California Governor Gavin Newsom has unveiled a proposal to accelerate housing development by removing regulatory barriers and streamlining the permit approval process. This initiative, part of the May Budget Revision, attempts to address delays in housing construction, particularly in high-demand coastal and urban areas.

A central feature of the proposal is the alignment of the California Coastal Commission’s permitting timelines with those of other state agencies. Currently, the California Coastal Commission is exempt from deadlines otherwise specified in the Permit Streamlining Act (Gov. Code, § 65920 et seq.) for housing permits when acting as a responsible agency. The proposal plans to remove these exemptions and would require the Coastal Commission to comply with the same permitting timelines as other agencies.

The proposal also plans to introduce new financing mechanisms that link vehicle miles traveled (VMT) reduction requirements with housing production near public transit. Developers could meet VMT mitigation requirements by paying a set fee into a fund managed by the Department of Housing and Community Development. This fund would then be used to finance affordable housing projects near transit. The initiative attempts to build upon previous housing efforts in the state, including Senate Bill 607 (Wiener), which clarifies the exemption for infill projects within CEQA Guidelines § 15332. The proposal and associated fact sheet can be found HERE.

Mitchell Chadwick attorney Joe Knadler contributed to this article.

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