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    AB-507
    Housing & Homelessness

    Adaptive reuse: streamlining: incentives.

    Enrolled
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Establishes adaptive reuse as a use by right with streamlined ministerial review.
    • Sets rental affordability: 8% very low, 5% extremely low, or 15% lower income.
    • Creates adaptive reuse investment incentive program paying funds for up to 30 years starting 2026.
    • Exempts adaptive reuse approvals from CEQA and imposes labor standards.

    Summary

    Driven by Assembly Members Haney, Mark González, and Stefani, the proposal departs from a purely discretionary approach to adaptive reuse by establishing a use-by-right framework across all zones, paired with a streamlined, ministerial review for qualifying projects. It would permit retrofitting existing buildings to residential or mixed-use formats as a ministerial use, provided the project satisfies a set of objective standards and affordability commitments, with explicit exclusions for certain industrial areas that do not permit housing.

    To qualify, an adaptive reuse project must meet a cluster of conditions designed to preserve historic resources and ensure housing affordability. Eligible projects may involve an existing building that is under 50 years old or that has been recognized for historic resource preservation, along with an affidavit committing to the United States Secretary of the Interior’s Standards for Rehabilitation for exterior facades facing streets or other specified faces, or to available historic rehabilitation tax credits. Rental projects must include either 8% of units for very low income and 5% for extremely low income, or 15% for lower income households; owner-occupied projects must offer either 30% at affordable housing costs to moderate-income households or 15% for lower-income households. If a project is mixed-use, at least half of its square footage must be dedicated to residential uses. Parking is not required for the adaptive reuse portion without onsite parking, and local authorities may allow additional new residential or mixed-use development on the same parcel or adjacent parcels under certain conditions. Local governments may adopt ordinances to govern the streamlined process, and where no ordinance exists, the act requires ministerial approval if the project aligns with objective planning standards.

    The bill also introduces a comprehensive implementation and oversight structure, including labor, environmental, and density provisions. Projects approved under the streamlined process would be exempt from CEQA, and certain findings related to industrial uses and implementing ordinances would also be exempt. Labor standards are integrated through a suite of requirements—prevailing wages, apprenticeship participation, health care expenditures, payroll recordkeeping, and monthly reporting—with penalties for noncompliance and avenues for enforcement by state and local authorities. For parcels meeting the ordinance criteria, the act authorizes the payment of adaptive reuse investment incentive funds to proponents for up to 30 consecutive fiscal years, beginning after occupancy, funded by ad valorem revenue from the portion of property value in excess of the baseline valuation at the time funding was requested. The program would be available to cities and counties starting in the 2026–27 fiscal year, with definitions specifying who qualifies as a proponent and what constitutes a qualified adaptive reuse project property.

    Together, these provisions reposition adaptive reuse as a more predictable, expedited path to increasing housing stock while establishing strict affordability requirements and labor commitments. The legislation situates the approach within a broader policy context that uses local ordinance authority, housing element oversight, and targeted tax-based incentives to coordinate regulatory streamlining with preservation, workforce standards, and affordable housing objectives.

    Key Dates

    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 507 Haney Concurrence in Senate Amendments
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Assembly 3rd Reading AB507 Haney et al. By Wiener
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass as amended
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Housing Hearing
    Senate Committee
    Senate Housing Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations]
    Senate Local Government Hearing
    Senate Committee
    Senate Local Government Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Housing]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 507 Haney Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Local Government Hearing
    Assembly Committee
    Assembly Local Government Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Assembly Housing And Community Development Hearing
    Assembly Committee
    Assembly Housing And Community Development Hearing
    Do pass and be re-referred to the Committee on [Local Government]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Contacts

    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Mark GonzalezD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 3 row(s) selected.
    Page 1 of 1
    Select All Legislators
    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Profile
    Mark GonzalezD
    Assemblymember
    Bill Author
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-3068
    Adaptive reuse: streamlining: incentives.
    February 2024
    Vetoed
    View Bill
    Adaptive reuse projects: by-right: funding.
    February 2022
    Failed
    View Bill
    Showing 2 of 2 items
    Page 1 of 1

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Matt Haney
    Matt HaneyD
    California State Assembly Member
    Mark Gonzalez
    Mark GonzalezD
    California State Assembly Member
    Co-Author
    Catherine Stefani
    Catherine StefaniD
    California State Assembly Member
    70% progression
    Bill has passed both houses in identical form and is being prepared for the Governor (9/11/2025)

    Latest Voting History

    View History
    September 11, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    704680PASS

    Key Takeaways

    • Establishes adaptive reuse as a use by right with streamlined ministerial review.
    • Sets rental affordability: 8% very low, 5% extremely low, or 15% lower income.
    • Creates adaptive reuse investment incentive program paying funds for up to 30 years starting 2026.
    • Exempts adaptive reuse approvals from CEQA and imposes labor standards.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Matt Haney
    Matt HaneyD
    California State Assembly Member
    Mark Gonzalez
    Mark GonzalezD
    California State Assembly Member
    Co-Author
    Catherine Stefani
    Catherine StefaniD
    California State Assembly Member

    Summary

    Driven by Assembly Members Haney, Mark González, and Stefani, the proposal departs from a purely discretionary approach to adaptive reuse by establishing a use-by-right framework across all zones, paired with a streamlined, ministerial review for qualifying projects. It would permit retrofitting existing buildings to residential or mixed-use formats as a ministerial use, provided the project satisfies a set of objective standards and affordability commitments, with explicit exclusions for certain industrial areas that do not permit housing.

    To qualify, an adaptive reuse project must meet a cluster of conditions designed to preserve historic resources and ensure housing affordability. Eligible projects may involve an existing building that is under 50 years old or that has been recognized for historic resource preservation, along with an affidavit committing to the United States Secretary of the Interior’s Standards for Rehabilitation for exterior facades facing streets or other specified faces, or to available historic rehabilitation tax credits. Rental projects must include either 8% of units for very low income and 5% for extremely low income, or 15% for lower income households; owner-occupied projects must offer either 30% at affordable housing costs to moderate-income households or 15% for lower-income households. If a project is mixed-use, at least half of its square footage must be dedicated to residential uses. Parking is not required for the adaptive reuse portion without onsite parking, and local authorities may allow additional new residential or mixed-use development on the same parcel or adjacent parcels under certain conditions. Local governments may adopt ordinances to govern the streamlined process, and where no ordinance exists, the act requires ministerial approval if the project aligns with objective planning standards.

    The bill also introduces a comprehensive implementation and oversight structure, including labor, environmental, and density provisions. Projects approved under the streamlined process would be exempt from CEQA, and certain findings related to industrial uses and implementing ordinances would also be exempt. Labor standards are integrated through a suite of requirements—prevailing wages, apprenticeship participation, health care expenditures, payroll recordkeeping, and monthly reporting—with penalties for noncompliance and avenues for enforcement by state and local authorities. For parcels meeting the ordinance criteria, the act authorizes the payment of adaptive reuse investment incentive funds to proponents for up to 30 consecutive fiscal years, beginning after occupancy, funded by ad valorem revenue from the portion of property value in excess of the baseline valuation at the time funding was requested. The program would be available to cities and counties starting in the 2026–27 fiscal year, with definitions specifying who qualifies as a proponent and what constitutes a qualified adaptive reuse project property.

    Together, these provisions reposition adaptive reuse as a more predictable, expedited path to increasing housing stock while establishing strict affordability requirements and labor commitments. The legislation situates the approach within a broader policy context that uses local ordinance authority, housing element oversight, and targeted tax-based incentives to coordinate regulatory streamlining with preservation, workforce standards, and affordable housing objectives.

    70% progression
    Bill has passed both houses in identical form and is being prepared for the Governor (9/11/2025)

    Key Dates

    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 507 Haney Concurrence in Senate Amendments
    Vote on Senate Floor
    Senate Floor
    Vote on Senate Floor
    Assembly 3rd Reading AB507 Haney et al. By Wiener
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Do pass as amended
    Senate Appropriations Hearing
    Senate Committee
    Senate Appropriations Hearing
    Placed on suspense file
    Senate Housing Hearing
    Senate Committee
    Senate Housing Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations]
    Senate Local Government Hearing
    Senate Committee
    Senate Local Government Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Housing]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 507 Haney Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Local Government Hearing
    Assembly Committee
    Assembly Local Government Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Assembly Housing And Community Development Hearing
    Assembly Committee
    Assembly Housing And Community Development Hearing
    Do pass and be re-referred to the Committee on [Local Government]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Latest Voting History

    View History
    September 11, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    704680PASS

    Contacts

    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Mark GonzalezD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 3 row(s) selected.
    Page 1 of 1
    Select All Legislators
    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Profile
    Mark GonzalezD
    Assemblymember
    Bill Author
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author

    Similar Past Legislation

    Bill NumberTitleIntroduced DateStatusLink to Bill
    AB-3068
    Adaptive reuse: streamlining: incentives.
    February 2024
    Vetoed
    View Bill
    Adaptive reuse projects: by-right: funding.
    February 2022
    Failed
    View Bill
    Showing 2 of 2 items
    Page 1 of 1