Focus
Newsom throws support behind housing proposals to ease construction and reform permitting restrictions
Los Angeles Times – May 14
Governor Gavin Newsom on March 14 praised Assemblymember Buffy Wicks (D-Oakland) and Senator Scott Wiener (D-San Francisco) for sponsoring two bills (SB 607 and AB 609) that would streamline housing development in urban areas. Newsom said his revised state budget proposal will include provisions that clear the way for more new housing by reforming the California Environmental Quality Act (CEQA) and clearing other impediments.
As explained in this press release, SB 607 would make a number of targeted reforms to strengthen the operational efficiency of CEQA, including:
- Amending the existing Class 32 urban infill exemption to make it more usable.
- For projects falling short of meeting eligibility for a categorical or statutory exemption by a lead agency, SB 607 focuses the scope of the subsequent environmental review to the disqualifying reason and the facts the action or proceeding relied upon that disqualified the project from the exemption.
- Aligns the standard of review for a lead agency’s determination to adopt a Negative Declaration (ND) or a Mitigated Negative Declaration (MND) to parity with the existing standard of review for Environmental Impact Reports (EIRs).
- Focuses CEQA review on the most germane administrative records by excluding communications of persons tangential or far removed from project decision-making, with specified exemptions.
- Exempting re-zonings that are consistent with an already approved housing element from CEQA, recognizing that local jurisdictions must undergo the CEQA process as a part of the housing element adoption process.
SB 607 was placed in the Senate Appropriations Committee suspense file on May 19, 2025. The final day for the Appropriations Committee to decide whether the bill should continue in the legislative process is May 23, 2025.
AB 609 would create a new CEQA exemption for urban infill housing projects that meet local zoning, density, and objective standards. To qualify, projects must be on sites not greater than 20 acres, not located on environmentally sensitive or hazardous lands (as specified), and meet minimum density thresholds (15 units per acre in urban areas, 10 in suburban, and 5 in rural). AB 609 would provide a useful alternative to the Class 32 urban infill exemption and would be particularly relevant for larger projects not eligible for that exemption (i.e., over five acres). AB 609 was passed by the Assembly on May 19, 2025, and has been ordered to the Senate.
News
Council members move to rein in San Diego’s widely criticized ADU incentive
The San Diego Union-Tribune – May 16
San Diego City Council members endorsed major changes last Thursday to a controversial city incentive for backyard apartments, including a proposal to limit the number per property. In addition to capping the number of backyard apartments per lot, the council’s Land Use and Housing Committee voted 3-1 to require people who build such units to pay infrastructure fees and to require parking for those that aren’t near transit. The proposal also requires greater distances from property lines, limits backyard apartments to two stories, and prohibits them on cul-de-sacs in areas with high wildfire risk.
A Silicon Valley senator is proposing to insure multifamily development loans. Could it help spur more construction?
East Bay Times – May 20
With California short of nearly half a million affordable homes and a slew of projects stalled amid adverse market conditions, Senator Dave Cortese has proposed SB 750, which would allow the state to use its credit to insure construction and permanent loans for multifamily housing, giving developers access to more favorable interest terms and letting them build more quickly and easily. Cortese has proposed creating the new program through the California Housing Finance Agency, which would use the state’s credit to guarantee the loans, all while generating revenue from premiums to cover its costs.
Nearly 2,000 Palisades properties cleared of fire debris, LA Mayor Bass says
Los Angeles Daily News – May 20
Nearly 2,000 properties have been cleared of all fire debris in Pacific Palisades by the U.S. Army Corps of Engineers and received final approval from Los Angeles County, a key step for rebuilding, Mayor Karen Bass announced on Monday. The mayor noted that 54 permits have been issued for 40 addresses so far, with hundreds more applications currently under review.
Mayor Daniel Lurie unveils S.F. permit reforms to eliminate rules that ‘no longer make sense’
San Francisco Chronicle – May 20
Mayor Daniel Lurie is advancing his efforts to reform San Francisco’s complicated permitting system with a suite of proposals that aims to eliminate onerous requirements that hinder small businesses. Lurie introduced a legislative package this Tuesday that would eliminate permits for sidewalk tables and chairs that currently cost as much as $2,500. The legislation would further expand the kind of businesses allowed on the ground floor to give more flexibility to prospective tenants interested in filling some of downtown San Francisco’s many vacant storefronts.
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