Given how critical housing issues have become, it should be no surprise that Governor Newsom signed more than 60 housing-related bills in 2023. Many of them build on prior legislation, expanding their effect and reach. Others took local programs and will bring them statewide.
Increased Tenant Protections
Here are some of the new laws and how they’ll affect residents, according to the San Francisco Chronicle. Pandemic eviction moratoriums are fresh in everyone’s minds, and the legislature made tenant protection a priority:
- SB567 strengthened the state’s Tenant Protection Act of 2019. It limits rent increases and provides other protections to residents of municipalities that don’t have local rent ordinances
- AB548 allows building inspectors to look at an entire building if problems are found in one apartment, like mold, it’s likely to impact other tenants
- AB1218 expands the requirements for replacement housing if rent-controlled apartments are demolished
The state’s Costa-Hawkins Act has been a longtime target of tenant groups. Passed in 1995, it limits local governments’ ability to enact rent control. It exempts single-family homes/condominiums and construction after 1995 from rental control. One small reform in AB1620 allows permanently disabled tenants living in a rent-controlled unit to switch units while maintaining their low rent.
Efforts to Make Renting More Affordable
Other laws are meant to help those who are homeless, low-income, living in overcrowded conditions, or paying a high price for short-term rentals:
- AB12 cuts the maximum security deposit from two month’s rent to one. This should help those who can afford to pay rent but who have difficulty saving enough for a security deposit
- Many Section 8 vouchers, which are supposed to help low-income renters afford housing, go unused because potential tenants don’t have high enough credit scores to qualify for an apartment. SB267 will allow Section 8 tenants to use information other than these scores, like proof of paying rent on time in the past
While making rent more affordable for tenants, these measures may increase expenses for landlords.
Cutting Restrictions on Creating New Housing
Though Gov. Newsom vetoed many proposals to fund low-income housing, he signed every bill that streamlines the affordable housing approval process:
- SB4 simplifies approvals and rezones land owned by religious organizations to permit affordable housing
- SB91, AB1490, and AB529 encourage converting motels and other commercial buildings to affordable housing
Numerous bills allowing homes to be built faster will go into effect, including:
- SB423 will speed up the approval of housing in cities that are failing to meet state-mandated housing goals
- Two other laws close loopholes used to delay project approvals. AB1633 covers the California Environmental Quality Act, and AB1114 affects building permits
- AB130 clarifies students don’t fall under the definition of pollution under state environmental law, so anti-pollution rules can’t block student housing
Based on a San Diego program, AB1287 allows developers more height and homes in apartment and mixed-use zones if they provide some very low, low, and moderate-income housing. Under current law, such buildings could be up to 50% larger than otherwise allowed by local zoning. With this new law, by including more income-restricted units, these buildings can be 100% bigger.
Accessory Dwelling Units Get More Attention
Accessory dwelling units (ADUs) are the subject of new laws:
- Many cities have pre-approved ADU plans, so a homeowner will pick a design and receive a permit the same day. AB1332 brings this system statewide
- Condo ADUs will be coming soon. AB671 permits Community Land Trusts, which are affordable housing nonprofits, to sell a house, ADU, and “junior” ADU on one property to three low-income families
- AB1033 allows cities and counties to allow anyone to buy an ADU as a condo
Thanks to California’s need for more housing, ADUs are an example of what a few years ago may have seemed impossible to become an expanding housing source.
Statewide Propositions Next Year May Also Impact Housing
Next year, voters will also have a say on housing policy through ballot measures, which will be decided in March and November. These propositions cover possibly:
- Issuing $6.380 billion in bonds to fund housing for homeless individuals and veterans with mental health or substance use disorders
- Making it easier for cities to fund and build housing
- Repealing the Costa-Hawkins Act
We will see if these new laws reach their goals and the unintended consequences that will result.
AWB Law is Here to Help
If you’re a residential landlord with questions or concerns about current laws or these new ones or need legal representation, call the legal team at AWB Law at (949) 244-4207 or complete our online contact form today to schedule a consultation.
