California 2025-2026 Regular Session

California Assembly Bill AB2118

Introduced
2/18/26  
Refer
3/9/26  
Report Pass
4/8/26  
Refer
4/8/26  
Report Pass
4/23/26  
Refer
4/28/26  
Report Pass
5/6/26  
Engrossed
5/27/26  
Refer
5/28/26  

Caption

An act to amend Sections 65912.101 and 65912.123 of the Government Code, relating to housing.

Summary

AB 2118 would amend the Affordable Housing and High Road Jobs Act of 2022 to expand and clarify the rules for certain mixed-income housing projects that qualify for streamlined, ministerial “use by right” approval along commercial corridors. The bill makes several technical and substantive changes to the objective standards that projects must meet, including expressly barring local objective standards from prohibiting or otherwise limiting mixed-use development within a housing project. It also revises the definition of “use by right” so that the CEQA exemption applies when any required state or local permit or approval is not treated as a project under CEQA. The bill also updates and restates a detailed set of eligibility and development standards for projects under the act, including density, height, setbacks, parking, freeway-adjacent air filtration, separation from oil and gas extraction/refining facilities, and relocation assistance for certain small commercial tenants displaced by development. It includes findings that the legislation addresses a matter of statewide concern and therefore applies to charter cities as well as other local governments. The bill also declares that no state reimbursement is required for local costs associated with the mandate. In practical terms, AB 2118 would strengthen state-level housing streamlining by limiting local discretion over mixed-use components and by reinforcing the act’s ministerial approval framework. It would affect cities and counties that review qualifying projects, as well as developers seeking to use the streamlined process and small businesses that may be entitled to relocation assistance if their leases are not renewed because of a project. Because the bill changes the criteria local agencies must follow, it is described as imposing a state-mandated local program. The overall sentiment reflected in the available voting history is strongly favorable. The bill received unanimous “do pass” votes in committee, first 12-0 and then 12-0 as amended, and it advanced to Appropriations. That pattern suggests broad committee support and little visible opposition at the committee stage. The main point of contention suggested by the bill text is the balance between housing production and local control. Supporters are likely to favor the bill’s pro-housing streamlining and its protection for mixed-use development, while potential critics may object to the limits it places on local objective standards, the CEQA-related changes, and the extent to which it overrides local zoning discretion, including in charter cities. The commercial tenant relocation provisions may also draw attention from both housing advocates and small business interests, since they create new protections but also confirm that redevelopment can displace existing tenants.

Impact

AB 2118 would amend Government Code Sections 65912.101 and 65912.123 within the Affordable Housing and High Road Jobs Act of 2022. It would change the statutory definition of “use by right” to clarify that the CEQA exemption applies when any required state or local permit or approval is not a CEQA project, and it would add a new rule that objective standards cannot prohibit or otherwise limit mixed-use development in qualifying housing projects. The bill would also reinforce that the act applies statewide, including to charter cities, and would continue the no-reimbursement declaration for local agencies and school districts.

Sentiment

The bill appears to have received positive treatment in committee, with two unanimous 12-0 votes to move it forward, including one vote “do pass as amended” and referral to Appropriations. No committee transcript was provided, but the voting record suggests broad agreement on the bill’s housing-streamlining goals and little formal opposition at the committee stage.

Contention

The central policy tension is between accelerating housing production and preserving local land-use control. The bill narrows local discretion by prohibiting objective standards from limiting mixed-use development and by reinforcing ministerial, CEQA-exempt processing for qualifying projects. Likely areas of concern include impacts on charter city authority, the scope of the CEQA exemption, and whether the bill’s detailed development standards and relocation requirements are sufficient to offset displacement of existing commercial tenants. Small business advocates may focus on the relocation assistance provisions, while local governments and land-use opponents may object to the preemption of local standards.

Companion Bills

No companion bills found.

Previously Filed As

CA AB1131

An act to amend Section 65400 of the Government Code, relating to housing.

CA SB606

An act to add Section 50224 to the Health and Safety Code, relating to housing.

CA SB16

An act to amend Section 5121 of the Welfare and Institutions Code, relating to mental health.

CA SB477

An act to amend Sections 12926, 12960, 12965, and 12981 of the Government Code, relating to civil rights.

CA AB610

Housing element: governmental constraints: disclosure statement.

CA SB357

An act to amend Section 27771 of the Government Code, and to amend Section 827 of, and to add Section 272.

CA SB149

An act to amend Sections 2301 and 2302 of, and to add Section 2303 to, the Fish and Game Code, to add and repeal Section 515 of the Food and Agricultural Code, to amend Sections 675, 676, and 676.

CA SB23

An Act To Amend Title 9, Title 22, And Title 29 Of The Delaware Code Relating To Housing Supply And Housing Affordability.

CA AB130

An act to amend Sections 714.

CA SB130

An act to amend Sections 714.

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