CA AB1162

Expands existing law allowing defendants to require plaintiffs to post an undertaking (security bond) when challenging housing development projects to also cover challenges to "community-serving projects"

Defines community-serving projects as those providing public infrastructure, goods, or services essential to community well-being (health care, food banks, homeless services, libraries, parks, educational facilities) undertaken by nonprofits, government entities, or their contractors in conjunction with affordable housing projects

Requires community-serving projects to have a direct connection to affordable housing by being physically located near the housing, providing infrastructure improvements, offering direct services to residents, or maintaining affordability commitments

Caps plaintiff liability for costs and damages at $500,000, with courts authorized to reduce or waive the undertaking requirement if it would cause the plaintiff undue economic hardship

Allows defendants to seek undertaking orders when lawsuits are filed in bad faith, vexatiously, for delay purposes, or to thwart the low/moderate-income nature of housing or community-serving projects