Overview
California Assembly Bill 36 (AB-36), authored by Assembly Member Esmeralda Soria, was signed into Law on [10 October 2025] and chaptered as Chapter 485 of the Statutes of 2025. The bill amends Section 65589.9 of the Government Code to enhance the Pro-Housing Designation Program (PDP), which incentivizes local governments to adopt policies that promote housing development and affordability, thereby making its significance clear to stakeholders.
Key Provisions
· Permanent Regulations
o AB-36 replaces temporary emergency regulations with permanent rules for designating jurisdictions as “pro-housing.” This ensures consistency and predictability in how local governments qualify for incentives. [danharkey.com]
· Evaluation of Housing Elements
o Beginning with the 7th housing element cycle, the Department of Housing and Community Development (HCD) must use materials from a jurisdiction’s housing element submission to determine pro-housing status, reducing the need for supplemental documentation. [danharkey.com]
· Non-entitlement and Small Rural Jurisdictions
o Defines non-entitlement jurisdictions as:
§ Cities with fewer than 50,000 residents
§ Counties with fewer than 200,000 residents
o These jurisdictions are exempt from renewing their pro-housing designation for at least five years.
o For small rural jurisdictions (cities under 25,000 residents), renewal is prohibited for at least four years, provided they maintain a compliant housing element.
· Reporting and Oversight
o HCD must report designations to the Office of Land Use and Climate Innovation, aligning housing policy with climate and land-use goals.
· Incentives
o Jurisdictions with a pro-housing designation receive:
§ Priority points for competitive state housing and infrastructure grants.
§ Access to the Pro-Housing Incentive Program (PIP) for additional funding to support affordable housing production and preservation. [danharkey.com]
Legislative Timeline
- Introduction: 2 December 2024
- Passed Assembly: 8 May 2025 (69-0 vote)
- Passed Senate: 9 September 2025 (40-0 vote)
- Signed by Governor: 10 October 2025
Impact on California Housing Policy
AB-36 is part of California’s broader strategy to address its housing crisis by:
- Encouraging local governments to adopt pro-housing policies such as streamlined permitting, reduced parking requirements, and zoning reforms.
- Providing financial incentives to jurisdictions that actively remove barriers to housing development.
- Reducing administrative burdens for smaller cities and counties, making compliance more feasible for rural areas. [danharkey.com],
Why It Matters
California faces a severe housing shortage, with affordability challenges impacting millions of residents. By institutionalizing permanent regulations and expanding incentives, AB-36 aims to:
- Accelerate housing production.
- Promote equitable access to housing.
- Align housing development with climate and land-use objectives.
Next steps for local governments are crucial because reviewing housing elements and adopting policies directly influence their eligibility for incentives and funding opportunities.
Cities and counties should:
- Review their housing elements for compliance.
- Adopt pro-housing policies to qualify for designation.
- Leverage available state funding opportunities tied to the pro-housing status.
Bottom Line
AB‑36 is a modest bill with outsized implications. By anchoring pro-housing designation in permanent regulations and the existing housing element process, it trades paperwork for planning and stabilizes incentives that matter for both public and private actors. Its most substantial promise lies not in a single headline reform but in reducing friction: fewer duplicative filings, more apparent timelines, better signaling to capital, and improved alignment with climate and land-use priorities. The jurisdictions that will benefit most are those that use the new framework to codify objective standards, unlock infrastructure bottlenecks, and compete hard for state dollars—and then actually build.