Newsom Signs Six California Housing Bills to Expand Homebuilding

California Gov. Gavin Newsom has signed six housing bills to reduce construction costs, streamline local approvals, and expand opportunities for homeownership and accessory dwelling units statewide.

California YIMBY sponsored the bills, completing the organization’s 2026 legislative agenda.  California YIMBY is a nonprofit that lobbies for housing reforms to increase home building and lower housing costs in California.

The bills address several aspects of housing development, including infrastructure fees, subdivision approvals, construction of smaller homes, downtown residential development, and restrictions on accessory dwelling units, commonly known as ADUs.

California YIMBY announced that the governor had signed every bill it sponsored that passed the Legislature this session, Vanguard News Group reported.

Sens. Anna Caballero, Timothy Grayson, Sabrina Cervantes and Scott Wiener, along with Assemblymembers Matt Haney and Sharon Quirk-Silva, authored the bills.

Construction Costs

Among the measures is SB 1116, authored by Caballero, which changes state housing law to reduce construction costs and speed development of smaller homes, including townhomes and condominiums.

California YIMBY said the legislation focuses on expanding opportunities to build lower-cost starter homes, particularly housing types that can provide alternatives to larger, more expensive detached single-family residences.

“I’m proud to have authored this bill that will help more Californians achieve the dream, making it easier to build smaller houses, townhomes and condominiums that families can afford to own,” Caballero said in a statement.

SB 1014, authored by Grayson, addresses infrastructure requirements imposed by local governments during the housing development process, California YIMBY noted.

Under that legislation, cities must disclose infrastructure requirements, including improvements involving sidewalks, sewers, and other public facilities, within 30 days of receiving a housing application. It also prohibits jurisdictions from imposing additional infrastructure requirements after a permit application has been submitted.

“The cost of infrastructure like sidewalks and sewers is not mysterious, but many California cities treat it that way,” said Brian Hanlon, CEO of California YIMBY, in the organization’s announcement of the bill’s signing.

High-Rise Residential

Another bill, AB 2074, authored by Haney, focuses on facilitating high-rise residential and mixed-use development near regional transit hubs in California’s largest cities. It streamlines construction of qualifying projects in downtown areas served by major transit connections, including Sacramento, with the goal of expanding housing opportunities in places where residents can access employment, transportation, and services.

That bill also calls for studying potential sources of state-backed financing that could lower construction costs for these projects, including loans aimed at making high-rise residential development more financially feasible.

“The pandemic is over, but many of our largest cities are still struggling to bring vitality back to their downtown neighborhoods,” Hanlon said.

Two additional measures address the construction of accessory dwelling units, which have become an increasingly common form of housing development on existing residential properties, California YIMBY noted. SB 1117, authored by Cervantes, changes the impact fees that local governments can impose on accessory dwelling units larger than 750 square feet.

That bill is intended to reduce the costs associated with building larger accessory dwelling units, expanding the range of housing options available to property owners and prospective residents, California YIMBY said.

“Homeowners and builders across California have made accessory dwelling units a success story, but many cities continue to charge excessive fees,” Hanlon said in a statement.

Detached Accessory Dwellings

AB 956, authored by Quirk-Silva, permits homeowners to construct up to two detached accessory dwelling units on a single-family residential lot. It expands the number of detached units that are allowed to be built on qualifying properties.

Hanlon said local restrictions continued to limit accessory dwelling unit construction.

“But many cities, and especially homeowners’ associations, continue to throw up roadblocks to their construction,” Hanlon said.

The final bill, SB 677, authored by Wiener, addresses delays involving subdivision approvals and federal financing for affordable housing developments.

It protects previously approved housing projects from additional local delays related to subdivision procedures and the approval of federal financing arrangements.

“SB 677 closes some of the more common loopholes that anti-housing activists use to block urgently-needed homes,” Hanlon said in a statement.