California Housing and Labor Leaders Come Together with New Bill to Save California’s Dying Downtowns

• Annie Keys
• [email protected]

SAN DIEGO, CA - Assemblymember Matt Haney, joined by Mayor Todd Gloria (San Diego), labor leaders, and housing advocates, today announced Assembly Bill 2074 (AB 2074), the Downtown Revitalization Act - a proposal aimed at tackling two of California's most urgent crises at once: the housing shortage and struggling downtowns.

The bill represents a rare and significant partnership between housing advocates and construction labor groups, uniting behind a shared goal of rebuilding California's urban cores with both desperately needed homes and good-paying jobs.

"I've spoken to city leaders across California, and the message is clear: our downtowns are still struggling and need to be brought back to life," said Assemblymember Haney. "AB 2074 makes that happen by building dense housing where it's needed most while creating good-paying jobs."

California's downtown business districts remain in crisis following the COVID-19 pandemic. In some cities, office vacancy rates exceed 30%, leaving once-vibrant neighborhoods quiet and underutilized. At the same time, the state continues to face a severe housing shortage, even as many of the areas best suited for dense housing-downtowns near major transit-remain largely empty.

AB 2074 creates a clear, statewide pathway for high-rise housing and mixed-use development in these areas. The bill establishes state-defined downtown transit hub districts in California's largest cities, streamlines approvals for projects that meet strong labor standards, and provides early-stage financing through a state-backed revolving loan fund. Together, these reforms aim to lower the barriers that have stalled housing projects across the state.

"This is the kind of policy that big cities need right now," said Mayor Todd Gloria. "It makes it easier to build more affordable housing while directly supporting good-paying jobs. In San Diego, we've done the work to get housing built faster, and we're seeing the results. This bill takes the next step by turning underused spaces into homes near jobs and transit."

AB 2074 reflects a growing consensus that California can no longer treat housing production and job quality as competing priorities. By pairing expanded housing opportunities with strong labor standards, the bill seeks to revitalize downtowns, strengthen local economies, and create pathways to stable, well-paying construction careers.

"California's big cities need more homes," said Brian Hanlon, CEO of California YIMBY. "AB 2074 cuts through the red tape and lowers financing costs so big city downtowns can build the homes people need, near transit and jobs."

"These are complex projects that require a highly skilled workforce," said Chris Hannan, President of the State Building and Construction Trades Council of California. "AB 2074 ensures they are built to the highest standards-delivering quality housing and family-sustaining jobs."

As downtowns continue to evolve in the wake of remote and hybrid work, AB 2074 positions them not just as places of employment, but as thriving, livable neighborhoods, bringing people, activity, and investment back to the heart of California's cities.

AB 2074 has passed out of the Assembly Housing Committee and will be heard in the Assembly Local Government and Assembly Natural Resources Committees in the coming weeks.

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