New Housing Law Creates Streamlined Ministerial Approval Process for Townhomes
The Governor recently signed AB 1751, the Missing Middle Townhome Ownership Act, further demonstrating the State of California’s recent emphasis on addressing shortfalls in the “missing middle” housing market. This legislation, based on Senate Bill 1123, creates a streamlined, ministerial approval process (and thus, no CEQA or public hearings required) for qualifying “townhome projects” of up to 150 total units. It does not apply in the City and County of San Franciso, but its use outside of that limited exemption could help townhome projects get entitled more quickly. The new law takes effect on January 1, 2027.
General Eligibility Requirements
The Missing Middle Townhome Ownership Act defines “townhome” as a single-family dwelling that either (i) shares a common wall with other single-family dwellings or (ii) is separated from other single-family dwellings by no more than the minimum fire separation distance.
A “townhome project” means a housing development project consisting entirely of townhome units and meeting all the following requirements:
- Unit Size. 1,750 square feet or less of average “net habitable” square feet. The “net habitable” square feet is the fully enclosed, finished and heated floor area having a headroom of at least 6.5 feet. It excludes garages, carports, cellars, half-stories, and unfinished attics and basements.
- Height. No more than three stories.
- Unit Count. 150 total units or less.
- Density. At least 75% of the applicable Housing Element default density, sometimes referred to as the “Mullin Density.” For most urban areas, the default density is 30 units/acre, and thus, in those areas the minimum qualifying density would be 22.5 units/acres.
- Lot Size: The created lots must be 600 feet or greater.
- Affordability. If proposing 11 or more units, the greater of (i) 10% of the “total units” for lower income households, or (ii) local inclusionary housing requirements.
- Ownership Structure. The units are: (a) fee simple, (b) part of a common interest development, (c) limited equity housing cooperative, (d) constructed on land owned by a non-profit or community land trust, and units are sold to residents in a shared equity transaction, or (e) part of a tenancy in common.
In addition, AB 1751 requires a local agency to follow the tribal consultation procedures recently established under AB 130 (2025), which generally requires notification to tribes and consultation between the tribe and the local agency regarding the project.
Zoning and Objective Standards
To qualify for AB 1751, the zoning for the project’s property must either (a) allow multifamily dwellings or (b) allow single-family dwellings and be “underutilized,” which means having no permanent residential structure, unless it is abandoned and uninhabitable. The zoning for the property cannot have a minimum density greater than 50 units/acre. The site also cannot be identified in the jurisdiction’s housing element to accommodate lower income housing.
A qualifying project must comply with applicable objective general plan, zoning, subdivision, and design standards established by the local agency that would not physically preclude a townhome project. If the townhome project is proposed on a site that does not allow the proposed density, the agency may apply objective standards that would have applied if it were proposed on a site with a general plan or zoning district that allows the density and unit type proposed.
Site Criteria
Developers cannot use AB 1751 for any site where a housing development would be an allowed use as a transit-oriented housing development pursuant to SB 79 (2025). In addition, with limited exceptions, the site may not be located within or have any of the following:
- Very High Fire Hazard Severity Zone
- Prime farmland or farmland of statewide importance
- Wetlands
- Hazardous waste site on the Cortese List
- Delineated Earthquake Fault Zone
- Habitat for Protected Species
- Natural Community Conservation Plan area or Habitat Conservation Plan area
- Land under conservation easement
- Special Flood Hazard Area or Regulatory Floodway
- Historic or Contributing Resource
The project cannot require the demolition of certain specified types of housing (such as rent controlled housing). The site also may not have included five or more housing units within the five years preceding the application.
Public Improvements/Dedications
The ministerial process does not alleviate the need to provide public improvements, facilities, infrastructure, or rights-of-way, as necessary for the project to be “consistent” with the applicable General Plan. Moreover, while an agency cannot require the formation of an HOA (except as otherwise required by law), it can require “some mechanism” for maintenance of common space within the subdivision.
Timing of Sales, Lease, or Financing
Finally, the law generally emphasizes the construction of housing by prohibiting the sale, lease, or finance of any created parcels unless the parcel contains a residential structure, either as part of the project or an existing legally permitted residence, the parcel is reserved for internal circulation, open space, or common area, or is the only remaining parcel within the subdivision not developed with a residential structure. The local agency may allow the sale, lease, or financing of parcels prior to a developer constructing residences.
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If you are considering whether a project or a project site may qualify for streamlined ministerial approval under AB 1751, call the authors of this client alert or another member of our land use practice group.
