Amended  IN  Assembly  March 19, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2243

Introduced by Assembly Member Wicks

February 08, 2024

An act to amend Section 65912.121 Sections 65912.101, 65912.111, 65912.112, 65912.113, 65912.114, 65912.121, 65912.122, 65912.123, and 65912.124 of the Government Code, relating to housing.


LEGISLATIVE COUNSEL'S DIGEST


AB 2243, as amended, Wicks. Affordable housing developments. Affordable Housing and High Road Jobs Act of 2022: objective standards and affordability and site criteria.
(1) Existing law, the Affordable Housing and High Road Jobs Act of 2022, until January 1, 2033, authorizes a development proponent to submit an application for an affordable housing development or a mixed-income housing development that meets specified objective standards and affordability and site criteria, including being located within a zone where office, retail, or parking are a principally permitted use. The act makes a development that meets those objective standards and affordability and site criteria a use by right and subject to one of 2 streamlined, ministerial review processes depending on, among other things, the affordability requirements applicable to the project.
This bill would make various changes to the objective standards and affordability and site criteria applicable to an affordable housing development or mixed-income housing development subject to the streamlined, ministerial review process under the act. Among other changes to those objective standards, the bill would prohibit an affordable housing development subject to the act from demolishing a historic structure that was placed on a national, state, or local historic register.
(2) The act prohibits a housing development from being subject to the streamlined, ministerial approval process if it is located on a site or adjoined to a site where more than 1/3 of the square footage is dedicated to industrial use in the latest version of a local government’s general plan adopted before January 1, 2022.
This bill would instead prohibit a housing development from being subject to the streamlined, ministerial approval process if it was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022, and either residential uses are not principally permitted on the site or the site is not adjoining a parcel with a residential use.
Existing law prohibits a housing development from being subject to the streamlined, ministerial approval process if it is located within 500 feet of a freeway or within 3,200 feet of a facility that actively extracts or refines oil or natural gas.
This bill would authorize those housing developments to be subject to the streamlined, ministerial approval process, provided that habitable areas of the building provide air filtration media for outside and return air that provide a minimum efficiency reporting value of 13, as specified.
(3) The act requires a mixed-income housing development subject to the streamlined, ministerial review process to be located on a site that abuts a commercial corridor and has a frontage along the commercial corridor of a minimum of 50 feet.
This bill would, alternatively, allow a mixed-income housing development to instead be located on a site that is an existing office building. The bill would prohibit a local government from imposing any density limitation on a mixed-income development project that is a conversion of existing buildings into residential use, except as specified.
The act prohibits a mixed-income housing development subject to the streamlined, ministerial review process from being located on a site greater than 20 acres.
This bill, if the mixed-income housing development is located on a site that is a regional mall, as defined, would prohibit the development from being located on a site greater than 100 acres.
The act requires a mixed-income housing development subject to the streamlined, ministerial review process to meet specified affordability criteria. In this regard, the act requires a rental housing development to include either 8% of the units for very low income households and 5% of the units for extremely low income households or 15% of the units for lower income households. In the case of an owner-occupied housing development, the act requires either 30% of the units be offered to moderate-income households or 15% of the units be offered to lower income households.
This bill would clarify that those affordability thresholds apply only to the base units of the housing development project and excludes units added by a density bonus.
(4) Existing law defines various terms for purposes of the act. The act defines “use by right” to mean that the development is not subject to a conditional use permit or other discretionary local government review and the development project is not a “project” for purposes of the California Environmental Quality Act.
This bill would revise various definitions for purposes of the act. The bill would clarify that “use by right” means that the development project is not subject to a conditional use permit or any other discretionary local government approval, permit, or review process and no aspect of the development project is a “project” for purposes of the California Environmental Quality Act.
Existing law requires at least 75% of the perimeter of the housing development site to be adjoined with parcels that are developed with urban uses in order to be subject to the act. The act defines “urban uses” to include any current or former residential, commercial, public institutional, transit or transportation passenger facility, or retail use.
This bill would include a public park that is surrounded by other urban uses as an “urban use.”
(5) Existing law requires a local government that determines a housing development project is in conflict with any of the standards established in the act to provide the development proponent written documentation of the standards with which the development conflicts within 60 days or 90 days of the submittal of the development proposal, depending on the number of housing units.
This bill would require a local government to determine whether a development is consistent or inconsistent with the act within 30 days of submittal of a development proposal that was resubmitted to address written feedback. The bill, after the local government determines that a development is consistent with the objective planning standards of the act, would require a local government to approve a development within 90 days or within 180 days, depending on the number of housing units.
(6) The act authorizes a local government, by ordinance, to exempt parcels from the act if the local government makes specified written findings, including that the local government identifies another parcel that meets the requirements of the act and that the substitution of parcels will result in no net loss of the total residential capacity in the jurisdiction.
This bill would additionally require the local government to designate the exempted parcels and identify the reclassified parcels on its zoning maps, as specified.
(7) The bill would make various other clarifying and technical changes.
(8) Because the bill would impose various new requirements on local governments reviewing and approving affordable housing developments and mixed-income housing developments under the act, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law, the Affordable Housing and High Road Jobs Act of 2022, until January 1, 2033, establishes a streamlined development process for affordable housing developments that meet specified objective standards, affordability, and site criteria. Existing law, with respect to mixed-income housing developments along commercial corridors, prohibits a development project from being subject to the streamlined, ministerial review process unless it meets all of specified criteria, including being located in a zone where office, retail, or parking are principally permitted uses.

This bill would make nonsubstantive changes to those provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 65912.101 of the Government Code is amended to read:

65912.101.
 For purposes of this chapter, the following terms have the following meanings: chapter:
(a) “Base units” has the same meaning as “total units” as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915.

(a)

(b) “Commercial corridor” means a highway, as defined in Section 360 of the Vehicle Code, highway that is not a freeway, as defined in Section 332 of the Vehicle Code, freeway and that has a either of the following:
(1) For parcels in which any part of the parcel is zoned for a height limit of less than 65 feet, a right-of-way of at least 70 and not greater than 150 feet.
(2) For any other parcel not subject to paragraph (1), a right-of-way of at least 50 and not greater than 150 feet.

(b)

(c) “Development proponent” means a developer who submits a housing development project application to a local government under the streamlined, ministerial review process pursuant to this chapter.

(c)

(d) “Extremely low income households” has the same meaning as defined in Section 50106 of the Health and Safety Code.
(e) “Freeway” has the same meaning as defined in Section 332 of the Vehicle Code, except it does not include the portion of a freeway that is an onramp or offramp that serves as a connector between the freeway and other roadways that are not freeways.

(d)

(f) “Health care expenditures” include contributions under Sections 501(c) or (d) or 401(a) of the Internal Revenue Code and payments toward “medical care” as defined under Section 213(d)(1) of the Internal Revenue Code.
(g) “Highway” has the same meaning as defined in Section 360 of the Vehicle Code, and includes sidewalks, as defined in Section 555 of the Vehicle Code.

(e)

(h) “Housing development project” has the same meaning as defined in Section 65589.5.

(f)

(i) “Industrial use” means utilities, manufacturing, transportation storage and maintenance facilities, and warehousing uses. uses, and any other use that is a source that is subject to permitting by a district, as defined in Section 39025 of the Health and Safety Code, pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code or the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.). “Industrial use” does not include power any of the following:
(1) Power substations or utility conveyances such as power lines, broadband wires, and pipes.
(2) A use where the only source permitted by a district is an emergency backup generator.
(3) Self-storage for the residents of a building.

(g)

(j) “Local affordable housing requirement” means either of the following:
(1) A local government requirement, as a condition of development of residential units, that a housing development project include a certain percentage of units affordable to, and occupied by, extremely low, very low, lower, or moderate-income households as a condition of development of residential units.
(2) A local government requirement allowing a housing development project to be a use by right if the project includes a certain percentage of units affordable to, and occupied by, extremely low, very low, lower, or moderate-income households as a condition of development of residential units.

(h)

(k) “Local government” means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county.

(i)

(l) “Lower income households” has the same meaning as defined in Section 50079.5 of the Health and Safety Code.

(j)

(m) “Major transit stop” has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(n) “Minimum efficiency reporting value” or “MERV” means the measurement scale developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers used to report the effectiveness of air filters.

(k)

(o) “Moderate-income households” means households of persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code.

(l)

(p) “Multifamily” means a property with five or more housing units for sale or for rent.

(m)

(q) “Neighborhood plan” means a specific plan adopted pursuant to Article 8 (commencing with Section 65450) of Chapter 3, or an area plan, precise plan, community plan, urban village plan, or master plan that has been adopted by a local government. plan. To qualify as a neighborhood plan, the plan must have been adopted by a local government before January 1, 2024, and within 25 years of the date that a development proponent submits an application pursuant to this chapter. a neighborhood plan does not include a community plan or plans where the cumulative area covered by the community plans in the jurisdiction is more than one-half of the area of the jurisdiction.

(n)

(r) “Principally permitted use” means a use that that, as of January 1, 2023, or thereafter, may occupy more than one-third of the square footage of designated use on the site and does not require a conditional use permit. permit, except that parking uses are considered principally permitted whether or not they require a conditional use permit.
(s) “Regional mall” means a site that meets all of the following criteria on the date that a development proponent submits an application pursuant to this chapter:
(1) The permitted uses on the site include at least 250,000 square feet of retail use.
(2) At least two-thirds of the permitted uses on the site are retail uses.
(3) At least two of the permitted retail uses on the site are at least 10,000 square feet.

(o)“Side street” means a highway, as defined in Section 360 of the Vehicle Code, that is not a freeway, as defined in Section 332 of the Vehicle Code, and that has a right-of-way of at least 25 and fewer than 70 feet.

(p)

(t) “Urban uses” means any current or former residential, commercial, public institutional, public park that is surrounded by other urban uses, transit or transportation passenger facility, or retail use, or any combination of those uses.

(q)

(u) “Use by right” means a development project that satisfies both of the following conditions: for which both of the following are true:
(1) The development project does not require is not subject to a conditional use permit, planned unit development permit, or any other discretionary local government review. approval, permit, or review process.
(2) The No aspect of the development project is not a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.

(r)

(v) “Very low income households” has the same meaning as defined in Section 50105 of the Health and Safety Code.

SEC. 2.

 Section 65912.111 of the Government Code is amended to read:

65912.111.
 A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.114 unless the development is proposed to be located on a site that satisfies all of the following criteria:
(a) It is located in a zone where office, retail, or parking are a principally permitted use.
(b) It is a legal parcel or parcels that meet either of the following:
(1) It is within a city where the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau.
(2) It is in an unincorporated area, and the legal parcel or parcels are wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(c) At least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For purposes of this subdivision, parcels that are only separated by a street or highway street, highway, pedestrian path, or bicycle path shall be considered to be adjoined.
(d) (1) It is not on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use.
(2) For purposes of this subdivision, parcels only separated by a street or highway shall be considered to be adjoined.
(3) For purposes of this subdivision, “dedicated to industrial use” means any of the following:
(A) The square footage is currently being used as an industrial use.
(B) The most recently permitted use of the square footage is an industrial use. use, and the site has not been occupied within the past three years.
(C) The site was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022. 2022, and meets either of the following conditions:
(i) Residential uses are not principally permitted on the site.
(ii) The site is not adjoining a parcel with a residential use.
(e) It satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. 65913.4, exclusive of clause (iv) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 65913.4.
(f) The development is not located on a site where either of the following apply:
(1) The development would require the demolition of a historic structure that was placed on a national, state, or local historic register.

(f)It is not an

(2) The existing parcel of land or site that is governed under the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational Vehicle Park Occupancy Law (Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), or the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code).
(g) For a site within a neighborhood plan area, the site satisfies either of the following conditions:
(1)As of January 1, 2022, there was a the neighborhood plan applicable to the site that permitted multifamily housing development on the site.

(2)As of January 1, 2024, there was a neighborhood plan applicable to the site that permitted multifamily housing development on the site and all of the following occurred:

(A)A notice of preparation for the neighborhood plan was issued before January 1, 2022, pursuant to the requirements of Sections 21080.4 and 21092 of the Public Resources Code.

(B)The neighborhood plan was adopted on or after January 1, 2022, and before January 1, 2024.

(C)The environmental review for the neighborhood plan was completed before January 1, 2024.

(h) For a vacant site, the site satisfies both of the following:
(1) It does not contain tribal cultural resources, as defined by Section 21074 of the Public Resources Code, that could be affected by the development that were found pursuant to a consultation as described by Section 21080.3.1 of the Public Resources Code and the effects of which cannot be mitigated pursuant to the process described in Section 21080.3.2 of the Public Resources Code.
(2) It is not within a very high fire hazard severity zone, as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code or as designated pursuant to subdivisions (a) and (b) of Section 51179.

SEC. 3.

 Section 65912.112 of the Government Code is amended to read:

65912.112.
 A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.114 unless the new units created by the development proposal meets project meet all of the following affordability criteria:
(a) One hundred percent of the units within the development project, excluding managers’ units, shall be dedicated to lower income households at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee.
(b) The units shall be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.

SEC. 4.

 Section 65912.113 of the Government Code is amended to read:

65912.113.
 A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.114 unless the development proposal meets all of the following objective development standards:
(a) The development shall be a multifamily housing development project.
(b) The residential density for the development will meet or exceed the applicable density deemed appropriate to accommodate housing for lower income households in that jurisdiction as specified in paragraph (3) of subdivision (c) of Section 65583.2.

(c)(1)The development proponent shall complete a phase I environmental assessment, as defined in Section 78090 of the Health and Safety Code.

(2)If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.

(A)If a release of a hazardous substance is found to exist on the site, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.

(B)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.

(d)None of the

(c) For any housing on the site is located within 500 feet of a freeway, as defined in Section 332 of the Vehicle Code. habitable areas of the building shall provide air filtration media for outside and return air that provide a minimum efficiency reporting value of 13.

(e)None of the

(d) For any housing on the site is located within 3,200 feet of a facility that actively extracts or refines oil or natural gas. gas, habitable areas of the building shall provide air filtration media for outside and return air that provide a minimum efficiency reporting value of 13.

(f)

(e) The development will meet the following objective zoning standards, objective subdivision standards, and objective design review standards:
(1) The applicable objective standards shall be those for the zone that allows residential use at a greater density between the following:
(A) The existing zoning designation for the parcel if existing zoning allows multifamily residential use.
(B) The zoning designation for the closest parcel that allows residential use at a density that meets the requirements of subdivision (b).
(2) The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this article.
(f) For any project that is the conversion of the use of an existing nonresidential use building to residential use, the local government shall not require the provision of common open space beyond what is already existing on the project site.
(g) For purposes of this section, “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances, subject to the following:
(1) A development shall be deemed consistent with the objective zoning standards related to housing density, as applicable, if the density proposed is compliant with the maximum density allowed within that land use designation, notwithstanding any specified maximum unit allocation that may result in fewer units of housing being permitted.
(2) In the event that objective zoning, general plan, subdivision, or design review standards are mutually inconsistent, a development shall be deemed consistent with the objective zoning and subdivision standards pursuant to this section if the development is consistent with the standards set forth in the general plan.

SEC. 5.

 Section 65912.114 of the Government Code is amended to read:

65912.114.
 (a) (1) If the A local government determines that shall determine whether a development submitted pursuant to this article is consistent or inconsistent with the objective planning standards specified in this article, it shall approve the development. article within the following timeframes:
(A) Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B) Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(C) Within 30 days of submittal of any development proposal that was resubmitted to address written feedback provided by the local government pursuant to paragraph (2).
(2) If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which proponent, in writing, with an exhaustive list of the standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes: timeframes specified in paragraph (1).

(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.

(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.

(3) Once the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development within the following timeframes:
(A) Within 90 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B) Within 180 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.

(b)

(4) If the local government fails to provide the required documentation pursuant to subdivision (a), paragraph (2), the development shall be deemed to satisfy the required objective planning standards.

(c)

(b) (1) For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2) For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.

(d)

(c) The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a “project” as defined in Section 21065 of the Public Resources Code.

(e)

(d) Design review of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. design review. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable: section.

(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.

(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.

(e) If a development is located within an area of the coastal zone that is not excluded under paragraph (6) of subdivision (a) of Section 65913.4, the development shall require a coastal development permit pursuant to Chapter 7 (commencing with Section 30600) of Division 20 of the Public Resources Code. A public agency with coastal development permitting authority shall approve a coastal development permit if it determines that the development is consistent with all objective standards of the local government’s certified local coastal program or, for areas that are not subject to a fully certified local coastal program, the certified land use plan of that area.
(f) (1) A development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
(2) The utilization by a development proponent of incentives, concessions, and waivers or reductions of development standards allowed pursuant to Section 65915 shall not cause the project to be subject to a local discretionary government review process, or be considered a “project” under Division 13 (commencing with Section 21000) of the Public Resources Code, even if that incentive, concession, or waiver or reduction of development standards is not specified in a local ordinance.
(3) For purposes of this section, receipt of any density bonus, concession, incentive, waiver or reduction of development standards, and parking ratios to which the applicant is entitled under Section 65915 shall not constitute a basis to find the project inconsistent with the local coastal program.
(g) Any fee, as defined in Section 66000, imposed on a development proposed pursuant to this article shall be entitled to a credit for existing uses that are demolished as part of the development at the rate established by the local government for those existing uses.

(g)

(h) The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.

(h)

(i) If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(i)

(j) A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1) The local government has identified one or more parcels that meet the criteria described in subdivisions (b) through (f) of Section 65912.111.
(2) (A) If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as “land suitable for residential development,” as defined in Section 65583.2.
(B) If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.113.
(3) The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A) No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B) No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C) Affirmative furthering of fair housing.
(4) A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local government’s charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local government’s charter, general plan, or ordinances.
(5) The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(6) The local government has designated on its zoning maps which parcels have been exempted from this chapter and which parcels have been reclassified for development pursuant to this chapter. This information shall be made publicly available through the local government’s internet website.
(k) (1) The local government shall, as a condition of approval of the development, require the development proponent to complete a phase I environmental assessment, as defined in Section 78090 of the Health and Safety Code.
(2) If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(A) If a release of a hazardous substance is found to exist on the site, before the local government issues a certificate of occupancy, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(B) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, before the local government issues a certificate of occupancy, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.

(j)

(l) A local government’s approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) (g) of Section 65913.4.

(k)

(m) Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) (h) of Section 65913.4.

(l)

(n) A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.

(m)

(o) A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) (i) of Section 65913.4.

(n)

(p) A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) (i) of Section 65913.4.

(o)

(q) A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a “project” under Division 13 (commencing with Section 21000) of the Public Resources Code.

SECTION 1.SEC. 6.

 Section 65912.121 of the Government Code is amended to read:

65912.121.
 A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.124 unless the development project is on a site that satisfies all of the following criteria:
(a) It is located within a zone where office, retail, or parking are principally permitted use.
(b) It is located on a legal parcel, or parcels, that meet either of the following:
(1) It is within a city where the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau.
(2) It is in an unincorporated area, and the legal parcel, or parcels, are wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(c) The project site abuts complies with either of the following:
(1) The project site abuts a commercial corridor and has a frontage along the commercial corridor of a minimum of 50 feet.
(2) The project site is an existing office building.
(d) The site is not greater than 20 acres. acres, unless the site is a regional mall, in which case the site is not greater than 100 acres.
(e) At least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For purposes of this subdivision, parcels that are only separated by a street or highway street, highway, pedestrian path, or bicycle path shall be considered to be adjoined.
(f) (1) It is not on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use.
(2) For purposes of this subdivision, parcels only separated by a street or highway shall be considered to be adjoined.
(3) For purposes of this subdivision, “dedicated to industrial use” means any of the following:
(A) The square footage is currently being used as an industrial use.
(B) The most recently permitted use of the square footage is an industrial use. use, and the site has not been occupied within the past three years.
(C) The site was designated for industrial use in the latest version of a local government’s general plan adopted before January 1, 2022. 2022, and meets either of the following conditions:
(i) Residential uses are not principally permitted on the site.
(ii) The site is not adjoining a parcel with a residential use.
(g) It satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. 65913.4, exclusive of clause (iv) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 65913.4.
(h) The development is not located on a site where any of the following apply:
(1) The development would require the demolition of the following types of housing:
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that has been occupied by tenants within the past 10 years, excluding any manager’s units.
(2) The site was previously used for permanent housing that was occupied by tenants, excluding any manager’s units, that was demolished within 10 years before the development proponent submits an application under this article.
(3) The development would require the demolition of a historic structure that was placed on a national, state, or local historic register.
(4) The property contains one to four dwelling units.
(5) The property is vacant and zoned for housing but not for multifamily residential use.
(6) The existing parcel of land or site is governed under the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational Vehicle Park Occupancy Law (Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), or the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code).
(i) For a site within a neighborhood plan area, the site satisfies either of the following conditions:
(1)As of January 1, 2022, there was a the neighborhood plan applicable to the site that permitted multifamily housing development on the site.

(2)As of January 1, 2024, there was a neighborhood plan applicable to the site that permitted multifamily housing development on the site and all of the following occurred:

(A)A notice of preparation for the neighborhood plan was issued before January 1, 2022, pursuant to the requirements of Sections 21080.4 and 21092 of the Public Resources Code.

(B)The neighborhood plan was adopted on or after January 1, 2022, and before January 1, 2024.

(C)The environmental review for the neighborhood plan was completed before January 1, 2024.

(j) For a vacant site, the site satisfies both of the following:
(1) It does not contain tribal cultural resources, as defined by Section 21074 of the Public Resources Code, that could be affected by the development that were found pursuant to a consultation as described by Section 21080.3.1 of the Public Resources Code and the effects of which cannot be mitigated pursuant to the process described in Section 21080.3.2 of the Public Resources Code.
(2) It is not within a very high fire hazard severity zone, as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code or as designated pursuant to subdivisions (a) and (b) of Section 51179.

SEC. 7.

 Section 65912.122 of the Government Code is amended to read:

65912.122.
 A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.124 unless the new housing units created by the development project meets meet all of the following affordability criteria:
(a) (1) A rental housing development shall include either of the following:
(A) Eight percent of the base units for very low income households and 5 percent of the units for extremely low income households.
(B) Fifteen percent of the base units for lower income households.
(2) The development proponent shall agree to, and the local government shall ensure, the continued affordability of all affordable rental units included pursuant to this subdivision for 55 years. Rents shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code.
(b) (1) An owner-occupied housing development shall include either of the following:
(A) Thirty percent of the base units must be offered at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to moderate-income households.
(B) Fifteen percent of the base units must be offered at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to lower income households.
(2) The development proponent shall agree to, and the local government shall ensure, the continued affordability of all affordable ownership units for a period of 45 years.
(c) If the local government has a local affordable housing requirement, the housing development project shall comply with all of the following:
(1) The development project shall include the percentage of affordable units required by this section or the local requirement, whichever is higher.
(2) The development project shall meet the lowest income targeting in either policy. affordability level of a local affordable housing requirement if it is a deeper affordable level than required by this section.
(3) If Notwithstanding paragraph (1), if the local affordable housing requirement requires greater than 15 percent of the units to be dedicated for lower income households and does not require the inclusion of units affordable to very low and extremely low income households, then the rental housing development shall do both of the following:
(A) Include 8 percent of the units for very low income households and 5 percent of the units for extremely low income households.
(B) Fifteen percent Include an amount of units affordable to lower income households shall be subtracted from the percentage of that is 15 percentage points fewer than the percentage of units required by the local policy at the highest required affordability level. policy.
(d) Affordable units in the development project shall have the same bedroom and bathroom count ratio as the market rate units, be equitably distributed within the project, and have the same type or quality of appliances, fixtures, and finishes.

SEC. 8.

 Section 65912.123 of the Government Code is amended to read:

65912.123.
 A development project shall not be subject to the streamlined, ministerial review process provided by Section 65912.124 unless the development project meets all of the following objective development standards:
(a) The development shall be a multifamily housing development project.
(b) The residential density for the development development, prior to the award of any eligible density bonus pursuant to Section 65915, shall be determined as follows:
(1) In a metropolitan jurisdiction, as determined pursuant to subdivisions (d) and (e) of Section 65583.2, the allowable residential density for the development shall meet or exceed be the greater of the following:
(A) The maximum allowable residential density density, as defined in paragraph (6) of subdivision (o) of Section 65915, allowed on the parcel by the local government.
(B) For sites of less than one acre in size, 30 units per acre.
(C) For sites of one acre in size or greater located on a commercial corridor of less than 100 feet in width, 40 units per acre.
(D) For sites of one acre in size or greater located on a commercial corridor of 100 feet in width or greater, 60 units per acre.
(E) Notwithstanding subparagraph (B), (C), or (D), for sites within one-half mile of a major transit stop, 80 units per acre.
(2) In a jurisdiction that is not a metropolitan jurisdiction, as determined pursuant to subdivisions (d) and (e) of Section 65583.2, the allowable residential density for the development shall meet or exceed be the greater of the following:
(A) The maximum allowable residential density density, as defined in paragraph (6) of subdivision (o) of Section 65915, allowed on the parcel by the local government.
(B) For sites of less than one acre in size, 20 units per acre.
(C) For sites of one acre in size or greater located on a commercial corridor of less than 100 feet in width, 30 units per acre.
(D) For sites of one acre in size or greater located on a commercial corridor of 100 feet in width or greater, 50 units per acre.
(E) Notwithstanding subparagraph (B), (C), or (D), for sites within one-half mile of a major transit stop, 70 units per acre.
(3) The development project shall be developed at a density that is 75 percent or greater of the applicable allowable residential density contained in subparagraphs (B) to (E), inclusive, of paragraph (1) or subparagraphs (B) to (E), inclusive, of paragraph (2), as applicable.
(4) Notwithstanding paragraphs (1) and (2), a development project shall not be subject to any density limitation if the development project is a conversion of existing buildings into residential use, unless the development project includes additional new square footage that is more than 20 percent of the overall square footage of the project.
(c) The height limit applicable to the housing development shall be the greater of the following:
(1) The height allowed on the parcel by the local government.
(2) For sites on a commercial corridor of less than 100 feet in width, 35 feet.
(3) For sites on a commercial corridor of 100 feet in width or greater, 45 feet.
(4) Notwithstanding paragraphs (2) and (3), 65 feet for sites that meet all of the following criteria:
(A) They are within one-half mile of a major transit stop.
(B) They are within a city with a population of greater than 100,000.
(C) They are not within a coastal zone, as defined in Division 20 (commencing with Section 30000) of the Public Resources Code.
(d) The property meets the following setback standards:
(1) For the portion of the property that fronts a commercial corridor, the following shall occur:
(A) No setbacks shall be required.
(B) All parking must be set back at least 25 feet.
(C) On the ground floor, a building or buildings must abut within 10 feet of the property line highway for at least 80 percent of the frontage.

(2)For the portion of the property that fronts a side street, a building or buildings must abut within 10 feet of the property line for at least 60 percent of the frontage.

(3)

(2) For the portion of the property that abuts an adjoining property that also abuts the same commercial corridor as the property, no setbacks are required unless the adjoining property contains a residential use that was constructed prior to the enactment of this chapter, in which case the requirements of subparagraph (A) of paragraph (4) apply.

(4)

(3) For the portion of the property line that does not abut or lie within a commercial corridor, a side street, or an adjoining property that also abuts the same commercial corridor as the property, the following shall occur:
(A) Along property lines that abut a property that contains a residential use, the following shall occur:
(i) The ground floor of the development project shall be set back at 10 feet. The amount required to be set back may be decreased by the local government.
(ii) Starting with the second floor of the property, each subsequent floor of the development project shall be stepped back in an amount equal to seven feet multiplied by the floor number. For purposes of this paragraph, the ground floor counts as the first floor. The amount required to be stepped back may be decreased by the local government.
(B) Along property lines that abut a property that does not contain a residential use, the development shall be set back 15 feet. The amount required to be stepped back may be decreased by the local government.
(e) No parking shall be required, except that this article shall not reduce, eliminate, or preclude the enforcement of any requirement imposed on a new multifamily residential or nonresidential development to provide bicycle parking, electric vehicle supply equipment installed parking spaces, or parking spaces that are accessible to persons with disabilities that would have otherwise applied to the development if this article did not apply.

(f)(1)The development proponent shall complete a phase I environmental assessment, as defined in Section 78090 of the Health and Safety Code.

(2)If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.

(A)If a release of a hazardous substance is found to exist on the site, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.

(B)If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.

(g)None of the

(f) For any housing on the site is located within 500 feet of a freeway, as defined in Section 332 of the Vehicle Code. regularly occupied areas of the building shall provide air filtration media for outside and return air that provide a minimum efficiency reporting value of 13.

(h)None of the

(g) For any housing on the site is located within 3,200 feet of a facility that actively extracts or refines oil or natural gas. gas, regularly occupied areas of the building shall provide air filtration media for outside and return air that provide a minimum efficiency reporting value of 13.

(i)

(h) (1) The development proponent shall provide written notice of the pending application to each commercial tenant on the parcel when the application is submitted.
(2) The development proponent shall provide relocation assistance to each eligible commercial tenant located on the site as follows:
(A) For a commercial tenant operating on the site for at least one year but less than five years, the relocation assistance shall be equivalent to six months’ rent.
(B) For a commercial tenant operating on the site for at least 5 years but less than 10 years, the relocation assistance shall be equivalent to nine months’ rent.
(C) For a commercial tenant operating on the site for at least 10 years but less than 15 years, the relocation assistance shall be equivalent to 12 months’ rent.
(D) For a commercial tenant operating on the site for at least 15 years but less than 20 years, the relocation assistance shall be equivalent to 15 months’ rent.
(E) For a commercial tenant operating on the site for at least 20 years, the relocation assistance shall be equivalent to 18 months’ rent.
(3) The relocation assistance shall be provided to an eligible commercial tenant upon expiration of the lease of that commercial tenant.
(4) For purposes of this subdivision, a commercial tenant is eligible for relocation assistance if the commercial tenant meets all of the following criteria:
(A) The commercial tenant is an independently owned and operated business with its principal office located in the county in which the property on the site that is leased by the commercial tenant is located.
(B) The commercial tenant’s lease expired and was not renewed by the property owner.
(C) The commercial tenant’s lease expired within the three years following the development proponent’s submission of the application for a housing development pursuant to this article.
(D) The commercial tenant employs 20 or fewer employees and has annual average gross receipts under one million dollars ($1,000,000) for the three-taxable-year period ending with the taxable year that precedes the expiration of their lease.
(E) The commercial tenant is still in operation on the site at the time of the expiration of its lease.
(5) Notwithstanding paragraph (4), for purposes of this subdivision, a commercial tenant is ineligible for relocation assistance if the commercial tenant meets both of the following criteria:
(A) The commercial tenant entered into a lease on the site after the development proponent’s submission of the application for a housing development pursuant to this article.
(B) The commercial tenant had not previously entered into a lease on the site.
(6) (A) The commercial tenant shall utilize the funds provided by the development proponent to relocate the business or for costs of a new business.
(B) Notwithstanding paragraph (2), if the commercial tenant elects not to use the funds provided as required by subparagraph (A), the development proponent shall provide only assistance equal to three months’ rent, regardless of the duration of the commercial tenant’s lease.
(7) For purposes of this subdivision, monthly rent is equal to one-twelfth of the total amount of rent paid by the commercial tenant in the last 12 months.
(i) For any project that is the conversion of an existing building for nonresidential use building to residential use, the local government shall not require the provision of common open space beyond what is required for the existing project site.
(j) Other objective Objective zoning standards, objective subdivision standards, and objective design review standards not specified elsewhere in this section, as follows:
(1)  The applicable objective standards shall be those for the closest zone in the city, county, or city and county that allows multifamily residential use at the residential density determined pursuant to subdivision (b). If no zone exists that allows the residential density determined pursuant to subdivision (b), the applicable objective standards shall be those for the zone that allows the greatest density within the city, county, or city and county.
(2) The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this article.
(3) The objective standards shall not preclude a development from being at the residential density required pursuant to paragraphs (1) and (2) of subdivision (b) and shall not require the development to reduce unit size to meet the objective standards.

(3)

(4) The applicable objective standards may include a requirement that up to one-half of the ground floor of the housing development project be dedicated to retail use.

(4)

(5) For purposes of this section, “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. In the event that objective zoning, general plan, subdivision, or design review standards are mutually inconsistent, a development shall be deemed consistent with the objective zoning and subdivision standards pursuant to this subdivision if the development is consistent with the standards set forth in the general plan.

SEC. 9.

 Section 65912.124 of the Government Code is amended to read:

65912.124.
 (a) (1) If the A local government determines that shall determine whether a development submitted pursuant to this article is consistent or is not consistent with the objective planning standards specified in this article, it shall approve the development. article within the following timeframes:
(A) Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B) Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.
(C) Within 30 days of submittal of any development proposal that was resubmitted to address written feedback provided by the local government pursuant to this subdivision.
(2) If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which proponent, in writing, with an exhaustive list of the standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that standard or standards, within the following timeframes: timeframes specified in paragraph (1).

(A)Within 60 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.

(B)Within 90 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.

(3) Once the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development within the following timeframes:
(A) Within 90 days of submittal of the development proposal to the local government if the development contains 150 or fewer housing units.
(B) Within 180 days of submittal of the development proposal to the local government if the development contains more than 150 housing units.

(b)

(4) If the local government fails to provide the required documentation pursuant to subdivision (a), paragraph (2), the development shall be deemed to satisfy the required objective planning standards.

(c)

(b) (1) For purposes of this section, a development is consistent with the objective planning standards if there is substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(2) For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.

(d)

(c) The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a “project” as defined in Section 21065 of the Public Resources Code.

(e)

(d) Design review of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. design review. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable: section.

(1)Within 90 days of submittal of the development proposal to the local government pursuant to this section if the development contains 150 or fewer housing units.

(2)Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.

(e) If a development is located within an area of the coastal zone that is not excluded under paragraph (6) of subdivision (a) of Section 65913.4, the development shall require a coastal development permit pursuant to Chapter 7 (commencing with Section 30600) of Division 20 of the Public Resources Code. A public agency with coastal development permitting authority shall approve a coastal development permit if it determines that the development is consistent with all objective standards of the local government’s certified local coastal program or, for areas that are not subject to a fully certified local coastal program, the certified land use plan of that area.
(f) (1) A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915, except that the project shall not use a concession to reduce a local government requirement for the provision of ground floor retail that is consistent with the allowance contained in paragraph (3) of subdivision (j) of Section 65912.123.
(2) A development proponent may use incentives, concessions, and waivers or reductions of development standards allotted pursuant to subdivisions (d) and (e) of Section 65915 to deviate from the objective standards contained in subdivision (c) and paragraphs (2) and (3) of subdivision (d) of Section 65912.123.
(3) The utilization by a development proponent of incentives, concessions, and waivers or reductions of development standards allowed pursuant to Section 65915 shall not cause the project to be subject to a local discretionary government review process, or be considered a “project” under Division 13 (commencing with Section 21000) of the Public Resources Code, even if that incentive, concession, or waiver or reduction of development standards is not specified in a local ordinance.
(4) For purposes of this section, receipt of any density bonus, concession, incentive, waiver or reduction of development standards, and parking ratios to which the applicant is entitled under Section 65915 shall not constitute a basis to find the project inconsistent with the local coastal program.
(g) Any fee, as defined in Section 66000, imposed on a development proposed pursuant to this article shall be entitled to a credit for existing uses that are demolished as part of the development at the rate established by the local government for those existing uses.

(g)

(h) The local government shall ensure that the project satisfies the requirements specified in Article 2 (commencing with Section 66300.5) of Chapter 12, regardless of whether the development is within or not within an affected city or within or not within an affected county.

(h)

(i) If the development is consistent with all objective subdivision standards in the local subdivision ordinance, an application for a subdivision pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410)) shall be exempt from the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(i)

(j) A local government may, by ordinance adopted to implement this article, exempt a parcel from this section before a development proponent submits a development application on a parcel pursuant to this article if the local government makes written findings establishing all of the following:
(1) The local government has identified a parcel or parcels that meet the criteria described in subdivisions (b) and (e) to (h), inclusive, of Section 65912.121.
(2) (A) If a parcel identified in paragraph (1) would not otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed pursuant to the requirements of this chapter. A parcel reclassified for development pursuant to this subparagraph shall be suitable for residential development. For purposes of this subparagraph, a parcel suitable for residential development shall have the same meaning as “land suitable for residential development,” as defined in Section 65583.2.
(B) If a parcel identified in paragraph (1) would otherwise be eligible for development pursuant to this chapter, the implementing ordinance authorizes the parcel to be developed ministerially at residential densities above the residential density required in subdivision (b) of Section 65912.123 and heights required in subdivision (c) of Section 65912.123.
(3) The substitution of the parcel or parcels identified in this subdivision for parcels reclassified pursuant to paragraph (2) will result in all of the following:
(A) No net loss of the total potential residential capacity in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of local and state law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(B) No net loss of the total potential residential capacity of housing affordable to lower income households in the jurisdiction relative to the total capacity that existed in the jurisdiction through the combined effect of this chapter and local law as of the date of the adoption of the ordinance. In making the no net loss calculation specified by this subparagraph, the local government need only factor in the parcels substituted and reclassified pursuant to this subdivision.
(C) Affirmative furthering of fair housing.
(4) A parcel or parcels reclassified for development pursuant to subparagraph (A) of paragraph (2) shall be eligible for development pursuant to this chapter notwithstanding any contrary provision of the local government’s charter, general plan, or ordinances, and a parcel or parcels reclassified for development pursuant to subparagraph (B) of paragraph (2) shall be developed ministerially at the densities and heights specified in the ordinance notwithstanding any contrary provision of the local government’s charter, general plan, or ordinances.
(5) The local government has completed all of the rezonings required pursuant to subdivision (c) of Section 65583 for the sixth revision of its housing element.
(6) The local government has designated on its zoning maps which parcels have been exempted from this chapter and which parcels have been reclassified for development pursuant to this chapter. This information must be made publicly available through the local government’s internet website.
(k) (1) The local government shall, as a condition of approval of the development, require the development proponent to complete a phase I environmental assessment, as defined in Section 78090 of the Health and Safety Code.
(2) If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.
(A) If a release of a hazardous substance is found to exist on the site, before the local government issues a certificate of occupancy, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
(B) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, before the local government issues a certificate of occupancy, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.

(j)

(l) A local government’s approval of a development pursuant to this section shall, notwithstanding any other law, be subject to the expiration timeframes specified in subdivision (f) (g) of Section 65913.4.

(k)

(m) Any proposed modifications to a development project approved pursuant to this section shall be undertaken pursuant to subdivision (g) (h) of Section 65913.4.

(l)

(n) A local government shall not adopt or impose any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive streamlined, ministerial review pursuant to this section.

(m)

(o) A local government shall issue a subsequent permit required for a development approved under this section pursuant to paragraph (2) of subdivision (h) of Section 65913.4.

(n)

(p) A public improvement that is necessary to implement a development that is approved pursuant to this section shall be undertaken pursuant to paragraph (3) of subdivision (h) (i) of Section 65913.4.

(o)

(q) A local government may adopt an ordinance to implement the provisions of this article. An ordinance adopted to implement this section shall not be considered a “project” under Division 13 (commencing with Section 21000) of the Public Resources Code.

SEC. 10.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.