New CA housing laws tear down development red tape

Recently-signed legislation makes building starter homes and ADUs cheaper and faster in California.

1 minute read

October 8, 2026, 8:00 AM PDT

By Zachary Whalen


Cars driving into a residential neighborhood in San Fransisco.

One bill signed by California Gov. Gavin Newsom creates a 60-day approval process for townhomes and condominiums. | Sundry Photography

California Gov. Gavin Newsom signed multiple housing bills last week “promising myriad reforms to reduce red tape, incentivize construction and boost housing affordability,” Ryan Kushner writes for Smart Cities Dive. The bills may diversify California’s housing portfolio: they make building ADUs cheaper and approving townhome developments faster. 

The recently-signed California’s Missing Middle Townhome Act “establishes by-right approval for townhome development projects of up to 150 units and authorizes local governments to set up a fast-track 60-day ministerial approval timeline for qualifying projects,” Smart Cities Dive reports. Another bill creates a 60-day approval process for townhomes and condominiums.

New legislation will also eliminate an impact fee for ADUs larger than 750 square feet, replacing it with a marginal fee that will direct local governments to charge “proportionally for the square footage above 750 square feet, rather than per each square foot, for the first two ADUs built on a property,” Kushner writes. 

Wednesday, October 7, 2026 in Smart Cities Dive

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