Background
SB 131 was enacted in 2025 to accelerate housing production, reduce constraints on the development of affordable housing, and facilitate the timely implementation of housing elements and local housing strategies. The bill added section 21080.086 of the Public Resources Code exempting rezoning undertaken to implement actions in an approved housing element.
Department of Housing and Community Development Guidance
HCD recently released guidance clarifying the extent to which the exemption applies.
If an adopted housing element is approved by HCD based on its compliance with Housing Element Law (Gov. Code, § 65580 et seq.), the rezoning actions included in the housing element’s schedule of actions qualify for exemption from CEQA. An “approved” housing element is one that has been reviewed and determined by HCD to be either in substantial compliance with or to meet the requirements of Housing Element Law.
Zoning changes under the exemption may include increasing allowable density, modifying heights and parking requirements, and allowing for broader ranges of housing types, so long as the changes are consistent with the jurisdiction’s adopted housing element. Amendments to the general plan required to maintain consistency with the rezoning will also be exempt.
Exceptions: The exemption does not apply to a rezoning that would allow the construction of certain large warehouses, such as distribution centers, or to oil and gas infrastructure. Additionally, the exemption does not apply to rezoning to allow development on areas defined as “natural and protected lands” under Public Resources Code section 21067.5. HCD clarifies that prime agricultural land may still be eligible if it is included in the housing element’s schedule of actions. Further, if a site includes eligible land and “natural and protected lands,” the exemption may still apply if the rezoning explicitly excludes the protected portions. It should also be noted that the exemption does not eliminate the requirement for local governments in the Coastal Zone to submit coastal rezoning to the Coastal Commission for review and certification.