SB 1433

(a) It is the intent of the Legislature in enacting this section to do both of the following:

(1) Establish minimum uniform, transparent, fair, and effective remedies against public agencies that are found by a court of law to have violated housing reform laws.

(2) Prevent public agencies from undermining these minimum uniform, transparent, fair, and effective remedies through the imposition of reimbursement and indemnification agreements on applicants for housing development approvals with respect to legal challenges involving the agency’s own alleged violation of housing reform laws.

(b) Notwithstanding any other law, and in addition to any other available remedies, in any action brought by the applicant for a housing development project against a public agency to enforce the public agency’s compliance with a housing reform law as applied to the applicant’s housing development project, where the applicant is the prevailing party, the following shall apply:

(1) The applicant shall be entitled to reasonable attorney’s fees and costs.

(2) (A) In the case of an action against a public agency that is a local agency:

(i) (I) If the local agency was advised in writing prior to the commencement of the action by either the Attorney General or the Department of Housing and Community Development that the local agency’s decision, action, or inaction would represent a violation of a specific housing reform law in substantially the same manner as alleged by the applicant in its lawsuit, the court shall, consistent with subclause (II), impose a fine in an amount not less than the minimum fines described in subparagraph (B) of paragraph (1) of subdivision (k) of Section 65589.5, unless the housing development projects consists of four or fewer units, in which case, the court shall impose a fine in an amount not less than fifty thousand dollars ($50,000) per violation.

(II) The court shall not impose the fine described in subclause (I) unless, after the Attorney General or the Department of Housing and Community Development sends the written communication to the local agency, the applicant provides written notice to the local agency of its intent to commence an action. The notice shall identify the factual elements of the dispute and the legal theory forming the basis for the allegation that the local agency’s decision, action, or inaction violated the housing reform law. The notice shall be provided to the local agency at least 60 days before commencement of the action.

(III) For any action commenced or intended to be commenced under this section, any period of limitation for actions under any California law shall be extended for a period of 60 days beginning on the date the applicant provides written notice, pursuant to subclause (II), to the local agency indicating its intent to commence an action.

(ii) (I) If a court has previously found that the local agency violated the same housing reform law on which an applicant prevailed in its lawsuit, within the same planning period, the court shall impose a fine in an amount not less than the minimum fines described in clause (i) multiplied by a factor of five.

(II) For the purpose of imposing a fine under subclause (I), any subsequent violation of the same housing reform law shall be considered to have occurred within the same planning period if the local agency does not have a housing element considered to be in substantial compliance, as described in Section 65585.03.

(B) Notwithstanding Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1, the applicant shall not be required to present a claim to seek the fine described in subparagraph (A).

(C) Nothing in thisThis subdivision limitsdoes not limit the application of Section 1021.5 of the Code of Civil Procedure or limitslimit the availability of fees to a successful party under that section.

(c) (1) A public agency shall not require an applicant for a housing development project to indemnify, defend, or hold harmless the public agency in any manner with respect to an action brought by the applicant, or any other person, alleging that the public agency violated the applicant’s rights or deprived the applicant of the benefits or protections provided by a housing reform law.

(2) A requirement, condition of approval, or agreement in violation of paragraph (1) is against public policy and void and unenforceable.

(3) This subdivision shall not be construed to derogate any claim that a requirement as described in paragraph (1) is or was unlawful under previously existing law.

(d) For purposes of this section:

(1) “Housing development project” has the same meaning as provided in paragraph (3) of subdivision (b) of Section 65905.5.

(2) “Housing reform law” means any law or regulation, or provision of any law or regulation, that establishes or facilitates rights, safeguards, streamlining benefits, time limitations, or other protections for the benefit of applicants for housing development projects, or restricts, proscribes, prohibits, or otherwise imposes any procedural or substantive limitation on a public agency for the benefit of a housing development project.

(3) “Local agency” has the same meaning as used in Section 65930.

(4) “Planning period” means the time period between the due date for one housing element and the due date for the next housing element for each revision according to the applicable schedule described in paragraphs (2) and (3) of subdivision (e) of Section 65588.

(5) “Public agency” has the same meaning as in Section 65932.

(a) For the purposes of this section, the following definitions apply:

(1) “Complete private bathroom” means a bathroom that consists of a toilet and a shower, with a vanity sink that may or may not be in the same room.

(2) (A) “Kitchen” means a section of a dwelling that includes a stove, sink, and refrigerator.

(B) The sink described in subparagraph (A) shall be separate from the bathroom.

(3) “Single-room occupancy unit” means a dwelling unit that does not include a complete private bathroom and kitchen.

(4) “Studio unit” means a dwelling unit that does not include a separate bedroom, but includes a complete private bathroom and a private kitchen.

(b) Notwithstanding paragraphs (1) and (2) of subdivision (b) of Section 66300.6, in the case of rehabilitation or replacement of an existing single-room occupancy building where units are deed restricted at affordable rents to low-income households, do not have separate bedrooms, and do not include both a complete private bath and a kitchen, an affected city or an affected county, as applicable, may reduce the number of required replacement units if it finds, based on substantial evidence in the record, that all of the following conditions are met:

(1) The reduction is necessary to accommodate the conversion of a single-room occupancy unit to a studio or larger unit, to accommodate the addition of facilities, including, but not limited to, private bathrooms, kitchens, or community rooms, to increase accessibility for persons with disabilities, or to address code compliance for matters related to health, welfare, life, and safety.

(2) The conversion of the single-room occupancy unit will be completed within four years from the date of rehabilitation or demolition of the single-room occupancy unit. If the completion of improvements will take longer than four years, the project proponent may present to the jurisdiction an explanation for the delay and a good faith plan demonstrating how occupancy will be achieved at the earliest possible date. If the delay is due to circumstances outside the project proponent’s control, the jurisdiction may, at its discretion, and using objective criteria, grant a one-year extension for project completion.

(3) The converted single-room occupancy unit will be a rental unit with affordable rents or lower than at the applicable affordable rent level of the replaced single-room occupancy unit, provided the affordable rent level would not be precluded due to limitations or other requirements of one or more funding source of the housing development.

(4) The converted single-room occupancy unit will only be available to households with a household income at or below the income levels for lower income, very low income, extremely low income, or acutely low income households, as specified in Sections 50063.5, 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, as applicable.

(5) A converted unit will remain available at the applicable affordable rent level of the replaced single-room occupancy unit for the longest feasible amount of time, but not less than 55 years. A covenant of affordability shall be recorded with the county recorder prior to the issuance of the certificate of occupancy or completion of work as approved by the local agency.

(6) (A) A displaced single-room occupancy unit occupant shall have a right of first refusal for admission to a replacement unit, provided the single-room occupancy unit occupant would not be precluded due to unit size limitations or other requirements of one or more funding source of the housing development.

(B) If an occupant is precluded from occupying a replacement unit due to a requirement of a funding source of the housing development, as described in subparagraph (A), the project proponent shall identify in writing the specific funding source and requirement that precludes the occupant’s return. If a displaced single-room occupancy occupant is deemed ineligible for the replacement unit due to this requirement, the project proponent shall offer an alternative, comparable unit within their portfolio to the displaced occupant.

(C) The initial rent for a returning single-room occupancy unit occupant shall not exceed the rent at the time of displacement by more than 5 percent. Notwithstanding the preceding sentence, if the displaced occupant was paying 40 percent or more of their household income in rent at the time of displacement, the initial rent for that occupant shall not exceed the rent paid at the time of displacement.

(D) Subsequent rent increases shall be consistent with any other applicable law, contract, agreement, or other restrictions governing allowable rent increases, except that subsequent rent increases and maximum rents shall be subject to the following additional limitations:

(i) The amount of any subsequent rent increase for a replacement unit subject to this subparagraph shall not exceed the minimum amount necessary to ensure a positive cashflow for at least 20 years from the date the displaced single-room occupancy unit occupant begins residing in the replacement unit.

(ii) The amount of rent as subsequently increased in accordance with this subparagraph shall not exceed 50 percent of the displaced single-room occupancy unit occupant’s actual household income, determined as of the date the displaced single-room occupancy unit occupant begins residing in the replacement unit.

(iii) (I) Subject to subclause (II), if the amount of rent charged for a replacement unit subject to this paragraph equals or exceeds the lesser of the following amounts, further annual rent increases for that replacement unit shall be limited based on increases to the area median income under the low-income housing tax credit program, as administered by the California Tax Credit Allocation Committee:

(ia) Fifty percent of the displaced single-room occupancy unit occupant’s actual household income, as describedescribed in clause (ii).

(ib) The amount of rent charged for the single-room occupancy unit at the time of the occupant’s displacement.

(II) Notwithstanding subclause (I), no annual rent increase for a replacement unit shall result in the occupant paying more than 50 percent of their actual household income in rent, as provided in clause (ii).

(iv) Nothing in thisThis subparagraph shalldoes not preclude an owner, in consultation with the applicable regulating agency, from charging less than the maximum allowable rent. Nothing in thisThis subparagraph shalldoes not require a reduction of rent below the amount charged for the single-room occupancy unit at the time of the occupant’s displacement.

(7) The net loss of single-room occupancy units due to a rehabilitation or replacement in accordance with this section will not exceed 25 percent of the total single-room occupancy units in the development. Notwithstanding the preceding sentence, a project proponent may further reduce the number of units provided at the replacement project site if those additional units are replaced on a one-for-one basis, by either the project proponent or its designee. The offsite replacement housing shall meet all of the following conditions:

(A) The units shall be rental units with affordable rents at the applicable affordable rent level of the replaced single-room occupancy unit.

(B) The units shall be available to households with a household income at or below the income levels for lower income, very low income, extremely low income, or acutely low income, as specified in Sections 50063.5, 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, as applicable.

(C) The units shall remain available at the applicable affordable rent level of the replaced single-room occupancy unit for the longest feasible time, but not less than 55 years. The covenant of affordability shall be recorded with the county recorder prior to the issuance of the certificate of occupancy.

(D) (i) Except as otherwise provided in clause (ii), the replacement units shall be located within the applicable of the following:

(I) If there is an applicable local community plan area, within the same local community plan area as the converted single-room occupancy units.

(II) If there is no applicable community plan area, and the converted single-room occupancy units are located within a redevelopment project area, as described in Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, within the same redevelopment project area as the converted single-occupancy units.

(III) If there is no applicable community plan area, and the converted single-room occupancy units are not located within a redevelopment project area, as described in Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, within the same jurisdiction as the converted single-room occupancy units.

(ii) In lieu of locating replacement units within the same local community plan area, redevelopment project area, or jurisdiction as the converted single-room occupancy units, as described in clause (i), the replacement units may be located within a census tract or census block group, as applicable, that is designated as highest resource or high resource on the opportunity area maps developed by the California Tax Credit Allocation Committee and Department of Housing and Community Development and located within the same jurisdiction.

(E) Replacement units shall not be existing rental units occupied by a low-income household.

(F) All replacement units shall be made available for occupancy as soon as possible, but no more than four years from the date of rehabilitation or demolition of the single-room occupancy unit, whichever is earlier. If the project takes longer than four years due to extenuating circumstances, the project proponent may present to the jurisdiction a good faith plan demonstrating that occupancy would have been achieved within four years. If the delay is due to circumstances outside the project proponent’s control, the jurisdiction may, at its discretion and using objective criteria, grant a one-year extension for project completion.

(8) (A) Prior to the issuance of a permit for demolition, rehabilitation, or conversion of the single-room occupancy unit, the project proponent shall submit a replacement housing plan to the jurisdiction that includes all of the following:

(i) A description of the proposed conversion, demolition, or rehabilitation, including the substantial evidence required to show that reduction is necessary to accommodate the conversion of a single-room occupancy unit to a studio or larger unit, to accommodate the addition of facilities, including, but not limited to, private bathrooms, kitchens, or community rooms, to increase accessibility for persons with disabilities, or to address code compliance for matters related to health, welfare, life, and safety; the total number of units proposed and all related amenities; the total number of existing units; and the bedroom composition of the existing units.

(ii) A report on the current rental rates for each single-room occupancy unit, the number of vacancies and length of vacancies in the single-room occupancy building, and the length of residency of each occupied unit.

(iii) A statement as to whether any occupants will be displaced as a result of the proposed project.

(iv) A statement, with supporting documentation, as to when and why the unit was vacated.

(v) A plan for the replacement of the occupied and vacant single-room occupancy units, including, but not limited to, the following:

(I) The number of existing units.

(II) The bedroom composition.

(III) Whether the property is vacant or occupied.

(IV) The existing rent levels.

(V) Whether affordable covenants exist on that property, and, if so, the nature and duration of those covenants.

(vi) The time and manner that the replacement units will become available for occupancy.

(vii) If the removed units exceed 25 percent of the single-room occupancy units, the proposed location of replacement single-room occupancy units, with a description of the proposed property, including the location and previous use of the property.

(B) The jurisdiction shall review the replacement housing plan within 30 days of submission or resubmission.

(C) The jurisdiction shall not issue a permit for demolition, rehabilitation, or conversion of the single-room occupancy without first approving the replacement housing plan.

(9) A single-room occupancy removal shall be subject to the required relocation benefits and requirements, including the relocation plan, under Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, the local jurisdiction’s relocation benefits, or any other relocation benefits to which a displaced person is entitled, whichever is greatest, and shall be provided to all displaced persons, as defined in Section 7260. If any units are vacant, the owner shall provide documentation demonstrating when and why the unit was vacated. If a jurisdiction reasonably determines that a unit was vacated due to the owner’s attempt to avoid relocation assistance obligations, the owner shall be required to pay relocations assistance to a displaced occupant and offer a right of return to the new unit.

(c) A borrower may conduct a market study to support the unit sizes proposed in the replacement housing plan. If a market study is required by a regulating agency, it shall be conducted at the borrower’s expense and must conform to the market study guidelines adopted by the California Tax Credit Allocation Committee, including those for acquisition or rehabilitation projects pursuant to paragraph (10) of subdivision (h) of Section 10322 of Title 4 of the California Code of Regulations.

(a) Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following units, or any combination of the following units:

(1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:

(A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress.

(B) The space has exterior access from the proposed or existing single-family dwelling.

(C) The side and rear setbacks are sufficient for fire and safety.

(D) The junior accessory dwelling unit complies with the requirements of Article 3 (commencing with Section 66333).

(2) One detached, new construction, accessory dwelling unit that does not exceed four-foot side and rear yard setbacks for a lot with a proposed or existing single-family dwelling. A local agency may impose the following conditions on the accessory dwelling unit:

(A) A total floor area limitation of not more than 800 square feet of livable space.

(B) A height limitation as provided in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable.

(3) (A) Multiple accessory dwelling units within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings.

(B) A local agency shall allow at least one accessory dwelling unit within an existing multifamily dwelling and shall allow up to 25 percent of the existing multifamily dwelling units.

(4) (A) (i) Multiple accessory dwelling units, not to exceed the number specified in clause (ii) or (iii), as applicable, that are located on a lot that has an existing or proposed multifamily dwelling, but are detached from that multifamily dwelling and are subject to a height limitation in subparagraph (A), (B), or (C) of paragraph (4) of subdivision (b) of Section 66321, as applicable, and rear yard and side setbacks of no more than four feet.

(ii) On a lot with an existing multifamily dwelling, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.

(iii) On a lot with a proposed multifamily dwelling, not more than two detached accessory dwelling units.

(B) If the existing multifamily dwelling has a rear or side setback of less than four feet, the local agency shall not require any modification of the existing multifamily dwelling as a condition of approving the application to construct an accessory dwelling unit that satisfies the requirements of this paragraph.

(b) A local agency shall not impose any objective development or design standard that is not authorized by this section upon any unit that meets the requirements of any of paragraphs (1) to (4), inclusive, of subdivision (a).

(c) A local agency shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions.

(d) The installation of fire sprinklers shall not be required in an accessory dwelling unit or a junior accessory dwelling unit if sprinklers are not required for the primary residence. The construction of an accessory dwelling unit or a junior accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing multifamily dwelling.

(e) A local agency shall require that a rental of the accessory dwelling unit created pursuant to this section be for a term longer than 30 days.

(f) A local agency may require, as part of the application for a permit to create an accessory dwelling unit connected to an onsite wastewater treatment system, a percolation test completed within the last five5 years, or, if the percolation test has been recertified, within the last 10 years.

(a) A development proponent may submit an application for a development that is subject to a streamlined, ministerial approval process, provided in subdivision (b), and is not subject to a conditional use permit if all of the following requirements are met:

(1) The development is located on land that meets one of the following:

(A) Is designated as agricultural in the applicable city or county general plan.

(B) Is located in the CountiesCounty of Fresno, Madera, Merced, Santa Clara, or Santa Cruz, is within 15 miles of an area designated as farmland or grazing by the Department of Conservation, and is not a site or adjoined to a site where more than one-third of the square footage on the site is dedicated to industrial use. For the purposes of this subparagraph, parcels separated by a street shall be considered adjoined.

(2) The development is not located on a site that is any of the following:

(A) Within the coastal zone, as defined in Division 20 (commencing with Section 30000) of the Public Resources Code.

(B) Wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).

(C) Within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178 of the Government Code, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code.

(D) A hazardous waste site that is listed pursuant to Section 65962.5 of the Government Code or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Article 5 (commencing with Section 78760) of Chapter 4 of Part 2 of Division 45, unless the Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses.

(E) Within a delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901)), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code.

(F) Within a flood plain as determined by maps promulgated by the Federal Emergency Management Agency, unless the development has been issued a flood plain development permit pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.

(G) Within a floodway as determined by maps promulgated by the Federal Emergency Management Agency.

(H) Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.

(I) Lands under conservation easement. For purposes of this section, “conservation easement” shall not include a contract executed pursuant to the Williamson Act (Chapter 7 (commencing with Section 51200) of Division 1 of Title 5 of the Government Code).

(J) Lands with groundwater levels within five feet of the soil surface and for which the development would be served by an onsite wastewater disposal system serving more than six family housing units.

(3) The development is an eligible agricultural employee housing development that satisfies the requirements specified in subdivision (i).

(b) (1) If a local government determines that a development submitted pursuant to this section does not meet the requirements specified in subdivision (a), the local government shall provide the development proponent written documentation of which requirement or requirements the development does not satisfy and an explanation for the reason or reasons the development does not satisfy the requirement or requirements, as follows:

(A) Within 30 days of submission of the development to the local government pursuant to this section if the development contains 50 or fewer housing units.

(B) Within 60 days of submission of the development to the local government pursuant to this section if the development contains more than 50 housing units.

(2) If the local government fails to provide the required documentation pursuant to paragraph (1), the development shall be deemed to satisfy the requirements specified in paragraph (2) of subdivision (a).

(c) The local government’s planning commission or an equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate, may conduct a development review or public oversight of the development. The development review or public oversight shall be objective and be strictly focused on assessing compliance with criteria required for streamlined projects, as well as any reasonable objective development standards described in this section. For purposes of this subdivision, “objective development standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submission. The development review or public oversight shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:

(1) Within 90 days of submission of the development to the local government pursuant to this section if the development contains 50 or fewer housing units.

(2) Within 180 days of submission of the development to the local government pursuant to this section if the development contains more than 50 housing units.

(d) An agricultural employee housing development that is approved pursuant to this section shall not be subject to the density limits specified in Section 17021.6 in order to constitute an agricultural land use for purposes of that section.

(e) Notwithstanding Section 17021.6, a local government may subject an agricultural employee housing development that is approved pursuant to this section to the following written, objective development standards:

(1) (A) A requirement that the development have adequate water and wastewater facilities and dry utilities to serve the project.

(B) A requirement that the development be connected to an existing public water system that has not been identified as failing or being at risk of failing to provide an adequate supply of safe drinking water.

(C) If the development proposes to include 10 or more units, a requirement that the development connect to an existing municipal sewer system that has adequate capacity to serve the project. If the local agency has adopted an approved local agency management program for onsite wastewater treatment systems, those requirements shall apply to the development.

(2) A requirement that the property on which the development is located be either:

(A) Within one-half mile of a duly designated collector road with an Average Daily Trips (ADT) of 6,000 or greater.

(B) Adjacent to a duly designated collector road with an ADT of 2,000 or greater.

(3) A requirement that the development include off-street parking based upon demonstrated need, provided that the standards do not require more parking for eligible agricultural employee housing developments than for other residential uses of similar size within the jurisdiction.

(4) Notwithstanding Section 17020 or any other law, health, safety, and welfare standards for agricultural employee housing, including, but not limited to, density, minimum living space per occupant, minimum sanitation facilities, minimum sanitation requirements, and similar standards.

(5) Standards requiring that 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 a level of insignificance in compliance with state and federal requirements.

(f) Neither the approval of a development pursuant to this section, including the permit processing, nor the application of development standards pursuant to this section shall be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(g) Notwithstanding Section 17021.6, a local agency may impose fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the eligible agricultural employee housing development.

(h) This section shall not be construed to:

(1) Prohibit a local agency from requiring an eligible agricultural employee housing development to comply with objective, quantifiable, written development standards, conditions, and policies that are consistent with subdivision (e) and appropriate to, and consistent with, meeting the jurisdiction’s need for farmworker housing, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583 of the Government Code.

(2) Prohibit a local agency from disapproving an eligible agricultural employee housing development if the eligible agricultural employee housing development as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to lower income households, as defined in Section 50079.5, or rendering the development financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

(3) Prohibit a local agency from disapproving an eligible agricultural employee housing development if that project would be in violation of any applicable state or federal law.

(4) Change any obligations to comply with any other existing laws, including, but not limited to, Section 116527, Section 106.4 of the Water Code, Division 7 (commencing with Section 13000) of the Water Code, and Part 12 (commencing with Section 116270) of Division 104.

(i) For purposes of this section, “eligible agricultural employee housing development” means an agricultural employee housing development that satisfies all of the following:

(1) The agricultural employee housing does not contain dormitory-style housing.

(2) The development consists of no more than either of the following:

(A) Thirty-six units or spaces designed for use by a single family or household.

(B) One hundred fifty units or spaces designed for use by a single family or household if the development is located in the Counties of Fresno, Madera, Merced, Santa Clara, or Santa Cruz.

(3) (A) Except as otherwise provided in subparagraph (B), the agricultural employee housing will be maintained and operated by a qualified affordable housing organization that has been certified pursuant to Section 17030.10. The development proponent shall submit proof of issuance of the qualified affordable housing organization’s certification by the enforcement agency. The qualified affordable housing organization shall provide for onsite management of the development.

(B) In the case of agricultural employee housing that is maintained and operated by a local public housing agency or a multicounty, state, or multistate agency that has been certified as a qualified affordable housing organization as required by this paragraph, that agency either directly maintains and operates the agricultural employee housing or contracts with another qualified affordable housing organization that has been certified pursuant to Section 17030.10.

(C) The local government ensures an affordability covenant is recorded on the property to ensure the affordability of the proposed agricultural employee housing for agricultural employees for not less than 55 years. For purposes of this paragraph, “affordability” means the agricultural housing is made available at an affordable rent, as defined in Section 50053, to lower income households, as defined in Section 50079.5.

(4) The agricultural employee housing is not ineligible for state funding pursuant to paragraph (1) of subdivision (b) of Section 50205 or paragraph (1) of subdivision (b) of Section 50517.10. All subdivisions of agricultural employee housing in the development and the entire scope of the development are not ineligible for funding pursuant to paragraph (1) of subdivision (b) of Section 50205 or paragraph (1) of subdivision (b) of Section 50517.10. The use of the term “unit or space” shall not be construed to limit those provisions’ prohibition on the use of state funding to support H-2A employer obligations. Consistent with paragraph (2) of subdivision (b) of Section 50205 and paragraph (1) of subdivision (b) of Section 50517.10, any employer or other recipient of state funding who utilizes state funding for a purpose prohibited under those provisions shall reimburse the state or the state agency that provided the funding in an amount equal to the amount of that state funding expended for those prohibited purposes.

(j) For purposes of this section, “agricultural employee housing” means employee housing for agricultural employees as both terms are defined in Sections 17008 and 17021, respectively.

(k) For the purposes of this section:

(1) “Dedicated to industrial use” means any of the following:

(A) The square footage is currently being used as an industrial use.

(B) The most recently permitted use of the square footage is an industrial use, and the site has been occupied within the past three years.

(C) The site was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022, and residential uses are not the principally permitted use.

(2) (A) Except as otherwise provided in subparagraph (B), “industrial use” means utilities, manufacturing, transportation storage and maintenance facilities, warehousing uses, and any other use that is a source that is subject to permitting by a district, as defined in Section 39025, pursuant to Division 26 (commencing with Section 39000), or the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.).

(B) “Industrial use” does not include any of the following:

(i) Power substations or utility conveyances, including, but not limited to, power lines, broadband wires, or pipe.

(ii) A use where the only source permitted by a district is an emergency backup generator.

(iii) Self-storage for the residents of a building.

(l) The Legislature hereby declares that it is the policy of this state that each county and city shall permit and encourage the development and use of sufficient numbers and types of agricultural employee housing as are commensurate with local need. The Legislature further finds and declares that this section addresses a matter of statewide concern rather than 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.

(a) It is the intent of the Legislature in enacting this section to clarify the applicability of this division to the provision of public access within a park or open space area by a county park agency, a park district, or the Great Redwood Trail Agency in a manner that involves minimal physical alterations and minimal improvements to the affected area. This section is not intended to provide relief from any other law, regulation, or responsibility.

(b) (1) Subject to paragraph (2), this division does not apply to a change in use approved by a lead agency to allow public access to any of the following in an area used exclusively for nonmotorized recreation:

(A) Preexisting paved and natural surface roads.

(B) Preexisting trails.

(C) Preexisting pathways.

(D) Preexisting disturbed areas for vehicle parking, such as driveways, when the change of use does not involve new paving or grading.

(E) Rail lines converted by the Great Redwood Trail Agency into trails known as the Great Redwood Trail.

(2) The exemption in paragraph (1) only applies if all of the following criteria are met:

(A) The lead agency is a county park agency, a park district, or the Great Redwood Trail Agency.

(B) The area used for nonmotorized recreation is owned or managed by a county park agency, a park district, or the Great Redwood Trail Agency.

(C) The change in use is to provide public access for nonmotorized recreation.

(D) The change in use only involves minimal physical alterations and minimal improvements to the affected area. Minimal improvements shall only include signage, portable restrooms, sediment control, and other similar improvements that protect the environment in the context of public access.

(E) The change in use is not likely to result in either of the following:

(i) Significant adverse impacts to tribal cultural resources.

(ii) Significant adverse impacts to endangered, threatened, rare, or special status plant or animal species.

(c) Before making a determination to approve or carry out a change in use that is determined to be exempt from this division pursuant to subdivision (b), the lead agency shall do all of the following:

(1) Hold a public meeting to consider and solicit public input on the change in use under consideration.

(2) Post a written notice of the public meeting on the public agency’s internet website and at the project site at least 30 days before the public meeting. The written notice shall include a project description and the location and date of the public meeting.

(3) (A) Adopt a natural resource management plan, or equivalent document, that includes appropriate identification of resources and management strategies for the affected area, which may include, but is not limited to, all of the following:

(i) The identification of sensitive species of flora and fauna, sensitive habitats, sensitive soils and erosion considerations, sensitive coastal resources, hydrology, and fire ignition hazards.

(ii) The identification of tribal, historical, and other cultural resources.

(iii) The identification of avoidance strategies and mitigation measures for any impact to the resources described in clauses (i) and (ii).

(iv) The identification of ongoing maintenance and management needs.

(B) The adoption of a natural resource management plan, or equivalent document, for purposes of making an exemption determination pursuant to this section is not subject to this division.

(4) Make a finding based on substantial evidence that all of the criteria specified in paragraph (2) of subdivision (b) are met and that there is sufficient funding to implement the natural resource management plan or equivalent document.

(d) If the lead agency determines that a change in use is not subject to this division pursuant to this section, and the lead agency determines to approve or carry out the activity, the lead agency shall file a notice with the State Clearinghouse in the Office of Land Use and Climate Innovation and with the county clerk of the county in which the land is located in accordance with subdivisions (b), (c), and (d) of Section 21152.

(e) For purposes of this section, the following definitions apply:

(1) “Nonmotorized recreation” means low-impact recreational activities, including hiking, walking, bike riding, equestrian use, and nature viewing.

(2) “Park district” means a district, as defined in Section 5500, that is governed by an independent board.

(3) “Public access” means allowing visitors on public agency-managed park and open space in a manner that is consistent with the underlying conservation or park purposes for those lands.

(f) This section does not apply where it is reasonably foreseeable that the provision of public access within a park or open-spaceopen space area will have a significant or cumulatively considerable effect on the environment.

(g) This section does not affect any land covenants, such as grant agreements, conservation easements, or deed restrictions, or a long-term management plan or habitat conservation plan, or altersalter any conditions of acquisition.

(h) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.

The Legislature finds and declares all of the following:

(a) The Legislature reaffirms that the California Environmental Quality Act (CEQA) established longstanding legal requirements for the imposition of mitigation measures on projects.

(b) Specifically, CEQA requires that mitigation measures:

(1) Be feasible, meaning capable of being accomplished in a successful manner within a reasonable timeframe, taking into account economic, environmental, legal, social, and technological factors.

(2) Be roughly proportional to the impacts of the project.

(3) Be supported by substantial evidence demonstrating a reasonable relationship, or “nexus,” between the mitigation and the impact it is intended to address.

(c) The Legislature further reaffirms that mitigation frameworks, including those aimed at addressing cumulative impacts such as vehicle miles traveled, must comply with these longstanding requirements that provide legal certainty, and equitable treatment of projects.

(d) Guidelines shall be developed in a manner that reflects and upholds these established principles.

(e) The Legislature further finds that existing guidance has been established in CEQA guidelines and subsequent technical advisories for addressing transportation impacts under CEQA. Impact analysis under CEQA is a dynamic process, continually informed by advancements in research, data, and practice. Currently, the Department of Transportation is developing updated methodologies for analyzing transportation impacts in rural settings, which are expected to be published on or before July 1, 2026. It is the intent of the Legislature that these ongoing efforts be integrated into relevant guidance for addressing transportation impacts that promote more effective practices statewide.

(f) It is the intent of Legislature that lead agencies ensure that vehicle miles traveled mitigation is achieved through a balanced approach by ensuring a project invests in multiple types of mitigation measures when working to reduce the vehicle miles traveled impacts of a project.

(g) It is the intent of the Legislature that this program serve as one optional strategy that a project applicant may use to mitigate a significant transportation impact under CEQA. The program established pursuant to Section 21080.44 is intended to facilitate an existing category of mitigation, specifically, the development of vehicle miles traveled-efficient affordable housing or related infrastructure, by providing a streamlined and accessible mechanism through which applicants can contribute to eligible mitigation projects. This approach is consistent with established practices already used at the local and regional level across the state and provides project applicants an additional tool to support their mitigation efforts.