Public Resources.

The California Assembly Committee on Budget proposes sweeping changes to environmental review requirements and homeless housing assistance through legislation that establishes a new $500 million round of homeless housing grants while creating targeted exemptions from environmental review for certain development projects.

The bill creates Round 7 of the Homeless Housing, Assistance, and Prevention program, appropriating $500 million to be disbursed starting July 2026. Cities, counties, tribes and continuums of care become eligible for funding after substantially completing their Round 6 disbursements and obligating at least 50% of those awards. The Department of Finance may allocate $8 million for program administration.

Multiple new exemptions from California Environmental Quality Act (CEQA) review requirements apply to specific project types, including rezonings that implement housing elements, agricultural employee housing, community water systems in disadvantaged areas, and wildfire risk reduction efforts. The exemptions extend to day care centers, rural health clinics, food banks, and advanced manufacturing facilities, provided they meet location and design criteria. High-speed rail maintenance facilities and passenger stations also qualify if they incorporate mitigation measures from previous environmental reviews.

The Office of Land Use and Climate Innovation must map eligible urban infill sites statewide by July 2027, following consultation with local jurisdictions and public review periods. The mapping process aims to promote compact development that reduces vehicle emissions, protects open space, and supports sustainable communities. Updates to the maps occur at least every two years based on land use changes.

The legislation modifies CEQA procedures by revising requirements for administrative records and establishing new timelines for environmental review documents. It maintains existing environmental protections while creating targeted exemptions intended to accelerate specific types of development projects.