(a)
(1)
Notwithstanding any other law, a capital development project funded, in whole or in part, pursuant to Section 5892 shall be a use by right that shall be subject to the streamlined, ministerial review process, pursuant to subdivision (b), if it meets all of the following criteria:
(A)
(i)
Affordable housing shall be located in a zone where multifamily residential, office, retail, or parking are a principally permitted use.
Nothing here shall be construed to limit other housing interventions pursuant to Section 5830 that conform to existing zoning.
(ii)
The intent of capital development funding is to prioritize the production of housing that provides long-term housing stability.
(B)
At least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(C)
It satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4 of the Government Code.
(D)
It is not on a site or
adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use.
(E)
The development will meet the following objective zoning standards, objective subdivision standards, and objective design review standards:
(i)
For affordable housing, the applicable objective standards shall be those for the zone that allows residential use at a greater density between the following:
(I)
The existing zoning designation for the parcel if existing zoning allows for residential use.
(II)
The zoning designation for the closest parcel that allows residential use at a density deemed appropriate to accommodate housing for lower income households in that jurisdiction as specified in paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code.
(ii)
The applicable objective standards shall be those in effect at the time that the development application is submitted to the local government pursuant to this article.
(iii)
A development proposed pursuant to this section shall be eligible for the same density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios applicable to a project that meets the criteria specified in subparagraph (G) of
paragraph (1) of subdivision (b) of Section 65915 of the Government Code.
(F)
No housing units were acquired by eminent domain.
(G)
The housing units will be in decent, safe, and sanitary condition at the time of their occupancy.
(H)
The project meets the labor standards contained in Sections 65912.130 and 65912.131 of the Government Code.
(I)
The project provides housing for individuals who meet the criteria specified in subdivision (a) of Section 5830 and their families.
(J)
Affordable housing shall require long-term covenants and restrictions require the housing units to be restricted to
persons who meet the criteria specified in subdivision (a) for no fewer than 30 years.
(2)
(A)
For purposes of this subdivision, parcels only separated by a street or highway shall be considered to be adjoined.
(B)
For purposes of this subdivision, “dedicated to industrial use” means any of the following:
(i)
The square footage is currently being used as an industrial use.
(ii)
The most recently permitted use of the square footage is an industrial use.
(iii)
The site was designated for industrial use in the latest version of a local government’s general plan adopted before January
1, 2022.
(b)
The project shall be subject to the following streamlined, ministerial review process:
(1)
(A)
If the local government determines that a development submitted pursuant to this article is consistent with the objective planning standards specified in this article, it shall approve the development.
(B)
If a local government determines that a development submitted pursuant to this article is in conflict with any of the objective planning standards specified in this article, it shall provide the development proponent written documentation of which standard or standards the development conflicts with, and an explanation for the reason or reasons the development conflicts with that
standard or standards, within the following timeframes:
(i)
Within 60 days of submission of the development proposal to the local government if the development contains 150 or fewer housing units.
(ii)
Within 90 days of submission of the development proposal to the local government if the development contains more than 150 housing units.
(C)
If the local government fails to provide the required documentation pursuant to subparagraph (B), the development shall be deemed to satisfy the required objective planning standards.
(D)
(i)
For purposes of this section, a development is consistent with the objective planning standards if there is
substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(ii)
For purposes of this section, a development is not in conflict with the objective planning standards solely on the basis that application materials are not included, if the application contains substantial evidence that would allow a reasonable person to conclude that the development is consistent with the objective planning standards.
(E)
The determination of whether a proposed project submitted pursuant to this section is or is not in conflict with the objective planning standards is not a “project” as defined in Section 21065 of the Public Resources Code.
(2)
Design
review of the development may be conducted by the local government’s planning commission or any equivalent board or commission responsible for design review. That design review shall be objective and be strictly focused on assessing compliance with criteria required for streamlined, ministerial review of projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local jurisdiction before submittal of the development to the local government, and shall be broadly applicable to developments within the jurisdiction. That design review shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable:
(A)
Within 90 days of submittal of the development proposal to the local government pursuant to
this section if the development contains 150 or fewer housing units.
(B)
Within 180 days of submittal of the development proposal to the local government pursuant to this section if the development contains more than 150 housing units.
(c)
Division 13 (commencing with Section 21000) of the Public Resources Code shall not apply to actions taken by the Department of Housing and Community Development, the State Department of Health Care Services, or a local agency not acting as the lead agency to provide financial assistance or insurance for the development and construction of projects built pursuant to this section.
(d)
The applicant shall file a notice of exemption with the Office of Planning and Research and the
county clerk of the county in which the project is located in the manner specified in subdivisions (b) and (c) of Section 21152 of the Public Resources Code.
(e)
For purposes of this section, the following definitions shall apply:
(1)
“Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official before submittal. These standards may be embodied in alternative objective land use specifications adopted by a city or county, and may include, but are not limited to, housing
overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances.
(2)
“Use by right” means a development project that satisfies both of the following conditions:
(A)
The development project does not require a conditional use permit, planned unit development permit, or other discretionary local government review.
(B)
The development project is not a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
(f)
This section shall become operative on July 1, 2026, if amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary
election.
