The California State Legislature convened on January 29, 2025, to introduce Senate Bill 92, spearheaded by Senator Blakespear and co-authored by Assembly Member Quirk-Silva. This legislative proposal aims to amend Section 65915 of the Government Code, specifically addressing housing development and density bonuses.

The primary objective of SB 92 is to revise the definition of "housing development" under the existing Density Bonus Law. Currently, this law mandates that cities and counties provide density bonuses and other incentives to developers who commit to constructing a certain percentage of units for lower-income households. The bill seeks to clarify that a mixed-use development qualifies for these benefits only if at least two-thirds of its square footage is designated for residential use. This change is intended to encourage more effective use of land in urban areas, promoting the construction of housing alongside commercial spaces.

Notably, the bill imposes additional responsibilities on local governments to administer the Density Bonus Law concerning mixed-use developments, which could lead to increased administrative costs. To address potential financial burdens, SB 92 includes provisions for state reimbursement to local agencies if the Commission on State Mandates determines that the bill imposes costs mandated by the state.

The introduction of SB 92 has sparked discussions among stakeholders, with proponents arguing that it will facilitate the development of affordable housing in California's densely populated areas. Critics, however, express concerns about the feasibility of the two-thirds requirement for mixed-use developments, fearing it may deter developers from pursuing such projects.

The implications of this bill are significant, as California continues to grapple with a housing crisis characterized by high demand and limited supply. By refining the Density Bonus Law, SB 92 aims to strike a balance between promoting housing development and ensuring that local governments can manage the associated costs effectively.

As the legislative process unfolds, the bill's fate will depend on further debates and potential amendments, with stakeholders closely monitoring its progress. If passed, SB 92 could play a crucial role in shaping California's housing landscape in the coming years.