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