AB893 - Housing development projects: objective standards: campus development zone.

Assembly Bill No. 893 CHAPTER 500 An act to amend Sections 65912.101, 65912.104, 65912.114, 65912.121, 65912.122, 65912.123, and 65912.124 of, and to add Section 65912.103.5 to, the Government Code, relating to housing. [ Approved by Governor October 10, 2025. Filed with Secretary of State October 10, 2025. ] LEGISLATIVE COUNSEL'S DIGEST AB 893, Fong. Housing development projects: objective standards: campus development zone. Existing law, the Affordable Housing and High Road Jobs Act of 2022 (act), until January 1, 2033, authorizes a development proponent to submit an application for an affordable housing development or a mixed-income housing development that meets specified objective standards and affordability and site criteria, including being located within a zone where office, retail, or parking are a principally permitted use. The act makes a development that meets those objective standards and affordability and site criteria a use by right and subject to one of 2 streamlined, ministerial review processes depending on, among other things, the affordability requirements applicable to the project. The act requires the Department of Housing and Community Development to undertake at least 2 studies, one completed on or before January 1, 2027, and one completed on or before January 1, 2031, on the outcomes of the act. This bill would provide that, for purposes of determining whether a property or site satisfies the criteria, objective development standards, or other requirements for receiving streamlined, ministerial review under the act, a local government’s review of the property or site is limited to the area described as being physically disturbed by construction in the application for streamlined, ministerial review and does not include, unless expressly stated otherwise, other contiguous or noncontiguous areas even if under the ownership or control of the project proponent. The bill would provide that easements for public right-of-way, public or private utilities, or other public improvements in, under, or over the property shall not make the property ineligible to receive streamlined, ministerial review for either affordable or mixed-income housing developments. This bill would also expand the eligibility for the above-described streamlined, ministerial review for mixed-income housing developments to include developments located in a campus development zone, as defined, as long as the development meets certain affordability requirements and objective standards, as provided. The bill would require the outcomes of projects built under campus development zones to be reported in the January 1, 2031, outcomes report. The bill would also make related findings and declarations. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. By expanding the scope of projects eligible for streamlined, ministerial approval as described above, this bill would expand the scope of the exemption from CEQA for ministerial projects. Existing law includes certain setback requirements in the objective standards that a mixed-income development project must meet to be subject to the above-referenced streamlined, ministerial review process. In this regard, existing law requires all parking to be set back at least 25 feet. This bill would instead impose that setback requirement only on parking that is aboveground. By changing the criteria local agencies must follow for the approval of certain development projects, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. (a) The Legislature finds and declares all of the following: (1) The state is experiencing a widespread student housing crisis, which has been caused by the shortage of housing units on and around university and college campuses. (2) Housing costs represent a significant proportion of the cost of attendance of California’s public and private higher education institutions, and the lack of housing for students represents a significant barrier to academic achievement. (3) Efforts to promote the development of off-campus housing to help address the state’s student housing crisis are not intended to supplant planning, financing, and facilitating on-campus housing developments. (b) It is the intent of the Legislature to continue to promote the development of housing units for students and faculty of California’s colleges and universities, in order to address the ongoing student housing crisis. SEC. 2. Section 65912.101 of the Government Code is amended to read: 65912.101. For purposes of this chapter: (a) “Base units” has the same meaning as “total units” as defined in subparagraph (A) of paragraph (8) of subdivision (o) of Section 65915. (b) “Campus development zone” means the set of parcels that are contained either wholly or partially within a one-half mile radius of a “main campus,” as defined by Section 94849 of the Education Code, of the University of California, the California State University, or the California Community Colleges. (c) “Commercial corridor” means a street that is not a freeway and that has a right-of-way of at least 70 and not greater than 150 feet. (d) “Development proponent” means a developer who submits a housing development project application to a local government under the streamlined, ministerial review process pursuant to this chapter. (e) “Extremely low income faculty or staff” means an employee of the University of California, the California State University, or the California Community Colleges who satisfies the requirements of Section 50106 of the Health and Safety Code. (f) “Extremely low income households” has the same meaning as defined in Section 50106 of the Health and Safety Code. (g) “Freeway” has the same meaning as defined in Section 332 of the Vehicle Code, except it does not include the portion of a freeway that is an on ramp or off ramp that serves as a connector between the freeway and other roadways that are not freeways. (h) “Health care expenditures” include contributions under Sections 501(c) or (d) or 401(a) of the Internal Revenue Code and payments toward “medical care” as defined under Section 213(d)(1) of the Internal Revenue Code. (i) “Housing development project” has the same meaning as defined in Section 65589.5. (j) “Industrial use” means utilities, manufacturing, transportation storage and maintenance facilities, warehousing uses, and any other use that is a source that is subject to permitting by a district, as defined in Section 39025 of the Health and Safety Code, pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code or the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.). “Industrial use” does not include any of the following: (1) Power substations or utility conveyances such as power lines, broadband wires, and pipes. (2) A use where the only source permitted by a district is an emergency backup generator. (3) Self-storage for the residents of a building. (k) “Local affordable housing requirement” means either of the following: (1) A local government requirement, as a condition of development of residential units, that a housing development project include a certain percentage of units affordable to, and occupied by, extremely low, very low, lower, or moderate-income households as a condition of development of residential units. (2) A local government requirement allowing a housing development project to be a use by right if the project includes a certain percentage of units affordable to, and occupied by, extremely low, very low, lower, or moderate-income households as a condition of development of residential units. (l) “Local government” means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county. (m) “Lower income faculty or staff” means an employee of the University of California, the California State University, or the California Community Colleges who satisfies the requirements of Section 50079.5 of the Health and Safety Code. (n) “Lower income households” has the same meaning as defined in Section 50079.5 of the Health and Safety Code. (o) (1) “Lower income student” means any of the following: (A) A student who has a household income and asset level that does not exceed either of the following: (i) The level for Cal Grant A or Cal Grant B award recipients as set forth in subdivision (k) of Section 69432.7 of the Education Code. (ii) The level for the California College Promise Grant as set forth in clause (ii) of subparagraph (B) of paragraph (1) of subdivision (g) of Section 76300 of the Education Code. (B) A student who otherwise qualifies for the California College Promise Grant as set forth in subparagraph (B) of paragraph (1) of subdivision (g) of Section 76300 of the Education Code. (C) A student who qualifies for Federal Pell Grant financial aid pursuant to Section 1070a of Title 20 of the United States Code. (D) A student who qualifies for an exemption from paying nonresident tuition pursuant to Section 68130.5 of the Education Code, provided that the student also meets income criteria in subparagraph (A) or (B). (E) A graduate student with income and asset levels that would qualify for one or more of the benefits in subparagraphs (A) to (D), inclusive, as determined by the campus at which the student is enrolled. (2) The eligibility of a student to occupy a unit for lower income students under this subdivision shall be verified by an affidavit, award letter, or letter of eligibility demonstrating that the student is eligible for financial aid, including an institutional grant or fee waiver, provided by the institution of higher education in which the student is enrolled, by the Student Aid Commission, or by the federal government. (p) “Major transit stop” has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code. (q) “Minimum efficiency reporting value” or “MERV” means the measurement scale developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers used to report the effectiveness of air filters. (r) “Moderate-income households” means households of persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code. (s) “Multifamily” means a property with five or more housing units for sale or for rent. (t) “Neighborhood plan” means a specific plan adopted pursuant to Article 8 (commencing with Section 65450) of Chapter 3, an area plan, precise plan, community plan, urban village plan, or master plan. To qualify as a neighborhood plan, the plan must have been adopted by a local government before January 1, 2024, and within 25 years of the date that a development proponent submits an application pursuant to this chapter. A neighborhood plan does not include a community plan or plans where the cumulative area covered by the community plans in the jurisdiction is more than one-half of the area of the jurisdiction. (u) “Principally permitted use” means a use that, as of January 1, 2023, or thereafter, may occupy more than one-third of the square footage of designated use on the site and does not require a conditional use permit, except that parking uses are considered principally permitted whether or not they require a conditional use permit. (v) “Regional mall” means a site that meets all of the following criteria on the date that a development proponent submits an application pursuant to this chapter: (1) The permitted uses on the site include at least 250,000 square feet of retail use. (2) At least two-thirds of the permitted uses on the site are retail uses. (3) At least two of the permitted retail uses on the site are at least 10,000 square feet. (w) “Street” has the same meaning as defined in Section 590 of the Vehicle Code, and includes sidewalks, as defined in Section 555 of the Vehicle Code. (x) “Urban uses” means any current or former residential, commercial, public institutional, public park that is surrounded by other urban uses, parking lot or structure, transit or transportation passenger facility, or retail use, or any combination of those uses. (y) “Use by right” means a development project for which both of the following are true: (1) The development project is not subject to a conditional use permit, planned unit development permit, or any other discretionary local government approval, permit, or review process. (2) No aspect of the development project, including any permits required for the development project, is a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. (z) “Very low income faculty or staff” means an employee of the University of California, the California State University, or the California Community Colleges who satisfies the requirements of Section 50105 of the Health and Safety Code. (aa) “Very low income households” has the same meaning as defined in Section 50105 of the Health and Safety Code. (ab) “Very low vehicle travel area” has the same meaning as defined in subdivision (h) of Section 65589.5. SEC. 3. Section 65912.103.5 is added to the Government Code, to read: 65912.103.5. For purposes of determining whether a property or site satisfies the criteria, objective development standards, or other requirements for receiving streamlined, ministerial review under this chapter, a local government’s review of the property or site shall be limited to the area described as being physically disturbed by construction in the application for streamlined, ministerial review and shall not include, unless expressly stated otherwise, other contiguous or noncontiguous areas even if under the ownership or control of the project proponent. SEC. 4. Section 65912.104 of the Government Code is amended to read: 65912.104. 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