The California Legislature ended its 2025 session over the weekend with a slew of new housing initiatives aimed at reducing costs and speeding up the process to build housing. The legislature passed a total of seven bills that now sit on Governor Newsom’s desk. He has until October 12 to sign or veto the bills.

**It’s important to remember that since development in the Lake Tahoe Basin is governed by the Tahoe Regional Planning Agency under a bi-state compact, state law sometimes doesn’t immediately apply or is modified within in the Tahoe Basin.  Here’s a breakdown of the legislation:

Speeding Up Housing Approvals

• AB 253 – The housing “shot clock” speeds up approvals by allowing home builders to hire a licensed third-party reviewer if local agencies can’t complete a permit review within 30 days.
• AB 1308 – Creates another “shot clock,” this time for inspections. Jurisdictions must complete final inspections within 10 days for new residential buildings or additions of 1–10 units.

Expanding Housing Opportunities

• AB 79 – Makes it faster and easier to build multifamily housing near transit stops, with requirements tied to the type of transit, its frequency, and the distance from housing to transit.
• AB 1061 – Extends the provisions of SB 9 (2021)—which allows for lot splits and duplexes in single-family neighborhoods—to historic districts if existing historic structures are not altered or demolished.

Supporting ADUs and JADUs

• SB 9 (2025) – Despite sharing the same number, this is different from SB 9 (2021). It reforms ADU ordinances by requiring local governments to bring them into compliance with state law and gives HCD the authority to void any local ordinances that create barriers to ADU construction.
• AB 1154 – Clarifies rules for Junior ADUs (under 500 sq. ft.) by creating a unified set of standards, resolving confusion from overlapping rules, and making approvals faster and easier.

Making Housing More Accessible

• AB 413 – Requires the Department of Housing and Community Development (HCD) to translate key state housing guidelines and handbooks into the non-English languages commonly spoken in California, so more homeowners and builders can understand their housing options.

Local Spotlight: Tahoe Basin

Closer to home, the Placer County Planning Commission recommended approval of the Tahoe Basin Area Plan Phase 2 Housing Amendments Their recommendation now moves to the Placer County Board of Supervisors, who will make a final vote on the Amendments later in 2025.

The Phase 2 Amendments apply to housing projects that are 100% deed-restricted and located within town centers in Kings Beach, Tahoe City and other areas zoned for multifamily housing and allow for greater flexibility related to building height, density and parking.

These new housing bills highlight the state’s ongoing efforts to address housing challenges by focusing on faster approvals, expanded opportunities, and clearer rules. Locally, we’re working closely with the Tahoe-Truckee Workforce Housing Agency, which has partnered with Sierra Business Council on state-level housing policy initiatives. You can track statewide legislation and get more in-depth analysis here.

This collaboration helps ensure our region’s housing needs are represented in Sacramento. We’ll also continue to share updates as these laws take shape and as local changes—such as the Tahoe Basin amendments—move forward. By staying informed, our community can better understand the evolving housing landscape and the opportunities ahead.