Housing Accountability Act: housing development projects.

Senator Durazo's amendment to California's Housing Accountability Act introduces new restrictions on mixed-use developments, prohibiting portions of qualifying residential projects from being designated as hotels, motels, or other transient lodging facilities. The measure applies to developments where at least two-thirds of the new or converted square footage is designated for residential use, though it permits residential hotels as defined in state health and safety codes.

The legislation's provisions apply retroactively to any project applications not deemed complete by local agencies as of January 1, 2025, including those with preliminary applications submitted before that date. This retroactive application ensures consistent standards across pending development proposals while maintaining existing protections for residential hotels that serve as permanent housing.

The amendment reflects ongoing legislative efforts to preserve residential space for permanent housing amid California's housing crisis, particularly in mixed-use developments that could otherwise convert portions of residential square footage to transient lodging uses. By explicitly restricting these conversions, the measure aims to maintain residential capacity in new development projects while still allowing flexibility for residential hotels that function as permanent housing options.