California’s Housing Crisis Demands Regulatory Reforms, Says Newsom

SACRAMENTO, CA — Governor Gavin Newsom this week unveiled a new legislative proposal as part of his May Budget Revision, aiming to cut through regulatory red tape and accelerate the production of housing and economic development across California.

The plan seeks to overhaul key permitting processes, speed up development timelines, and introduce new financing tools to deliver housing faster, more affordably, and with greater environmental and economic sustainability.

At the heart of the Governor’s proposal is a commitment to long-overdue reform.

“To meet California’s housing goals, we need certainty, accountability, and smarter land use—not the endless regulatory delays that have held us back for decades,” Newsom said in a statement. “The Golden State was built on boldness and innovation, not red tape—we can’t continue to block our own economic success. We’re done with barriers. Let’s get this built.”

The new initiative includes targeted reforms to streamline the California Environmental Quality Act (CEQA), synchronize Coastal Commission permitting timelines with other state agencies, and align development policy with climate and transportation goals.

In partnership with the Legislature, Newsom is backing Assembly Bill 609 (Wicks) and Senate Bill 607 (Wiener), which will be incorporated into the state budget to expedite CEQA processes and reduce permitting delays.

One of the most significant elements of the proposal is a change to how the California Coastal Commission handles housing permits. Currently exempt from the deadlines imposed by the Permit Streamlining Act, the Commission often contributes to long delays in coastal housing development.

Newsom’s plan would end that exemption, requiring the Commission to operate under the same permitting timelines as other agencies—introducing long-awaited regulatory certainty to high-need coastal areas.

The Governor is also proposing an expansion of CEQA judicial streamlining. Projects over $100 million in value would be eligible to use the same streamlined process already available to smaller developments, while retaining the option to apply as large infill projects.

The proposal also gives developers flexibility in their environmental reporting, offering the ability to comply with the California Air Resources Board’s Scoping Plan as an alternative to net-zero greenhouse gas emission modeling.

In tandem with these reforms, the plan outlines a new, statewide Vehicle Miles Traveled (VMT) mitigation banking program. This would allow developers to meet VMT reduction obligations under CEQA by paying into a fund managed by the Department of Housing and Community Development. That fund would be used to finance affordable housing near transit, supporting the Governor’s broader push for infill and transit-oriented development.

This proposal builds on Newsom’s long-standing housing platform, which calls for the construction of more than 2.5 million homes in the current housing cycle—including at least one million affordable units for lower-income Californians. Since taking office, Newsom has signed 42 CEQA-related housing reforms, instituted stronger local accountability measures, and directed record levels of state funding to support housing production.

Still, decades of layered and often conflicting regulations have slowed or outright blocked many critical projects. This latest effort represents a strategic push to clear the path for new housing by modernizing how California handles land use, permitting, and development.

“California can’t afford the status quo,” the Governor’s office stated. “These proposals are designed to deliver the housing Californians need—faster, smarter, and in communities where people already live, work, and commute.”

Newsom’s May Revision highlights the connection between climate-smart housing and economic opportunity. The reforms aim to increase production in areas that reduce pollution, enhance access to jobs and services, and meet the state’s ambitious sustainability targets. By advancing infill and transit-oriented housing, the plan also supports good-paying jobs, expands economic opportunity, and improves environmental outcomes.

While the proposal outlines a clear direction for reform, much will depend on legislative support and local implementation. The administration says it is committed to working with lawmakers, local governments, and community stakeholders to ensure swift and effective rollout.

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3 comments

    1. Here’s apparently “how” it got past the Coastal Commission:

      “How did it skip by and through so many Coastal Act and planning guidelines and restrictions to finally achieve the necessary coastal development permits? Well from the top down, that’s how–from the County Supervisors down through the top brass and staff at the aptly named Permit Sonoma (PS). Sonoma County, unlike other jurisdictions, has final review and approval of coastal development permits, not the California Coastal Commission.”

      “Orange County developers plying those who will decide the outcome of such a garish proposal with flights and parties and possibly money—and who knows what else?—greased the skids more than enough to make Harbor View happen.”

      https://www.sonomacountygazette.com/sonoma-county-news/commentary-permit-sonoma-and-the-questionable-harbor-view-project-in-bodeg/

  1. The California Coast is a gem. Davis historical and farmland resources have value. The new left doesn’t care about destroying it all, because: housing crisis.

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