State Legislatures and Housing Reform: Summer 2025


As we enter the summer months, and with most legislatures in adjournment, our coverage of state legislatures will slow to quarterly updates.

Highlights:

  • Texas Governor Signs Reforms Post-Adjournment
  • California Tackles Environmental Review Reform
  • North Carolina Makes Progress on Parking
“Reasonable Solutions” Prevail in Texas

Texas Gov. Greg Abbott signed two key housing reform bills into law in June that go into effect on Sept. 1, 2025:

  • SB 15: Starter Homes and townhomes are an allowed use in residential zones.
  • SB 840: Multi-family housing is an allowed use in commercial zones.
California Tackles Environmental Review Reform, Other Bills Progress Forward

The biggest housing policy news in the past month comes from California, where lawmakers included an exception to CEQA (California Environmental Quality Act) for urban housing projects. AB 130, a budget bill, also included provisions on ADUs and fee limitations.

  • SB9: Clarifies a 2020 law to ban locally imposed ownership requirements all ADUs, not only those for new construction ADUs. (Passed Senate, In State Assembly Committee)
  • AB 253: Allows third-party building officials to handle permitting and inspections if a permit is not missed in 30 days. (Passed the House, awaiting Senate hearing)
North Carolina Makes Progress

Parking reform cleared the lower chamber in North Carolina: