CaliforniaAB 872025-2026 Regular SessionHouseWALLET

Housing development: density bonuses.

Sponsored By: Tasha Boerner (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 8 benefits, 0 costs, 3 mixed.

Long‑term affordability and resale rules

Affordable rental units must stay affordable for at least 55 years, or longer if funding requires it. Rents for lower‑income units must meet state “affordable rent” rules; in 100% lower‑income projects, at least 20% of units use affordable rents and the rest follow the state tax‑credit rent limits. For‑sale affordable homes must be sold first to income‑qualified buyers at affordable cost. If a for‑sale unit is not sold and occupied within 180 days, a qualified California nonprofit must buy it. Equity‑sharing rules apply at resale, and local governments must recapture subsidies and reuse them for home‑ownership programs within five years.

Lower parking rules for housing

At the applicant’s request, parking caps apply: 1 space for 0–1 bedrooms, 1.5 for 2–3 bedrooms, and 2.5 for 4+ bedrooms; student bedspaces can have zero. Near major transit and with higher affordable shares, the cap can drop to 0.5 spaces per unit (or per bedroom in some cases). Tandem and uncovered spaces count, but on‑street parking does not, and fractional spaces round up. A city may require more only if a recent areawide study supports it and the city pays for the study.

Bigger bonuses for affordable projects

The law grants a density bonus when a project sets aside homes for low‑income groups (for example, 10% lower‑income, 5% very‑low‑income, seniors, or 100% lower‑income). Cities must also grant 1–5 cost‑saving incentives and approve waivers of rules that would physically block the project, unless they make rare, evidence‑based safety, historic, or legal findings. Student housing that reserves at least 20%/23% for lower‑income students gets 1/2 incentives; for‑sale projects with at least 16% very‑low‑income or 45% moderate‑income buyers get four. High‑affordability projects near major transit can add up to three stories (or 33 feet); fully lower‑income projects get five incentives and an 80% density bonus, and in some transit/very‑low‑travel areas, no maximum density applies. Going deeper on affordability can earn an extra targeted bonus (e.g., 24% lower‑income, 15% very‑low‑income, or 44% moderate‑income), but no more than 50% of the homes may be income‑restricted for this add‑on. Asking for a waiver does not change how many incentives you get.

Clear rules for counting units

A density bonus is a percent increase over the site’s maximum allowed homes. Base and bonus unit counts that produce fractions are each rounded up to the next whole unit. Granting a bonus does not by itself require plan or zoning changes. These rules make final unit counts predictable.

Extra bonus for land or childcare

Donating developable land that can support very‑low‑income homes equal to at least 10% of the project earns a 15% density increase. This stacks with other bonuses up to a 35% combined cap, if timing, zoning, permit, and affordability deed rules are met. If the project includes on‑site or adjacent childcare, the city must give extra residential space at least equal to the childcare’s size or another concession that makes the childcare pencil out. The childcare must stay open for at least the affordable‑housing term and must reserve slots for low‑ and moderate‑income families. A city can deny the extra childcare boost only if it shows the community already has adequate childcare.

Faster approvals and stronger enforcement

Cities and counties must adopt local ordinances to carry out the state density bonus law and process applications quickly. They must list required documents, give timely completeness notices, and state the eligible bonus and parking ratios once an application is complete. They cannot demand extra reports beyond what state law requires, and the applicant chooses which affordability path is used to calculate the bonus. If a city unlawfully refuses a bonus, incentive, or waiver, courts must award the applicant reasonable attorney’s fees, and the city bears the burden of proof. The law is read in favor of maximizing housing production.

More projects qualify, including shared homes

Housing developments include projects with 5 or more homes, mixed‑use, certain subdivisions, and conversions that add homes. Contiguous sites under one application can be counted together, and bonus units can be placed in other parts of the project. For shared housing, cities cannot impose minimum unit or bedroom sizes that conflict with the law’s shared‑housing rules. The law also defines key terms used to apply bonuses, parking, and other rules.

Protects existing affordable rentals

A project on a site with rent‑controlled, income‑restricted, or lower‑income rentals in the past five years is not eligible unless those homes are replaced. Replacement must match the number of units and bedroom sizes, and the new rentals must carry at least 55 years of recorded affordability. Fractional replacement counts round up.

Density bonuses must follow Coastal Act

Nothing in this law overrides the California Coastal Act. In the coastal zone, cities must apply density bonuses, concessions, waivers, and parking relief only in ways that comply with the Coastal Act. Coastal permits and resource protections still apply. Housing incentives remain available if they meet coastal rules.

Local flexibility and new guardrails

Cities may choose to grant bigger bonuses than state minimums in their local rules, and places with stronger pre‑2021 bonus ordinances can keep them. However, cities do not have to grant concessions for transient lodging like hotels, and a concession cannot raise commercial floor area beyond 2.5× the base zone after January 1, 2026 (projects filed earlier are exempt).

Some changes depend on SB 92 law

Section 1.5 takes effect only if this law and SB 92 are both effective by January 1, 2026. Both must change Government Code section 65915, and this law must be enacted after SB 92. If that happens, Section 1 does not take effect.

Sponsors & Cosponsors

Sponsor

  • Tasha Boerner

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 228 • No: 1

House vote 9/3/2025

Item 111 — Assembly AFLOOR

Yes: 77 • No: 0

Senate vote 9/2/2025

Item 382 — Senate SFLOOR

Yes: 40 • No: 0

legislature vote 7/9/2025

Vote in CS82

Yes: 7 • No: 0

legislature vote 6/24/2025

Vote in CS75

Yes: 10 • No: 1

House vote 5/12/2025

Item 63 — Assembly AFLOOR

Yes: 75 • No: 0

legislature vote 4/30/2025

Vote in CX15

Yes: 9 • No: 0

legislature vote 4/24/2025

Vote in CX10

Yes: 10 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 486, Statutes of 2025.

    10/10/2025Senate
  2. Approved by the Governor.

    10/10/2025legislature
  3. Enrolled and presented to the Governor at 3 p.m.

    9/9/2025legislature
  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 2855.).

    9/3/2025House
  5. In Assembly. Concurrence in Senate amendments pending.

    9/2/2025House
  6. Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2398.).

    9/2/2025Senate
  7. Read second time. Ordered to third reading.

    8/28/2025Senate
  8. Read third time and amended. Ordered to second reading.

    8/27/2025Senate
  9. Read second time and amended. Ordered to third reading.

    7/10/2025Senate
  10. From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (July 9).

    7/9/2025Senate
  11. From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 10. Noes 1.) (June 24). Re-referred to Com. on L. GOV.

    6/25/2025Senate
  12. Referred to Coms. on HOUSING and L. GOV.

    5/21/2025Senate
  13. In Senate. Read first time. To Com. on RLS. for assignment.

    5/13/2025Senate
  14. Read third time. Passed. Ordered to the Senate. (Ayes 75. Noes 0. Page 1513.)

    5/12/2025House
  15. Read second time. Ordered to third reading.

    5/5/2025House
  16. From committee: Do pass. (Ayes 9. Noes 0.) (April 30).

    5/1/2025House
  17. Re-referred to Com. on L. GOV.

    4/28/2025House
  18. (Pending re-refer to Com. on L. GOV.)

    4/24/2025House
  19. Assembly Rule 56 suspended. (Page 1265.)

    4/24/2025House
  20. From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

    4/24/2025House
  21. From committee: Do pass and re-refer to Com. on L. GOV. (Ayes 10. Noes 0.) (April 24). Re-referred to Com. on L. GOV.

    4/24/2025House
  22. Re-referred to Com. on H. & C.D.

    3/18/2025House
  23. From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

    3/17/2025House
  24. Referred to Coms. on H. & C.D. and L. GOV.

    3/17/2025House
  25. From printer. May be heard in committee February 6.

    1/7/2025House

Bill Text

  • Chaptered

    10/10/2025

  • Enrolled

    9/5/2025

  • Amended Senate

    8/27/2025

  • Amended Senate

    7/10/2025

  • Amended Assembly

    4/24/2025

  • Amended Assembly

    3/17/2025

  • Introduced

    1/6/2025

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