Focus
Governor Newsom signs controversial AB 98 regulating California warehouse development
CalMatters – September 30
Governor Gavin Newsom has signed a controversial bill – Assembly Bill (AB) 98 – that will impact all warehouse developments, regardless of whether there are any sensitive receptors near the potential warehouse site. Among other requirements, AB 98 establishes extensive setback requirements from sensitive receptors, stringent siting and design standards for industrial warehouses that cannot meet the setback requirements, and a 2-1 housing replacement obligation if dwelling units will be demolished. See our recent alert with more details regarding AB 98’s impact and requirements.
News
“Builder’s Remedy” reform bill approved by Governor Newsom
Allen Matkins – September 19
On September 19, 2024, Governor Gavin Newsom approved Assembly Bill 1893, which significantly modifies the “Builder’s Remedy” under the Housing Accountability Act, effective January 1, 2025. AB 1893 is an attempt to “modernize” the Builder’s Remedy by providing clarity to developers, local jurisdictions, and courts to avoid the “legal limbo” described by Attorney General Rob Bonta. As part of that compromise, specified requirements will be imposed on Builder’s Remedy projects, including a new “cap” on residential density where no codified limit currently exists. In return, the clarifications made by AB 1893 and the reduced affordability requirement for mixed-income projects could help prompt additional Builder’s Remedy projects in jurisdictions that have failed to comply with State Housing Element Law.
Governor Newsom approves key housing bill: AB 2243
Allen Matkins – September 19
On September 19, 2024, Governor Gavin Newsom approved Assembly Bill 2243 (Wicks), which amends AB 2011 (Affordable Housing and High Road Jobs Act of 2022), effective January 1, 2025. As explained in our prior legal alert, AB 2011 provides for “by right” streamlined ministerial (i.e., no CEQA) approval of qualifying mixed-income and affordable housing development projects along commercial corridors in zoning districts where office, retail, and/or parking uses are principally permitted. The amendments, among many others, include clarifying when AB 2011 projects must be approved and the applicable density requirement, how AB 2011 interacts with State Density Bonus Law and the California Coastal Act, and additional flexibility for projects within certain proximity to a freeway or industrial use.
New law expands multifamily ADU opportunities
Allen Matkins – September 24
Governor Gavin Newsom last Tuesday signed Senate Bill 1211 into law, significantly expanding multifamily ADU opportunities, effective January 1, 2025, including that multifamily projects will be able to by right build eight detached ADUs per parcel (previously only two). Senate Bill 1077 was also signed into law, which requires the California Coastal Commission to develop guidance for municipalities to use in drafting ADU elements of their Local Coastal Plan.
Newsom vetoes bill to fast-track office-to-housing conversions
San Francisco Chronicle – September 28
Developers hoping for a faster and easier path to converting empty office buildings to housing in California’s downtowns will have to wait for another legislative session after Governor Gavin Newsom vetoed a measure that would have fast-tracked such projects. Assembly Bill 3068 would have expedited adaptive reuse projects by mandating by-right approval for qualifying projects converting offices to residential or mixed-use in city centers.
Biden administration proposes expanding tax credits for EV charger installations
Smart Cities Dive – September 20
The Biden administration is proposing a new rule that aims to expand access to electric vehicle chargers, providing for individual tax credits up to $1,000 and business credits up to $100,000 for installation of clean transportation equipment across most of the country. The tax credits would only be available in low-income and non-urban census tract areas, making about two-thirds of the U.S. eligible for the incentives, the U.S. Department of the Treasury said. The rule expands on January guidance from the Treasury Department, allowing the tax credit to be accessed per individual charging port installed as opposed to a single credit for multi-port projects.
Updated Boyle Heights Community Plan promises more affordable housing, new zoning along L.A. River
Boyle Heights Beat – September 26
The Los Angeles City Council voted unanimously last Wednesday to adopt proposals to update the Boyle Heights Community Plan, a blueprint for the neighborhood’s growth. The update commits to addressing the housing needs of current and future residents and moves to update zoning regulations adjacent to the L.A. River and Pico-Aliso neighborhoods. It also moves to implement a series of amendments introduced by 14th District Councilmember Kevin de León that establish incentives for mixed-income projects that will require affordable housing.
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