New California Housing Laws for 2026: What You Need to Know

January 1 brings a fresh batch of housing legislation to California, and this year's crop is particularly interesting. The state is trying to walk a tightrope—building more housing faster while also strengthening tenant protections. Whether you're a landlord, developer, or renter, here's what's changing.

The "Let's Actually Build Something" Bills

SB 786 and SB 808 are Attorney General Rob Bonta's attempt to cut through the litigation nightmare that's been strangling housing projects. Anyone who's tried to build housing in California knows: you can have all your approvals lined up and still spend years in court.

SB 786 (Senator Jesse Arreguín) sets up clearer rules for resolving housing element disputes. SB 808 (Senator Anna Caballero) creates a fast-track court process for entitlement and permitting fights. The goal isn't to change what's legal—it's to stop projects from dying of old age while lawyers argue.

"Millions of Californians are desperate for housing options that fit their budget and are near loved ones, social networks, and jobs," Bonta said when these bills were signed in October 2025.

SB 484 tackles coastal housing, which has always been tricky territory. Senator John Laird's bill creates a ten-year pilot program that lets 100% affordable infill projects in certain coastal areas skip the usual California Coastal Commission permitting gauntlet. The bill targets at least three jurisdictions that don't have certified local coastal programs.

What makes this one unusual is that environmental groups actually supported it—proof that housing and environmental protection don't have to be mortal enemies.

New Rules for Landlords

AB 246, the "Social Security Tenant Protection Act," is already in effect as of this writing. This law creates a new defense against eviction when a tenant's Social Security benefits get interrupted through no fault of their own. If benefits are terminated, delayed, or reduced, tenants can use this as an affirmative defense in eviction court. The proceedings get paused for up to six months after benefits resume, giving tenants time to either pay what's owed or work out a payment plan (they've got 14 days to figure it out).

If you're renting out property in California, AB 628 deserves your immediate attention. Starting January 1, you're required to provide working stoves and refrigerators in all new, renewed, or amended leases.

Assemblymember Tina McKinnor's bill updates the definition of "tenantable" housing to include these appliances. They need to be maintained in working order, and if there's a manufacturer recall, you've got 30 days to repair or replace them.

There are some carve-outs for permanent supportive housing, SROs, residential hotels, and places with communal kitchens. Tenants can also agree in writing to provide their own fridge (but not the stove).

AB 414 is straightforward: if you collected rent or deposits electronically, you have to return security deposits the same way unless you and the tenant agree otherwise in writing. No more "the check's in the mail" when everyone's been using Venmo.

CEQA Changes and Budget

The 2025-2026 budget (AB 130 and SB 131) includes major CEQA exemptions aimed at getting more housing built without sacrificing environmental protections on sensitive lands. There's also $500 million allocated for Round 7 of the Homeless Housing, Assistance and Prevention program in 2026-27, this time with tighter accountability requirements.

What It All Means

California's basically trying everything at once: make it easier to build, make it harder to delay projects, protect tenants better, and somehow not break the bank doing it.

For developers, the judicial reforms could actually save you months or years. For landlords, compliance just got more complicated—especially if you've been casual about appliances. For tenants, there's more protection when things go wrong.

The real test will be whether these laws actually move the needle on housing production. California's passed plenty of pro-housing legislation before. Implementation is always the hard part.

Sources

California Attorney General's Office. "Attorney General Bonta's Sponsored Bills to Accelerate Housing Construction Signed into Law." Press Release, October 10, 2025. https://oag.ca.gov/news/press-releases/attorney-general-bonta%E2%80%99s-sponsored-bills-accelerate-housing-construction-signed

California Legislative Information. Senate Bill No. 786 (Arreguín), 2025-2026 Regular Session. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB786

California Legislative Information. Senate Bill No. 808 (Caballero), 2025-2026 Regular Session. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB808

California Legislative Information. Senate Bill No. 484 (Laird), 2025-2026 Regular Session. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB484

Senator John Laird's Office. "Housing Advocates and Environmentalists Unite to Applaud Governor Newsom's Signature of Affordable Housing Bill for Coastal Cities." Press Release, October 2025. https://sd17.senate.ca.gov/news/housing-advocates-and-environmentalists-unite-applaud-governor-newsoms-signature-affordable

California Legislative Information. Assembly Bill No. 628 (McKinnor), Chapter 528, 2025-2026 Regular Session. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB628

California Legislative Information. Assembly Bill No. 246 (Bryan), 2025-2026 Regular Session. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB246

California Legislative Information. Assembly Bill No. 414 (Pellerin), 2025-2026 Regular Session. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB414

Office of Governor Gavin Newsom. "Governor Newsom signs into law groundbreaking reforms to build more housing." Press Release, July 11, 2025. https://www.gov.ca.gov/2025/07/11/

Legal Disclaimer This newsletter is for informational purposes only and does not constitute legal, tax, or financial advice. The information provided is based on publicly available sources and is subject to change. Always consult with a qualified tax professional, attorney, or financial advisor before making investment or tax-related decisions. Ownership Theory assumes no liability for any actions taken based on this content.

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