September 2025 Legislative Update
2025 Legislative Recap: Where Our Housing Bills Stand
As of mid-September 2025, several of the priority housing bills HAC has sponsored and supported are moving, some have passed the Legislature and are headed to the Governor, and others need more work. Below is a status report on major bills that HAC prioritized in 2025.
Generally, this was the most productive pro-housing year in the legislature since 2017 with major CEQA and rezoning bills passing the legislature.
HAC-Sponsored Bills
SB 328 (Grayson) – DTSC Fee Cap
Status: Held in committee at our request.
Would have placed caps on the Department of Toxic Substances Control (DTSC) fees for housing and park projects, cutting costs for site cleanup and unlocking stalled infill sites.
SB 336 (Wiener) – Welfare Tax Exemption Expansion
Status: Held in committee.
Would have expanded the welfare tax exemption to include moderate-income rental housing (up to 120% AMI), supporting workforce housing for teachers, nurses, and other essential workers.
SB 607 (Wiener) – CEQA Restoration Act
Status: Incorporated into Budget Trailer Bills AB 130 and SB 131.
Provisions refining CEQA to prevent abuse and streamline approvals for infill housing were folded into budget legislation, ensuring the reforms advance as part of broader state housing and environmental policy.
SB 677 (Wiener) – Housing Permit Streamlining Omnibus
Status: Held in committee.
Would have strengthened and expanded provisions of SB 9 and SB 423 to increase effectiveness of streamlined housing approvals.
AB 1026 (Wilson) – Utility Connection Streamlining
Status: Passed Legislature – Awaiting Governor’s Signature.
Fixes costly and unpredictable utility connection delays by requiring timely processing and moving fee payments to the connection stage rather than upfront.
AB 610 (Alvarez) – Fair Housing Practices Act
Status: Passed Legislature – Awaiting Governor’s Signature.
Protects the integrity of certified Housing Elements by prohibiting cities from adding new housing constraints after certification, unless transparently disclosed and legally justified.
Other Key Housing & Climate Bills
SB 79 (Wiener) – Major Transit-Oriented Rezoning
Status: Passed Legislature – Awaiting Governor’s Signature.
SB 79 allows 4–7 story buildings within a half mile of major transit stops in eight “transit‑rich” counties: San Francisco, Santa Clara, Alameda, San Mateo, Sacramento, Los Angeles, Orange, and San Diego. After more than 100 amendments and years of advocacy, SB 79 is the most significant statewide upzoning bill in California’s history. The bill preempts local zoning in the specified areas to create zoning capacity for millions of homes near transit, and it includes demolition protections, inclusionary housing requirements, and other compromises that were necessary to secure the votes needed for passage. Now it awaits Governor Newsom’s signature.
SB 840 (Caballero) – Cap-and-Trade Reauthorization
Status: Passed Legislature – Awaiting Governor’s Signature.
One of six bills that reauthorizes California’s Cap-and-Trade program, which funds affordable housing and public transit through the Affordable Housing and Sustainable Communities Program and transit operations. HAC joined the coalition pushing to protect and expand these critical funds.
SB 1031 (Wiener & Arreguín) – Bay Area Transit Funding
Status: Passed Legislature – Awaiting Governor’s Signature.
Provides the Bay Area with tools to stabilize transit systems and prevent service cuts while protecting riders and workers. Complements Cap-and-Trade by creating a path for sustainable transit funding.
Looking Ahead
This session brought major progress, with several HAC-sponsored bills on the Governor’s desk. If signed, they will streamline housing approvals, strengthen Housing Element accountability, improve utility connections, expand affordability tools, and secure funding for housing and transit. We’ll continue to keep our members updated as the Governor takes action.
