CEQA Streamlining Districts

Overview

With affordable housing being one of California’s top priorities, there are currently several policies and strategies available to support and incentivize local governments to increase affordable housing production across the state. CEQA streamlining districts have become a key strategy to increase and incentivize affordable housing by streamlining the CEQA review process. This section focuses on two types of CEQA streamlining districts: Housing Sustainability Districts and Workforce Housing Opportunity Zones.

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Housing Sustainability Districts

Assembly Bill 73 (2018) allows jurisdictions to establish Housing Sustainability Districts (HSDs) that increase housing near public transportation. The area an HSD covers must be zoned to allow residential use through the ministerial issuance of a permit. A city or county must create an ordinance to establish an HSD and create an Environmental Impact Report (EIR) for the District. If certain criteria are met, EIRs will not be required for the individual housing projects developed within an HSD, providing an opportunity for streamlined CEQA review. A city or county that establishes an HSD is eligible to receive financial support from the State based on the number of housing units developed within the District. 20% of the housing units developed within an HSD must be affordable to households at or below moderate income. Additionally, prevailing wage must be used, and a skilled workforce must be employed for all projects within an HSD.

More information on Housing Sustainability Districts can be found at
https://www.hcd.ca.gov/policy-research/lhp.shtml

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Workforce Housing Opportunity Zones

Senate Bill 540 (2017) authorizes jurisdictions to establish Workforce Housing Opportunity Zones (WHOZs) to increase affordable housing near public transportation and jobs. To establish a WHOZ, a city or county must adopt a specific housing development plan and create an Environmental Impact Report (EIR) for the WHOZ. If specific criteria are met, EIRs for the individual housing development projects within the WHOZ will not be required. A city or county may apply for a no-interest loan or grant from the State to help fund the specific plan and EIR required to establish a WHOZ. Within five years after adopting the specific housing development plan, a jurisdiction must approve a project that satisfies the plan’s criteria. WHOZs have specific housing requirements: 50% of total housing units must be rented or sold to households at or below moderate-income, 10% of total units within a housing development must be affordable to lower income households, and no more than 50% of total housing units can be rented or sold to above moderate-income households. Additionally, like HSDs, WHOZs are subject to prevailing wages.

More information on Workforce Housing Opportunity Zones can be found at
https://www.hcd.ca.gov/policy-research/lhp.shtml