AB2433 - Housing development: density bonus.

Amended IN Senate August 20, 2026 Amended IN Senate August 10, 2026 Amended IN Senate June 29, 2026 Amended IN Assembly April 22, 2026 Amended IN Assembly April 07, 2026 Amended IN Assembly March 26, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2433 Introduced by Assembly Member Alvarez (Coauthors: Assembly Members Bryan and Wicks) February 20, 2026 An act to amend Section 65915 of the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 2433, as amended, Alvarez. Housing development: density bonus. (1) Existing law, commonly referred to as the Density Bonus Law, requires a city or county to grant a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, to an applicant for a housing development when the applicant seeks a density bonus for the housing development, as specified, if the applicant agrees to construct, among other things, a specified percentage of units for very low income, lower income, or senior citizen housing, and meets other requirements. This bill would, instead, require a city or county to grant a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, to an applicant for a housing development when the applicant submits an application for a housing development that a city, county, or city and county determines meets specified criteria, including, among others, the housing development includes specified percentage of units for very low income, lower income, or senior citizen housing. (2) Existing law defines density bonus for the purposes of the Density Bonus Law to mean a density increase over the otherwise base density, as specified. Existing law specifies the base density calculation standards and requires base density to be determined using dwelling units per acre, except as otherwise provided. For the purpose of calculating a density bonus, existing law requires the residential units to be on contiguous sites that are the subject of one development application, as specified. Existing law also requires the density bonus to be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located. This bill would allow an applicant who provides a base density study, as defined, to elect to receive a density bonus in the form of a percentage increase in maximum floor area ratio, as specified. The bill would create an additional exception to the requirement that base density be determined using dwelling units per acre for applicants who elect to provide a base density study. This bill would revise and recast the provisions related to permitting of a density bonus relative to the geographic area to instead require a density bonus, incentive, or concession, or waiver or reduction, on sites that are the subject of the same housing development, as specified. (3) Existing law requires a city or county to adopt procedures and timelines for processing a density bonus application and to notify the applicant for a density bonus whether the application is complete in a manner consistent with specified timelines. If the local government notifies the applicant that the application is deemed complete, this bill would require the city or county to provide the applicant with a determination that the project is eligible for a density bonus. (4) Existing law authorizes an applicant for a density bonus to submit to a city or county a proposal for the specific incentives or concessions that the applicant requests and requires the city or county to grant the concession or incentive requested by the applicant unless the city or county makes a certain written finding, based upon substantial evidence. Existing law specifies the number of incentives or concessions an applicant is eligible to receive based on certain criteria. This bill would make revisions to certain of those calculations related to incentives or concessions. (5) 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. Existing law specifies that the granting of a density bonus or incentive or concessions shall not require or be interpreted to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. Existing law also specifies that the granting of an incentive or concessions shall not require or be interpreted to require a study. This bill would specify that the granting of a waiver or reduction of development standards shall not require or be interpreted to require a general plan amendment, local coastal plan amendment, zoning change, study, or other discretionary approval. The bill would also specify that the granting of a density bonus, incentive or concession, or waiver or reduction of development standards shall not be discretionary. The bill would specify that the granting of a density bonus, incentive or concession, or waiver or reduction of development standards shall not require or be interpreted to require environmental review under CEQA. (6) 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. (7) This bill would incorporate additional changes to Section 65915 of the Government Code proposed by AB 2480, SB 1383, or both, to be operative only if this bill and AB 2480, SB 1383, or both, are enacted and this bill is enacted last. (7) (8) By imposing new requirements on local governments, 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. Section 65915 of the Government Code is amended to read: 65915. (a) (1) (A) When an applicant submits an application for a housing development that a city, county, or city and county determines meets at least one of the criteria described in paragraph (1) of subdivision (b) within, or includes the donation of land for housing within, the jurisdiction of a city, county, or city and county, that local government shall comply with this section. (B) A city, county, or city and county shall adopt an ordinance that specifies how compliance with this section will be implemented. Except as otherwise provided in subdivision (s), failure to adopt an ordinance shall not relieve a city, county, or city and county from complying with this section. (2) A local government shall not condition the submission, review, or approval of an application pursuant to this chapter on the preparation of an additional report or study that is not otherwise required by state law, including this section. This subdivision does not prohibit a local government from requiring an applicant to provide reasonable documentation to establish eligibility for a requested density bonus, as described in subdivision (b), and parking ratios, as described in subdivision (p). (3) In order to provide for the expeditious processing of a density bonus application, the local government shall do all of the following: (A) Adopt procedures and timelines for processing a density bonus application. (B) Provide a list of all documents and information required to be submitted with the density bonus application in order for the density bonus application to be deemed complete. This list shall be consistent with this chapter. (C) Notify the applicant for a density bonus whether the application is complete in a manner consistent with the timelines specified in Section 65943. (D) (i) If the local government notifies the applicant that the application is deemed complete pursuant to subparagraph (C), provide the applicant with a determination as to the following matters: (I) That the project is eligible for a density bonus and the amount of density bonus, calculated pursuant to subdivision (f), for which the applicant is eligible. (II) If the applicant requests a parking ratio pursuant to subdivision (p), the parking ratio for which the applicant is eligible. (III) If the applicant requests incentives or concessions pursuant to subdivision (d) or waivers or reductions of development standards pursuant to subdivision (e), whether the applicant has provided adequate information for the local government to make a determination as to those incentives, concessions, waivers, or reductions of development standards. (ii) Any determination required by this subparagraph shall be based on the development project at the time the application is deemed complete. The local government shall adjust the amount of density bonus and parking ratios awarded pursuant to this section based on any changes to the project during the course of development. (b) (1) A city, county, or city and county shall grant one density bonus, the amount of which shall be as specified in subdivision (f), and, if requested by the applicant and consistent with the applicable requirements of this section, incentives or concessions, as described in subdivision (d), waivers or reductions of development standards, as described in subdivision (e), and parking ratios, as described in subdivision (p), if an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this section, that will contain at least any one of the following: (A) Ten percent of the total units of a housing development, including a shared housing building development, for rental or sale to lower income households. (B) Five percent of the total units of a housing development, including a shared housing building development, for rental or sale to very low income households, as defined in Section 50105 of the Health and Safety Code. (C) A senior citizen housing development, as defined in Sections 51.3 and 51.12 of the Civil Code, or a mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code. For purposes of this subparagraph, “development” includes a shared housing building development and a residential care facility for the elderly, as defined in Section 1569.2 of the Health and Safety Code. (D) Ten percent of the total dwelling units of a housing development are sold to persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase. (E) Ten percent of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subparagraph are subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units. (F) (i) Twenty percent of the total units for lower income students in a student housing development that meets the following requirements: (I) All units in the student housing development shall be used exclusively for undergraduate, graduate, or professional students enrolled currently or in the past six months in at least six units at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. In order to be eligible under this subclause, the developer shall, as a condition of receiving a certificate of occupancy, provide evidence to the city, county, or city and county that the developer has done any one of the following: (ia) Entered into an operating agreement or master lease with one or more institutions of higher education for the institution or institutions to occupy all units of the student housing development with students from that institution or institutions. An operating agreement or master lease entered into pursuant to this subclause is not violated or breached if, in any subsequent year, there are insufficient students enrolled in an institution of higher education to fill all units in the student housing development. (ib) Established a system for confirming its renters’ status as students to ensure that all units of the student housing development are occupied with students from an institution of higher education. (II) The applicable units in the student housing development for lower income students shall be used for and occupied by lower income students. (III) The rent provided in the applicable units of the development for lower income students shall be calculated at 30 percent of 65 percent of the area median income for a single-room occupancy unit type. (IV) The development shall provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this subclause. (V) The student housing development is not located on a site that pursuant to paragraph (3) of subdivision (c) would require replacement units for projects with greater than a 35-percent density bonus. (ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this section means one rental bed and its pro rata share of associated common area facilities. The units described in this subparagraph are subject to a recorded affordability restriction of 55 years, which shall not tie any rental bed reserved for lower income students to a specific bedroom. Notwithstanding any other law, an affordability restriction provision, state or county law or policy, or property management policy sha [Text truncated for display. Full text available on Congress.gov.]