Happy Tuesday, and welcome to the latest edition of Rent Free<\/em>. This week’s newsletter includes stories on:<\/p>\n

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• The triumphant, albeit technical, return of missing middle housing in Arlington, Virginia<\/li>\n
• New York’s Rent Guidelines Board allows a 3 percent rent increase.<\/li>\n
• It’s not just Zohran Mamdani. In New York, everyone’s a socialist on housing.<\/li>\n<\/ul>\n

  But first, this week’s lead story is on California’s latest effort to reform its development-killing environmental review law.<\/p>\n

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  California Enacts CEQA Reform as Part of Budget Bill<\/strong><\/h1>\n

  On Monday night, Gov. Gavin Newsom signed<\/a> into law budget legislation that exempts urban housing projects from the California Environmental Quality Act (CEQA), the state environmental review law that has become notorious for delaying new development.<\/p>\n

  Under Assembly Bill 130<\/a>, housing projects of fewer than 20 acres located in incorporated communities and unincorporated urban areas will generally no longer have to conduct environmental reviews required by the CEQA.<\/p>\n

  This wonky-sounding reform could amount to a major liberalization of housing construction, given just how burdensome CEQA’s procedural requirements can be.<\/p>\n

  “This is one of the biggest wins for housing in a generation,” said Brian Hanlon, CEO of California YIMBY, which sponsored some of the CEQA reforms that were rolled into the budget in an emailed statement.<\/p>\n

  At a press conference, Newsom hailed the housing provisions of the state budget as a win for the “abundance mindset” and a triumph of the YIMBY (“yes in my backyard”) movement dedicated to expanding housing production in the ultra-expensive Golden State.<\/p>\n

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  “To the NIMBY movement that's now being replaced by the YIMBY movement, go YIMBYs. Thank you for your abundant mindset.”<\/p>\n

  Newsom on signing infill housing bills tonight. pic.twitter.com\/OJjihgT3RV<\/a><\/p>\n

  — Paul E Williams (@PEWilliams_) July 1, 2025<\/a><\/p>\n<\/blockquote>\n