Updates to the permitting and approval of new housing developments

Amended Calif. Government Code §65913.4

Effective date: January 1, 2025

Bill text: AB 3122

Why this matters: The streamlined approval process developers use when certain parameters are met just got additional incentives, providing more very low-income housing options, shorter permitting timelines, permissible deviations from original building proposals and expanded streamlining of the approval process for more developments.

Streamlined approval process

California law allows eligible housing developers to go through a streamlined approval process — including bypassing a review under the California Environmental Quality Act (CEQA) — permitting projects which meet local administratively objective zoning and design standards, provide a minimum percentage of low-income units and follow labor and wage requirements. [Calif. Government Code §65913.4]

Newly enacted legislation revises aspects of the streamlined approval process.

The new law makes the following changes:

updates eligibility for the streamlined approval process: at least 9% of units available for residents making at or below 50% of the area median income.
establishes a 30-day planning review timeframe local governments must follow when revisions for a development are submitted in response to written feedback from the local government.
allows changes to square footage of construction or total number of residential units to provide greater flexibility for changes in response to market conditions.
opens the streamlined approval process to developments with ten or fewer units that are not a public work and are funded through low-income housing tax credits. [Gov C §65913.4]

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