On May 19, 2026, California’s Department of Housing and Community Development (“HCD”) issued a memorandum explaining how public agencies should implement a new CEQA exemption created by Senate Bill 131. The exemption allows local governments to rezone land to implement their HCD-approved housing elements without conducting full CEQA review. 

Key Takeaways

•  If a Housing Element has been approved by HCD, required rezonings qualify for a CEQA exemption.
• While the exemption is primarily intended for rezoning actions initiated by local governments, applicant-initiated rezonings could qualify for the exemption if the project is consistent with Housing Element’s program commitments. 
• Tribal consultation under AB 52 is not triggered by a rezoning that qualifies for the SB 131 exemption, although early engagement with California Native American tribes is strongly encouraged as a matter of best practice. 

Background

Every city and county in California must adopt a General Plan, and one component of that plan – the Housing Element – sets out how the jurisdiction will accommodate the share of new housing it must facilitate pursuant to State allocations. Local governments must update their Housing Element every five or eight years to comply with state law.¹ After a local government adopts its Housing Element, it generally must rezone land to implement the plan’s new commitments. Until recently, those rezonings were subject to full CEQA review, which can be time-consuming and costly. 

SB 131 (Chapter 24, Statutes of 2025) streamlined review by adding section 21080.085 to the Public Resources Code. Under it, there is a statutory exemption from CEQA for rezoning actions intended to implement qualifying Housing Elements approved by the HCD. More recently, HCD issued guidance on how agencies and other stakeholders should implement the exemption.

What the New Exemption Does

If a local government has received HCD’s approval of its Housing Element – meaning that HCD has determined it meets the requirements of Housing Element Law (Gov. Code, § 65580 et seq.)²  – the rezoning actions taken to implement the Housing Element now qualifies for CEQA exemption. 

This exemption covers changes to a zoning map, zoning code text, or both. Qualifying actions can cover redesignating parcels for residential use; allowing housing by right; increasing densities; modifying development standards like height restrictions and parking requirements; adding affordability requirements; incorporating residential performance standards in non-residential zones; and other refinements that implement housing element commitments. The exemption is not limited to RHNA-driven rezonings; it applies to rezonings that affirmatively further fair housing, reduce procedural barriers, or broaden housing types in single-family zones, as well as rezonings required to comply with No Net Loss Law.³ Prime agricultural land may qualify if it is included in the Housing Element’s schedule of actions. Similarly, sites within the Coastal Zone may also qualify, but local governments must still submit coastal rezonings to the California Coastal Commission for review and certification under the Coastal Act.

The exemption also covers related general plan amendments needed to maintain consistency with the rezoning. Examples include increasing allowable densities, changing the land use map, modifying or adding land use designations, and modifying or establishing land use policies. There is also flexibility on timing; the rezoning can occur after or at the same time as the general plan amendments.

While SB 131 does not require an Environmental Impact Report (“EIR”) for Housing Element adoption, preparing a Program EIR at that stage can facilitate future housing development by allowing projects to rely on that analysis and take advantage of other CEQA streamlining provisions. For example, streamlining provisions such as SB 226 and CEQA Guidelines section 15183 require an existing Program EIR or General Plan EIR. Early environmental review can also support future CEQA tiering, reducing duplicative review and streamlining subsequent actions and projects.

What the Expemtion Does Not Cover

The exemption does not apply to rezonings that would allow large distribution centers or oil and gas infrastructure. The exemption also does not apply to rezonings that would allow construction within areas defined as “natural and protected lands” under Public Resources Code section 21067.5. However, a split-zoning approach may allow the exemption to apply to the non-protected portion of the parcel.

Finally, while the exemption could cover Housing Element programs with general language (e.g., “explore” or “evaluate”), it applies only so long as the program also includes a commitment to a specific deliverable (such as adopting zoning changes) by a defined date. By contrast, a policy to implement a change after future study would not render that change eligible for a CEQA exemption. Context and background, as set forth in the Housing Element, will be critical in ascertaining whether an exemption does or does not apply.

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¹ Gov. Code, § 65588 

² An “approved” Housing Element includes one that has been reviewed and determined by HCD to either be in substantial compliance with Housing Element Law or meets the statutory requirements of Housing Element Law.

³Gov. Code, § 65863

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Isaiah Uson of Hanson Bridgett’s 2026 2L Summer Associate program, contributed to this article.