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Common Program Questions and Answers for Shortfall Zoning:

Housing Element Sites Inventory Guidebook (AB 1397) · 2026 edition · updated 2026-07-29 · California

Q: How do I establish the density range for a rezone site?

A: The density range is set at the minimum density (either 16 or 20 dwelling units per acre, depending on the jurisdiction). While there is no specific maximum density requirement, the range must include the density that was identified as appropriate to accommodate housing affordable to lower-income households (Part B, Step 2).

However, jurisdictions should not set the minimum and maximum density range at the same density (e.g., 20 units per acre minimum as both a minimum and maximum density). If identifying a narrow density range, the housing element must analyze the range as a potential governmental constraint on housing development, including potential impacts resulting from site constraints, financial considerations, and other development factors.

Q: If a development is proposed with less than 20 percent affordability to lower income, can the jurisdiction approve it?

A: Yes, however, the project would not qualify for the by right provisions of this law unless the underlining zone already permitted housing by right. This, and all housing development projects, is subject to the Housing Accountability Act. In addition, the jurisdiction may be subject to No Net Loss Law provisions.

Q: How is the 20 percent calculated when State Density Bonus Law is added?

A: This 20 percent calculation is based upon the total number of units in the development including additional units provided by a density bonus. This calculation methodology is consistent with several other pieces of housing laws, including the Streamlined Ministerial Approval Process (Government Code section 65913.4) and the Housing Accountability Act. End Questions and Answers

Site Inventory Guidebook

Page 38

May 2020

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Contents — Housing Element Sites Inventory Guidebook (AB 1397)
Housing Element Sites Inventory Guidebook (AB 1397)
  1. SUBJECT: Housing Element Site Inventory Guidebook Government C…
  2. Housing Element Site Inventory Requirements
  3. SITE INVENTORY GUIDEBOOK FRAMEWORK
  4. PART A: IDENTIFICATION OF SITES
  5. PART B: SITES TO ACCOMMODATE LOW AND VERY LOW- INCOME RHNA
  6. PART C: CAPACITY ANALYSIS
  7. PART D: NONVACANT SITES
  8. PART E: DETERMINATION OF ADEQUATE SITES
  9. Step 1: Identification of Developable Sites Government Code se…
  10. Government Code section 65583.2(b)
  11. Step 3: Infrastructure Availability Government Code section 65…
  12. Step 4: Map of Sites
  13. Step 5: Determination of Consistency with Affirmatively Furthe…
  14. Government Code section 65583.2(c)
  15. HCD Best Practices for selecting sites to accommodate the lowe…
  16. Step 7: Environmental Constraints
  17. NEXT STEP:
  18. Step 1: NEW Sites Used in Previous Planning Periods Housing El…
  19. Unusual Circumstances
  20. Step 1B:
  21. Definition of Use By Right (Government Code section 65583.2 (i))
  22. Sample Program:
  23. Government Code section 65583.2(c)(3)
  24. Housing Overlays
  25. Step 3: Size of Sites
  26. Definition of a Large Site
  27. Specific Plans, Master Plan, and other Subdivisions
  28. NEXT STEP:
  29. Step1: Utilizing minimum densities to calculate realistic capa…
  30. Government Code section 65583.2(c)(2)
  31. - Applicable land use controls and site improvement requirements
  32. Form Based Codes
  33. Typical densities of existing or approved residential developm…
  34. No Net Loss Law
  35. NEXT STEP:
  36. Definition of a Vacant Site
  37. Step 1: Description of the nonvacant site Government Code Sect…
  38. Government Code section 65583.2(g)(1)
  39. Existing Uses:
  40. Development Trends:
  41. Market Conditions:
  42. Availability of Regulatory and/or other Incentives:
  43. Step 3: NEW Reliance on nonvacant sites to accommodate more th…
  44. Step 4: NEW Program and policy requiring replacement of existi…
  45. Program X: Replacement Unit Program
  46. Funding: General Funds
  47. NEXT STEP:
  48. Government Code section 65583.1
  49. Impact of New Accessory Dwelling Unit Laws
  50. Step 2: Determine whether there is sufficient capacity to acco…
  51. Step 3: Adequate Sites Program
  52. General Program Requirements
  53. Timing
  54. Consequences for Failing to Complete Rezoning Deadline:
  55. Housing Accountability Act and the Housing Element
  56. Annexation
  57. Common Program Questions and Answers for Shortfall Zoning:
  58. ATTACHMENT 1: SUMMARY OF NEW LAWS REFERENCED IN THE GUIDEBOOK
  59. ATTACHMENT 2: GOVERNMENT CODE SECTION 65583.2

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