Legislation Introduced to Protect Cities from Misuse of Builders Remedy and Accelerate Smart Housing Growth

SACRAMENTO, CA — SB 457, a bill designed to prevent the misuse of the Builder’s Remedy while ensuring that cities in San Mateo and Santa Clara counties are treated fairly as they work to meet the state’s housing goals. The bill closes loopholes that allow speculative developers to bypass zoning laws while still providing strong incentives for cities to adopt compliant Housing Elements on time.

“Cities across the Bay Area are working hard to meet their housing obligations, and they shouldn’t be punished because of bureaucratic delays,” said Senator Josh Becker (D-Menlo Park). “SB 457 ensures that cities that follow the rules can enforce their housing plans, while still holding noncompliant cities accountable.”

The Builder’s Remedy was originally intended as a penalty for cities that fail to meet their housing planning requirements, allowing developers to bypass local zoning restrictions. However, some developers have exploited loopholes to file placeholder applications, securing entitlements without serious plans to build.

Under current law, cities must wait for the California Department of Housing and Community Development (HCD) to approve their Housing Elements before they are officially considered compliant. This leaves cities vulnerable to Builder’s Remedy projects, even if they have already completed their housing plans.

SB 457 would accomplish the following:

  • Ensure that a Housing Element is considered compliant from the date a city adopts it, rather than when HCD completes its review;
  • Require developers to submit complete, serious applications—preventing speculative filings that block land from being used for real housing; and
  • Allow cities to enforce their local Housing Elements once they have been properly adopted.

Cities like San Jose, Redwood City, Palo Alto, and Mountain View are facing growing pressure to increase housing density while ensuring that new developments align with transportation, climate, and infrastructure plans. For instance, there are 22 builders remedy projects in Saratoga and 16 in Los Gatos alone. SB 457 allows cities to maintain thoughtful planning and protect against rushed, haphazard development.

“This bill is about fairness,” said Becker. “It ensures that cities that do the right thing aren’t penalized and that real, shovel-ready housing projects move forward—rather than letting bad-faith actors take advantage of legal gaps.”

SB 457 ensures that new development is integrated with public transit, climate goals, and essential infrastructure, preventing speculative projects from straining already overburdened local resources.

The bill also aligns with AB 1886 (Alvarez, 2024), ensuring that if a city fails to meet its housing obligations, it remains accountable—and that cities which follow the rules are protected from unnecessary penalties.

SB 457 is set to be heard in committee in the coming weeks.