California agencies face strict guidelines on housing development project approvals

Assembly Bill 87, introduced in California on March 18, 2025, aims to streamline the housing development approval process while addressing concerns about local agencies potentially obstructing projects through improper conduct. The bill seeks to mitigate delays and costs associated with housing developments, which have become increasingly critical in the face of California's ongoing housing crisis.

The primary provisions of Assembly Bill 87 focus on establishing clear guidelines for local agencies when handling housing development applications. It mandates that if a project applicant believes a local agency is engaging in conduct that effectively disapproves their project—such as unnecessary delays or harassment—they must provide written notice detailing the alleged conduct. The local agency is then required to post this notice publicly and respond within a specified timeframe, ensuring transparency and accountability.

Key elements of the bill include a 60-day period for local agencies to consider objections and comments before making a determination, and a 90-day deadline to either cease the challenged conduct or provide a written explanation for its necessity. If the agency fails to comply, it bears the burden of proof in demonstrating that its actions do not constitute disapproval of the project.

The bill has sparked notable debate among stakeholders. Proponents argue that it is essential for expediting housing development in a state grappling with severe shortages, while critics express concerns about potential overreach and the implications for local governance. Some local agencies fear that the bill may undermine their authority and ability to manage community concerns effectively.

Economically, Assembly Bill 87 could have significant implications. By potentially accelerating the approval process for housing projects, it may help alleviate the housing shortage, thereby stabilizing housing prices and improving affordability for residents. Socially, the bill addresses the urgent need for more housing options, particularly in urban areas where demand is high.

As the legislative process unfolds, experts suggest that the bill's success will depend on balancing the need for efficient housing development with the rights of local agencies to manage their communities. The outcome of Assembly Bill 87 could set a precedent for future housing legislation in California, influencing how local agencies interact with developers and the broader implications for housing policy statewide.