California Enacts Landmark Housing Reform as Newsom Forces Through CEQA Overhaul
California Enacts Landmark Housing Reform as Newsom Forces Through CEQA Overhaul
California Governor Gavin Newsom has successfully pushed through groundbreaking housing reform legislation, fundamentally altering the state’s environmental review process and signaling a new era for development. The bills, passed on Monday and now immediately effective, are set to significantly accelerate housing construction across the state.
The newly enacted Assembly Bill 130 and Senate Bill 131 dramatically streamline the approval process by largely exempting most urban housing projects from the rigorous California Environmental Quality Act (CEQA) reviews. This move aims to cut through bureaucratic delays and litigation that have long stalled housing initiatives.
In a decisive maneuver, Governor Newsom tied the housing legislation directly to the state budget, compelling lawmakers to approve the measures to ensure the spending plan could go into effect on July 1. This tactic highlights Newsom’s intensified commitment to tackling California’s housing crisis, even as his term approaches its conclusion in early 2027.
Experts are calling these reforms the most significant changes to CEQA in its 55-year history, particularly for urban housing. Developers are reportedly eager to leverage the new rules, with some projects poised to break ground as early as today, Tuesday.
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