California Governor Gavin Newsom recently signed 56 new housing laws into effect this month, marking another significant effort to tackle the state’s persistent housing crisis. These laws encompass a wide range of measures aimed at increasing housing affordability, boosting construction, and addressing tenant protections. 

Here’s a list of the most notable new laws that we see effecting our clients: 

Density Bonuses: AB 1287 provides for an expansion of the existing density bonus laws for residential developments to allow for a double density bonus for qualifying developments. Under AB 1287, developers that provide a specified percentage of very low, low, and moderate income housing can now qualify for up to 100% density bonus. 

Accessory Dwelling Units (ADUs): Under the existing ADU laws, ADUs cannot be conveyed separately from the primary residence. Now, under AB 1033, property owners would be able to separately sell their ADUs from the primary residence. 

Tenant Protections: Under existing housing laws, landlords can require a tenant to pay up to 2 months deposit for unfurnished units, or 3 months deposit for furnished units. Under the new law AB 12, the max deposit a landlord can require is one (1) month’s rent. 

Streamlined Approval Processes: A number of the new laws focus on streamlining the approval processes. AB 684 would require ministerial approval, without discretionary review or hearing, for subdivisions of up to 10 units in urban areas. AB 529 expands on the existing law to now include conversions of commercial properties to housing. SB 4 now allows for residential development “by right” for church and educational owned properties.

 Additionally, the state of CA has expanded on a couple of additional housing programs to further help the purchase and expansion of housing by providing a second round of funding for the following programs:

CALIFORNIA DREAM FOR ALL LOAN PROGRAM: The Dream For All Shared Appreciation Loan is a down payment assistance program that provides 20% of the purchase price for first-time homebuyers. The initial funding round maxed out in 2 weeks. 

CALHFA ADU GRANT PROGRAM: The CAlHFA ADU Grant program provides up to $40,000 towards pre-development and non-reoccurring closing costs associated with the construction of the ADU. This program had previously run out of funds but will be coming back online.

If you’d like more information on the new state laws or funding programs, contact us at Cadwell & Co. We’d be glad to evaluate your current real estate or future purchasing plans and provide advice on how you can take advantage of the available opportunities.

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