AB2601 - Planning and zoning: housing development: streamlined approval and subdivisions.

Amended IN Senate August 21, 2026 Amended IN Senate August 13, 2026 Amended IN Assembly April 16, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 2601 Introduced by Assembly Member Lee February 20, 2026 An act to amend Sections 65852.21, 65852.28, 65913.4.5, 66411.7, and 66499.41 of 65852.21 and 65913.4.5 of, and to amend, repeal, and add Sections 65852.28, 66411.7, and 66499.41 of, the Government Code, relating to land use. LEGISLATIVE COUNSEL'S DIGEST AB 2601, as amended, Lee. Planning and zoning: housing development: streamlined approval and subdivisions. Under the Planning and Zoning Law, the legislative body of a city or county may adopt ordinances that, among other things, regulate the use of buildings, structures, and land, as provided. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps. Existing law requires a local agency to consider ministerially a proposed housing development containing no more than 2 residential units within a single-family residential zone, without discretionary review or a hearing, if the proposed housing development meets specified requirements. Existing law requires a local agency to ministerially approve a parcel map for an urban lot split if the parcel meets specified requirements. This bill would require that an application for a proposed housing development containing no more than 2 residential units within a single-family residential zone, as described above, be eligible for concurrent processing with an application for a parcel map for an urban lot split, as provided. The bill would authorize a local agency to condition issuance of building permits, grading permits, or certificates of occupancy for a proposed housing development upon the applicant first obtaining approval and recording a parcel map for eligible parcels pursuant to the above-described urban lot split provisions. The bill would specify that a “parcel map” for purposes of these provisions means a parcel map prepared in accordance with specified provisions of the Subdivision Map Act and may include a condominium plan if proposed by the subdivider, as specified. Existing law authorizes a development proponent to submit an application for a housing development project on a subdivided lot, as specified, that meets specified requirements, and requires a local agency to ministerially consider that application, as specified. Existing law requires a local agency to issue a building permit for one or more residential units on a lot proposed to be subdivided, as specified, if the applicant for the permit meets prescribed requirements. Existing law requires a local agency to ministerially consider, without discretionary review or a hearing, a parcel map or a tentative and final map for a housing development project that meets specified requirements, including that the proposed subdivision will result in 10 or fewer parcels and the housing development project on the lot proposed to be subdivided will contain 10 or fewer residential units, except as provided. This bill would require an application for a housing development project on a subdivided lot or an application for a building permit for one or more residential units on a lot proposed to be subdivided, as described above, to be eligible for concurrent processing with an application for a parcel map or a tentative and final map under the above-described subdivision provisions, as provided. The bill would authorize a local agency to condition issuance of building permits, grading permits, or certificates of occupancy for a proposed housing development under these provisions upon the applicant first obtaining approval and recording a parcel map for eligible parcels pursuant to the above-described subdivision provisions. This bill would incorporate additional changes to Section 65852.28 of the Government Code proposed by SB 1090 and SB 1116 to be operative only if this bill and either or both SB 1090 and SB 1116 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 66411.7 of the Government Code proposed by AB 2005 to be operative only if this bill and AB 2005 are enacted and this bill is enacted last. This bill would incorporate additional changes to Section 66499.41 of the Government Code proposed by SB 1090 and SB 1116 to be operative only if this bill and either or both SB 1090 and SB 1116 are enacted and this bill is enacted last. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 65852.21 of the Government Code, as amended by Section 7 of Chapter 56 of the Statutes of 2026, is amended to read: 65852.21. (a) A proposed housing development containing no more than two residential units within a single-family residential zone shall be considered ministerially, without discretionary review or a hearing, if the proposed housing development meets all of the following requirements: (1) The parcel subject to the proposed housing development is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau. (2) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4, as that section read on September 16, 2021. (3) Notwithstanding any provision of this section or any local law, the proposed housing development would not require demolition or alteration of any of the following types of housing: (A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (C) Housing that has been occupied by a tenant in the last three years. (4) The parcel subject to the proposed housing development is not a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (5) The development is not located in either the following: (A) A contributing structure within a historic district included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or historic property or district pursuant to a city or county ordinance. (B) A parcel individually listed as a historical resource included in the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a property individually designated or listed as a city or county landmark under a city or county ordinance. (b) (1) Notwithstanding any local law and except as provided in paragraphs (2) and (3), a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with this section. (2) (A) The local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area. (B) (i) Notwithstanding subparagraph (A), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. (ii) Notwithstanding subparagraph (A), in all other circumstances not described in clause (i), a local agency may require a setback of up to four feet from the side and rear lot lines. (3) A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the underlying zone. This subdivision shall not prevent a local agency from adopting or imposing objective zoning standards, objective subdivision standards, and objective design standards on development authorized by this section if those standards are more permissive than applicable standards within the underlying zone. (4) A local agency may adopt objective standards for the purposes of maintaining the historical value of a historic district listed in the California Register of Historical Resources. (c) In addition to any conditions established in accordance with subdivision (b), a local agency may require any of the following conditions when considering an application for two residential units as provided for in this section: (1) Offstreet parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances: (A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code. (B) There is a car share vehicle located within one block of the parcel. (2) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years. (d) Notwithstanding subdivision (a), a local agency may deny a proposed housing development project if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. (e) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days. (f) Notwithstanding Article 2 (commencing with Section 66314) or Article 3 (commencing with Section 66333) of Chapter 13, a local agency shall not be required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels that use both the authority contained within this section and the authority contained in Section 66411.7. (g) Notwithstanding subparagraph (B) of paragraph (2) of subdivision (b), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (h) (1) An application for a proposed housing development pursuant to this section shall be considered and approved or denied within 60 days from the date the local agency receives a completed application. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved. (2) If a permitting agency denies an application for a proposed housing development pursuant to paragraph (1), the permitting agency shall, within the time period described in paragraph (1), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. (3) (A) An application for a proposed housing development submitted pursuant to this section shall be eligible for concurrent processing with an application for a parcel map for an urban lot split submitted pursuant to Section 66411.7. (B) (i) Notwithstanding subparagraph (A), a local agency’s issuance of building permits, grading permits, or certificates of occupancy for a proposed housing development may be conditioned upon the applicant first obtaining approval and recording a parcel map for eligible parcels pursuant to Section 66411.7. (ii) A local agency may deem a building permit or other postentitlement permit application incomplete and require revisions to the building permit or other postentitlement permit in response to any comments from the local agency or other reviewing agencies regarding the parcel map’s compliance with applicable state or local development and building standards. (i) For purposes of this section, all of the following apply: (1) A housing development contains two residential units if the development proposes no more than two new units or if it proposes to add one new unit to one existing unit. (2) The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (3) “Local agency” means a city, county, or city and county, whether general law or chartered. (j) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code. (k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for a housing development pursuant to this section. SEC. 2. Section 65852.28 of the Government Code is amended to read: 65852.28. (a) A development proponent may submit an application for a housing development project on a lot that is subdivided pursuant to Section 66499.41 and that meets the requirements of this section. (b) (1) For any housing development on a lot that is subdivided pursuant to Section 66499.41, a local agency may impose objective zoning standards, objective subdivision standards, or objective design standards that are related to the housing development or to the d [Text truncated for display. Full text available on Congress.gov.]