California needs to build a lot more housing — and fast. But for people in communities that have already faced waves of displacement, the idea of more development can feel like a threat.
That’s why some of the most important housing laws coming out of Sacramento are doing both: making it easier to build housing and requiring protections for the people already living in those neighborhoods.
These laws—like SB 35, SB 330, and the State Density Bonus Law—offer a newer model: production with protection.
Q: What does SB 330 do to promote housing and prevent displacement?
A: SB 330, also known as the Housing Crisis Act of 2019, speeds up the local approval process for housing — and it comes with strong rules to protect tenants and preserve affordability:
- No surprise rule changes: Once a project submits a preliminary application, the city cannot adopt new zoning rules or fees that apply to it.
- Objective review only: If a housing project meets the city’s standards, it cannot be denied or downsized without very specific findings.
- Limits on public hearings: Only five hearings are allowed for eligible projects.
- Tenant protections: If a project would remove rent-controlled or low-income housing—or units occupied by lower-income tenants in the last 5 years—it must:
- Replace those units one-for-one;
- Offer displaced residents the right to return to new homes at the same rent level;
- Provide relocation assistance
These protections apply even if the project is 100% affordable. Thus, SB 330 ensures that housing growth doesn’t come at the expense of current residents.
Q: How does SB 35 speed up affordable housing — and who qualifies?
A: SB 35 creates a streamlined approval process for housing in cities that are not meeting their housing goals (which includes most cities in California). If a project meets certain criteria, the city must approve it within 60 or 90 days — without any public hearings or CEQA review.
To qualify, a project must:
- Include a required share of affordable homes
- Be located in an urban area on an infill site;
- Use skilled labor, including prevailing wage;
- Avoid displacement: it can’t demolish homes that:
- Are rent-controlled,
- Were deed-restricted affordable,
- Or were occupied by tenants in the past 10 years.
Recent changes under SB 423 (2023) extended SB 35 to 2036 and made it more flexible — now even some mixed-income projects can qualify.
Bottom line: SB 35 has made it possible to move affordable housing forward faster, without harming existing tenants.
Q: What does the State Density Bonus Law do — and how has it changed?
A: The State Density Bonus Law allows developers to build more homes than zoning typically allows when they include affordable units.
Depending on how many and what kind of affordable units are included, a project can get:
- Up to 50% more density
- Development concessions— like reduced parking or height flexibility
- Waivers from rules that would make the project infeasible.
New updates under AB 1287 (2023) added a “stackable bonus” for projects that include both very low- or low-income units and middle-income units — allowing projects to qualify for additional density.
The law does not prohibit demolition on its own — but is subject to AB 2222, which prohibits developers from receiving density bonuses if a new project reduces the number or proportion of existing affordable units on a property.
This makes the Density Bonus Law a powerful tool for building more affordable and mixed-income housing, while still honoring local communities.
Q: Are there other state laws that encourage production without displacement?
A: Yes — several recent laws build on the same idea:
- AB 2011 (2022): Allows affordable housing on commercial corridors by right, but only if no tenants are displaced and strong labor standards are followed.
- SB 4 (2023): Makes it easier for faith-based and nonprofit landowners to build 100% affordable housing on their land — again, only when there’s no tenant displacement.
These policies show that California is setting a new standard: building more homes shouldn’t mean pushing people out.