Newsom Signs Six Bills to Cut Building Costs and Speed Smaller Homes
Governor Gavin Newsom has signed six housing bills sponsored by California YIMBY, completing the nonprofit's 2026 legislative agenda. The measures cut construction costs, streamline local approvals and expand homeownership options statewide, The MortgagePoint reported Oct. 9. The package touches infrastructure fees, subdivision approvals, smaller homes, downtown residential development and ADU restrictions.
SB 1116, by Sen. Anna Caballero, changes state housing law to reduce construction costs and speed development of smaller homes - townhomes and condominiums - expanding lower-cost starter-home options as alternatives to larger, more expensive detached houses. Caballero said in a statement she is proud to have authored the bill making it easier to build smaller houses, townhomes and condominiums that families can afford to own.
SB 1014, by Sen. Timothy Grayson, targets surprise infrastructure costs: cities must disclose infrastructure requirements - sidewalks, sewers and other public facilities - within 30 days of receiving a housing application, and cannot pile on new requirements after an application is submitted. "The cost of infrastructure like sidewalks and sewers is not mysterious, but many California cities treat it that way," said California YIMBY CEO Brian Hanlon.
AB 2074, by Asm. Matt Haney, facilitates high-rise residential and mixed-use development near regional transit hubs in California's largest cities, streamlining qualifying downtown projects where residents can reach jobs, transit and services. It also calls for studying state-backed financing, including loans, that could make high-rise residential development more financially feasible.
Two measures go after ADU costs. SB 1117, by Sen. Sabrina Cervantes, changes the impact fees local governments can impose on ADUs larger than 750 square feet, lowering the cost of building bigger backyard units. AB 956, by Asm. Sharon Quirk-Silva, lets homeowners construct up to two detached ADUs on a single-family residential lot. And SB 677, by Sen. Scott Wiener, protects previously approved housing projects from additional local delays tied to subdivision procedures and federal financing approvals - closing what Hanlon called common loopholes anti-housing activists use to block urgently needed homes.
For South Bay homeowners, AB 956 and SB 1117 are the most immediate: more legal paths to add one or two detached units on a single-family lot with less fee friction - rental income, housing for family, or property value. And for buyers shut out of single-family prices, the smaller-home push is aimed squarely at the missing product: affordable ownership townhomes and condos.
Source: The MortgagePoint - https://themortgagepoint.com/2026/10/09/newsom-signs-6-bills-to-reduce-construction-costs-expand-housing-options-in-california/
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