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Market Conditions:

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

Housing market conditions also play a vital role in determining the feasibility or realistic potential of nonvacant sites for residential development. The nonvacant sites analysis should include an evaluation of the impact of local market conditions on redevelopment or reuse strategies. For example, high land and construction costs, combined with a limited supply of available and developable land, may indicate conditions “ripe” for more intensive, compact and infill development or redevelopment and reuse.

Site Inventory Guidebook

Page 25

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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