Housing Accountability Act: housing development projects.

Senator Durazo's amendment to California's Housing Accountability Act redefines mixed-use development requirements to exclude transient lodging facilities from qualifying residential space calculations. The legislation specifies that hotels, motels, and bed and breakfast establishments cannot count toward the two-thirds residential square footage threshold required for mixed-use projects, with limited exceptions for residential hotels and individual short-term rentals that comply with local regulations.

The bill applies these restrictions retroactively to any housing development applications not deemed complete by January 1, 2025, including projects with preliminary applications submitted before that date. This ensures consistent standards across pending and future developments while preserving existing approvals.

Two key exemptions allow flexibility in specific circumstances: residential hotels as defined in state health and safety codes can still qualify as residential space, and the restrictions do not prevent individual unit owners from operating short-term rentals in compliance with local ordinances after receiving certificates of occupancy. These carve-outs maintain options for transitional housing while allowing property owners some flexibility in unit usage.

The amendment aims to preserve mixed-use developments primarily for long-term residential occupancy while providing clear standards for local agencies reviewing project applications. By explicitly defining which types of lodging can count toward residential requirements, the legislation reduces potential ambiguity in the project approval process.