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AB-2741 • 2026

Housing element: inventory of land: substantial compliance.

Housing element: inventory of land: substantial compliance.

Housing Land
Passed Legislature

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

Sponsor
Muratsuchi
Last action
2026-04-23
Official status
Read second time and amended.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the requirements for clear rules about home numbers or types within special zoning areas, nor does it explicitly state that local governments must explain why their new zoning plans will help with housing needs and affordability beyond providing a written explanation of housing and affordability incentives.

Housing Element: Inventory of Land and Zoning Requirements

This law allows cities and counties to use specific zoning types like 'affordable housing overlay zones' or 'mixed-use zones' for residential development, updates rules about when a city's or county's housing plan is considered compliant with the required laws, and applies these provisions only to the sixth revision cycle of housing elements and retroactively from January 1, 2019.

What This Bill Does

  • Allows cities and counties to use zoning classifications like 'affordable housing overlay zones' or 'mixed-use zones' that permit owner-occupied and rental multifamily residential use with specified minimum density and development standards.
  • Requires local governments to provide a written explanation of the housing and affordability incentives of these zoning classifications.
  • Permits this zoning classification to allow a mix of uses if it meets prescribed requirements.
  • If a court finds a city's or county's housing plan is not following the law, it still counts as following the law until either 275 days after the court order or when the department says it meets the requirements again.

Who It Names or Affects

  • Cities and counties in California that need to plan for new homes.
  • People who want to build affordable housing projects.

Terms To Know

Housing element
A part of a city or county's land use plan that focuses on where people can live and how many homes are needed for different income levels.
Affordable housing overlay zone
An area within a city or town where special rules apply to make it easier to build affordable homes.

Limits and Unknowns

  • The bill only applies to the sixth revision cycle of housing elements and retroactively from January 1, 2019.
  • It does not change how cities and counties must plan for future housing needs beyond this specific period.

Bill History

  1. 2026-04-23 California Legislative Information

    Read second time and amended.

  2. 2026-04-22 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on L. GOV. (Ayes 9. Noes 0.) (April 22).

  3. 2026-03-23 California Legislative Information

    Re-referred to Com. on H. & C.D.

  4. 2026-03-19 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

  5. 2026-03-19 California Legislative Information

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

  6. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  7. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2741, as amended, Muratsuchi.
Housing element: inventory of land: substantial compliance.
The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law requires the housing element to include, among other things, an inventory of land suitable and available for residential development. Existing law requires a city or county, based on that inventory of land, to determine whether each site in the inventory can accommodate the development of some portion of its share of the regional housing need by income level during the planning period, as provided. Existing law requires local governments to rezone sites according to a specified program if the inventory of sites suitable and available for residential development does not identify adequate sites to accommodate the need for groups of all household income levels. Existing law requires that program to
accommodate 100% of the need for housing for specified lower income households on sites required to be zoned to permit owner-occupied and rental multifamily residential use, as provided, and requires these sites to be zoned with specified minimum density and development standards, as provided.
This bill would provide that these zoning requirements would be met by applying a zoning classification, including, but not limited to, an
affordable housing
overlay zone,
mixed-use zone, combining district, or similar zone
that permits owner-occupied and rental multifamily residential use with the above-described minimum density and development standards, as specified. The bill would require a program that includes application of this zoning classification to include a written
explanation of the housing and affordability incentives of the zoning classification. The bill would permit this zoning classification to allow a mix of uses if it meets prescribed requirements. The bill would define key terms for these purposes.
The bill would apply these provisions only to the 6th housing element revision cycle and retroactively to January 1, 2019.
Existing law, commonly referred to as the Housing Element Law, prescribes requirements for a city’s or county’s preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the Housing Element Law, as specified. Existing law provides that a housing element or amendment is considered substantially compliant with the Housing Element Law when the local agency
has adopted a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the Housing Element Law, and the department’s compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the court’s decision has not been overturned or superseded by a subsequent court decision or by statute.
Existing law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households unless the local agency makes written findings as to one of certain sets of conditions, as specified. One set of conditions is that (1) the jurisdiction has adopted a housing element that is in substantial compliance with the Housing
Element Law, and (2) the jurisdiction has met or exceeded its share of the regional housing need allocation for the planning period for the income category proposed for the housing development project. Existing law requires a housing element or amendment to be considered in substantial compliance with the Housing Element Law only if the element or amendment was determined to be in substantial compliance when a preliminary application or complete application was submitted, as specified.
This bill would require, if a court of competent jurisdiction finds an adopted housing element or amendment to be to be out of compliance despite the department’s findings of substantial compliance, that the housing element or amendment be considered in substantial compliance until either the date the department finds that a newly adopted housing element or amendment is in substantial compliance, or 275 days after a court order, writ, or judgment is issued requiring the local agency
to bring its housing element into substantial compliance, whichever is earlier.

Current Bill Text

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