AB 2011 & THE ULTIMATE OVERRIDE - BY-RIGHT HOUSING MADE POSSIBLE IN COMMERCIAL ZONES

Assembly Bill 2011 (AB 2011) became effective on July 1, 2023 and allows for ministerial, by-right approval in two scenarios: 1) 100% affordable housing project on commercially-zoned land(excludes managers’ units); and 2) Mixed-income housing along eligible “commercial corridors” as defined by the law. Eligible commercial zones include those where office, retail or parking are a principally permitted use. Either scenario must meet a lengthy list of criteria such as location, affordability, and environmental constraints. The law includes an express provision that overrides any inconsistency between a proposed housing development project and a public agency’s general plan, zoning ordinance, or other regulations. The law includes a statutory exemption from CEQA for all housing development projects that utilize this law’s provisions.

As a compromise made with organized labor, the bill’s author included labor requirements for any project proposed under this law. As such, a project must include: 1) payment of prevailing wage for contractors; and 2) for any project with more than 50 units, contractors must use apprentices if available and provide health benefits.  

Affordable units must be deed restricted for a period of 55 years for rental units and 45 years for owner-occupied (for sale) units. The affordable units would be for lower income households (low, very low, and extremely low based on Annual Median Income set by the county each year).

AB 2011 includes a provision that the applicable development standards to be used for a project would be the zoning designation for the closest parcel that allows residential use at a density that meets the jurisdiction’s “default density” allowance. AB2011 further provides that the allowances under State Density Bonus law (SDBL) would still apply to a project.