RCRC, along with other local government and planning stakeholders, supported Assembly Bill 2741 if amended. This bill, authored by Assemblymember Al Muratsuchi (D-Torrance), would have provided regulatory clarity for local governments following an October 2025 court decision, as well as time to correct housing element violations.
Specifically, AB 2741 would have provided clarity that units in residential overlay zones could be used to meet Regional Housing Needs Allocation (RHNA) obligations through the 6th housing element revision cycle and retroactively to January 1, 2019. It also would have given a local agency 275 days to bring its housing element into substantial compliance if a court finds an adopted housing element out of compliance.
In October 2025, a court ruled that the City of Redondo Beach’s housing element was not compliant with state law because the jurisdiction’s use of residential zoning overlays could not satisfy the city’s Regional Housing Needs Allocation (RHNA) obligations. Notably, these overlays were approved by the California Department of Housing and Community Development (HCD). As a result, the city was exposed to fines and other accountability measures, through no fault or ill will of the local government. Throughout the 6th RHNA cycle, HCD allowed hundreds of local governments to use residential overlay zones to meet their RHNA obligations and certified their housing elements.
RCRC supported AB 2741 because it would have provided temporary protection for previously certified housing elements after a court ruling invalidates an approved element, allowing local agencies time to correct violations before penalties are imposed. Additionally, the bill would have allowed the continued use of affordable housing overlays, subject to clear standards such as minimum density requirements, development standards, housing and affordability incentives, and specific mixed-use criteria. RCRC’s “Support if Amended” position reflected the stance that overlay zones should remain as a tool for local agencies to comply with RHNA obligations long term.
This bill passed the Assembly Housing and Community Development Committee on April 20, but failed passage in the Assembly Local Government Committee on April 28 following a robust discussion. However, this issue will continue to be a conversation moving forward. RCRC’s most recent letter can be found HERE.
For additional information, contact RCRC Senior Policy Advocate Tracy Rhine.