California 2025-2026 Regular Session

California Assembly Bill AB939

Introduced
2/19/25  
Refer
3/10/25  
Report Pass
1/5/26  
Refer
1/5/26  
Refer
1/5/26  
Report Pass
1/14/26  
Refer
1/16/26  
Report Pass
1/22/26  
Engrossed
1/29/26  

Caption

Housing development: density bonuses: affordability of for-sale units.

Impact

The proposed changes under AB 939 are designed to enhance compliance with existing housing affordability requirements while providing local governments with the framework needed to facilitate the development process effectively. By stipulating additional responsibilities for local agencies to implement these changes, the bill seeks to streamline the process of acquiring density bonuses, ultimately leading to increased housing accessibility for low-income and very low-income families across California's cities and counties. Local agencies are required to adopt ordinances to ensure this compliance, which could promote uniformity in application across the state.

Summary

Assembly Bill 939, introduced by Assembly Member Schultz, proposes amendments to the Density Bonus Law under Section 65915 of the Government Code, which aims to encourage housing development that includes affordable units for lower-income populations. The bill mandates local governments to provide density bonuses—an increase in the allowable number of housing units per acre—along with various incentives to developers who commit to constructing housing for very low, low, or moderate-income residents. It also allows for the participation of nonprofit housing corporations, which can benefit from the density bonus by purchasing unsold units designated for low-income families and making them accessible through below-market interest rate loan programs.

Sentiment

The sentiment surrounding AB 939 appears to be largely supportive among advocates for affordable housing, who see it as a much-needed step toward addressing the housing crisis in California. However, there may be concerns from local governments about the potential strain on resources and additional administrative burdens placed on them to enforce the new requirements. The incorporation of nonprofit housing entities is viewed favorably as it broadens the spectrum of stakeholders engaged in combatting housing shortages and ensures units remain affordable. Nonetheless, some stakeholders may be apprehensive about how these changes might impact local governance.

Contention

Points of contention primarily revolve around the balance of authority between state mandates and local governance. Supporters argue that the changes will enhance the effectiveness of the Density Bonus Law in addressing urgent housing needs, while opponents might contend that it imposes undue pressure on local agencies without adequate state support or compensation for the costs incurred. There is also discussion regarding ensuring that these measures do not lead to negative implications for existing neighborhoods or local businesses, as the push for higher-density developments may alter community dynamics.

Companion Bills

No companion bills found.

Previously Filed As

CA SB92

Housing development: density bonuses.

CA AB87

Housing development: density bonuses.

CA AB2480

Housing development: density bonus: student housing developments.

CA AB2433

Housing development: density bonus.

CA AB945

Density Bonus Law: incentives and concessions: green housing developments.

CA SB1383

Housing development: density bonus: incentives or concessions: labor standards.

CA SB79

Housing development: transit-oriented development.

CA AB1710

Housing developments: ordinances, policies, and standards.

CA SB677

Housing development: transit-oriented development.

CA AB1294

Planning and zoning: housing development: standardized application form.

Similar Bills

No similar bills found.