California Lawmakers Pass Landmark Bill to Enhance Builder's Remedy

California's builder’s remedy provision, which simplifies development processes for certain affordable housing projects, is finally under legislative review. The California State Assembly recently passed a bill aimed at clarifying and structuring this provision for the first time since its inception in the 1990s.

Loss of Local Control

Builder’s remedy strips cities of their power to approve or reject housing plans meeting specific affordability criteria if they fail to get their housing plans approved by the state on time. This has left cities like Santa Monica, Malibu, and Beverly Hills vulnerable, leading to numerous lawsuits due to the lack of clarity around the provision.

Proposed Changes in AB 1893

If approved by the Senate and signed by Governor Gavin Newsom, the new bill, AB 1893, would lower the affordable housing requirement from 20 percent to 10 percent. Smaller projects with 10 or fewer units would be exempt from this requirement. Additionally, builder’s remedy would no longer apply to industrial zones.

Establishing Clear Guidelines

The bill aims to solidify builder’s remedy as a housing production tool and address the current disagreements among cities about its interpretation. It introduces limitations on density and sets standards for developers, ensuring that builder’s remedy projects can still exceed baseline zoning.

Support from Developers and Legislators

Developers embroiled in lawsuits over the provision welcome the legislative clarity. Developer Leo Pustilnikov highlighted the importance of making builder’s remedy applicable across all California communities, not just affluent ones.

Legislative and Legal Support

Assemblymember Buffy Wicks, known for her credibility in housing issues, sponsors the bill, significantly increasing its chances of passing. Attorney General Rob Bonta, who has been a staunch supporter of upholding builder’s remedy, also endorsed the bill earlier this year, emphasizing the need for clearer guidelines for all stakeholders involved.