New Laws Take effect - AB 1893 & 1886
Danielle Davenport
Davenport Group | RE Portfolio Management Entitlement, Development, and Investment. Offering Land Acquisition & Use Consulting, Disposition. Site(s) Selection to Build Out to Asset Management.
California law mandates that cities and counties must regularly plan for housing development by creating and adopting housing elements that align with state requirements. If a city or county fails to adopt a legally compliant housing element or misses the deadline, they face a key consequence: the "Builder's Remedy."
Assembly Bill (AB) 1893 clarifies that the "Builder's Remedy" is an intentional outcome when local governments do not meet housing plan obligations. Starting January 1, 2025, Builder's Remedy projects will be subject to new regulations, including site limitations, density caps, and adherence to objective local standards. In return for these restrictions, AB 1893 reduces certain affordability requirements and provides applicants more protection against common opposition tactics.
Current Builder's Remedy projects that comply with the new rules will be automatically safeguarded, while those that do not can "convert" to AB 1893 by redesigning without losing their eligibility. Vested projects can also choose to operate under the previous regulations. A related bill, AB 1886, strengthens the position of existing and future Builder's Remedy projects by invalidating many legal arguments that jurisdictions opposed to these projects often use to block them.
With AB 1893 and AB 1886, the Legislature has conclusively settled the question of whether the Builder's Remedy is an intended outcome of noncompliance with housing element requirements and has removed many of the tools local governments use to hinder these projects. At the same time, the Legislature has signaled a preference for projects that align with the new guidelines set by AB 1893. Applicants with existing Builder's Remedy projects should carefully assess whether those projects meet AB 1893's requirements and, if not, whether it would be beneficial and feasible to convert them. Additionally, AB 1893 introduces other amendments to the Housing Accountability Act (HAA) that affect non-Builder's Remedy projects as well.