Governor Newsom recently signed a state budget along with trailer bills aimed at accelerating housing development. A key part of the package includes significant changes to the California Environmental Quality Act (CEQA), the law that requires environmental review of public projects. Under the new reforms, many urban infill housing developments will be exempt from CEQA requirements, reducing costly delays and legal challenges that have long hindered housing construction. However, other barriers such as high labor costs and complex permitting processes remain.
The package also included AB 130 and SB 131, which introduce new and costly regulatory burdens on housing projects by dramatically expanding the state’s already stringent Vehicle Miles Traveled (VMT) rules. While CEQA reform is a longstanding priority for our industry, we will continue to advocate for policies that support housing production without triggering harmful unintended consequences.
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