California changes landmark environmental law over housing crisis
July 1, 2025
Housing shortage
Addressing the state’s housing shortage is essential as California faces rising rents and a significant portion of residents who are rent-burdened, according to data from the Harvard Joint Center for Housing Studies.
Environmental regulation
Changes to the California Environmental Quality Act reduce environmental review requirements for new housing projects, sparking concerns among environmental groups about the potential impact on biodiversity and community involvement, as noted by the California Native Plant Society.
Policy reform
Reforming a decades-old law is seen by state leaders as a necessary step for modernizing California’s approach to development and infrastructure, with Governor Newsom describing the move as the most consequential housing reform in modern state history.
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