United States: Real Estate and Construction

California's new Missing Middle Townhome Ownership Act (AB 1751) establishes a streamlined ministerial approval process for townhome developments of up to 150 units, bypassing traditional CEQA review and public hearings. The legislation targets the "missing middle" housing market with specific requirements for unit size, density, affordability, and site criteria. Effective January 2027, this law could significantly accelerate townhome project entitlements throughout California, excluding San Francisco.

California's Senate Bill 1153 has been signed into law, providing significant protection for public water systems against wildfire-related inverse condemnation claims. The legislation clarifies that water suppliers have no duty to design or maintain systems for wildfire suppression and that inability to maintain water supply during wildfires is not a substantial cause of wildfire damages. This landmark legislation may reshape liability exposure and insurance costs for water providers across the state.

A California appellate court ruled that homeowners who built an unpermitted retaining wall encroaching on their neighbor's property cannot claim a prescriptive easement because the structure constitutes an abatable public nuisance. The decision reinforces that courts will not allow property rights to arise from code violations and unpermitted construction, even when maintained openly for years.