Governor signs bill to boost affordable housing in coastal California

CALIFORNIA — Governor Gavin Newsom has signed Senate Bill 484, a new law aimed at expanding affordable housing opportunities in California’s coastal cities while preserving environmental protections.

The law creates a 10-year pilot program to streamline approvals for 100% affordable housing projects in coastal zones, but only infill areas (already developed land) rather than expanding into environmentally sensitive zones.

“California does not have to choose between affordable housing and protecting our coastal resources. We can and must do both,” bill author Senator John Laird said.

Mid-tier home payments over $5,900 a month in California

According to a Legislative Analyst’s Office report, payments for a mid-tier home were over $5,900 a month in June 2025—an 82% increase since January 2020. Payments for a bottom-tier home were over $3,600 per month.

Annual household income needed to qualify for a mortgage on a mid-tier California home in June 2025 was about $237,000—more 2 times the median California household income in 2023 ($96,500).

“California’s coastal communities generate around 80% of the state’s economic output and wages, yet housing costs in coastal cities are often a prohibitive barrier to low-income renters and people of color,” said Housing California executive director Chione Lucina Muñoz Flegal.

The bill passed the Legislature with bipartisan support and no registered opposition.

Coastal Commission will designate 3 coastal areas

By July 1, 2027, the California Coastal Commission must work with state housing officials to designate infill areas in at least three coastal jurisdictions eligible for permit streamlining.

Until June 30, 2037, qualifying infill housing projects made up entirely of deed-restricted units for very low-, low-, or moderate-income residents would be categorically excluded from coastal permit requirements.

Developers must first request and obtain a notice of exclusion from the Coastal Commission before construction.