Newsom Signs Six California YIMBY Housing Bills Aimed at Reducing Construction Costs and Expanding Housing Options

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SACRAMENTO, Calif. — Gov. Gavin Newsom has signed six housing bills sponsored by California YIMBY, completing the organization’s 2026 legislative agenda with measures intended to reduce housing construction costs, streamline local approvals and expand opportunities for homeownership and accessory dwelling units across California.

The legislation addresses 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 Newsom had signed every bill it sponsored that passed the Legislature this session, thanking the governor, legislative authors, staff members and advocacy organizations involved in advancing the measures.

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

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

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 released by California YIMBY.

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

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

The legislation is intended to provide developers with greater certainty about infrastructure obligations and associated costs earlier in the approval process.

“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.

Another measure, AB 2074, authored by Haney, focuses on facilitating high-rise residential and mixed-use development near regional transit hubs in California’s largest cities.

The bill streamlines construction of qualifying projects in downtown areas served by major transit connections, including Sacramento, with the goal of expanding housing opportunities in locations where residents can access employment, transportation and services.

AB 2074 also calls for studying potential sources of state-backed financing that could reduce construction costs for these projects, including loans intended to make 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 in a California YIMBY press release.

Two additional measures address the construction of accessory dwelling units, which have become an increasingly common form of housing development on existing residential properties.

SB 1117, authored by Cervantes, changes the impact fees that local governments can impose on accessory dwelling units larger than 750 square feet.

The measure 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.

“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 announcing the signing.

AB 956, authored by Quirk-Silva, allows homeowners to construct up to two detached accessory dwelling units on a single-family residential lot.

The legislation expands the number of detached units that may be constructed on qualifying properties, allowing homeowners to add housing without acquiring additional land.

In a statement following the bill’s passage through the Legislature, 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 measure, SB 677, authored by Wiener, addresses delays involving subdivision approvals and federal financing for affordable housing developments.

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

California YIMBY identified the measure as an effort to prevent procedural requirements from delaying housing developments that have already received approval.

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

Together, the six bills address housing construction and development at different scales, from additional residential units on existing single-family lots to high-rise apartment buildings near major transit hubs.

California YIMBY said the legislation is intended to make housing construction faster and less expensive while expanding the types of homes that can be developed throughout the state.

The measures represent the completion of California YIMBY’s successful sponsored legislation for the 2026 session, following their passage through the Legislature and approval by Newsom.

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  • David M. Greenwald

    Greenwald is the founder, editor, and executive director of the Davis Vanguard. He founded the Vanguard in 2006. David Greenwald moved to Davis in 1996 to attend Graduate School at UC Davis in Political Science. He lives in South Davis with his wife Cecilia Escamilla Greenwald and three children.

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