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City attorney briefs commission on 2025 housing laws, CEQA exemptions and legal risks
Summary
The city attorney explained recent 2025 state changes — amended Housing Accountability Act rules, a new CEQA statutory exemption for many multifamily projects (PRC 21108.66), SB79 ministerial approvals near transit, and a court decision on residential overlay zones — and described where Calabasas is and is not affected.
City legal staff briefed the Planning Commission on Nov. 20 on a wave of 2025 state housing and environmental law changes and a recent court decision that may affect how local governments zone and review housing projects.
Housing Accountability Act (HAA): The city attorney summarized amendments that tighten the standard under which a jurisdiction may deny or condition housing development. The HAA now treats certain procedural actions (for example, finding an application "incomplete" for items not on the city’s checklist) as potential disapprovals that can be subject to legal challenge. Remedies for improper disapproval include fines, attorneys’ fees and, in some circumstances, a developer remedy that allows projects to proceed with limited local controls if a jurisdiction’s housing element is not in substantial compliance.
Builder’s remedy: The law retains a developer pathway for jurisdictions without a compliant housing element but places new guardrails on maximum density (for example, up to 50% over minimum appropriate density or other statutory thresholds) and allows objective written development standards that do not render a project infeasible.
CEQA statutory exemption (PRC 21108.66): The attorney reviewed a new statutory exemption that can shield many multi‑family projects from CEQA when they meet defined conditions (urban location, density thresholds, maximum site size up to 20 acres for qualifying projects). The exemption imposes a special tribal consultation process, permits reduced environmental review in narrowly defined circumstances, and requires final action within 30 days after tribal consultation concludes unless the applicant agrees to an extension.
SB79 and Ministerial approvals near transit: The new law creates expedited ministerial paths for qualifying housing near tier‑1 and tier‑2 transit stations (heavy rail, high‑frequency commuter rail, or BRT/light rail in many counties). Staff said Calabasas presently does not host qualifying stations and is not directly affected.
Overlay zones and a court decision: A September court ruling (Commune DTLA v. Redondo Beach) found that residential overlay zones placed over commercial or industrial underlying zoning may not satisfy statutory minimum residential‑density requirements in some circumstances. Staff said Calabasas’ zoning differs (many overlay sites here have residential underlying zoning), but the decision raises risk for other jurisdictions and could lead HCD to revisit certifications and enforcement.
Implications for Calabasas: Staff advised that while some statewide changes and exemptions do not apply directly to Calabasas today (SB79, ministerial transit approaches), the city must continue to refine objective development standards and consult regularly with HCD and legal counsel to reduce litigation risk and ensure housing element compliance.
Next steps: Staff recommended tracking legal developments, updating objective standards where appropriate (for example, evacuation/egress standards that could qualify as objective safety rules) and maintaining records that support local determinations to reduce exposure to litigation.
