CA SB674

Increases the allowable percentage of non-residential floor area in residential infill projects from 15% to 25% of total building square footage for neighborhood-serving goods, services, or retail uses.

Exempts qualifying residential infill projects from California Environmental Quality Act (CEQA) environmental review requirements if they meet specified criteria including location within an urbanized area, proximity to transit, and affordable housing provisions.

Requires projects to be no larger than 4 acres, contain no more than 100 residential units, and be within one-half mile of a major transit stop to qualify for the exemption.

Allows CEQA review to apply despite meeting exemption criteria if unusual circumstances create a reasonable possibility of significant environmental effects or if substantial changes or new information emerge since community-level environmental review was conducted.

States that no state reimbursement is required for implementation costs because local agencies have authority to levy fees or assessments to cover the mandate.