CA AB507

Adaptive reuse projects converting existing commercial or office buildings to residential or mixed-use housing are deemed a use by right in all zones and subject to streamlined ministerial approval, with local governments required to approve qualifying projects within 60-90 days depending on project size

Rental housing adaptive reuse projects must include either 8% of units for very low income households plus 5% for extremely low income households, or 15% for lower income households; owner-occupied projects must offer 30% of units at affordable cost to moderate-income households or 15% to lower income households

Projects are exempt from impact fees not reasonably related to the change of use from nonresidential to residential, and no parking is required for building portions without existing onsite parking

Local governments may establish an Adaptive Reuse Investment Incentive Program starting in fiscal year 2026-27 to pay proponents up to the amount of increased property tax revenue from the project for up to 30 consecutive years to subsidize affordable housing units

Projects must comply with prevailing wage requirements, and projects with 40+ units must meet additional labor standards including apprenticeship program participation and health care expenditure requirements for construction workers