Senator Durazo's legislation amends California's Housing Accountability Act to refine how local agencies may regulate mixed-use housing developments, particularly regarding transient lodging components. The bill establishes that in mixed-use projects where at least two-thirds of new or converted square footage is designated for residential use, no portion may be used for hotels, motels, or similar lodging unless separately approved.
The amendments create a bifurcated approval process for mixed-use projects containing both residential and transient lodging elements. While the residential portion maintains eligibility for Housing Accountability Act protections, local agencies may independently review and approve lodging components. The bill exempts residential hotels from these restrictions and clarifies that post-occupancy short-term rentals consistent with local law do not constitute prohibited transient lodging.
For projects deemed complete before January 2025, developers may choose whether to proceed under existing rules or opt into the new provisions. The bill's implementation depends on the concurrent enactment of related legislation (AB 1308) by January 2026. Local agencies that improperly disapprove qualifying projects face court orders compelling approval and potential fines starting at $10,000 per housing unit, with proceeds directed to affordable housing construction through local housing trust funds.
The legislation maintains existing requirements that local agencies must support project denials or density reductions with specific written findings demonstrating unavoidable public health and safety impacts. It preserves developers' rights to density bonuses and other incentives while establishing precise timelines for agency review and detailed procedures for legal challenges to project disapprovals.
![]() Maria DurazoD Senator | Bill Author | Not Contacted |
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Senator Durazo's legislation amends California's Housing Accountability Act to refine how local agencies may regulate mixed-use housing developments, particularly regarding transient lodging components. The bill establishes that in mixed-use projects where at least two-thirds of new or converted square footage is designated for residential use, no portion may be used for hotels, motels, or similar lodging unless separately approved.
The amendments create a bifurcated approval process for mixed-use projects containing both residential and transient lodging elements. While the residential portion maintains eligibility for Housing Accountability Act protections, local agencies may independently review and approve lodging components. The bill exempts residential hotels from these restrictions and clarifies that post-occupancy short-term rentals consistent with local law do not constitute prohibited transient lodging.
For projects deemed complete before January 2025, developers may choose whether to proceed under existing rules or opt into the new provisions. The bill's implementation depends on the concurrent enactment of related legislation (AB 1308) by January 2026. Local agencies that improperly disapprove qualifying projects face court orders compelling approval and potential fines starting at $10,000 per housing unit, with proceeds directed to affordable housing construction through local housing trust funds.
The legislation maintains existing requirements that local agencies must support project denials or density reductions with specific written findings demonstrating unavoidable public health and safety impacts. It preserves developers' rights to density bonuses and other incentives while establishing precise timelines for agency review and detailed procedures for legal challenges to project disapprovals.
Ayes | Noes | NVR | Total | Result |
---|---|---|---|---|
26 | 9 | 5 | 40 | PASS |
![]() Maria DurazoD Senator | Bill Author | Not Contacted |