Last week, Gov. Gavin Newsom signed into law a housing reform package that scales back California’s landmark environmental law, a move he says is critical to easing the state’s housing shortage and homelessness crisis.
The two-bill package – containing Assembly Bill (AB) 609, authored by Assemblymember Buffy Wicks (D-Oakland), and AB 306 authored by Assemblymember Nick Schultz (D-Burbank) –reforms the California Environmental Quality Act (CEQA).
Until now, CEQA required environmental reviews for new development. Newsom and housing advocates say the law has delayed projects for years through costly lawsuits and reviews.
“We have too much demand chasing too little supply,” Newsom said June 30 in Sacramento. “This was too urgent, too important, to allow the process to unfold as it has for the last generation.”
According to the Governor’s office, the new law will speed up housing project approvals in dense urban areas and streamline reviews in an effort to lower construction costs and increase supply.
Gov. Newsom also signed Senate Bill 131, authored by Sen. Scott Wiener (D-San Francisco), along with budget trailer bill AB 130 –two measures that advance further reforms to the California Environmental Quality Act (CEQA). Supporters say the changes will help reduce costs for families.
Home prices in California remain among the highest in the nation, with the median price for a single-family home in San Jose surpassing $2 million last year.
“With AB 130, we’re taking a major step toward building desperately needed homes faster, fairer, and with more certainty,” Wicks said. “This is what our working-class families deserve and how we move California’s housing goals from promise to reality.”
Environmental groups, including the Sierra Club, opposed the legislation. Jakob Evans, a senior policy strategist with Sierra Club California, said the bills “will have destructive consequences for environmental justice communities and endangered species across California.”
With about 18 months left in office, Newsom is pushing to leave a legacy of progress on housing. When first elected, Newsom pledged to build millions of homes. That goal remains out of reach.
Planning expert Bill Fulton said it’s unclear how much development the law will actually unlock. “I think the increase will be incremental rather than a boom,” he said.
Republicans criticized Newsom for acting too late. “The governor has done very little. Now he wants to take credit for our work,” said Assembly GOP leader James Gallagher (R-Yuba City).
The housing overhaul comes as the state scales back other programs, including a health care expansion for undocumented immigrants, to close a $12 billion budget gap.
Newsom framed the move as a test of trust in government. “It’s about the reputation of the state of California,” he said.
Bo Tefu contributed to this report.
