AB2296 - Planning and zoning: housing element: regional housing needs allocation.

Amended IN Senate August 21, 2026 Amended IN Senate June 29, 2026 Amended IN Assembly May 18, 2026 Amended IN Assembly April 16, 2026 Amended IN Assembly March 19, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2296 Introduced by Assembly Member Papan February 19, 2026 An act to amend Sections 65584.03, 65584.04, and 65584.05 65584.05, and 65588 of the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST AB 2296, as amended, Papan. Planning and zoning: housing element: regional housing needs allocation. (1) Existing law, the Planning and Zoning Law, requires each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city, which includes, among other mandatory elements, a housing element. For the 4th and subsequent revisions of the housing element, existing law requires the Department of Housing and Community Development, in consultation with each council of governments, to determine each region’s existing and projected need for housing, and requires the appropriate council of governments, or the department for cities and counties without a council of governments, to adopt a final regional housing plan that allocates a share of the regional housing need to each city, county, or city and county, as provided. Existing law authorizes at least 2 or more cities and a county, or counties, at least 28 months prior to the scheduled housing element revision, to form a subregional entity to allocate the subregion’s existing and projected housing need among its members. If the council of governments does not receive a notification of this formation at least 28 months prior to the update, existing law requires the council of governments to implement specified requirements regarding the regional housing need process. Existing law requires the council of governments to determine the share of regional housing need assigned to each delegate subregion at least 25 months prior to the scheduled revision. This bill, except with respect to the 7th housing element cycle for councils of governments with a housing element revision due date during the calendar year 2027 or 2027, 2028, or 2029, would extend the above-described timeline for cities and counties to form a subregional entity to allocate the subregion’s housing need, as provided, from 28 months to 34 months, and the above-described timeline for the council of governments to determine the share of regional housing need assigned to each subregion from 25 months to 31 months, respectively. (2) Existing law, at least 2 years before a scheduled revision of the housing element, as specified, requires each council of governments, or delegate subregion as applicable, to develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to jurisdictions, as specified. Existing law, at least 1 1 / 2 years before a scheduled revision of the housing element, as specified, requires each council of governments and delegate subregion, as applicable, to distribute a draft allocation of regional housing needs to each local government in the region or subregion, where applicable, and the department, as specified. This bill, except with respect to the 7th housing element cycle for councils of governments with a housing element revision due date during the calendar year 2027 or 2027, 2028, or 2029, would instead require that the above-described methodology be developed from at least 2 1 / 2 years before a scheduled revision of the housing element, and that the distribution of the draft allocation plan be made at least 2 years before a scheduled revision of the housing element, respectively. (3) This bill states that it is the intent of the Legislature to enact legislation that would assign housing element revision deadlines based on smaller regional groupings and local jurisdiction size, as recommended by the California State Auditor, as described. (3) Existing law requires each city, county, and city and county to, among other things, revise its housing element according to a specified schedule. Existing law generally requires local governments within the jurisdiction of certain metropolitan planning organizations or regional transportation planning agencies to update their housing elements 18 months after adoption of every 2nd regional transportation plan update, but not later than 8 years later than the deadline for adoption of the previous 8-year housing element, as specified. For subsequent revisions of the housing element after the 5th revision, existing law requires certain local governments to revise their housing elements at 5-year intervals, as specified. For the 7th revision and subsequent revisions of the housing element, existing law makes subsequent revisions due 24 months after the adoption of the 2nd regional transportation plan update for local governments within the jurisdiction of the Southern California Association of Governments, except as provided. This bill would instead generally require local governments within the above-described metropolitan planning organizations or regional transportation planning agencies to update their housing elements 18 months after the estimated adoption date of every 2nd regional transportation plan update, as specified. The bill would require the 8th revision of the housing elements for the certain local governments previously at 5-year intervals for the 7th revision, to be due by June 30, 2032. The bill would also require, for the 9th and subsequent revisions of the housing elements for those local governments, to be due 18 months after adoption of every 2nd regional transportation plan update, as provided. For the 8th and subsequent revisions, the bill would require a local government within the Southern California Association of Governments to adopt the revised housing no later than 8 years later than the deadline for adoption of the previous 8-year housing element. The housing element law requires a metropolitan planning organization or regional transportation planning agency that has an 8-year revision interval described above to notify the Department of Housing and Community Development and the Department of Transportation in writing of the estimated adoption date for its next regional transportation plan update at least 12 months before the estimated adoption date. This bill would instead require the above-described notification 24 months before the estimated adoption date. (4) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (4) (5) By requiring local officials to provide a higher level of service, the 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. It is the intent of Legislature to enact legislation that would assign housing element revision deadlines based on smaller regional groupings and local jurisdiction size, as recommended by the California State Auditor in Report 2024-109 California Department of Housing and Community Development: Increased Support Is Critical for Local Jurisdictions to Complete Timely Housing Plans (January 15, 2026). SEC. 2. SECTION 1. Section 65584.03 of the Government Code is amended to read: 65584.03. (a) At least 34 months prior to the scheduled housing element update required by Section 65588, at least two or more cities and a county, or counties, may form a subregional entity for the purpose of allocation of the subregion’s existing and projected need for housing among its members in accordance with the allocation methodology established pursuant to Section 65584.04. The purpose of establishing a subregion shall be to recognize the community of interest and mutual challenges and opportunities for providing housing within a subregion. A subregion formed pursuant to this section may include a single county and each of the cities in that county or any other combination of geographically contiguous local governments and shall be approved by the adoption of a resolution by each of the local governments in the subregion as well as by the council of governments. All decisions of the subregion shall be approved by vote as provided for in rules adopted by the local governments comprising the subregion or shall be approved by vote of the county or counties, if any, and the majority of the cities with the majority of population within a county or counties. (b) Upon formation of the subregional entity, the entity shall notify the council of governments of this formation. If the council of governments has not received notification from an eligible subregional entity at least 34 months prior to the scheduled housing element update required by Section 65588, the council of governments shall implement the provisions of Sections 65584 and 65584.04. The delegate subregion and the council of governments shall enter into an agreement that sets forth the process, timing, and other terms and conditions of the delegation of responsibility by the council of governments to the subregion. (c) At least 31 months prior to the scheduled revision, the council of governments shall determine the share of regional housing need assigned to each delegate subregion. The share or shares allocated to the delegate subregion or subregions by a council of governments shall be in a proportion consistent with the subregion’s share of the current adopted final regional housing need allocation plan. Prior to allocating the regional housing needs to any delegate subregion or subregions, the council of governments shall hold at least one public hearing, and may consider requests for revision of the proposed allocation to a subregion. If a proposed revision is rejected, the council of governments shall respond with a written explanation of why the proposed revised share has not been accepted. (d) Each delegate subregion shall fully allocate its share of the regional housing need to local governments within its subregion. If a delegate subregion fails to complete the regional housing need allocation process among its member jurisdictions in a manner consistent with this article and with the delegation agreement between the subregion and the council of governments, the allocations to member jurisdictions shall be made by the council of governments. (e) For the seventh housing element cycle, the changes to this section made by the act adding this subdivision shall not apply to councils of governments with a housing element revision due date during the calendar year 2027 or 2028. 2027, 2028, or 2029. SEC. 3. SEC. 2. Section 65584.04 of the Government Code is amended to read: 65584.04. (a) At least two and one-half years before a scheduled revision required by Section 65588, each council of governments, or delegate subregion as applicable, shall develop, in consultation with the department, a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, where applicable pursuant to this section. The methodology shall further the objectives listed in subdivision (d) of Section 65584. (b) (1) No more than six months before the development of a proposed methodology for distributing the existing and projected housing need, each council of governments shall survey each of its member jurisdictions to request, at a minimum, information regarding the factors listed in subdivision (e) that will allow the development of a methodology based upon the factors established in subdivision (e). (2) With respect to the objective in paragraph (5) of subdivision (d) of Section 65584, the survey shall review and compile information that will allow the development of a methodology based upon the issues, strategies, and actions that are included, as available, in an Analysis of Impediments to Fair Housing Choice or an Assessment of Fair Housing completed by any city or county or the department that covers communities within the area served by the council of governments, and in housing elements adopted pursuant to this article by cities and counties within the area served by the council of governments. (3) The council of governments shall seek to obtain the information in a manner and format that is comparable throughout the region and use readily available data to the extent possible. (4) The information provided by a local government pursuant to this section shall be used, to the extent possible, by the council of governments, or delegate subregion as applicable, as source information for the methodology developed pursuant to this section. The survey shall state that none of the information received may be used as a basis for reducing the total housing need established for the region pursuant to Section 65584.01. (5) If the council of governments fails to conduct a survey pursuant to this subdivision, a city, county, or city and county may submit information related to the items listed in subdivision (e) before the public comment period provided for in subdivision (d). (c) The council of governments shall electronically report the results of the survey of fair housing issues, strategies, and actions compiled pursuant to paragraph (2) of subdivision (b). The report shall describe common themes and effective strategies employed by cities and counties within the area served by the council of governments, including common themes and effective strategies around avoiding the displacement of lower income households. The council of governments shall also identify significant barriers to affirmatively furthering fair housing at the regional level and may recommend strategies or actions to overcome those barriers. A council of governments or metropolitan planning organization, as appropriate, may use this information for any other purpose, including publication within a regional transportation plan adopted pursuant to Section 65080 or to inform the land use assumptions that are applied in the development of a regional transportation plan. (d) Public participation and access shall be required in the development of the methodology and in the process of drafting and adoption of the allocation of the regional housing needs. Participation by organizations other than local jurisdictions and councils of governments shall be solicited in a diligent effort to achieve public participation of all economic segmen [Text truncated for display. Full text available on Congress.gov.]