New California Housing Laws for 2025 / by Valerie Puchades

AERO rounds up the latest housing laws that will have the most impact on multi-family housing development projects in LA. These updates provide key changes to regulations that directly affect housing development, including fees, zoning, entitlements, and more. Stay informed about these important updates to ensure your projects remain compliant and benefit from new opportunities.

AB 1820

Local agencies must provide developers with a good faith estimate of all fees and exactions within 30 business days of submitting an SB 330 preliminary application and again, as an itemized list, within 30 business days of project approval.

This means developers will get a full accounting of fees early on in the entitlement process.

AB 1893

In response to the recent rise in builder’s remedy projects, this bill establishes clearer legal pathways while introducing new regulations to manage their growth. It also implements significant updates to the Housing Accountability Act, a cornerstone of California’s housing policy.

AB 2553

This broadens the definition of a major transit stop to include 20-minute headways, increasing properties eligible for streamlined processes and parking requirement exemptions.

Reach out if you have a site that may qualify for the expanded coverage, and we can discuss how CHIP in the City of Los Angeles may impact this.

AB 2729

The expiration period for housing entitlements is extended by 18 months for entitlements issued before January 1, 2024, and expiring before December 31, 2025, with some exceptions.

AB 3177

This bill limits local agencies’ ability to require land dedication for roadway widening in housing projects.

SB 937

Impact fee payments for housing projects are deferred until final inspection or certificate of occupancy, with exceptions.

This is a really interesting state law, and we are excited to see how it is implemented. Impact fees play a big role in the early financing of a new development.

SB 1211

Up to 8 detached ADUs are permitted on lots with existing multifamily dwellings, as long as the number of ADUs does not exceed the number of existing units.

In the new year, we will be reviewing the finalized City of Inglewood objective design guidelines and the new inclusionary housing requirements. Coming Q1 2025

Reach out to better understand these new housing laws in the context of your project, and read our post on CHIP to learn how this program impacts development projects.