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AB 1732 – Expands CEQA Exemption for Affordable Housing

CATEGORY: Client Update for Public Agencies
CLIENT TYPE: Public Employers
DATE: Nov 05, 2026

Existing law exempts certain actions for affordable housing projects from the requirements of California Environmental Quality Act (CEQA) until January 1, 2033, including: (1) the issuance of an entitlement by a public or lead agency; (2) an action to lease, convey, or encumber land owned by a public or lead agency; (3) an action to facilitate the lease, conveyance, or encumbrance of land owned or to be purchased by a public or lead agency; (4) rezoning, specific plan amendments, or general plan amendments required specifically and exclusively to allow construction; or (5) an action in furtherance of implementation.

AB 1732 extends the operation of this exemption until January 1, 2037 and expands it to also apply to a public university or public college housing project, if the project meets certain labor standards and is in at least one of the following locations: (i) on a legal parcel(s) in a city where the city boundaries include some portion of an urbanized area or urban cluster, (ii) in an unincorporated area wholly within an urbanized area or urban cluster, (iii) within one-half mile walking distance of a high-quality transit corridor or a major transit stop, (iv) in a very low vehicle travel area, or (v) proximal to 6 or more amenities, such as a supermarket or public park.  The project must also satisfy specified requirements concerning surrounding development, environmental conditions, and tribal consultation.

AB 1732 amends section 21080.40 of the Public Resources Code.

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