Overview
California’s housing crisis continues to drive legislative reform, and 2025 marks a significant turning point. The state enacted sweeping legal changes aimed at speeding up housing development, reducing regulatory barriers, and holding cities more accountable. Two cornerstone laws—AB 130 and SB 131—were signed into law on June 30, 2025, and are now in effect. These laws create a more streamlined, transparent path to housing approvals while offering predictability for developers and property owners.
Key Legal Changes in 2025
🏗️ Expanded CEQA Exemptions
One of the most impactful updates is the expansion of California Environmental Quality Act (CEQA) exemptions. CEQA, while essential for environmental review, has historically slowed or blocked housing projects due to lengthy and complex processes.
Now exempt from CEQA review:
- Infill housing near transit
- Farmworker housing
- Childcare centers
- Mixed-use projects on urbanized land
- Projects in Housing Element-compliant cities
This opens the door for faster approvals and lower costs for developers and landlords.
⏱️ Permit Processing Timelines
Under the new laws, agencies have a strict 60-day “shot clock” to approve or deny qualifying housing developments. This brings much-needed accountability to the development timeline and limits bureaucratic delays.
🧱 Building Code Freeze
California’s state and local building codes are now frozen for six years (with narrow exceptions for life-safety updates). This halts the yearly updates that often lead to:
- Increased construction costs
- Redesigns mid-project
- Higher permit fees
Developers and investors now enjoy stability and can plan with greater financial accuracy.
Practical Implications for Housing Operators
- Faster project timelines mean rental units may enter the market more quickly.
- Lower risk of costly delays caused by environmental litigation or policy reversals.
- Municipal accountability for blocking or stalling needed development has increased, including legal consequences for non-compliance with Housing Elements or state mandates.
Important Dates to Watch
| Timeline | Requirement |
| Now | CEQA exemptions in effect |
| Within 60 days of application | Local agencies must approve/deny qualifying permits |
| Through 2031 | No new state/local building code updates (excluding emergencies) |