(a)

1. (1) An adaptive reuse project that meets the requirements of subdivision (b) shall be deemed a use by right in all zones, regardless of the zoning of the site, and subject to the streamlined, ministerial review process described in Section 65658.8, except that both of the following conditions apply:

   1. (A) Any nonresidential uses of a proposed mixed-use adaptive reuse project shall be consistent with the land uses allowed by the zoning or a continuation of an existing zoning nonconforming use.
   2. (B) Any tourist hotel uses of a proposed adaptive reuse project shall be subject to the existing approval processes required by that local jurisdiction.
2. (2) Notwithstanding any other law, an adaptive reuse project shall not be permitted in industrial zones that do not permit residential uses.

(b) An adaptive reuse project shall comply with all of the following requirements:

1. (1) The adaptive reuse project and the site on which it is located shall satisfy both of the following:

   1. (A) It is a legal parcel or parcels located in a city if, and only if, the city boundaries include some portion of an urbanized area, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel or parcels wholly within the boundaries of an urbanized area, as designated by the United States Census Bureau.
   2. (B) At least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For the purposes of this section, parcels that are separated by a street, highway, or any other right-of-way shall be considered to be adjoined.

2. (2) The adaptive reuse project is proposed for any of the following, as applicable:

   1. (A) The project is proposed for an existing building or structure that is less than 50 years old.
   2. (B) The project is proposed for an existing building or structure that is listed on a local, state, or federal register of historic resources and the adaptive reuse project proponent complies with Section 65658.7.

   3. (C) The project is proposed for an existing building that is more than 50 years old and the local government has evaluated the site through a preliminary application or equivalent local process submitted pursuant to subdivision (a) of Section 65658.7 and either of the following is satisfied:

      1. (i) The local government determines that the building or structure is a historic resource and the adaptive reuse project proponent complies with Section 65658.7.
      2. (ii) The local government determines that the building or structure is not a historic resource.

3. (3) The adaptive reuse project meets the following affordability criteria, as applicable:

   1. (A)

      1. (i) An adaptive reuse project for rental housing shall include either of the following:

         1. (I) Eight percent of the units for very low income households and 5 percent of the units for extremely low income households.
         2. (II) Fifteen percent of the units for lower income households.
      2. (ii) The development proponent shall agree to, and the local government shall require, the continued affordability of all affordable rental units included pursuant to this subdivision through a recorded affordability restriction for a period of 55 years. Rents shall be set at an affordable rent, as defined in Section 50053 of the Health and Safety Code.

   2. (B)

      1. (i) An adaptive reuse project for owner-occupied housing shall comply with either of the following:

         1. (I) Thirty percent of the units shall be offered at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to moderate-income households.
         2. (II) Fifteen percent of the units shall be offered at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to lower income households.
      2. (ii) The development proponent shall agree to, and the local government shall require, the continued affordability of all affordable ownership units through a recorded affordability restriction for a period of 45 years.

   3. (C) If the local government has a local affordable housing requirement, the housing development project shall comply with all of the following:

      1. (i) The development project shall include the percentage of affordable units required by this section or the local requirement, whichever is higher.
      2. (ii) The development project shall meet the lowest income targeting required by either this section or the local requirement.

      3. (iii) If the local affordable housing requirement requires greater than 15 percent of the units to be dedicated for lower income households and does not require the inclusion of units affordable to very low and extremely low income households, then the rental housing development shall do both of the following:

         1. (I) Include 8 percent of the units for very low income households and 5 percent of the units for extremely low income households.
         2. (II) Fifteen percent of units affordable to lower income households shall be subtracted from the percentage of units required by the local policy at the highest required affordability level.
   4. (D) Affordable units in the development project shall have the same bedroom and bathroom count ratio as the market rate units, be equitably distributed within the project, and have the same type or quality of appliances, fixtures, and finishes.
4. (4) If the adaptive reuse project includes mixed uses, at least one-half of the square footage of the adaptive reuse project shall be dedicated to residential uses. For purposes of this subparagraph, square footage of the project does not include underground space, including basements or underground parking garages.

5. (5)

   1. (A) The local government shall, as a condition of approval of the development, require the development proponent to complete a Phase I environmental assessment.

   2. (B) If a recognized environmental condition is found, the development proponent shall undertake a preliminary endangerment assessment, as defined in Section 78095 of the Health and Safety Code, prepared by an environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity.

      1. (i)

         1. (I) If a release of a hazardous substance is found to exist on the site, before the local government issues a certificate of occupancy, the release shall be removed, or any significant effects of the release shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
         2. (II) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, before the local government issues a certificate of occupancy, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with current state and federal requirements.
      2. (ii) If the city or county, or city and county, does not issue certificates of occupancy, the final inspection of the adaptive reuse project shall serve as the certificate of occupancy for purposes of clause (i).

6. (6)

   1. (A) The adaptive reuse project complies with all objective planning standards found in an ordinance adopted pursuant to Section 65658.3.
   2. (B) A local government shall not impose any local development standard on any project that is an adaptive reuse project pursuant to this article that would require alteration of the existing building envelope, except if required by any applicable local building code, regardless of whether the local government has adopted an ordinance pursuant to Section 65658.3.
7. (7) The acreage of the project site is 20 acres or less.

(d)

1. (1) Parking shall not be required for the portion of a project consisting of a building subject to adaptive reuse that does not have existing onsite parking.
2. (2) This article shall not reduce, eliminate, or preclude the enforcement of any requirement imposed on a new multifamily residential or nonresidential development to provide bicycle parking, if feasible.
3. (3) This article shall not reduce, eliminate, or preclude the enforcement of any requirement imposed on a project that includes existing onsite parking to provide electric vehicle supply equipment, installed parking spaces, or parking spaces that are accessible to persons with disabilities that would have otherwise applied to the development if this section did not apply.

(f)

1. (1) A housing development proposed pursuant to this article shall be eligible for a density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios pursuant to Section 65915.
2. (2) For the purpose of calculating a density bonus for a project proposed pursuant to this article, the base density of an adaptive reuse project shall be the density proposed by the developer, including the portion of a project consisting of a building with a proposed change in use and any adjacent portion of the project, notwithstanding any general plan density limit as described in paragraph (6) of subdivision (o) of Section 65915.
3. (3) The affordability criteria described in paragraph (3) of subdivision (b) shall apply to the base density of the project, and shall not apply to any bonus units proposed pursuant to Section 65915.