CHICAGO — Governor Gavin Newsom today signed AB 130 into law, following bipartisan approval by the California State Assembly. The new law streamlines processes for housing development in urban areas, which is part of a broader effort to increase the pace of affordable housing construction in the state.

AB 130 exempts most infill housing projects under 20 acres – developments within existing urban areas – from review under the California Environmental Quality Act (CEQA). It also simplifies rezoning for cities, allowing sites like vacant lots or commercial properties to be converted more easily into housing. In practice, AB 130 rightsizes protections to unlock housing the state needs by cutting unnecessary red tape and reducing administrative burdens for affordable housing.

“California just showed the country what’s possible when elected leaders cut through bureaucracy and partisanship and actually get things done,” said Sam Oliker-Friedland, executive director of Institute of Responsive Government. “We applaud Governor Newsom and the California State Legislature — with special thanks to Assemblymember Wicks and Senator Weiner — for recognizing that California’s housing crisis demands bold action and that effective government doesn’t equate to slow government.”

“This is one of the most important housing reforms in a generation, not because it guts oversight, but because it clears the way for solutions. Other states that are seriously considering reducing red tape can and should follow suit,” Oliker-Friedland added.

Passage of AB 130 comes as leaders have sought to address a critical housing shortage in the state. The governor set a statewide goal of building 2.5 million housing units by 2030 to keep up with the population, which rounds out to roughly 315,000 units per year. However, over the past few years, less than 125,000 units were added annually, coming drastically shy of the goal intended to tackle unaffordable rent and sky high homelessness rates. In fact, in recent years, the state of housing has driven constituents away from California. California is poised to lose five Congressional seats in the next census.

AB 130 is being lauded as the most significant overhaul of California’s housing and environmental review laws in decades.

To speak with Sam Oliker-Friedland or other Responsive Gov policy experts about cutting red tape and creating more efficient permitting processes in California and beyond, please contact dan@responsivegov.org.

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The Institute for Responsive Government is a nonpartisan nonprofit dedicated to ensuring state and federal governments work effectively for the very people they serve. The Institute for Responsive Government provides data, research, and expertise to elected officials in order to find practical policy solutions that make government systems more efficient, accessible, and responsive.