Gov. Newsom Signs Legislation to Boost California’s Housing Supply

Gov. Gavin Newsom Sept. 16, signed bipartisan legislation to expand housing production in California, streamline housing permitting, and increase density to create more inclusive and vibrant neighborhoods across the state. The suite of bills also will help address the interrelated problems of climate change and housing affordability by promoting denser housing closer to major employment hubs – a critical element in limiting California’s greenhouse gas emissions. The Governor also highlighted the state’s ongoing work to spur more housing production, tackle barriers to construction and hold local governments accountable.

California officials Sept. 16, announced the new California Housing Accelerator – a $1.75 billion component of Gov. Newsom’s California Comeback Plan to expedite construction of an estimated 6,500 shovel-ready affordable multi-family units in projects stalled due to constraints on the supply of tax-exempt bonds and low-income housing tax credits. 

The California Comeback Plan invests an unprecedented $22 billion in housing and homelessness which will lead to the creation of over 84,000 new affordable homes for Californians, including over 44,000 new housing units and treatment beds for people exiting homelessness. This Plan marks the most significant investment in housing in California’s history with $10.3 billion proposed for housing and over $12 billion for the unhoused.

The Governor Sept. 16, signed California State Senate President pro Tempore Toni G. Atkins’ SB 9, the California Housing Opportunity and More Efficiency or HOME Act, which the White House this month commended to increase housing supply. The HOME Act facilitates the process for homeowners to build a duplex or split their current residential lot, expanding housing options for people of all incomes that will create more opportunities for homeowners to add units on their existing properties. It includes provisions to prevent the displacement of existing renters and protect historic districts, fire-prone areas and environmental quality.

SB 10 by Senator Scott Wiener (D-San Francisco) creates a voluntary process for local governments to access a streamlined zoning process for new multi-unit housing near transit or in urban infill areas, with up to 10 units per parcel. The legislation simplifies the CEQA requirements for upzoning, giving local leaders another tool to voluntarily increase density and provide affordable rental opportunities to more Californians. 

A signing message for SB 10 can be found here.

The Governor also signed SB 8 by Senator Nancy Skinner (D-Berkeley), which extends the provisions of the Housing Crisis Act of 2019 through 2030. The Housing Crisis Act of 2019, which was scheduled to expire in 2025, accelerates the approval process for housing projects, curtails local governments’ ability to downzone and limits fee increases on housing applications, among other key accountability provisions.

Gov. Newsom also signed AB 1174, by Assembly member Tim Grayson (D-Concord), an urgency measure that makes changes to the existing streamlined, ministerial approval process for housing development in jurisdictions that have not yet made enough progress towards their allocation of their regional housing needs.   

Another pillar of Gov. Newsom’s housing agenda is housing accountability for local governments. Governor Newsom the week of Sept. 14, lauded the Attorney General’s recent success in defending the validity of California’s Housing Accountability Act (the “anti-NIMBY law”) from challenge in California Renters Legal Advocacy and Education Fund v. City of San Mateo. Last year, the Governor asked the Attorney General to intervene in the case to defend this critical tool for holding local governments accountable for doing their part to increase housing supply. The resulting appellate court decision curbs the ability of local governments to block new housing that is supposed to be allowed under their own existing rules and general plan.