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ARTICLE · 07 OCTOBER 2026

California Enacts AB 1751: Streamlined Path For Missing Middle Townhome Development

Holland & Knight
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California's new Missing Middle Townhome Ownership Act establishes a groundbreaking ministerial approval pathway for townhome developments of up to 150 units, eliminating CEQA review and discretionary hearings. The legislation creates unprecedented opportunities for attainable homeownership by streamlining entitlements, reducing construction timelines, and enabling flexible ownership structures including fee-simple lots, cooperatives, and community land trusts. With the potential to unlock thousands of parc

United StatesReal Estate and Construction
Jennifer Hernandez
Jennifer Hernandez
Ryan Michael Leaderman
Ryan Michael Leaderman
Deborah Brundy
Deborah Brundy
Nathaniel R.F. Bernstein
Nathaniel R.F. Bernstein
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Highlights

  • California Gov. Gavin Newsom signed Assembly Bill (AB) 1751 – the Missing Middle Townhome Ownership Act – into law on September 29, 2026, as part of a broader housing and homelessness legislation package.
  • The legislation – which takes effect January 1, 2027 – establishes a ministerial, by-right approval pathway for townhome developments of up to 150 units, eliminates California Environmental Quality Act review and creates new opportunities for attainable homeownership across California.
  • AB 1751 may prove to be one of California's most consequential housing streamlining laws, with the potential to unlock development on thousands of parcels across the state and meaningfully expand the supply of attainable, for-sale housing.

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