California's Housing: Key Laws Taking Effect January 1, 2025

Starting January 1, 2025, California will implement several new housing laws aimed at addressing the state’s housing crisis by streamlining development processes, enhancing tenant protections, and expanding housing options. Here’s a summary of key bills:

Streamlining Housing Development and Approvals

  • SB 450: Refines the SB 9 process, streamlining approvals for duplexes and urban lot splits in single-family zones. It limits local agencies' ability to impose unique development standards and sets clear timelines for project approvals​.

  • SB 1123: Allows subdivision of vacant single-family lots into up to ten units, expanding housing density in previously restricted areas​.

  • AB 1886: Clarifies compliance requirements for housing elements, ensuring local governments meet state standards to qualify for streamlined approvals.

Expanding Affordable Housing

  • AB 2243: Updates the Affordable Housing and High Road Jobs Act to support affordable housing projects with added job protections.

  • SB 1211: Increases the number of allowable accessory dwelling units (ADUs) on multifamily lots from two to eight, enabling more affordable housing options​.

Tenant Protections and Litigation Changes

  • SB 393: Adjusts legal procedures to reduce barriers for low- and moderate-income housing projects by shifting the burden of bond demonstration requirements in legal challenges.

  • AB 2117: Protects development approvals from expiring while under litigation, ensuring projects are not derailed by legal delays

Addressing Environmental and Zoning Constraints

  • AB 2199: Extends CEQA exemptions for infill projects in unincorporated areas, facilitating faster approvals for multifamily housing.

  • SB 312: Simplifies environmental review processes for public university housing, encouraging on-campus development.

Monitoring and Oversight

  • SB 1037: Grants the Attorney General new enforcement powers to ensure local compliance with state housing laws

  • AB 2430: Prohibits cities and counties from charging monitoring fees for 100% affordable housing developments, reducing financial burdens on developers​.

These laws collectively aim to boost housing supply, ensure compliance with state mandates, and address affordability challenges across California.

Detailed Information: click HERE

Fact Sheet: click HERE

For more resources, visit:

Brownstein Hyatt Farber Schreck

Holland & Knight

Nixon Peabody LLC

No more excuses. California is taking action to fix the decades-long homelessness, housing, and mental health crises. These new laws — paired with the state’s unprecedented resources — will deliver more housing, get people off the streets, and provide life-changing support that will benefit all Californians.
— Governor Gavin Newsom

On September 19, 2024, Governor Gavin Newsom signed a new bipartisan legislative package to strengthen California’s laws addressing the housing and homelessness crisis. The laws represent a comprehensive effort to streamline housing production, and hold localities accountable to state housing law.

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