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.
![]() Matt HaneyD Assemblymember | Bill Author | Not Contacted | |
![]() Mark GonzalezD Assemblymember | Bill Author | Not Contacted | |
![]() Catherine StefaniD Assemblymember | Bill Author | Not Contacted |
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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.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
70 | 4 | 6 | 80 | PASS |
![]() Matt HaneyD Assemblymember | Bill Author | Not Contacted | |
![]() Mark GonzalezD Assemblymember | Bill Author | Not Contacted | |
![]() Catherine StefaniD Assemblymember | Bill Author | Not Contacted |