One strategy to lower the cost of housing is to facilitate the construction of “missing-middle” housing that legalizes more homes in existing neighborhoods without significant upzoning, or requirements for increased building heights.

AB 725 makes it easier for cities to allow medium-density housing by helping local governments, especially those in high-cost coastal areas, plan for more inclusive, multigenerational neighborhoods that accommodate various income levels. Specifically, under AB 725, local governments are required to plan for:

• At least 25% of moderate income housing to be located in areas zoned for at least four units of housing per parcel, but not more than 100 units per acre.
• At least 25% of above-moderate income homes to be located in areas zoned for at least four units of housing per parcel.

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