize the project and then go back to add ADUs following project completion. AB 2221 clarified the existing regulations to allow developers the opportunity to incorporate ADUs into any new multifamily housing projects.

The bill also contains changes to the technical language with the goal of reducing arbitrary decisions at the local level that block the construction of ADUs, including the misinterpretation, or sometimes abuse, of technical requirements such as front setbacks or what qualifies as a “permitting agency.” These changes also further detail that permitting agencies must return comments on a proposed ADU within 60 days. AB 2221 also establishes that a city cannot preclude the construction of an ADU with front setbacks as well as raises certain height limitations.

Overall, AB 2221 is a big step forward for ADU construction in California —removing ambiguities in the existing regulations and eliminating arbitrary barriers that some cities have imposed on this development type.

Senate Bill 897 – ADU Revised Height Limits

Senate Bill 897 (SB 897), most notably, revised ADU minimum height limits.

The regulation dictates that the jurisdiction must allow the following heights for ADUs:

18 feet for a detached ADU on a lot within one-half mile walking distance of a major transit stop or high-quality transit corridor, with an allowance of an additional two feet to accommodate a roof pitch aligned with the primary dwelling unit.
18 feet for a detached ADU on a lot with an existing or proposed multi-family, multi-story dwelling.
25 feet or the height limit under the local zoning ordinance, for an ADU attached to a primary dwelling, although a local agency can ensure the ADU does not exceed two stories.

SB 897 also requires that all standards imposed on ADU development and construction be objective and not subject to interpretation by local approving bodies.

Assembly Bill 2097 – Residential Development Near Transit

The aim of Assembly Bill 2097 (AB 2097) is to prompt a statewide boost in residential and commercial development near public transit. The bill details that local public agencies are prohibited from imposing any minimum car parking requirements for projects located within a half mile of metro, bus or other transportation centers.

Parking mandates are common in cities throughout California and often add $40,000 or more in construction cost per parking spot. Eliminating parking mandates will significantly reduce the cost of housing while simultaneously slashing carbon emissions that cause climate change.

This also gives Californians more choices about whether they want to pay a premium for parking, or live in less expensive housing located in walkable, transit-oriented neighborhoods.

According to California YIMBY, California cities are currently over-producing parking. Los Angeles alone possesses more than 200 square miles of parking. This is largely as a result of rules that require the inclusion of parking with the construction of each new home or business, even when there is no actual need for any additional parking. AB 2097 will increase housing opportunities in walkable- and transit-accessible neighborhoods at a lower-cost across the state.

Assembly Bill 916

Assembly Bill 916 (AB 916) prohibits a legislative body from adopting an ordinance that requires a public hearing as a condition to increase the bedroom count within an existing dwelling unit. The bill also applies these provisions only to a permit application for no more than two additional, paving the way for more JADUs to be created.

Assembly Bill 2234 – Planning and Zoning – Housing: Post Entitlement Phase Permits

Permitting continues to remain a huge hurdle to increasing housing production in California. Assembly Bill (AB 2234) is designed to expedite the state’s lagging housing production by addressing these inefficiencies in the permitting process. The bill requires the permit application process to move entirely online. AB 2234 also stipulates that jurisdictions must create detailed lists of permit requirements and cannot add additional requirements for applications already in progress. Agencies also have to provide a set of example permit applications for the most common types of housing developments and post these online.

AB 2234 even requires that local jurisdictions compile a list of information needed to approve or deny a post-entitlement permit. It also defines timelines for review of post-entitlement applications for housing projects:

(a) for projects with 25 units or fewer, a local agency shall complete first review and comment within 30 days of an application completion

(b) for projects with 26 or more units, a local agency shall complete the first review and comment within 60 days of an application completion.

If an agency fails to meet these timelines, they are in violation of the Housing Accountability Act. The goal of the AB 2234 is to create a reasonable and transparent process that will allow housing projects to move forward efficiently and not spend years in the permitting process.

Summary

In combination with other legislation, such as the State Density Bonus Law and Senate Bill 9, these bills provide ample opportunity to address California’s housing crisis. By streamlining the process of ADU development, rezoning commercial areas, and removing parking mandates, setbacks and height limitations, the potential for maximizing density and offering more affordable and transit-oriented housing is unmatched.