AB 317 – CEQA Exemption for Starter Homes
A new path to affordability for first-time buyers
AB 317 removes one of the biggest barriers to building affordable, entry-level homes in California: costly, time-consuming environmental review under CEQA. It creates a specific exemption for one-bedroom homes under 1,500 square feet and priced below $400,000, as long as they’re sold to first-time homebuyers.
In addition, the bill delays property tax reassessment until the home is sold, lowering initial ownership costs and supporting long-term affordability.
This is one of the first pieces of legislation in years that directly targets the missing "starter home"—something nearly every housing market in California desperately lacks.
What This Means for You
If you're thinking about:
Building a small home for sale to a first-time buyer,
Creating a small-scale infill development that promotes affordability,
Or helping a family member or community member purchase their first home,
AB 317 could be the key to getting your project off the ground—faster and more affordably.
Key Benefits:
No CEQA review for qualifying homes = faster permitting,
Lower up-front costs and reduced risk,
Ongoing tax relief for buyers, making homeownership more accessible,
Encourages scaled-down, smart development that fits into existing neighborhoods.
However, to qualify, you’ll need to meet strict requirements related to size, price, and buyer eligibility. That’s where a knowledgeable team is essential.
How New Avenue Homes Can Help
At New Avenue, we specialize in designing and building right-sized homes that meet real needs—and AB 317 aligns perfectly with the kinds of projects we’ve delivered across California.
Here’s how we help you take advantage of AB 317:
Feasibility review: We’ll help you determine whether your lot, budget, and goals are a fit for the CEQA exemption.
Smart design: We design homes that stay under 1,500 square feet without sacrificing beauty, function, or comfort.
Full-service project delivery: From navigating price requirements to overseeing construction, we’ll guide you through every step to ensure your project qualifies and succeeds.
Whether you’re a property owner with extra land, a small builder, or a mission-driven nonprofit, we’re here to help you create true starter homes that real people can afford.
Let’s Bring Back the Starter Home—Together
Schedule your free consultation today to learn how AB 317 can help you build your home faster and smarter—and how New Avenue can help you make it happen.
