New California Law Supports Adaptive Reuse

In an analysis for The National Law Review, Brooke Miller outlines the potential impacts of California Assembly Bill 2243, which was signed into law by Governor Gavin Newsom last month.

The law expands the type of sites eligible for expedited approvals, adding regional mall properties of up to 100 acres that could help make larger multifamily developments with affordability requirements more financially feasible. The law also allows development within 500 feet of a freeway (previously prohibited), provided that the development takes steps to improve air quality.  

According to Miller, “AB 2243 also provides some relief from the strict minimum density requirements of AB 2011, instead designating the “allowable” density- but still requires projects to meet at least 50% of the allowable density (75% for sites within ½ mile of an existing rail or bus rapid transit station) through 2026; after January 1, 2027, 75% is the minimum.”

AB 2243 also addresses a provision that usually requires developers to add common open space to new residential development, recognizing that the physical limitations of a site can make meeting that requirement challenging. “For both conversion and redevelopment projects, AB 2243 also limits mitigation fees to the incremental impact of the development, in recognition that the existing use likely already contributed to mitigating some development impacts.”

AB 2243 adds more qualifying “surrounding urban uses” to free up more sites for housing development. “AB 2243 also takes aim at AB 2011’s exclusion for sites in a “neighborhood plan”, which can work against a project in an outdated community plan area or a jurisdiction with few areas outside such planning boundaries.”