AMENDED IN SENATE AUGUST 21, 2026

AMENDED IN SENATE JULY 2, 2026

AMENDED IN SENATE JUNE 16, 2026

AMENDED IN ASSEMBLY APRIL 9, 2026

AMENDED IN ASSEMBLY MARCH 19, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

94

Introduced by Assembly Member Haney

(Coauthor: Assembly Member Bonta)

February 18, 2026

An act to amend Section 65585 of, and to add Section 65913.13 to to, the Government Code, relating to land use.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: yes

LEGISLATIVE COUNSEL’S DIGEST

The Planning and Zoning Law generally regulates local government zoning and approval of certain types of housing development projects. The law authorizes a development proponent to submit an application for a development that is subject to a prescribed ministerial approval process if the development complies with certain procedural requirements and satisfies specified objective planning standards. The law also requires a housing development project within a specified distance of a transit-oriented development stop to be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with specified requirements, as applicable.

This bill would, by July 1, 2027, require major transit cities to designate one or more at least one regional transit hub districts district, as specified, and prescribe requirements for those districts, including requiring that a district make a downtown housing development an allowable use, as specified. The bill would define “downtown housing development” as a housing development project within a regional hub district that meets certain conditions, including that it meets specified labor standards. The bill would prescribe requirements for the developments, including that the developments are eligible for streamlined ministerial approval, as specified. The bill would require the California Housing Finance Agency to conduct a housing construction loan and financing study that includes specified components and deliver that study to the Legislature and specified committees by December 1, 2027, March 1, 2028, as specified. By requiring certain cities to designate regional transit hub districts and requiring streamlined ministerial approval of certain housing developments, the bill would impose a state-mandated local program.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1.

Section 65585 of the Government Code is amended to read:

65585.

(a) In the preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element.

(b) (1) (A) At least 90 days prior to adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, or at least 60 days prior to the adoption of a subsequent amendment to this element, the planning agency shall submit a draft element revision or draft amendment to the department. The local government of the planning agency shall make the first draft revision of a housing element available for public comment for at least 30 days and, if any comments are received, the local government shall take at least 10 business days after the 30-day public comment period to consider and incorporate public comments into the draft revision prior to submitting it to the department. For any subsequent draft revision, the local government shall post the draft revision on its internet website and shall email a link to the draft revision to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting the draft revision to the department.

(B) The planning agency staff shall collect and compile the public comments regarding the housing element received by the city, county, or city and county and provide these comments to each member of the legislative body before it adopts the housing element.

(C) The department shall review the draft and report its written findings to the planning agency within 90 days of its receipt of the first draft submittal for each housing element revision pursuant to subdivision (e) of Section 65588 or within 60 days of its receipt of a subsequent draft amendment or an adopted revision or adopted amendment to an element. The department shall not review the first draft submitted for each housing element revision pursuant to subdivision (e) of Section 65588 until the local government has made the draft available for public comment for at least 30 days and, if comments were received, has taken at least 10 business days to consider and incorporate public comments pursuant to paragraph (1).

(2) (A) At least 90 days prior to the initial adoption of a revision of its housing element pursuant to subdivision (e) of Section 65588, and at least 7 days prior to any subsequent adoption submittal if changes have occurred to the inventory of sites, a local government shall do both of the following:

(i) Make a draft of its inventory of sites required pursuant to paragraph (3) of subdivision (a) of Section 65583 available to the department and the public and post the draft inventory on its internet website.

(ii) Send an email to all individuals and organizations that have previously requested notices notifying them that the inventory has been updated that includes a link to the draft inventory on its website.

(B) The requirements of this paragraph shall apply to the seventh and each subsequent revision of the housing element.

(c) In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review.

(d) In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with this article.

(e) Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the department’s findings are not available within the time limits set by this section, the legislative body may act without them.

(f) If the department finds that the draft element or draft amendment does not substantially comply with this article, the legislative body shall take one of the following actions:

(1) (A) Change the draft element or draft amendment to substantially comply with this article.

(B) Any change to a draft element or draft amendment pursuant to subparagraph (A) shall be completed in accordance with subdivision (b). This subparagraph does not constitute a change in, but is declaratory of, existing law.

(2) Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings that explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with this article despite the findings of the department.

(g) (1) Promptly following the adoption of its element or amendment, the planning agency shall submit a copy of the adopted element or amendment and any findings made pursuant to paragraph (2) of subdivision (f) to the department.

(2) This subdivision shall not be construed to excuse a legislative body from complying with subdivision (f). This paragraph does not constitute a change in, but is declaratory of, existing law.

(h) The department shall, within 60 days, review adopted housing elements or amendments and any findings pursuant to paragraph (2) of subdivision (f), make a finding as to whether the adopted element or amendment is in substantial compliance with this article, and report its findings to the planning agency.

(i) (1) (A) The department shall review any action or failure to act by the city, county, or city and county that it determines is inconsistent with an adopted housing element or Section 65583, including any failure to implement any program actions included in the housing element pursuant to Section 65583. The department shall issue written findings to the city, county, or city and county as to whether the action or failure to act substantially complies with this article, and provide a reasonable time no longer than 30 days for the city, county, or city and county to respond to the findings before taking any other action authorized by this section, including the action authorized by subparagraph (C).

(B) If the department finds that the city’s, county’s, or city and county’s action or failure to act does not substantially comply with its adopted housing element or its obligations pursuant to Section 65583, there shall be a rebuttable presumption of invalidity in any legal action challenging that action or failure to act.

(C) If the department finds that the action or failure to act by the city, county, or city and county does not substantially comply with this article, and if it has issued findings pursuant to this section that an amendment to the housing element substantially complies with this article, the department may revoke its findings until it determines that the city, county, or city and county has come into compliance with this article.

(2) The department may consult with any local government, public agency, group, or person, and shall receive and consider any written comments from any public agency, group, or person, regarding the action or failure to act by the city, county, or city and county described in paragraph (1), in determining whether the housing element substantially complies with this article.

(j) The department shall notify the city, county, or city and county and may notify the office of the Attorney General that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to this element, or any action or failure to act described in subdivision (i), does not substantially comply with this article or that any local government has taken an action in violation of the following:

(1) Housing Accountability Act (Section 65589.5).

(2) Section 65863.

(3) Chapter 4.3 (commencing with Section 65915).

(4) Section 65008.

(5) Housing Crisis Act of 2019 (Chapter 654, Statutes of 2019, Sections 65941.1, 65943, and 66300).

(6) Section 8899.50.

(7) Section 65913.4.

(8) Article 11 (commencing with Section 65650).

(9) Article 12 (commencing with Section 65660).

(10) Section 65913.11.

(11) Section 65400.

(12) Section 65863.2.

(13) Chapter 4.1 (commencing with Section 65912.100).

(14) Section 65905.5.

(15) Chapter 13 (commencing with Section 66310).

(16) Section 65852.21.

(17) Section 65852.24.

(18) Section 66411.7.

(19) Section 65913.16.

(20) Article 2 (commencing with Section 66300.5) of Chapter 12.

(21) Section 65852.28.

(22) Section 65913.4.5.

(23) Section 66499.41.

(24) Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code).

(25) Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code).

(26) Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).

(27) Article 11.5 (commencing with Section 65658).

(k) Commencing July 1, 2019, prior to the Attorney General bringing any suit for a violation of the provisions identified in subdivision (j) related to housing element compliance and seeking remedies available pursuant to this subdivision, the department shall offer the jurisdiction the opportunity for two meetings in person or via telephone to discuss the violation, and shall provide the jurisdiction written findings regarding the violation. This paragraph does not affect any action filed prior to the effective date of this section. The requirements set forth in this subdivision do not apply to any suits brought for a violation or violations of paragraphs (1) and (3) to (9), inclusive, of subdivision (j).

(l) In any action or special proceeding brought by the Attorney General relating to housing element compliance pursuant to a notice or referral under subdivision (j), the Attorney General may request, upon a finding of the court that the housing element does not substantially comply with the requirements of this article pursuant to this section, that the court issue an order or judgment directing the jurisdiction to bring its housing element into substantial compliance with the requirements of this article. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If a court determines that the housing element of the jurisdiction substantially complies with this article, it shall have the same force and effect, for purposes of eligibility for any financial assistance that requires a housing element in substantial compliance and for purposes of any incentives provided under Section 65589.9, as a determination by the department that the housing element substantially complies with this article.

(1) If the jurisdiction has not complied with the order or judgment after 12 months, the court shall conduct a status conference. Following the status conference, upon a determination that the jurisdiction failed to comply with the order or judgment compelling substantial compliance with the requirements of this article, the court shall impose fines on the jurisdiction, which shall be deposited into the Building Homes and Jobs Trust Fund. Any fine levied pursuant to this paragraph shall be in a minimum amount of ten thousand dollars ($10,000) per month, but shall not exceed one hundred thousand dollars ($100,000) per month, except as provided in paragraphs (2) and (3). In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.

(2) If the jurisdiction has not complied with the order or judgment after three months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Following the status conference, if the court finds that the fees imposed pursuant to paragraph (1) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of three. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.

(3) If the jurisdiction has not complied with the order or judgment six months following the imposition of fees described in paragraph (1), the court shall conduct a status conference. Upon a determination that the jurisdiction failed to comply with the order or judgment, the court may impose the following:

(A) If the court finds that the fees imposed pursuant to paragraphs (1) and (2) are insufficient to bring the jurisdiction into compliance with the order or judgment, the court may multiply the fine determined pursuant to paragraph (1) by a factor of six. In the event that the jurisdiction fails to pay fines imposed by the court in full and on time, the court may require the Controller to intercept any available state and local funds and direct such funds to the Building Homes and Jobs Trust Fund to correct the jurisdiction’s failure to pay. The intercept of the funds by the Controller for this purpose shall not violate any provision of the California Constitution.

(B) The court may order remedies available pursuant to Section 564 of the Code of Civil Procedure, under which the agent of the court may take all governmental actions necessary to bring the jurisdiction’s housing element into substantial compliance pursuant to this article in order to remedy identified deficiencies. The court shall determine whether the housing element of the jurisdiction substantially complies with this article and, once the court makes that determination, it shall have the same force and effect, for all purposes, as the department’s determination that the housing element substantially complies with this article. An agent appointed pursuant to this paragraph shall have expertise in planning in California.

(4) This subdivision does not limit a court’s discretion to apply any and all remedies in an action or special proceeding for a violation of any law identified in subdivision (j).

(m) In determining the application of the remedies available under subdivision (l), the court shall consider whether there are any mitigating circumstances delaying the jurisdiction from coming into compliance with state housing law. The court may consider whether a city, county, or city and county is making a good faith effort to come into substantial compliance or is facing substantial undue hardships.

(n) Nothing in this section shall limit the authority of the office of the Attorney General to bring a suit to enforce state law in an independent capacity. The office of the Attorney General may seek all remedies available under law including those set forth in this section.

(o) Notwithstanding Sections 11040 and 11042, if the Attorney General declines to represent the department in any action or special proceeding brought pursuant to a notice or referral under subdivision (j), the department may appoint or contract with other counsel for purposes of representing the department in the action or special proceeding.

(p) Notwithstanding any other provision of law, the statute of limitations set forth in subdivision (a) of Section 338 of the Code of Civil Procedure shall apply to any action or special proceeding brought by the office of the Attorney General or pursuant to a notice or referral under subdivision (j), or by the department pursuant to subdivision (o).

(q) The amendments to this section made by the act adding this subdivision shall not be construed to limit the department’s ability to enforce programmatic requirements or remedies against cities, counties, and continuums of care pursuant to the Homeless Housing, Assistance, and Prevention program (Chapter 6 (commencing with Section 50216) and Chapter 6.5 (commencing with Section 50230) of Part 1 of Division 31 of the Health and Safety Code), the Encampment Resolution Funding program (Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code), and the Family Homelessness Challenge Grants and Technical Assistance Program (Chapter 8 (commencing with Section 50255) of Part 1 of Division 31 of the Health and Safety Code).

SECTION 1.SEC. 2.

Section 65913.13 is added to the Government Code, to read:

65913.13.

(a) For purposes of this section:

(1) “Downtown housing development” means a housing development project within a regional transit hub district that meets all of the following conditions:

(A) It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.

(B) It has a density of at least 60 dwelling units per acre.

(C) It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.

(D) It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.

(E) It does not demolish any individually landmarked property on a local, state, or federal historic register.

(F) It is consistent with the height, noise, and safety standards of an adopted airport land use compatibility plan or Department of Defense Air Installations Compatible Use Zones developed pursuant to Section 21675 of the Public Utilities Code.

(G) The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.

(2) “Housing development project” has the same meaning as defined in Section 65589.5.

(3) “Major transit city” means a city with a population of at least 400,000 in the most recent decennial census that contains at least two transit-oriented development stops.

(4) “Regional transit hub district” means a district designated pursuant to subdivision (b).

(5) “Transit-oriented development stop” has the same meaning as defined in Section 65912.156.

(b) (1) Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:

(A) A major transit city with a population of at least 400,000 and less than 1,000,000 in the most recent decennial census shall designate do both of the following:

(i) Designate at least one regional transit hub district with a district.

(ii) Ensure that the total area of all regional transit hub districts in the major transit city is at least 0.5 square miles.

(B) A major transit city with a population of at least 1,000,000 and less than 2,000,000 in the most recent decennial census shall designate do both of the following:

(i) Designate at least one regional transit hub district with a district.

(ii) Ensure that the total area of all regional transit hub districts in the major transit city is at least one square mile.

(C) A major transit city with a population of at least 2,000,000 in the most recent decennial census shall designate do both of the following:

(i) Designate at least one regional transit hub district with a district.

(ii) Ensure that the total area of all regional transit hub districts in the major transit city is at least 1.5 square miles.

(3) (A) Subject to the requirements of this paragraph, if a major transit city has not complied with paragraph (1), then the equivalent area in a uniform radius around the city’s highest ridership transit-oriented development stop shall be deemed a regional transit hub district.

(4) Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.

(5) A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).

(6) The designation of a regional transit hub district pursuant to this subdivision subdivision, including, but not limited to, the enactment of an ordinance described in subparagraph (B) of paragraph (2), shall not be considered a “project” for the purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.

(c) (1) Each transit hub district shall meet all of the following requirements:

(A) It shall be a contiguous area of land.

(B) It shall have a land area of at least 0.25 square miles.

(C) It shall contain at least one transit-oriented development stop.

(2) (A) A regional transit hub district shall make a downtown housing development an allowable use and shall be subject to all of the following: following with respect to a downtown housing development:

(i) The city shall not set a maximum height limit lower than 150 feet.

(ii) At least 25 percent of the total aggregate area of all regional transit hub districts in a city shall allow a maximum height limit of at least 450 feet.

(iii) The city shall not set a maximum floor area ratio lower than six.

(iv) At least 25 percent of the total aggregate area of all regional hub districts in a city shall allow a maximum floor area ratio of at least 12.

(v) The city shall not set a maximum density less than 200 dwelling units per acre.

(vi) At least 25 percent of the total aggregate area of all regional hub districts in a city shall not have a maximum density limit.

(B) The city may set other objective zoning standards, objective subdivision standards, and objective design review standards related to a downtown housing development within a transit hub district that are consistent with the requirements described in subparagraph (A).

(d) Both of the following apply to a downtown housing development:

(1) It may qualify for a density bonus, incentives or concessions, waivers or reductions of development standards, or parking ratios pursuant to Section 65915 or a local density bonus program, using the requirements of this section as the base density.

(2) (A) Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.

(B) If utilizing the streamlined ministerial approval pursuant to Section 65913.4, the project shall be exempt from subdivision (a) of that section, except as follows:

(i) It shall meet the standards of paragraph (6) of that subdivision.

(ii) It shall meet the standards of paragraph (8) of that subdivision.

(C) (i) The local government shall, as a condition of streamlined ministerial approval of the development, require the development proponent to complete a phase I environmental assessment.

(ii) If a recognized environmental condition is found, the development proponent shall complete a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.

(iii) If a release of a hazardous substance is found to exist on the site, the release shall be removed or any effects of the release shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.

(iv) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to levels required by current federal and state statutory and regulatory standards before the local government issues a certificate of occupancy.

(e) (1) The California Housing Finance Agency shall conduct a housing construction loan and financing study that includes, but is not limited to, all of the following:

(A) An analysis of existing construction loan programs and housing construction loan programs implemented in California.

(D) Recommendations for how a state construction loan program could function and facilitate multifamily rental and for-sale housing developments, including, but not limited to, all of the following:

(i) Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.

(ii) Housing projects of varying sizes, including, but not limited to, missing middle housing projects and large, high-rise projects with the affordability and labor standards contemplated by this section.

(iii) Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.

(E) An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (C). (D).

(G) Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.

(H) Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.

(2) The California Housing Finance Agency shall submit the study described in paragraph (1) to the Legislature, including, but not limited to, the Assembly Housing and Community Development Committee, the Assembly Local Government Committee, the Senate Local Government Committee, and the Senate Housing Committee, by December 1, 2027, March 1, 2028, in compliance with Section 9795.

(3) Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on January April 1, 2028.

(f) This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.

(g) The Legislature finds and declares that the statewide housing crisis is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

SEC. 2.SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.