Newsom Signs 2 Bills Aimed at Solving California’s Housing Crisis

Gov. Gavin Newsom on Tuesday signed two bills intended to ease California’s housing and homelessness crisis amid increased pressure from voters to address the growing number of unhoused people across the state.

One bill makes it easier for people experiencing homelessness to stay longer at a hotel or motel that has been converted into a shelter, and the other streamlines the approval process for smaller accessory dwelling units — often called “granny flats” or “in-law” apartments.

“The homelessness crisis demands immediate and innovative action, not the status quo,” Newsom said in a statement. “With these new laws, local governments have even more tools to provide housing.”

During the pandemic, many hotels and motels were transformed into temporary shelters for people experiencing homelessness. Although Newsom’s Homekey grant program converted some of those shelters into permanent housing, some cities have continued to use the hotels and motels as temporary housing.

One problem: When people stay at these types of shelters for longer than 30 days, they could be considered tenants and afforded certain rights under landlord-tenant law. To avoid that, building owners then shuffle people staying there every four weeks, which can be disruptive.

AB 2835, introduced by Assemblymember Jesse Gabriel (D-Encino), would allow these shelters to continue providing services for longer than 30 days without the landlord-tenant laws kicking in.

“We need solutions to our homelessness crisis that are both compassionate and effective,” he said. “AB 2835 will deliver on both fronts by providing much-needed stability to kids and families experiencing homelessness.”

On the supply side of housing politics, Newsom signed AB 3057, which would streamline the permit and approval process for junior accessory dwelling units, smaller versions of the increasingly popular granny flat or in-law unit.

Granny flats have allowed cities to add a new option for homeowners to build housing, but they can cost $500,000 or more to build. Junior ADUs are much smaller — only a maximum of 500 square feet by state law, as opposed to an ADU’s 1,200 square foot size — making them cheaper to construct and a potentially more affordable option for renters.

Junior ADUs have to include a kitchen, but not necessarily a bathroom or parking. And many local ordinances governing junior ADUs require the owner to live on the property, unlike with granny flats.

Authored by Assemblymember Lori Wilson (D-Fairfield), AB 3057 would exempt junior ADUs from the California Environmental Quality Act, a controversial law that some argue blocks new developments from being added to the state’s housing stock.

Accessory dwelling units are exempt from this law due to their small size and construction on a property that already has housing on it, but state law does not specifically exempt junior ADUs from CEQA.

“AB 3057 represents a small but significant technical change that offers Californians more accessible and efficient options to build affordable housing solutions,” Wilson said.