California Bill Speeds Housing Permits, Boosts Local Construction

AB 1997 aims to streamline approval process and spur more residential development.

Published on Feb. 20, 2026

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The California state legislature has passed AB 1997, a new law sponsored by Assemblymember Alex Lee (D-Milpitas) that is designed to speed up the housing permit approval process and spur more residential construction at the local level across the state.

Why it matters

With California facing an ongoing housing shortage and affordability crisis, this new law is intended to help accelerate the pace of new home and apartment building to meet demand, especially in urban areas where housing is most scarce.

The details

AB 1997 requires cities and counties to establish a streamlined, ministerial approval process for certain housing projects that meet specific affordability and zoning requirements. This is meant to reduce bureaucratic delays and make it easier for developers to get the green light to build.

  • The bill was signed into law by the governor on February 15, 2026.
  • The new permitting process goes into effect on July 1, 2026.

The players

Alex Lee

A Democratic Assemblymember representing California's 25th district, which includes Milpitas.

California State Legislature

The state's bicameral legislative body that passed AB 1997 and sent it to the governor for signature.

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What they’re saying

“This new law is a critical step toward addressing California's housing crisis by cutting red tape and making it easier to build the homes our communities desperately need.”

— Alex Lee, Assemblymember

“Streamlining the permit process will unlock more housing construction and help more Californians find affordable places to live.”

— Sarah Desmond, Executive Director, Housing California

What’s next

Cities and counties across California will now need to update their local housing policies and procedures to comply with the new state law by the July 1 effective date.

The takeaway

AB 1997 represents a significant legislative effort to spur more housing development in California by reducing bureaucratic barriers, which advocates hope will translate to more homes being built to address the state's severe affordability challenges.