CA AB87

Clarifies that California's Density Bonus Law does not require local governments to approve, grant concessions for, or waive development standards for hotels, motels, bed and breakfast inns, or other transient lodging as part of housing developments, except for residential hotels.

Excludes short-term rental use by residents after certificate of occupancy from the definition of "transient lodging," allowing such use when consistent with local law.

Contains a contingency provision coordinating with SB 92, specifying that if both bills pass and AB 87 is enacted last, an alternative version of Section 65915 incorporating changes from both bills will take effect.

The alternative version (Section 1.5) adds a cap preventing concessions or incentives from resulting in commercial floor area ratios exceeding 2.5 times the allowed base zone commercial ratio, though this restriction does not apply to projects with applications submitted before January 1, 2026.