20250SB__068197AMD INTRODUCED 2025-02-21 AMENDED_SENATE 2025-04-10 AMENDED_SENATE 2025-05-23 2025 SB AMD Introduced by Senator Wahab (Principal coauthors: Senators Becker, Grayson, McGuire, and Pérez) LEAD_AUTHOR SENATE Wahab PRINCIPAL_COAUTHOR SENATE Becker PRINCIPAL_COAUTHOR SENATE Grayson PRINCIPAL_COAUTHOR SENATE McGuire PRINCIPAL_COAUTHOR SENATE Pérez

An act to amend Sections 714.3, 1950.6, 5850, and of, and to add Sections 1950.3 and 2924.13 to, the Civil Code, to amend Sections 54221, 65584.01, 65584.04, 65589.5, 65905.5, 65913.10, 65928, 65941.1, 65953, and of, to amend and repeal Sections 65940, 65943, and of, to add

Section 8590.15.5 to, and to repeal

Section of, the Government Code, to amend

Section of, to add

Section to, and to add and repeal

Section 25402.15 of, the Public Resources Code, and to amend

Section 17053.5 of the Revenue and Taxation Code, relating to housing. housing Housing.

(1) Existing law, the Planning and Zoning Law, authorizes a local agency to provide for the creation of accessory dwelling units in single-family and multifamily residential zones by ordinance, and sets forth standards the ordinance is required to impose with respect to certain matters, including, among others, maximum unit size, parking, and height standards.

Existing law authorizes a local agency to provide by ordinance for the creation of junior accessory dwelling units, as defined, in single-family residential zones and requires the ordinance to include, among other things, standards for the creation of a junior accessory dwelling unit, required deed restrictions, and occupancy requirements.

Existing law makes void and unenforceable any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in real property that either effectively prohibits or unreasonably restricts the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets the above-described minimum standards established for those units.

However, existing law permits reasonable restrictions that do not unreasonably increase the cost to construct, effectively prohibit the construction of, or extinguish the ability to otherwise construct, an accessory dwelling unit or junior accessory dwelling unit consistent with those aforementioned minimum standards provisions. This bill would prohibit fees and other financial requirements from being included in the above-described reasonable restrictions.

(2) Existing law regulates the hiring of real property and imposes various requirements on landlords relating to the application for, and leasing of, residential rental property. Existing law places limitations on the amount of rent and security that a landlord can charge a tenant, as specified. This bill would prohibit a landlord or their agent from charging certain fees, unless the fee is specified in the rental agreement. The bill would prohibit any fees charged, in total, from exceeding more than 5% of the monthly rental amount, except as specified.

Under the bill, if a landlord or their agent charges and collects a fee from a tenant that is not authorized by law, the landlord or their agent would be liable to the tenant in a civil action for the cost of the fee, plus 5% interest compounded daily from the date the fee was collected. Existing law requires the owner of qualifying residential property, as defined, that provides parking with the qualifying residential property to unbundle parking from the price of rent, as specified.

Existing law defines “unbundled parking” as the practice of selling or leasing parking spaces separate from the lease of the residential use.</xhtml:p><xhtml:p>This bill would repeal those provisions, and instead, would prohibit a landlord or its agent from charging a fee for a parking space.</xhtml:p>"?> Existing law authorizes a landlord or their agent to charge an applicant who requests to rent a residential housing unit an application screening fee to cover the costs of obtaining information about the applicant.

Existing law prohibits the amount of the application screening fee from being greater that the actual out-of-pocket costs of gathering information concerning the applicant, including, but not limited to, the cost of using a tenant screening service or a consumer credit reporting service, and the reasonable value of time spent by the landlord or their agent in obtaining information on the applicant, as provided.

This bill, instead, would authorize the application screening fee to cover the actual costs of the screening, and would prohibit the amount of the application screening fee from being greater that the actual out-of-pocket costs of conducting the screening, including, but not limited to, the cost of using a tenant screening service or a consumer credit reporting service, as provided.

The bill would thereby eliminate the authority of the landlord or their agent to charge, as part of the application screening fee, the reasonable value of time spent by the landlord or their agent in obtaining information on the applicant.

(3) Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust. Existing law authorizes a borrower to bring an action for injunctive relief to enjoin material violations of certain of these requirements, and requires that the injunction remain in place and any trustee’s sale be enjoined until the court determines that the violations have been corrected, as specified.

This bill would make certain conduct an unlawful practice in connection with a subordinate mortgage, including, among others, that the mortgage servicer did not provide the borrower with any communication regarding the loan secured by the mortgage for at least years. The bill would prohibit a mortgage servicer from conducting or threatening to conduct a nonjudicial foreclosure until the mortgage servicer (

A) records or causes to be recorded a certification, as specified, under penalty of perjury that either the mortgage servicer did not engage in an unlawful practice or the mortgage servicer lists all instances when it committed an unlawful practice and (

B) the mortgage servicer sends the recorded certification and a notice to the borrower, as specified. By expanding the scope of a crime, this bill would impose a state-mandated local program.

(4) Existing law, the Davis-Stirling Common Interest Development Act, governs the formation and operation of common interest developments. Existing law requires that a common interest development be managed by an association. Existing law, if an association adopts or has adopted a policy imposing any monetary penalty on any association member for a violation of the governing documents, requires the board to adopt and distribute to each member a

schedule of the monetary penalties that may be assessed for those violations, as provided, and prohibits an association from imposing a monetary penalty on a member for a violation of the governing documents in excess of that schedule. Existing law requires the board to notify a member days before a meeting to consider or impose discipline on the member, as specified. Existing law requires the board to provide a member with written notification of a decision to impose discipline on the member within days. This bill would prohibit monetary fees from exceeding the lesser of that specified

schedule or $100 per violation. The bill would require the board to give a member the opportunity to cure a violation prior to the meeting to consider or impose discipline, as specified. The bill would reduce the time to provide written notification of a decision to impose discipline from days to days.

(5) Existing law, until July 1, 2042, establishes the Seismic Retrofitting Program for Soft Story Multifamily Housing for the purposes of providing financial assistance to owners of soft story multifamily housing for seismic retrofitting to protect individuals living in multifamily housing that have been determined to be at risk of collapse in earthquakes, as specified. Existing law establishes the Seismic Retrofitting Program for Soft Story Multifamily Housing Fund, and its subsidiary account, the Seismic Retrofitting Account, within the State Treasury.

Existing law requires the California Residential Mitigation Program, also known as the CRMP, to develop and administer the program, as specified. This bill would require, upon appropriation by the Legislature, the CRMP to fund the seismic retrofitting of affordable multifamily housing, as specified. The bill would require the CRMP to prioritize affordable multifamily housing serving lower income households, as defined.

(6) Existing law prescribes requirements for the disposal of surplus land by a local agency. Existing law provides that an agency is not required to follow the requirements for disposal of surplus land for “exempt surplus land,” except as provided. Existing law defines “exempt surplus land” to mean, among other things, real property that a school district is required to appoint a district advisory committee prior to sale, lease, or rental of any excess real property, as specified, and real property that a school district may exchange for real property of another person or private business firm, as specified.

This bill would remove the above-described school district real property from the definition of “exempt surplus land,” thereby requiring that the disposal of that property be done in accordance with the above-described requirements for surplus land disposal.

(7) Existing law, the Planning and Zoning Law, requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that contains certain mandatory elements, including a housing element. That law requires each local government to review its housing element and to revise the housing element in accordance with a specified schedule.

For the 4th and subsequent revisions of the housing element, existing law requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region, and requires the appropriate council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing need plan that allocates a share of the regional housing need to each city, county, or city and county, as provided.

Existing law requires the department to meet and consult with the council of governments regarding the assumptions and methodology used to determine a region’s housing needs at least months prior to the scheduled revision. Existing law requires the council of governments to provide certain data assumptions from the council’s projections, if available, including, among other things, the percentage of households that are overcrowded, the overcrowding rate for a comparable housing market, the percentage of households that are cost burdened, and the rate of housing cost burden for a healthy housing market.

This bill would revise these data assumptions requirements to, instead, require the council of governments to provide data on the percentage of households that are overcrowded within the region, the percentage of households that are overcrowded throughout the nation, the percentage of households that are cost burdened within the region, and the percentage of households that are cost burdened throughout the nation.

Existing law requires each council of governments, or delegate subregion, as applicable, to develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, where applicable, at least years before a scheduled revision. This methodology is also referred to as the allocation methodology.

Existing law requires the council of governments, or delegate subregion, as applicable, to publish a draft allocation methodology on its internet website and submit the draft allocation methodology to the department. Existing law requires the department to determine whether the methodology furthers the specified objectives within days. If the department determines that the methodology is not consistent with the objectives, existing law requires the council of governments, or delegate subregion, as applicable, to either (

A) revise the methodology to further the objectives and adopt a final regional, or subregional, housing need allocation methodology or (

B) adopt the regional, or subregional, housing need allocation methodology without revisions and include within its resolution of adoption findings, supported by substantial evidence, as to why the council of governments, or delegate subregion, believes that the methodology furthers the objectives, despite the findings of the department.

This bill, if the department determines that the draft allocation methodology is not consistent with the objectives, would instead require the council of governments, or delegate subregion, to revise the methodology, in consultation with the department, to further the objectives within days, receive department acceptance that the revised methodology furthers the objectives, and adopt a final regional, or subregional, housing need allocation methodology.

The bill would remove the ability for a council of governments or delegate subregion to adopt the regional or subregional housing need allocation methodology without revision, as described above.

(8) Existing law, except as provided, generally requires that a public hearing be held on an application for a variance from the requirements of a zoning ordinance, an application for a conditional use permit or equivalent development permit, a proposed revocation or modification of a variance or use permit or equivalent development permit, or an appeal from the action taken on any of those applications.

Existing law, until January 1, 2034, prohibits a city or county from conducting more than hearings, as defined, held pursuant to these provisions, or any other law, ordinance, or regulation requiring a public hearing, if a proposed housing development project complies with the applicable objective general plan and zoning standards in effect at the time an application is deemed complete, as defined.

Existing law, until January 1, 2034, requires the city or county to consider and either approve or disapprove the housing development project at any of the hearings consistent with the applicable timelines under the Permit Streamlining Act. This bill would remove the January 1, 2034, repeal date with respect to the requirements that a city or county conduct no more than hearings on a housing development project, and either approve or disapprove that housing development at any of those hearings, as described above, thereby extending these provisions indefinitely.

(9) Existing law, until January 1, 2030, for purposes of any state or local law, ordinance, or regulation that requires a city or county to determine whether the site of a proposed housing development project is a historic site, requires the city or county to make that determination, which remains valid for the pendency of the housing development, at the time the application is deemed complete, except as provided. This bill would remove the January 1, 2030, repeal date for these provisions, thereby extending them indefinitely.

(10) Existing law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving a housing development project that complies with applicable objective general plan, zoning, and subdivision standards and criteria, or from imposing a condition that it be developed at a lower density, unless the local agency bases its decision on written findings supported by the preponderance of the evidence on the record that specified conditions exist, as provided.

That act also prohibits a local agency from disapproving, or from conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes written findings, based on the preponderance of the evidence, that one of specified conditions exists.

The act authorizes the applicant, a person who would be eligible to apply for residency in the housing development project or emergency shelter, or a housing organization to bring an action to enforce its provisions and authorizes a court to issue an order or judgment directing the local agency to approve the housing development project or emergency shelter under certain circumstances.

Those circumstances include, among others and until January 1, 2030, that the local agency required or attempted to require a housing development project to comply with an ordinance, policy, or standard not adopted and in effect when a preliminary application was submitted, as specified. This bill would remove the January 1, 2030, inoperative date for this provision of the act, thereby extending this provision of the Housing Accountability Act indefinitely.

The act, except as specified, requires that a housing development project be subject only to the ordinances, policies, and standards, as defined, adopted and in effect when a preliminary application, including specified information, required by specified law as described below, was submitted. The act makes this requirement inoperative on January 1, 2034. This bill would remove the January 1, 2034, inoperative date for this requirement under the act, thereby extending this provision of the Housing Accountability Act indefinitely.

Among other terms, the act defines the term “deemed complete” for its purposes to mean, until January 1, 2030, that the applicant has submitted a preliminary application or a complete application, as specified, and requires that the local agency bear the burden of proof in establishing that the application is not complete. The act also defines the term “determined to be complete” for its purposes to mean, until January 1, 2030, that the applicant has submitted a complete application, as specified.

The act also defines the term “objective” to mean, until January 1, 2030, involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official. This bill would remove the January 1, 2030, inoperative date for each of these

definitions, thereby extending their application under the Housing Accountability Act indefinitely.

(11) Existing law, the Permit Streamlining Act, requires public agencies to compile one or more lists that specify in detail the information that will be required from any applicant for a development project. The act requires a public agency to determine in writing whether the application is complete and to immediately transmit the determination to the applicant for the development project, not later than calendar days after the public agency received the application for the development project.

The act defines “development project” for purposes of its provisions to mean any project undertaken for the purpose of development, including a project involving the issuance of a permit for construction or reconstruction but not a permit to operate, and excludes from this definition any ministerial projects proposed to be carried out or approved by public agencies.

This bill, notwithstanding the exclusion for ministerial projects, would include in the definition of “development project” under the Permit Streamlining Act a housing development project that requires an entitlement from a local agency, regardless of whether the process for permitting that entitlement is discretionary or ministerial. The bill would also exclude from this definition a postentitlement phase permit, as defined by specified law.

The act requires a city or county to deem an applicant for a housing development project to have submitted a preliminary application upon providing specified information about the proposed project to the city or county from which approval for the project is being sought. Existing law also authorizes a development proponent that submits a preliminary application for a housing development project to request a preliminary fee and exaction estimate, as defined, and requires a city, county, or city and county to provide the estimate within business days of the submission of the preliminary application.

Existing law repeals these provisions as of January 1, 2030. This bill would remove the January 1, 2030, repeal date for these provisions, thereby extending the provisions indefinitely. No later than calendar days after receiving an application for a development project, the act requires a local agency to determine in writing whether the application is complete and immediately transmit that determination to the applicant.

The act, until January 1, 2030, requires a public agency, upon its determination that an application for a development project is incomplete, to provide the applicant with an exhaustive list of items that were not complete, as specified.

The act, until January 1, 2030, requires each city and each county to make copies of any list compiled, as described above, with respect to information required from an applicant for a housing development project, as defined, available in writing to those persons to whom the agency is required to make information available, as provided, and publicly available on the internet website of the city or county.

This bill would remove the January 1, 2030, repeal date with respect to provision of an exhaustive list of requirements not complete, and availability of lists compiled with respect to housing development projects, thereby extending these provisions indefinitely. The act requires public agencies to approve or disapprove of a development project within certain timeframes, as specified.

The act, until January 1, 2030, generally requires that a public agency that is the lead agency for certain development projects approve or disapprove the project within days from the date of certification by the lead agency of an environmental impact report prepared for the project, but reduces this time period to days from the certification of an environmental impact report if the project meets certain additional conditions relating to affordability.

The act, until January 1, 2030, defines the term “development project” for this purpose to mean a housing development project, as that term is defined for purposes of the Housing Accountability Act, except as specified. Beginning January 1, 2030, the act extends the above-described timelines from days to days, and from days to days, respectively, and defines the term “development project” to mean a use consisting of residential units only or certain mixed-use developments.

This bill would remove the January 1, 2030, repeal date for the 90-day and 60-day timelines described above and for the definition of “housing development project,” thereby extending these provisions indefinitely, and would make a conforming change by repealing the above-described provisions that take effect on January 1, 2030. The bill would also require that a public agency that is the lead agency for a development project approve or disapprove a project within days from the date of receipt of a complete application, if the project is subject to ministerial review by the public agency.

The act authorizes an applicant for a permit for a development project, if any provision of law requires a lead agency or responsible agency to provide public notice of the development project or to hold a public hearing on the development project and the agency has not done so at least days before the expiration of specified time limits, to file an action to compel the agency to provide the public notice or hold the hearing, as specified.

In the event that a lead agency or a responsible agency fails to act to approve or to disapprove a development project within the time limits required by the act, existing law deems the failure to act as an approval of the permit application for the development project, only if the public notice required by law has occurred, as specified. This bill would remove the requirement that the public notice required by law has occurred, in order for the failure to act to be deemed as an approval of the permit application for the development project.

The act provides that the time limits specified in the act are maximum time limits for approving or disapproving development projects. The act requires, if possible, public agencies to approve or disapprove development projects in shorter periods of time. This bill would require that the time limits specified in the act only apply to the extent that the time limits are equal to or shorter than the applicable time limits for public agency review established in any other law.

(12) Existing law, known as the Housing Crisis Act of 2019, prohibits an affected county or an affected city, as defined and determined by the Department of Housing and Community Development, as specified, from enacting certain development policies, standards, or conditions with respect to land where housing is an allowable use, including policies, standards, or conditions that impose a moratorium or similar restriction or limitation on housing development or that limit the number of land use approvals or permits necessary for the approval and construction of housing that will be issued or allocated.

The act also prohibits an affected city or an affected county from approving a housing development project that will require the demolition of one or more residential dwelling units, unless the project will create at least as many residential dwelling units as will be demolished, or from approving a development project that will require the demolition of occupied or vacant protected units or that is located on a site where protected units were demolished in the previous years, unless specified conditions are met. The act repeals these provisions as of January 1, 2034.

This bill would remove the above-described January 1, 2034, repeal date, thereby extending application of the Housing Crisis Act of indefinitely.

(13) Existing law requires the State Energy Resources Conservation and Development Commission to prescribe, by regulation, building design and construction standards and energy and water conservation design standards for new residential and nonresidential buildings to reduce wasteful, uneconomic, inefficient, and unnecessary consumption of energy and to manage energy loads to help maintain electrical grid reliability. Existing law requires the commission to periodically review the standards and adopt revisions that it deems necessary.

This bill would require the commission, during the triennial update of the building energy efficiency standards, to review measures used to achieve a precise level of energy efficiency within a specific level of comfort, as specified. The bill would require the commission, on or before January 1, 2030, to report and make recommendations to the Legislature on how these measures could be incorporated into the building energy efficiency standards during their next available update.

(14) Existing law, the California Coastal Act of 1976, establishes the California Coastal Commission and prescribes the powers and responsibilities of the commission with regard to the regulation of development along the California coast. This bill would require, no later than July 1, 2027, the commission to create an electronic submission process and accept submissions from any application pursuant to the California Coastal Act of through electronic mail or other electronic means.

The act prescribes procedures for the approval and certification of a local coastal program by the commission, and provides for the delegation of development review authority to a local government, as defined, with a certified local coastal program.

Under the act, an action taken by a local government after certification of its local coastal program on a coastal development permit application may be appealed to the commission only on specified grounds and only for certain types of developments, including certain developments located in a sensitive coastal resource area and any development approved by a coastal county that is not designated as the principal permitted use under the zoning ordinance or zoning district map, as specified.

This bill would exempt a residential project, as defined, from the above provisions relating to the appeal of developments located in a sensitive coastal resource area and developments approved by a coastal county. The bill would also require the commission to submit an annual report to the Legislature that includes specified information relating to residential projects for the preceding calendar year, as specified.

(15) Existing law, the Personal Income Tax Law, authorizes various credits against the taxes imposed by that law, including a credit for qualified renters in the amount of $120 for spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $50,000, as adjusted, or less, and in the amount of $60 for other individuals if adjusted gross income is $25,000, as adjusted, or less.

Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. Existing law establishes the continuously appropriated Tax Relief and Refund Account in the General Fund and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount allowable as an earned income tax credit in excess of any tax liabilities.

This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, and only when specified in a bill relating to the Budget Act, would increase the credit amount for a qualified renter to $250 and $500, as provided. In the event the increased credit amount is not specified in a bill relating to the Budget Act, the existing credit amounts of $120 and $60, as described above, respectively, would be the credit amounts for that taxable year. The bill would provide findings and declarations relating to the goals, purposes, and objectives of this credit.

The bill, for credits allowable for taxable years beginning on or after January 1, 2026, and before January 1, 2030, would provide that the credit amount in excess of the qualified renter’s liability would be refundable and paid from the Tax Relief and Refund Account to the qualified renter upon appropriation by the Legislature.

(16) By imposing additional duties on local officials, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. MAJORITY NO YES YES NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

Section 714.3 of the Civil Code is amended to read: 714.3. (

a) Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in real property that either effectively prohibits or unreasonably restricts the construction or use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets the requirements of

Article 2 (commencing with

Section 66314) of

Chapter or

Article 3 (commencing with

Section 66333) of

Chapter of Division of Title of the Government Code is void and unenforceable. (

b) This

section does not apply to provisions that impose reasonable restrictions on accessory dwelling units or junior accessory dwelling units. For purposes of this subdivision, “reasonable restrictions” means restrictions that do not unreasonably increase the cost to construct, effectively prohibit the construction of, or extinguish the ability to otherwise construct, an accessory dwelling unit or junior accessory dwelling unit consistent with the provisions of

Article 2 (commencing with

Section 66314) or

Article 3 (commencing with

Section 66333) of

Chapter of Division of Title of the Government Code. “Reasonable restrictions” shall not include any fees or other financial requirements. <caml:Num>SEC. 2.</caml:Num><caml:ActionLine action="IS_REPEALED" xlink:href="urn:caml:codes:CIV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'4.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1947.1.'%5D)" xlink:label="fractionType: LAW_SECTION" xlink:type="locator">Section 1947.1 of the <caml:DocName>Civil Code</caml:DocName> is repealed.</caml:ActionLine><caml:Fragment/></caml:BillSection>"?>

SEC.

Section 1950.3 is added to the Civil Code , to read: 1950.3. (

a) A landlord or their agent shall not charge a tenant for any fees beyond the amount for rent, including, but not limited to: (1)<xhtml:span class="EnSpace"/>Any fee that is not specified in the rental agreement.</xhtml:p><xhtml:p>(2)<xhtml:span class="EnSpace"/>A late fee for the late payment of rent that is equal to more than percent of the monthly rental rate. A late fee shall not be charged for the late payment of rent unless the rent is overdue by seven days or more.</xhtml:p><xhtml:p>(3)</xhtml:p>"?>

(1) A processing fee, including a convenience fee or a check cashing fee, for the payment of rent or any other fees or deposits. (4)<xhtml:span class="EnSpace"/>A processing or administrative fee that a reasonable person would deem as being “the cost of doing business.”</xhtml:p><xhtml:p>(5)</xhtml:p>"?>

(2) A fee for a tenant to own a household pet. (6)<xhtml:span class="EnSpace"/>A fee for a parking space.</xhtml:p><xhtml:p>(b)<xhtml:span class="EnSpace"/>Notwithstanding any other law, any fees that</xhtml:p>"?> (b)

(1) Notwithstanding subdivision (a), the landlord or their agent may charge a tenant a fee beyond the amount for rent, if the fee is specifically listed in the rental agreement. (2) (

A) Any fees that a landlord or their agent may charge a tenant pursuant to paragraph (1) that are in addition to the monthly rental amount shall not, in total, exceed more than percent of the monthly rental amount. (

B) This paragraph shall not apply to any fee that is imposed by a governmental entity or a utility. (3) (

A) For any fee that is imposed by a governmental entity or a utility, the landlord shall pass the fee onto the tenant without imposing a surcharge or an additional amount beyond the fee imposed by the governmental entity or utility. (

B) The landlord or their agent shall retain a record of the fee imposed by the governmental entity or utility which may be reviewed by the tenant. (

c) For purposes of this section, “rent” means the monthly rate charged to a tenant for the occupancy of a rental housing unit. (

d) If a landlord or their agent charges and collects a fee from a tenant that is not authorized by law, the landlord or their agent is liable to the tenant in a civil action for the cost of the fee, plus percent interest compounded daily from the date the fee was collected.

SEC.

Section 1950.6 of the Civil Code is amended to read: 1950.6. (

a) Notwithstanding

Section 1950.5, when a landlord or their agent receives a request to rent a residential property from an applicant, the landlord or their agent may charge, pursuant to subdivision (c), that applicant an application screening fee to cover the actual costs of the screening. The screening may include, but is not limited to, tenant screening reports produced by tenant screening services and consumer credit reports produced by consumer credit reporting agencies as defined in

Section 1785.3. A landlord or their agent may, but is not required to, accept and rely upon a consumer credit report presented by an applicant. (

b) The amount of the application screening fee shall not be greater than the actual out-of-pocket costs of conducting the screening, including, but not limited to, the cost of using a tenant screening service or a consumer credit reporting service. In no case shall the amount of the application screening fee charged by the landlord or their agent be greater than thirty dollars ($30) per applicant. The thirty-dollar ($30) application screening fee may be adjusted annually by the landlord or their agent commensurate with an increase in the Consumer Price Index, beginning on January 1, 1998. (c)

(1) A landlord or their agent shall not charge an applicant an application screening fee when they know or should have known that no rental unit is available at that time or will be available within a reasonable period of time.

(2) A landlord or their agent may charge an applicant an application screening fee only if the landlord or their agent, at the time the application screening fee is collected, offers any of the following: (

A) An application screening process that complies with all of the following: (

i) Completed applications are considered, as provided for in the landlord’s established screening criteria, in the order in which the completed applications were received.

The landlord’s screening criteria shall be provided to the applicant in writing together with the application form. (ii) The first applicant who meets the landlord’s established screening criteria is approved for tenancy. (iii) Applicants are not charged an application screening fee unless or until their application is actually considered. (iv) Clause (iii) shall not be considered violated if a landlord or their agent inadvertently collects an application screening fee from an applicant as the result of multiple concurrent application submissions, provided that the landlord or their agent issues a refund of the application screening fee within days to any applicant whose application is not considered.

The landlord may offer, as an alternative to refunding the screening fee, the option, at the applicant’s discretion, for the screening fee paid by the applicant to be applied to an application for another rental unit offered by the landlord. A landlord or their agent shall not be required to refund an application screening fee to an applicant whose application is denied, after consideration, because the applicant does not meet the landlord’s established screening criteria. (

B) An application screening process in which the landlord or their agent returns the entire screening fee to any applicant who is not selected for tenancy, regardless of the reason, within days of selecting an applicant for tenancy or days of when the application was submitted, whichever occurs first. (

d) The landlord or their agent shall provide, personally, or by mail, the applicant with a receipt for the fee paid by the applicant, which receipt shall itemize the out-of-pocket expenses. The landlord or their agent and the applicant may agree to have the landlord provide a copy of the receipt for the fee paid by the applicant to an email account provided by the applicant. (

e) If the landlord or their agent does not obtain a tenant screening report or a consumer credit report, the landlord or their agent shall return any amount of the screening fee that is not used for the purposes authorized by this

section to the applicant. (

f) If an application screening fee has been paid by the applicant, the landlord or their agent shall provide a copy of the consumer credit report to the applicant who is the subject of that report by personal delivery, mail, or email within days of the landlord or their agent receiving the report. (

g) Nothing in this

section prevents a landlord from accepting a reusable screening report pursuant to

Section 1950.1. (

h) As used in this section, “landlord” means an owner of residential rental property. (

i) As used in this section, “application screening fee” means any nonrefundable payment of money charged by a landlord or their agent to an applicant, the purpose of which is to purchase a tenant screening report or a consumer credit report. (

j) As used in this section, “applicant” means any entity or individual who makes a request to a landlord or their agent to rent a residential housing unit, or an entity or individual who agrees to act as a guarantor or cosigner on a rental agreement. (

k) The application screening fee shall not be considered an “advance fee” as that term is used in

Section of the Business and Professions Code, and shall not be considered “security” as that term is used in

Section 1950.5. (

l) This

section is not intended to preempt any provisions or regulations that govern the collection of deposits and fees under federal or state housing assistance programs.

SEC.

Section 2924.13 is added to the Civil Code , to read: <caml:Num>2924.13.</caml:Num><caml:LawSectionVersion id="id_647151C0-963A-497D-BEE8-38D456055772"><caml:Content><xhtml:p>(a)<xhtml:span class="EnSpace"/>A debt securing a subordinate mortgage is deemed abandoned in its entirety if any of the following conditions is met:</xhtml:p></caml:Content></caml:LawSectionVersion></caml:LawSection>"?> 2924.13. (

a) As used in this section: (1) “Borrower” has the same meaning as defined in

Section 2929.5. (2) “Mortgage servicer” includes the current mortgage servicer and any prior mortgage servicers. (

b) The following conduct constitutes an unlawful practice in connection with subordinate mortgage:

(1) The mortgage servicer did not provide the borrower with any written communication regarding the loan secured by the mortgage for at least three years.

(2) The mortgage servicer failed to provide a transfer of loan servicing notice to the borrower when required to provide that notice by law, including, but not limited to, the federal Real Estate Settlement Procedures Act, as amended (12 U.S.C.

Sec. 2601 et seq.).

(3) The mortgage servicer failed to provide a transfer of loan ownership notice to the borrower when required to provide that notice by law, including, but not limited to, the federal Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.).

(4) The mortgage servicer provided a form to the borrower indicating that the debt had been written off or discharged, including, but not limited to, an Internal Revenue Service Form 1099. (b)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>A portion of a debt securing a subordinate mortgage is deemed abandoned if a mortgage servicer does not provide to the borrower a statement required by law to be provided to the borrower, including,</xhtml:p>"?>

(5) The mortgage servicer failed to provide a periodic account statement to the borrower when required to provide that statement by law, including, but not limited to, the federal Truth in Lending Act, as amended (15 U.S.C. 1601, et seq.). (2)<xhtml:span class="EnSpace"/>The portion of the debt that is deemed abandoned pursuant to paragraph (1) is the portion that would have been included in the statement described in paragraph (1).</xhtml:p>"?> (c) "?>A mortgage servicer shall not conduct or threaten to conduct a nonjudicial foreclosure until the mortgage servicer does both of the following:

(1) Records or causes to be recorded, in the office of the county recorder of the county that the encumbered property is located, a certification under penalty of perjury that either: (

A) The mortgage servicer did not engage in an unlawful practice as described in subdivision (b). (

B) The mortgage servicer lists all instances when it committed an unlawful practice as described in subdivision (b). (2)<xhtml:span class="EnSpace"/>A mortgage servicer shall not exercise a power of sale in a mortgage or deed of trust unless the mortgage servicer records a certification under penalty of perjury that no portion of the debt secured by the mortgage or deed of trust is abandoned pursuant to subdivision (

a) or (b).</xhtml:p>"?>

(2) Sends both of the following documents to the borrower by United States certified mail with return receipt requested to the last known mailing address of the borrower: (

A) A notice providing that if the borrower believes the mortgage servicer engaged in an unlawful practice described in subdivision (

b) or misrepresented its compliance history, the borrower may petition the court for relief before the foreclosure sale. (

B) A copy of the certification recorded pursuant to paragraph (1). (e)<xhtml:span class="EnSpace"/>(1)<xhtml:span class="EnSpace"/>In addition to other available remedies, a court may</xhtml:p>"?> (

d) If the borrower petitions the court for relief before the foreclosure sale, the court shall enjoin a proposed foreclosure sale pursuant to a power of sale in a mortgage or deed of trust until a final determination on the petition has been made. (2)</xhtml:p>"?> (

e) It shall be an affirmative defense in a judicial foreclosure proceeding if the court finds the mortgage servicer engaged in any of the unlawful practices specified in subdivision (b). (

f) The court may provide equitable remedies that the court deems appropriate, depending on the extent and severity of the servicer’s violations. The equitable remedies may include, but are not limited to, striking all or a portion of the arrears claim, barring foreclosure, or permitting foreclosure subject to future compliance and corrected arrearage claim. (

g) A borrower may also petition the court to set a nonjudicial foreclosure sale aside when a mortgage servicer’s recorded certification of compliance was false or incomplete.

SEC. 5.

Section of the Civil Code is amended to read: 5850. (

a) If an association adopts or has adopted a policy imposing any monetary penalty, including any fee, on any association member for a violation of the governing documents, including any monetary penalty relating to the activities of a guest or tenant of the member, the board shall adopt and distribute to each member, in the annual policy statement prepared pursuant to

Section 5310, a

schedule of the monetary penalties that may be assessed for those violations, which shall be in accordance with authorization for member discipline contained in the governing documents. (

b) Any new or revised monetary penalty that is adopted after complying with subdivision (

a) may be included in a supplement that is delivered to the members individually, pursuant to

Section 4040. (

c) A monetary penalty for a violation of the governing documents shall not exceed the lesser of the following:

(1) The monetary penalty stated in the

schedule of monetary penalties or supplement that is in effect at the time of the violation.

(2) One hundred dollars ($100) per violation. (

d) An association shall provide a copy of the most recently distributed

schedule of monetary penalties, along with any applicable supplements to that schedule, to any member upon request.

SEC. 6.

Section of the Civil Code is amended to read: 5855. (

a) When the board is to meet to consider or impose discipline upon a member, or to impose a monetary charge as a means of reimbursing the association for costs incurred by the association in the repair of damage to the common area and facilities caused by a member or the member’s guest or tenant, the board shall notify the member in writing, by either personal delivery or individual delivery pursuant to

Section 4040, at least days prior to the meeting. (

b) The notification shall contain, at a minimum, the date, time, and place of the meeting, the nature of the alleged violation for which a member may be disciplined or the nature of the damage to the common area and facilities for which a monetary charge may be imposed, and a statement that the member has a right to attend and may address the board at the meeting. The board shall meet in executive session if requested by the member. (

c) A member shall have the opportunity to cure the violation prior to the meeting. The board shall not impose discipline in either of the following circumstances:

(1) The member cures the violation prior to the meeting.

(2) If curing the violation would take longer than the time between the notice provided pursuant to subdivision (

a) and the meeting, the member provides financial commitment to cure the violation. (

d) If the board imposes discipline on a member or imposes a monetary charge on the member for damage to the common area and facilities, the board shall provide the member with a written notification of the decision, by either personal delivery or individual delivery pursuant to

Section 4040, within days following the action. (

e) A disciplinary action or the imposition of a monetary charge for damage to the common area shall not be effective against a member unless the board fulfills the requirements of this section.

SEC.

Section 8590.15.5 is added to the Government Code , to read: 8590.15.5. Upon appropriation by the Legislature, pursuant to this article, CRMP shall fund the seismic retrofitting of affordable multifamily housing. (

a) Funding provided under this

section shall be limited to affordable multifamily housing and consistent with this article. (

b) CRMP shall prioritize affordable multifamily housing serving lower income households. (

c) For purposes of this section, the following

definitions apply: (1) “Lower income households” has the same meaning as the term is defined in

Section 50079.5 of the Health and Safety Code, except that up to percent of the units in the development, including total units and density bonus units, may be for moderate-income households. (2) “Moderate-income households” has the same meaning as the term is defined in

Section of the Health and Safety Code.

SEC. 8.

Section of the Government Code is amended to read: 54221. As used in this article, the following

definitions shall apply: (a) (1) “Local agency” means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property.

(2) The Legislature finds and declares that the term “district” as used in this

article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this

article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law. (b) (1) “Surplus land” means land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use.

Land shall be declared either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures. A local agency, on an annual basis, may declare multiple parcels as “surplus land” or “exempt surplus land.” (2) “Surplus land” includes land held in the Community Redevelopment Property Trust Fund pursuant to

Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to

Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.

(3) Nothing in this

article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with

Section 54226.

(4) Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is “exempt surplus land” pursuant to subparagraph (A), (B), (E), (K), (L), or (

Q) of paragraph (1) of subdivision (

f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (

a) of

Section 54222, at least days before the exemption takes effect. (c)

(1) Except as provided in paragraph (2), “agency’s use” shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agency’s governing board, for agency work or operations, including, but not limited to, utility sites, property owned by a port that is used to support logistics uses, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, sites for broadband equipment or wireless facilities, and buffer sites near sensitive governmental uses, including, but not limited to, waste disposal sites, and wastewater treatment plants. “Agency’s use” by a local agency that is a district shall also include land disposed for uses described in subparagraph (

B) of paragraph (2). (2) (A) “Agency’s use” shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agency’s use. (

B) In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, “agency’s use” may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agency’s governing body takes action in a public meeting declaring that the use of the site will do one of the following: (

i) Directly further the express purpose of agency work or operations. (ii) Be expressly authorized by a statute governing the local agency, provided the district complies with

Section 54233.5 if applicable. (d) (1) “Dispose” means either of the following: (

A) The sale of the surplus land. (

B) The entering of a lease for surplus land, which is for a term longer than years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024. (2) “Dispose” shall not mean either of the following: (

A) The entering of a lease for surplus land, which is for a term of years or less, inclusive of any extension or renewal options included in the terms of the initial lease. (

B) The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease. (e) “Open-space purposes” means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources. (f)

(1) Except as provided in paragraph (2), “exempt surplus land” means any of the following: (

A) Surplus land that is transferred pursuant to

Section 25539.4 or 37364. (

B) Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. (

C) Surplus land that a local agency is exchanging for another property necessary for the agency’s use. “Property” may include easements necessary for the agency’s use. (

D) Surplus land that a local agency is transferring to another local, state, or federal agency, or to a third-party intermediary for future dedication for the receiving agency’s use, or to a federally recognized California Indian tribe. If the surplus land is transferred to a third-party intermediary, the receiving agency’s use must be contained in a legally binding agreement at the time of transfer to the third-party intermediary. (

E) Surplus land that is a former street, right-of-way, or easement, and is conveyed to an owner of an adjacent property. (F) (

i) Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts percent of the residential units to persons and families of low or moderate income, with at least percent of the residential units restricted to lower income households, as defined in

Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in

Section 50052.5 or of the Health and Safety Code, for years for rental housing, 45 years for ownership housing, and years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability, and in no event shall the maximum affordable sales price or rent level be higher than percent below the median market rents or sales prices for the neighborhood in which the site is located. (ii) The requirements of clause (

i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation. (G) (

i) Surplus land that is subject to a local agency’s open, competitive solicitation or that is put to open, competitive bid by a local agency, provided that all entities identified in subdivision (

a) of

Section will be invited to participate in the process, for a housing or a mixed-use development that is more than one acre and less than acres in area, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined, that includes not less than residential units, and that restricts at least percent of the residential units to lower income households, as defined in

Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and of the Health and Safety Code, for years for rental housing, 45 years for ownership housing, and years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability. (ii) The requirements of clause (

i) shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation. (H) (

i) Surplus land totaling or more acres, consisting of either a single parcel, or two or more adjacent or non-adjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute. That surplus land shall be subject to a local agency’s open, competitive solicitation process or put out to open, competitive bid by a local agency, provided that all entities identified in subdivision (

a) of

Section will be invited to participate in the process for a housing or mixed-use development. (ii) The aggregate development shall include the greater of the following: (

I) Not less than residential units. (II) A number of residential units equal to times the number of acres of the surplus land or 10,000 residential units, whichever is less. (iii) At least percent of the residential units shall be restricted to lower income households, as defined in

Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent pursuant to Sections 50052.5 and of the Health and Safety Code, for a minimum of years for rental housing, 45 years for ownership housing, and years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability. (iv) If nonresidential development is included in the development pursuant to this subparagraph, at least percent of the total planned units affordable to lower income households shall be made available for lease or sale and permitted for use and occupancy before or at the same time with every percent of nonresidential development made available for lease or sale and permitted for use and occupancy. (

v) A violation of this subparagraph is subject to the penalties described in

Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph. A local agency shall only dispose of land pursuant to this subparagraph through a disposition and development agreement that includes an indemnification clause that provides that if an action occurs after disposition violates this subparagraph, the person or entity that acquired the property shall be liable for the penalties. (vi) The requirements of clauses (

i) to (v), inclusive, shall be contained in a covenant or restriction recorded against the surplus land at the time of sale that shall run with the land and be enforceable against any owner who violates the covenant or restriction and each successor in interest who continues the violation. (

I) A mixed-use development, which may include more than one publicly owned parcel, that meets all of the following conditions: (

i) The development restricts at least percent of the residential units to lower income households, as defined in

Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and of the Health and Safety Code, for years for rental housing, 45 years for ownership housing, and years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability. (ii) At least percent of the square footage of the new construction associated with the development is designated for residential use. (iii) The development is not located in an urbanized area, as defined in

Section 21094.5 of the Public Resources Code. (J) (

i) Surplus land that is subject to a valid legal restriction that is not imposed by the local agency and that makes housing prohibited, unless there is a feasible method to satisfactorily mitigate or avoid the prohibition on the site. A declaration of exemption pursuant to this subparagraph shall be supported by documentary evidence establishing the valid legal restriction. For the purposes of this section, “documentary evidence” includes, but is not limited to, a contract, agreement, deed restriction, statute, regulation, or other writing that documents the valid legal restriction. (ii) Valid legal restrictions include, but are not limited to, all of the following: (

I) Existing constraints under ownership rights or contractual rights or obligations that prevent the use of the property for housing, if the rights or obligations were agreed to prior to September 30, 2019. (II) Conservation or other easements or encumbrances that prevent housing development. (III) Existing leases, or other contractual obligations or restrictions, if the terms were agreed to prior to September 30, 2019. (IV) Restrictions imposed by the source of funding that a local agency used to purchase a property, provided that both of the following requirements are met: (ia) The restrictions limit the use of those funds to purposes other than housing. (ib) The proposed disposal of surplus land meets a use consistent with that purpose. (iii) Valid legal restrictions that would make housing prohibited do not include either of the following: (

I) An existing nonresidential land use designation on the surplus land. (II) Covenants, restrictions, or other conditions on the property rendered void and unenforceable by any other law, including, but not limited to,

Section 714.6 of the Civil Code. (iv) Feasible methods to mitigate or avoid a valid legal restriction on the site do not include a requirement that the local agency acquire additional property rights or property interests belonging to third parties. (

K) Surplus land that was granted by the state in trust to a local agency or that was acquired by the local agency for trust purposes by purchase or exchange, and for which disposal of the land is authorized or required subject to conditions established by statute. (

L) Land that is subject to either of the following, unless compliance with this

article is expressly required: (

i) Section 17515, 81192, 81397, 81399, 81420, or of the Education Code. (ii)

Part 14 (commencing with

Section 53570) of Division of the Health and Safety Code. (

M) Surplus land that is a former military base that was conveyed by the federal government to a local agency, and is subject to

Article 8 (commencing with

Section 33492.125) of

Chapter 4.5 of Part of Division of the Health and Safety Code, provided that all of the following conditions are met: (

i) The former military base has an aggregate area greater than five acres, is expected to include a mix of residential and nonresidential uses, and is expected to include no fewer than 1,400 residential units upon completion of development or redevelopment of the former military base. (ii) The affordability requirements for residential units shall be governed by a settlement agreement entered into prior to September 1, 2020. Furthermore, at least percent of the initial 1,400 residential units developed shall be restricted to lower income households, as defined in

Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and of the Health and Safety Code, for years for rental housing, 45 years for ownership housing, and years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability. (iii) Before disposition of the surplus land, the agency adopts written findings that the land is exempt surplus land pursuant to this subparagraph. (iv) Before disposition of the surplus land, the recipient has negotiated a project labor agreement consistent with the local agency’s project stabilization agreement resolution, as adopted on February 2, 2021, and any succeeding ordinance, resolution, or policy, regardless of the length of the agreement between the local agency and the recipient. (

v) The agency includes in the annual report required by paragraph (2) of subdivision (

a) of

Section the status of development of residential units on the former military base, including the total number of residential units that have been permitted and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in

Section 50079.5 of the Health and Safety Code. A violation of this subparagraph is subject to the penalties described in

Section 54230.5. Those penalties are in addition to any remedy a court may order for violation of this subparagraph or the settlement agreement. (

N) Real property that is used by a district for an agency’s use expressly authorized in subdivision (c). (

O) Land that has been transferred before June 30, 2019, by the state to a local agency pursuant to

Section of the Streets and Highways Code and has a minimum planned residential density of at least dwelling units per acre, and includes or more residential units that are restricted to persons and families of low or moderate income, with an affordable sales price or an affordable rent, as defined in Sections 50052.5 and of the Health and Safety Code, for years for rental housing, 45 years for ownership housing, and years for rental or ownership housing located on tribal trust lands, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability.

For purposes of this subparagraph, not more than percent of the affordable units may be restricted to persons and families of moderate income and at least percent of the affordable units must be restricted to lower income households as defined in

Section 50079.5 of the Health and Safety Code. (P) (

i) Land that meets the following conditions: (

I) Land that is subject to a sectional planning area document that meets both of the following: (ia) The sectional planning area was adopted prior to January 1, 2019. (ib) The sectional planning area document is consistent with county and city general plans applicable to the land. (II) The land identified in the adopted sectional planning area document was dedicated prior to January 1, 2019. (III) On January 1, 2019, the parcels on the land met at least one of the following conditions: (ia) The land was subject to an irrevocable offer of dedication of fee interest requiring the land to be used for a specified purpose. (ib) The land was acquired through a land exchange subject to a land offer agreement that grants the land’s original owner the right to repurchase the land acquired by the local agency pursuant to the agreement if the land will not be developed in a manner consistent with the agreement. (ic) The land was subject to a grant deed specifying that the property shall be used for educational uses and limiting other types of uses allowed on the property. (IV) At least percent of the units are dedicated to lower income households, as defined in

Section 50079.5 of the Health and Safety Code, at an affordable rent, as defined by

Section of the Health and Safety Code, or an affordable housing cost, as defined by

Section 50052.5 of the Health and Safety Code, and subject to a recorded deed restriction for a period of years for rental units and years for owner-occupied units, unless a local ordinance or a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability. (

V) The land is developed at an average density of at least units per acre, calculated with respect to the entire sectional planning area. (VI) No more than percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy. (VII) No more than percent of the nonresidential square footage identified in the sectional planning area document receives its first certificate of occupancy before at least percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy. (VIII) No more than percent of the nonresidential square footage identified in the sectional planning area document shall receive its first certificate of occupancy before at least percent of the residential square footage identified in the sectional planning area document has received its first certificate of occupancy. (ii) The local agency includes in the annual report required by paragraph (2) of subdivision (

a) of

Section the status of development, including the total square footage of the residential and nonresidential development, the number of residential units that have been permitted, and what percentage of those residential units are restricted for persons and families of low or moderate income, or lower income households, as defined in

Section 50079.5 of the Health and Safety Code. (iii) The Department of Housing and Community Development may request additional information from the agency regarding land disposed of pursuant to this subparagraph. (iv) At least days prior to disposing of land declared “exempt surplus land,” a local agency shall provide the Department of Housing and Community Development a written notification of its declaration and findings in a form prescribed by the Department of Housing and Community Development.

Within days of receipt of the written notification and findings, the department shall notify the local agency if the department has determined that the local agency is in violation of this article. A local agency that fails to submit the written notification and findings shall be liable for a civil penalty pursuant to this subparagraph. A local agency shall not be liable for the civil penalty if the Department of Housing and Community Development does not notify the agency that the agency is in violation of this

article within days of receiving the written notification and findings. Once the department determines that the declarations and findings comply with subclauses (

I) to (IV), inclusive, of clause (i), the local agency may proceed with disposal of land pursuant to this subparagraph. This clause is declaratory of, and not a change in, existing law. (

v) If the local agency disposes of land in violation of this subparagraph, the local agency shall be liable for a civil penalty calculated as follows: (

I) For a first violation, 30 percent of the greater of the final sale price or the fair market value of the land at the time of disposition. (II) For a second or subsequent violation, 50 percent of the greater of the final sale price or the fair market value of the land at the time of disposition. (III) For purposes of this subparagraph, fair market value shall be determined by an independent appraisal of the land. (IV) An action to enforce this subparagraph may be brought by any of the following: (ia) An entity identified in subdivisions (

a) to (e), inclusive, of

Section 54222. (ib) A person who would have been eligible to apply for residency in affordable housing had the agency not violated this section. (ic) A housing organization, as that term is defined in

Section 65589.5. (id) A beneficially interested person or entity. (ie) The Department of Housing and Community Development. (

V) A penalty assessed pursuant to this subparagraph shall, except as otherwise provided, be deposited into a local housing trust fund. The local agency may elect to instead deposit the penalty moneys into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund.

Penalties shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds.

The local agency shall commit and expend the penalty moneys deposited into the local housing trust fund within five years of deposit for the sole purpose of financing newly constructed housing units that are affordable to extremely low, very low, or low-income households. (VI) Five years after deposit of the penalty moneys into the local housing trust fund, if the funds have not been expended, the funds shall revert to the state and be deposited in the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund for the sole purpose of financing newly constructed housing units located in the same jurisdiction as the surplus land and that are affordable to extremely low, very low, or low-income households.

Expenditure of any penalty moneys deposited into the Building Homes and Jobs Trust Fund or the Housing Rehabilitation Loan Fund pursuant to this subdivision shall be subject to appropriation by the Legislature. (vi) For purposes of this subparagraph, the following

definitions apply: (I) “Sectional planning area” means an area composed of identifiable planning units, within which common services and facilities, a strong internal unity, and an integrated pattern of land use, circulation, and townscape planning are readily achievable. (II) “Sectional planning area document” means a document or plan that sets forth, at minimum, a site utilization plan of the sectional planning area and development standards for each land use area and designation. (vii) This subparagraph shall become inoperative on January 1, 2034. (

Q) Land that is owned by a California public-use airport on which residential uses are prohibited pursuant to Federal Aviation Administration Order 5190.6B, Airport Compliance Program,

Chapter 20 -- Compatible Land Use and Airspace Protection. (

R) Land that is transferred to a community land trust, and all of the following conditions are met: (

i) The property is being or will be developed or rehabilitated as any of the following: (

I) An owner-occupied single-family dwelling. (II) An owner-occupied unit in a multifamily dwelling. (III) A member-occupied unit in a limited equity housing cooperative. (IV) A rental housing development. (ii) Improvements on the property are or will be available for use and ownership or for rent by qualified persons, as defined in paragraph (6) of subdivision (

c) of

Section 214.18 of the Revenue and Taxation Code. (iii) (

I) A deed restriction or other instrument, requiring a contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units or on the affordability of rental units is recorded on or before the lien date following the acquisition of the property by the community land trust. (II) For the purpose of this clause, the following

definitions apply: (ia) “A contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units” means a contract described in paragraph (11) of subdivision (

a) of

Section 402.1 of the Revenue and Taxation Code. (ib) “A contract or contracts serving as an enforceable restriction on the affordability of rental units” means an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document described in subparagraph (

A) of paragraph (2) of subdivision (

g) of

Section of the Revenue and Taxation Code. (iv) A copy of the deed restriction or other instrument shall be provided to the assessor. (S) (

i) For local agencies whose primary mission or purpose is to supply the public with a transportation system, surplus land that is developed for commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or for the sole purpose of investment or generation of revenue, if the agency meets all of the following conditions: (

I) The agency has an adopted land use plan or policy that designates at least percent of the gross acreage covered by the adopted land use plan or policy for residential purposes. The adopted land use plan or policy shall also require the development of at least residential units, or at least residential units per gross acre, averaged across all land covered by the land use plan or policy, whichever is greater. (II) The agency has an adopted land use plan or policy that requires at least percent of all residential units to be developed on the parcels covered by the adopted land use plan or policy made available to lower income households, as defined in

Section of the Health and Safety Code, at an affordable sales price or rented at an affordable rent, as defined in Sections 50052.5 and of the Health and Safety Code, for years for rental housing and years for ownership housing, unless a local ordinance or the terms of a federal, state, or local grant, tax credit, or other project financing requires a longer period of affordability.

These terms shall be included in the land use plan or policy and dictate that they will be contained in a covenant or restriction recorded against the surplus land at the time of disposition that shall run with the land and be enforceable against any owner or lessee who violates the covenant or restriction and each successor in interest who continues the violation. (III) Land disposed of for residential purposes shall issue a competitive request for proposals subject to the local agency’s open, competitive solicitation process or put out to open, competitive bid by the local agency, provided that all entities identified in subdivision (

a) of

Section are invited to participate. (IV) Prior to entering into an agreement to dispose of a parcel for nonresidential development on land designated for the purposes authorized pursuant to this subparagraph in an agency’s adopted land use plan or policy, the agency, since January 1, 2020, must have entered into an agreement to dispose of a minimum of percent of the land designated for affordable housing pursuant to subclause (II). (ii) The agency may exempt at one time all parcels covered by the adopted land use plan or policy pursuant to this subparagraph.

(2) Notwithstanding paragraph (1), a written notice of the availability of surplus land for open-space purposes shall be sent to the entities described in subdivision (

b) of

Section before disposing of the surplus land, provided the land does not meet the criteria in subparagraph (

H) of paragraph (1), if the land is any of the following: (

A) Within a coastal zone. (

B) Adjacent to a historical unit of the State Parks System. (

C) Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places. (

D) Within the Lake Tahoe region as defined in

Section 66905.5. (g) “Persons and families of low or moderate income” has the same meaning as provided in

Section of the Health and Safety Code.

SEC.

Section 65584.01 of the Government Code is amended to read: 65584.01. For the fourth and subsequent revision of the housing element pursuant to

Section 65588, the department, in consultation with each council of governments, where applicable, shall determine the existing and projected need for housing for each region in the following manner: (

a) The department’s determination shall be based upon population projections produced by the Department of Finance and regional population forecasts used in preparing regional transportation plans, in consultation with each council of governments.

If the total regional population forecast for the projection year, developed by the council of governments and used for the preparation of the regional transportation plan, is within a range of 1.5 percent of the total regional population forecast for the projection year by the Department of Finance, then the population forecast developed by the council of governments shall be the basis from which the department determines the existing and projected need for housing in the region.

If the difference between the total population projected by the council of governments and the total population projected for the region by the Department of Finance is greater than 1.5 percent, then the department and the council of governments shall meet to discuss variances in methodology used for population projections and seek agreement on a population projection for the region to be used as a basis for determining the existing and projected housing need for the region.

If agreement is not reached, then the population projection for the region shall be the population projection for the region prepared by the Department of Finance as may be modified by the department as a result of discussions with the council of governments. (b)

(1) At least months prior to the scheduled revision pursuant to

Section and prior to developing the existing and projected housing need for a region, the department shall meet and consult with the council of governments regarding the assumptions and methodology to be used by the department to determine the region’s housing needs. The council of governments shall provide data assumptions from the council’s projections, including, if available, the following data for the region: (

A) Anticipated household growth associated with projected population increases. (

B) Household size data and trends in household size. (

C) The percentage of households that are overcrowded within the region and the percentage of households that are overcrowded throughout the nation. For purposes of this subparagraph, the term “overcrowded” means more than one resident per room in each room in a dwelling. (

D) The rate of household formation, or headship rates, based on age, gender, ethnicity, or other established demographic measures. (

E) The vacancy rates in existing housing stock, and the vacancy rates for healthy housing market functioning and regional mobility, as well as housing replacement needs. For purposes of this subparagraph, the vacancy rate for a healthy rental housing market shall be considered no less than percent. (

F) Other characteristics of the composition of the projected population. (

G) The relationship between jobs and housing, including any imbalance between jobs and housing. (

H) The percentage of households that are cost burdened within the region and the percentage of households that are cost burdened throughout the nation. For the purposes of this subparagraph, the term “cost burdened” means the share of very low, low-, moderate-, and above moderate-income households that are paying more than percent of household income on housing costs. (

I) The loss of units during a state of emergency that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with

Section 8550) of Division of Title 2), during the planning period immediately preceding the relevant revision pursuant to

Section that have yet to be rebuilt or replaced at the time of the data request. (

J) The housing needs of individuals and families experiencing homelessness. (

i) The data utilized by the council of governments shall align with homelessness data best practices as determined by the department. (ii) Sources of homelessness data may include the Homeless Data Integration System administered by the Interagency Council on Homelessness, the homeless point-in-time count, or other sources deemed appropriate by the department.

(2) The department may accept or reject the information provided by the council of governments or modify its own assumptions or methodology based on this information. After consultation with the council of governments, the department shall make determinations in writing on the assumptions for each of the factors listed in subparagraphs (

A) to (I), inclusive, of paragraph (1) and the methodology it shall use and shall provide these determinations to the council of governments. The methodology submitted by the department may make adjustments based on the region’s total projected households, which includes existing households as well as projected households. (c)

(1) After consultation with the council of governments, the department shall make a determination of the region’s existing and projected housing need based upon the assumptions and methodology determined pursuant to subdivision (b). The region’s existing and projected housing need shall reflect the achievement of a feasible balance between jobs and housing within the region using the regional employment projections in the applicable regional transportation plan. Within days following notice of the determination from the department, the council of governments may file an objection to the department’s determination of the region’s existing and projected housing need with the department.

(2) The objection shall be based on and substantiate either of the following: (

A) The department failed to base its determination on the population projection for the region established pursuant to subdivision (a), and shall identify the population projection which the council of governments believes should instead be used for the determination and explain the basis for its rationale. (

B) The regional housing need determined by the department is not a reasonable application of the methodology and assumptions determined pursuant to subdivision (b). The objection shall include a proposed alternative determination of its regional housing need based upon the determinations made in subdivision (b), including analysis of why the proposed alternative would be a more reasonable application of the methodology and assumptions determined pursuant to subdivision (b).

(3) If a council of governments files an objection pursuant to this subdivision and includes with the objection a proposed alternative determination of its regional housing need, it shall also include documentation of its basis for the alternative determination. Within days of receiving an objection filed pursuant to this section, the department shall consider the objection and make a final written determination of the region’s existing and projected housing need that includes an explanation of the information upon which the determination was made.

(4) In regions in which the department is required to distribute the regional housing need pursuant to

Section 65584.06, no city or county may file an objection to the regional housing need determination. (

d) Statutory changes enacted after the date the department issued a final determination pursuant to this

section shall not be a basis for a revision of the final determination.

SEC.

Section 65584.04 of the Government Code is amended to read: 65584.04. (

a) At least two years before a scheduled revision required by

Section 65588, each council of governments, or delegate subregion as applicable, shall develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, where applicable pursuant to this section. The methodology shall further the objectives listed in subdivision (

d) of

Section 65584. (b)

(1) No more than six months before the development of a proposed methodology for distributing the existing and projected housing need, each council of governments shall survey each of its member jurisdictions to request, at a minimum, information regarding the factors listed in subdivision (

e) that will allow the development of a methodology based upon the factors established in subdivision (e).

(2) With respect to the objective in paragraph (5) of subdivision (

d) of

Section 65584, the survey shall review and compile information that will allow the development of a methodology based upon the issues, strategies, and actions that are included, as available, in an Analysis of Impediments to Fair Housing Choice or an Assessment of Fair Housing completed by any city or county or the department that covers communities within the area served by the council of governments, and in housing elements adopted pursuant to this

article by cities and counties within the area served by the council of governments.

(3) The council of governments shall seek to obtain the information in a manner and format that is comparable throughout the region and utilize readily available data to the extent possible.

(4) The information provided by a local government pursuant to this

section shall be used, to the extent possible, by the council of governments, or delegate subregion as applicable, as source information for the methodology developed pursuant to this section. The survey shall state that none of the information received may be used as a basis for reducing the total housing need established for the region pursuant to

Section 65584.01.

(5) If the council of governments fails to conduct a survey pursuant to this subdivision, a city, county, or city and county may submit information related to the items listed in subdivision (

e) before the public comment period provided for in subdivision (d). (

c) The council of governments shall electronically report the results of the survey of fair housing issues, strategies, and actions compiled pursuant to paragraph (2) of subdivision (b). The report shall describe common themes and effective strategies employed by cities and counties within the area served by the council of governments, including common themes and effective strategies around avoiding the displacement of lower income households.

The council of governments shall also identify significant barriers to affirmatively furthering fair housing at the regional level and may recommend strategies or actions to overcome those barriers. A council of governments or metropolitan planning organization, as appropriate, may use this information for any other purpose, including publication within a regional transportation plan adopted pursuant to

Section or to inform the land use assumptions that are applied in the development of a regional transportation plan. (

d) Public participation and access shall be required in the development of the methodology and in the process of drafting and adoption of the allocation of the regional housing needs. Participation by organizations other than local jurisdictions and councils of governments shall be solicited in a diligent effort to achieve public participation of all economic segments of the community as well as members of protected classes under

Section and households with special housing needs under paragraph (7) of subdivision (

a) of

Section 65583. The proposed methodology, along with any relevant underlying data and assumptions, an explanation of how information about local government conditions gathered pursuant to subdivision (

b) has been used to develop the proposed methodology, how each of the factors listed in subdivision (

e) is incorporated into the methodology, and how the proposed methodology furthers the objectives listed in subdivision (

d) of

Section 65584, shall be distributed to all cities, counties, any subregions, and members of the public who have made a written or electronic request for the proposed methodology and published on the council of governments’, or delegate subregion’s, internet website. The council of governments, or delegate subregion, as applicable, shall conduct at least one public hearing to receive oral and written comments on the proposed methodology. (

e) To the extent that sufficient data is available from local governments pursuant to subdivision (

b) or other sources, each council of governments, or delegate subregion as applicable, shall consider including the following factors in developing the methodology that allocates regional housing needs:

(1) Each member jurisdiction’s existing and projected jobs and housing relationship. This shall include an estimate based on readily available data on the number of low-wage jobs within the jurisdiction and how many housing units within the jurisdiction are affordable to low-wage workers as well as an estimate based on readily available data, of projected job growth and projected household growth by income level within each member jurisdiction during the planning period.

(2) The opportunities and constraints to development of additional housing in each member jurisdiction, including all of the following: (

A) Lack of capacity for sewer or water service due to federal or state laws, regulations or regulatory actions, or supply and distribution decisions made by a sewer or water service provider other than the local jurisdiction that preclude the jurisdiction from providing necessary infrastructure for additional development during the planning period. (

B) The availability of land suitable for urban development or for conversion to residential use, the availability of underutilized land, and opportunities for infill development and increased residential densities. The council of governments may not limit its consideration of suitable housing sites or land suitable for urban development to existing zoning ordinances and land use restrictions of a locality, but shall consider the potential for increased residential development under alternative zoning ordinances and land use restrictions.

The determination of available land suitable for urban development may exclude lands where the Federal Emergency Management Agency (FEMA) or the Department of Water Resources has determined that the flood management infrastructure designed to protect that land is not adequate to avoid the risk of flooding. (

C) Lands preserved or protected from urban development under existing federal or state programs, or both, designed to protect open space, farmland, environmental habitats, and natural resources on a long-term basis, including land zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts conversion to nonagricultural uses. (

D) County policies to preserve prime agricultural land, as defined pursuant to

Section 56064, within an unincorporated area and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of that jurisdiction that prohibits or restricts its conversion to nonagricultural uses. (

E) Emergency evacuation route capacity, wildfire risk, sea level rise, and other impacts caused by climate change.

(3) The distribution of household growth assumed for purposes of a comparable period of regional transportation plans and opportunities to maximize the use of public transportation and existing transportation infrastructure.

(4) Agreements between a county and cities in a county to direct growth toward incorporated areas of the county and land within an unincorporated area zoned or designated for agricultural protection or preservation that is subject to a local ballot measure that was approved by the voters of the jurisdiction that prohibits or restricts conversion to nonagricultural uses.

(5) The loss of units contained in assisted housing developments, as defined in paragraph (9) of subdivision (

a) of

Section 65583, that changed to non-low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions.

(6) The percentage of existing households at each of the income levels listed in subdivision (

f) of

Section that are paying more than percent and more than percent of their income in rent.

(7) The rate of overcrowding.

(8) The housing needs of farmworkers.

(9) The housing needs generated by the presence of a private university or a campus of the California State University or the University of California within any member jurisdiction.

(10) The housing needs of individuals and families experiencing homelessness. If a council of governments has surveyed each of its member jurisdictions pursuant to subdivision (

b) on or before January 1, 2020, this paragraph shall apply only to the development of methodologies for the seventh and subsequent revisions of the housing element.

(11) The loss of units during a state of emergency that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with

Section 8550) of Division of Title 2), during the planning period immediately preceding the relevant revision pursuant to

Section that have yet to be rebuilt or replaced at the time of the analysis.

(12) The region’s greenhouse gas emissions targets provided by the State Air Resources Board pursuant to

Section 65080.

(13) Any other factors adopted by the council of governments, that further the objectives listed in subdivision (

d) of

Section 65584, provided that the council of governments specifies which of the objectives each additional factor is necessary to further. The council of governments may include additional factors unrelated to furthering the objectives listed in subdivision (

d) of

Section so long as the additional factors do not undermine the objectives listed in subdivision (

d) of

Section and are applied equally across all household income levels as described in subdivision (

f) of

Section and the council of governments makes a finding that the factor is necessary to address significant health and safety conditions. (

f) The council of governments, or delegate subregion, as applicable, shall explain in writing how each of the factors described in subdivision (

e) was incorporated into the methodology and how the methodology furthers the objectives listed in subdivision (

d) of

Section 65584. The methodology may include numerical weighting. This information, and any other supporting materials used in determining the methodology, shall be posted on the council of governments’, or delegate subregion’s, internet website. (

g) The following criteria shall not be a justification for a determination or a reduction in a jurisdiction’s share of the regional housing need:

(1) Any ordinance, policy, voter-approved measure, or standard of a city or county that directly or indirectly limits the number of residential building permits issued by a city or county.

(2) Prior underproduction of housing in a city or county from the previous regional housing need allocation, as determined by each jurisdiction’s annual production report submitted pursuant to subparagraph (

H) of paragraph (2) of subdivision (

a) of

Section 65400.

(3) Stable population numbers in a city or county from the previous regional housing needs cycle. (

h) Following the conclusion of the public comment period described in subdivision (

d) on the proposed allocation methodology, and after making any revisions deemed appropriate by the council of governments, or delegate subregion, as applicable, as a result of comments received during the public comment period, and as a result of consultation with the department, each council of governments, or delegate subregion, as applicable, shall publish a draft allocation methodology on its internet website and submit the draft allocation methodology, along with the information required pursuant to subdivision (e), to the department. (

i) Within days, the department shall review the draft allocation methodology and report its written findings to the council of governments, or delegate subregion, as applicable. In its written findings the department shall determine whether the methodology furthers the objectives listed in subdivision (

d) of

Section 65584. If the department determines that the methodology is not consistent with subdivision (

d) of

Section 65584, the council of governments, or delegate subregion, as applicable, shall take both of the following actions:

(1) Revise the methodology, in consultation with the department, to further the objectives listed in subdivision (

d) of

Section within days.

(2) Receive department acceptance that the revised methodology furthers the objectives listed in subdivision (

d) of

Section and adopt a final regional, or subregional, housing need allocation methodology. (

j) If the department’s findings are not available within the time limits set by subdivision (i), the council of governments, or delegate subregion, may act without them. (

k) After taking action pursuant to subdivision (i), the council of governments, or delegate subregion, shall provide notice of the adoption of the methodology to the jurisdictions within the region, or delegate subregion, as applicable, and to the department, and shall publish the adopted allocation methodology, along with its resolution and any adopted written findings, on its internet website. (

l) The department may, within days, review the adopted methodology and report its findings to the council of governments, or delegate subregion. (m)

(1) It is the intent of the Legislature that housing planning be coordinated and integrated with the regional transportation plan. To achieve this goal, the allocation plan shall allocate housing units within the region consistent with the development pattern included in the sustainable communities strategy. (2) (

A) The final allocation plan shall ensure that the total regional housing need, by income category, as determined under

Section 65584, is maintained, and that each jurisdiction in the region receive an allocation of units for low- and very low income households. (

B) For the seventh and subsequent revisions of the housing element, the allocation to each region required under subparagraph (

A) shall also include an allocation of units for acutely low and extremely low income households.

(3) The resolution approving the final housing need allocation plan shall demonstrate that the plan is consistent with the sustainable communities strategy in the regional transportation plan and furthers the objectives listed in subdivision (

d) of

Section 65584. (

n) This

section shall become operative on January 1, 2025.

SEC.

Section 65589.5 of the Government Code is amended to read: 65589.5. (a)

(1) The Legislature finds and declares all of the following: (

A) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (

B) California housing has become the most expensive in the nation. The excessive cost of the state’s housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (

C) Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (

D) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects.

(2) In enacting the amendments made to this

section by the act adding this paragraph, the Legislature further finds and declares the following: (

A) California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives. (

B) While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all income levels is a key factor. (

C) The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability. (

D) According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025. (

E) California’s overall home ownership rate is at its lowest level since the 1940s. The state ranks 49th out of the states in home ownership rates as well as in the supply of housing per capita. Only one-half of California’s households are able to afford the cost of housing in their local regions. (

F) Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians. (

G) The majority of California renters, more than 3,000,000 households, pay more than percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than percent of their income toward rent. (

H) When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees. (

I) An additional consequence of the state’s cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working- and middle-class households. California’s cumulative housing shortfall therefore has not only national but international environmental consequences. (

J) California’s housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section. (

K) The Legislature’s intent in enacting this

section in and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California’s communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled. (

L) It is the policy of the state that this

section be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing.

(3) It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (

d) and paragraph (1) of subdivision (j), arise infrequently.

(4) It is the intent of the Legislature that the amendments removing provisions from subparagraphs (

D) and (

E) of paragraph (6) of subdivision (

h) and adding those provisions to Sections 65589.5.1 and 65589.5.2 by Assembly Bill 1413 (2023), insofar as they are substantially the same as existing law, shall be considered restatements and continuations of existing law, and not new enactments. (

b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this

article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d). (

c) The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (

d) For a housing development project for very low, low-, or moderate-income households, or an emergency shelter, a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following:

(1) The jurisdiction has adopted a housing element pursuant to this

article that has been revised in accordance with

Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to

Section for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by

Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and

definitions that may be adopted by the Department of Housing and Community Development pursuant to

Section 65400. In the case of an emergency shelter, the jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (

a) of

Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards.

(2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.

As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety: (

A) Inconsistency with the zoning ordinance or general plan land use designation. (

B) The eligibility to claim a welfare exemption under subdivision (

g) of

Section of the Revenue and Taxation Code.

(3) The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible.

(4) The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project.

(5) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction had adopted a revised housing element that was in substantial compliance with this article, and the housing development project or emergency shelter was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation as specified in any element of the general plan. (

A) This paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed on a site, including a candidate site for rezoning, that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction’s housing element if the housing development project is consistent with the density specified in the housing element, even though the housing development project was inconsistent with both the jurisdiction’s zoning ordinance and general plan land use designation on the date the application was deemed complete. (

B) If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (

a) of

Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (

a) of

Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (

a) of

Section 65583.

(6) On the date an application for the housing development project or emergency shelter was deemed complete, the jurisdiction did not have an adopted revised housing element that was in substantial compliance with this

article and the housing development project is not a builder’s remedy project. (

e) Nothing in this

section shall be construed to relieve the local agency from complying with the congestion management program required by

Chapter 2.6 (commencing with

Section 65088) of Division of Title or the California Coastal Act of 1976 (Division 20 (commencing with

Section 30000) of the Public Resources Code). Neither shall anything in this

section be construed to relieve the local agency from making one or more of the findings required pursuant to

Section of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with

Section 21000) of the Public Resources Code). (f)

(1) Except as provided in paragraphs (6) and (8) of this subdivision, and subdivision (o), nothing in this

section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need pursuant to

Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and propo