The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
CEQA exempts for its requirements actions taken by the Department of Housing and Community Development or the California
Housing Finance Agency to provide financial assistance or insurance for the development and construction of residential housing, as provided.
This bill would extend the above exemption to actions taken by a local agency not acting as the lead agency to provide financial assistance or insurance for the development and construction of residential housing, as provided.