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SB 1383

Housing development: density bonus: incentives or concessions: labor standards.

2025-2026 Regular Session Introduced by Jesse Arreguín

SB 1383 bars labor-standard concessions from counting toward density bonus incentives, limiting incentives tied to affordable housing calculations.

From committee: Do pass. (Ayes 5. Noes 1.) (April 29).
#housingdevelopment #densitybonus #incentivesorconcessions #laborstandards
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WeVote Research Nonpartisan
Bill Summary · SB 1383

Summary of SB 1383 (2025-2026) – California Housing Density Bonus: Labor Standards

Note: This summary covers the main purpose, key provisions, who is affected, and procedural/timeline aspects based on the proposed amendments to the Government Code.

Purpose and Intent

  • SB 1383 would refine the Density Bonus Law to exclude labor standards from being treated as “incentives or concessions.”
  • In effect, certain labor-related elements (as defined by the Labor Code) could no longer count toward the “incentives or concessions” that a local government may grant in exchange for affordable housing units.
  • The bill also enhances local posting requirements related to post-entitlement phase permits, and expands examples to include junior accessory dwelling units (JADUs) and ministerially approved housing projects. These posting changes would impose state-mandated local program costs starting January 1, 2028.

Key Provisions and Changes

1) Labor Standards Exclusion

  • Redefines “incentives or concessions” to exclude any reduction in or modification of:
    • Site development standards,
    • Zoning code or architectural design requirements,
    • Any other regulatory incentives or concessions that include or relate to a labor standard (as defined by the Labor Code).
  • Effect: If a requested concession involves labor standards, it cannot be counted toward the number of incentives or concessions a project can receive under the Density Bonus Law.
  • This aligns incentives with non-labor-cost reductions and prohibits leveraging labor-standard concessions as part of the density bonus package.

2) Density Bonus Calculations and Incentives

  • The bill preserves the structure that a city or county must grant a density bonus and can provide incentives/concessions if a housing development includes a defined share of affordable units (lower income, very low income, moderate income, senior housing, student housing, etc.).
  • The existing framework outlines how density bonuses are calculated (percent bonuses tied to the share of affordable units) and how many incentives or concessions may be granted based on the level of affordability.
  • Labor standards could not be part of that calculation going forward.

3) Post-Entitlement Permits and Local Posting Requirements

  • Local agencies must post required information for postentitlement phase permits and provide examples of complete applications and permit sets.
  • By January 1, 2026 (existing law) and expanding to January 1, 2028 for certain updates, local agencies must post examples for junior accessory dwelling units and ministerially approved housing projects.
  • This is a state-mandated local program; the bill clarifies expanded posting duties, with a statewide implication on local processes.

4) Effective Dates and Fiscal Implications

  • Labor-standard exclusion from incentives/concessions takes effect upon enactment (as amended).
  • Expanded posting requirements for local agencies would take effect January 1, 2028.
  • The bill notes that it would impose a state-mandated local program and that no reimbursement is required for this act in a specified instance.

Who Is Affected

  • Developers seeking density bonuses and associated incentives/concessions for housing projects.
  • Local governments (cities and counties) implementing density bonus provisions and managing postentitlement permit processes.
  • Housing projects that incorporate a mix of affordable units (lower income, very low income, moderate income), senior housing, student housing, transitional foster youth, homeless persons, and other specified categories.
  • Local agencies responsible for posting postentitlement permit information and examples (with broader scope including JADUs and ministerially approved projects starting in 2028).

Procedural and Timeline Highlights

  • Postentitlement permit posting requirements:
    • Existing: lists and examples posted by certain dates.
    • SB 1383 would extend/expand posting requirements to include JADUs and ministerially approved projects by 2028.
  • Local programs: The act is designed to be liberal in favor of producing housing units but explicitly excludes labor-standard concessions from density bonus calculations.
  • Reimbursement: State would reimburse local agencies only as required by existing constitutional provisions; specific reimbursement under this act is addressed in the bill’s text.

Bottom-Line Impact

  • The main substantive impact is to prevent labor-standard concessions from counting as incentives or concessions for density bonus calculations, potentially reducing the number or type of concessions available for a given affordable-housing project.
  • It also increases local administrative duties around permit-posting requirements with a phased expansion, potentially increasing local compliance costs starting in 2028.

Compiled from official sources — confirm details with the bill’s official record.

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