CA SB158

Reduces the maximum project site size for "builder's remedy" housing projects from 5 acres to 4 acres to qualify for CEQA exemptions, and requires lead agencies to file a notice of exemption when approving projects under the housing exemption

Establishes Round 7 of the Homeless Housing, Assistance, and Prevention (HHAP) program with a $500 million appropriation effective July 1, 2026, contingent on grantees having obligated at least 50% of their Round 6 funds and meeting conditions including compliant housing elements and local encampment policies

Appropriates $2,106,000 from the General Fund to the Governor's Office of Land Use and Climate Innovation to implement SB 131 (Chapter 24 of the Statutes of 2025)

Modifies CEQA's definition of "natural and protected lands" to include lands identified for conservation in adopted natural community conservation plans or other natural resource protection plans, rather than just preserve or reserve lands

Requires annual housing reports from local planning agencies to use standardized forms and definitions adopted by the Governor's Office of Land Use and Climate Innovation, and clarifies that housing development projects requiring local agency entitlements are subject to Permit Streamlining Act timelines regardless of whether approval is ministerial or discretionary