2025 Legislation Package
With much uncertainty at the federal level when it comes to housing and the impacts of the new administration’s policies, HAC continues to move forward at the state level with legislation to make it easier to build housing.
California continues to grapple with a deepening housing affordability and displacement crisis, and the conditions are still difficult for the housing development that we need.That’s why the Housing Action Coalition (HAC) is proud to sponsor a robust package of pro-housing legislation for the 2025 legislative session, focused on our core policy areas.
Our bills aim to streamline housing development, reduce unnecessary costs, improve feasibility, and ensure that existing pro-housing laws are implemented as effectively as possible. Working alongside a broad coalition of partners and policymakers, we’re pushing forward six transformative measures that tackle different facets of California’s housing production challenges.
Here’s a closer look at what we’re sponsoring this year:
Senate Bill 328: Reforming DTSC Fees for Housing Projects
Author: Senator Grayson, co-sponsored with SPUR
HAC policy focus area: Fee reform
SB 328 seeks to make it more financially feasible to clean up contaminated sites for housing by reforming the Department of Toxic Substances Control (DTSC) Generation and Handling Fee. These fees can often be a major barrier to redevelopment of urban infill land, particularly for affordable or nonprofit projects. This bill helps unlock more underutilized land for housing by reducing the cost of environmental remediation.
What this bill does:
Caps the Generation and Handling Fee at $100,000 for qualifying housing projects, nonprofit developments, and park/open space uses.
Caps the fee at $250,000 for larger-scale residential projects.
Senate Bill 336: Expanding the Welfare Tax Exemption to Moderate-Income Housing
Author: Senator Wiener, co-sponsored by San Francisco Mayor Daniel Lurie
HAC policy focus area: Fee reform
SB 336 expands an important property tax exemption to include moderate-income housing (up to 120% of Area Median Income). This bill supports “missing middle” housing for essential workers like teachers, nurses, and first responders who are often priced out of both market-rate and affordable housing.
What this bill does:
Provides full property tax exemption for moderate-income rental units.
Improves financial feasibility of workforce housing developments.
Special thanks to HAC member Enrique Landa for helping advance this impactful proposal.
Senate Bill 607: CEQA Restoration Act
Author: Senator Wiener, co-sponsored by Bay Area Council, Rural County Representatives of California, and Prosperity California
HAC policy focus area: Process reform (streamlining)
SB 607 refines the California Environmental Quality Act (CEQA) – the “law that swallowed California” – to better focus environmental review on real environmental risks so it can’t be used as a tool to delay or block housing. This legislation strikes a balance between environmental protection and housing progress, reducing delay without sacrificing oversight.
What this bill does:
Targets CEQA review to issues with true environmental impacts.
Streamlines reviews for urban infill housing projects.
Exempts rezonings aligned with compliant Housing Elements from CEQA review.
Senate Bill 677: Housing Permit Streamlining Omnibus
Author: Senator Wiener, co-sponsored by California YIMBY and LISC San Diego
HAC policy focus area: Process reform (streamlining)
Building on prior wins like SB 9 and SB 423, SB 677 strengthens implementation of California’s most important streamlining laws by making sure they work better on the ground – helping get more homes built, faster.
What this bill does:
Prevents homeowner associations (HOAs) from blocking SB 9 duplex/lot-split projects.
Reduces owner-occupancy requirements that limit SB 9’s effectiveness.
Improves environmental eligibility standards for streamlined projects.
Increases SB 423 monitoring frequency from every 4 years to every 2 years, improving accountability in noncompliant jurisdictions.
Assembly Bill 1026: Utility Connection Streamlining
Author: Assemblymember Wilson
HAC policy focus area: Process reform (streamlining), fee reform
AB 1026 addresses a common but frustrating delay in housing delivery: utility service connections. Even after projects are approved, housing can be stalled waiting for utilities. By improving the post-entitlement phase, this bill helps get housing delivered faster and more predictably.
What this bill does:
Establishes clear timelines for application processing by utility providers.
Requires fees to be paid at the time of connection, not upfront during application.
Assembly Bill 610: Fair Housing Practices Act
Author: Assemblymember Alvarez, co-sponsored by California Building Industry Association and SPUR
HAC policy focus area: Planning/Building Code, process reform
AB 610 strengthens Housing Element law by ensuring local governments are transparent and accountable when it comes to new housing regulations. AB 610 ensures that cities can’t undermine certified Housing Elements with new hidden fees, delays, or restrictions. This is a critical step toward accountability and Housing Element integrity.
What this bill does:
Prohibits local jurisdictions from imposing new housing constraints after their Housing Element is certified by HCD unless those policies were disclosed in the original constraints analysis.
If new constraints are disclosed post-certification, local governments cannot allocate resources to implement them until they’ve fulfilled their prior commitments to reduce housing barriers.
Limited exceptions only apply in emergency situations (e.g., public health or new state/federal requirements).
The Housing Action Coalition is proud to lead the charge on these practical, high-impact solutions that unlock more housing for people at all income levels by making it easier to build.
We’ll be working hard in the months ahead to generate broad support for this legislative package, and we’ll need your help. Stay tuned for action alerts, advocacy opportunities, and updates as these bills move through the Capitol.
