Housing element compliance: committed assistance: in-kind services: realistic capacity formula

The law aims to standardize and simplify housing-element site-capacity estimates while preserving local responsibility to identify adequate housing sites. It also lets local governments count certain noncash assistance toward limited affordable-housing obligations.

What the law does ​

• Requires the Department of Housing and Community Development, by July 1, 2028, to issue or approve formulas and tools that estimate realistic capacity for housing-element sites, rezoning or constraint-removal programs, and accessory dwelling units.
• Allows cities and counties to use the state-approved formulas, which rely on development probability multiplied by expected units, but does not require their use.
• Protects a local government's use of an approved formula from court review except for misapplication or substantially inaccurate, misclassified, or faulty data.
• Requires housing inventories to state the units currently allowed on each site and the units allowed after required rezoning.
• Defines qualifying in-kind committed assistance as noncash local help that materially reduces costs or facilitates eligible affordable-housing acquisition, rehabilitation, or preservation, including below-market predevelopment loans and below-market land or building transfers or leases.

Who it affects ​

• Cities and counties preparing or revising housing elements and land inventories.
• Affordable-housing projects receiving local committed assistance.
• The Department of Housing and Community Development.