As California’s housing crisis continues to balloon, legislators are scrambling to identify its root causes and fashion fixes. One major challenge to the state’s housing fix is its existing fix for a different issue: environmental protection. The California Environmental Quality Act (CEQA) is one of the strongest state-level environmental statutes in the United States, and mandates that residential projects of a certain scale and potential impact undergo rigorous rounds of public review prior to approval. It also grants a private right of action against a project approval to any anonymous individual, and given the glacial pace of such litigation, the exercise of this right often informally functions as an injunction. Recognizing its defensive potential, prosperous communities have repurposed a law intended to preserve the environment into a weapon of exclusion that preserves property values and views by preventing the construction of new and affordable housing where most needed.

To counteract CEQA abuse in the housing domain, the California legislature has passed three bills that streamline environmental review for projects that reserve a certain portion of units for affordable housing: SB 35, SB 540, and AB 73. This Note examines each bill in turn and, after reviewing their requirements in light of inclusionary housing literature, ultimately argues that the streamlining efforts are unlikely to produce the effects hoped for due to their mismatched incentives and concessions. Finally, the Note concludes with several recommendations for improving future CEQA-based affordable housing initiatives in the Golden State.

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