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CEQA Reform: Will Big Changes to Landmark California Environmental Law Lower Housing Prices?

SONOMA COUNTY, CALIFORNIA, JUL 6 – The rollback exempts many residential projects from environmental review and freezes building codes, aiming to ease housing shortages amid rising costs and homelessness, officials said.

  • On June 30, Governor Gavin Newsom and California lawmakers approved AB 130, significantly expanding CEQA exemptions to accelerate infill housing development, taking effect immediately.
  • Senate Bill 34, which limits the South Coast Air Quality Management District, prompted CEQA reforms to accelerate housing development amid concerns over bureaucratic delays, not directly driven by affordability or homelessness.
  • County figures show Sonoma County has met 26% of its 3,183-unit obligation as of May, while Santa Rosa has permitted about half of its 4,685-unit goal.
  • California's CEQA reforms have raised questions about large developments on former county land and the Sonoma Developmental Center campus, amid local neighborhood opposition.
  • California’s housing mandate of over 14,500 units by 2031 may benefit from CEQA reforms, potentially boosting long-term investment and increasing housing supply.
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The Press Democrat broke the news in Sonoma, United States on Saturday, July 5, 2025.
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