SB 8 · Housing Laws Navigator
Bills · 2021-2022 Session

SB 8

Housing Crisis Act of 2019.Ch. 161, Stats. 2021 · chaptered 2021-09-16 · Later amended

Key provisions · Claude summary of the digest, not bill text

Extended the Housing Crisis Act of 2019 until January 1, 2030, and clarified its definitions, vesting rules, and protected-unit requirements.

  • Extension. Extended the act to January 1, 2030, allowed a second HCD update of affected jurisdictions on or after January 1, 2025, valid until January 1, 2030.
  • Project definition. Clarified that housing development project includes ministerial, mixed-approval, and single-unit projects, except for applications before January 1, 2022.
  • Affordable vesting. Allowed later standards to apply to affordable projects not commenced within 3.5 years.
  • Protected units. Limited relocation benefits and right of first refusal to lower income occupants, excluded short-term rentals under 30 days, and exempted specified projects.
  • No net loss. Defined concurrently as the same meeting, or within 180 days for applicant-requested actions, with a special rule for initiatives.
  • Downzoning baseline. Clarified the prohibition applies to designations and zoning in effect at the time of the proposed change.

Paraphrased from the Legislative Counsel’s Digest. Check the bill text before relying on it.

ClaudeGreen text is a summary heading written by Claude to help navigate. It is not statute text; the statute text is in black.

SEC. 1In the navigator:§ 65589.5changes

Section 65589.5 of the Government Code is amended to read:

SEC. 2In the navigator:§ 65905.5changes

Section 65905.5 of the Government Code is amended to read:

SEC. 3In the navigator:§ 65913.10changes

Section 65913.10 of the Government Code is amended to read:

SEC. 4In the navigator:§ 65940changes

Section 65940 of the Government Code, as amended by Section 6 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 4.5In the navigator:§ 65940changes

Section 65940 of the Government Code, as amended by Section 6 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 5In the navigator:§ 65940changes

Section 65940 of the Government Code, as added by Section 7 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 5.5In the navigator:§ 65940changes

Section 65940 of the Government Code, as added by Section 7 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 6In the navigator:§ 65941.1changes

Section 65941.1 of the Government Code is amended to read:

SEC. 6.5In the navigator:§ 65941.1changes

Section 65941.1 of the Government Code is amended to read:

SEC. 7In the navigator:§ 65943changes

Section 65943 of the Government Code, as amended by Section 9 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 8In the navigator:§ 65943changes

Section 65943 of the Government Code, as added by Section 10 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 9

Section 65950 of the Government Code, as amended by Section 11 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 10

Section 65950 of the Government Code, as added by Section 12 of Chapter 654 of the Statutes of 2019, is amended to read:

SEC. 11In the navigator:§ 66300changes

Section 66300 of the Government Code is amended to read:

SEC. 12

Section 66301 of the Government Code is amended to read:

SEC. 13

Section 2 of Chapter 654 of the Statutes of 2019 is amended to read:

SEC. 2. (a) The Legislature finds and declares the following:

(1) California is experiencing a housing supply crisis, with housing demand far outstripping supply. In 2018, California ranked 49th out of the 50 states in housing units per capita.

(2) Consequently, existing housing in this state, especially in its largest cities, has become very expensive. Seven of the 10 most expensive real estate markets in the United States are in California. In San Francisco, the median home price is $1.6 million.

(3) California is also experiencing rapid year-over-year rent growth with three cities in the state having had overall rent growth of 10 percent or more year-over-year, and of the 50 United States cities with the highest United States rents, 33 are cities in California.

(4) California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over the next 7 years.

(5) The housing crisis has particularly exacerbated the need for affordable homes at prices below market rates.

(6) The housing crisis harms families across California and has resulted in all of the following:

(A) Increased poverty and homelessness, especially first-time homelessness.

(B) Forced lower income residents into crowded and unsafe housing in urban areas.

(C) Forced families into lower cost new housing in greenfields at the urban-rural interface with longer commute times and a higher exposure to fire hazard.

(D) Forced public employees, health care providers, teachers, and others, including critical safety personnel, into more affordable housing farther from the communities they serve, which will exacerbate future disaster response challenges in high-cost, high-congestion areas and increase risk to life.

(E) Driven families out of the state or into communities away from good schools and services, making the ZIP Code where one grew up the largest determinate of later access to opportunities and social mobility, disrupting family life, and increasing health problems due to long commutes that may exceed three hours per day.

(7) The housing crisis has been exacerbated by the additional loss of units due to wildfires in 2017 and 2018, which impacts all regions of the state. The Carr Fire in 2017 alone burned over 1,000 homes, and over 50,000 people have been displaced by the Camp Fire and the Woolsey Fire in 2018. This temporary and permanent displacement has placed additional demand on the housing market and has resulted in fewer housing units available for rent by low-income individuals.

(8) Individuals who lose their housing due to fire or the sale of the property cannot find affordable homes or rental units and are pushed into cars and tents.

(9) Costs for construction of new housing continue to increase. According to the Terner Center for Housing Innovation at the University of California, Berkeley, the cost of building a 100-unit affordable housing project in the state was almost $425,000 per unit in 2016, up from $265,000 per unit in 2000.

(10) Lengthy permitting processes and approval times, fees and costs for parking, and other requirements further exacerbate cost of residential construction.

(11) The housing crisis is severely impacting the state’s economy as follows:

(A) Employers face increasing difficulty in securing and retaining a workforce.

(B) Schools, universities, nonprofits, and governments have difficulty attracting and retaining teachers, students, and employees, and our schools and critical services are suffering.

(C) According to analysts at McKinsey and Company, the housing crisis is costing California $140 billion a year in lost economic output.

(12) The housing crisis also harms the environment by doing both of the following:

(A) Increasing pressure to develop the state’s farmlands, open space, and rural interface areas to build affordable housing, and increasing fire hazards that generate massive greenhouse gas emissions.

(B) Increasing greenhouse gas emissions from longer commutes to affordable homes far from growing job centers.

(13) Homes, lots, and structures near good jobs, schools, and transportation remain underutilized throughout the state and could be rapidly remodeled or developed to add affordable homes without subsidy where they are needed with state assistance.

(14) Reusing existing infrastructure and developed properties, and building more smaller homes with good access to schools, parks, and services, will provide the most immediate help with the lowest greenhouse gas footprint to state residents.

(b) In light of the foregoing, the Legislature hereby declares a statewide housing emergency, to be in effect until January 1, 2030.

(c) It is the intent of the Legislature, in enacting the Housing Crisis Act of 2019, to do both of the following:

(1) Suspend certain restrictions on the development of new housing during the period of the statewide emergency described in subdivisions (a) and (b).

(2) Work with local governments to expedite the permitting of housing in regions suffering the worst housing shortages and highest rates of displacement.

SEC. 14

Section 4.5 of this bill incorporates amendments to Section 65940 of the Government Code, as amended by Section 6 of Chapter 654 of the Statutes of 2019, proposed by both this bill and Senate Bill 37. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2022, (2) each bill amends Section 65940 of the Government Code, as amended by Section 6 of Chapter 654 of the Statutes of 2019, and (3) this bill is enacted after Senate Bill 37, in which case Section 4 of this bill shall not become operative.

SEC. 15. Section 5.5 of this bill incorporates amendments to Section 65940 of the Government Code, as amended by Section 7 of Chapter 654 of the Statutes of 2019, proposed by both this bill and Senate Bill 37. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2022, (2) each bill amends Section 65940 of the Government Code, as amended by Section 7 of Chapter 654 of the Statutes of 2019, and (3) this bill is enacted after Senate Bill 37, in which case Section 5 of this bill shall not become operative.

SEC. 16

Section 6.5 of this bill incorporates amendments to Section 65941.1 of the Government Code proposed by both this bill and Senate Bill 37. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2022, (2) each bill amends Section 65941.1 of the Government Code, and (3) this bill is enacted after Senate Bill 37, in which case Section 6 of this bill shall not become operative.

SEC. 17. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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.

Source: LegiScan API, chaptered text of SB 8 (2021-2022 Session).

Bill text is the chaptered version from LegiScan (California Legislature); spacing is normalized. Code section text in a bill is the text that bill chaptered, not necessarily the law in effect today. Not legal advice.