New California Laws 2026
AB 130 - continued from page 63
likely to prevail in court. For statutory exemptions, a petitioner may only claim that the project failed to qualify for the exemption based on the checklist. It is irrelevant whether the project caused any potential significant environmental impact because there are no exceptions to statutory exemptions. CEQA litiga- tion often takes two to three years in the trial court and court of appeal, and the developer must pay both land carrying and financing costs in addition to legal fees for itself and the city. A reduction in litigation should directly increase the amount of private invest- ment in housing development projects. Other housing codes: AB 130 also included numerous other budget trailer bills, many of which support housing development. For example, the California Building Standards Commission updates the State Building Code every three years, and ar- chitects must often revise projects to comply with the new code, which increases the time and cost of development. AB 130 puts a moratorium on new State Housing Law and Building Code standards between Oct. 1, 2025, and June 1, 2031, with certain exceptions, to encourage completion of existing and proposed housing construction projects. AB 130 also modifies State law related to accessory dwelling units (ADU) by removing any local exemptions for pre-existing codes related to ADU development, and requiring all local governments to comply with state law standards for ADUs. In adopting AB 130, the legislature specifically ad- dressed the State’s housing crisis of availability and affordability, in large part due to a severe shortage of housing. It found that solving the crisis required an increased housing supply, incentives for develop- ment at all income levels, removing barriers to hous- ing production, and expanding availability of rental housing. By reducing the time and cost of planning entitlements and building permitting and the threat of litigation for housing projects, the legislature hopes to incentivize more private investment in and construction of affordable housing projects.
clearance and fire prevention access. (PRC §§4290, 4291, 51182, CBC §7A) This will allow housing devel- opment in urban Fire Zones, such as the non-hillside areas of Los Angeles, which can comply with the ac- cess and safety requirements. Also, if a property has an eligible historic resource that has not been placed on a register at the time of project application, it still qualifies for the CEQA exemption without additional historic assessment. Labor and other standards: AB 130 requires specif- ic labor standards, including payment of general pre- vailing wages (Labor Code §§1773 and 1773.9), and applicable apprentice prevailing wage for projects that: (i) are 100 percent affordable to lower income households; (ii) include buildings over 85 feet in height above grade, or; (iii) for projects of 50 units or greater in the City and County of San Francisco, with certain exceptions. AB 130 has additional standards, such as requiring central HVAC, providing specific standards for air filtration systems, and prohibiting balconies for projects within 500 feet of a freeway. AB130 also requires a Phase I environmental assess- ment, and subsequent hazardous material removal, but only as a condition of approval. Statutory exemption: AB 130 provides a statuto- ry CEQA exemption, which is an absolute exemption if the project complies with the checklist of qualifica- tions. This differs from a categorical exemption, ad- opted by the State Resources Agency, that is subject to certain exceptions, such as for unusual circum- stances or an eligible historic resource. The Class 32 CEQA exemption for infill development is most often used for housing development projects in urban ar- eas. However, it limits the property size to 5 acres and does not apply if there are unusual circumstanc- es on the property that cause potential significant en- vironmental impacts. The AB 130 CEQA exemption will now allow substantial housing developments on sites four times larger without being subject to ex- ceptions. Reduced litigation costs: AB 130 will likely sig- nificantly reduce the number of CEQA litigation cas- es brought by community opponents against these housing projects, because petitioners are much less
Sheri L. Bonstelle is a partner at Jeffer Mangels Butler & Mitchell LLP.
SB 131 - continued from page 87
community water systems; (vi) wildfire risk reduc- tion projects; (vii) linear broadband right of way; (viii) state climate adaptation strategy; (ix) public parks and recreational trails; (x) day care, health center, rural health clinic, nonprofit food bank, food pantry; and (xi) high-speed rail. These exemptions show the legislature’s priority to streamline review for key industries, infrastructure, outdoor recre- ation, and access to health and food services.
local jurisdictions should create standardized proce- dures for identifying types of conditions that qualify for single condition evaluation, draft implementation memoranda and provide checklists for evaluating these impacts. Additional CEQA exemptions. SB131 also ad- opted numerous additional CEQA exemptions (PRC §21080) including: (i) advanced manufacturing, which includes manufacturing facilities involving semiconductors, advanced materials, engineering and others; (ii) rezoning consistent with an adopt- ed Housing Element; (iii) farmworker housing; (iv) small, disadvantaged water and sewer systems; (v)
Sheri L. Bonstelle is a partner at Jeffer Mangels Butler & Mitchell LLP.
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