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Step 1B:

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

Include a program in the housing element requiring rezoning within three years of the beginning of the planning period to allow residential use by right at specified densities (see Step 2) for housing developments in which at least 20 percent of the units are affordable to lower income households. This program can be an overlay on these specific sites. Please be aware that the intent of this requirement is to further incentivize the development of housing on sites that have been available over one or more planning periods. The application of the requirement should not be used to further constrain the development of housing. As such, housing developments that do not contain the requisite 20 percent would still be allowed to be developed according to the underlying (base) zoning but would not be eligible for “by right” processing. However, the jurisdiction would have to make findings on the approval of that project pursuant to No Net Loss Law (Government Code section 65863) and proceed to identify an alternative site or sites pursuant to that law.

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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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