CA SB540

Authorizes local governments to establish Workforce Housing Opportunity Zones by preparing an environmental impact report and adopting a specific plan containing detailed requirements for 100-1,500 residential units.

Requires local governments to approve housing developments within zones that meet specified criteria for 5 years after plan adoption, unless the government finds a specific adverse public health or safety impact based on substantial evidence.

Exempts housing developments within zones from environmental review requirements if they comply with the adopted plan and meet affordability criteria: at least 30% moderate/middle income, at least 15% lower income, at least 5% very low income (restricted 55 years), and no more than 50% above moderate income.

Mandates local governments approve qualifying zone developments within 60 days of complete application and allows local governments to impose specific plan fees to defray preparation and administration costs, with fees reimbursing loans from the Department of Housing and Community Development.

Authorizes local governments to apply for grants or no-interest loans from the Department of Housing and Community Development to support development of specific plans and environmental impact reports for Workforce Housing Opportunity Zones.