Governor Newsom Signs AB 2011 and SB 6 to Expedite Affordable Housing Construction in California

Assembly Bill 2011, titled the Affordable Housing and High Road Jobs Act of 2022, allows residential developers who agree to comply with labor standards and affordability requirements to build housing “by right.”  In other words, they will benefit from a streamlined, approval process that avoids the California Environmental Quality Act and local zoning regulations that have historically choked off the development of new working-class housing in the state.  

AB 2011 allows for affordable housing development on parcels under 20 acres that are currently zoned for office, retail or parking—in total, hundreds of thousands of acres throughout the state.  In the words of Governor Newsom, AB 2011 “is a big deal.”

To utilize the “by right” process, participating developers and contractors must commit to providing prevailing wages, health care, and real apprenticeship opportunities (the latter two apply if the development is 50 units or more).  AB 2011 also provides for enforcement by joint labor management cooperation committees in addition to the State Labor Commissioner.     

Governor Newsom also signed Senate Bill 6, titled the Middle Class Housing Act of 2022, at the same time.  Taking a different approach, SB 6 allows residential development on commercially zoned property without requiring compliance with local rezoning procedures, by allowing project applicants to invoke the Housing Accountability Act to limit local planning discretion.  SB 6 also requires the payment of prevailing wages and employment of a “skilled and trained workforce” (which is waived if fewer than two bidders are competing for a contract).  

Both laws take effect on July 1, 2023.  For more information regarding these and other new laws, please contact your labor law counsel.