For purposes of this section:
“Downtown housing development” means a housing development project within a regional transit hub district that meets all of the following conditions:
It meets the standards of paragraph (8) of subdivision (a) of Section 65913.4.
It has a density of at least 60 dwelling units per acre.
It includes housing affordable for lower income households at the levels specified in subdivision (i) of Section 65912.157.
It meets the site eligibility requirements of subdivisions (g) and (h) of Section 65912.157.
It does not demolish any individually landmarked property on a local, state, or federal historic register.
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.
The average total area of floor space for the proposed units in the project does not exceed 1,750 net habitable square feet.
“Housing development project” has the same meaning as defined in Section 65589.5.
“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.
“Regional transit hub district” means a district designated pursuant to subdivision (b).
“Transit-oriented development stop” has the same meaning as defined in Section 65912.156.
Subject to paragraph (1) of subdivision (c), by July 1, 2027, each major transit city shall comply with the applicable of the following:
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 do both of the following:
Designate at least one regional transit hub district.
Ensure that the total area of all regional transit hub districts in the major transit city is at least 0.5 square miles.
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 do both of the following:
Designate at least one regional transit hub district.
Ensure that the total area of all regional transit hub districts in the major transit city is at least one square mile.
A major transit city with a population of at least 2,000,000 in the most recent decennial census shall do both of the following:
Designate at least one regional transit hub district.
Ensure that the total area of all regional transit hub districts in the major transit city is at least 1.5 square miles.
A major transit city shall make the designation required by paragraph (1) by the applicable of the following:
Resolution, if the major transit city’s existing zoning code standards and zoning maps applicable to the regional transit hub district are consistent with the requirements of this section.
Ordinance, if one or more amendments to the major transit city’s existing zoning code standards or zoning maps applicable to the regional transit hub district are necessary to make the standards or maps consistent with the requirements of this section, in which case the ordinance shall also include those amendments.
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.
The area described in subparagraph (A) shall comply with all of the following:
It shall be located entirely within the major transit city.
It shall not occupy any portion of the San Francisco Bay.
It shall not occupy any portion of the Pacific Ocean.
The portions of the area described in subparagraph (A) that are subject to clauses (ii), (iv), and (vi), inclusive, of subparagraph (A) of paragraph (2) of subdivision (c) shall be located in an equivalent area of uniform radius closest to the city’s highest ridership transit-oriented development stop.
The highest ridership transit-oriented development stop described in subparagraph (A) shall be determined by measuring the cumulative total ridership for all transit operators serving the stop over the course of the 12-month period between July 1, 2026, and July 1, 2027.
Subject to subdivision (c), a city that is not a major transit city may designate a regional transit hub district.
A major transit city may designate multiple regional transit hub districts so long as they cumulatively meet the applicable requirement of paragraph (1).
The designation of a regional transit hub district pursuant to this 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.
Each transit hub district shall meet all of the following requirements:
It shall be a contiguous area of land.
It shall have a land area of at least 0.25 square miles.
It shall contain at least one transit-oriented development stop.
A regional transit hub district shall make a downtown housing development an allowable use and shall be subject to all of the following with respect to a downtown housing development:
The city shall not set a maximum height limit lower than 150 feet.
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.
The city shall not set a maximum floor area ratio lower than six.
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.
The city shall not set a maximum density less than 200 dwelling units per acre.
At least 25 percent of the total aggregate area of all regional hub districts in a city shall not have a maximum density limit.
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).
Both of the following apply to a downtown housing development:
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.
Subject to subparagraph (B), it shall be eligible for streamlined ministerial approval pursuant to Section 65913.4.
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:
It shall meet the standards of paragraph (6) of that subdivision.
It shall meet the standards of paragraph (8) of that subdivision.
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.
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.
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.
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.
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:
An analysis of existing construction loan programs and housing construction loan programs implemented in California.
An assessment of current gaps in housing construction loan availability for a state housing construction loan program, including, but not limited to, gaps that impede the production of the types of housing sought to be developed.
A case study analysis identifying and examining appropriate precedents that address the gaps identified pursuant to subparagraph (B).
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:
Housing developments serving various income levels or serving a mix of incomes, including, but not limited to, lower, moderate, and above-moderate income earners.
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.
Housing developments in various regions of the state, including, but not limited to, downtown areas served by this section.
An analysis of state resources needed to establish construction loans serving different housing projects described in subparagraph (D).
Recommendations to mitigate increased lending risk and maximize leverage of state funds.
Feedback and input from interested stakeholders, including, but not limited to, housing developers, labor groups, local governments, investors, insurers, and financial institutions.
Recommendations for implementation of a state construction loan program, including, but not limited to, actions that do not require legislation.
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 March 1, 2028, in compliance with Section 9795.
Pursuant to Section 10231.5, the requirement for submitting a report pursuant to this subdivision shall become inoperative on April 1, 2028.
This section does not limit the applicability of any local density bonus program, incentive-based zoning program, or other ministerial development standard.
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.
Statute text comes from the California Legislative Information page saved for this section; spacing and line breaks are normalized and every other character is reproduced as published. Check leginfo for any amendment made after the page was saved. Not legal advice.