SB 916
Civil actions: housing development projects.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
In Floor Process
Take action
Record your position on this measure.
Sign in to record your position, submit testimony, or contact your legislator.
Sign in to take action- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Bill overview
This bill amends California law to extend protections for developers of housing projects, including student housing, against lawsuits that could delay or prevent construction. Specifically, it allows developers to seek an undertaking from plaintiffs challenging these projects if the action is deemed frivolous or intended to delay the project. The court can limit or decline to require the undertaking if it would cause the plaintiff undue economic hardship, and developers are liable if they intentionally change their plans to avoid meeting low- or moderate-income housing requirements.
Key provisions
- Expands the application of cost-sharing undertakings to student housing projects.
- Allows developers to seek an undertaking if a lawsuit is deemed frivolous or intended to delay the project.
- Permits the court to limit or decline to require an undertaking if it would cause undue economic hardship to the plaintiff.
- Sets a maximum liability for plaintiffs at $500,000.
- Creates developer liability if they intentionally change plans to avoid meeting low- or moderate-income housing requirements.
- Defines ‘student housing project’ to include facilities owned by public universities.
- Requires motions for undertaking to be based on lack of merit and bad faith.
- Specifies that the undertaking is for costs and damages incurred by the defendant.
Who is affected
- Developers of housing projects (including student housing)
- Plaintiffs challenging housing development projects
Arguments in favor
Reasons to support this legislation.
No arguments in favor have been submitted.
Submit yoursArguments opposed
Reasons to oppose this legislation.
No arguments opposed have been submitted.
Submit yoursRead the latest version inline or switch to a previous version.
SB916:v97#DOCUMENT
Bill Start
| Amended IN Assembly June 17, 2026 |
| Amended IN Senate March 18, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 916
| Introduced by Senator Ashby |
| January 27, 2026 |
An act to amend Section 529.2 of the Code of Civil Procedure, relating to civil actions.
LEGISLATIVE COUNSEL'S DIGEST
SB 916, as amended, Ashby. Civil actions: housing development projects.
Existing law provides that in a civil action brought by a plaintiff to challenge a housing development project that meets or exceeds the requirements for low- or moderate-income housing, a defendant may seek an order requiring the plaintiff to furnish an undertaking as security for costs and damages that may be incurred by the defendant if the bringing of the action would result in preventing or delaying the project, as specified. Existing law authorizes the court to limit the amount of the undertaking or to decline to require the plaintiff to furnish an undertaking if the court determines that, based on evidence submitted by the plaintiff, furnishing an undertaking would cause the plaintiff to suffer undue economic hardship.
This bill would make these provisions applicable to a student housing development, as defined.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 529.2 of the Code of Civil Procedure is amended to read:
529.2.
(a) In all civil actions, including, but not limited to, actions brought pursuant to Section 21167 of the Public Resources Code, brought by any plaintiff to challenge a housing project which is a development project, as defined by Section 65928 of the Government Code, and which meets or exceeds the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, or which is a student housing project, a defendant may, if the bringing of the action or the seeking by the plaintiff of particular relief including, but not limited to, injunctions, has the effect of preventing or delaying the project from being carried out, apply to the court by noticed motion for an order requiring the plaintiff to furnish an undertaking as security for costs and any damages that may be incurred by the defendant by the conclusion of the action or proceeding as the result of a delay in carrying out the development project. The motion shall be made on the grounds that the action is without merit and that the action was brought in bad faith, vexatiously, for the purpose of delay, or to thwart the student housing or low- or moderate-income nature of the housing development project.
(b) In responding to a motion for undertaking, the plaintiff may seek to limit the amount of the undertaking by presenting admissible evidence that filing an undertaking will cause it, and in cases where the plaintiff is an unincorporated association, its members, to suffer undue economic hardship. If the court, after hearing, determines that the grounds for the motion have been established, the court shall order that the plaintiff file the undertaking in an amount specified in the court’s order, taking into consideration any admitted evidence of plaintiff’s economic hardship and avoiding causing the plaintiff to suffer undue economic hardship, as security for costs and damages of the defendant. The liability of the plaintiff pursuant to this section for the costs and damages of the defendant shall not exceed five hundred thousand dollars ($500,000). If the court concludes, based on all of the admissible evidence presented, that a bond in any amount would cause the plaintiff undue economic hardship, the court is authorized in its discretion to decline to impose a bond.
(c) If at any time after the plaintiff has filed an undertaking the housing development plan is changed by the developer in bad faith so that it fails to meet or exceed the requirements for low- or moderate-income housing as set forth in Section 65915 of the Government Code, the developer shall be liable to the plaintiff for the cost of obtaining the undertaking.
(d) For purposes of this section, “student housing project” means one or more housing facilities to be occupied by students of one or more campuses and owned by a public university, including dining, academic, and student support service spaces, and other necessary and usual attendant and related facilities and equipment.