2025 Legislative Package (June Update)
As the California State Legislature advances through committee hearings and floor votes, the Housing Action Coalition (HAC) is actively tracking and advocating for six crucial bills that form our 2025 housing legislation package. These bills are aimed at reducing regulatory barriers, accelerating housing production, and holding agencies accountable. Below is an update on where each stands as of the end of May.
AB 610 (Alvarez) – The Housing Constraints Accountability Act
Status: Passed Assembly Appropriations; awaiting Assembly Floor vote.
This bill strengthens the Housing Element Law by requiring jurisdictions to publish a “Governmental Constraints Disclosure Statement” identifying any local laws or policies that hinder housing development. Jurisdictions would be barred from introducing new constraints not disclosed in their Housing Element for three years unless legally required. AB 610 enhances transparency and provides an enforcement mechanism for state housing law compliance.
Analysis: Housing Elements have been a critical opportunity to promote strong, pro-housing policies. AB 610 is a good government reform that will hold cities accountable for creating a housing policy landscape that incentivizes new development rather than constrains it.
AB 1026 (Wilson) – Holding Utilities Accountable
Status: Passed the Assembly Floor; now in the Senate.
AB 1026 addresses growing delays in housing construction caused by investor-owned utilities (IOUs). The bill now aligns with the California Public Utility Commission (CPUC) order from earlier this year and requires (1) a set of information to approve or deny an application, and (2) to make publicly available an example of a complete, approved application for a housing development project. It also creates a process for an applicant to appeal a decision if their application is determined to be incomplete.
Analysis: We understand that a lack of efficiency and transparency from Investor-Owned Utilities (IOUs) presents a challenge in the homebuilding process. This reform builds on the recent CPUC order to help create a more seamless relationship between IOUs and homebuilders.
SB 328 (Grayson) – Reforming DTSC Fees for Infill Housing
Status: Passed the Senate Floor; now in the Assembly.
This bill caps the Department of Toxic Substances Control (DTSC) hazardous waste fees for infill housing, nonprofit, and park/open space developments—$100,000 for standard projects and $250,000 for master development projects. It also requires DTSC to adhere to fixed timelines when responding to post-entitlement permit applications.
Analysis: SB 328 is designed to reduce the costs and uncertainties for builders developing on brownfield sites. Ultimately, this bill should help alleviate the financial burden and allow more projects across the state to pencil.
SB 336 (Wiener) – Expanding the Welfare Property Tax Exemption
Status: Held in the Senate Appropriations Committee.
SB 336 proposed extending California’s Welfare Property Tax Exemption to cover moderate-income rental housing developments that meet affordability requirements. The current exemption only applies to lower-income households.
Analysis: SB 336 would have made more mixed-income projects financially viable, but it was held in committee and will not advance this session. While we are disappointed this didn’t advance, we remain committed to creating tools to make building missing middle-income housing easier and more financially viable.
SB 607 (Wiener) – Improving CEQA for Infill Projects
Status: Significantly amended; now part of state budget negotiations.
SB 607 was amended in the Senate Appropriations Committee. This is partly because Governor Gavin Newsom unexpectedly came out in support of the bill, expressing that CEQA reform was a top priority for California. As a result, the bill will be negotiated with the Governor and leadership from the Assembly and Senate, rather than going through the typical legislative process.
Analysis: Originally a broad reform bill, the scope of SB 607 has been narrowed as the policy is now being considered within the context of state budget negotiations. The intent of the bill remains the same: to prevent CEQA abuse and help housing, clean energy, transportation, and other essential infrastructure projects.
SB 677 (Wiener) – Housing Permit Streamlining Omnibus Bill
Status: Died in Senate Housing Committee; may return as a two-year bill.
Analysis: SB 677 was designed as a technical cleanup and enhancement to key streamlining statutes like SB 35/423 and SB 9. While SB 423 and SB 9 are landmark bills that represent significant pro-housing progress, there have been road bumps in implementing them effectively. SB 677 aimed to ensure these laws live up to their potential and are effectively implemented across jurisdictions.
Although the bill failed to advance out of committee, HAC and our allies will consider pursuing it again in the 2026 session.
