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AB-2433 • 2026

Housing development: density bonus.

Housing development: density bonus.

Education Housing Land
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Alvarez
Last action
2026-04-23
Official status
Re-referred to Com. on APPR.
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide exact details on the changes in calculations for incentives or concessions.

Housing Development: Density Bonus

This law changes the criteria for cities and counties to grant density bonuses to developers who build affordable housing, updates definitions of income levels included in moderate-income households, revises how density bonuses are applied across a development project, requires clear timelines and decisions from local governments on applications, adjusts calculations related to incentives or concessions, and exempts certain housing projects from some environmental review processes.

What This Bill Does

  • Changes the criteria for cities and counties to grant density bonuses based on an application meeting specified requirements, including building units for low-income households.
  • Expands the definition of moderate-income households to include lower income, very low income, and extremely low income households.
  • Revises how density bonuses are applied across a development project to ensure they apply to all sites within the same housing development.
  • Requires cities and counties to provide clear timelines and decisions about density bonus applications.
  • Adjusts calculations related to incentives or concessions for developers applying for density bonuses.
  • Exempts certain housing projects from some environmental review processes if they meet specific affordability requirements.

Who It Names or Affects

  • Developers who want to build more units in their housing developments.
  • Local government agencies that handle housing development applications.
  • People looking for affordable housing.

Terms To Know

Density Bonus
An increase in the number of housing units allowed on a piece of land, given to developers who build affordable housing.
Moderate-income Household
A household that earns an income considered moderate compared to local standards and now includes lower income, very low income, and extremely low income households.

Limits and Unknowns

  • The bill does not specify the exact amount of density bonus increase.
  • It is unclear how this will affect existing housing projects or applications that have already been submitted.

Bill History

  1. 2026-04-23 California Legislative Information

    Re-referred to Com. on APPR.

  2. 2026-04-22 California Legislative Information

    Read second time and amended.

  3. 2026-04-21 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 1.) (April 20).

  4. 2026-04-16 California Legislative Information

    From committee: Do pass and re-refer to Com. on NAT. RES. (Ayes 10. Noes 0.) (April 15). Re-referred to Com. on NAT. RES.

  5. 2026-04-13 California Legislative Information

    (Pending re-refer to Com. on NAT. RES.)

  6. 2026-04-13 California Legislative Information

    Assembly Rule 56 suspended.

  7. 2026-04-08 California Legislative Information

    Re-referred to Com. on L. GOV.

  8. 2026-04-07 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

  9. 2026-04-06 California Legislative Information

    Re-referred to Com. on L. GOV.

  10. 2026-03-26 California Legislative Information

    Read second time and amended.

  11. 2026-03-25 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on L. GOV. (Ayes 12. Noes 0.) (March 25).

  12. 2026-03-09 California Legislative Information

    Referred to Coms. on H. & C.D., L. GOV. and NAT. RES.

  13. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  14. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2433, as amended, Alvarez.
Housing development: density bonus.
(1) Existing law, commonly referred to as the Density Bonus Law, requires a city or county to grant a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, to an applicant for a housing development when the applicant seeks a density bonus for the housing development, as specified, if the applicant agrees to construct, among other things, a specified percentage of units for very low income, lower income, or senior citizen housing, and meets other requirements.
This bill would, instead, require a city or county to grant a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, to an applicant for a housing development when the applicant submits an application for a housing development that a city, county, or
city and county determines meets specified criteria, including, among others, the housing development includes specified percentage of units for very low income, lower income, or senior citizen housing.
(2) Existing law defines various terms for the purposes of the Density Bonus Law, including, among others, moderate-income households, lower income households, and very low income households.
This bill would provide that the definition of moderate-income household includes lower income households, very low income households, and extremely low income households, as defined.
(3) Existing law defines density bonus for the purposes of the Density Bonus Law to mean a density increase over the otherwise base density, as specified. Existing law specifies the base density calculation standards and requires base density to be determined using
dwelling units per acre, except as otherwise provided. For the purpose of calculating a density bonus, existing law requires the residential units to be on contiguous sites that are the subject of one development application, as specified. Existing law also requires the density bonus to be permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
This bill would revise and recast the provisions related to permitting of a density bonus relative to the geographic area to instead require a density bonus, incentive, or concession, or waiver or reduction, on sites that are the subject of the same housing development, as specified.
(4) Existing law requires a city or county to adopt procedures and timelines for processing a density bonus application and to notify the applicant for a density bonus whether the application is
complete in a manner consistent with specified timelines.
If the local government notifies the applicant that the application is deemed complete, this bill would require the city or county to provide the applicant with a determination that the project is eligible for a density bonus.
(5) Existing law authorizes an applicant for a density bonus to submit to a city or county a proposal for the specific incentives or concessions that the applicant requests and requires the city or county to grant the concession or incentive requested by the applicant unless the city or county makes a certain written finding, based upon substantial evidence. Existing law specifies the number of incentives or concessions an applicant is eligible to receive based on certain criteria.
This bill would make revisions to certain of those calculations related to incentives or
concessions.
(6) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. Existing law exempts from CEQA any aspect of a housing development project, as defined, including any permits, approvals, or public improvements required for the housing development project if the housing development project meets
specified conditions, including, among other things, the project is consistent with the applicable general plan and zoning ordinance, as well as any applicable local coastal program.
This bill would require a housing development project that satisfies the requirements related to the above-described CEQA exemption and is eligible for a density bonus, incentives or concessions, and waivers or reductions of development standards for purposes of the Density Bonus Law and meets other affordability requirements to be a use by right and subject to ministerial review.
(7) Existing law specifies that the granting of a density bonus or incentive or concessions shall not require or be interpreted to require a general plan amendment, local coastal plan amendment, zoning change, or other discretionary approval. Existing law also specifies that the granting of an incentive or concessions shall not require or be
interpreted to require a study.
This bill would specify that the granting of a waiver or reduction of development standards shall not require or be interpreted to require a general plan amendment, local coastal plan amendment, zoning change, study, or other discretionary approval. The bill would also specify that the granting of a density bonus, incentive or concession, or waiver or reduction of development standards shall not be discretionary. The bill would specify that the granting of a density bonus, incentive or concession, or waiver or reduction of development standards shall not require or be interpreted to require environmental review under CEQA.
(8) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(9) By imposing new requirements on local governments, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

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