January 2026 Real Estate Law Newsletter
New California Real Estate Laws
HAPPY NEW YEAR!
State lawmakers proposed scores of real estate-related laws in 2025. Many of those approved are meant to expedite housing and local building improvement permitting. The focus on the two topics reflects: 1) the state’s on-going housing shortage and; 2) the need for local business tax revenue, which is often dependent on permits.
Selna Partners serves clients throughout California, but our Oakland presence provides more immediate access to Oakland lawmaking. And – with little fanfare – Oakland did some interesting and productive things in 2025, also approving new laws that make it much easier to build housing and to obtain permits.
Selna Partners has highlighted several new state and local laws below that we believe might most impact our clients, including property owners, business tenants, and developers. The laws either went live in late 2025, or on Jan. 1, 2026.
Please contact Selna Partners Law with questions about the information below.
Statewide laws intended to make it easier to build housing
AB 130: The most impactful housing bill in decades. It eliminates environmental review for new housing in urban (“infill”) areas. The bill incorporates the key elements of AB 609.
SB 79: More height near transit. Overrides local zoning limitations to allow greater heights and densities for housing development near transit stops.
SB 489: Faster permits. Reduces delays for housing project applicants using the Permit Streamlining Act.
AB 712: Enforcing housing laws. Numerous laws expedite housing development, but few have included tools for enforcing the laws through litigation. This bill changes that.
SB 786: Housing elements. Where cities require voter approval for their housing elements, the state will set a deadline for voter approval as a condition of housing element certification. If the voter approval deadline is missed the housing element is decertified.
AB 893: College Commercial zone housing. Permits mid-rise apartments in all commercial and mixed-use zones near public colleges.
AB 1050: Removing CC&R restrictions. Allows recorded covenants, conditions and restrictions (CC&Rs) to be redacted from the title of commercial properties where residential uses are allowed and proposed.
AB 1308: Third-party inspections. Allows applicants to use third party professionals to inspect completed housing construction work if the inspection would otherwise take the local building department more than 30 days.
Statewide Laws intended to expedite local permitting
AB 671: 20 days for local building departments to approve or deny restaurant improvement permit applications. City building permit delays often kill restaurants before they open. AB 671 requires local building departments to approve or deny restaurants’ building improvement permit applications within 20 business days. And city Building officials must respond to any resubmitted modifications within 10 business days. If city deadlines are missed, improvements are automatically approved.
SB 304: More uses at Jack London Square Port property. More than half of the ground floor space in the Jack London Square area sits empty. Much of it is owned by the Port of Oakland. For decades, state law limited the Port’s leasing to maritime businesses and visitor-serving uses such restaurants. SB 304 relaxes the restrictions to activate the area.
New Oakland Laws intended to encourage housing and business development
Objective Design Review Standards allow up to 30 housing units administratively
The City Council approved Ordinance No. 13855 changing Design Review to include a new ministerial track using Objective Design Standards (“ODS”) for by-right approval of additional residential project types, including all single-family homes, 2-to-4 unit residential projects, and lower-density multifamily developments up to 30 units.
The legislation also clarified that all residential projects not requiring a discretionary approval (such as CUP or variance) are also subject to ODS. The Ordinance includes amendments to design review procedures, exemptions, and appeals process updates, as well as related updates to the Definitions Section (Planning Code Section 17.09.040).
- Objective Design Standards Report (click to download)
- Objective Design Standards Ordinance (click to download)
Reducing Impact Fees
The City Council (1) Updated the City’s Jobs/Housing Impact Fee regulations, Affordable Housing Impact Fees, and Transportation And Capital Improvement Impact Fees (Muni Code Chapter 15.74); and (2) Amended the City’s Master Fee Schedule to calculate impact fees for residential projects on a square footage basis. The Council also temporarily eliminated the Affordable Housing Impact Fee in two areas of the City. Impact Fees Report (click to download)
Removing CUP requirement for Commercial Uses based on square footage
In December, the City Council expanded the Zoning Code’s list of Commercial Activities permitted by right citywide. A City report on the amendments can be found here. The amendments do not entirely eliminate conditional use permits (“CUPs”) for commercial activities but instead increase the square footage that triggers a CUP requirement. With the changes, many commercial activities that previously required a CUP at 7,500 square feet would not need the permit unless the use was more than 10,000 square feet.