New CA Laws Boost Housing Development, Enforce Penalties

According to The Real Deal, Governor Gavin Newsom signed a package of bills aimed at tackling California’s ongoing housing crisis by streamlining the development process and increasing penalties for CA cities that fail to meet affordable housing goals.

Behind The Bills

Speaking at a news conference, Newsom referred to the state’s housing affordability crisis as California’s “original sin” and stressed the importance of local jurisdictions complying with state housing mandates.

The 7 bills that were signed are part of a broader package of 32 bills focused on boosting housing production and lowering homelessness. These laws are expected to help California reach its goal of constructing 2.5M homes by 2030.

Streamlining Approvals

The new legislation focuses on making the city approval process more efficient, rather than targeting private developers. 

Assembly Bill 2243, introduced by Assemblywoman Buffy Wicks (D-Oakland), builds on previous legislation (AB 2011) and simplifies the approval process for housing projects located near regional malls and freeways. The new laws aim to repurpose underutilized areas for much-needed residential development.

Assembly Bill 3093, introduced by Assemblyman Chris Ward (D-San Diego), also plays a significant role by requiring cities to develop housing plans that accommodate low-income residents, particularly those earning between 15% to 30% of the area median income. 

This law is expected to facilitate the construction of housing for homeless populations and those at high risk of displacement.

Stricter Penalties

One of the most impactful measures is Senate Bill 1037, introduced by State Senator Scott Wiener (D-San Francisco). 

Under this law, local governments that fail to comply with state housing laws will face fines of up to $50K per month. These penalties will persist until the violation is resolved, and the funds collected will be directed toward developing affordable housing in the penalized city or county.

Newsom emphasized that cities resisting state-mandated housing requirements will face serious consequences, singling out Huntington Beach, Norwalk, and Elk Grove for their ongoing violations. 

For example, Huntington Beach was recently cited by a court for refusing to create a housing plan, while Norwalk extended a moratorium on emergency shelters despite warnings from state housing regulators.

Addressing Affordability

Newsom and state lawmakers hope these new laws will address both the affordability crisis and the rising homelessness problem in California. 

With cities now required to plan for extremely low-income residents and face penalties for non-compliance, the governor believes the new measures will hold local governments accountable.

The state aims to streamline the process of building affordable and supportive housing by targeting specific areas of the housing approval process and encouraging cities to focus on their most vulnerable populations. 

The laws complement past efforts to eliminate single-family zoning and increase the construction of backyard units, further diversifying housing options.

What’s Next?

As California works toward its 2030 housing target, these new laws are expected to serve as key drivers in the state’s efforts to address housing shortages and ensure affordable housing for all residents.

State officials will closely monitor local jurisdictions to ensure compliance and will levy fines as necessary to keep housing projects on track.

Governor Newsom reiterated that local governments must play their part: “They continue to thumb their nose at the state of California…and now we will enforce aggressive fines with the law that I will be signing today.”