CaliforniaAB 12752025-2026 Regular SessionHouseWALLET

Regional housing needs: regional transportation plan.

Sponsored By: Sade Elhawary (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

More public input on housing targets

At least 2.5 years before a housing element update, councils must draft their housing target method with the state housing department. Within six months before that work, they must survey cities and counties; if they do not, local governments can submit data directly. Councils must post the method, data, and weightings online, explain how each factor is used, and hold at least one public hearing. After public comment, they must post a draft and send it to the state for review. The state has 60 days to review; if it finds issues, councils must fix them within 45 days and get acceptance. If the state is late, councils may proceed; after adoption, councils must notify jurisdictions, post the resolution, and the state may review within 45 days.

Protect low-income housing targets and categories

Final regional plans must keep the total units by income group and give every city and county low‑ and very‑low‑income targets. Starting with the seventh cycle, targets also include extremely low and acutely low income groups. Extremely and acutely low targets must be close to the very low share, within 3 percentage points. The law bars cuts to a city’s share because of local permit caps, past underbuilding, or stable past population. The Department uses updated income‑group definitions beginning in the seventh cycle.

Stronger data and fair housing in housing targets

The law requires councils of governments to use more data when setting housing targets. They must look at low-wage jobs, rent burden, overcrowding, homelessness, farmworker needs, and homes lost in disasters. They must weigh water and sewer limits, climate risks, preserved lands, and land that could allow more homes with different zoning. CSU must provide campus enrollment forecasts and trip data, UC is requested to do so, and the Finance Department uses these forecasts in growth estimates. Councils must report fair housing barriers and take steps to affirmatively further fair housing.

Earlier schedules, CEQA shield, and objections

The state meets with councils earlier to plan housing targets: 26 to 38 months ahead, depending on the cycle. The state sets regional housing numbers at least 3 years before housing elements, with shorter windows for 2027 (2 years) and for 2028 and early 2029 (32 months), and 24 months for places without a council of governments. Two or more cities and a county can form a subregion at least 34 months before, and the council must set each subregion’s share at least 31 months before. Councils can object within 30 days on narrow grounds; the state must issue a final decision within 45 days. These housing-need decisions are exempt from CEQA, and final decisions are not reopened by later laws. The state may grant up to a 60‑day extension to use new Census or Finance data and must extend the housing‑element deadline by up to 60 days too.

Start dates, 2027 exceptions, and reimbursements

The new methodology rules take effect January 1, 2025. Councils with a 2027 due date keep the prior rules for that cycle. Some sections only apply if linked bills also become law by January 1, 2026, and in the order specified. If the state mandates new local costs, local agencies and school districts can be reimbursed under existing procedures.

Sponsors & Cosponsors

Sponsor

Sade Elhawary
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 237 • No: 0

House vote • 9/10/2025

Item 220 — Assembly AFLOOR

Yes: 79 • No: 0

Senate vote • 9/9/2025

Item 303 — Senate SFLOOR

Yes: 40 • No: 0

legislature vote • 7/1/2025

Vote in CS75

Yes: 11 • No: 0

House vote • 5/23/2025

Item 119 — Assembly AFLOOR

Yes: 71 • No: 0

legislature vote • 5/14/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 4/30/2025

Vote in CX15

Yes: 10 • No: 0

legislature vote • 4/24/2025

Vote in CX10