(July 23, 2009) Governor Arnold Schwarzenegger recently took action to facilitate the smooth recovery of the housing market by signing a California Chamber of Commerce-supported bill.

AB 333 (Fuentes; D-Sylmar), a CalChamber “job creator” bill, extends the life of active tentative subdivision maps and parcel maps for a period of two years. It is a sensible measure aimed at assisting new residential construction by ensuring that the necessary land entitlements are in place when California’s economy and housing market begins to rebound.

Amidst the recent economic turmoil, most previously approved and conditionally approved housing projects currently in process have come to a halt. AB 333 statutorily extends the expiration date of underlying tentative maps, thereby allowing such projects to be kept alive during the economic downturn.

With the nation facing its worst economic crisis since the Great Depression and with California’s unemployment rate reaching historic highs, it is vital that California enable the economic engine of new housing to thrive.

Although the Governor had publicly stated he would not sign any legislation until the budget deficit has been fixed in its entirety, he explained that there are a handful of bills that are urgent or necessary, including those that extend an imminent sunset date or have an impact on the state’s ability to secure federal funding.

Legislation adopted last year extended the life of active tentative subdivision maps and parcel maps for 12 months— to July 15. In his signature message, the Governor explained that because AB 333 is an important bill dealing with a pressing issue and an imminent sunset date of July 15, he signed the bill. The bill contains an urgency clause allowing the new law to take effect immediately.

Staff Contact: Robert Callahan