California Construction Law Updates 2025, Part 1

In 2024, California passed many new laws affecting various aspects of construction law. We’ll discuss these in a two-part series that provides a brief overview of the changes.

Building Entitlements, Standards, and Excavation Requirements

AB 2729 – Development Projects: Permits and Other Entitlements – This bill provides an 18-month extension to the expiration of state or local agency approvals, permits, or other entitlements for housing developments issued before January 1, 2024, and expiring before December 31, 2025. The bill also “tolls” (or suspends) this extension during any time the housing entitlement is the subject of a legal challenge.

SB 597 – Building Standards: Rainwater Catchment Systems – This bill requires the Department of Housing and Community Development to research and make recommendations on the installation of rainwater catchment systems for nonpotable uses in newly constructed residential dwellings. The department must report its findings to specified committees of the Legislature on or before January 1, 2027.

AB 98 – Warehouse design and build standards – Requires new building standards, starting January 1, 2026, for any proposed new or expanded logistics use (20% or more) developments, including for building design and location, parking, truck loading bays, landscaping buffers, entry gates, and signage. “Logistics use” applies to buildings “in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products.” Exact requirements depend on the size of the project, existing zoning, and the presence of “sensitive receptors” (residences, schools, daycare facilities, public parks, nursing homes, and hospitals). Further, cities and counties are prohibited from approving logistics use developments that do not meet or exceed the standards of the bill.

SB 778 – Amendment to the “Safe Dig Act” – SB 778 clarifies existing law governing excavations for subsurface installations. Among its provisions: Excavators are now required to immediately cease work if an excavation ticket expires and obtain a new ticket before resuming work. The bill also updates requirements surrounding response and reporting requirements when excavation-related damage has been discovered or caused in situations that may endanger life or cause serious bodily harm or damage to property and those that do not immediately threaten such harm.

SB 1432 – VETOED –Health Facilities: Seismic Standards – The Alfred E. Alquist Hospital Facilities Seismic Safety Act of 1983 increased seismic safety building standards for certain hospitals constructed on and after March 7, 1973, that were to be met by January 1, 2030. This bill would have extended the compliance deadline to January 1, 2038. However, the governor’s veto leaves the existing deadline in force.

Building Inspections

AB 2579 – Inspections: Exterior Elevated Elements – Prior to AB 2579, California law required the inspection of exterior elevated elements (including decks and balconies) and associated waterproofing elements for buildings with 3 or more multifamily units by January 1, 2025, and by January 1 every 6 years thereafter. This bill extended the deadline for an initial inspection until January 1, 2026, provided the property had been inspected within 3 years prior to January 1, 2019.

AB 2114 – Building Standards: Exterior Elevated Elements: Inspection – Section 5551 of the California Civil Code, which mandates the visual inspection of exterior elevated elements of common interest developments at least every 9 years, required such inspections to be conducted by a licensed structural engineer or architect. This bill additionally authorizes licensed civil engineers to conduct such inspections in compliance with Civil Code Section 5551.

Housing Development Fees and Exactions

AB 1820 – Housing Development Projects: Applications: Fees and Exactions – Local agencies are required to provide an estimate of preliminary fees and exactions within 30 business days of the submission of a preliminary application for a housing development project. Upon final project approval, local agencies are required to provide a good faith written estimate and itemized list of anticipated fees for housing development projects. However, these estimates are not legally binding on the agency.

AB 3012 – Development Fees: Fee Schedule Template: Fee Estimate Tool –Cities or counties that have a website are required to make a fee estimate tool that can be used to calculate an estimate of fees and exactions for a proposed housing development project publicly available on that website. Cities or counties with a population of 500,000 or more must meet this requirement on or before July 1, 2031; cities or counties of 500,000 or fewer must meet it by July 1, 2032. The bill also requires the Department of Housing and Community Development to create a fee schedule template that can be used by cities and counties as well as a list of best practices for presenting information regarding fees and exactions levied by local jurisdictions.

If you have questions about the possible impact of these new laws on your business, please contact the expert construction law attorneys at Ghassemian Law Group here. Look for Part 2, which will cover topics such as updates to contractor licensure and labor-related changes, coming soon.