CA AB1063

Requires the Department of Housing and Community Development to allow cities and counties to identify adequate housing sites through various methods, including accessory dwelling units (ADUs) and junior ADUs based on existing zoning standards and demonstrated capacity.

Increases the threshold for substituting committed assistance units from 25% to 50% of a city or county's obligation to identify adequate sites for any income category, with reduced affordability covenant periods from 55 years to 20 years (unless longer periods required by other programs).

Extends the timeline for cities and counties to report on progress providing committed assistance units from the 3rd to the 5th year of the planning period, and extends the deadline to adopt an amended housing element from the 4th to the 6th year if committed assistance agreements are not finalized.

Deems specific conditions as substantial evidence that existing uses will be discontinued during the planning period, including improvement-to-land-value ratios below certain thresholds, designated Moderate/High Resource areas, and zoning allowing by-right residential development with 20% affordable units.

Exempts "affected local governments" (those requiring voter approval of housing elements) from fines or penalties for missing adoption deadlines if the housing element was submitted to voters before the due date, whether pending or rejected; allows court-ordered remedies if voters reject the element.