AB 1021 Makes The Development of Workforce Housing Easier For School Districts, County Office of Education, and Community College Districts

Assembly Bill 1021, effective January 1, 2025, amends Government Code § 65914.7 and Education Code § 17391 to expand the authority of local educational agencies (“LEAs”)—including school districts, county offices of education, and community college districts—to develop, partner for, or lease land for educator and workforce housing on property they own.

Building upon the 2022 law AB 2295, this legislation makes such housing projects a “deemed allowable use” under local zoning and extends the streamlined environmental and procedural benefits through January 1, 2036.

II. Key Provisions

1. Deemed Allowable Use (Gov. Code § 65914.7): Housing on LEA-owned land that meets specified affordability and priority-occupancy requirements is automatically considered a “permitted use” under local zoning. No zoning amendment, conditional use permit, or variance is required.
   
2. Project Requirements
   • Minimum 10 units.
     
   • A majority of units must be deed-restricted for lower- or moderate-income households.
     
   • Occupancy must be offered in a particular sequence:
     
     1. Employees of the LEA (teachers, classified staff, etc.)
        
     2. Employees of other local public agencies
        
     3. General public (if vacancies remain)
        
   • Long-term affordability covenants (typically 55 years).
     
3. Procedural Streamlining:
   
   • CEQA exemptions for qualifying affordable housing projects apply.
     
   • Local height and density limits may be exceeded in designated transit or infill areas (up to 65 ft height).
     
4. Surplus-Property Committee Waiver (Ed. Code § 17391):
   
   • School Districts developing property for employee housing qualifying under AB 1021 may bypass the requirement to convene a School District Advisory Committee before disposition or lease.
     
5. Sunset Date:
   
   • The statutory authority for property being deemed an “allowable use” expires January 1, 2036.