CA SB968

Allows councils of governments or delegate subregions to consider prior overproduction of housing units in a jurisdiction from the previous regional housing need allocation as credit toward that same income category in the next cycle.

Credits for overproduction are determined by each jurisdiction's most recent annual progress report submitted under Section 65400.

Prohibits prior underproduction of housing, stable population numbers, and residential building permit limitations from being used to justify reducing a jurisdiction's regional housing need allocation.

Requires councils of governments to develop housing need distribution methodologies considering factors including jobs-housing relationships, development constraints, transportation opportunities, and climate impacts.

Becomes operative on January 1, 2025.