Sacramento, CA – In a pivotal legislative action aimed at addressing California’s persistent housing crisis, the State Assembly on May 20th approved SB 10, officially titled the “California Affordable Housing Expansion Act of 2025.” The bill passed by a vote of 45-30, clearing its final legislative hurdle and sending the landmark legislation to Governor Gavin Newsom’s desk for consideration.
Passage in the Assembly followed prior approval by the State Senate, positioning SB 10 as one of the most significant housing production bills to reach the Governor in recent years. Proponents argue the measure is critical for accelerating the construction of badly needed affordable housing units across the state by tackling some of the root causes of California’s housing shortage: complex and time-consuming permitting processes and lack of adequate funding.
Key Provisions of SB 10
SB 10 proposes a multi-pronged approach to stimulate housing development, particularly targeting areas deemed suitable for increased density. A core component of the bill is the streamlining of permitting processes for qualifying affordable housing projects. While the specifics of which projects will qualify for expedited review are detailed within the bill’s extensive text, the overarching goal is to reduce bureaucratic delays that often add years and significant costs to development.
Beyond regulatory reform, the bill also includes a substantial financial commitment. SB 10 allocates $1.5 billion in state bonds specifically for affordable housing initiatives. This funding is intended to provide necessary capital to developers and local jurisdictions undertaking projects aligned with the bill’s objectives.
Furthermore, the legislation includes a mandatory inclusionary zoning requirement. Developments exceeding 50 units in designated transit and job centers would be required to set aside 20% of their units for low-income residents. This provision aims to ensure that the increased housing supply includes a significant component directly accessible to those most impacted by housing unaffordability.
Context: California’s Housing Imperative
California faces an acute housing crisis characterized by soaring costs, low vacancy rates, and insufficient housing production to keep pace with population and job growth. Economists and policymakers widely agree that a substantial increase in housing supply is necessary to stabilize prices and improve affordability. Legislative efforts like SB 10 represent attempts by state lawmakers to override local obstacles and create pathways for more development, particularly in urban and transit-rich areas.
Concerns and Opposition Mount
Despite its passage through both legislative chambers, SB 10 has encountered significant opposition, primarily from local government associations and some environmental advocacy groups. A central point of contention is the bill’s potential to override local zoning laws. Critics argue that the state-level streamlining and density provisions could undermine the authority of cities and counties to plan and regulate development within their jurisdictions, potentially leading to unintended consequences for community character and infrastructure.
Environmental advocates have voiced concerns regarding the bill’s potential impacts on the California Environmental Quality Act (CEQA). While the bill’s text details how it interacts with CEQA, opponents worry that expediting projects could weaken environmental review processes, leading to adverse effects on air quality, traffic, and local ecosystems. These groups advocate for robust environmental protections to be maintained even as the state pursues increased housing production.
Governor Newsom’s Stance and Veto Threat
The bill’s journey to the Governor’s desk does not guarantee its enactment. Governor Gavin Newsom has publicly expressed “significant reservations” regarding SB 10. His primary concerns, as stated, revolve around the bill’s proposed funding structure and its environmental provisions. While supportive of increasing housing supply, the Governor appears hesitant about the specifics of how SB 10 proposes to achieve this, particularly questioning the efficacy or appropriateness of the $1.5 billion bond allocation and the bill’s interface with environmental regulations.
The Governor’s reservations carry the weight of a potential veto. He has indicated that unless substantial amendments are considered before the final signature deadline, he may not sign the bill into law. This sets up a period of intense negotiation and lobbying as proponents of SB 10 and concerned parties attempt to influence the Governor’s final decision.
What’s Next: Decision Time for the Governor
With SB 10 now on Governor Newsom’s desk, the focus shifts to the executive branch. The Governor has a constitutionally mandated period to review the bill and decide whether to sign it, veto it, or allow it to become law without his signature. The coming weeks will be critical as stakeholders push for their desired outcome and the Governor weighs the bill’s potential benefits against his stated concerns regarding funding and environmental safeguards.
The outcome for SB 10, the “California Affordable Housing Expansion Act of 2025,” remains uncertain. Its passage through the legislature marks a significant step, reflecting a legislative will to address the housing crisis aggressively. However, the Governor’s expressed reservations and the potential for a veto highlight the deep divisions and complex trade-offs inherent in crafting solutions to one of California’s most pressing challenges.
